Document:

<PAGE>

                                                                     Exhibit 4.1

                                                                  EXECUTION COPY

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

                        ASSET BACKED FUNDING CORPORATION,
                                    DEPOSITOR

                             WELLS FARGO BANK, N.A.,
                                    SERVICER

                             WELLS FARGO BANK, N.A.,
                            SECURITIES ADMINISTRATOR

                                       AND

                      DEUTSCHE BANK NATIONAL TRUST COMPANY,
                                     TRUSTEE

                         POOLING AND SERVICING AGREEMENT

                            DATED AS OF APRIL 1, 2005

                               ABFC 2005-WF1 TRUST

                 ABFC ASSET-BACKED CERTIFICATES, SERIES 2005-WF1

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               Page
                                                                                                               ----

<S>                     <C>                                                                                      <C>
ARTICLE I DEFINITIONS                                                                                              5

Section 1.01            Defined Terms.                                                                             5
Section 1.02            Accounting.                                                                               62
Section 1.03            Rights of the NIMS Insurer.                                                               62

ARTICLE II CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES                                        62

Section 2.01            Conveyance of Mortgage Loans.                                                             62
Section 2.02            Acceptance by Trustee.                                                                    65
Section 2.03            Repurchase or Substitution of Mortgage Loans by the Originator or the Seller.             66
Section 2.04            Execution of Yield Maintenance Agreements.                                                70
Section 2.05            Representations, Warranties and Covenants of the Servicer.                                70
Section 2.06            Representations and Warranties of the Depositor.                                          73
Section 2.07            Issuance of Certificates and the Uncertificated Regular Interests.                        74

ARTICLE III ADMINISTRATION AND SERVICING OF THE TRUST FUND                                                        75

Section 3.01            Servicer to Act as Servicer.                                                              75
Section 3.02            Collection of Mortgage Loan Payments.                                                     77
Section 3.03            Realization Upon Defaulted Mortgage Loans.                                                77
Section 3.04            Collection Accounts, Distribution Account and Reserve Accounts.                           78
Section 3.05            Permitted Withdrawals From the Collection Accounts.                                       83
Section 3.06            Establishment of Escrow Accounts; Deposits in Escrow Accounts.                            84
Section 3.07            Permitted Withdrawals From Escrow Account.                                                85
Section 3.08            Payment of Taxes, Insurance and Other Charges; Collections Thereunder.                    85
Section 3.09            Transfer of Accounts.                                                                     86
Section 3.10            Maintenance of Hazard Insurance.                                                          86
Section 3.11            Maintenance of Mortgage Impairment Insurance Policy.                                      87
Section 3.12            Fidelity Bond, Errors and Omissions Insurance.                                            87
Section 3.13            Title, Management and Disposition of REO Property.                                        88
Section 3.14            Due-on-Sale Clauses; Assumption and Substitution Agreements.                              90
Section 3.15            Notification of Adjustments.                                                              91
Section 3.16            Optional Purchases of Mortgage Loans by Servicer.                                         91
Section 3.17            Trustee to Cooperate; Release of Files.                                                   92
Section 3.18            Servicing Compensation.                                                                   93
Section 3.19            Annual Statement as to Compliance.                                                        94
Section 3.20            Annual Independent Certified Public Accountants' Reports.                                 94
Section 3.21            Access to Certain Documentation and Information Regarding the Mortgage Loans.             95
</TABLE>

                                      -i-

<PAGE>

<TABLE>
<S>                     <C>                                                                                      <C>
Section 3.22            Duties of Credit Risk Manager.                                                            95
Section 3.23            Obligations of the Servicer in Respect of Compensating Interest.                          95
Section 3.24            Obligations of the Servicer in Respect of Mortgage Interest Rates and Monthly Payments.   96
Section 3.25            Investment of Funds in the Collection Accounts and the Distribution Account.              96
Section 3.26            Liability of Servicer; Indemnification.                                                   97
Section 3.27            Reports of Foreclosure and Abandonment of Mortgaged Properties.                           98
Section 3.28            Protection of Assets.                                                                     98
Section 3.29            Limitation of Liability of the Credit Risk Manager.                                       98
Section 3.30            No Personal Solicitation.                                                                 99
Section 3.31            Periodic Filings.                                                                         99
Section 3.32            Credit Reporting; Gramm-Leach-Bliley Act.                                                101
Section 3.33            Maintenance of LPMI Policies; Claims.                                                    102

ARTICLE IV FLOW OF FUNDS                                                                                         102

Section 4.01            Interest Distributions.                                                                  102
Section 4.02            Distributions of Principal and Monthly Excess Cashflow Amounts.                          105
Section 4.03            Allocation of Losses.                                                                    112
Section 4.04            Method of Distribution.                                                                  112
Section 4.05            Distributions on Book-Entry Certificates.                                                113
Section 4.06            Statements.                                                                              113
Section 4.07            Remittance Reports; Advances.                                                            116
Section 4.08            REMIC Distributions and Allocation of Losses.                                            117

ARTICLE V THE CERTIFICATES                                                                                       122

Section 5.01            The Certificates.                                                                        122
Section 5.02            Registration of Transfer and Exchange of Certificates.                                   123
Section 5.03            Mutilated, Destroyed, Lost or Stolen Certificates.                                       128
Section 5.04            Persons Deemed Owners.                                                                   128
Section 5.05            Appointment of Paying Agent.                                                             128

ARTICLE VI THE SERVICER AND THE DEPOSITOR                                                                        129

Section 6.01            Liability of the Servicer and the Depositor.                                             129
Section 6.02            Merger or Consolidation of, or Assumption of the Obligations of, the Servicer or the
                          Depositor.                                                                             129
Section 6.03            Limitation on Liability of the Servicer and Others.                                      129
Section 6.04            Servicer Not to Resign.                                                                  130
Section 6.05            Delegation of Duties.                                                                    131

ARTICLE VII DEFAULT                                                                                              131

Section 7.01            Servicer Events of Termination.                                                          131
Section 7.02            Trustee to Act; Appointment of Successor.                                                133
Section 7.03            Waiver of Defaults.                                                                      134
</TABLE>

                                      -ii-

<PAGE>

<TABLE>
<S>                     <C>                                                                                      <C>
Section 7.04            Notification to Certificateholders.                                                       134
Section 7.05            Survivability of Servicer Liabilities.                                                    135

ARTICLE VIII THE TRUSTEE                                                                                          135

Section 8.01            Duties of Trustee and the Securities Administrator.                                       135
Section 8.02            Certain Matters Affecting the Trustee and the Securities Administrator.                   137
Section 8.03            Neither the Trustee nor the Securities Administrator Liable for Certificates
                          or Mortgage Loans.                                                                      138
Section 8.04            Trustee and Securities Administrator May Own Certificates.                                139
Section 8.05            Trustee's and Securities Administrator's Fees and Expenses.                               139
Section 8.06            Eligibility Requirements for Trustee and the Securities Administrator.                    140
Section 8.07            Resignation or Removal of Trustee and the Securities Administrator.                       141
Section 8.08            Successor Trustee or Securities Administrator.                                            142
Section 8.09            Merger or Consolidation of Trustee or Securities Administrator.                           142
Section 8.10            Appointment of Co-Trustee or Separate Trustee.                                            142
Section 8.11            Limitation of Liability.                                                                  144
Section 8.12            Trustee or Securities Administrator May Enforce Claims Without Possession of
                          Certificates.                                                                           144
Section 8.13            Suits for Enforcement.                                                                    145
Section 8.14            Waiver of Bond Requirement.                                                               145
Section 8.15            Waiver of Inventory, Accounting and Appraisal Requirement.                                145
Section 8.16            Appointment of Custodian.                                                                 145

ARTICLE IX REMIC AND GRANTOR TRUST ADMINISTRATION                                                                 146

Section 9.01            REMIC Administration.                                                                     146
Section 9.02            Prohibited Transactions and Activities.                                                   148
Section 9.03            Indemnification with Respect to Certain Taxes and Loss of REMIC Status.                   148
Section 9.04            REO Property.                                                                             149
Section 9.05            Grantor Trust Administration.                                                             150

ARTICLE X TERMINATION                                                                                             150

Section 10.01           Termination.                                                                              150
Section 10.02           Additional Termination Requirements.                                                      152

ARTICLE XI MISCELLANEOUS PROVISIONS                                                                               153

Section 11.01           Amendment.                                                                                153
Section 11.02           Recordation of Agreement; Counterparts.                                                   154
Section 11.03           Limitation on Rights of Certificateholders.                                               154
Section 11.04           Governing Law; Jurisdiction.                                                              155
Section 11.05           Notices.                                                                                  155
Section 11.06           Severability of Provisions.                                                               156
Section 11.07           Article and Section References.                                                           156
</TABLE>

                                     -iii-

<PAGE>

<TABLE>
<S>                     <C>                                                                                      <C>
Section 11.08           Notice to the Rating Agencies and the NIMS Insurer.                                       156
Section 11.09           Further Assurances.                                                                       157
Section 11.10           Third Party Beneficiary.                                                                  158
Section 11.11           Acts of Certificateholders.                                                               158
                                    EXHIBITS:
Exhibit A-1                Form of Class A-1 Certificate
Exhibit A-2                Form of Class A-2A Certificate
Exhibit A-3                Form of Class A-2B Certificate
Exhibit A-4                Form of Class A-2C Certificate
Exhibit B-1                Form of Class M-1 Certificate
Exhibit B-2                Form of Class M-2 Certificate
Exhibit B-3                Form of Class M-3 Certificate
Exhibit B-4                Form of Class M-4 Certificate
Exhibit B-5                Form of Class M-5 Certificate
Exhibit B-6                Form of Class M-6 Certificate
Exhibit B-7                Form of Class M-7 Certificate
Exhibit B-8                Form of Class M-8 Certificate
Exhibit B-9                Form of Class M-9 Certificate
Exhibit B-10               Form of Class M-10 Certificate
Exhibit B-11               Form of Class B-1 Certificate
Exhibit B-12               Form of Class B-2 Certificate
Exhibit B-13               Form of Class B-3 Certificate
Exhibit C-1                Form of Class CE Certificate
Exhibit C-2                Form of Class P Certificate
Exhibit C-3                Form of Class R Certificate
Exhibit D-1                Group 1 Mortgage Loan Schedule
Exhibit D-2                Group 2 Mortgage Loan Schedule
Exhibit E                  Form of Request for Release of Documents
Exhibit F-1                Form of Custodian's Initial Certification
Exhibit F-2                Form of Custodian's Final Certification
Exhibit F-3                Form of Receipt of Mortgage Note
Exhibit G                  Mortgage Loan Purchase Agreement
Exhibit H                  Form of Lost Note Affidavit
Exhibit I                  Form of ERISA Representation
Exhibit J                  Form of Investment Letter
Exhibit K                  Form of Class R Certificate Transfer Affidavit
Exhibit L                  Form of Transferor Certificate
Exhibit M                  Monthly Information Delivered by Servicer
Exhibit N-1                Form of Yield Maintenance Agreement relating to the Class A-1
                             Certificates
Exhibit N-2                Form of Yield Maintenance Agreement relating to the
                             Class A-2A, Class A-2B and Class A-2C Certificates
Exhibit N-3                Form of Yield Maintenance Agreement relating to the Class M and
                             Class B Certificates
Exhibit O                  Form of Certification
Exhibit P-1                Form of Certification to be Provided by the Securities Administrator to the
                             Depositor
Exhibit P-2                Form of Certification to be Provided by the Servicer to the Depositor

Schedule I                 Wells Fargo Prepayment Charge Matrix
</TABLE>

                                      -iv-

<PAGE>

                  ASSET BACKED FUNDING CORPORATION, as depositor (the
"Depositor"), WELLS FARGO BANK, N.A., as servicer (the "Servicer"), WELLS FARGO
BANK, N.A., as securities administrator (the "Securities Administrator") and
DEUTSCHE BANK NATIONAL TRUST COMPANY, as trustee (the "Trustee"), are entering
into this Pooling and Servicing Agreement, dated as of April 1, 2005 (the
"Agreement").

                              PRELIMINARY STATEMENT

                  The Depositor intends to sell pass-through certificates
(collectively, the "Certificates"), to be issued hereunder in multiple Classes,
which in the aggregate will evidence the entire beneficial ownership interest in
the Trust Fund created hereunder. The Certificates will consist of twenty
Classes of Certificates, designated as (i) the Class A-1, Class A-2A, Class A-2B
and Class A-2C Certificates, (ii) the Class M-1, Class M-2, Class M-3, Class
M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9 and Class M-10
Certificates, (iii) the Class B-1, Class B-2 and Class B-3 Certificates, (iv)
the Class CE Certificates, (v) the Class P Certificates and (vi) the Class R
Certificate.

                                     REMIC 1

                  As provided herein, the Securities Administrator will make an
election to treat the segregated pool of assets consisting of the Mortgage Loans
and certain other related assets subject to this Agreement (but exclusive of the
Yield Maintenance Agreements, the Reserve Accounts, the Cap Carryover Amounts
and the Servicer Prepayment Charge Payment Amounts) as a real estate investment
conduit (a "REMIC") for federal income tax purposes, and such segregated pool of
assets will be designated as "REMIC 1." The Class R-1 Interest will represent
the sole class of "residual interests" in REMIC 1 for purposes of the REMIC
Provisions. The following table irrevocably sets forth the designation, the
Uncertificated REMIC 1 Pass-Through Rate, the initial Uncertificated Principal
Balance, and solely for purposes of satisfying Treasury Regulations Section
1.860G-1(a)(4)(iii), the "latest possible maturity date" for each of the REMIC 1
Regular Interests. None of the REMIC 1 Regular Interests will be certificated.

<PAGE>

<TABLE>
<CAPTION>
======================================================================================================================

                                 Uncertificated
                                REMIC Pass-Through       Initial Uncertificated            Latest Possible Maturity
       Designation                    Rate                        Balance                           Date(1)
----------------------------------------------------------------------------------------------------------------------
<S>                                <C>                        <C>                            <C>
          LT1AA                    Variable(2)                $ 576,046,491.90               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
          LT1A1                    Variable(2)                $     755,850.00               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
         LT1A2A                    Variable(2)                $   1,906,330.00               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
         LT1A2B                    Variable(2)                $   1,732,270.00               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
         LT1A2C                    Variable(2)                $     480,175.00               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
          LT1M1                    Variable(2)                $     271,795.00               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
          LT1M2                    Variable(2)                $     171,350.00               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
          LT1M3                    Variable(2)                $      82,725.00               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
          LT1M4                    Variable(2)                $      59,085.00               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
          LT1M5                    Variable(2)                $      59,085.00               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
          LT1M6                    Variable(2)                $      62,040.00               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
          LT1M7                    Variable(2)                $      59,090.00               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
          LT1M8                    Variable(2)                $      50,220.00               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
          LT1M9                    Variable(2)                $      59,085.00               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
         LT1M10                    Variable(2)                $      44,315.00               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
          LT1B1                    Variable(2)                $      23,635.00               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
          LT1B2                    Variable(2)                $      26,590.00               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
          LT1B3                    Variable(2)                $      35,450.00               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
          LT1ZZ                    Variable(2)                $   5,938,185.34               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
         LT1SUB                    Variable(2)                $       3,206.65               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
         LT1GRP                    Variable(2)                $      18,323.65               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
         LT2SUB                    Variable(2)                $      17,473.62               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
         LT2GRP                    Variable(2)                $      99,849.12               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
          LTXX                     Variable(2)                $ 590,724,914.21               March 25, 2035
----------------------------------------------------------------------------------------------------------------------
          LT1P                     Variable(2)                $         100.00               March 25, 2035
======================================================================================================================
</TABLE>

(1)      Solely for purposes of Treasury Regulations Section
         1.860G-1(a)(4)(iii), the Distribution Date in the month following the
         maturity date for the Mortgage Loan with the latest maturity date has
         been designated as the "latest possible maturity date" for each REMIC 1
         Regular Interest.
(2)      Calculated in accordance with the definition of "Uncertificated REMIC 1
         Pass-Through Rate" herein.

                  The foregoing REMIC structure is intended to cause all the
cash from the Mortgage Loans to flow through REMIC 2 as cash flow on a Regular
Certificate, without creating any shortfall, actual or potential (other than for
losses), to any REMIC Regular Certificate. To the extent that the structure is
believed to diverge from such intention, the party identifying such ambiguity or
drafting error shall notify the other parties hereto, and the parties hereto
shall attempt to resolve such ambiguity or drafting error in accordance with
Section 11.01 herein.

                                      -2-
<PAGE>

                                     REMIC 2

                  As provided herein, the Securities Administrator shall make an
election to treat the segregated pool of assets consisting of the REMIC 1
Regular Interests as a REMIC for federal income tax purposes, and such
segregated pool of assets will be designated as "REMIC 2." The Class R-2
Interest represents the sole class of "residual interests" in REMIC 2 for
purposes of the REMIC Provisions.

                  The following table sets forth (or describes) the Class
designation, Certificate Interest Rate and Original Class Certificate Principal
Balance for each Class of Certificates comprising the interests in the Trust
Fund created hereunder:

<TABLE>
<CAPTION>
======================================================================================================================
                                       Original Class
                                    Certificate Principal        Certificate                     Assumed Final
        Class                              Balance              Interest Rate                  Maturity Dates(20)
----------------------------------------------------------------------------------------------------------------------
<S>                                   <C>                            <C>                    <C>
A-1                                   $ 151,170,000                  (1)                      January 25, 2035
----------------------------------------------------------------------------------------------------------------------
A-2A                                  $ 381,266,000                  (2)                       June 25, 2023
----------------------------------------------------------------------------------------------------------------------
A-2B                                  $ 346,454,000                  (3)                      January 25, 2033
----------------------------------------------------------------------------------------------------------------------
A-2C                                  $ 96,035,000                   (4)                     December 25, 2034
----------------------------------------------------------------------------------------------------------------------
M-1                                   $ 54,359,000                   (5)                     November 25, 2034
----------------------------------------------------------------------------------------------------------------------
M-2                                   $ 34,270,000                   (6)                      October 25, 2034
----------------------------------------------------------------------------------------------------------------------
M-3                                   $ 16,545,000                   (7)                     September 25, 2034
----------------------------------------------------------------------------------------------------------------------
M-4                                   $ 11,817,000                   (8)                      August 25, 2034
----------------------------------------------------------------------------------------------------------------------
M-5                                   $ 11,817,000                   (9)                       July 25, 2034
----------------------------------------------------------------------------------------------------------------------
M-6                                   $ 12,408,000                   (10)                      July 25, 2034
----------------------------------------------------------------------------------------------------------------------
M-7                                   $ 11,818,000                   (11)                      June 25, 2034
----------------------------------------------------------------------------------------------------------------------
M-8                                   $ 10,044,000                   (12)                    April 25, 2034
----------------------------------------------------------------------------------------------------------------------
M-9                                   $ 11,817,000                   (13)                   February 25, 2034
----------------------------------------------------------------------------------------------------------------------
M-10                                  $  8,863,000                   (14)                   October 25, 2033
----------------------------------------------------------------------------------------------------------------------
B-1                                   $  4,727,000                   (15)                    April 25, 2033
----------------------------------------------------------------------------------------------------------------------
B-2                                   $  5,318,000                   (16)                   October 25, 2032
----------------------------------------------------------------------------------------------------------------------
B-3                                   $  7,090,000                   (17)                   October 25, 2032
----------------------------------------------------------------------------------------------------------------------
CE                                        (18)                       (18)                          N/A
----------------------------------------------------------------------------------------------------------------------
P                                         $100                       (19)                          N/A
----------------------------------------------------------------------------------------------------------------------
R                                          N/A                       N/A                           N/A
======================================================================================================================
</TABLE>

(1)      Interest will accrue on the Class A-1 Certificates during each Interest
         Accrual Period at a rate equal to the lesser of: (i) the Class A-1
         Pass-Through Rate and (ii) the Group 1 Cap for such Distribution Date.
(2)      Interest will accrue on the Class A-2A Certificates during each
         Interest Accrual Period at a rate equal to the lesser of: (i) the Class
         A-2A Pass-Through Rate and (ii) the Group 2 Cap for such Distribution
         Date.
(3)      Interest will accrue on the Class A-2B Certificates during each
         Interest Accrual Period at a rate equal to the lesser of: (i) the Class
         A-2B Pass-Through Rate and (ii) the Group 2 Cap for such Distribution
         Date.
(4)      Interest will accrue on the Class A-2C Certificates during each
         Interest Accrual Period at a rate equal to the lesser of: (i) the Class
         A-2C Pass-Through Rate and (ii) the Group 2 Cap for such Distribution
         Date.
(5)      Interest will accrue on the Class M-1 Certificates during each Interest
         Accrual Period at a rate equal to the lesser of: (i) the Class M-1
         Pass-Through Rate and (ii) the Pool Cap for such Distribution Date.
(6)      Interest will accrue on the Class M-2 Certificates during each Interest
         Accrual Period at a rate equal to the lesser of: (i) the Class M-2
         Pass-Through Rate and (ii) the Pool Cap for such Distribution Date.

                                      -3-
<PAGE>

(7)      Interest will accrue on the Class M-3 Certificates during each Interest
         Accrual Period at a rate equal to the lesser of: (i) the Class M-3
         Pass-Through Rate and (ii) the Pool Cap for such Distribution Date.
(8)      Interest will accrue on the Class M-4 Certificates during each Interest
         Accrual Period at a rate equal to the lesser of: (i) the Class M-4
         Pass-Through Rate and (ii) the Pool Cap for such Distribution Date.
(9)      Interest will accrue on the Class M-5 Certificates during each Interest
         Accrual Period at a rate equal to the lesser of: (i) the Class M-5
         Pass-Through Rate and (ii) the Pool Cap for such Distribution Date.
(10)     Interest will accrue on the Class M-6 Certificates during each Interest
         Accrual Period at a rate equal to the lesser of: (i) the Class M-6
         Pass-Through Rate and (ii) the Pool Cap for such Distribution Date.
(11)     Interest will accrue on the Class M-7 Certificates during each Interest
         Accrual Period at a rate equal to the lesser of: (i) the Class M-7
         Pass-Through Rate and (ii) the Pool Cap for such Distribution Date.
(12)     Interest will accrue on the Class M-8 Certificates during each Interest
         Accrual Period at a rate equal to the lesser of: (i) the Class M-8
         Pass-Through Rate and (ii) the Pool Cap for such Distribution Date.
(13)     Interest will accrue on the Class M-9 Certificates during each Interest
         Accrual Period at a rate equal to the lesser of: (i) the Class M-9
         Pass-Through Rate and (ii) the Pool Cap for such Distribution Date.
(14)     Interest will accrue on the Class M-10 Certificates during each
         Interest Accrual Period at a rate equal to the lesser of: (i) the Class
         M-10 Pass-Through Rate and (ii) the Pool Cap for such Distribution
         Date.
(15)     Interest will accrue on the Class B-1 Certificates during each Interest
         Accrual Period at a rate equal to the lesser of: (i) the Class B -1
         Pass-Through Rate and (ii) the Pool Cap for such Distribution Date.
(16)     Interest will accrue on the Class B-2 Certificates during each Interest
         Accrual Period at a rate equal to the lesser of: (i) the Class B -2
         Pass-Through Rate and (ii) the Pool Cap for such Distribution Date.
(17)     Interest will accrue on the Class B-3 Certificates during each Interest
         Accrual Period at a rate equal to the lesser of: (i) the Class B -3
         Pass-Through Rate and (ii) the Pool Cap for such Distribution Date.
(18)     Solely for REMIC purposes, the Class CE Certificates (i) will have an
         Original Class Certificate Principal Balance equal to the Initial
         Overcollateralization Amount and (ii) will bear interest at its
         Pass-Through Rate on the Notional Amount of the Class CE Certificates.
(19)     The Class P Certificate will not bear interest.
(20)     Solely for purposes of Treasury Regulations Section
         1.860G-1(a)(4)(iii), March 25, 2035, which is the Distribution Date in
         the month following the maturity date for the Mortgage Loan with the
         latest maturity date, has been designated as the "latest possible
         maturity date" for each Class of Certificates.

As of the Cut-off Date, the Group 1 Mortgage Loans had an aggregate Scheduled
Principal Balance equal to $183,236,481.48 and the Group 2 Mortgage Loans had an
aggregate Scheduled Principal Balance equal to $998,491,153.00.

                                      -4-
<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

                  Section 1.01 Defined Terms.

                  Whenever used in this Agreement or in the Preliminary
Statement, the following words and phrases, unless the context otherwise
requires, shall have the meanings specified in this Article. Interest on all
Classes of REMIC 1 Regular Interests will be calculated on the basis of a
360-day year consisting of twelve 30-day months. Interest on all Regular
Certificates will be calculated on the basis of the actual number of days in the
related Interest Accrual Period and a 360-day year.

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

                  "60+ Day Delinquent Loan": Each Mortgage Loan (including each
Mortgage Loan in foreclosure and each Mortgage Loan for which the Mortgagor has
filed for bankruptcy after the Closing Date) with respect to which any portion
of a Monthly Payment is, as of the last day of the prior Collection Period, two
months or more past due and each Mortgage Loan relating to an REO Property.

                  "Account": Any of the Collection Account, the Distribution
Account, the Class A-1 Reserve Account, the Class A-2A, Class A-2B and Class
A-2C Reserve Account, the Class M and Class B Reserve Account or the Escrow
Account.

                  "Accrued Certificate Interest": With respect to each
Distribution Date and each Class of Class A, Class M and Class B Certificates,
an amount equal to the interest accrued at the Certificate Interest Rate
described opposite such Class in the table in the Preliminary Statement during
the related Interest Accrual Period on the Certificate Principal Balance of such
Class of Certificates, reduced by such Class' Interest Percentage of Prepayment
Interest Shortfalls (not covered by Compensating Interest) and Relief Act
Interest Shortfalls for such Distribution Date allocated to such class pursuant
to Section 4.01.

                  "Adjustable-Rate Mortgage Loan": A Mortgage Loan which has a
rate at which interest accrues that adjusts based on the Index plus a related
Gross Margin, as set forth and subject to the limitations in the related
Mortgage Note.

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

                  "Advance": As to any Mortgage Loan, any advance made by the
Servicer in respect of any Distribution Date pursuant to Section 4.07.

                  "Adverse REMIC Event":  As defined in Section 9.01(f) hereof.

                                      -5-
<PAGE>

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

                  "Aggregate Overcollateralization Release Amount": With respect
to any Distribution Date, the lesser of (i) the Principal Remittance Amount and
(ii) the Overcollateralization Release Amount.

                  "Agreement": This Pooling and Servicing Agreement and all
amendments and supplements hereto.

                  "Applicable Regulations": As to any Mortgage Loan, all
federal, state and local laws, statutes, rules and regulations applicable
thereto.

                  "Applied Realized Loss Amount": With respect to each
Distribution Date, the excess, if any, of (a) the aggregate of the Certificate
Principal Balances of the Class A, Class M, Class B and Class P Certificates
(after giving effect to the distribution of the Principal Distribution Amount on
such Distribution Date and any increase in any Certificate Principal Balance as
a result of Subsequent Recoveries) over (b) the Pool Balance as of the end of
the related Collection Period.

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

                  "Assignment, Assumption and Recognition Agreement": The
Assignment, Assumption and Recognition Agreement, dated April 28, 2005, among
the Depositor, the Seller and the Originator.

                  "Assumed Final Maturity Date": As to each Class of
Certificates, the date set forth as such in the Preliminary Statement.

                  "Available Funds": As to any Distribution Date, an amount
equal to the excess of (i) the sum of (a) the aggregate of the Monthly Payments
due during the related Collection Period and received on or prior to the related
Determination Date by the Servicer, (b) Liquidation Proceeds, Insurance
Proceeds, Condemnation Proceeds, Principal Prepayments, Substitution
Adjustments, the Purchase Price for any repurchased Mortgage Loan, the
Termination Price with respect to the termination of the Trust pursuant to
Section 10.01 hereof and other unscheduled recoveries of principal and interest
(excluding Prepayment Charges and Servicer Prepayment Charge Payment Amounts) in
respect of the Mortgage Loans during the related Prepayment Period, (c) the
aggregate of any amounts received in respect of an REO Property deposited in the
Collection Account for such Distribution Date, (d) any Compensating Interest for
such Distribution Date, (e) the aggregate of any Advances made by the Servicer
for such Distribution Date and (f) any Reimbursement Amount or Subsequent
Recovery deposited into the Collection Account during the related Prepayment
Period over (ii) the sum of (a) amounts reimbursable or payable to the Servicer
pursuant to Sections 3.05 or 6.03, (b) amounts reimbursable or payable to the
Trustee or the Securities Administrator pursuant to Section 8.05 or Section
9.01(c), (c) Stayed Funds, (d) the Servicing Fee and (e) amounts deposited in
the Collection Account or the Distribution Account, as the case may be, in
error.

                                      -6-
<PAGE>

                  "Balloon Mortgage Loan": Each of the Mortgage Loans having an
original term to maturity that is shorter than the related amortization term.

                  "Bankruptcy Code": Title 11 of the United States Code, as
amended.

                  "Book-Entry Certificates": Any of the Certificates that shall
be registered in the name of the Depository or its nominee, the ownership of
which is reflected on the books of the Depository or on the books of a Person
maintaining an account with the Depository (directly, as a "Depository
Participant," or indirectly, as an indirect participant in accordance with the
rules of the Depository and as described in Section 5.02 hereof). On the Closing
Date, the Class A-1, Class A-2A, Class A-2B, Class A-2C, Class M-1, Class M-2,
Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9,
Class M-10, Class B-1 and Class B-2 Certificates shall be Book-Entry
Certificates.

                  "Business Day": Any day other than a Saturday, a Sunday or a
day on which banking institutions in the State of New York, the State of
California, the city in which the offices of the Servicer are located or in the
city in which the Corporate Trust Office of the Trustee or the Securities
Administrator is located are authorized or obligated by law or executive order
to be closed.

                  "Cap": Any of the Group 1 Cap, the Group 2 Cap or the Pool
Cap.

                  "Cap Carryover Amount": If on any Distribution Date, the
Accrued Certificate Interest for any Class of Class A, Class M or Class B
Certificates is based upon a Cap, the excess of (i) the amount of interest such
Class of Certificates would have been entitled to receive on such Distribution
Date based on the related Pass-Through Rate, over (ii) the amount of interest
such Class of Certificates received on such Distribution Date based on the
related Cap, together with the unpaid portion of any such excess from prior
Distribution Dates (and interest accrued thereon at the then applicable
Pass-Through Rate on such Class of Certificates).

                  "Certificate": Any Regular Certificate or Class R Certificate.

                  "Certificate Custodian": Initially, Wells Fargo Bank, N.A.;
thereafter any other Certificate Custodian acceptable to the Depository and
selected by the Securities Administrator.

                  "Certificate Interest Rate": With respect to each Distribution
Date during the Interest Accrual Period and (a) each Class of Class A, Class M
and Class B Certificates, a per annum rate equal to the lesser of (i) the
related Pass-Through Rate and (ii) the applicable Cap for such Distribution Date
and (b) the Class CE Certificates, the related Pass-Through Rate.

                  "Certificate Owner": With respect to each Book-Entry
Certificate, any beneficial owner thereof.

                                      -7-
<PAGE>

                  "Certificate Principal Balance": With respect to any Class of
Certificates (other than the Class CE and Class R Certificates) and any
Distribution Date, the Original Class Certificate Principal Balance (a) reduced
by the sum of (i) all amounts actually distributed in respect of principal of
such Class on all prior Distribution Dates and (ii) Applied Realized Loss
Amounts allocated thereto for previous Distribution Dates and (b) increased by
any Subsequent Recoveries allocated to such Class for previous Distribution
Dates. The Class R Certificates do not have a Certificate Principal Balance.
With respect to the Class CE Certificate and any Distribution Date, the excess,
if any, of the then aggregate Uncertificated Principal Balances of the REMIC 1
Regular Interests over the aggregate Certificate Principal Balance of the Class
A Certificates, the Class M Certificates, the Class B Certificates and the Class
P Certificates then outstanding. With respect to any Certificate (other than a
Class R Certificate) of a Class and any Distribution Date, the portion of the
Certificate Principal Balance of such Class represented by such Certificate
equal to the product of the Percentage Interest evidenced by such Certificate
and the Certificate Principal Balance of such Class.

                  "Certificate Register" and "Certificate Registrar": The
register maintained and registrar appointed pursuant to Section 5.02 hereof.

                  "Certificateholder" or "Holder": The Person in whose name a
Certificate is registered in the Certificate Register, except that a
Disqualified Organization or non-U.S. Person shall not be a Holder of the Class
R Certificate for any purpose hereof.

                  "Certification":  As defined in Section 3.31(b) hereof.

                  "Class": Collectively, Certificates or REMIC 1 Regular
Interests which have the same priority of payment and bear the same class
designation and the form of which is identical except for variation in the
Percentage Interest evidenced thereby.

                  "Class A Certificate": Any one of the Certificates with an "A"
designated on the face thereof substantially in the form annexed hereto as
Exhibits A-1, A-2, A-3 and A-4, executed by the Securities Administrator on
behalf of the Trust and authenticated and delivered by the Certificate
Registrar, representing the right to distributions as set forth herein and
therein and representing a regular interest in REMIC 2 for purposes of the REMIC
Provisions.

                  "Class A Certificateholders": Collectively, the Holders of the
Class A Certificates.

                  "Class A-1 Certificate Margin": For each Distribution Date (i)
on or prior to the Optional Termination Date, 0.190% per annum, and (ii)
following the Optional Termination Date, 0.380% per annum.

                  "Class A-1 Pass-Through Rate": For each Distribution Date, a
rate per annum equal to the lesser of (a) One-Month LIBOR as of the related
LIBOR Determination Date, plus the Class A-1 Certificate Margin and (b) the
Group 1 Maximum Rate Cap.

                  "Class A-1 Reserve Account": The trust account created and
maintained by the Securities Administrator pursuant to Section 3.04(g) which
shall be entitled "Class A-1 Reserve Account, Wells Fargo Bank, N.A., as
Securities Administrator, in trust for registered Holders of the Class A-1
Certificates of the ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates, Series
2005-WF1" and which must be an Eligible Account. Amounts on deposit in the Class
A-1 Reserve Account shall not be invested. The Class A-1 Reserve Account shall
not be an asset of any REMIC formed under this Agreement.

                                      -8-
<PAGE>

                  "Class A-1 Yield Maintenance Agreement": The interest rate cap
agreement between the Securities Administrator, on behalf of the Trust, and the
Yield Maintenance Agreement Provider substantially in the form attached hereto
as Exhibit N-1. The Class A-1 Yield Maintenance Agreement shall not be an asset
of any REMIC formed under this Agreement.

                  "Class A-1 Yield Maintenance Agreement Payment": On each
Distribution Date through the Distribution Date in July 2008, the amount equal
to the product of (a) the excess of the lesser of (i) One-Month LIBOR and (ii)
the applicable ceiling rate over the applicable strike rate for such
Distribution Date, in each case as set forth on the schedule attached to the
confirmation to the Class A-1 Yield Maintenance Agreement for such Distribution
Date, (b) the lesser of (y) the cap notional amount as set forth on the schedule
attached to the confirmation to the Class A-1 Yield Maintenance Agreement for
such Distribution Date and (z) the aggregate principal balance of the Class A-1
Certificates immediately prior to such Distribution Date and (c) a fraction, the
numerator of which is the actual number of days elapsed since the previous
Distribution Date (or the Closing Date, in the case of the first Distribution
Date) to but excluding the current Distribution Date and the denominator of
which is 360.

                  "Class A-2A Certificate Margin": For each Distribution Date
(i) on or prior to the Optional Termination Date, 0.080% per annum, and (ii)
following the Optional Termination Date, 0.160% per annum.

                  "Class A-2A, Class A-2B and Class A-2C Cap Amount": With
respect to each Distribution Date and each Class of Class A-2A, Class A-2B and
Class A-2C Certificates with unpaid Cap Carryover Amounts, the product of (i)
the Class A-2A, Class A-2B and Class A-2C Yield Maintenance Agreement Payment
for such Distribution Date and (ii) a fraction, the numerator of which is the
Certificate Principal Balance of such Class immediately prior to such
Distribution Date and the denominator of which is the aggregate Certificate
Principal Balance of the Class A-2A, Class A-2B and Class A-2C Certificates with
unpaid Cap Carryover Amounts immediately prior to such Distribution Date.

                  "Class A-2A, Class A-2B and Class A-2C Reserve Account": The
trust account created and maintained by the Securities Administrator pursuant to
Section 3.04(g) which shall be entitled "Class A-2A, Class A-2B and Class A-2C
Reserve Account, Wells Fargo Bank, N.A., as Securities Administrator, in trust
for registered Holders of the Class A-2A, Class A-2B and Class A-2C Certificates
of the ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates, Series 2005-WF1" and
which must be an Eligible Account. Amounts on deposit in the Class A-2A, Class
A-2B and Class A-2C Reserve Account shall not be invested. The Class A-2A, Class
A-2B and Class A-2C Reserve Account shall not be an asset of any REMIC formed
under this Agreement.

                  "Class A-2A, Class A-2B and Class A-2C Yield Maintenance
Agreement": The interest rate cap agreement between the Securities
Administrator, on behalf of the Trust, and the Yield Maintenance Agreement
Provider substantially in the form attached hereto as Exhibit N-2. The Class
A-2A, Class A-2B and Class A-2C Yield Maintenance Agreement shall not be an
asset of any REMIC formed under this Agreement.

                  "Class A-2A, Class A-2B and Class A-2C Yield Maintenance
Agreement Payment": On each Distribution Date through the Distribution Date in
June 2008, the amount equal to the product of (a) the excess of the lesser of
(i) One-Month LIBOR and (ii) the applicable ceiling rate over the applicable
strike rate for such Distribution Date, in each case as set forth on the
schedule attached to the confirmation to the Class A-2A, Class A-2B and Class
A-2C Yield Maintenance Agreement for such Distribution Date, (b) the lesser of
(y) the cap notional amount as set forth on the schedule attached to the
confirmation to the Class A-2A, Class A-2B and Class A-2C Yield Maintenance
Agreement for such Distribution Date and (z) the aggregate principal balance of
the related Certificates immediately prior to such Distribution Date and (c) a
fraction, the numerator of which is the actual number of days elapsed since the
previous Distribution Date (or the Closing Date, in the case of the first
Distribution Date) to but excluding the current Distribution Date and the
denominator of which is 360.

                                      -9-
<PAGE>

                  "Class A-2A Pass-Through Rate": For each Distribution Date, a
rate per annum equal to the lesser of (a) One-Month LIBOR as of the related
LIBOR Determination Date, plus the Class A-2A Certificate Margin and (b) the
Group 2 Maximum Rate Cap.

                  "Class A-2B Certificate Margin": For each Distribution Date
(i) on or prior to the Optional Termination Date, 0.180% per annum, and (ii)
following the Optional Termination Date, 0.360% per annum.

                  "Class A-2B Pass-Through Rate": For each Distribution Date, a
rate per annum equal to the lesser of (a) One-Month LIBOR as of the related
LIBOR Determination Date, plus the Class A-2B Certificate Margin and (b) the
Group 2 Maximum Rate Cap.

                  "Class A-2C Certificate Margin": For each Distribution Date
(i) on or prior to the Optional Termination Date, 0.310% per annum, and (ii)
following the Optional Termination Date, 0.620% per annum.

                  "Class A-2C Pass-Through Rate": For each Distribution Date, a
rate per annum equal to the lesser of (a) One-Month LIBOR as of the related
LIBOR Determination Date, plus the Class A-2C Certificate Margin and (b) the
Group 2 Maximum Rate Cap.

                  "Class B Certificate": Any of the Certificates with a "B"
designated on the face thereof substantially in the forms annexed hereto as
Exhibits B-11, B-12 and B-13 executed by the Securities Administrator on behalf
of the Trust and authenticated and delivered by the Certificate Registrar,
representing the right to distributions as set forth herein and therein.

                  "Class B-1 Certificate Margin": For each Distribution Date (i)
on or prior to the Optional Termination Date, 3.250% per annum, and (ii)
following the Optional Termination Date, 4.875% per annum.

                  "Class B-1 Pass-Through Rate": For each Distribution Date, the
lesser of (a) One-Month LIBOR as of the related LIBOR Determination Date, plus
the Class B-1 Certificate Margin and (b) the Pool Maximum Rate Cap.

                  "Class B-1 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the sum of the Certificate
Principal Balances of the Class A Certificates (after taking into account the
payment of the Senior Principal Distribution Amount on such Distribution Date),
(ii) the Certificate Principal Balance of the Class M-1 Certificates (after
taking into account the payment of the Class M-1 Principal Distribution Amount
on such Distribution Date), (iii) the Certificate Principal Balance of the Class
M-2 Certificates (after taking into account the payment of the Class M-2
Principal Distribution Amount on such Distribution Date), (iv) the Certificate
Principal Balance of the Class M-3 Certificates (after taking into account the
payment of the Class M-3 Principal Distribution Amount on such Distribution
Date), (v) the Certificate Principal Balance of the Class M-4 Certificates
(after taking into account the payment of the Class M-4 Principal Distribution
Amount on such Distribution Date), (vi) the Certificate Principal Balance of the
Class M-5 Certificates (after taking into account the payment of the Class M-5
Principal Distribution Amount on such Distribution Date), (vii) the Certificate
Principal Balance of the Class M-6 Certificates (after taking into account the
payment of the Class M-6 Principal Distribution Amount on such Distribution
Date), (viii) the Certificate Principal Balance of the Class M-7 Certificates
(after taking into account the payment of the Class M-7 Principal Distribution
Amount on such Distribution Date), (ix) the Certificate Principal Balance of the
Class M-8 Certificates (after taking into account the payment of the Class M-8
Principal Distribution Amount on such Distribution Date), (x) the Certificate
Principal Balance of the Class M-9 Certificates (after taking into account the
payment of the Class M-9 Principal Distribution Amount on such Distribution
Date), (xi) the Certificate Principal Balance of the Class M-10 Certificates
(after taking into account the payment of the Class M-10 Principal Distribution
Amount on such Distribution Date) and (xii) the Certificate Principal Balance of
the Class B-1 Certificates immediately prior to such Distribution Date over (y)
the lesser of (A) the product of (i) 96.90% and (ii) the Pool Balance as of the
last day of the related Collection Period and (B) the Pool Balance as of the
last day of the related Collection Period minus the product of 0.50% and the
Pool Balance as of the Cut-off Date.

                                      -10-
<PAGE>

                  "Class B-1 Realized Loss Amortization Amount": As to the Class
B-1 Certificates and as of any Distribution Date, the lesser of (x) the
aggregate Unpaid Realized Loss Amount for the Class B-1 Certificates as of such
Distribution Date and (y) the excess of (i) the Monthly Excess Cashflow Amount
over (ii) the sum of the amounts described in Section 4.02(b)(i) through (xxxiv)
hereof, in each case for such Distribution Date.

                  "Class B-2 Certificate Margin": For each Distribution Date (i)
on or prior to the Optional Termination Date, 3.250% per annum, and (ii)
following the Optional Termination Date, 4.875% per annum.

                  "Class B-2 Pass-Through Rate": For each Distribution Date, the
lesser of (a) One-Month LIBOR as of the related LIBOR Determination Date, plus
the Class B-2 Certificate Margin and (b) the Pool Maximum Rate Cap.

                  "Class B-2 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the sum of the Certificate
Principal Balances of the Class A Certificates (after taking into account the
payment of the Senior Principal Distribution Amount on such Distribution Date),
(ii) the Certificate Principal Balance of the Class M-1 Certificates (after
taking into account the payment of the Class M-1 Principal Distribution Amount
on such Distribution Date), (iii) the Certificate Principal Balance of the Class
M-2 Certificates (after taking into account the payment of the Class M-2
Principal Distribution Amount on such Distribution Date), (iv) the Certificate
Principal Balance of the Class M-3 Certificates (after taking into account the
payment of the Class M-3 Principal Distribution Amount on such Distribution
Date), (v) the Certificate Principal Balance of the Class M-4 Certificates
(after taking into account the payment of the Class M-4 Principal Distribution
Amount on such Distribution Date), (vi) the Certificate Principal Balance of the
Class M-5 Certificates (after taking into account the payment of the Class M-5
Principal Distribution Amount on such Distribution Date), (vii) the Certificate
Principal Balance of the Class M-6 Certificates (after taking into account the
payment of the Class M-6 Principal Distribution Amount on such Distribution
Date), (viii) the Certificate Principal Balance of the Class M-7 Certificates
(after taking into account the payment of the Class M-7 Principal Distribution
Amount on such Distribution Date), (ix) the Certificate Principal Balance of the
Class M-8 Certificates (after taking into account the payment of the Class M-8
Principal Distribution Amount on such Distribution Date), (x) the Certificate
Principal Balance of the Class M-9 Certificates (after taking into account the
payment of the Class M-9 Principal Distribution Amount on such Distribution
Date), (xi) the Certificate Principal Balance of the Class M-10 Certificates
(after taking into account the payment of the Class M-10 Principal Distribution
Amount on such Distribution Date), (xii) the Certificate Principal Balance of
the Class B-1 Certificates (after taking into account the payment of the Class
B-1 Principal Distribution Amount on such Distribution Date) and (xiii) the
Certificate Principal Balance of the Class B-2 Certificates immediately prior to
such Distribution Date over (y) the lesser of (A) the product of (i) 97.80% and
(ii) the Pool Balance as of the last day of the related Collection Period and
(B) the Pool Balance as of the last day of the related Collection Period minus
the product of 0.50% and the Pool Balance as of the Cut-off Date.

                  "Class B-2 Realized Loss Amortization Amount": As to the Class
B-2 Certificates and as of any Distribution Date, the lesser of (x) the
aggregate Unpaid Realized Loss Amount for the Class B-2 Certificates as of such
Distribution Date and (y) the excess of (i) the Monthly Excess Cashflow Amount
over (ii) the sum of the amounts described in Section 4.02(b)(i) through
(xxxvii) hereof, in each case for such Distribution Date.

                  "Class B-3 Certificate Margin": For each Distribution Date (i)
on or prior to the Optional Termination Date, 3.250% per annum, and (ii)
following the Optional Termination Date, 4.875% per annum.

                                      -11-
<PAGE>

                  "Class B-3 Pass-Through Rate": For each Distribution Date, the
lesser of (a) One-Month LIBOR as of the related LIBOR Determination Date, plus
the Class B-3 Certificate Margin and (b) the Pool Maximum Rate Cap.

                  "Class B-3 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the sum of the Certificate
Principal Balances of the Class A Certificates (after taking into account the
payment of the Senior Principal Distribution Amount on such Distribution Date),
(ii) the Certificate Principal Balance of the Class M-1 Certificates (after
taking into account the payment of the Class M-1 Principal Distribution Amount
on such Distribution Date), (iii) the Certificate Principal Balance of the Class
M-2 Certificates (after taking into account the payment of the Class M-2
Principal Distribution Amount on such Distribution Date), (iv) the Certificate
Principal Balance of the Class M-3 Certificates (after taking into account the
payment of the Class M-3 Principal Distribution Amount on such Distribution
Date), (v) the Certificate Principal Balance of the Class M-4 Certificates
(after taking into account the payment of the Class M-4 Principal Distribution
Amount on such Distribution Date), (vi) the Certificate Principal Balance of the
Class M-5 Certificates (after taking into account the payment of the Class M-5
Principal Distribution Amount on such Distribution Date), (vii) the Certificate
Principal Balance of the Class M-6 Certificates (after taking into account the
payment of the Class M-6 Principal Distribution Amount on such Distribution
Date), (viii) the Certificate Principal Balance of the Class M-7 Certificates
(after taking into account the payment of the Class M-7 Principal Distribution
Amount on such Distribution Date), (ix) the Certificate Principal Balance of the
Class M-8 Certificates (after taking into account the payment of the Class M-8
Principal Distribution Amount on such Distribution Date), (x) the Certificate
Principal Balance of the Class M-9 Certificates (after taking into account the
payment of the Class M-9 Principal Distribution Amount on such Distribution
Date), (xi) the Certificate Principal Balance of the Class M-10 Certificates
(after taking into account the payment of the Class M-10 Principal Distribution
Amount on such Distribution Date), (xii) the Certificate Principal Balance of
the Class B-1 Certificates (after taking into account the payment of the Class
B-1 Principal Distribution Amount on such Distribution Date), (xiii) the
Certificate Principal Balance of the Class B-2 Certificates (after taking into
account the payment of the Class B-2 Principal Distribution Amount on such
Distribution Date) and (xiv) the Certificate Principal Balance of the Class B-3
Certificates immediately prior to such Distribution Date over (y) the lesser of
(A) the product of (i) 99.00% and (ii) the Pool Balance as of the last day of
the related Collection Period and (B) the Pool Balance as of the last day of the
related Collection Period minus the product of 0.50% and the Pool Balance as of
the Cut-off Date.

                  "Class B-3 Realized Loss Amortization Amount": As to the Class
B-3 Certificates and as of any Distribution Date, the lesser of (x) the
aggregate Unpaid Realized Loss Amount for the Class B-3 Certificates as of such
Distribution Date and (y) the excess of (i) the Monthly Excess Cashflow Amount
over (ii) the sum of the amounts described in Section 4.02(b)(i) through (xl)
hereof, in each case for such Distribution Date.

                  "Class CE Certificates": Any one of the Class CE Certificates
as designated on the face thereof substantially in the form annexed hereto as
Exhibit C-1, executed by the Securities Administrator on behalf of the Trust and
authenticated and delivered by the Certificate Registrar, representing the right
to distributions as set forth herein and therein and representing a regular
interest in REMIC 2 for purposes of the REMIC Provisions.

                  "Class CE Distributable Amount": With respect to any
Distribution Date, the sum of (i) the interest accrued on such Class CE
Certificate at its Pass-Through Rate calculated on its Notional Amount less the
amount (without duplication) of Cap Carryover Amounts paid pursuant to Section
4.02(b)(xlii), (ii) any remaining Aggregate Overcollateralization Release
Amounts, (iii) the aggregate of amounts remaining in the Class A-1 Reserve
Account after the distributions in Section 3.04(g)(i)(A), as specified in
Section 3.04(g)(i)(D), (iv) the aggregate of amounts remaining in the Class
A-2A, Class A-2B and Class A-2C Reserve Account after the distributions in
Section 3.04(g)(i)(B), as specified in Section 3.04(g)(i)(D) and (v) the
aggregate of amounts remaining in the Class M and Class B Reserve Account after
the distributions in Section 3.04(g)(i)(C), as specified in Section
3.04(g)(i)(D).

                                      -12-
<PAGE>

                  "Class M Certificate": Any one of the Certificates with an "M"
designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, Exhibit B-2, Exhibit B-3, Exhibit B-4, Exhibit B-5, Exhibit B-6,
Exhibit B-7, Exhibit B-8, Exhibit B-9 and Exhibit B-10, executed by the
Securities Administrator on behalf of the Trust and authenticated and delivered
by the Certificate Registrar, representing the right to distributions as set
forth herein and therein and representing a regular interest in REMIC 2 for
purposes of the REMIC Provisions.

                  "Class M Certificateholders": Collectively, the Holders of the
Class M Certificates.

                  "Class M-1 Certificate Margin": For each Distribution Date (i)
on or prior to the Optional Termination Date, 0.360% per annum, and (ii)
following the Optional Termination Date, 0.540% per annum.

                  "Class M-1 Pass-Through Rate": For each Distribution Date, the
lesser of (a) One-Month LIBOR as of the related LIBOR Determination Date, plus
the Class M-1 Certificate Margin and (b) the Pool Maximum Rate Cap.

                  "Class M-1 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the sum of the Certificate
Principal Balances of the Class A Certificates (after taking into account the
payment of the Senior Principal Distribution Amount on such Distribution Date)
and (ii) the Certificate Principal Balance of the Class M-1 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 74.20% and (ii) the Pool Balance as of the last day of the
related Collection Period and (B) the Pool Balance as of the last day of the
related Collection Period minus the product of 0.50% and the Pool Balance as of
the Cut-off Date.

                  "Class M-1 Realized Loss Amortization Amount": As to the Class
M-1 Certificates and as of any Distribution Date, the lesser of (x) the Unpaid
Realized Loss Amount for the Class M-1 Certificates as of such Distribution Date
and (y) the excess of (i) the Monthly Excess Cashflow Amount over (ii) the sum
of the amounts described in Section 4.02(b)(i) through (iv) hereof, in each case
for such Distribution Date.

                  "Class M-2 Certificate Margin": For each Distribution Date (i)
on or prior to the Optional Termination Date, 0.400% per annum, and (ii)
following the Optional Termination Date, 0.600% per annum.

                  "Class M-2 Pass-Through Rate": For each Distribution Date, the
lesser of (a) One-Month LIBOR as of the related LIBOR Determination Date, plus
the Class M-2 Certificate Margin and (b) the Pool Maximum Rate Cap.

                  "Class M-2 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the sum of the Certificate
Principal Balances of the Class A Certificates (after taking into account the
payment of the Senior Principal Distribution Amount on such Distribution Date),
(ii) the Certificate Principal Balance of the Class M-1 Certificates (after
taking into account the payment of the Class M-1 Principal Distribution Amount
on such Distribution Date) and (iii) the Certificate Principal Balance of the
Class M-2 Certificates immediately prior to such Distribution Date over (y) the
lesser of (A) the product of (i) 80.00% and (ii) the Pool Balance as of the last
day of the related Collection Period and (B) the Pool Balance as of the last day
of the related Collection Period minus the product of 0.50% and the Pool Balance
as of the Cut-off Date.

                  "Class M-2 Realized Loss Amortization Amount": As to the Class
M-2 Certificates and as of any Distribution Date, the lesser of (x) the Unpaid
Realized Loss Amount for the Class M-2 Certificates as of such Distribution Date
and (y) the excess of (i) the Monthly Excess Cashflow Amount over (ii) the sum
of the amounts described in Section 4.02(b)(i) through (vii) hereof, in each
case for such Distribution Date.

                  "Class M-3 Certificate Margin": For each Distribution Date (i)
on or prior to the Optional Termination Date, 0.450% per annum, and (ii)
following the Optional Termination Date, 0.675% per annum.

                  "Class M-3 Pass-Through Rate": For each Distribution Date, the
lesser of (a) One-Month LIBOR as of the related LIBOR Determination Date, plus
the Class M-3 Certificate Margin and (b) the Pool Maximum Rate Cap.

                                      -13-
<PAGE>

                  "Class M-3 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the sum of the Certificate
Principal Balances of the Class A Certificates (after taking into account the
payment of the Senior Principal Distribution Amount on such Distribution Date),
(ii) the Certificate Principal Balance of the Class M-1 Certificates (after
taking into account the payment of the Class M-1 Principal Distribution Amount
on such Distribution Date), (iii) the Certificate Principal Balance of the Class
M-2 Certificates (after taking into account the payment of the Class M-2
Principal Distribution Amount on such Distribution Date) and (iv) the
Certificate Principal Balance of the Class M-3 Certificates immediately prior to
such Distribution Date over (y) the lesser of (A) the product of (i) 82.80% and
(ii) the Pool Balance as of the last day of the related Collection Period and
(B) the Pool Balance as of the last day of the related Collection Period minus
the product of 0.50% and the Pool Balance as of the Cut-off Date.

                  "Class M-3 Realized Loss Amortization Amount": As to the Class
M-3 Certificates and as of any Distribution Date, the lesser of (x) the Unpaid
Realized Loss Amount for the Class M-3 Certificates as of such Distribution Date
and (y) the excess of (i) the Monthly Excess Cashflow Amount over (ii) the sum
of the amounts described in Section 4.02(b)(i) through (x) hereof, in each case
for such Distribution Date.

                  "Class M-4 Certificate Margin": For each Distribution Date (i)
on or prior to the Optional Termination Date, 0.600% per annum, and (ii)
following the Optional Termination Date, 0.900% per annum.

                  "Class M-4 Pass-Through Rate": For each Distribution Date, the
lesser of (a) One-Month LIBOR as of the related LIBOR Determination Date, plus
the Class M-4 Certificate Margin and (b) the Pool Maximum Rate Cap.

                  "Class M-4 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the sum of the Certificate
Principal Balances of the Class A Certificates (after taking into account the
payment of the Senior Principal Distribution Amount on such Distribution Date),
(ii) the Certificate Principal Balance of the Class M-1 Certificates (after
taking into account the payment of the Class M-1 Principal Distribution Amount
on such Distribution Date), (iii) the Certificate Principal Balance of the Class
M-2 Certificates (after taking into account the payment of the Class M-2
Principal Distribution Amount on such Distribution Date), (iv) the Certificate
Principal Balance of the Class M-3 Certificates (after taking into account the
payment of the Class M-3 Principal Distribution Amount on such Distribution
Date) and (v) the Certificate Principal Balance of the Class M-4 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 84.80% and (ii) the Pool Balance as of the last day of the
related Collection Period and (B) the Pool Balance as of the last day of the
related Collection Period minus the product of 0.50% and the Pool Balance as of
the Cut-off Date.

                  "Class M-4 Realized Loss Amortization Amount": As to the Class
M-4 Certificates and as of any Distribution Date, the lesser of (x) the Unpaid
Realized Loss Amount for the Class M-4 Certificates as of such Distribution Date
and (y) the excess of (i) the Monthly Excess Cashflow Amount over (ii) the sum
of the amounts described in Section 4.02(b)(i) through (xiii) hereof, in each
case for such Distribution Date.

                  "Class M-5 Certificate Margin": For each Distribution Date (i)
on or prior to the Optional Termination Date, 0.630% per annum, and (ii)
following the Optional Termination Date, 0.945% per annum.

                  "Class M-5 Pass-Through Rate": For each Distribution Date, the
lesser of (a) One-Month LIBOR as of the related LIBOR Determination Date, plus
the Class M-5 Certificate Margin and (b) the Pool Maximum Rate Cap.

                                      -14-
<PAGE>

                  "Class M-5 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the sum of the Certificate
Principal Balances of the Class A Certificates (after taking into account the
payment of the Senior Principal Distribution Amount on such Distribution Date),
(ii) the Certificate Principal Balance of the Class M-1 Certificates (after
taking into account the payment of the Class M-1 Principal Distribution Amount
on such Distribution Date), (iii) the Certificate Principal Balance of the Class
M-2 Certificates (after taking into account the payment of the Class M-2
Principal Distribution Amount on such Distribution Date), (iv) the Certificate
Principal Balance of the Class M-3 Certificates (after taking into account the
payment of the Class M-3 Principal Distribution Amount on such Distribution
Date), (v) the Certificate Principal Balance of the Class M-4 Certificates
(after taking into account the payment of the Class M-4 Principal Distribution
Amount on such Distribution Date)and (vi) the Certificate Principal Balance of
the Class M-5 Certificates immediately prior to such Distribution Date over (y)
the lesser of (A) the product of (i) 86.80% and (ii) the Pool Balance as of the
last day of the related Collection Period and (B) the Pool Balance as of the
last day of the related Collection Period minus the product of 0.50% and the
Pool Balance as of the Cut-off Date.

                  "Class M-5 Realized Loss Amortization Amount": As to the Class
M-5 Certificates and as of any Distribution Date, the lesser of (x) the Unpaid
Realized Loss Amount for the Class M-5 Certificates as of such Distribution Date
and (y) the excess of (i) the Monthly Excess Cashflow Amount over (ii) the sum
of the amounts described in Section 4.02(b)(i) through (xvi) hereof, in each
case for such Distribution Date.

                  "Class M-6 Certificate Margin": For each Distribution Date (i)
on or prior to the Optional Termination Date, 0.660% per annum, and (ii)
following the Optional Termination Date, 0.990% per annum.

                  "Class M-6 Pass-Through Rate": For each Distribution Date, the
lesser of (a) One-Month LIBOR as of the related LIBOR Determination Date, plus
the Class M-6 Certificate Margin and (b) the Pool Maximum Rate Cap.

                  "Class M-6 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the sum of the Certificate
Principal Balances of the Class A Certificates (after taking into account the
payment of the Senior Principal Distribution Amount on such Distribution Date),
(ii) the Certificate Principal Balance of the Class M-1 Certificates (after
taking into account the payment of the Class M-1 Principal Distribution Amount
on such Distribution Date), (iii) the Certificate Principal Balance of the Class
M-2 Certificates (after taking into account the payment of the Class M-2
Principal Distribution Amount on such Distribution Date), (iv) the Certificate
Principal Balance of the Class M-3 Certificates (after taking into account the
payment of the Class M-3 Principal Distribution Amount on such Distribution
Date), (v) the Certificate Principal Balance of the Class M-4 Certificates
(after taking into account the payment of the Class M-4 Principal Distribution
Amount on such Distribution Date), (vi) the Certificate Principal Balance of the
Class M-5 Certificates (after taking into account the payment of the Class M-5
Principal Distribution Amount on such Distribution Date) and (vii) the
Certificate Principal Balance of the Class M-6 Certificates immediately prior to
such Distribution Date over (y) the lesser of (A) the product of (i) 88.90% and
(ii) the Pool Balance as of the last day of the related Collection Period and
(B) the Pool Balance as of the last day of the related Collection Period minus
the product of 0.50% and the Pool Balance as of the Cut-off Date.

                  "Class M-6 Realized Loss Amortization Amount": As to the Class
M-6 Certificates and as of any Distribution Date, the lesser of (x) the Unpaid
Realized Loss Amount for the Class M-6 Certificates as of such Distribution Date
and (y) the excess of (i) the Monthly Excess Cashflow Amount over (ii) the sum
of the amounts described in Section 4.02(b)(i) through (xix) hereof, in each
case for such Distribution Date.

                  "Class M-7 Certificate Margin": For each Distribution Date (i)
on or prior to the Optional Termination Date, 1.250% per annum, and (ii)
following the Optional Termination Date, 1.875% per annum.

                  "Class M-7 Pass-Through Rate": For each Distribution Date, the
lesser of (a) One-Month LIBOR as of the related LIBOR Determination Date, plus
the Class M-7 Certificate Margin and (b) the Pool Maximum Rate Cap.

                                      -15-
<PAGE>

                  "Class M-7 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the sum of the Certificate
Principal Balances of the Class A Certificates (after taking into account the
payment of the Senior Principal Distribution Amount on such Distribution Date),
(ii) the Certificate Principal Balance of the Class M-1 Certificates (after
taking into account the payment of the Class M-1 Principal Distribution Amount
on such Distribution Date), (iii) the Certificate Principal Balance of the Class
M-2 Certificates (after taking into account the payment of the Class M-2
Principal Distribution Amount on such Distribution Date), (iv) the Certificate
Principal Balance of the Class M-3 Certificates (after taking into account the
payment of the Class M-3 Principal Distribution Amount on such Distribution
Date), (v) the Certificate Principal Balance of the Class M-4 Certificates
(after taking into account the payment of the Class M-4 Principal Distribution
Amount on such Distribution Date), (vi) the Certificate Principal Balance of the
Class M-5 Certificates (after taking into account the payment of the Class M-5
Principal Distribution Amount on such Distribution Date), (vii) the Certificate
Principal Balance of the Class M-6 Certificates (after taking into account the
payment of the Class M-6 Principal Distribution Amount on such Distribution
Date) and (viii) the Certificate Principal Balance of the Class M-7 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 90.90% and (ii) the Pool Balance as of the last day of the
related Collection Period and (B) the Pool Balance as of the last day of the
related Collection Period minus the product of 0.50% and the Pool Balance as of
the Cut-off Date.

                  "Class M-7 Realized Loss Amortization Amount": As to the Class
M-7 Certificates and as of any Distribution Date, the lesser of (x) the
aggregate Unpaid Realized Loss Amount for the Class M-7 Certificates as of such
Distribution Date and (y) the excess of (i) the Monthly Excess Cashflow Amount
over (ii) the sum of the amounts described in Section 4.02(b)(i) through (xxii)
hereof, in each case for such Distribution Date.

                  "Class M-8 Certificate Margin": For each Distribution Date (i)
on or prior to the Optional Termination Date, 1.250% per annum, and (ii)
following the Optional Termination Date, 1.875% per annum.

                  "Class M-8 Pass-Through Rate": For each Distribution Date, the
lesser of (a) One-Month LIBOR as of the related LIBOR Determination Date, plus
the Class M-8 Certificate Margin and (b) the Pool Maximum Rate Cap.

                  "Class M-8 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the sum of the Certificate
Principal Balances of the Class A Certificates (after taking into account the
payment of the Senior Principal Distribution Amount on such Distribution Date),
(ii) the Certificate Principal Balance of the Class M-1 Certificates (after
taking into account the payment of the Class M-1 Principal Distribution Amount
on such Distribution Date), (iii) the Certificate Principal Balance of the Class
M-2 Certificates (after taking into account the payment of the Class M-2
Principal Distribution Amount on such Distribution Date), (iv) the Certificate
Principal Balance of the Class M-3 Certificates (after taking into account the
payment of the Class M-3 Principal Distribution Amount on such Distribution
Date), (v) the Certificate Principal Balance of the Class M-4 Certificates
(after taking into account the payment of the Class M-4 Principal Distribution
Amount on such Distribution Date), (vi) the Certificate Principal Balance of the
Class M-5 Certificates (after taking into account the payment of the Class M-5
Principal Distribution Amount on such Distribution Date), (vii) the Certificate
Principal Balance of the Class M-6 Certificates (after taking into account the
payment of the Class M-6 Principal Distribution Amount on such Distribution
Date), (viii) the Certificate Principal Balance of the Class M-7 Certificates
(after taking into account the payment of the Class M-7 Principal Distribution
Amount on such Distribution Date) and (ix) the Certificate Principal Balance of
the Class M-8 Certificates immediately prior to such Distribution Date over (y)
the lesser of (A) the product of (i) 92.60% and (ii) the Pool Balance as of the
last day of the related Collection Period and (B) the Pool Balance as of the
last day of the related Collection Period minus the product of 0.50% and the
Pool Balance as of the Cut-off Date.

                  "Class M-8 Realized Loss Amortization Amount": As to the Class
M-8 Certificates and as of any Distribution Date, the lesser of (x) the
aggregate Unpaid Realized Loss Amount for the Class M-8 Certificates as of such
Distribution Date and (y) the excess of (i) the Monthly Excess Cashflow Amount
over (ii) the sum of the amounts described in Section 4.02(b)(i) through (xxv)
hereof, in each case for such Distribution Date.

                  "Class M-9 Certificate Margin": For each Distribution Date (i)
on or prior to the Optional Termination Date, 1.700% per annum, and (ii)
following the Optional Termination Date, 2.550% per annum.

                  "Class M-9 Pass-Through Rate": For each Distribution Date, the
lesser of (a) One-Month LIBOR as of the related LIBOR Determination Date, plus
the Class M-9 Certificate Margin and (b) the Pool Maximum Rate Cap.

                                      -16-
<PAGE>

                  "Class M-9 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the sum of the Certificate
Principal Balances of the Class A Certificates (after taking into account the
payment of the Senior Principal Distribution Amount on such Distribution Date),
(ii) the Certificate Principal Balance of the Class M-1 Certificates (after
taking into account the payment of the Class M-1 Principal Distribution Amount
on such Distribution Date), (iii) the Certificate Principal Balance of the Class
M-2 Certificates (after taking into account the payment of the Class M-2
Principal Distribution Amount on such Distribution Date), (iv) the Certificate
Principal Balance of the Class M-3 Certificates (after taking into account the
payment of the Class M-3 Principal Distribution Amount on such Distribution
Date), (v) the Certificate Principal Balance of the Class M-4 Certificates
(after taking into account the payment of the Class M-4 Principal Distribution
Amount on such Distribution Date), (vi) the Certificate Principal Balance of the
Class M-5 Certificates (after taking into account the payment of the Class M-5
Principal Distribution Amount on such Distribution Date), (vii) the Certificate
Principal Balance of the Class M-6 Certificates (after taking into account the
payment of the Class M-6 Principal Distribution Amount on such Distribution
Date), (viii) the Certificate Principal Balance of the Class M-7 Certificates
(after taking into account the payment of the Class M-7 Principal Distribution
Amount on such Distribution Date), (ix) the Certificate Principal Balance of the
Class M-8 Certificates (after taking into account the payment of the Class M-8
Principal Distribution Amount on such Distribution Date) and (x) the Certificate
Principal Balance of the Class M-9 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of (i) 94.60% and (ii)
the Pool Balance as of the last day of the related Collection Period and (B) the
Pool Balance as of the last day of the related Collection Period minus the
product of 0.50% and the Pool Balance as of the Cut-off Date.

                  "Class M-9 Realized Loss Amortization Amount": As to the Class
M-9 Certificates and as of any Distribution Date, the lesser of (x) the
aggregate Unpaid Realized Loss Amount for the Class M-9 Certificates as of such
Distribution Date and (y) the excess of (i) the Monthly Excess Cashflow Amount
over (ii) the sum of the amounts described in Section 4.02(b)(i) through
(xxviii) hereof, in each case for such Distribution Date.

                  "Class M-10 Certificate Margin": For each Distribution Date
(i) on or prior to the Optional Termination Date, 3.250% per annum, and (ii)
following the Optional Termination Date, 4.875% per annum.

                  "Class M-10 Pass-Through Rate": For each Distribution Date,
the lesser of (a) One-Month LIBOR as of the related LIBOR Determination Date,
plus the Class M-10 Certificate Margin and (b) the Pool Maximum Rate Cap.

                  "Class M-10 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the sum of the Certificate
Principal Balances of the Class A Certificates (after taking into account the
payment of the Senior Principal Distribution Amount on such Distribution Date),
(ii) the Certificate Principal Balance of the Class M-1 Certificates (after
taking into account the payment of the Class M-1 Principal Distribution Amount
on such Distribution Date), (iii) the Certificate Principal Balance of the Class
M-2 Certificates (after taking into account the payment of the Class M-2
Principal Distribution Amount on such Distribution Date), (iv) the Certificate
Principal Balance of the Class M-3 Certificates (after taking into account the
payment of the Class M-3 Principal Distribution Amount on such Distribution
Date), (v) the Certificate Principal Balance of the Class M-4 Certificates
(after taking into account the payment of the Class M-4 Principal Distribution
Amount on such Distribution Date), (vi) the Certificate Principal Balance of the
Class M-5 Certificates (after taking into account the payment of the Class M-5
Principal Distribution Amount on such Distribution Date), (vii) the Certificate
Principal Balance of the Class M-6 Certificates (after taking into account the
payment of the Class M-6 Principal Distribution Amount on such Distribution
Date), (viii) the Certificate Principal Balance of the Class M-7 Certificates
(after taking into account the payment of the Class M-7 Principal Distribution
Amount on such Distribution Date), (ix) the Certificate Principal Balance of the
Class M-8 Certificates (after taking into account the payment of the Class M-8
Principal Distribution Amount on such Distribution Date), (x) the Certificate
Principal Balance of the Class M-9 Certificates (after taking into account the
payment of the Class M-9 Principal Distribution Amount on such Distribution
Date) and (xi) the Certificate Principal Balance of the Class M-10 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 96.10% and (ii) the Pool Balance as of the last day of the
related Collection Period and (B) the Pool Balance as of the last day of the
related Collection Period minus the product of 0.50% and the Pool Balance as of
the Cut-off Date.

                                      -17-
<PAGE>

                  "Class M-10 Realized Loss Amortization Amount": As to the
Class M-10 Certificates and as of any Distribution Date, the lesser of (x) the
aggregate Unpaid Realized Loss Amount for the Class M-10 Certificates as of such
Distribution Date and (y) the excess of (i) the Monthly Excess Cashflow Amount
over (ii) the sum of the amounts described in Section 4.02(b)(i) through (xxxi)
hereof, in each case for such Distribution Date.

                  "Class M and Class B Cap Amount": With respect to each
Distribution Date and each Class of Class M and the Class B Certificates with
unpaid Cap Carryover Amounts, the product of (i) the Class M and Class B Yield
Maintenance Agreement Payment for such Distribution Date and (ii) a fraction,
the numerator of which is the Certificate Principal Balance of such Class
immediately prior to such Distribution Date and the denominator of which is the
aggregate Certificate Principal Balance of the Class M and Class B Certificates
with unpaid Cap Carryover Amounts immediately prior to such Distribution Date.

                  "Class M and Class B Reserve Account": The trust account
created and maintained by the Securities Administrator pursuant to Section
3.04(g) which shall be entitled "Class M and Class B Reserve Account, Wells
Fargo Bank, N.A., as Securities Administrator, in trust for registered Holders
of the Class M and Class B Certificates of the ABFC 2005-WF1 Trust, ABFC
Asset-Backed Certificates, Series 2005-WF1" and which must be an Eligible
Account. Amounts on deposit in the Class M and Class B Reserve Account shall not
be invested. The Class M and Class B Reserve Account shall not be an asset of
any REMIC formed under this Agreement.

                  "Class M and Class B Yield Maintenance Agreement": The
interest rate cap agreement between the Securities Administrator, on behalf of
the Trust, and the Yield Maintenance Agreement Provider substantially in the
form attached hereto as Exhibit N-3. The Class M and Class B Yield Maintenance
Agreement shall not be an asset of any REMIC formed under this Agreement.

                  "Class M and Class B Yield Maintenance Agreement Payment": On
each Distribution Date through the Distribution Date in June 2008, the amount
equal to the product of (a) the excess of the lesser of (i) One-Month LIBOR and
(ii) the applicable ceiling rate over the applicable strike rate for such
Distribution Date, in each case as set forth on the schedule attached to the
confirmation to the Class M and Class B Yield Maintenance Agreement for such
Distribution Date, (b) the lesser of (y) the cap notional amount as set forth on
the schedule attached to the confirmation to the Class M and Class B Yield
Maintenance Agreement for such Distribution Date and (z) the aggregate principal
balance of the related Certificates immediately prior to such Distribution Date
and (c) a fraction, the numerator of which is the actual number of days elapsed
since the previous Distribution Date (or the Closing Date, in the case of the
first Distribution Date) to but excluding the current Distribution Date and the
denominator of which is 360.

                  "Class P Certificate": Any one of the Certificates with a "P"
designated on the face thereof substantially in the form annexed hereto as
Exhibit C-2, executed by the Securities Administrator on behalf of the Trust and
authenticated and delivered by the Certificate Registrar, representing the right
to distributions as set forth herein and therein and representing a regular
interest in REMIC 2 for purposes of the REMIC Provisions.

                  "Class R Certificate": The Class R Certificate executed by the
Securities Administrator on behalf of the Trust, and authenticated and delivered
by the Certificate Registrar, substantially in the form annexed hereto as
Exhibit C-3 and evidencing the ownership of the Residual Interest in each of
REMIC 1 and REMIC 2. The Class R Certificate represents the ownership of the
Class R-1 Interest and the Class R-2 Interest.

                  "Class R-1 Interest": The uncertificated residual interest in
REMIC 1 for purposes of the REMIC Provisions.

                                      -18-
<PAGE>

                  "Class R-2 Interest": The uncertificated residual interest in
REMIC 2 for purposes of the REMIC Provisions.

                  "Closing Date":  April 28, 2005.

                  "Code": The Internal Revenue Code of 1986, as it may be
amended from time to time.

                  "Collection Account": The account or accounts created and
maintained by the Servicer pursuant to Section 3.04, which shall be entitled
"Collection Account, Wells Fargo Bank, N.A., as Servicer for the Trust under the
Pooling and Servicing Agreement dated as of April 1, 2005, among Asset Backed
Funding Corporation, as Depositor, Wells Fargo Bank, N.A., as Servicer, Wells
Fargo Bank, N.A., as Securities Administrator and Deutsche Bank National Trust
Company, as Trustee, in trust for registered Holders of ABFC 2005-WF1 Trust,
ABFC Asset-Backed Certificates, Series 2005-WF1."

                  "Collection Period": With respect to any Distribution Date,
the period from the second day of the calendar month preceding the month in
which such Distribution Date occurs through the first day of the month in which
such Distribution Date occurs.

                  "Compensating Interest": As defined in Section 3.23 hereof.

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

                  "Corporate Trust Office": With respect to the Trustee, the
principal corporate trust office of the Trustee at which at any particular time
its corporate trust business in connection with this Agreement shall be
administered, which office at the date of the execution of this instrument is
located at 1761 East St. Andrew Place, Santa Ana, California 92705-4934,
Attention: Trust Administration-BA05W1 or at such other address as the Trustee
may designate from time to time by notice to the Certificateholders, the
Depositor, the Securities Administrator and the Servicer. With respect to the
Securities Administrator, the principal corporate trust office of the Securities
Administrator at which at any particular time its corporate trust business in
connection with this Agreement shall be administered, which office at the date
of the execution of this instrument is located at (i) for certificate transfer
purposes, Wells Fargo Center, Sixth Street and Marquette Avenue, Minneapolis,
Minnesota 55479-0113, Attention: Client Manager-ABFC, Series 2005-WF1 and (ii)
for all other purposes, 9062 Old Annapolis Road, Columbia, Maryland 21045,
Attention: Client Manager-ABFC, Series 2005-WF1 or at such other address as the
Securities Administrator may designate from time to time by notice to the
Certificateholders, the Depositor, the Trustee and the Servicer.

                  "Corresponding Classes": With respect to REMIC 1 and REMIC 2,
the following Classes shall be Corresponding Classes:

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

CORRESPONDING REMIC 1 CLASSES            CORRESPONDING REMIC 2 CLASSES
--------------------------------------------------------------------------------

LT1A1                                    Class A-1 Certificates
--------------------------------------------------------------------------------

LT1A2A                                   Class A-2A Certificates
--------------------------------------------------------------------------------

LT1A2B                                   Class A-2B Certificates
--------------------------------------------------------------------------------

LT1A2C                                   Class A-2C Certificates
--------------------------------------------------------------------------------

LT1M1                                    Class M-1 Certificates
--------------------------------------------------------------------------------

LT1M2                                    Class M-2 Certificates
--------------------------------------------------------------------------------

LT1M3                                    Class M-3 Certificates
--------------------------------------------------------------------------------

LT1M4                                    Class M-4 Certificates
--------------------------------------------------------------------------------

LT1M5                                    Class M-5 Certificates
--------------------------------------------------------------------------------

LT1M6                                    Class M-6 Certificates
--------------------------------------------------------------------------------

                                      -19-
<PAGE>
--------------------------------------------------------------------------------

LT1M7                                    Class M-7 Certificates
--------------------------------------------------------------------------------

LT1M8                                    Class M-8 Certificates
--------------------------------------------------------------------------------

LT1M9                                    Class M-9 Certificates
--------------------------------------------------------------------------------

LT1M10                                   Class M-10 Certificates
--------------------------------------------------------------------------------

LT1B1                                    Class B-1 Certificates
--------------------------------------------------------------------------------

LT1B2                                    Class B-2 Certificates
--------------------------------------------------------------------------------

LT1B3                                    Class B-3 Certificates
--------------------------------------------------------------------------------

LT1P                                     Class P Certificate
--------------------------------------------------------------------------------

                  "Credit Risk Management Agreement": The Credit Risk Management
Agreement between the Servicer and the Credit Risk Manager dated as of April 28,
2005.

                  "Credit Risk Manager": The Murrayhill Company, a Colorado
corporation.

                  "Credit Risk Manager Fee": The fee payable to the Credit Risk
Manager on each Distribution Date for its services as Credit Risk Manager, in an
amount equal to the product of (i) one-twelfth of the Credit Risk Manager Fee
Rate and (ii) the Pool Balance as of the opening of business on the first day of
the related Collection Period.

                  "Credit Risk Manager Fee Rate": With respect to any
Distribution Date, 0.015% per annum.

                  "Custodian":  Wells Fargo Bank, N.A.

                  "Custodial Agreement": The Custodial Agreement, dated April
28, 2005, by and among the Trustee, the Depositor, the Servicer and Wells Fargo
Bank, N.A., not individually, but solely as Custodian.

                  "Cut-off Date":  April 1, 2005.

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

                  "Cut-off Date Principal Balance": With respect to any Mortgage
Loan, the unpaid principal balance thereof as of the Cut-off Date after
application of funds received or advanced on or before such date (or as of the
applicable date of substitution with respect to an Eligible Substitute Mortgage
Loan).

                  "Data File": The electronic data file prepared by Wells Fargo
Bank, N.A. and delivered to the Seller, pursuant to the Originator Mortgage Loan
Purchase Agreement.

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

                  "Defective Mortgage Loan": A Mortgage Loan replaced or to be
replaced by one or more Eligible Substitute Mortgage Loans.

                                      -20-
<PAGE>

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

                  "Definitive Certificates": As defined in Section 5.02(c)
hereof.

                  "Delinquent": Any Mortgage Loan with respect to which the
Monthly Payment due on a Due Date is not made by the close of business on the
next scheduled Due Date for such Mortgage Loan.

                  "Depositor": Asset Backed Funding Corporation, a Delaware
corporation, or any successor in interest.

                  "Depository": The initial depository shall be The Depository
Trust Company, whose nominee is Cede & Co., or any other organization registered
as a "clearing agency" pursuant to Section 17A of the Exchange Act. The
Depository shall initially be the registered Holder of the Book-Entry
Certificates. The Depository shall at all times be a "clearing corporation" as
defined in Section 8-102(3) of the Uniform Commercial Code of the State of New
York.

                  "Depository Participant": A broker, dealer, bank or other
financial institution or other person for whom from time to time a Depository
effects book-entry transfers and pledges of securities deposited with the
Depository.

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

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

                  "Disqualified Organization": A "disqualified organization"
under Section 860E of the Code, which as of the Closing Date is any of: (i) the
United States, any state or political subdivision thereof, any possession of the
United States, any foreign government, any international organization, or any
agency or instrumentality of any of the foregoing, (ii) any organization (other
than a cooperative described in Section 521 of the Code) which is exempt from
the tax imposed by Chapter 1 of the Code unless such organization is subject to
the tax imposed by Section 511 of the Code, (iii) any organization described in
Section 1381(a)(2)(C) of the Code, or (iv) any other Person so designated by the
Securities Administrator based upon an Opinion of Counsel provided by nationally
recognized counsel to the Securities Administrator that the holding of an
ownership interest in the Class R Certificate by such Person may cause the Trust
Fund or any Person having an ownership interest in any Class of Certificates
(other than such Person) to incur liability for any federal tax imposed under
the Code that would not otherwise be imposed but for the transfer of an
ownership interest in the Class R Certificate to such Person. A corporation will
not be treated as an instrumentality of the United States or of any state or
political subdivision thereof if all of its activities are subject to tax and a
majority of its board of directors is not selected by a governmental unit. The
term "United States," "state" and "international organization" shall have the
meanings set forth in Section 7701 of the Code.

                  "Distribution Account": The trust account or accounts created
and maintained by the Securities Administrator pursuant to Section 3.04(b) which
shall be entitled "Distribution Account, Wells Fargo Bank, N.A., as Securities
Administrator, in trust for the registered Holders of ABFC 2005-WF1 Trust, ABFC
Asset-Backed Certificates, Series 2005-WF1" and which must be an Eligible
Account.

                                      -21-
<PAGE>

                  "Distribution Date": The 25th day of any calendar month, or if
such 25th day is not a Business Day, the Business Day immediately following such
25th day, commencing in May 2005.

                  "Distribution Date Statement": As defined in Section 4.06(a)
hereof.

                  "Document Transfer Event": The 60th day following the day on
which either (i) Wells Fargo Bank, N.A. is no longer the Servicer of the
Mortgage Loans or (ii) the senior, unsecured long-term debt rating of Wells
Fargo & Company is less than "BBB-" by Fitch.

                  "Due Date": With respect to each Mortgage Loan and any
Distribution Date, the day of the calendar month in which such Distribution Date
occurs on which the Monthly Payment for such Mortgage Loan was due, exclusive of
any grace period.

                  "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 short-term unsecured debt obligations of such holding
company) are rated "A-1+" by S&P and "F-1+" by Fitch (or comparable ratings if
S&P, and Fitch are not the Rating Agencies) by each of the Rating Agencies at
the time any amounts are held on deposit therein, (ii) an account or accounts
the deposits in which are fully insured by the FDIC (to the limits established
by such corporation), the uninsured deposits in which account are otherwise
secured such that, as evidenced by an opinion of counsel delivered to the
Trustee, to the Securities Administrator and to each Rating Agency, the
Certificateholders will have a claim with respect to the funds in such account
or a perfected first priority security interest against such collateral (which
shall be limited to eligible investments) securing such funds that is superior
to claims of any other depositors or creditors of the depository institution
with which such account is maintained, (iii) a trust account or accounts
maintained with the trust department of a federal or state chartered depository
institution, national banking association or trust company acting in its
fiduciary capacity or (iv) otherwise acceptable to each Rating Agency without
reduction or withdrawal of their then current ratings of the Certificates as
evidenced by a letter from each Rating Agency to the Trustee and the Securities
Administrator. Eligible Accounts may bear interest.

                  "Eligible Investments": Any one or more of the following
obligations or securities acquired at a purchase price of not greater than par,
regardless of whether issued or managed by the Depositor, the Servicer, the NIMS
Insurer, the Securities Administrator, the Trustee or any of their respective
Affiliates or for which an Affiliate of the Securities Administrator serves as
an advisor:

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

                  (ii) (A) demand and time deposits in, certificates of deposit
         of, bankers' acceptances issued by or federal funds sold by any
         depository institution or trust company (including the Securities
         Administrator or its agents acting in their respective commercial
         capacities) incorporated under the laws of the United States of America
         or any state thereof and subject to supervision and examination by
         federal and/or state authorities, so long as, at the time of such
         investment or contractual commitment providing for such investment,
         such depository institution or trust company or its ultimate parent has
         a short-term uninsured debt rating in one of the two highest available
         rating categories of S&P and the highest available rating category of
         Fitch and provided that each such investment has an original maturity
         of no more than 365 days and (B) any other demand or time deposit or
         deposit which is fully insured by the FDIC;

                                      -22-
<PAGE>

                  (iii) repurchase obligations with a term not to exceed 30 days
         with respect to any security described in clause (i) above and entered
         into with a depository institution or trust company (acting as
         principal) rated "A" or higher by S&P and "A+" or higher by Fitch,
         provided, however, that collateral transferred pursuant to such
         repurchase obligation must be of the type described in clause (i) above
         and must (A) be valued daily at current market prices plus accrued
         interest or (B) pursuant to such valuation, be equal, at all times, to
         105% of the cash transferred by the Securities Administrator in
         exchange for such collateral and (C) be delivered to the Securities
         Administrator or, if the Securities Administrator is supplying the
         collateral, an agent for the Securities Administrator , in such a
         manner as to accomplish perfection of a security interest in the
         collateral by possession of certificated securities;

                  (iv) securities bearing interest or sold at a discount that
         are issued by any corporation incorporated under the laws of the United
         States of America or any State thereof and that are rated by each
         Rating Agency in its highest long-term unsecured rating categories at
         the time of such investment or contractual commitment providing for
         such investment;

                  (v) commercial paper (including both non-interest-bearing
         discount obligations and interest-bearing obligations payable on demand
         or on a specified date not more than 30 days after the date of
         acquisition thereof) that is rated by each Rating Agency in its highest
         short-term unsecured debt rating available at the time of such
         investment;

                  (vi) units of money market funds registered under the
         Investment Company Act of 1940 (including funds managed or advised by
         the Securities Administrator or affiliates thereof) that, if rated by
         each Rating Agency, are rated in its highest rating category (if so
         rated by such Rating Agency); and

                  (vii) if previously confirmed in writing to the Securities
         Administrator and consented to by the NIMS Insurer, any other demand,
         money market or time deposit, or any other obligation, security or
         investment, as may be acceptable to the Rating Agencies in writing as
         an eligible investment of funds backing securities having ratings
         equivalent to its highest initial rating of the Senior Certificates;

provided, that no instrument described hereunder shall evidence either the right
to receive (a) only interest with respect to the obligations underlying such
instrument or (b) both principal and interest payments derived from obligations
underlying such instrument and the interest and principal payments with respect
to such instrument provide a yield to maturity at par greater than 120% of the
yield to maturity at par of the underlying obligations.

                  "Eligible Substitute Mortgage Loan": A mortgage loan
substituted for a Defective Mortgage Loan pursuant to the terms of this
Agreement which must, on the date of such substitution, (i) have an outstanding
Principal Balance, after application of all scheduled payments of principal and
interest due during or prior to the month of substitution, not in excess of the
outstanding principal balance of the Defective Mortgage Loan as of the Due Date
in the calendar month during which the substitution occurs, (ii) have a Mortgage
Interest Rate, with respect to a Fixed-Rate Mortgage Loan, not less than the
Mortgage Interest Rate of the Defective Mortgage Loan and not more than 2% in
excess of the Mortgage Interest Rate of such Defective Mortgage Loan, (iii) have
the same Due Date as the Defective Mortgage Loan, (iv) if an Adjustable-Rate
Mortgage Loan, have a Maximum Mortgage Interest Rate not less than the Maximum
Mortgage Interest Rate for the Defective Mortgage Loan, (v) if an
Adjustable-Rate Mortgage Loan, have a Minimum Mortgage Interest Rate not less
than the Minimum Mortgage Interest Rate of the Defective Mortgage Loan, (vi) if
an Adjustable-Rate Mortgage Loan, have a Gross Margin equal to or greater than
the Gross Margin of the Defective Mortgage Loan, (vii) if an Adjustable-Rate
Mortgage Loan, have the same Index as the Defective Mortgage Loan, (viii) if an

                                      -23-
<PAGE>

Adjustable-Rate Mortgage Loan, have a next Adjustment Date not more than two
months later than the next Adjustment Date on the Defective Mortgage Loan, (ix)
have a remaining term to maturity not greater than (and not more than one year
less than) that of the Defective Mortgage Loan, (x) be current as of the date of
substitution, (xi) have a Loan-to-Value Ratio as of the date of substitution
equal to or lower than the Loan-to-Value Ratio of the Defective Mortgage Loan as
of such date, (xii) have a risk grading at least equal to the risk grading
assigned on the Defective Mortgage Loan, (xiii) have been underwritten or
reunderwritten in accordance with the same underwriting criteria and guidelines
as the Defective Mortgage Loan, (xiv) have the same lien priority as the
Defective Mortgage Loan, (xv) have a Prepayment Charge at least equal in amount
and duration of that of the Defective Mortgage Loan, (xvi) not be a Balloon
Mortgage Loan if the related Mortgage Loan was not a Balloon Mortgage Loan (and
if such related Mortgage Loan is a Balloon Mortgage Loan, such Eligible
Substitute Mortgage Loan shall have an original maturity of not less than the
original maturity of such related Mortgage Loan), (xvii) be covered by an LPMI
Policy if the Defective Mortgage Loan was an LPMI Mortgage Loan, and (xviii)
conform to each representation and warranty set forth in Section 3.02 of the
Originator Mortgage Loan Purchase Agreement and Section 3.01 of the Mortgage
Loan Purchase Agreement applicable to the Defective Mortgage Loan. In the event
that one or more mortgage loans are substituted for one or more Defective
Mortgage Loans, the amounts described in clause (i) hereof shall be determined
on the basis of aggregate principal balance, the risk gradings described in
clause (xii) hereof shall be satisfied as to each such mortgage loan, the terms
described in clause (ix) hereof shall be determined on the basis of weighted
average remaining term to maturity, the Loan-to-Value Ratios described in clause
(xi) hereof shall be satisfied as to each such mortgage loan and, except to the
extent otherwise provided in this sentence, the representations and warranties
described in clause (xviii) hereof must be satisfied as to each Eligible
Substitute Mortgage Loan or in the aggregate, as the case may be. Any Defective
Mortgage Loan that is a Group 1 Mortgage Loan or Group 2 Mortgage Loan must be
replaced by an Eligible Substitute Mortgage Loan that will be a Group 1 or Group
2 Mortgage Loan, as applicable.

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

                  "ERISA-Restricted Certificates": Any of the Class B-1, Class
B-2, Class B-3, Class CE, Class P and Class R Certificates, and any Class of
Certificates that no longer satisfies the applicable ratings requirement of
Prohibited Transaction Exemption 2002-41, 67 Fed. Reg. 54487 (August 22, 2002).

                  "Escrow Account": The account or accounts created and
maintained pursuant to Section 3.06.

                  "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.

                  "Estate in Real Property": A fee simple estate in a parcel of
real property.

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

                  "Expense Fee Rate": The sum of (i) the Servicing Fee Rate and
(ii) the Credit Risk Manager Fee Rate.

                  "Extended Period":  As defined in Section 9.04(b).

                  "Extra Principal Distribution Amount": As of any Distribution
Date, the lesser of (x) the Monthly Excess Interest Amount for such Distribution
Date and (y) the Overcollateralization Deficiency for such Distribution Date.

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

                  "Fidelity Bond": Shall have the meaning assigned thereto in
Section 3.12.

                  "Final Recovery Determination": With respect to any defaulted
Mortgage Loan or any REO Property (other than a Mortgage Loan or REO Property
(i) purchased by the Originator or the Seller pursuant to or as contemplated by
Section 2.03, (ii) purchased by the Servicer pursuant to Section 3.16 or (iii)
purchased by the NIMS Insurer, the Majority Class CE Certificateholders or the
Servicer pursuant to Section 10.01), a determination made by the Servicer that
all Insurance Proceeds, Condemnation Proceeds, Liquidation Proceeds and other
payments or recoveries which the Servicer, in its reasonable good faith
judgment, expects to be finally recoverable in respect thereof have been so
recovered. The Servicer shall maintain records, prepared by a Servicing Officer,
of each Final Recovery Determination made thereby.

                  "Fitch": Fitch Ratings and its successors, and if such company
shall for any reason no longer perform the functions of a securities rating
agency, "Fitch" shall be deemed to refer to any other "nationally recognized
statistical rating organization" as set forth on the most current list of such
organizations released by the Securities and Exchange Commission.

                                      -24-
<PAGE>

                  "Fixed-Rate Mortgage Loan": A Mortgage Loan which has a
constant annual rate at which interest accrues in accordance with the provisions
of the related Mortgage Note.

                  "Foreclosure Price": The amount reasonably expected to be
received from the sale of the related Mortgaged Property net of any expenses
associated with foreclosure proceedings.

                  "Form 10-K":  As defined in Section 3.31(a) hereof.

                  "Grantor Trust": That portion of the Trust exclusive of REMIC
1 and REMIC 2 consisting of (a) any Servicer Prepayment Charge Payment Amounts
and the right of the Class P Certificateholders to receive such Servicer
Prepayment Charge Payment Amounts, (b) the right of the Class A, Class M and
Class B Certificates to receive Cap Carryover Amounts, (c) each Yield
Maintenance Agreement, the Reserve Accounts and the beneficial interest of the
Class CE Certificates with respect thereto and (d) the obligation of the Class
CE Certificates to pay Cap Carryover Amounts.

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

                  "Group 1 Cap": As of any Distribution Date and the Class A-1
Certificates, a per annum rate, adjusted by multiplying such rate by a fraction
equal to 30 over the actual number of days in the related Interest Accrual
Period, equal to the Weighted Average Net Mortgage Interest Rate for the Group 1
Mortgage Loans. For federal income tax purposes, the economic equivalent of such
rate shall be expressed as the weighted average of the REMIC 1 Remittance Rate
on REMIC 1 Regular Interest LT1GRP, weighted on the basis of the Uncertificated
Balance of such REMIC 1 Regular Interest.

                  "Group 1 Interest Remittance Amount": As of any Distribution
Date, the sum, without duplication, of (i) all interest due and collected or
advanced with respect to the related Collection Period on the Group 1 Mortgage
Loans received by the Servicer on or prior to the Determination Date for such
Distribution Date (less the Servicing Fee, amounts available for reimbursement
of Advances and Servicing Advances pursuant to Section 3.05 and expenses
reimbursable pursuant to Section 6.03 and Section 8.05), (ii) all Compensating
Interest paid by the Servicer on the related Distribution Date with respect to
such Mortgage Loans, (iii) the portion of any payment in connection with any
Principal Prepayment, substitution, Purchase Price, Termination Price, Insurance
Proceeds (including any portion received under the LPMI Policies) or Net
Liquidation Proceeds relating to interest with respect to such Mortgage Loans
received during the related Prepayment Period and (iv) the portion of any
Reimbursement Amount relating to interest with respect to such Mortgage Loans
received during the related Prepayment Period.

                  "Group 1 Maximum Net Rate": The weighted average of the Net
Maximum Mortgage Interest Rates of the Mortgage Loans in Loan Group 1, weighted
on the basis of the Principal Balances of the Group 1 Mortgage Loans as of the
first day of the related Collection Period.

                  "Group 1 Maximum Rate Cap": With respect to any Distribution
Date and for the Class A-1 Certificates, a per annum rate equal to (i) on or
prior to the Distribution Date in July 2008, the greater of (a) the Group 1
Maximum Net Rate (subject to adjustment based on the actual number of days
elapsed in the related Interest Accrual Period and (b) 10% and (ii) after the
Distribution Date in July 2008, the Group 1 Maximum Net Rate (subject to
adjustment based on the actual number of days elapsed in the related Interest
Accrual Period.

                  "Group 1 Mortgage Loan": Each Mortgage Loan listed on the
Mortgage Loan Schedule attached as Exhibit D-1 hereto. Each Group 1 Mortgage
Loan had, as of the Cut-off Date, a Principal Balance that conforms to Fannie
Mae guidelines.

                  "Group 1 Principal Percentage": With respect to any
Distribution Date and the Class A-1 Certificates, the percentage equivalent to a
fraction, the numerator of which is the Group 1 Principal Remittance Amount
allocable to the Group 1 Mortgage Loans for such Distribution Date and the
denominator of which is the Principal Remittance Amount allocable to the
Mortgage Loans for such Distribution Date.

                                      -25-
<PAGE>

                  "Group 1 Senior Principal Distribution Amount": With respect
to any Distribution Date (i) before the Stepdown Date or as to which a Trigger
Event is in effect, the Group 1 Principal Percentage of the Principal
Distribution Amount and (ii) on or after the Stepdown Date and as long as a
Trigger Event is not in effect, the excess of (a) the Certificate Principal
Balance of the Class A-1 Certificates immediately prior to such Distribution
Date over (b) the lesser of (1) the product of (y) approximately 65.00% and (z)
the aggregate Principal Balance of the Group 1 Mortgage Loans as of the last day
of the related Collection Period and (2) the amount by which the aggregate
Principal Balance of the Group 1 Mortgage Loans as of the last day of the
related Collection Period exceeds the product of (y) 0.50% and (z) the aggregate
Principal Balance of the Group 1 Mortgage Loans on the Cut-off Date.

                  "Group 2 Cap": As of any Distribution Date and the Class A-2A,
Class A-2B and Class A-2C Certificates, a per annum rate, adjusted by
multiplying such rate by a fraction equal to 30 over the actual number of days
in the related Interest Accrual Period, equal to the Weighted Average Net
Mortgage Interest Rate for the Group 2 Mortgage Loans. For federal income tax
purposes, the economic equivalent of such rate shall be expressed as the
weighted average of the REMIC 1 Remittance Rate on REMIC 1 Regular Interest
LT2GRP, weighted on the basis of the Uncertificated Balance of such REMIC 1
Regular Interest.

                  "Group 2 Interest Remittance Amount": As of any Distribution
Date, the sum, without duplication, of (i) all interest due and collected or
advanced with respect to the related Collection Period on the Group 2 Mortgage
Loans received by the Servicer on or prior to the Determination Date for such
Distribution Date (less the Servicing Fee, amounts available for reimbursement
of Advances and Servicing Advances pursuant to Section 3.05 and expenses
reimbursable pursuant to Section 6.03 and Section 8.05), (ii) all Compensating
Interest paid by the Servicer on the related Distribution Date with respect to
such Mortgage Loans, (iii) the portion of any payment in connection with any
Principal Prepayment, substitution, Purchase Price, Termination Price, Insurance
Proceeds (including any payments received under the LPMI Policies) or Net
Liquidation Proceeds relating to interest with respect to such Mortgage Loans
received during the related Prepayment Period and (iv) the portion of any
Reimbursement Amount relating to interest with respect to such Mortgage Loans
received during the related Prepayment Period.

                  "Group 2 Maximum Net Rate": The weighted average of the Net
Maximum Mortgage Interest Rates of the Mortgage Loans in Loan Group 2, weighted
on the basis of the Principal Balances of the Group 2 Mortgage Loans as of the
first day of the related Collection Period.

                  "Group 2 Maximum Rate Cap": With respect to any Distribution
Date and for the Class A-2A, Class A-2B and Class A-2C Certificates, a per annum
rate equal to (i) on or prior to the Distribution Date in June 2008, the greater
of (a) the Group 2 Maximum Net Rate (subject to adjustment based on the actual
number of days elapsed in the related Interest Accrual Period and (b) 10% and
(ii) after the Distribution Date in June 2008, the Group 2 Maximum Net Rate
(subject to adjustment based on the actual number of days elapsed in the related
Interest Accrual Period.

                  "Group 2 Mortgage Loan": Each Mortgage Loan listed on the
Mortgage Loan Schedule attached as Exhibit D-2 hereto. Each Group 2 Mortgage
Loan had, as of the Cut-off Date, a Principal Balance that may or may not
conform to Fannie Mae guidelines.

                  "Group 2 Principal Percentage": With respect to any
Distribution Date and the Class A-2A, Class A-2B and Class A-2C Certificates,
the percentage equivalent to a fraction, the numerator of which is the Group 2
Principal Remittance Amount allocable to the Group 2 Mortgage Loans for such
Distribution Date and the denominator of which is the Principal Remittance
Amount allocable to the Mortgage Loans for such Distribution Date.

                                      -26-
<PAGE>

                  "Group 2 Senior Principal Distribution Amount": With respect
to any Distribution Date (i) before the Stepdown Date or as to which a Trigger
Event is in effect, the Group 2 Principal Percentage of the Principal
Distribution Amount and (ii) on or after the Stepdown Date and as long as a
Trigger Event is not in effect, the excess of (a) the aggregate Certificate
Principal Balance of the Class A-2A, Class A-2B and Class A-2C Certificates
immediately prior to such Distribution Date over (b) the lesser of (1) the
product of (y) approximately 65.00% and (z) the aggregate Principal Balance of
the Group 2 Mortgage Loans as of the last day of the related Collection Period
and (2) the amount by which the aggregate Principal Balance of the Group 2
Mortgage Loans as of the last day of the related Collection Period exceeds the
product of (y) 0.50% and (z) the aggregate Principal Balance of the Group 2
Mortgage Loans on the Cut-off Date.

                  "Group Subordinate Amount": For any Distribution Date and (i)
the Group 1 Mortgage Loans, an amount equal to the excess of the aggregate
Principal Balance of the Group 1 Mortgage Loans as of the first day of the
related Collection Period over the Certificate Principal Balance of the Class
A-1 Certificates immediately prior to such Distribution Date and (ii) the Group
2 Mortgage Loans, an amount equal to the excess of the aggregate Principal
Balance of the Group 2 Mortgage Loans as of the first day of the related
Collection Period over the aggregate Certificate Principal Balance of the Class
A-2A, Class A-2B and Class A-2C Certificates immediately prior to such
Distribution Date.

                  "Indenture": An indenture relating to the issuance of net
interest margin notes secured by the Class CE Certificates and the Class P
Certificates, which may or may not be guaranteed by the NIMS Insurer.

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

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

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

                  "Initial Certificate Principal Balance": With respect to any
Certificate of a Class other than a Class CE or Class R Certificate, the amount
designated "Initial Certificate Principal Balance" on the face thereof.

                  "Initial Overcollateralization Amount":  $5,909,534.48

                                      -27-
<PAGE>

                  "Insurance Proceeds": Proceeds of any title policy, hazard
policy or other insurance policy covering a Mortgage Loan (including any
payments received under the LPMI Policies), 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 the Servicer would
follow in servicing mortgage loans held for its own account, subject to the
terms and conditions of the related Mortgage Note and Mortgage.

                  "Interest Accrual Period": With respect to any Distribution
Date and each Class of Class A, Class M and Class B Certificates, the period
from the preceding Distribution Date (or, in the case of the first Distribution
Date, the period from the Closing Date) to the day prior to the current
Distribution Date .

                  "Interest Carry Forward Amount": For any Class of Class A,
Class M and Class B Certificates and any Distribution Date, the sum of (a) the
excess, if any, of the Accrued Certificate Interest and any Interest Carry
Forward Amount for the prior Distribution Date, over the amount in respect of
interest actually distributed on such Class on such prior Distribution Date and
(b) interest on such excess at the applicable Certificate Interest Rate for the
actual number of days elapsed on the basis of a 360-day year since the prior
Distribution Date.

                  "Interest Percentage": With respect to any Class of Class A,
Class M and Class B Certificates and any Distribution Date, the ratio (expressed
as a decimal carried to six places) of the Accrued Certificate Interest for such
Class to the sum of the Accrued Certificate Interest for all Classes of Class A,
Class M and Class B Certificates, in each case with respect to such Distribution
Date, without regard to Prepayment Interest Shortfalls (not covered by
Compensating Interest payments) and Relief Act Interest Shortfalls.

                  "Interest Remittance Amount": As of any Distribution Date, the
sum of the Group 1 Interest Remittance Amount and the Group 2 Interest
Remittance Amount.

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

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

                  "LIBOR Determination Date": With respect to the Class A, Class
M and Class B Certificates, (i) for the first Distribution Date, the second
LIBOR Business Day preceding the Closing Date and (ii) for each subsequent
Distribution Date, the second LIBOR Business Day prior to the immediately
preceding Distribution Date.

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

                  "Liquidation Proceeds": The amount (other than amounts
received in respect of the rental of any REO Property prior to REO Disposition)
received by the Servicer in connection with (i) the taking of all or a part of a
Mortgaged Property by exercise of the power of eminent domain or condemnation or
(ii) the liquidation of a defaulted Mortgage Loan by means of a trustee's sale,
foreclosure sale or otherwise.

                  "Liquidation Report": The report with respect to a Liquidated
Mortgage Loan in such form as is agreed to by the Servicer and the Securities
Administrator listing (i) the sale price of the related Mortgaged Property or
amount of the REO Disposition, (ii) the amount of any Realized Loss (or gain)
with respect to such Liquidated Mortgage Loan, (iii) the expenses relating to
the liquidation of such Liquidated Mortgage Loan and (iv) such other information
as is agreed to by the Servicer and the Securities Administrator.

                  "Loan Group":  Either of Loan Group 1 or Loan Group 2.

                  "Loan Group 1":  The Group 1 Mortgage Loans.

                  "Loan Group 2":  The Group 2 Mortgage Loans.

                                      -28-
<PAGE>

                  "Loan-to-Value Ratio": For any Mortgage Loan, the fraction,
expressed as a percentage, the numerator of which is the Principal Balance of
the Mortgage Loan at origination the denominator of which is the Value of the
related Mortgaged Property.

                  "Losses":  As defined in Section 9.03.

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

                  "LPMI Mortgage Loan": A Mortgage Loan listed on the Mortgage
Loan Schedule as being covered by an LPMI Policy.

                  "LPMI Policy": With respect to each LPMI Mortgage Loan, the
primary mortgage insurance policy obtained by the Servicer with respect to such
Mortgage Loan from a primary mortgage insurer.

                  "Majority Certificateholders": The Holders of Certificates
evidencing at least 51% of the Voting Rights.

                  "Majority Class CE Certificateholders": The Holders of Class
CE Certificates evidencing at least a 51% Percentage Interest in the Class CE
Certificates.

                  "Marker Rate": With respect to the Class CE Certificates and
any Distribution Date, a per annum rate equal to two (2) times the weighted
average of the Uncertificated REMIC 1 Pass-Through Rates for REMIC 1 Regular
Interest LT1A1, REMIC 1 Regular Interest LT1A2A, REMIC 1 Regular Interest
LT1A2B, REMIC 1 Regular Interest LT1A2C, REMIC 1 Regular Interest LT1M1, REMIC 1
Regular Interest LT1M2, REMIC 1 Regular Interest LT1M3, REMIC 1 Regular Interest
LT1M4, REMIC 1 Regular Interest LT1M5, REMIC 1 Regular Interest LT1M6, REMIC 1
Regular Interest LT1M7, REMIC 1 Regular Interest LT1M8, REMIC 1 Regular Interest
LT1M9, REMIC 1 Regular Interest LT1M10, REMIC 1 Regular Interest LT1B1, REMIC 1
Regular Interest LT1B2, REMIC Regular Interest LT1B3 and REMIC 1 Regular
Interest LT1ZZ, (i) with the rate on each such REMIC 1 Regular Interest (other
than REMIC 1 Regular Interest LT1ZZ) subject to a cap equal to the Pass-Through
Rate of its Corresponding Class (taking into account in determining any such
Pass-through Rate the imposition of the Group 1 Cap, the Group 2 Cap or the Pool
Cap, as applicable, as described in footnotes (1) through (17) to the table in
the Preliminary Statement relating to the Certificates) for the purposes of this
calculation and (ii) with the rate on REMIC 1 Regular Interest LT1ZZ subject to
a cap of zero for the purpose of this calculation; provided, however, that for
this purpose, calculations of the Uncertificated REMIC 1 Pass-Through Rate and
the related caps with respect to each such REMIC 1 Regular Interest (other than
REMIC 1 Regular Interest LT1ZZ) shall be multiplied by a fraction, the numerator
of which is the actual number of days in the Interest Accrual Period and the
denominator of which is 30.

                  "Maximum LT1ZZ Uncertificated Accrued Interest Deferral
Amount": With respect to any Distribution Date, the excess of (a) accrued
interest at the Uncertificated REMIC 1 Pass-Through Rate applicable to REMIC 1
Regular Interest LT1ZZ for such Distribution Date on a balance equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1ZZ minus the
REMIC 1 Overcollateralized Amount, in each case for such Distribution Date, over
(b) Uncertificated Accrued Interest on REMIC 1 Regular Interest LT1A1, REMIC 1
Regular Interest LT1A2A, REMIC 1 Regular Interest LT1A2B, REMIC 1 Regular
Interest LT1A2C, REMIC 1 Regular Interest LT1M1, REMIC 1 Regular Interest LT1M2,
REMIC 1 Regular Interest LT1M3, REMIC 1 Regular Interest LT1M4, REMIC 1 Regular
Interest LT1M5, REMIC 1 Regular Interest LT1M6, REMIC 1 Regular Interest LT1M7,
REMIC 1 Regular Interest LT1M8, REMIC 1 Regular Interest LT1M9, REMIC 1 Regular
Interest LT1M10, REMIC 1 Regular Interest LT1B1, REMIC 1 Regular Interest LT1B2
and REMIC 1 Regular Interest LT1B3, each subject to a cap equal to the
Pass-Through Rate of the related Corresponding Class for the purpose of this
calculation (taking into account in determining any such Pass-Through Rate the
imposition of the Group 1 Cap, Group 2 Cap or the Pool Cap, as applicable, as
described in footnotes (1) through (17) to the table in the Preliminary
Statement relating to the Certificates); provided, however, that for this
purpose, calculations of the Uncertificated REMIC 1 Pass-Through Rate and the
related caps with respect to Uncertificated Accrued Interest on REMIC 1 Regular

                                      -29-
<PAGE>

Interest LT1A1, REMIC 1 Regular Interest LT1A2A, REMIC 1 Regular Interest
LT1A2B, REMIC 1 Regular Interest LT1A2C, REMIC 1 Regular Interest LT1M1, REMIC 1
Regular Interest LT1M2, REMIC 1 Regular Interest LT1M3, REMIC 1 Regular Interest
LT1M4, REMIC 1 Regular Interest LT1M5, REMIC 1 Regular Interest LT1M6, REMIC 1
Regular Interest LT1M7, REMIC 1 Regular Interest LT1M8, REMIC 1 Regular Interest
LT1M9, REMIC 1 Regular Interest LT1M10, REMIC 1 Regular Interest LT1B1, REMIC 1
Regular Interest LT1B2 and REMIC 1 Regular Interest LT1B3 shall be multiplied by
a fraction, the numerator of which is the actual number of days in the Interest
Accrual Period and the denominator of which is 30.

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

                  "MERS": Mortgage Electronic Registration Systems, Inc., a
Delaware corporation, or any successor to it.

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

                  "Monthly Excess Cashflow Amount": The sum of the Monthly
Excess Interest Amount, the Overcollateralization Release Amount and (without
duplication) any portion of the Principal Distribution Amount remaining after
principal distributions on the Class A, Class M and Class B Certificates.

                  "Monthly Excess Interest Amount": With respect to each
Distribution Date, the amount, if any, by which the Interest Remittance Amount
for such Distribution Date exceeds the aggregate amount distributed on such
Distribution Date pursuant to paragraphs (i) through (xviii) under Section 4.01.

                  "Monthly Form 8-K":  As defined in Section 3.31(a) hereof.

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

                  "Moody's": Moody's Investors Service, Inc. and its successors,
and if such company shall for any reason no longer perform the functions of a
securities rating agency, "Moody's" shall be deemed to refer to any other
"nationally recognized statistical rating organization" as set forth on the most
current list of such organizations released by the Securities and Exchange
Commission.

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

                  "Mortgage File": The mortgage documents listed in Section 2.01
pertaining to a particular Mortgage Loan and any additional documents required
to be added to the Mortgage File pursuant to this Agreement.

                                      -30-
<PAGE>

                  "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, which rate
(i) in the case of each Fixed-Rate Mortgage Loan shall remain constant at the
rate set forth in the Mortgage Loan Schedules as the Mortgage Interest Rate in
effect immediately following the Cut-off Date and (ii) in the case of each
Adjustable-Rate Mortgage Loan (A) as of any date of determination until the
first Adjustment Date following the Cut-off Date shall be the rate set forth in
the Mortgage Loan Schedules as the Mortgage Interest Rate in effect immediately
following the Cut-off Date and (B) as of any date of determination thereafter
shall be the rate as adjusted on the most recent Adjustment Date, to equal the
sum, rounded as provided in the Mortgage Note, of the Index, determined as set
forth in the related Mortgage Note, plus the related Gross Margin subject to the
limitations set forth in the related Mortgage Note. With respect to each
Mortgage Loan that becomes an REO Property, as of any date of determination, the
annual rate determined in accordance with the immediately preceding sentence as
of the date such Mortgage Loan became an REO Property.

                  "Mortgage Loan": Each mortgage loan transferred and assigned
to the Trustee pursuant to Section 2.01 or Section 2.03(d) as from time to time
held as a part of the Trust Fund, the Mortgage Loans so held being identified in
the Mortgage Loan Schedules.

                  "Mortgage Loan Purchase Agreement": The agreement between the
Seller and the Depositor, dated as of April 28, 2005, regarding the transfer of
the Mortgage Loans by the Seller to or at the direction of the Depositor.

                  "Mortgage Loan Schedule": As of any date with respect to the
Mortgage Loans, the lists of such Mortgage Loans included in the Trust Fund on
such date, separately identifying the Group 1 Mortgage Loans and the Group 2
Mortgage Loans, attached hereto as Exhibits D-1 and D-2, respectively. The
Mortgage Loan Schedules shall set forth the following information with respect
to each Mortgage Loan:

                  (1)   the Mortgage Loan identifying number;

                  (2)   the state and zip code of the Mortgaged Property;

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

                  (4)   the occupancy status of the Mortgaged Property at
                        origination;

                  (5)   the original months to maturity;

                  (6)   the date of origination;

                  (7)   the first payment date;

                  (8)   the stated maturity date;

                  (9)   the stated remaining months to maturity;

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

                  (11)  the Principal Balance of each Mortgage Loan as of the
                        Cut-off Date;

                  (12)  the Mortgage Interest Rate of the Mortgage Loan as of
                        the Cut-off Date;

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

                  (14)  the next payment due date;

                  (15)  the Loan-to-Value Ratio at origination and as of the
                        Cut-off Date;

                  (16)  a code indicating the loan performance status of the
                        Mortgage Loan as of the Cut-off Date;

                  (17)  a code indicating whether the Mortgage Loan is an
                        Adjustable-Rate Mortgage Loan or a Fixed-Rate Mortgage
                        Loan;

                  (18)  for each Adjustable-Rate Mortgage Loan, a code
                        indicating the Index that is associated with such
                        Mortgage Loan;

                                      -31-
<PAGE>

                  (19)  for each Adjustable-Rate Mortgage Loan, the Gross
                        Margin;

                  (20)  for each Adjustable-Rate Mortgage Loan, the Periodic
                        Rate Cap;

                  (21)  for each Adjustable-Rate Mortgage Loan, the Minimum
                        Mortgage Interest Rate;

                  (22)  for each Adjustable-Rate Mortgage Loan, the Maximum
                        Mortgage Interest Rate;

                  (23)  a code indicating whether the Mortgage Loan has a
                        Prepayment Charge and the term of the Prepayment Charge;

                  (24)  for each Adjustable-Rate Mortgage Loan, the first
                        Adjustment Date immediately following the Cut-off Date;

                  (25)  for each Adjustable-Rate Mortgage Loan, the rate
                        adjustment frequency;

                  (26)  for each Adjustable-Rate Mortgage Loan, the payment
                        adjustment frequency;

                  (27)  with respect to each Adjustable-Rate Mortgage Loan, the
                        applicable Index;

                  (28)  the purpose of the Mortgage Loan; and

                  (29)  a code indicating whether the Mortgage Loan is an LPMI
                        Mortgage Loan and the name of the related primary
                        mortgage insurer.

                  The Mortgage Loan Schedules shall set forth the following
information, as of the Cut-off Date, with respect to the Mortgage Loans in the
aggregate: (1) the number of Mortgage Loans; (2) the aggregate outstanding
principal balance of the Mortgage Loans; (3) the weighted average Mortgage
Interest Rate of the Mortgage Loans; and (4) the weighted average months to
maturity of the Mortgage Loans. The Mortgage Loan Schedules shall be amended
from time to time in accordance with the provisions of this Agreement and a copy
of such amended Mortgage Loan Schedules shall be furnished by the Servicer to
the NIMS Insurer. With respect to any Eligible Substitute Mortgage Loan, Cut-off
Date shall refer to the applicable date of substitution.

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

                  "Mortgage Pool": The pool of Mortgage Loans, identified on the
Mortgage Loan Schedules from time to time, and any REO Properties acquired in
respect thereof.

                  "Mortgaged Property": The underlying property securing a
Mortgage Loan, including any REO Property, consisting of an Estate in Real
Property improved by a Residential Dwelling.

                  "Mortgagor":  The obligor on a Mortgage Note.

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

                  "Net Maximum Mortgage Interest Rate": With respect to any
Adjustable-Rate Mortgage Loan, the applicable Maximum Mortgage Interest Rate
minus the Expense Fee Rate.

                  "Net Mortgage Interest Rate": With respect to any Mortgage
Loan, the Mortgage Interest Rate borne by such Mortgage Loan minus the Expense
Fee Rate.

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

                  "NIMS Insurer": Any insurer that is guaranteeing certain
payments under notes secured by collateral which includes all or a portion of
the Class CE, Class P and Class R Certificates.

                  "Nonrecoverable Advance": Any Advance or Servicing Advance
previously made or proposed to be made in respect of a Mortgage Loan that, in
the good faith business judgment of the Servicer, will not or, in the case of a
proposed Advance or Servicing Advance, would not be ultimately recoverable from
Late Collections on such Mortgage Loan as provided herein.

                                      -32-
<PAGE>

                  "Notional Amount": With respect to the Class CE Certificates,
a notional amount equal to the aggregate principal balance of the REMIC 1
Regular Interests other than REMIC 1 Regular Interest LT1P.

                  "Offered Certificates": The Class A-1, Class A-2A, Class A-2B,
Class A-2C, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6,
Class M-7, Class M-8, Class M-9 and Class M-10 Certificates.

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

                  "One-Month LIBOR": With respect to each Interest Accrual
Period, the rate determined by the Securities Administrator on the related LIBOR
Determination Date on the basis of the offered rate for one-month United States
dollar deposits, as such rate appears on the Telerate Page 3750, as of 11:00
a.m. (London time) on such LIBOR Determination Date. If no such quotations are
available on an LIBOR Determination Date, One-Month LIBOR for the related
Interest Accrual Period will be established by the Securities Administrator as
follows:

                  (i) If on such LIBOR Determination Date two or more Reference
         Banks provide such offered quotations, One-Month LIBOR for the related
         Interest Accrual Period shall be the arithmetic mean of such offered
         quotations (rounded upwards if necessary to the nearest whole multiple
         of 0.001%);

                  (ii) If on such LIBOR Determination Date fewer than two
         Reference Banks provide such offered quotations, One-Month LIBOR for
         the related Interest Accrual Period shall be the arithmetic mean of the
         rates quoted by one or more major banks in New York City, selected by
         the Securities Administrator after consultation with the Depositor and
         the NIMS Insurer, as of 11:00 A.M., New York City time, on such date
         for loans in U.S. Dollars to leading European banks for a period of one
         month in amounts approximately equal to the aggregate Certificate
         Principal Balance of the Class A, Class M and Class B Certificates; and

                  (iii) If no such quotations can be obtained, One-Month LIBOR
         for the related Interest Accrual Period shall be One-Month LIBOR for
         the prior Distribution Date.

                  The establishment of One-Month LIBOR on each LIBOR
Determination Date by the Securities Administrator and the Securities
Administrator's calculation of the rate of interest applicable to the Class A,
Class M and Class B Certificates for the related Interest Accrual Period shall
(in the absence of manifest error) be final and binding.

                  "Opinion of Counsel": A written opinion of counsel, who may,
without limitation, be a salaried counsel for the Depositor or the Servicer
except that any opinion of counsel relating to (a) the qualification of any
REMIC as a REMIC or (b) compliance with the REMIC Provisions must be an opinion
of Independent counsel.

                  "Optional Termination Date": The first Distribution Date on
which the NIMS Insurer, if there is a NIMS Insurer, the Majority Class CE
Certificateholders or, if such Majority Class CE Certificateholder is the Seller
or is an affiliate of the Seller, the Servicer, may opt to terminate the
Mortgage Pool pursuant to Section 10.01.

                                      -33-
<PAGE>

                  "Original Class Certificate Principal Balance": With respect
to each Class of Certificates, the Certificate Principal Balance thereof on the
Closing Date, as set forth opposite such Class in the Preliminary Statement,
except with respect to (i) the Class R Certificates, which have an Original
Class Certificate Principal Balance of zero and (ii) the Class CE Certificates,
which, solely for REMIC purposes, have an Original Class Certificate Principal
Balance equal to the Initial Overcollateralization Amount.

                  "Originator": Wells Fargo Bank, N.A. and its successors.

                  "Originator Mortgage Loan Purchase Agreement": The Master
Seller's Warranties and Servicing Agreement, dated as of March 1, 2005, by and
between the Seller, as purchaser, and Wells Fargo Bank, N.A., as seller.

                  "Overcollateralization Amount": As of any Distribution Date,
the excess, if any, of (x) the Pool Balance as of the last day of the related
Collection Period over (y) the aggregate Certificate Principal Balance of the
Class A, Class M, Class B and Class P Certificates (after taking into account
all distributions of principal on such Distribution Date and the increase of any
Certificate Principal Balance as a result of Subsequent Recoveries).

                  "Overcollateralization Deficiency": As of any Distribution
Date, the excess, if any, of (x) the Targeted Overcollateralization Amount for
such Distribution Date over (y) the Overcollateralization Amount for such
Distribution Date, calculated for this purpose after taking into account the
reduction on such Distribution Date of the Certificate Principal Balances of all
Classes of Class A, Class M, Class B and Class P Certificates resulting from the
distribution of the Principal Distribution Amount (but not the Extra Principal
Distribution Amount) on such Distribution Date, but prior to taking into account
any Applied Realized Loss Amounts on such Distribution Date.

                  "Overcollateralization Release Amount": With respect to any
Distribution Date after the Stepdown Date on which a Trigger Event is not in
effect, the lesser of (x) the Principal Remittance Amount for such Distribution
Date and (y) the excess, if any, of (i) the Overcollateralization Amount for
such Distribution Date, assuming that 100% of the Principal Remittance Amount is
applied as a principal payment on the Class A, Class M and Class B Certificates
on such Distribution Date, over (ii) the Targeted Overcollateralization Amount
for such Distribution Date. With respect to any Distribution Date on which a
Trigger Event is in effect, the Overcollateralization Release Amount will be
zero.

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

                  "Pass-Through Rate": Any of the Class A-1 Pass-Through Rate,
the Class A-2A Pass-Through Rate, the Class A-2B Pass-Through Rate, the Class
A-2C Pass-Through Rate, the Class M-1 Pass-Through Rate, the Class M-2
Pass-Through Rate, the Class M-3 Pass-Through Rate, the Class M-4 Pass-Through
Rate, the Class M-5 Pass-Through Rate, the Class M-6 Pass-Through Rate, the
Class M-7 Pass-Through Rate, the Class M-8 Pass-Through Rate, the Class M-9
Pass-Through Rate, the Class M-10 Pass-Through Rate, the Class B-1 Pass-Through
Rate, the Class B-2 Pass-Through Rate and the Class B-3 Pass-Through Rate; and
in the case of any REMIC 1 Regular Interest, the Uncertificated REMIC 1
Pass-Through Rate.

                                      -34-
<PAGE>

                  With respect to the Class CE Certificates and any Distribution
Date, a per annum rate equal to the percentage equivalent of a fraction, the
numerator of which is the sum of the amounts calculated pursuant to clauses (A)
through (T) below, and the denominator of which is the aggregate of the
Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1
Regular Interest LT1A1, REMIC 1 Regular Interest LT1A2A, REMIC 1 Regular
Interest LT1A2B, REMIC 1 Regular Interest LT1A2C, REMIC 1 Regular Interest
LT1M1, REMIC 1 Regular Interest LT1M2, REMIC 1 Regular Interest LT1M3, REMIC 1
Regular Interest LT1M4, REMIC 1 Regular Interest LT1M5, REMIC 1 Regular Interest
LT1M6, REMIC 1 Regular Interest LT1M7, REMIC 1 Regular Interest LT1M8, REMIC 1
Regular Interest LT1M9, REMIC 1 Regular Interest LT1M10, REMIC 1 Regular
Interest LT1B1, REMIC 1 Regular Interest LT1B2, REMIC 1 Regular Interest LT1B3
and REMIC 1 Regular Interest LT1ZZ. For purposes of calculating the Pass-Through
Rate for the Class CE Certificates, the numerator is equal to the sum of the
following components:

                  (A) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1AA minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1AA;

                  (B) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1A1 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1A1;

                  (C) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1A2A minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1A2A;

                  (D) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1A2B minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1A2B;

                  (E) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1A2C minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1A2C;

                  (F) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1M1 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M1;

                  (G) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1M2 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M2;

                  (H) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1M3 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M3;

                  (I) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1M4 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M4;

                  (J) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1M5 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M5;

                  (K) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1M6 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M6;

                                      -35-
<PAGE>

                  (L) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1M7 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M7;

                  (M) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1M8 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M8;

                  (N) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1M9 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M9;

                  (O) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1M10 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M10;

                  (P) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1B1 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1B1;

                  (Q) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1B2 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1B2;

                  (R) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1B3 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1B3;

                  (S) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1ZZ minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1ZZ; and

                  (T) 100% of the Interest on REMIC 1 Regular Interest LT1P.

                  "Paying Agent": Any paying agent appointed pursuant to Section
5.05.

                  "Percentage Interest": With respect to any Certificate (other
than a Class CE or Class R Certificate), a fraction, expressed as a percentage,
the numerator of which is the Initial Certificate Principal Balance, as the case
may be, represented by such Certificate and the denominator of which is the
Original Class Certificate Principal Balance of the related Class. With respect
to a Class CE Certificate, the portion of the Class evidenced thereby, expressed
as a percentage, as stated on the face of such Certificate; provided, however,
that the sum of all such percentages for each such Class totals 100%. With
respect to the Class R Certificate, 100%.

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

                  "Permitted Transferee": Any transferee of a Class R
Certificate other than a Disqualified Organization, a non-U.S. Person or a U.S.
Person with respect to whom income on the Class R Certificate is attributable to
a foreign permanent establishment or fixed base, within the meaning of an
applicable income tax treaty, of such Person or any other U.S. Person.

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

                  "Pool Balance": As of any date of determination, the aggregate
Principal Balance of the Mortgage Loans.

                  "Pool Cap": As of any Distribution Date and for the Class M
and Class B Certificates, a per annum rate, adjusted by multiplying such rate by
a fraction equal to 30 over the actual number of days in the related Interest
Accrual Period, equal to the weighted average of the Group 1 Cap and the Group 2
Cap, weighted on the basis of the related Group Subordinate Amount. For federal
income tax purposes, the economic equivalent of such rate shall be expressed as
the weighted average of the REMIC 1 Remittance Rate on (a) REMIC 1 Regular
Interest LT1SUB, subject to a cap and floor equal to the Weighted Average Net
Mortgage Interest Rates of the Group 1 Mortgage Loans and (b) REMIC 1 Regular
Interest LT2SUB, subject to a cap and floor equal to the Weighted Average Net
Mortgage Interest Rates of the Group 2 Mortgage Loans, weighted on the basis of
the Uncertificated Balance of each such REMIC 1 Regular Interest.

                                      -36-
<PAGE>

                  "Pool Maximum Net Rate": The weighted average of the Group 1
Maximum Net Rate and the Group 2 Maximum Net Rate, weighted on the basis of the
related Group Subordinate Amount.

                  "Pool Maximum Rate Cap": With respect to any Distribution Date
and for the Class M and Class B Certificates, a per annum rate (not less than
zero) equal to (i) on or prior to the Distribution Date in June 2008, the
greater of (a) the Pool Maximum Net Rate (subject to adjustments based on the
actual number of days elapsed in the related Interest Accrual Period) and (b)
10% and (ii) after the Distribution Date in June 2008, the Pool Maximum Net Rate
(subject to adjustments based on the actual number of days elapsed in the
related Interest Accrual Period).

                  "Prepayment Charge": With respect to any Prepayment Period,
any prepayment premium, penalty or charge collected by the Servicer from a
Mortgagor in connection with any voluntary Principal Prepayment in full pursuant
to the terms of the related Mortgage Note as from time to time held as a part of
the Trust Fund, the Prepayment Charges (other than any Servicer Prepayment
Charge Payment Amount) so held being identified in the Mortgage Loan Schedules
and determined in accordance with the guidelines for prepayment charge
provisions set forth in the Wells Fargo Prepayment Charge Matrix.

                  "Prepayment Interest Shortfall": With respect to any
Distribution Date, for each Mortgage Loan that was the subject of a Principal
Prepayment in full during the portion of the related Prepayment Period occurring
in the prior calendar month that was applied by the Servicer to reduce the
outstanding Principal Balance of such Mortgage Loan on a date preceding the
related Due Date, an amount equal to interest at the applicable Mortgage
Interest Rate (net of the Servicing Fee Rate) on the amount of such Principal
Prepayment for the number of days commencing on the date on which the Principal
Prepayment is applied and ending on the last day of the related Prepayment
Period.

                  "Prepayment Period": With respect to any Distribution Date,
the calendar month preceding the calendar month in which such Distribution Date
occurs.

                  "Principal Balance": As to any Mortgage Loan and any day,
other than a Liquidated Mortgage Loan, the related Cut-off Date Principal
Balance, minus the sum of (i) all collections and other amounts credited against
the principal balance of any such Mortgage Loan, (ii) the principal portion of
Advances, (iii) any Deficient Valuation and (iv) any principal reduction
resulting from a Servicer Modification. For purposes of this definition, a
Liquidated Mortgage Loan shall be deemed to have a Principal Balance equal to
the Principal Balance of the related Mortgage Loan as of the final recovery of
related Liquidation Proceeds and a Principal Balance of zero thereafter. As to
any REO Property and any day, the Principal Balance of the related Mortgage Loan
immediately prior to such Mortgage Loan becoming REO Property minus any REO
Principal Amortization received with respect thereto on or prior to such day.

                  "Principal Distribution Amount": As to any Distribution Date,
the sum of the Group 1 Principal Distribution Amount and the Group 2 Principal
Distribution Amount.

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

                  "Principal Remittance Amount": With respect to any
Distribution Date, to the extent of funds available therefor, the amount equal
to the sum (less amounts available for reimbursement of Advances and Servicing
Advances pursuant to Section 3.05 and expenses reimbursable pursuant to Section
6.03) of: (i) each payment of principal on a Mortgage Loan due during the
related Collection Period and received by the Servicer on or prior to the
related Determination Date, and any Advances with respect thereto, (ii) all full
and partial Principal Prepayments of Mortgage Loans received by the Servicer
during the related Prepayment Period, (iii) Insurance Proceeds, Subsequent
Recoveries and Net Liquidation Proceeds allocable to principal actually
collected by the Servicer during the related Prepayment Period with respect to
the Mortgage Loans, (iv) the portion of the Purchase Price allocable to
principal of all repurchased Mortgage Loans with respect to such Prepayment
Period, (v) any Substitution Adjustment Amounts received during the related
Prepayment Period with respect to Mortgage Loans and (vi) on the Distribution
Date on which the Trust is to be terminated in accordance with Section 10.01
hereof, that portion of the Termination Price in respect of principal.

                                      -37-
<PAGE>

                  "Private Certificates": Any of the Class B, Class CE, Class P
and Class R Certificates.

                  "Private Placement Memorandum": That certain Private Placement
Memorandum dated April 28, 2005 relating to the private offering of the Class B
Certificates.

                  "Prospectus Supplement": That certain Prospectus Supplement
dated April 26, 2005 relating to the public offering of the Offered
Certificates.

                  "Purchase Price": With respect to any Mortgage Loan or REO
Property to be purchased pursuant to or as contemplated by Section 2.03 or
10.01, an amount equal to the sum of (i) 100% of the Principal Balance thereof
as of the date of purchase (or such other price as provided in Section 10.01),
(ii) in the case of (x) a Mortgage Loan, accrued interest on such Principal
Balance at the applicable Mortgage Interest Rate in effect from time to time
from the Due Date as to which interest was last covered by a payment by the
Mortgagor or an Advance by the Servicer, which payment or Advance had as of the
date of purchase been distributed pursuant to Section 4.01, through the end of
the calendar month in which the purchase is to be effected, and (y) an REO
Property, accrued interest at the applicable Mortgage Interest Rate on its fair
market value, determined in good faith by the Servicer, (iii) any unreimbursed
Servicing Advances and Advances and any unpaid Servicing Fees allocable to such
Mortgage Loan or REO Property, (iv) any amounts previously withdrawn from the
Collection Account in respect of such Mortgage Loan or REO Property pursuant to
Section 3.13, (v) in the case of a Mortgage Loan required to be purchased
pursuant to Section 2.03, expenses reasonably incurred or to be incurred by the
Servicer or the Trustee in respect of the breach or defect giving rise to the
purchase obligation, and (vi) any costs and damages incurred by the Trust or the
Trustee in connection with any violation by such Mortgage Loan of any predatory
or abusive lending law.

                  "Rating Agency or Rating Agencies": Fitch, Moody's and S&P, or
their respective successors. If such agencies or their successors are no longer
in existence, "Rating Agencies" shall be such nationally recognized statistical
rating organizations as set forth on the most current list of such organizations
released by the Securities and Exchange Commission and designated by the
Depositor, notice of which designation shall be given to the Trustee, the
Securities Administrator and the Servicer.

                  "Realized Loss": With respect to a Liquidated Mortgage Loan,
the amount by which the remaining unpaid principal balance of the Mortgage Loan
exceeds the amount of Net Liquidation Proceeds applied to the principal balance
of the related Mortgage Loan. With respect to any Mortgage Loan, a Deficient
Valuation or a reduction in the Principal Balance thereof resulting from a
Servicer Modification.

                  "Realized Loss Amortization Amount": Any of the Class M-1
Realized Loss Amortization Amount, the Class M-2 Realized Loss Amortization
Amount, the Class M-3 Realized Loss Amortization Amount, the Class M-4 Realized
Loss Amortization Amount, the Class M-5 Realized Loss Amortization Amount, the
Class M-6 Realized Loss Amortization Amount, the Class M-7 Realized Loss
Amortization Amount, the Class M-8 Realized Loss Amortization Amount, the Class
M-9 Realized Loss Amortization Amount, the Class M-10 Realized Loss Amortization
Amount, the Class B-1 Realized Loss Amortization Amount, the Class B-2 Realized
Loss Amortization Amount and the Class B-3 Realized Loss Amortization Amount.

                  "Record Date": With respect to all of the Certificates (other
than the Class CE, Class P and Class R Certificates), the Business Day
immediately preceding such Distribution Date; provided, however, that if any
such Certificate becomes a Definitive Certificate, the Record Date for such
Certificate shall be the last Business Day of the month immediately preceding
the month in which the related Distribution Date occurs. With respect to the
Class CE, Class P and Class R Certificates, the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

                                      -38-
<PAGE>

                  "Reference Banks": Those banks (i) with an established place
of business in London, England, (ii) not controlling, under the control of or
under common control with the Depositor or the Securities Administrator, (iii)
whose quotations appear on the Telerate Page 3750 on the relevant LIBOR
Determination Date and (iv) which have been designated as such by the Securities
Administrator; provided, however, that if fewer than two of such banks provide a
One-Month LIBOR rate, then any leading banks selected by the Securities
Administrator which are engaged in transactions in United States dollar deposits
in the international Eurocurrency market.

                  "Regular Certificate": Any of the Class A Certificates, Class
M Certificates, Class B Certificates, Class CE Certificates and the Class P
Certificates.

                  "Reimbursement Amount": With respect to any Mortgage Loan, any
costs or damages incurred by the Trust in connection with a breach of (i) the
Originator's representations with respect to predatory and abusive lending laws
set forth in Sections 3.02(i), 3.02(rr) and 3.02(eee) of the Originator Mortgage
Loan Purchase Agreement and (ii) the Seller's representations set forth in
Sections 3.01(i), 3.01(ii) and 3.01(iii) of the Mortgage Loan Purchase
Agreement.

                  "Related Documents": With respect to any Mortgage Loan, the
related Mortgage Notes, Mortgages and other related documents.

                  "Relief Act": The Servicemembers Civil Relief Act, as it may
be amended from time to time.

                  "Relief Act Interest Shortfall": With respect to any
Distribution Date, for any Mortgage Loan with respect to which there has been a
reduction in the amount of interest collectible thereon for the most recently
ended Collection Period as a result of the application of the Relief Act or
similar state or local laws, the amount by which (i) interest collectible on
such Mortgage Loan during such Collection Period is less than (ii) one month's
interest on the Principal Balance of such Mortgage Loan at the Mortgage Interest
Rate for such Mortgage Loan before giving effect to the application of the
Relief Act or similar state or local laws.

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

                  "REMIC 1 Interest Loss Allocation Amount": With respect to any
Distribution Date, an amount equal to (a) the product of (i) 50% of the sum of
the aggregate Principal Balance of the Mortgage Loans and related REO Properties
then outstanding and (ii) the Uncertificated REMIC 1 Pass-Through Rate for REMIC
1 Regular Interest LT1AA minus the Marker Rate, divided by (b) 12.

                  "REMIC 1 Marker Allocation Percentage": 50% of any amount
payable from or loss attributable to the Mortgage Loans, which shall be
allocated to REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1A1,
REMIC 1 Regular Interest LT1A2A, REMIC 1 Regular Interest LT1A2B, REMIC 1
Regular Interest LT1A2C, REMIC 1 Regular Interest LT1M1, REMIC 1 Regular
Interest LT1M2, REMIC 1 Regular Interest LT1M3, REMIC 1 Regular Interest LT1M4,
REMIC 1 Regular Interest LT1M5, REMIC 1 Regular Interest LT1M6, REMIC 1 Regular
Interest LT1M7, REMIC 1 Regular Interest LT1M8, REMIC 1 Regular Interest LT1M9,
REMIC 1 Regular Interest LT1M10, REMIC 1 Regular Interest LT1B1, REMIC 1 Regular
Interest LT1B2, REMIC 1 Regular Interest LT1B3 and REMIC 1 Regular Interest
LT1ZZ.

                  "REMIC 1 Overcollateralization Target Amount": 0.50% of the
Targeted Overcollateralization Amount.

                  "REMIC 1 Overcollateralized Amount": With respect to any date
of determination, (i) 0.50% of the aggregate Uncertificated Principal Balances
of the REMIC 1 Regular Interests minus (ii) the aggregate of the Uncertificated
Principal Balances of REMIC 1 Regular Interest LT1A1, REMIC 1 Regular Interest
LT1A2A, REMIC 1 Regular Interest LT1A2B, REMIC 1 Regular Interest LT1A2C, REMIC
1 Regular Interest LT1M1, REMIC 1 Regular Interest LT1M2, REMIC 1 Regular
Interest LT1M3, REMIC 1 Regular Interest LT1M4, REMIC 1 Regular Interest LT1M5,
REMIC 1 Regular Interest LT1M6, REMIC 1 Regular Interest LT1M7, REMIC 1 Regular
Interest LT1M8, REMIC 1 Regular Interest LT1M9, REMIC 1 Regular Interest LT1M10,
REMIC 1 Regular Interest LT1B1, REMIC 1 Regular Interest LT1B2, REMIC 1 Regular
Interest LT1B3 and REMIC 1 Regular Interest LT1P, in each case as of such date
of determination.

                                      -39-
<PAGE>

                  "REMIC 1 Principal Loss Allocation Amount": With respect to
any Distribution Date, an amount equal to (a) the product of (i) 50% of the
aggregate Principal Balance of the Mortgage Loans and related REO Properties
then outstanding and (ii) 1 minus a fraction, the numerator of which is two
times the aggregate of the Uncertificated Principal Balances of REMIC 1 Regular
Interest LT1A1, REMIC 1 Regular Interest LT1A2A, REMIC 1 Regular Interest
LT1A2B, REMIC 1 Regular Interest LT1A2C, REMIC 1 Regular Interest LT1M1, REMIC 1
Regular Interest LT1M2, REMIC 1 Regular Interest LT1M3, REMIC 1 Regular Interest
LT1M4, REMIC 1 Regular Interest LT1M5, REMIC 1 Regular Interest LT1M6, REMIC 1
Regular Interest LT1M7, REMIC 1 Regular Interest LT1M8, REMIC 1 Regular Interest
LT1M9, REMIC 1 Regular Interest LT1M10, REMIC 1 Regular Interest LT1B1, REMIC 1
Regular Interest LT1B2 and REMIC 1 Regular Interest LT1B3 and the denominator of
which is the aggregate of the Uncertificated Principal Balances of REMIC 1
Regular Interest LT1A1, REMIC 1 Regular Interest LT1A2A, REMIC 1 Regular
Interest LT1A2B, REMIC 1 Regular Interest LT1A2C, REMIC 1 Regular Interest
LT1M1, REMIC 1 Regular Interest LT1M2, REMIC 1 Regular Interest LT1M3, REMIC 1
Regular Interest LT1M4, REMIC 1 Regular Interest LT1M5, REMIC 1 Regular Interest
LT1M6, REMIC 1 Regular Interest LT1M7, REMIC 1 Regular Interest LT1M8, REMIC 1
Regular Interest LT1M9, REMIC 1 Regular Interest LT1M10, REMIC 1 Regular
Interest LT1B1, REMIC 1 Regular Interest LT1B2, REMIC 1 Regular Interest LT1B3
and REMIC 1 Regular Interest LT1ZZ.

                  "REMIC 1 Regular Interest LT1A1": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT1A1 shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interest LT1A2A": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT1A2A shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interest LT1A2B": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT1A2B shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interest LT1A2C": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT12C shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interest LT1AA": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT1AA shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                                      -40-
<PAGE>

                  "REMIC 1 Regular Interest LT1M1": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT1M1 shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interest LT1M2": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT1M2 shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interest LT1M3": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT1M3 shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interest LT1M4": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT1M4 shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interest LT1M5": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT1M5 shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interest LT1M6": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT1M6 shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interest LT1M7": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT1M7 shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interest LT1M8": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT1M8 shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interest LT1M9": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT1M9 shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                                      -41-
<PAGE>

                  "REMIC 1 Regular Interest LT1M10": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT1M10 shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interest LT1B1": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT1B1 shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interest LT1B2": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT1B2 shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interest LT1B3": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT1B3 shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interest LT1SUB": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT1SUB shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interest LT1GRP": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT1GRP shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interest LT2SUB": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT2SUB shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                                      -42-
<PAGE>

                  "REMIC 1 Regular Interest LT2GRP": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT2GRP shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interest LT1P": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT1P shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interest LTXX": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LTXX shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interest LT1ZZ": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a regular interest in REMIC 1 for purposes of the REMIC
Provisions. REMIC 1 Regular Interest LT1ZZ shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 1 Regular Interests": REMIC 1 Regular Interest LT1AA,
REMIC 1 Regular Interest LT1A1, REMIC 1 Regular Interest LT1A2A, REMIC 1 Regular
Interest LT1A2B, REMIC 1 Regular Interest LT1A2C, REMIC 1 Regular Interest
LT1M1, REMIC 1 Regular Interest LT1M2, REMIC 1 Regular Interest LT1M3, REMIC 1
Regular Interest LT1M4, REMIC 1 Regular Interest LT1M5, REMIC 1 Regular Interest
LT1M6, REMIC 1 Regular Interest LT1M7, REMIC 1 Regular Interest LT1M8, REMIC 1
Regular Interest LT1M9, REMIC 1 Regular Interest LT1M10, REMIC 1 Regular
Interest LT1B1, REMIC 1 Regular Interest LT1B2, REMIC 1 Regular Interest LT1B3,
REMIC 1 Regular Interest LT1SUB, REMIC 1 Regular Interest LT1GRP, REMIC 1
Regular Interest LT2SUB, REMIC 1 Regular Interest LT2GRP, REMIC 1 Regular
Interest LTXX, REMIC 1 Regular Interest LT1P and REMIC 1 Regular Interest LT1ZZ.

                  "REMIC 1 Sub WAC Allocation Percentage": 50% of any amount
payable from or loss attributable to the Mortgage Loans, which shall be
allocated to REMIC 1 Regular Interest LT1SUB, REMIC 1 Regular Interest LT1GRP,
REMIC 1 Regular Interest LT2SUB, REMIC 1 Regular Interest LT2GRP and REMIC 1
Regular Interest LTXX.

                  "REMIC 1 Subordinated Balance Ratio": The ratio among the
Uncertificated Principal Balances of each REMIC 1 Regular Interest ending with
the designation "SUB," equal to the ratio among, with respect to each such REMIC
1 Regular Interest, the excess of (x) the aggregate Principal Balance of the
Mortgage Loans in the related Loan Group over (y) the current Certificate
Principal Balance of the Class A Certificates in the related Loan Group.

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

                  "Remittance Report": A report prepared by the Servicer and
delivered to the Securities Administrator and the NIMS Insurer pursuant to
Section 4.07, containing the information attached hereto as Exhibit M.

                                      -43-
<PAGE>

                  "Rents from Real Property": With respect to any REO Property,
gross income of the character described in Section 856(d) of the Code.

                  "REO Disposition": The sale or other disposition of an REO
Property on behalf of the Trust.

                  "REO Imputed Interest": As to any REO Property, for any
Collection Period, an amount equivalent to interest (at the Net Mortgage
Interest Rate that would have been applicable to the related Mortgage Loan had
it been outstanding) for such Collection Period on the unpaid Principal Balance
of the Mortgage Loan as of the date of acquisition.

                  "REO Principal Amortization": With respect to any REO
Property, for any calendar month, the aggregate of all amounts received in
respect of such REO Property during such calendar month, whether in the form of
rental income, sale proceeds (including, without limitation, that portion of the
Termination Price paid in connection with a purchase of all of the Mortgage
Loans and REO Properties pursuant to Section 10.01 that is allocable to such REO
Property) or otherwise, net of any portion of such amounts (i) payable pursuant
to Section 3.13 in respect of the proper operation, management and maintenance
of such REO Property or (ii) payable or reimbursable to the Servicer pursuant to
Section 3.13 for unpaid Servicing Fees in respect of the related Mortgage Loan
and unreimbursed Servicing Advances and Advances in respect of such REO Property
or the related Mortgage Loan.

                  "REO Property": A Mortgaged Property acquired by the Servicer
on behalf of the Trust through foreclosure or deed-in-lieu of foreclosure, as
described in Section 3.13.

                  "Request for Release": A release signed by a Servicing
Officer, in the form of Exhibit E attached hereto.

                  "Reserve Account": Any of (i) the Class A-1 Reserve Account,
(ii) the Class A-2A, Class A-2B and Class A-2C Reserve Account or (iii) the
Class M and Class B Reserve Account.

                  "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, (iv) a manufactured
home, or (v) a one-family dwelling in a planned unit development or a townhouse,
none of which is a co-operative or mobile home.

                  "Residual Interest": The sole Class of "residual interests" in
each REMIC within the meaning of Section 860G(a)(2) of the Code.

                  "Responsible Officer": When used with respect to the Trustee
or the Securities Administrator, any officer assigned to the Corporate Trust
Office of the Trustee or the Corporate Trust Office of the Securities
Administrator, as applicable (or any successor thereto), including any Vice
President, Assistant Vice President, Trust Officer, any Assistant Secretary, any
trust officer or any other officer of the Trustee or the Securities
Administrator customarily performing functions similar to those performed by any
of the above designated officers and in each case having direct responsibility
for the administration of this Agreement.

                  "Retained Mortgage File": As defined in the Originator
Mortgage Loan Purchase Agreement.

                  "S&P": Standard & Poor's, a division of The McGraw-Hill
Companies, Inc., and its successors, and if such company shall for any reason no
longer perform the functions of a securities rating agency, "S&P" shall be
deemed to refer to any other "nationally recognized statistical rating
organization" as set forth on the most current list of such organizations
released by the Securities and Exchange Commission.

                  "Seller": Bank of America, National Association, or its
successor in interest, in its capacity as seller under the Mortgage Loan
Purchase Agreement.

                  "Securities Administrator": Wells Fargo Bank, N.A., and its
successors-in-interest and, if a successor securities administrator is appointed
hereunder, such successor, as securities administrator.

                                      -44-
<PAGE>

                  "Senior Certificates": The Class A-1, Class A-2A, Class A-2B
and Class A-2C Certificates.

                  "Senior Enhancement Percentage": For any Distribution Date,
the percentage obtained by dividing (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class M and Class B Certificates and (ii) the
Overcollateralization Amount, in each case before taking into account payments
of principal on the Mortgage Loans and the distribution of the Principal
Distribution Amount on such Distribution Date by (y) the Pool Balance as of the
last day of the related Collection Period.

                  "Senior Principal Distribution Amount": For any Distribution
Date on or after the Stepdown Date and as long as a Trigger Event is not in
effect, the sum of the Group 1 Senior Principal Distribution Amount and the
Group 2 Senior Principal Distribution Amount.

                  "Senior Specified Enhancement Percentage": On any date of
determination thereof, 35.00%.

                  "Servicer": Wells Fargo Bank, N.A., a national banking
association, or any successor servicer appointed as herein provided, in its
capacity as Servicer hereunder.

                  "Servicer Event of Termination": One or more of the events
described in Section 7.01.

                  "Servicer Modification": A modification to the terms of a
Mortgage Loan, in accordance with the terms of Section 3.01, as to which the
Mortgagor is in default or as to which, in the judgment of the Servicer, default
is reasonably foreseeable.

                  "Servicer Prepayment Charge Payment Amount": The amount
payable by the Servicer in respect of any waived Prepayment Charges pursuant to
Section 3.01, which amount shall be equal to the difference between the amount
of Prepayment Charge due by a Mortgagor before any waiver and the actual amount
of the Prepayment Charge that was paid by the Mortgagor, which amounts shall not
be a part of any REMIC formed hereunder.

                  "Servicer Remittance Date": With respect to any Distribution
Date, the 18th day of the calendar month in which such Distribution Date occurs
or, if such 18th day is not a Business Day, the Business Day immediately
following such 18th day.

                  "Servicing Advances": All customary, reasonable and necessary
"out of pocket" costs and expenses incurred by the Servicer (including
reasonable attorneys' fees and disbursements) in the performance of its
servicing obligations, including, but not limited to, the cost of (i) the
preservation, restoration, inspection and protection of the Mortgaged Property,
(ii) any enforcement or judicial proceedings, including foreclosures, (iii) the
management and liquidation of the REO Property and (iv) compliance with the
obligations under Section 3.08.

                  "Servicing Fee": With respect to each Mortgage Loan (including
each REO Property) and for any calendar month, an amount equal to one month's
interest (or in the event of any payment of interest which accompanies a
Principal Prepayment in full made by the Mortgagor during such calendar month,
interest for the number of days covered by such payment of interest) at the
Servicing Fee Rate on the same principal amount on which interest on such
Mortgage Loan accrues for such calendar month. The Servicing Fee shall be
payable monthly and shall be prorated on a per diem basis for any portion of a
month during which such Mortgage Loan is serviced hereunder.

                  "Servicing Fee Rate": With respect to each Mortgage Loan,
0.50% per annum.

                  "Servicing Officer": Any representative or officer of the
Servicer involved in, or responsible for, the administration and servicing of
Mortgage Loans, whose name and specimen signature appear on a list of servicing
officers furnished by the Servicer to the Trustee and the Depositor on the
Closing Date, as such list may from time to time be amended.

                  "Servicing Standard": The standards set forth in Section 3.01.

                                      -45-
<PAGE>

                  "Similar Law": As defined in Section 5.02(d) hereof.

                  "Startup Day": As defined in Section 9.01(b) hereof.

                  "Stayed Funds": Any payment required to be made under the
terms of the Certificates and this Agreement but which is not remitted by the
Servicer because the Servicer is the subject of a proceeding under the
Bankruptcy Code and the making of such remittance is prohibited by Section 362
of the Bankruptcy Code.

                  "Stepdown Date": The earlier to occur of (i) the Distribution
Date on which the aggregate Certificate Principal Balance of the Class A
Certificates is reduced to zero and (ii) the later to occur of (x) the
Distribution Date in May 2008 and (y) the first Distribution Date on which the
Senior Enhancement Percentage is greater than or equal to the Senior Specified
Enhancement Percentage.

                  "Subordinated Certificates": The Class M-1, Class M-2, Class
M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9, Class
M-10, Class B-1, Class B-2, Class B-3, Class CE and Class R Certificates.

                  "Subordination Depletion Date": The Distribution Date on which
the aggregate Certificate Principal Balance of the Class M and Class B
Certificates is reduced to zero.

                  "Subsequent Recovery": Any amount (net of reimbursable
expenses) received on a Mortgage Loan subsequent to such Mortgage Loan being
determined to be a Liquidated Mortgage Loan that resulted in a Realized Loss in
a prior month.

                  "Substitution Adjustment": As defined in Section 2.03(c)
hereof.

                  "Targeted Overcollateralization Amount": As of any
Distribution Date, (x) prior to the Stepdown Date, 0.50% of the Pool Balance as
of the Cut-off Date and (y) on and after the Stepdown Date, (i) if a Trigger
Event has not occurred, the greater of (A) 1.00% of the Pool Balance as of the
last day of the related Collection Period and (B) 0.50% of the Pool Balance as
of the Cut-off Date and (ii) if a Trigger Event has occurred, the Targeted
Overcollateralization Amount for the immediately preceding Distribution Date.

                  "Tax Matters Person": The tax matters person appointed
pursuant to Section 9.01(e) hereof.

                  "Tax Returns": The federal income tax returns on Internal
Revenue Service Form 1066, U.S. Real Estate Mortgage Investment Conduit Income
Tax Return, including Schedule Q thereto, Quarterly Notice to Residual Interest
Holders of the REMIC Taxable Income or Net Loss Allocation, or any successor
forms, to be filed on behalf of the Trust for each of the two REMICs created
pursuant to this Agreement under the REMIC Provisions, together with any and all
other information reports or returns that may be required to be furnished to the
Certificateholders or filed with the Internal Revenue Service or any other
governmental taxing authority under any applicable provisions of federal, state
or local tax laws.

                  "Telerate Page 3750": The display page currently so designated
on the Moneyline Telerate Service (or such other page as may replace the
Telerate Page 3750 page on that service for the purpose of displaying London
interbank offered rates of major banks).

                  "Termination Price": As defined in Section 10.01(a) hereof.

                  "Trigger Event": With respect to any Distribution Date, if (i)
the three-month rolling average of 60+ Day Delinquent Loans equals or exceeds
40.00% of the Senior Enhancement Percentage or (ii) the aggregate amount of
Realized Losses incurred since the Cut-off Date through the last day of the
related Collection Period (reduced by the aggregate amount of Subsequent
Recoveries received since the Cut-off Date through the last day of the related
Collection Period) divided by the Cut-off Date Aggregate Principal Balance
exceeds the applicable percentages set forth below with respect to such
Distribution Date:

                                      -46-
<PAGE>

<TABLE>
<CAPTION>
             DISTRIBUTION DATE OCCURRING IN                                             PERCENTAGE
             ------------------------------                                             ----------
<S>          <C>                                                       <C>
             May 2008 through April 2009                               2.00% for the first month, plus an additional
                                                                        1/12th of 1.25% for each month thereafter
             May 2009 through April 2010                               3.25% for the first month, plus an additional
                                                                        1/12th of 1.00% for each month thereafter
             May 2010 through April 2011                               4.25% for the first month, plus an additional
                                                                        1/12th of 0.50% for each month thereafter
             May 2011 and thereafter                                                       4.75%
</TABLE>

                  "Trust":  ABFC 2005-WF1 Trust, the trust created hereunder.

                  "Trust Fund": The segregated pool of assets subject hereto,
constituting the primary trust created hereby and to be administered hereunder,
with respect to a portion of which two REMIC elections are to be made, such
entire Trust Fund consisting of: (i) such Mortgage Loans as from time to time
are subject to this Agreement, together with the Mortgage Files relating
thereto, and together with all collections thereon and proceeds thereof (other
than scheduled payments due on the Mortgage Loans prior to the Cut-off Date),
(ii) any REO Property, together with all collections thereon and proceeds
thereof, (iii) the Trustee's rights with respect to the Mortgage Loans under all
insurance policies required to be maintained pursuant to this Agreement
(including the LPMI Policies) and any proceeds thereof, (iv) the Depositor's
rights under the Originator Mortgage Loan Purchase Agreement, the Assignment,
Assumption and Recognition Agreement and the Mortgage Loan Purchase Agreement
(including any security interest created thereby), (v) the Securities
Administrator's rights under each Yield Maintenance Agreement and (vi) the
Collection Accounts, the Distribution Account and the Reserve Accounts and such
assets that are deposited therein from time to time and any investments thereof,
together with any and all income, proceeds and payments with respect thereto.

                  "Trustee": Deutsche Bank National Trust Company., a national
banking association, or any successor Trustee appointed as herein provided.

                  "Uncertificated Accrued Interest": With respect to each REMIC
1 Regular Interest on each Distribution Date, an amount equal to one month's
interest at the related Uncertificated REMIC 1 Pass-Through Rate on the
Uncertificated Principal Balance of such REMIC 1 Regular Interest. In each case,
Uncertificated Accrued Interest will be reduced by any Prepayment Interest
Shortfalls and Relief Act Interest Shortfalls (allocated to such REMIC 1 Regular
Interests based on their respective entitlements to interest irrespective of any
Prepayment Interest Shortfalls and Relief Act Interest Shortfalls for such
Distribution Date).

                  "Uncertificated Principal Balance": The amount of any REMIC 1
Regular Interest outstanding as of any date of determination. As of the Closing
Date, the Uncertificated Principal Balance of each REMIC 1 Regular Interest
shall equal the amount set forth in the Preliminary Statement hereto as its
initial uncertificated balance. On each Distribution Date, the Uncertificated
Principal Balance of each REMIC 1 Regular Interest shall be reduced by all
distributions of principal made on such REMIC 1 Regular Interest on such
Distribution Date pursuant to Section 4.08 and, if and to the extent necessary
and appropriate, shall be further reduced on such Distribution Date by Realized
Losses as provided in Section 4.08(b) or increased by Subsequent Recoveries
through Available Funds. The Uncertificated Balance of REMIC 1 Regular Interest
LT1ZZ shall be increased by interest deferrals as provided in Section
4.08(a)(i). The Uncertificated Balance of each REMIC 1 Regular Interest shall
never be less than zero.

                                      -47-
<PAGE>

                  "Uncertificated REMIC 1 Pass-Through Rate": With respect to
REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1A1, REMIC 1 Regular
Interest LT1A2A, REMIC 1 Regular Interest LT1A2B, REMIC 1 Regular Interest
LT1A2C, REMIC 1 Regular Interest LT1M1, REMIC 1 Regular Interest LT1M2, REMIC 1
Regular Interest LT1M3, REMIC 1 Regular Interest LT1M4, REMIC 1 Regular Interest
LT1M5, REMIC 1 Regular Interest LT1M6, REMIC 1 Regular Interest LT1M7, REMIC 1
Regular Interest LT1M8, REMIC 1 Regular Interest LT1M9, REMIC 1 Regular Interest
LT1M10, REMIC 1 Regular Interest LT1B1, REMIC 1 Regular Interest LT1B2, REMIC 1
Regular Interest LT1B3, REMIC 1 Regular Interest LT1SUB, REMIC 1 Regular
Interest LT2SUB, REMIC 1 Regular Interest LTXX, REMIC 1 Regular Interest LT1P
and REMIC 1 Regular Interest LT1ZZ, the Weighted Average Net Mortgage Rate of
the Mortgage Loans. With respect to REMIC 1 Regular Interest LT1GRP, the
Weighted Average Net Mortgage Rate of the Group 1 Mortgage Loans. With respect
REMIC 1 Regular Interest LT2GRP, the Weighted Average Net Mortgage Rate of the
Group 2 Mortgage Loans.

                  "United States Person" or "U.S. Person": (i) A citizen or
resident of the United States, (ii) a corporation, partnership or other entity
treated as a corporation or partnership for United States federal income tax
purposes organized in or under the laws of the United States or any state
thereof or the District of Columbia (unless, in the case of a partnership,
Treasury Regulations provide otherwise), (iii) an estate the income of which is
includible in gross income for United States tax purposes, regardless of its
source, or (iv) a trust if a court within the United States is able to exercise
primary supervision over the administration of the trust and one or more United
States persons have authority to control all substantial decisions of the trust.
Notwithstanding the preceding sentence, to the extent provided in Treasury
Regulations, certain Trusts in existence on August 20, 1996, and treated as
United States persons prior to such date, that elect to continue to be treated
as United States persons will also be a U.S. Person; provided, that for purposes
of the definition of a "Permitted Transferee," a U.S. Person shall not include
any person whose income is attributable to a foreign permanent establishment or
fixed base, within the meaning of an applicable income tax treaty, of such
Person or any other U.S. Person.

                  "Unpaid Realized Loss Amount": For any of the Class M and
Class B Certificates and as to any Distribution Date, the excess of (x) the
aggregate Applied Realized Loss Amounts allocated to such Class for all prior
Distribution Dates over (y) the sum of (a) the cumulative amount of any
Subsequent Recoveries allocated to such Class and (b) the aggregate Realized
Loss Amortization Amounts with respect to such Class for all prior Distribution
Dates.

                  "Value": With respect to any Mortgaged Property, the lesser of
(a) an amount determined by an appraisal done at origination of the Mortgage
Loan and (b) 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, the value of the Mortgaged Property is based
solely upon clause (a) above.

                  "Voting Rights": The portion of the voting rights of all of
the Certificates which is allocated to any Certificate. The Voting Rights
allocated among Holders of the Class A, Class M and Class B Certificates shall
be 98%, and shall be allocated among each such Class according to the fraction,
expressed as a percentage, the numerator of which is the aggregate Certificate
Principal Balance of all the Certificates of such Class then outstanding and the
denominator of which is the aggregate Certificate Principal Balance of all the
Class A, Class M and Class B Certificates then outstanding. The Voting Rights
allocated to each such Class of Certificates shall be allocated among all
holders of each such Class in proportion to the outstanding Certificate
Principal Balance of such Certificates; provided, however, that any Certificate
registered in the name of the Servicer, the Depositor, the Securities
Administrator or the Trustee or any of their respective affiliates shall not be
included in the calculation of Voting Rights; provided that only such
Certificates as are known by a Responsible Officer of the Securities
Administrator to be so registered will be so excluded. One percent of all the
Voting Rights will be allocated to the Holders of each of the Class CE and Class
P Certificates. The Class R Certificates shall have no Voting Rights.

                  "Weighted Average Net Mortgage Rate": The weighted average
(based on Principal Balance as of the first day of the related Collection Period
or, in the case of the first Distribution Date, the Cut-off Date) of the Net
Mortgage Interest Rates of the Mortgage Loans, the Group 1 Mortgage Loans or the
Group 2 Mortgage Loans or the Group Subordinate Amounts, as applicable,
expressed for each such Mortgage Loan as an annual rate and calculated on the
basis of twelve months consisting of 30 days each and a 360-day year.

                                      -48-
<PAGE>

                  "Wells Fargo Prepayment Charge Matrix": The matrix, attached
hereto as Schedule I, setting forth the state-by-state guidelines for prepayment
charge provisions to be included in mortgage loan documents with respect to
mortgage loans originated and acquired by Wells Fargo Bank, N.A.

                  "Written Order to Authenticate": A written order by which the
Depositor directs the Securities Administrator to execute, authenticate and
deliver the Certificates.

                  "Yield Maintenance Agreement": Any of (i) the Class A-1 Yield
Maintenance Agreement, (ii) the Class A-2A, Class A-2B and Class A-2C Yield
Maintenance Agreement or (iii) the Class M and Class B Yield Maintenance
Agreement.

                  "Yield Maintenance Agreement Payment": Any of (i) the Class
A-1 Yield Maintenance Agreement Payment, (ii) the Class A-2A, Class A-2B and
Class A-2C Yield Maintenance Agreement Payment or (iii) the Class M and Class B
Yield Maintenance Agreement Payment.

                  "Yield Maintenance Agreement Provider": Barclays Bank PLC and
any successors thereto.

                  Section 1.02 Accounting.

                  Unless otherwise specified herein, for the purpose of any
definition or calculation, whenever amounts are required to be netted,
subtracted or added or any distributions are taken into account such definition
or calculation and any related definitions or calculations shall be determined
without duplication of such functions.

                  Section 1.03 Rights of the NIMS Insurer.

                  Each of the rights of the NIMS Insurer set forth in this
Agreement shall exist so long as (i) the NIMS Insurer has undertaken to
guarantee certain payments of notes issued pursuant to the Indenture and (ii)
any series of notes issued pursuant to the Indenture remains outstanding or the
NIMS Insurer is owed amounts in respect of its guarantee of payment on such
notes; provided, however, the NIMS Insurer shall not have any rights hereunder
(except pursuant to Section 11.01 in the case of clause (ii) below) during the
period of time, if any, that (i) the NIMS Insurer has not undertaken to
guarantee certain payments of notes issued pursuant to the Indenture or (ii) any
default has occurred and is continuing under the insurance policy issued by the
NIMS Insurer with respect to such notes.

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                        ORIGINAL ISSUANCE OF CERTIFICATES

                  Section 2.01 Conveyance of Mortgage Loans.

                  The Depositor, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey to the
Trustee, on behalf of the Trust, without recourse for the benefit of the
Certificateholders all of the right, title and interest of the Depositor,
including any security interest therein for the benefit of the Depositor, in and
to (i) each Mortgage Loan identified on the Mortgage Loan Schedules, including
the related Cut-off Date Principal Balance, all interest accruing thereon after
the Cut-off Date and all collections in respect of interest and principal due
after the Cut-off Date; (ii) property which secured each such Mortgage Loan and
which has been acquired by foreclosure or deed in lieu of foreclosure; (iii) its
interest in any insurance policies (including the LPMI Policies) in respect of
the Mortgage Loans; (iv) all other assets included or to be included in the
Trust Fund; (v) all proceeds of any of the foregoing; and (vi) the rights of the
Depositor under the Originator Mortgage Loan Purchase Agreement, the Assignment,
Assumption and Recognition Agreement and the Mortgage Loan Purchase Agreement.
Such assignment includes all interest and principal due to the Depositor or the
Servicer after the Cut-off Date with respect to the Mortgage Loans.

                                      -49-
<PAGE>

                  In connection with such transfer and assignment, the Depositor
does hereby deliver to, and deposit with the Trustee (or Custodian on behalf of
the Trustee), or its designated agent, the following documents or instruments
with respect to each Mortgage Loan (a "Mortgage File") so transferred and
assigned, except to the extent that such documents or instruments are included
in the related Retained Mortgage File pursuant to the Originator Mortgage Loan
Purchase Agreement:

    (a)  the original Mortgage Note including any riders thereto, endorsed
         either (A) in blank or (B) in the following form: "Pay to the order of
         Deutsche Bank National Trust Company, as Trustee under the Pooling and
         Servicing Agreement, dated as of April 1, 2005, among Asset Backed
         Funding Corporation, Wells Fargo Bank, N.A. and Deutsche Bank National
         Trust Company, ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates,
         Series 2005-WF1, without recourse," or with respect to any lost
         Mortgage Note, an original Lost Note Affidavit, together with a copy of
         the related Mortgage Note;

    (b)  the original Mortgage with evidence of recording thereon including any
         riders thereto, and the original recorded power of attorney, if the
         Mortgage was executed pursuant to a power of attorney, with evidence of
         recording thereon or, if such Mortgage or power of attorney has been
         submitted for recording but has not been returned from the applicable
         public recording office, has been lost or is not otherwise available, a
         copy of such Mortgage or power of attorney, as the case may be,
         certified to be a true and complete copy of the original submitted for
         recording;

    (c)  except with respect to each MERS Mortgage Loan, an original Assignment,
         in form and substance acceptable for recording. The Mortgage shall be
         assigned either (A) in blank or (B) to "Deutsche Bank National Trust
         Company, as Trustee under the Pooling and Servicing Agreement, dated as
         of April 1, 2005, among Asset Backed Funding Corporation, Wells Fargo
         Bank, N.A. and Deutsche Bank National Trust Company, ABFC 2005-WF1
         Trust, ABFC Asset-Backed Certificates, Series 2005-WF1, without
         recourse";

    (d)  the originals of all intervening Assignments (if any) evidencing a
         complete chain of assignment from the applicable originator to the last
         endorsee with evidence of recording thereon, or if any such intervening
         assignment has not been returned from the applicable recording office
         or has been lost or if such public recording office retains the
         original recorded Assignments, the Servicer shall deliver or cause to
         be delivered to the Trustee, a photocopy of such intervening
         assignment, together with (A) in the case of a delay caused by the
         public recording office, an Officers' Certificate of the Servicer (or
         certified by the title company, escrow agent, or closing attorney)
         stating that such intervening Assignment has been dispatched to the
         appropriate public recording office for recordation and that such
         original recorded intervening Assignment or a copy of such intervening
         Assignment certified by the appropriate public recording office to be a
         true and complete copy of the original recorded intervening assignment
         of mortgage will be promptly delivered to the Trustee upon receipt
         thereof by the Servicer; or (B) in the case of an intervening
         assignment where a public recording office retains the original
         recorded intervening assignment or in the case where an intervening
         assignment is lost after recordation in a public recording office, a
         copy of such intervening assignment certified by such public recording
         office to be a true and complete copy of the original recorded
         intervening assignment;

    (e)  the original or a certified copy of lender's title insurance policy;
         and

    (f)  the original or copies of each assumption, modification, written
         assurance or substitution agreement, if any.

                                      -50-
<PAGE>

                  Upon discovery by or notice to the Servicer that a Document
Transfer Event has occurred, with respect to each Mortgage Loan, the Servicer
shall deliver or cause to be delivered within 60 days to the Custodian, on
behalf of the Trustee, copies (which may be in electronic form mutually agreed
upon by the Servicer and the Custodian) of the additional documents or
instruments constituting the related Retained Mortgage File to be included in
the related Mortgage File; provided, however, that originals of such documents
or instruments shall be delivered to the Custodian if originals are required
under the law in which the related Mortgaged Property is located in order to
exercise all remedies available to the Trust under applicable law following
default by the related Mortgagor.

                  The Trustee (or Custodian on behalf of the Trustee) agrees to
execute and deliver to the Depositor on or prior to the Closing Date an
acknowledgment of receipt of the original Mortgage Notes (with any exceptions
noted), substantially in the form attached as Exhibit F-3 hereto.

                  If any of the documents referred to in Section 2.01(b), (c) or
(d) above has as of the Closing Date been submitted for recording but either (x)
has not been returned from the applicable public recording office or (y) has
been lost or such public recording office has retained the original of such
document, the obligations of the Depositor to deliver such documents shall be
deemed to be satisfied upon (1) delivery to the Custodian on behalf of the
Trustee no later than the Closing Date, of a copy of each such document
certified by the Seller in the case of (x) above or the applicable public
recording office in the case of (y) above to be a true and complete copy of the
original that was submitted for recording and (2) if such copy is certified by
the Seller, delivery to the Custodian on behalf of the Trustee , promptly upon
receipt thereof of either the original or a copy of such document certified by
the applicable public recording office to be a true and complete copy of the
original. If the original lender's title insurance policy was not delivered
pursuant to Section 2.01(e) above, the Seller shall deliver or cause to be
delivered to the Custodian, a written commitment or interim binder or
preliminary report of title issued by the title insurance or escrow company,
with the original to be delivered to the Custodian, promptly upon receipt
thereof. The Depositor shall deliver or cause to be delivered to the Custodian
on behalf of the Trustee promptly upon receipt thereof any other documents
constituting a part of a Mortgage File received with respect to any Mortgage
Loan, including, but not limited to, any original documents evidencing an
assumption or modification of any Mortgage Loan.

                  Upon discovery or receipt of notice of any materially
defective document in, or that a document is missing from, a Mortgage File, the
Seller shall have 120 days to cure such defect or 150 days following the Closing
Date, in the case of missing Mortgages or Assignments or deliver such missing
document to the Custodian on behalf of the Trustee. If the Seller does not cure
such defect or deliver such missing document within such time period, the Seller
shall either repurchase or substitute for such Mortgage Loan in accordance with
Section 2.03.

                  The Depositor herewith delivers to the Custodian on behalf of
the Trustee executed copies of the Originator Mortgage Loan Purchase Agreement,
the Assignment, Assumption and Recognition Agreement and the Mortgage Loan
Purchase Agreement.

                  It is agreed and understood by the parties hereto that it is
not intended that any mortgage loan be included in the Trust that is a
"High-Cost Home Loan" as defined in any of (i) the New Jersey Home Ownership Act
effective November 27, 2003, (ii) the New Mexico Home Loan Protection Act
effective January 1, 2004, (iii) the Massachusetts Predatory Home Loan Practices
Act effective November 7, 2004 or (iv) the Indiana Home Loan Practices Act
effective January 1, 2005.

                                      -51-
<PAGE>

                  Section 2.02 Acceptance by Trustee.

                  The Trustee acknowledges the receipt based solely on
certification of such receipt from the Custodian on behalf of the Trustee of,
subject to the provisions of Section 2.01 and subject to the review described
below and any exceptions noted on the exception report described in the next
paragraph below, the documents referred to in Section 2.01 above and all other
assets included in the definition of "Trust Fund" and declares that it holds and
will hold such documents and the other documents delivered to it constituting a
Mortgage File, and that it holds or will hold all such assets and such other
assets included in the definition of "Trust Fund" in trust for the exclusive use
and benefit of all present and future Certificateholders.

                  The Custodian on behalf of the Trustee reviewed, for the
benefit of the Certificateholders, each Mortgage File prior to the Closing Date
(or, with respect to any document delivered after the Startup Day, within 60
days of receipt and with respect to any Qualified Substitute Mortgage, within 60
days after the assignment thereof) and will certify in substantially the form
attached hereto as Exhibit F-1 that, as to each Mortgage Loan listed in the
Mortgage Loan Schedules (other than any Mortgage Loan paid in full or any
Mortgage Loan specifically identified in the exception report annexed thereto as
not being covered by such certification), (i) all documents required to be
delivered to it pursuant to Section 2.01 of this Agreement are in its
possession, (ii) such documents have been reviewed by it and have not been
mutilated, damaged or torn and relate to such Mortgage Loan and (iii) based on
its examination and only as to the foregoing, the information set forth in the
Mortgage Loan Schedules that corresponds to items (1), (2), (10) and (23) of the
Mortgage Loan Schedules accurately reflects information set forth in the
Mortgage File. It is herein acknowledged that, in conducting such review,
neither the Trustee nor the Custodian is under a duty or obligation to inspect,
review or examine any such documents, instruments, certificates or other papers
to determine that they are genuine, enforceable, or appropriate for the
represented purpose or that they have actually been recorded or that they are
other than what they purport to be on their face.

                  Prior to the first anniversary date of this Agreement the
Custodian on behalf of the Trustee shall deliver to the Depositor, the Servicer,
the Securities Administrator and the NIMS Insurer a final certification in the
form annexed hereto as Exhibit F-2 evidencing the completeness of the Mortgage
Files, with any applicable exceptions noted thereon.

                  If in the process of reviewing the Mortgage Files and making
or preparing, as the case may be, the certifications referred to above, the
Custodian on behalf of the Trustee finds any document or documents constituting
a part of a Mortgage File to be missing or defective in any material respect, at
the conclusion of its review the Custodian on behalf of the Trustee shall so
notify the Seller, the Securities Administrator, the Depositor, the NIMS Insurer
and the Servicer. In addition, upon the discovery by the Originator, the Seller,
the Depositor, the Custodian, the NIMS Insurer, the Trustee, the Securities
Administrator or the Servicer (or upon receipt by the Trustee of written
notification of such breach) of a breach of any of the representations and
warranties made by the Originator in the Originator Mortgage Loan Purchase
Agreement or the Seller in the Mortgage Loan Purchase Agreement in respect of
any Mortgage Loan which materially adversely affects such Mortgage Loan or the
interests of the related Certificateholders in such Mortgage Loan, the party
discovering such breach shall give prompt written notice to the other parties.

                  The Depositor and the Trustee intend that the assignment and
transfer herein contemplated constitute a sale of the Mortgage Loans and the
Related Documents, conveying good title thereto free and clear of any liens and
encumbrances, from the Depositor to the Trustee and that such property not be
part of the Depositor's estate or property of the Depositor in the event of any
insolvency by the Depositor. In the event that such conveyance is deemed to be,
or to be made as security for, a loan, the parties intend that the Depositor
shall be deemed to have granted and does hereby grant to the Trustee, on behalf
of the Trust, a first priority perfected security interest in all of the
Depositor's right, title and interest in and to the Mortgage Loans and the
Related Documents, and that this Agreement shall constitute a security agreement
under applicable law.

                                      -52-
<PAGE>

                  Section 2.03 Repurchase or Substitution of Mortgage Loans by
the Originator or the Seller.

                  (a) Upon discovery or receipt of written notice of any
materially defective document in, or that a document is missing from, a Mortgage
File or that any document in a Mortgage File is materially inconsistent with the
Mortgage Loan Schedules or of the breach by the Originator or the Seller of any
representation or warranty under the Originator Mortgage Loan Purchase Agreement
or the Mortgage Loan Purchase Agreement, as applicable, in respect of any
Mortgage Loan which materially adversely affects the value of such Mortgage
Loan, Prepayment Charge or the interest therein of the Certificateholders, the
Trustee (or the Custodian on behalf of the Trustee) shall promptly notify the
Originator or the Seller, as the case may be, the Servicer and the NIMS Insurer
of such defect, missing document or breach and request that, in the case of a
defective or missing document, the Seller cure such defect or deliver such
missing document within 120 days from the date the Seller was notified of such
missing document or defect or, in the case of a breach of a representation or
warranty, request the Originator or the Seller, as applicable, cure such breach
within 90 days from the date the Originator or the Seller, as the case may be,
was notified of such breach. If the Seller does not deliver such missing
document or cure such defect or if the Originator or the Seller, as applicable,
does not cure such breach in all material respects during such period, the
Trustee shall enforce the Originator's or the Seller's obligation, as the case
may be, under the Originator Mortgage Loan Purchase Agreement or the Mortgage
Loan Purchase Agreement, as applicable, and cause the Originator or the Seller,
as applicable, to repurchase such Mortgage Loan from the Trust Fund at the
Purchase Price on or prior to the Determination Date following the expiration of
such period (subject to Section 2.03(d)). The Purchase Price for the repurchased
Mortgage Loan shall be deposited in the Collection Account, and the Custodian on
behalf of the Trustee, upon receipt of written notice from the Servicer of such
deposit, shall release to the Originator or the Seller, as applicable, the
related Mortgage File and shall execute and deliver such instruments of transfer
or assignment, in each case without recourse, as the Originator or the Seller,
as applicable, shall furnish to it and as shall be necessary to vest in the
Originator or the Seller, as the case may be, any Mortgage Loan released
pursuant hereto and the Trustee shall have no further responsibility with regard
to such Mortgage File. In lieu of repurchasing any such Mortgage Loan as
provided above, the Originator or the Seller, as the case may be, may cause such
Mortgage Loan to be removed from the Trust Fund (in which case it shall become a
Defective Mortgage Loan) and substitute one or more Eligible Substitute Mortgage
Loans in the manner and subject to the limitations set forth in Section 2.03(c);
provided, however, the Originator or the Seller, as applicable, may not
substitute an Eligible Substitute Mortgage Loan for any Deleted Mortgage Loan
that violates any predatory or abusive lending law.

                  With respect to the representations and warranties set forth
in the Originator Mortgage Loan Purchase Agreement and the Mortgage Loan
Purchase Agreement that are made to the best of the Originator's or the Seller's
knowledge, as applicable, or as to which the Originator or the Seller, as the
case may be, has no knowledge, if it is discovered by the Depositor, the
Servicer, the NIMS Insurer, the Securities Administrator or the Trustee that the
substance of such representation and warranty is inaccurate and such inaccuracy
materially and adversely affects the value of the related Mortgage Loan,
Prepayment Charge or the interest therein of the Certificateholders then,
notwithstanding the Originator's or the Seller's lack of knowledge with respect
to the substance of such representation and warranty being inaccurate at the
time the representation or warranty was made, such inaccuracy shall be deemed a
breach of the applicable representation or warranty.

                  It is understood and agreed that the representations and
warranties set forth in the Originator Mortgage Loan Purchase Agreement and the
Mortgage Loan Purchase Agreement shall survive delivery of the Mortgage Files to
the Custodian on behalf of the Trustee and the Closing Date and shall inure to
the benefit of the Certificateholders notwithstanding any restrictive or
qualified endorsement or assignment. It is understood and agreed that the
obligations of the Originator and the Seller set forth in this Section 2.03(a)
to cure, substitute for or repurchase a Mortgage Loan pursuant to the Originator
Mortgage Loan Purchase Agreement or the Mortgage Loan Purchase Agreement, as
applicable, and to pay the Reimbursement Amount constitute the sole remedies
available to the Certificateholders and to the Trustee on their behalf
respecting a breach of the representations and warranties contained in the
Originator Mortgage Loan Purchase Agreement and the Mortgage Loan Purchase
Agreement.

                                      -53-
<PAGE>

                  The representations and warranties of the Originator with
respect to the Mortgage Loans in the Originator Mortgage Loan Purchase
Agreement, which have been assigned to the Trustee hereunder, were made as of
the dates specified in the Originator Mortgage Loan Purchase Agreement. To the
extent that any fact, condition or event with respect to a Mortgage Loan
constitutes a breach of both (i) a representation or warranty of the Originator
under the Originator Mortgage Loan Purchase Agreement and (ii) a representation
or warranty of the Seller under the Mortgage Loan Purchase Agreement (other than
Seller's representations with respect to predatory and abusive lending laws in
Sections 3.01(i), 3.01(ii) and 3.01(iii) of the Mortgage Loan Purchase
Agreement), the only right or remedy of the Trustee or of any Certificateholder
shall be the Trustee's right to enforce the obligations of the Originator under
any applicable representation or warranty made by it. The Trustee acknowledges
that the Seller shall have no obligation or liability with respect to any breach
of a representation or warranty made by it with respect to the Mortgage Loans
(except as otherwise set forth in this paragraph) if the fact, condition or
event constituting such breach also constitutes a breach of a representation or
warranty made by the Originator in the Originator Mortgage Loan Purchase
Agreement, without regard to whether the Originator fulfills its contractual
obligations in respect of such representation or warranty. In addition, to the
extent that any fact, condition or event with respect to a Mortgage Loan
constitutes a breach of both (x) the Originator's representation with respect to
predatory and abusive lending laws in Section 3.02(i), (rr) and (eee) of the
Originator Mortgage Loan Purchase Agreement and (y) the Seller's representation
with respect to predatory and abusive lending laws in Section 3.01(i), 3.01(ii)
or 3.01(iii) of the Mortgage Loan Purchase Agreement, the Originator shall be
obligated to pay the Reimbursement Amount relating to such Mortgage Loan, and,
to the extent the Originator fails to do so, the Trustee shall be entitled to
enforce the Seller's obligation to pay such Reimbursement Amount. In any event,
the Reimbursement Amount shall be delivered to the Servicer for deposit into the
Collection Account within ten (10) days from the date the Seller was notified by
the Trustee of the Reimbursement Amount.

                  (b) Within 90 days of the earlier of discovery by the Servicer
or receipt of notice by the Servicer of the breach of any representation,
warranty or covenant of the Servicer set forth in Section 2.05 which materially
and adversely affects the interests of the Certificateholders in any Mortgage
Loan, the Servicer shall cure such breach in all material respects.

                  (c) Any substitution of Eligible Substitute Mortgage Loans for
Defective Mortgage Loans made pursuant to Section 2.03(a) must be effected prior
to the last Business Day that is within two years after the Closing Date. As to
any Defective Mortgage Loan for which the Originator or the Seller substitutes
an Eligible Substitute Mortgage Loan or Loans, such substitution shall be
effected by the Originator or the Seller, as applicable, delivering to the
Custodian on behalf of the Trustee for such Eligible Substitute Mortgage Loan or
Loans, the Mortgage Note, the Mortgage, the Assignment to the Trustee, and such
other documents and agreements, with all necessary endorsements thereon, as are
required by Section 2.01, together with an Officers' Certificate providing that
each such Eligible Substitute Mortgage Loan satisfies the definition thereof and
specifying the Substitution Adjustment (as described below), if any, in
connection with such substitution. The Custodian on behalf of the Trustee shall
acknowledge receipt for such Eligible Substitute Mortgage Loan or Loans and,
within ten (10) Business Days thereafter, shall review such documents as
specified in Section 2.02 and deliver to the Servicer and the NIMS Insurer, with
respect to such Eligible Substitute Mortgage Loan or Loans, a certification
substantially in the form attached hereto as Exhibit F-1, with any applicable
exceptions noted thereon. Within one year of the date of substitution, the
Custodian on behalf of the Trustee shall deliver to the Servicer and the NIMS
Insurer a certification substantially in the form of Exhibit F-2 hereto with
respect to such Eligible Substitute Mortgage Loan or Loans, with any applicable
exceptions noted thereon. Monthly Payments due with respect to Eligible
Substitute Mortgage Loans in the month of substitution are not part of the Trust
Fund and will be retained by the Originator or the Seller, as applicable. For
the month of substitution, distributions to Certificateholders will reflect the
collections and recoveries in respect of such Defective Mortgage Loan in the
Collection Period or Prepayment Period, as applicable, preceding the date of
substitution and the Depositor, the Originator or the Seller, as the case may
be, shall thereafter be entitled to retain all amounts subsequently received in
respect of such Defective Mortgage Loan. The Depositor shall give or cause to be
given written notice to the Certificateholders and the NIMS Insurer that such
substitution has taken place, shall amend the Mortgage Loan Schedules to reflect
the removal of such Defective Mortgage Loan from the terms of this Agreement and
the substitution of the Eligible Substitute Mortgage Loan or Loans and shall
deliver a copy of such amended Mortgage Loan Schedules to the Trustee, the
Servicer, the Custodian and the NIMS Insurer. Upon such substitution, such
Eligible Substitute Mortgage Loan or Loans shall constitute part of the Mortgage
Pool and shall be subject in all respects to the terms of this Agreement and, in
the case of a substitution effected by the Originator or the Seller, the
Originator Mortgage Loan Purchase Agreement or the Mortgage Loan Purchase
Agreement, as the case may be, including, in the case of a substitution effected
by the Originator or the Seller, all applicable representations and warranties
thereof included in the Originator Mortgage Loan Purchase Agreement or the
Mortgage Loan Purchase Agreement, as the case may be, as of the date of
substitution.

                                      -54-
<PAGE>

                  For any month in which the Originator or the Seller
substitutes one or more Eligible Substitute Mortgage Loans for one or more
Defective Mortgage Loans, the Servicer will determine the amount (the
"Substitution Adjustment"), if any, by which the aggregate Purchase Price of all
such Defective Mortgage Loans exceeds the aggregate, as to each such Eligible
Substitute Mortgage Loan, of the principal balance thereof as of the date of
substitution, together with one month's interest on such principal balance at
the applicable Net Mortgage Interest Rate. On the date of such substitution, the
Originator or the Seller, as the case may be, will deliver or cause to be
delivered to the Servicer for deposit in the Collection Account an amount equal
to the Substitution Adjustment, if any, and the Custodian on behalf of the
Trustee, upon receipt of the related Eligible Substitute Mortgage Loan or Loans
and notice by the Servicer of such deposit, shall release to the Originator or
the Seller, as applicable, the related Mortgage File or Files and shall execute
and deliver such instruments of transfer or assignment, in each case without
recourse, as the Originator or the Seller, as the case may be, shall deliver to
it and as shall be necessary to vest therein any Defective Mortgage Loan
released pursuant hereto. In addition, in connection with the substitution of
one or more Eligible Substitute Mortgage Loans for one or more Defective
Mortgage Loans, in the event the Trust incurs costs or damages arising in
connection with a breach of the Originator's representations with respect to
predatory or abusive lending laws set forth in Section 3.02(i), (rr) and (eee)
of the Originator Mortgage Loan Purchase Agreement, the Seller shall be required
to reimburse the Trust for the Reimbursement Amount pursuant to the Mortgage
Loan Purchase Agreement to the extent that the Originator fails to do so.

                  In addition, the Originator or the Seller, as applicable,
shall obtain at its own expense and deliver to the Trustee and the NIMS Insurer
an Opinion of Counsel to the effect that such substitution will not cause an
Adverse REMIC Event. If such Opinion of Counsel can not be delivered, then such
substitution may only be effected at such time as the required Opinion of
Counsel can be given.

                  (d) Upon discovery by the Originator, the Seller, the
Servicer, the Securities Administrator, the NIMS Insurer, the Custodian or the
Trustee that any Mortgage Loan does not constitute a "qualified mortgage" within
the meaning of Section 860G(a)(3) of the Code, the party discovering such fact
shall within two Business Days give written notice thereof to the other parties.
In connection therewith, the Originator or the Seller, as applicable, shall
repurchase or, subject to the limitations set forth in Section 2.03(c),
substitute one or more Eligible Substitute Mortgage Loans for the affected
Mortgage Loan within 90 days of the earlier of discovery or receipt of such
notice with respect to such affected Mortgage Loan. In addition, upon discovery
that a Mortgage Loan is defective in a manner that would cause it to be a
"defective obligation" within the meaning of Treasury Regulations relating to
REMICs, the Originator or the Seller, as the case may be, shall cure the defect
or make the required purchase or substitution no later than 90 days after the
discovery of the defect. Any such repurchase or substitution shall be made in
the same manner as set forth in Section 2.03(a). The Custodian on behalf of the
Trustee shall reconvey to the Originator or the Seller, as applicable, the
Mortgage Loan to be released pursuant hereto in the same manner, and on the same
terms and conditions, as it would a Mortgage Loan repurchased for breach of a
representation or warranty.

                                      -55-
<PAGE>

                  Section 2.04 Execution of Yield Maintenance Agreements.

                  The Depositor hereby directs the Securities Administrator to
enter into and execute the Class A-1 Yield Maintenance Agreement, the Class
A-2A, Class A-2B and Class A-2C Yield Maintenance Agreement and the Class M and
Class B Yield Maintenance Agreement on the Closing Date on behalf of the Trust
for the benefit of the Holders of (i) the Class A-1 Certificates, (ii) the Class
A-2A, Class A-2B and Class A-2C Certificates and (iii) the Class M and Class B
Certificates, respectively. The Depositor, the Servicer and the Holders of the
Class A-1 Certificates, the Class A-2A, Class A-2B and Class A-2C Certificates
and the Class M and Class B Certificates (by their acceptance of such
Certificates) acknowledge that the Wells Fargo Bank, N.A. is entering into each
respective Yield Maintenance Agreement solely in its capacity as Securities
Administrator of the Trust Fund and not in its individual capacity.

                  Section 2.05 Representations, Warranties and Covenants of the
Servicer.

                  The Servicer hereby represents, warrants and covenants to the
Trustee, for the benefit of each of the Trustee and the Certificateholders and
to the Depositor, the Securities Administrator and the NIMS Insurer that as of
the Closing Date or as of such date specifically provided herein:

                  (i) The Servicer is a national banking association duly
         organized, validly existing and in good standing under the laws of the
         United States of America and has all licenses necessary to carry on its
         business as now being conducted, except for such licenses, certificates
         and permits the absence of which, individually or in the aggregate,
         would not have a material adverse effect on the ability of the Servicer
         to conduct its business as it is presently conducted, and is licensed,
         qualified and in good standing in each state where a Mortgaged Property
         is located if the laws of such state require licensing or qualification
         in order to conduct business of the type conducted by the Servicer or
         to ensure the enforceability or validity of each Mortgage Loan; the
         Servicer has the 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 the Servicer
         and the consummation of the transactions contemplated hereby have been
         duly and validly authorized; and all requisite action has been taken by
         the Servicer to make this Agreement valid and binding upon the Servicer
         in accordance with its terms;

                  (ii) The consummation of the transactions contemplated by this
         Agreement are in the ordinary course of business of the Servicer and
         will not result in the breach of any term or provision of the
         organizational documents of the Servicer 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 the
         Servicer or its property is subject, or result in the violation of any
         law, rule, regulation, order, judgment or decree to which the Servicer
         or its property is subject;

                  (iii) The Servicer is an approved seller/servicer of
         conventional residential mortgage loans for Fannie Mae or Freddie Mac,
         with the facilities, procedures, and experienced personnel necessary
         for the sound servicing of mortgage loans of the same type as the
         Mortgage Loans. The Servicer is a HUD approved mortgagee pursuant to
         Section 203 of the National Housing Act and is in good standing to sell
         mortgage loans to and service mortgage loans for Fannie Mae or Freddie
         Mac, and no event has occurred, including but not limited to a change
         in insurance coverage, which would make the Servicer unable to comply
         with Fannie Mae or Freddie Mac eligibility requirements or which would
         require notification to either Fannie Mae or Freddie Mac;

                                      -56-
<PAGE>

                  (iv) This Agreement, and all documents and instruments
         contemplated hereby which are executed and delivered by the Servicer,
         constitute and will constitute valid, legal and binding obligations of
         the Servicer, enforceable in accordance with their respective terms,
         except as the enforcement thereof may be limited by applicable
         bankruptcy, insolvency, reorganization, moratorium or other similar
         laws affecting the enforcement of creditors' rights generally (whether
         considered in a proceeding at law or in equity);

                  (v) The Servicer does not believe, nor does it have any reason
         or cause to believe, that it cannot perform each and every covenant
         contained in this Agreement;

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

                  (vii) No consent, approval or order of any court or
         governmental agency or body is required for the execution, delivery and
         performance by the Servicer of or compliance by the Servicer with this
         Agreement or the consummation of the transactions contemplated by this
         Agreement, except for such consents, approvals, authorizations and
         orders, if any, that have been obtained;

                  (viii) No information in this Agreement provided by the
         Servicer nor any information, certificate of an officer, statement
         furnished in writing or report delivered to the Trustee by the Servicer
         in connection with the transactions contemplated hereby contains or
         will contain any untrue statement of a material fact or omits or will
         omit to state a material fact necessary in order to make the statements
         contained therein, in light of the circumstances under which they were
         made, not misleading;

                  (ix) The Servicer has fully furnished, and shall continue to
         fully furnish for so long as it is servicing the Mortgage Loans
         hereunder, in accordance with the Fair Credit Reporting Act and its
         implementing regulations, accurate and complete information on the
         Mortgagor credit files to Equifax, Experian and Trans Union Credit
         Information Company on a monthly basis;

                  (x) The Servicer is a member of MERS in good standing;

                  (xi) The Servicer acknowledges and agrees that the Servicing
         Fee represents reasonable compensation for performing such services and
         that the entire Servicing Fee shall be treated by the Servicer, for
         accounting and tax purposes, as compensation for the servicing and
         administration of the Mortgage Loans pursuant to this Agreement; and

                                      -57-
<PAGE>

                  (xii) As of March 30, 2005, with respect to Mortgage Loans
         with Prepayment Charges, all information on the Mortgage Loan Schedule,
         Data File and Underwriting Guidelines (as such terms are defined in the
         Originator Mortgage Loan Purchase Agreement) regarding the Prepayment
         Charges was complete and accurate in all material respects, and except
         for balloon payment Mortgage Loans originated in certain states
         specified in the Wells Fargo Prepayment Charge Matrix with restrictions
         on collection of Prepayment Charges, each Prepayment Charge was
         permissible and enforceable in accordance with its terms under
         applicable law. Prepayment Charges on the Mortgage Loans were
         applicable to prepayments resulting from both refinancings and sales of
         the related Mortgaged Properties and the terms of each such Prepayment
         Charge did not provide for a waiver or release during the term of the
         Prepayment Charge. No Mortgage Loan originated on or after October 1,
         2002 provided for the payment of a Prepayment Charge beyond the
         three-year term following the origination of the Mortgage Loan. No
         Mortgage Loan originated prior to such date provided for the payment of
         a Prepayment Charge beyond the five-year term following the origination
         of the Mortgage Loan.

                  It is understood and agreed that the representations,
warranties and covenants set forth in this Section 2.05 shall survive delivery
of the Mortgage Files to the Custodian on behalf of the Trustee and shall inure
to the benefit of the Trustee, the Depositor, the Securities Administrator, the
NIMS Insurer and the Certificateholders. Upon discovery by any of the Depositor,
the Servicer, the Securities Administrator, the NIMS Insurer or the Trustee of a
breach of any of the foregoing representations, warranties and covenants which
materially and adversely affects the value of any Mortgage Loan, Prepayment
Charge or the interests therein of the Certificateholders, the party discovering
such breach shall give prompt written notice (but in no event later than two
Business Days following such discovery) to the other parties hereto.

                  Section 2.06 Representations and Warranties of the Depositor.

                  The Depositor represents and warrants to the Trust and the
Trustee on behalf of the Certificateholders and to the Servicer, the Securities
Administrator and the NIMS Insurer as follows:

                  (i) This agreement constitutes a legal, valid and binding
         obligation of the Depositor, enforceable against the Depositor in
         accordance with its terms, except as enforceability may be limited by
         applicable bankruptcy, insolvency, reorganization, moratorium or other
         similar laws now or hereafter in effect affecting the enforcement of
         creditors' rights in general and except as such enforceability may be
         limited by general principles of equity (whether considered in a
         proceeding at law or in equity);

                  (ii) Immediately prior to the sale and assignment by the
         Depositor to the Trustee on behalf of the Trust of each Mortgage Loan,
         the Depositor had good and marketable title to each Mortgage Loan
         (insofar as such title was conveyed to it by the Seller) subject to no
         prior lien, claim, participation interest, mortgage, security interest,
         pledge, charge or other encumbrance or other interest of any nature;

                  (iii) As of the Closing Date, the Depositor has transferred
         all right, title interest in the Mortgage Loans to the Trustee on
         behalf of the Trust;

                  (iv) The Depositor has not transferred the Mortgage Loans to
         the Trustee on behalf of the Trust with any intent to hinder, delay or
         defraud any of its creditors;

                  (v) The Depositor has been duly incorporated and is validly
         existing as a corporation in good standing under the laws of the State
         of Delaware, with full corporate power and authority to own its assets
         and conduct its business as presently being conducted;

                  (vi) The Depositor is not in violation of its certificate of
         incorporation or by-laws or in default in the performance or observance
         of any material obligation, agreement, covenant or condition contained
         in any contract, indenture, mortgage, loan agreement, note, lease or
         other instrument to which the Depositor is a party or by which it or
         its properties may be bound, which default might result in any material
         adverse changes in the financial condition, earnings, affairs or
         business of the Depositor or which might materially and adversely
         affect the properties or assets, taken as a whole, of the Depositor;

                                      -58-
<PAGE>

                  (vii) The execution, delivery and performance of this
         Agreement by the Depositor, and the consummation of the transactions
         contemplated thereby, do not and will not result in a material breach
         or violation of any of the terms or provisions of, or, to the knowledge
         of the Depositor, constitute a default under, any indenture, mortgage,
         deed of trust, loan agreement or other agreement or instrument to which
         the Depositor is a party or by which the Depositor is bound or to which
         any of the property or assets of the Depositor is subject, nor will
         such actions result in any violation of the provisions of the
         certificate of incorporation or by-laws of the Depositor or, to the
         best of the Depositor's knowledge without independent investigation,
         any statute or any order, rule or regulation of any court or
         governmental agency or body having jurisdiction over the Depositor or
         any of its properties or assets (except for such conflicts, breaches,
         violations and defaults as would not have a material adverse effect on
         the ability of the Depositor to perform its obligations under this
         Agreement);

                  (viii) To the best of the Depositor's knowledge without any
         independent investigation, no consent, approval, authorization, order,
         registration or qualification of or with any court or governmental
         agency or body of the United States or any other jurisdiction is
         required for the issuance of the Certificates, or the consummation by
         the Depositor of the other transactions contemplated by this Agreement,
         except such consents, approvals, authorizations, registrations or
         qualifications as (a) may be required under State securities or Blue
         Sky laws, (b) have been previously obtained or (c) the failure of which
         to obtain would not have a material adverse effect on the performance
         by the Depositor of its obligations under, or the validity or
         enforceability of, this Agreement; and

                  (ix) There are no actions, proceedings or investigations
         pending before or, to the Depositor's knowledge, threatened by any
         court, administrative agency or other tribunal to which the Depositor
         is a party or of which any of its properties is the subject: (a) which
         if determined adversely to the Depositor would have a material adverse
         effect on the business, results of operations or financial condition of
         the Depositor; (b) asserting the invalidity of this Agreement or the
         Certificates; (c) seeking to prevent the issuance of the Certificates
         or the consummation by the Depositor of any of the transactions
         contemplated by this Agreement, as the case may be; (d) which might
         materially and adversely affect the performance by the Depositor of its
         obligations under, or the validity or enforceability of, this
         Agreement.

                  Section 2.07 Issuance of Certificates and the Uncertificated
Regular Interests.

                  The Trustee acknowledges the assignment to it of the Mortgage
Loans and based on the Custodian's certification of delivery to it the Trustee
acknowledges such deliery of the Mortgage Files, subject to the provisions of
Sections 2.01 and 2.02, and the Trustee acknowledges the assignment to it of all
other assets included in the Trust Fund, receipt of which is hereby
acknowledged. Concurrently with such assignment and delivery and in exchange
therefor, the Securities Administrator, pursuant to the Written Order to
Authenticate executed by an officer of the Depositor, has executed, and the
Certificate Registrar has authenticated and delivered to or upon the order of
the Depositor, the Certificates (other than the Class CE, Class P and Class R
Certificates) in minimum dollar denominations of $25,000 and integral dollar
multiples of $1 in excess thereof or in the case of the Class P Certificates, in
minimum denominations of $20 and integral multiples of $20 in excess thereof.
The Class CE Certificates are issuable only in minimum Percentage Interests of
10%. The Class R Certificate is issuable only as a single certificate. The
Trustee acknowledges the issuance of the uncertificated REMIC 1 Regular
Interests and declares that it hold such regular interests as assets of REMIC 2.
The Trustee acknowledges the obligation of the Class CE Certificates to pay Cap
Carryover Amounts, and declares that it hold the same as assets of the Grantor
Trust on behalf of the Holders of the Class A-1, Class A-2A, Class A-2B, Class
A-2C, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class
M-7, Class M-8, Class M-9, Class M-10 and Class B Certificates, respectively,
which shall be treated as beneficially owning the right to receive the Cap
Carryover Amounts from the Grantor Trust. In addition to the assets described in
the preceding sentence, the assets of the Grantor Trust shall also include (i)
any Servicer Prepayment Charge Payment Amounts and the beneficial interest of
the Class P Certificates with respect thereto and (ii) the Yield Maintenance
Agreements, the Reserve Accounts and the beneficial interest of the Class CE
Certificates with respect thereto, subject to the obligation to pay Cap
Carryover Amounts. The interests evidenced by the Certificates constitute the
entire beneficial ownership interest in the Trust Fund.

                                      -59-
<PAGE>

                                  ARTICLE III

                          ADMINISTRATION AND SERVICING
                                OF THE TRUST FUND

                  Section 3.01 Servicer to Act as Servicer.

                  The Servicer, as independent contract servicer, shall service
and administer the Mortgage Loans on behalf of the Trust and in the best
interests of and for the benefit of the Certificateholders in accordance with
this Agreement and the normal and usual standards of practice of prudent
mortgage servicers servicing similar mortgage loans and, to the extent
consistent with such terms, in the same manner in which it services and
administers similar mortgage loans for its own portfolio, and shall have full
power and authority, acting alone, to do or cause to be done any and all things
in connection with such servicing and administration which the Servicer may deem
necessary or desirable and consistent with the terms of this Agreement (the
"Servicing Standard").

                  Consistent with the terms of this Agreement, the Servicer may
waive, modify or vary any term of any Mortgage Loan or consent to the
postponement of strict compliance with any such term or in any manner grant
indulgence to any Mortgagor if in the Servicer's reasonable and prudent
determination such waiver, modification, postponement or indulgence is not
materially adverse to the Certificateholders; provided, however, that the
Servicer shall not make future advances and, except as set forth in the
following sentence or Section 3.03, the Servicer shall not permit any
modification with respect to any Mortgage Loan that would (i) change the
Mortgage Interest Rate, defer or forgive the payment thereof of any principal or
interest payments, reduce the outstanding principal amount (except for actual
payments of principal) or extend the final maturity date with respect to such
Mortgage Loan or (ii) cause an Adverse REMIC Event. Notwithstanding anything to
the contrary contained in this Agreement, in the event that any Mortgage Loan is
in default or, if such default is reasonably foreseeable, the Servicer,
consistent with the standards set forth in this Section 3.01, may also waive,
modify or vary any term of such Mortgage Loan (including modifications that
would change the Mortgage Rate, forgive the payment of principal or interest,
extend the final maturity date of such Mortgage Loan (including modifications
that would change the Mortgage Rate, forgive the payment of principal or
interest, extend the final maturity date of such Mortgage Loan or waive, in
whole or in part, a Prepayment Charge)), accept payment from the related
Mortgagor of an amount less than the unpaid Principal Balance in final
satisfaction of such Mortgage Loan, or consent to the postponement of strict
compliance with any such term or otherwise grant indulgence to any Mortgagor
(any and all such waivers, modifications, variances, forgiveness of principal or
interest, postponements, or indulgences collectively referred to herein as
"forbearance"); provided, however, that the final maturity date of any Mortgage
Loan may not be extended beyond the Assumed Final Distribution Date. The
Servicer's analysis supporting any forbearance and the conclusion that any
forbearance meets the standards of this Section 3.01 shall be reflected in
writing in the Servicing File. Notwithstanding the foregoing, the Servicer shall
not permit any modification with respect to any Mortgage Loan that would both
(x) effect an exchange or reissuance of such Mortgage Loan under Section
1.860G-2(b) of the Treasury Regulations and (y) cause an Adverse REMIC Event.
The NIMS Insurer's prior written consent shall be required for any modification,
waiver or amendment if the aggregate number of outstanding Mortgage Loans which
have been modified, waived or amended exceeds 5% of the number of Mortgage Loans
as of the Cut-off Date. Without limiting the generality of the foregoing, the
Servicer shall continue, and is hereby authorized and empowered to execute and
deliver on behalf of itself, and the Trustee, all instruments of satisfaction or
cancellation, or of partial or full release, discharge and all other comparable
instruments, with respect to the Mortgage Loans and with respect to the
Mortgaged Property. The Servicer shall make all required Servicing Advances and

                                      -60-
<PAGE>

shall service and administer the Mortgage Loans in accordance with Applicable
Regulations, and shall provide to the Mortgagor any reports required to be
provided to them thereby. The Trustee shall execute and deliver to the Servicer
within at least fifteen (15) Business Days of receipt, upon request, any powers
of attorney furnished to it in the Trustee's standard and customary form by the
Servicer empowering the Servicer to execute and deliver instruments of
satisfaction or cancellation, or of partial or full release or discharge, and to
foreclose upon or otherwise liquidate any Mortgaged Property, and to appeal,
prosecute or defend in any court action relating to the Mortgage Loans or the
Mortgaged Properties, in accordance with this Agreement, and the Trustee shall
execute and deliver such other documents as the Servicer may request, necessary
or appropriate to enable the Servicer to service and administer the Mortgage
Loans and carry out its duties hereunder, in each case in accordance with
Servicing Standard (and the Trustee shall have no liability for misuse of any
such powers of attorney by the Servicer). Notwithstanding anything contained
herein to the contrary, the Servicer shall not without the Trustee's written
consent: (i) initiate any action, suit or proceeding solely under the Trustee's
name without indicating the Servicer's representative capacity or (ii) take any
action with the intent to cause, and which results in, the Trustee being
registered to do business in any state.

                  In servicing and administering the Mortgage Loans, the
Servicer shall employ procedures including collection procedures and exercise
the same care that it customarily employs and exercises in servicing and
administering mortgage loans for its own account giving due consideration to
accepted mortgage servicing practices of prudent lending institutions and the
Certificateholders' reliance on the Servicer.

                  The Servicer shall give prompt notice to the Trustee of any
action, of which the Servicer has actual knowledge, to (i) assert a claim
against the Trust Fund or (ii) assert jurisdiction over the Trust Fund.

                  To the extent consistent with the terms of this Agreement, the
Servicer may waive (or permit a subservicer to waive) a Prepayment Charge only
under the following circumstances: (i) such waiver relates to a default or a
reasonably foreseeable default and would, in the reasonable judgment of the
Servicer, maximize recovery of total proceeds taking into account the value of
such Prepayment Charge and the related Mortgage Loan or (ii) such waiver is
required under state or federal law. The Servicer shall not waive any Prepayment
Charge unless it is waived in accordance with this paragraph.

                  The Servicer shall pay the amount of any Prepayment Charge (to
the extent not collected and remitted to the Collection Account pursuant to
Section 3.04(a) to the Securities Administrator, if (i) the representation in
Section 2.05(xii) is breached and such breach materially and adversely affects
the value of such Prepayment Charge or the interest therein of any
Certificateholders or the Trust, or (ii) the Servicer or any subservicer waives
any Prepayment Charge other than as permitted under the preceding paragraph. The
Servicer shall pay the amount of such Prepayment Charge (or portion thereof not
collected), determined in accordance with the Wells Fargo Prepayment Charge
Matrix, by depositing such amount into the Collection Account at the time that
the amount prepaid on the related Mortgage Loan is required to be deposited into
the Collection Account.

                  Section 3.02 Collection of Mortgage Loan Payments.

                  Continuously from the date hereof until the principal and
interest on all Mortgage Loans are paid in full or as long as the Mortgage Loan
remains subject to this Agreement, the Servicer will diligently collect all
payments due under each Mortgage Loan when the same shall become due and payable
and shall, to the extent such procedures shall be consistent with this Agreement
and Applicable Regulations, follow such collection procedures as it follows with
respect to mortgage loans comparable to the Mortgage Loans and held for its own
account. Further, the Servicer will take special care in ascertaining and
estimating on escrowed Mortgage Loans annual ground rents, taxes, assessments,
water rates, fire and hazard insurance premiums, mortgage insurance premiums,
and all other charges that, as provided in the Mortgage, will become due and
payable to that end that the installments payable by the Mortgagors will be
sufficient to pay such charges as and when they become due and payable.

                                      -61-
<PAGE>

                  Section 3.03 Realization Upon Defaulted Mortgage Loans.

                  In the event that any payment due under any Mortgage Loan is
not paid when the same becomes due and payable, or in the event the Mortgagor
fails to perform any other covenant or obligation under the Mortgage Loan and
such failure continues beyond any applicable grace period, the Servicer shall
take such action as it shall deem to be in the best interest of the
Certificateholders. With respect to any defaulted Mortgage Loan, the Servicer
shall have the right to review the status of the related forbearance plan and,
subject to the second paragraph of Section 3.01, may modify such forbearance
plan; including extending the Mortgage Loan repayment date for a period of one
year or reducing the Mortgage Interest Rate up to 50 basis points.

                  In connection with a foreclosure or other conversion, the
Servicer shall exercise such rights and powers vested in it hereunder and use
the same degree of care and skill in its exercise as prudent mortgage servicers
would exercise or use under the circumstances in the conduct of their own
affairs and consistent with Applicable Regulations and the Servicing Standard,
including, without limitation, advancing funds for the payment of taxes and
insurance premiums.

                  Notwithstanding the foregoing provisions of this Section 3.03,
with respect to any Mortgage Loan as to which the Servicer has received actual
notice of, or has actual knowledge of, the presence of any toxic or hazardous
substance on the related Mortgaged Property, the Servicer shall not either (i)
obtain title to such Mortgaged Property as a result of or in lieu of foreclosure
or otherwise, or (ii) otherwise acquire possession of, or take any other action
with respect to, such Mortgaged Property if, as a result of any such action, the
Trust would be considered to hold title to, to be a mortgagee-in-possession of,
or to be an owner or operator of such Mortgaged Property within the meaning of
the Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended from time to time, or any comparable law, unless the Servicer
has received the prior written consent of the NIMS Insurer and has received a
prudent report prepared by a Person who regularly conducts environmental audits
using customary industry standards, that:

                  A. such Mortgaged Property is in compliance with applicable
environmental laws or, if not, that it would be in the best economic interest of
the Certificateholders to take such actions as are necessary to bring the
Mortgaged Property into compliance therewith; and

                  B. there are no circumstances present at such Mortgaged
Property relating to the use, management or disposal of any hazardous
substances, hazardous materials, hazardous wastes, or petroleum-based materials
for which investigation, testing, monitoring, containment, clean-up or
remediation could be required under any federal, state or local law or
regulation, or that if any such materials are present for which such action
could be required, that it would be in the best economic interest of the
Certificateholders to take such actions with respect to the affected Mortgaged
Property.

                  The cost of the environmental audit report contemplated by
this Section 3.03 shall be advanced by the Servicer, subject to the Servicer's
right to be reimbursed therefor from the Collection Account as provided in
Section 3.05(a)(iv).

                  If the Servicer determines, as described above, that it is in
the best economic interest of the Certificateholders to take such actions as are
necessary to bring any such Mortgaged Property into compliance with applicable
environmental laws, or to take such action with respect to the containment,
clean-up or remediation of hazardous substances, hazardous materials, hazardous
wastes, or petroleum-based materials affecting any such Mortgaged Property, then
the Servicer shall take such action as it deems to be in the best economic
interest of the Certificateholders. The cost of any such compliance,
containment, clean-up or remediation shall be advanced by the Servicer, subject
to the Servicer's right to be reimbursed therefor from the Collection Account as
provided in Section 3.05(a).

                  Section 3.04 Collection Accounts, Distribution Account and
Reserve Accounts.

                  (a) The Servicer 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 certain Collection
Accounts. Each Collection Account shall be an Eligible Account.

                                      -62-
<PAGE>

                  The Servicer shall deposit or cause to be deposited on a daily
basis and in no event more than two Business Days after receipt thereof in the
clearing account (which must be an Eligible Account) in which it customarily
deposits payments and collections on mortgage loans in connection with its
mortgage loan servicing activities, and shall thereafter deposit in the
Collection Account, in no event more than two Business Days after deposit of
such funds in the clearing account, and retain therein, the following payments
and collections received or made by it after the Cut-off Date with respect to
the Mortgage Loans (other than in respect of principal and interest due on or
before the Cut-off Date):

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

                  (ii) all payments on account of interest on the Mortgage
         Loans, adjusted to the Mortgage Interest Rate less the Servicing Fee
         Rate;

                  (iii) all Liquidation Proceeds and any Subsequent Recoveries;

                  (iv) all Insurance Proceeds (including proceeds from any LPMI
         Policies) including amounts required to be deposited pursuant to
         Section 3.10, 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 the Servicer's normal
         servicing procedures, the loan documents or applicable law;

                  (v) all Condemnation Proceeds affecting any Mortgaged Property
         which are not released to the Mortgagor in accordance with the
         Servicer's normal servicing procedures, the loan documents or
         applicable law;

                  (vi) any amounts required to be deposited by the Servicer in
         connection with any REO Property pursuant to Section 3.13;

                  (vii) all Prepayment Charges collected by the Servicer in
         connection with the voluntary Principal Prepayment in full of any
         Mortgage Loan and all Servicer Prepayment Charge Payment Amounts
         required to be paid by the Servicer pursuant to Section 3.01 in
         connection with any such Principal Prepayment; and

                  (viii) all amounts required to be deposited by the Servicer
         pursuant to Section 2.03.

                  Any interest paid on funds deposited in the Collection
Accounts, subject to Section 3.25, shall accrue to the benefit of the Servicer
and the Servicer shall be entitled to retain and withdraw such interest from the
Collection Accounts pursuant to Section 3.05(a)(v) and 3.05(b)(iii), as
applicable. The foregoing requirements for deposit into the Collection 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, bad
check fees, prepayment charges that are not Prepayment Charges or Servicer
Prepayment Charge Payment Amounts, assumption fees and other similar fees need
not be deposited by the Servicer into the Collection Account. Amounts deposited
in the Collection Accounts in error may be withdrawn by the Servicer at any
time.

                                      -63-
<PAGE>

                  (b) On behalf of the Trust Fund, the Securities Administrator
shall establish and maintain one or more accounts (such account or accounts, the
"Distribution Account"), held in trust for the benefit of the
Certificateholders. On behalf of the Trust Fund, the Servicer shall deliver to
the Securities Administrator in immediately available funds for deposit in the
Distribution Account by 1:00 p.m. New York time on the Servicer Remittance Date,
(i) that portion of the Available Funds (calculated without regard to the
references in the definition thereof to amounts that may be deposited to the
Distribution Account from a different source as provided herein) then on deposit
in the Collection Accounts and (ii) the amount of all Prepayment Charges
collected by the Servicer and all Servicer Prepayment Charge Payment Amounts
required to be paid by the Servicer in connection with the voluntary Principal
Prepayment in full of any of the Mortgage Loans then on deposit in the
Collection Account (other than any such Prepayment Charges received and Servicer
Prepayment Charge Payment Amounts paid after the related Prepayment Period).
Amounts in the Distribution Account shall be deemed to be held on behalf of the
related REMICs and the Grantor Trust in accordance with the REMIC distributions
set forth in Section 4.08. The Securities Administrator shall be entitled to
withdraw from the Distribution Account any amounts owing to it pursuant to
Section 8.05 and Section 9.01(c) prior to the distribution of any amounts on
deposit to the Certificateholders; provided, however, in the case of amounts
owing to it, the Securities Administrator shall provide the Depositor, the NIMS
Insurer and the Trustee with a written account of such amounts within ten (10)
Business Days following the withdrawal of such funds and, provided further, that
the Securities Administrator shall not be entitled to withdraw such amounts for
funds on deposit in the Distribution Account representing Prepayment Charges and
Servicer Prepayment Charge Payment Amounts. In connection with any failure by
the Servicer to make any remittance required to be made by the Servicer to the
Securities Administrator for deposit in the Distribution Account on the day and
by the time such remittance is required to be made under the terms of this
Section 3.04(b) (without giving effect to any grace or cure period), the
Servicer shall pay to the Securities Administrator for the account of the
Securities Administrator interest at the prime rate of United States money
center commercial banks as published in The Wall Street Journal on any amount
not timely remitted from and including the day such remittance was required to
be made to, but not including, the day on which such remittance was actually
made.

                  (c) Funds on deposit in the Collection Accounts and the
Distribution Account may be invested in Eligible Investments in accordance with
the provisions set forth in Section 3.25. The Servicer shall give notice to the
Securities Administrator (and the Securities Administrator shall give a copy of
such notice to the Trustee and the NIMS Insurer) of the location of the
Collection Accounts maintained by it when established and prior to any change
thereof. The Securities Administrator shall give notice to the Servicer, the
Trustee, the NIMS Insurer and the Depositor of the location of the Distribution
Account when established and prior to any change thereof.

                  (d) In the event the Servicer shall deliver to the Securities
Administrator for deposit in the Distribution Account any amount not required to
be deposited therein, it may at any time request that the Securities
Administrator withdraw such amount from the Distribution Account and remit to
the Servicer any such amount, any provision herein to the contrary
notwithstanding. In addition, the Servicer shall deliver to the Securities
Administrator from time to time for deposit, and the Securities Administrator
shall so deposit, in the Distribution Account in respect of REMIC 1:

                  (i) any Advances, as required pursuant to Section 4.07;

                  (ii) any Stayed Funds, as soon as permitted by the federal
         bankruptcy court having jurisdiction in such matters;

                  (iii) any amounts required to be delivered by the Servicer to
         the Securities Administrator for deposit in the Distribution Account
         pursuant to Sections 2.03, 3.04, 3.13, 3.15, 3.16, 3.23, 3.24, 4.07 or
         10.01; and

                  (iv) any amounts required to be deposited by the Servicer
         pursuant to Section 3.11 in connection with the deductible clause in
         any blanket hazard insurance policy, such deposit being made from the
         Servicer's own funds, without reimbursement therefor.

                  (e) Promptly upon receipt of any Stayed Funds, whether from
the Servicer, a trustee in bankruptcy, or federal bankruptcy court or other
source, the Trustee shall, unless such funds have been received from the
Servicer, notify the Servicer of such receipt and deposit such funds in the
Distribution Account, subject to withdrawal thereof as permitted hereunder. In
addition, the Securities Administrator shall deposit in the Distribution Account
any amounts required to be deposited pursuant to Section 3.25(b) in connection
with losses realized on Eligible Investments with respect to funds held in the
Distribution Account.

                  (f) Any Servicer Prepayment Charge Payment Amounts deposited
pursuant to Section 3.04(a)(vii) shall not be assets of any REMIC created
hereunder, but shall be considered assets of the Grantor Trust held by the
Trustee for the benefit of the Class P Certificateholders.

                  (g) (i) The Securities Administrator shall establish and
maintain the Class A-1 Reserve Account, held in trust for the benefit of the
Holders of the Class A-1 Certificates. The Securities Administrator shall
deposit in the Class A-1 Reserve Account on the date received by it, any Class
A-1 Yield Maintenance Agreement Payment received from the Yield Maintenance
Agreement Provider for the related Distribution Date.

                  The Securities Administrator shall establish and maintain the
Class A-2A, Class A-2B and Class A-2C Reserve Account, held in trust for the
benefit of the Holders of the Class A-2A, Class A-2B and Class A-2C
Certificates. The Securities Administrator shall deposit in the Class A-2A,
Class A-2B and Class A-2C Reserve Account on the date received by it, any Class
A-2A, Class A-2B and Class A-2C Yield Maintenance Agreement Payment received
from the Yield Maintenance Agreement Provider for the related Distribution Date.

                                      -64-
<PAGE>

         The Securities Administrator shall establish and maintain the Class M
and Class B Reserve Account, held in trust for the benefit of the Holders of the
Class M and Class B Certificates. The Securities Administrator shall deposit in
the Class M and Class B Reserve Account on the date received by it, any Class M
and Class B Yield Maintenance Agreement Payment received from the Yield
Maintenance Agreement Provider for the related Distribution Date.

         Funds in the Reserve Accounts shall remain uninvested.

         By the end of business on the third Business Day preceding each
Distribution Date, the Securities Administrator shall notify the Yield
Maintenance Agreement Provider of any Class M and Class B Yield Maintenance
Agreement Payment which, if not reduced in accordance with "TRADE
DETAILS--Floating Amounts--Reduction" under the Class M and Class B Yield
Maintenance Agreement attached hereto as Exhibit N-3, would be distributable on
such Distribution Date in respect of Class B-3 Certificates that are not
Book-Entry Certificates. For purposes of this paragraph, the Securities
Administrator shall be entitled to assume that no such Class M and Class B Yield
Maintenance Agreement Payment would be distributable in respect of Class B-3
Certificates that are not Book-Entry Certificates until the Securities
Administrator has received notice from the Depositor that the conditions
requiring the reduction in such payment no longer apply, which notice must be
received no later than the fifth Business Day prior to the related Distribution
Date. On each Distribution Date, the Securities Administrator shall withdraw
from the Class A-1 Reserve Account any Class A-1 Yield Maintenance Agreement
Payment, shall withdraw from the Class A-2A, Class A-2B and Class A-2C Reserve
Account any Class A-2A, Class A-2B and Class A-2C Yield Maintenance Agreement
Payment and shall withdraw from the Class M and Class B Reserve Account any
Class M and Class B Yield Maintenance Agreement Payment and apply them in the
following order of priority:

                  (A) to the Class A-1 Certificates from the Class A-1 Reserve
Account, any remaining unpaid Cap Carryover Amounts for such Distribution Date
(after distributions to the Class A-1 Certificates pursuant to Section
4.02(b)(xlii) hereof), distributed based on the unpaid Cap Carryover Amount for
such Class;

                  (B) to the Class A-2A, Class A-2B and Class A-2C Certificates
from the Class A-2A, Class A-2B and Class A-2C Reserve Account,

                      (1) in each case only up to the Class A-2A, Class A-2B and
                  Class A-2C Cap Amount, any remaining unpaid Cap Carryover
                  Amounts for such Classes for such Distribution Date (after
                  distributions to the Class A-2A, Class A-2B and Class A-2C
                  Certificates pursuant to Section 4.02(b)(xlii) hereof),
                  distributed pro rata, to each of the Class A-2A, Class A-2B
                  and Class A-2C Certificates; and

                      (2) any remaining unpaid Cap Carryover Amounts for such
                  Classes for such Distribution Date (after distributions to the
                  Class A-2A, Class A-2B and Class A-2C Certificates pursuant to
                  Section 4.02(b)(xlii) hereof and clause (B)(1) above)
                  distributed pro rata, to each of the Class A-2A, Class A-2B
                  and Class A-2C Certificates based on the unpaid Cap Carryover
                  Amount for such class;

                  (C) to the Class M and Class B Certificates (other than Class
B-3 Certificates that are not Book-Entry Certificates) from the Class M and
Class B Reserve Account,

                      (1) in each case only up to the Class M and Class B Cap
                  Amount, any remaining unpaid Cap Carryover Amounts for such
                  Classes for such Distribution Date (after distributions to the
                  Class M and Class B Certificates pursuant to Section
                  4.02(b)(xlii) hereof), distributed sequentially, to the Class
                  M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6,
                  Class M-7, Class M-8, Class M-9, Class M-10 and Class B
                  Certificates (other than Class B-3 Certificates that are not
                  Book-Entry Certificates), in that order; and

                                      -65-
<PAGE>

                      (2) any remaining unpaid Cap Carryover Amounts for such
                  Classes for such Distribution Date (after distributions to the
                  Class M and Class B Certificates pursuant to Section
                  4.02(b)(xlii) hereof and clause (C)(1) above) distributed
                  sequentially, to the Class M-1, Class M-2, Class M-3, Class
                  M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9,
                  Class M-10 and Class B Certificates (other than Class B-3
                  Certificates that are not Book-Entry Certificates), in that
                  order; and

                  (D) to the Class CE Certificates, any remaining amount on
deposit in the Reserve Accounts.

                  (ii) The Securities Administrator shall account for each
         Reserve Account as an asset of a grantor trust under subpart E, part I
         of subchapter J of the Code and not an asset of any REMIC created
         pursuant to this Agreement. The beneficial owner of each Reserve
         Account is the Class CE Certificateholder. For all federal tax
         purposes, amounts transferred or reimbursed by REMIC 2 to either
         Reserve Account shall be treated as distributions by the Securities
         Administrator to the Class CE Certificateholder.

                  (iii) Any Cap Carryover Amounts paid by the Securities
         Administrator pursuant to this Section 3.04(g) to the Class A, Class M
         and Class B Certificates, shall be accounted for by the Securities
         Administrator as amounts paid first to the Class CE Certificates and
         then to the respective Class or Classes of the Class A, Class M and
         Class B Certificates from the Grantor Trust. In addition, the Trustee
         shall account for the related Class A, Class M and Class B
         Certificates' rights to receive payments of Cap Carryover Amounts as
         rights in limited recourse interest rate cap contracts written by the
         Class CE Certificates in favor of the related Classes of Class A, Class
         M and Class B Certificates.

                  (iv) For federal tax return and information reporting, the
         right of the Holders of the Class A, Class M and Class B Certificates
         to receive payments under the Class A-1 Yield Maintenance Agreement,
         the Class A-2A, Class A-2B and Class A-2C Yield Maintenance Agreement
         and the Class M and Class B Yield Maintenance Agreement in respect of
         any related Yield Maintenance Agreement Payments shall be assigned a
         value of zero.

                  Section 3.05 Permitted Withdrawals From the Collection
Accounts.

                  The Servicer may, from time to time, withdraw from the
Collection Account for the following purposes:

                  (a) to remit to the Securities Administrator for deposit in
the Distribution Account the amounts required to be so remitted pursuant to
Section 3.04(b) or permitted to be so remitted pursuant to the first sentence of
Section 3.04(d);

                  (b) to reimburse itself for (a) any unreimbursed Advances to
the extent of amounts received which represent Late Collections (net of the
related Servicing Fees) of Monthly Payments, Liquidation Proceeds and Insurance
Proceeds on Mortgage Loans with respect to which such Advances were made in
accordance with the provisions of Section 4.07; (b) any unreimbursed Advances
with respect to the final liquidation of a Mortgage Loan that are Nonrecoverable
Advances, but only to the extent that Late Collections, Liquidation Proceeds and
Insurance Proceeds received with respect to such Mortgage Loan are insufficient
to reimburse the Servicer for such unreimbursed Advances; or (c) subject to
Section 4.07(b), any unreimbursed Advances to the extent of funds held in the
Collection Account for future distribution that were not included in Available
Funds for the preceding Distribution Date;

                  (c) to reimburse itself for (a) any unpaid Servicing Fees, (b)
any unreimbursed Servicing Advances with respect to each Mortgage Loan, but only
to the extent of any Late Collections, Liquidation Proceeds, Insurance Proceeds
and condemnation proceeds received with respect to such Mortgage Loan, and (c)
any Servicing Advances with respect to the final liquidation of a Mortgage Loan
that are Nonrecoverable Advances, but only to the extent that Late Collections,
Liquidation Proceeds and Insurance Proceeds received with respect to such
Mortgage Loan are insufficient to reimburse the Servicer for Servicing Advances;

                                      -66-
<PAGE>

                  (d) to reimburse itself for any amounts paid or expenses
incurred pursuant to Section 3.03 (and not otherwise previously reimbursed);

                  (e) to pay to itself as servicing compensation (a) any
interest earned on funds in the Collection Account (all such interest to be
withdrawn monthly not later than each Servicer Remittance Date), and (b) the
Servicing Fee from that portion of any payment or recovery as to interest to a
particular Mortgage Loan to the extent not retained pursuant to Section
3.04(a)(ii);

                  (f) to pay or reimburse itself for any amounts payable or paid
pursuant to Section 6.03 (and not otherwise previously reimbursed); and

                  (g) to clear and terminate the Collection Account upon the
termination of this Agreement.

                  The foregoing requirements for withdrawal from each of the
Collection Accounts shall be exclusive. In the event the Servicer shall deposit
in either Collection Account any amount not required to be deposited therein, it
may at any time withdraw such amount from such Collection Account, any provision
herein to the contrary notwithstanding.

                  Section 3.06 Establishment of Escrow Accounts; Deposits in
Escrow Accounts.

                  The Servicer 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, in the form of time deposit
or demand accounts. A copy of such letter agreement shall be furnished to the
Trustee upon request. The Escrow Account shall be an Eligible Account.

                  The Servicer shall deposit or cause to be deposited on a daily
basis and in no event more than two Business Days after receipt thereof in the
clearing account (which must be an Eligible Account) in which it customarily
deposits payments and collections on mortgage loans in connection with its
mortgage loan servicing activities, and shall thereafter deposit in the Escrow
Account or Accounts, in no event more than two Business Days after deposit of
such funds in the clearing account, and retain therein, (i) all Escrow Payments
collected on account of the Mortgage Loans, for the purpose of effecting timely
payment of any such items as required under the terms of this Agreement, and
(ii) all Insurance Proceeds which are to be applied to the restoration or repair
of any Mortgaged Property. The Servicer shall make withdrawals therefrom only to
effect such payments as are required under this Agreement, and for such other
purposes as shall be set forth in, or in accordance with, Section 3.07. The
Servicer shall be entitled to retain any interest paid on funds deposited in the
Escrow Account by the depository institution other than interest on escrowed
funds required by law to be paid to the Mortgagor and, to the extent required by
the related Mortgage Loan or Applicable Regulations, the Servicer shall pay
interest on escrowed funds to the Mortgagor notwithstanding that the Escrow
Account is non-interest bearing or that interest paid thereon is insufficient
for such purposes.

                                      -67-
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                  Section 3.07 Permitted Withdrawals From Escrow Account.

                  Withdrawals from the Escrow Account may be made by the
Servicer (i) to effect timely payments of ground rents, taxes, assessments,
water rates, fire, flood and hazard insurance premiums and comparable items in a
manner and at a time that assures that the lien priority of the Mortgage is not
jeopardized (or, with respect to the payment of taxes, in a manner and at a time
that avoids the loss of the Mortgaged Property due to a tax sale or the
foreclosure as a result of a tax lien), (ii) to reimburse the Servicer for any
Servicing Advance made by the Servicer with respect to a related Mortgage Loan
but only from amounts received on the related Mortgage Loan which represent late
payments or Late Collections of Escrow Payments thereunder with respect to taxes
and assessments and with respect to hazard insurance, (iii) to refund to the
Mortgagor any funds as may be determined to be overages, (iv) for transfer to
the Collection Account in accordance with the terms of this Agreement, (v) for
application to restoration or repair of the Mortgaged Property, (vi) to pay to
the Servicer, or to the Mortgagor to the extent required by the related Mortgage
Loan or Applicable Regulations, any interest paid on the funds deposited in the
Escrow Account, (vii) to clear and terminate the Escrow Account on the
termination of this Agreement, or (viii) to transfer to the Collection Account
any insurance proceeds. As part of its servicing duties, the Servicer shall pay
to the Mortgagor interest on funds in the Escrow Account, to the extent required
by the related Mortgage Loan or Applicable Regulations, and to the extent that
interest earned on funds in the Escrow Account is insufficient, shall pay such
interest from its own funds, without any reimbursement therefor.

                  In the event the Servicer shall deposit in the Escrow Account
any amount not required to be deposited therein, it may at any time withdraw
such amount from the Escrow Account, any provision herein to the contrary
notwithstanding.

                  Section 3.08 Payment of Taxes, Insurance and Other Charges;
Collections Thereunder.

                  With respect to each Mortgage Loan that provides for Escrow
Payments, the Servicer shall maintain accurate records reflecting the status of
ground rents, taxes, assessments, water rates and other charges which are or may
become a lien upon the Mortgaged Property and the status of fire, flood and
hazard insurance coverage and shall obtain, from time to time, all bills for the
payment of such charges (including renewal premiums) and shall effect payment of
taxes, assessments, hazard insurance premiums, and comparable items in a manner
and at a time that assures that the lien priority of the Mortgage is not
jeopardized (or, with respect to the payment of taxes, in a manner and at a time
that avoids the loss of the Mortgaged Property due to a tax sale or the
foreclosure as a result of a tax lien). To the extent that a Mortgage does not
provide for Escrow Payments, the Servicer (i) shall determine whether any such
payments are made by the Mortgagor in a manner and at a time that is necessary
to avoid the loss of the Mortgaged Property due to a tax sale or the foreclosure
as a result of a tax lien and (ii) shall ensure that all insurance required to
be maintained on the Mortgaged Property pursuant to this Agreement is
maintained. If any such payment has not been made and the Servicer receives
notice of a tax lien with respect to the Mortgage Loan being imposed, the
Servicer will, promptly and to the extent required to avoid loss of the
Mortgaged Property, advance or cause to be advanced funds necessary to discharge
such lien on the Mortgaged Property. The Servicer assumes full responsibility
for the payment of all such bills and shall effect payments of all such bills
irrespective of the Mortgagor's faithful performance in the payment of same or
the making of the Escrow Payments and shall make Servicing Advances from its own
funds to effect such payments.

                  Section 3.09 Transfer of Accounts.

                  The Servicer may transfer the Collection Accounts and the
Escrow Account to a different depository institution from time to time. Upon
such transfer, the Servicer shall deliver to the Securities Administrator a
certification or letter agreement, as the case may be, as required pursuant to
Sections 3.04 and 3.06. The Securities Administrator shall deliver a copy of any
such certification or letter agreement to the Trustee and the NIMS Insurer.

                                      -68-
<PAGE>

                  Section 3.10 Maintenance of Hazard Insurance.

                  The Servicer 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 which is at least
equal to the lesser of (i) the amount necessary to fully compensate for any
damage or loss to the improvements which are a part of such property on a
replacement cost basis or (ii) the Principal Balance of the Mortgage Loan, in
each case in an amount not less than such amount as is necessary 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 flood insurance has been
made available, the Servicer will cause to be maintained a flood insurance
policy meeting the requirements of the current guidelines of the Federal
Insurance Administration with a generally acceptable insurance carrier, in an
amount representing coverage not less than the least of (i) the Principal
Balance of the Mortgage Loan, (ii) the maximum insurable value of the
improvements securing such Mortgage Loan or (iii) the maximum amount of
insurance which is available under the National Flood Insurance Act of 1968, as
amended. The Servicer shall also maintain on the REO Properties for the benefit
of the Certificateholders, (x) fire and hazard insurance with extended coverage
in an amount which is at least equal to the lesser of (i) 100% of the maximum
insurable value of the improvements securing the Mortgage Loan and (ii) the
outstanding Principal Balance of the Mortgage Loan at the time it became an REO
Property, (y) public liability insurance and, (z) to the extent required and
available under the National Flood Insurance Act of 1968, as amended, flood
insurance in an amount as provided above. Any amounts collected by the Servicer
under any such policies other than amounts to be deposited in the Escrow Account
and applied to the restoration or repair of the Mortgaged Property or REO
Property, or released to the Mortgagor in accordance with the Servicer's normal
servicing procedures, shall be deposited in the Collection Account, subject to
withdrawal pursuant to Section 3.05(a). It is understood and agreed that no
earthquake or other additional insurance is required to be maintained by the
Servicer or the Mortgagor or maintained on property acquired in respect of the
Mortgage Loan, other than pursuant to such Applicable Regulations as shall at
any time be in force and as shall require such additional insurance. All such
policies shall be endorsed with standard mortgagee clauses with loss payable to
the Servicer and shall provide for at least thirty days prior written notice of
any cancellation, reduction in the amount of or material change in coverage to
the Servicer. The Servicer shall not interfere with the Mortgagor's freedom of
choice in selecting either his insurance carrier or agent, provided, however,
that the Servicer shall not accept any such insurance policies from insurance
companies unless such companies currently reflect a general policy rating of A:X
or better in Best's Key Rating Guide and are licensed to do business in the
state wherein the property subject to the policy is located.

                                      -69-
<PAGE>

                  Section 3.11 Maintenance of Mortgage Impairment Insurance
Policy.

                  In the event that the Servicer shall obtain and maintain a
blanket policy issued by an insurer acceptable to Fannie Mae and Freddie Mac and
that has a general policy rating of A:X or better in Best's Key Rating Guide
insuring against hazard losses on all of the Mortgage Loans, then, to the extent
such policy provides coverage in an amount equal to the amount required pursuant
to Section 3.10 and otherwise complies with all other requirements of Section
3.10, it shall conclusively be deemed to have satisfied its obligations as set
forth in Section 3.10, it being understood and agreed that such policy may
contain a deductible clause, in which case the Servicer shall, in the event that
there shall not have been maintained on the related Mortgaged Property or REO
Property a policy complying with Section 3.10, and there shall have been a loss
which would have been covered by such policy, deliver to the Securities
Administrator for deposit in the Distribution Account the amount not otherwise
payable under the blanket policy because of such deductible clause, which amount
shall not be reimbursable to the Servicer from the Trust Fund. In connection
with its activities as servicer of the Mortgage Loans, the Servicer agrees to
prepare and present, on behalf of the Trustee, claims under any such blanket
policy in a timely fashion in accordance with the terms of such policy. Upon
request of the Trustee or the Securities Administrator, the Servicer shall cause
to be delivered to such party a certified true copy of such policy and a
statement from the insurer thereunder that such policy shall in no event be
terminated or materially modified without thirty days prior written notice to
the Trustee and the Securities Administrator.

                  Section 3.12 Fidelity Bond, Errors and Omissions Insurance.

                  The Servicer shall maintain, at its own expense, a blanket
fidelity bond (the "Fidelity Bond") and an errors and omissions insurance
policy, with broad coverage with financially responsible companies on all
officers, employees or other persons acting in any capacity with regard to the
Mortgage Loans to handle funds, money, documents and papers relating to the
Mortgage Loans. 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 the
Servicer against losses, including forgery, theft, embezzlement, fraud, errors
and omissions and negligent acts of such persons. Such Fidelity Bond shall also
protect and insure the Servicer against losses in connection with the failure to
maintain any insurance policies required pursuant to this Agreement and the
release or satisfaction of a Mortgage Loan without having obtained payment in
full of the indebtedness secured thereby. No provision of this Section 3.12
requiring the Fidelity Bond and errors and omissions insurance shall diminish or
relieve the Servicer from its duties and obligations as set forth in this
Agreement. The minimum coverage under any such bond and insurance policy shall
be at least equal to the corresponding amounts required by Fannie Mae in the
Fannie Mae MBS Selling and Servicing Guide or by Freddie Mac in the Freddie Mac
Servicer's Guide, unless the Servicer has obtained a waiver of such requirements
from Fannie Mae or Freddie Mac. Upon request of the Trustee, the Securities
Administrator or the NIMS Insurer, the Servicer shall cause to be delivered to
the requesting party a certified true copy of the Fidelity Bond and errors and
omissions insurance policy and a statement from the surety and the insurer that
such Fidelity Bond and errors and omissions insurance policy shall in no event
be terminated or materially modified without thirty days' prior written notice
to the Trustee and the Securities Administrator.

                                      -70-
<PAGE>

                  Section 3.13 Title, Management and Disposition of REO
Property.

                  (a) In the event that title to a Mortgaged Property is
acquired in foreclosure or by deed in lieu of foreclosure, the deed or
certificate of sale shall be taken (pursuant to a limited power of attorney to
be provided by the Trustee to the Servicer) in the name of the Trustee or its
nominee, on behalf of the Certificateholders, or in the event the Trustee 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 or Persons as shall be
consistent with an Opinion of Counsel obtained by the Servicer from an attorney
duly licensed to practice law in the state where the REO Property is located.
Any Person or Persons holding such title other than the Trustee shall
acknowledge in writing that such title is being held as nominee for the benefit
of the Trustee.

                  (b) In the event that the Trust Fund acquires any REO Property
as aforesaid or otherwise in connection with a default or imminent default on a
Mortgage Loan, the Servicer shall dispose of such REO Property before the end of
the third taxable year beginning after the year of its acquisition by the Trust
Fund for purposes of Section 860G(a)(8) of the Code unless the Servicer has
received a grant of extension from the Internal Revenue Service of the
above-mentioned grace period such that the holding by the Trust Fund of such REO
Property subsequent to such period will not: (i) result in the imposition of any
tax on "prohibited transactions" as defined in Section 860F of the Code; (ii)
cause any REO Property to fail to qualify as "foreclosure property" within the
meaning of Section 860G(a)(8) of the Code; or (iii) cause any REMIC constituting
any part of the Trust Fund to fail to qualify as a REMIC at any time that any
Certificates are outstanding, in which case the Trust Fund may continue to hold
such REO Property.

                  Subject to compliance with applicable laws and regulations as
shall at any time be in force, and notwithstanding any other provisions of this
Agreement, no REO Property acquired by the Trust Fund shall be rented (or
allowed to continue to be rented) or otherwise used by or on behalf of the Trust
Fund in such a manner or pursuant to any terms that would: (i) cause such REO
Property to fail to qualify as "foreclosure property" within the meaning of
Section 860G(a)(8) of the Code; or (ii) subject any REMIC constituting part of
the Trust Fund to the imposition of any federal or state income taxes on the
income earned from such REO Property, including any taxes imposed by reason of
Sections 860F or 860G(c) of the Code, unless the Servicer has agreed to
indemnify and hold harmless the Trust Fund with respect to the imposition of any
such taxes.

                  The Servicer shall manage, conserve, protect and operate each
REO Property for the Certificateholders and the Trust Fund solely for the
purpose of its prompt disposition and sale in a manner which does not cause such
REO Property to fail to qualify as "foreclosure property" within the meaning of
Section 860G(a)(8) of the Code or result in the receipt by the related REMIC of
any "income from non-permitted assets" within the meaning of Section
860F(a)(2)(B) of the Code, or any "net income from foreclosure property" which
is subject to taxation under the REMIC Provisions. The Servicer shall cause each
REO Property to be inspected promptly upon the acquisition of title thereto and
shall cause each REO Property to be inspected at least annually thereafter. The
Servicer shall make or cause to be made a written or electronic report of each
such inspection. Such reports shall be retained in the Mortgage File and copies
thereof shall be forwarded by the Servicer to the Trustee upon request. The
Servicer shall attempt to sell the same (and may temporarily rent the same) on
such terms and conditions as the Servicer deems to be in the best interest of
the Certificateholders and the Trust Fund.

                  With respect to each REO Property, the Servicer shall account
separately for each REO Property with respect to all funds collected and
received in connection with the operation of such REO Property.

                                      -71-
<PAGE>

                  The income earned from the management of any REO Properties,
net of reimbursement to the Servicer for expenses incurred (including any
property or other taxes) in connection with such management and net of
unreimbursed Servicing Fees, Advances and Servicing Advances related thereto,
shall be applied to the payment of principal of and interest on the related
defaulted Mortgage Loans (with interest accruing as though such Mortgage Loans
were still current) and all such income shall be deemed, for all purposes in
this Agreement, to be payments on account of principal and interest on the
related Mortgage Notes and shall be deposited into the Collection Account. To
the extent the net income received during any calendar month is in excess of the
amount on a daily basis, within two Business Days of receipt attributable to
amortizing principal and accrued interest at the related Mortgage Rate on the
related Mortgage Loan for such calendar month, such excess shall be considered
to be a partial prepayment of principal of the related Mortgage Loan.

                  The proceeds from any liquidation of a Mortgage Loan, as well
as any income from an REO Property, will be applied in the following order of
priority: first, to reimburse the Servicer for any related unreimbursed
Servicing Advances and Servicing Fees; second, to reimburse the Servicer for any
related unreimbursed Advances; third, to reimburse the Certificate Account for
any Nonrecoverable Advances (or portions thereof) that were previously withdrawn
by the Servicer pursuant to Section 3.05(a)(ii)(b) and 3.05(a)(iii)(c) that
related to such Mortgage Loan; fourth, to accrued and unpaid interest (to the
extent no Advance has been made for such amount or any such Advance has been
reimbursed) on the Mortgage Loan or related REO Property, at the Mortgage Rate
(net of the Servicing Fee) to the Due Date occurring in the month in which such
amounts are required to be distributed; and fifth, as a recovery of principal of
the Mortgage Loan.

                  The Servicer shall furnish to the Securities Administrator, on
each Servicer Remittance Date, an operating statement for each REO Property
covering the operation of each REO Property for the previous month. Such
operating statement shall be accompanied by such other information as the
Securities Administrator shall reasonably request.

                  The Servicer shall use its best efforts to dispose of the REO
Property as promptly as is practically consistent with protecting the
Certificateholders' interests.

                  Each REO Disposition shall be carried out by the Servicer at
such price and upon such terms and conditions as the Servicer deems to be in the
best interest of the Certificateholders. If as of the date title to any REO
Property was acquired by the Servicer there were outstanding unreimbursed
Servicing Advances, Servicing Fees and Advances with respect to the REO
Property, the Servicer, upon an REO Disposition of such REO Property, shall be
entitled to reimbursement for any related unreimbursed Servicing Advances,
Servicing Fees and Advances from proceeds received in connection with such REO
Disposition. The proceeds from the REO Disposition, net of any payment to the
Servicer as provided above, shall be deposited in the Collection Account for
transfer to the Distribution Account on the succeeding Servicer Remittance Date
in accordance with Section 3.04(a)(vi).

                  Any REO Disposition shall be for cash only (unless changes in
the REMIC Provisions made subsequent to the Startup Day allow a sale for other
consideration and an Opinion of Counsel is obtained by the Servicer to the
effect that such sale shall not cause any REMIC constituting part of the Trust
Fund to fail to qualify as a REMIC).

                                      -72-
<PAGE>

                  Section 3.14 Due-on-Sale Clauses; Assumption and Substitution
Agreements.

                  When a Mortgaged Property has been or is about to be conveyed
by the Mortgagor, the Servicer shall, to the extent it has knowledge of such
conveyance or prospective conveyance, exercise its rights to accelerate the
maturity of the related Mortgage Loan under any "due-on-sale" clause contained
in the related Mortgage or Mortgage Note; provided, however, that the Servicer
shall not exercise any such right if the "due-on-sale" clause, in the reasonable
belief of the Servicer, is not enforceable under applicable law. An Opinion of
Counsel of the Servicer (the costs of which shall constitute a reimbursable
Servicing Advance) delivered to the Trustee, the Depositor and the NIMS Insurer
shall conclusively establish the reasonableness of the Servicer's belief that
any "due-on-sale" clause is not enforceable under applicable law. In such event,
the Servicer shall make reasonable efforts to enter into an assumption and
modification agreement with the Person to whom such property has been or is
about to be conveyed, pursuant to which such Person becomes liable under the
Mortgage Note and, unless prohibited by applicable law or the Mortgage, the
Mortgagor remains liable thereon. If the foregoing is not permitted under
applicable law, the Servicer is authorized to enter into a substitution of
liability agreement with such Person, pursuant to which the original Mortgagor
is released from liability and such Person is substituted as Mortgagor and
becomes liable under the Note; provided that no such substitution will be
permitted unless such person satisfies the underwriting criteria of the Servicer
and has a credit score at least equal to that of the original Mortgagor. The
Mortgage Loan, as assumed, shall conform in all respects to the requirements,
representations and warranties of this Agreement. The Servicer shall not take or
enter into any assumption and modification agreement, however, unless (to the
extent practicable under the circumstances) it shall have received confirmation,
in writing, of the continued effectiveness of any applicable hazard insurance
policy. The Servicer shall notify the Trustee (or the Custodian on behalf of the
Trustee) that any such assumption or substitution agreement has been completed
by forwarding to the Trustee (or Custodian on behalf of the Trustee) the
original copy of such assumption or substitution agreement (indicating the
Mortgage File to which it relates) which copy shall be added by the Trustee (or
the Custodian on behalf of the Trustee) to the related Mortgage File and which
shall, for all purposes, be considered a part of such Mortgage File to the same
extent as all other documents and instruments constituting a part thereof. The
Servicer shall be responsible for recording any such assumption or substitution
agreements. In connection with any such assumption or substitution agreement,
the Monthly Payment on the related Mortgage Loan shall not be changed but shall
remain as in effect immediately prior to the assumption or substitution, the
stated maturity or outstanding principal amount of such Mortgage Loan shall not
be changed nor shall any required monthly payments of principal or interest be
deferred or forgiven. Any fee collected by the Servicer for consenting to any
such conveyance or entering into an assumption or substitution agreement shall
be retained by or paid to the Servicer as additional servicing compensation.

                  Notwithstanding the foregoing paragraph or any other provision
of this Agreement, the Servicer shall not be deemed to be in default, breach or
any other violation of its obligations hereunder by reason of any assumption of
a Mortgage Loan by operation of law or any assumption which the Servicer may be
restricted by law from preventing, for any reason whatsoever. For purposes of
this Section 3.14, the term "assumption" is deemed to include a sale of the
Mortgaged Property subject to the Mortgage that is not accompanied by an
assumption or substitution of liability agreement.

                                      -73-
<PAGE>

                  Section 3.15 Notification of Adjustments.

                  On each Adjustment Date, the Servicer shall make Mortgage
Interest Rate adjustments for each Adjustable-Rate Mortgage Loan in compliance
with the requirements of the related Mortgage and Mortgage Note and Applicable
Regulations. The Servicer shall execute and deliver the notices required by each
Mortgage and Mortgage Note and Applicable Regulations regarding Mortgage
Interest Rate adjustments. Upon the discovery by the Servicer or the Trustee
that the Servicer has failed to adjust or has incorrectly adjusted a Mortgage
Interest Rate or a Monthly Payment pursuant to the terms of the related Mortgage
Note and Mortgage, the Servicer shall deliver to the Trustee for deposit in the
Distribution Account from its own funds the amount of any interest loss caused
thereby without reimbursement therefor; provided, however, the Servicer shall be
held harmless with respect to any Mortgage Interest Rate adjustments made by any
servicer prior to the Servicer.

                  Section 3.16 Optional Purchases of Mortgage Loans by Servicer.

                  The Servicer may, at its option, or, shall, at the direction
of the NIMS Insurer (which shall be at the expense of the NIMS Insurer and on a
servicing-retained basis), purchase a Mortgage Loan or REO Property which
becomes 90 or more days Delinquent or for which the Servicer has accepted a deed
in lieu of foreclosure. Prior to purchase pursuant to this Section 3.16, the
Servicer shall be required to continue to make Advances pursuant to Section
4.07. The Servicer shall not use any procedure in selecting Mortgage Loans to be
purchased which is materially adverse to the interests of the
Certificateholders. The Servicer shall purchase such Delinquent Mortgage Loan or
REO Property at a price equal to the Purchase Price. In connection with
purchases made at the Servicer's option, the Servicer will not be entitled to
any Servicing Fee with respect to any such purchased Mortgage Loan. In
connection with purchases made at the direction of the NIMS Insurer, the
Servicer shall continue to service the purchased Mortgage Loan(s) on behalf of
the NIMS Insurer pursuant to the terms of this Agreement and the NIMS Insurer
shall pay any related Servicing Fees pursuant to the terms of this Agreement.
Any such purchase of a Mortgage Loan or REO Property pursuant to this Section
3.16 shall be accomplished by delivery to the Securities Administrator for
deposit in the Distribution Account of the amount of the Purchase Price. The
Trustee shall immediately effectuate the conveyance of such delinquent Mortgage
Loan or REO Property to the Servicer to the extent necessary, including the
prompt delivery of all documentation to the Servicer.

                  Section 3.17 Trustee to Cooperate; Release of Files.

                  (a) Upon the payment in full of any Mortgage Loan (including
any liquidation of such Mortgage Loan through foreclosure or otherwise, or the
receipt by the Servicer of a notification that payment in full will be escrowed
in a manner customary for such purposes), the Servicer shall deliver to the
Custodian on behalf of the Trustee, in written form (with two executed copies)
or electronic form, of a completed "Request for Release" in the form of Exhibit
E. Upon receipt of such Request for Release of Documents, the Custodian on
behalf of the Trustee shall release the related Mortgage File pursuant to the
Custodial Agreement, in trust, to (i) the Servicer, or (ii) such other party
identified in the related Request for Release. Upon any such payment in full, or
the receipt of such notification that such funds have been placed in escrow, the
Trustee hereby authorizes and empowers the Servicer, in accordance with the
powers of attorney granted in Section 3.01, to execute an instrument of
satisfaction (or Assignment without recourse) regarding the Mortgaged Property
relating to such Mortgage, which instrument of satisfaction or Assignment shall
be delivered to the Person or Persons entitled thereto against receipt therefor
of payment in full, it being understood and agreed that no expense incurred in
connection with such instrument of satisfaction or assignment, as the case may
be, shall be chargeable to the Collection Accounts. In lieu of executing any
such satisfaction or assignment, as the case may be, the Servicer may prepare
and submit to the Trustee a satisfaction (or assignment without recourse, if
requested by the Person or Persons entitled thereto) in form for execution by
the Trustee with all requisite information completed by the Servicer; in such
event, the Trustee shall execute and acknowledge such satisfaction or
assignment, as the case may be, and deliver the same with the related Mortgage
File, as aforesaid.

                                      -74-
<PAGE>

                  (b) From time to time and as appropriate in the servicing of
any Mortgage Loan, including, without limitation, foreclosure or other
comparable conversion of a Mortgage Loan or collection under any insurance
policy relating to a Mortgage Loan, the Custodian on behalf of the Trustee shall
(except in the case of the payment or liquidation pursuant to which the related
Mortgage File is released to an escrow agent or an employee, agent or attorney
of the Trustee), upon written request of the Servicer and delivery to the
Custodian on behalf of the Trustee, in written form (with two executed copies)
or electronic form, of a "Request for Release" in the form of Exhibit E signed
by a Servicing Officer, release the related Mortgage File to the Servicer within
three (3) Business Days and the Trustee shall execute such documents as shall be
necessary to the prosecution of any such proceedings, including, without
limitation, an assignment without recourse of the related Mortgage to the
Servicer. Such receipt shall obligate the Servicer to return the Mortgage File
to the Custodian on behalf of the Trustee when the need therefor by the Servicer
no longer exists unless the Mortgage Loan shall be liquidated, in which case,
upon receipt of a Request for Release evidencing such liquidation, the receipt
shall be released by the Custodian on behalf of the Trustee to the Servicer.

                  (c) Subject to Section 3.01, the Servicer shall have the right
to accept applications of Mortgagors for consent to (i) partial releases of
Mortgages, (ii) alterations, (iii) removal, demolition or division of properties
subject to Mortgages, (iv) modifications, and (v) second mortgage subordination
agreements. No application for approval shall be considered by the Servicer
unless: (w) it has received an Opinion of Counsel, addressed to the Trustee (the
cost of which shall constitute a Servicing Advance to the extent not
reimbursable by the related Mortgagor) that such sale, disposition,
substitution, acquisition or contribution will not affect adversely the status
of any REMIC constituting part of the Trust Fund as a REMIC or cause any REMIC
constituting part of the Trust Fund to be subject to a tax on "prohibited
transactions" or "contributions" pursuant to the REMIC Provisions; (x) the
provisions of the related Note and Mortgage have been complied with; (y) the
Loan-to-Value Ratio and debt-to-income ratio after any release does not exceed
the maximum Loan-to-Value Ratio and debt-to-income ratio established in
accordance with the underwriting standards of the Mortgage Loans; and (z) the
lien priority of the related Mortgage is not affected. Upon receipt by the
Trustee of a Servicing Officer's certificate setting forth the action proposed
to be taken in respect of a particular Mortgage Loan and certifying that the
criteria set forth in the immediately preceding sentence have been satisfied,
the Trustee shall execute and deliver to the Servicer the consent or partial
release so requested by the Servicer. A proposed form of consent or partial
release, as the case may be, shall accompany any Servicing Officer's certificate
delivered by the Servicer pursuant to this paragraph.

                  Section 3.18 Servicing Compensation.

                  As compensation for its activities hereunder, the Servicer
shall be entitled to retain the amount of the Servicing Fee with respect to each
Mortgage Loan (including REO Properties). The Servicer shall be entitled to
retain additional servicing compensation in the form of release fees, bad check
charges, assumption fees, modification or extension fees, late payment charges,
prepayment charges that are not Prepayment Charges or Servicer Prepayment Charge
Payment Amounts, or any other service-related fees and similar items, to the
extent collected from Mortgagors.

                  The Servicer shall be required to pay all expenses incurred by
it in connection with its servicing activities hereunder (including payment of
premiums for any blanket policy insuring against hazard losses pursuant to
Section 3.11 and the fees and expenses of independent accountants and any agents
appointed by the Servicer), and shall not be entitled to reimbursement therefor
from the Trust Fund except as specifically provided in Section 3.05(a).

                                      -75-
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                  Section 3.19 Annual Statement as to Compliance.

                  (a) Beginning in 2006, the Servicer, at its own expense, will
deliver to the Securities Administrator (and the Securities Administrator will
deliver to the Trustee, the NIMS Insurer, the Depositor and each Rating Agency),
not later than March 15th of each calendar year, a Servicing Officer's
certificate stating, as to each signer thereof, that (i) a review of the
activities of the Servicer during such preceding fiscal year and of performance
under this Agreement has been made under such officers' supervision, and (ii) to
the best of such officers' knowledge, based on such review, the Servicer has
fulfilled all its obligations under this Agreement for such year, or, if there
has been a default in the fulfillment of all such obligations, specifying each
such default known to such officers and the nature and status thereof including
the steps being taken by the Servicer to remedy such default.

                  (b) Delivery of such reports, information and documents to the
Securities Administrator is for informational purposes only and their receipt of
such shall not constitute constructive notice of any information contained
therein or determinable, from information contained therein, including the
Servicer's compliance with any of its covenants hereunder (as to which the
Securities Administrator is entitled to rely exclusively on Officers'
Certificates).

                  Section 3.20 Annual Independent Certified Public Accountants'
Reports.

                  (a) Beginning in 2006, not later than March 15th of each
calendar year, the Servicer, at its expense, shall cause a nationally recognized
firm of independent certified public accountants to furnish to the Securities
Administrator (and the Securities Administrator will deliver to the Trustee, the
NIMS Insurer, the Depositor and each Rating Agency) a report stating that (i) it
has obtained a letter of representation regarding certain matters from the
management of the Servicer which includes an assertion that the Servicer has
complied with certain minimum residential mortgage loan servicing standards,
identified in either the Uniform Single Attestation Program for Mortgage Bankers
established by the Mortgage Bankers Association of America or the Audit Program
for Mortgages serviced by Freddie Mac, with respect to the servicing of
residential mortgage loans during the most recently completed fiscal year and
(ii) on the basis of an examination conducted by such firm in accordance with
standards established by the American Institute of Certified Public Accountants,
such representation is fairly stated in all material respects, subject to such
exceptions and other qualifications that may be appropriate. Copies of such
statement shall be provided by the Securities Administrator to any
Certificateholder upon request, at the Servicer's expense, provided that such
statement is delivered by the Servicer to the Securities Administrator.

                  (b) Delivery of such reports, information and documents to the
Securities Administrator is for informational purposes only and their receipt of
such shall not constitute constructive notice of any information contained
therein or determinable from information contained therein, including the
Servicer's compliance with any of its covenants hereunder (as to which the
Securities Administrator is entitled to rely exclusively on Officers'
Certificates).

                  Section 3.21 Access to Certain Documentation and Information
Regarding the Mortgage Loans.

                  (a) The Servicer shall provide to the Depositor, the Trustee,
the Securities Administrator and Certificateholders that are federally insured
savings and loan associations, the Office of Thrift Supervision, the Office of
the Comptroller of the Currency, the FDIC and the supervisory agents and
examiners of each of the foregoing (which, in the case of supervisory agents and
examiners, may be required by applicable state and federal regulations) access
to the available documentation regarding the Mortgage Loans, such access being
afforded without charge but only upon reasonable advance request and during
normal business hours at the offices of the Servicer designated by it.

                                      -76-
<PAGE>

                  (b) The Servicer shall afford the NIMS Insurer, the Securities
Administrator and the Trustee, upon reasonable advance notice, during normal
business hours, access to all records maintained by the Servicer in respect of
its rights and obligations hereunder and access to officers of the Servicer
responsible for such obligations. Upon request, the Servicer shall furnish to
the NIMS Insurer, the Securities Administrator and the Trustee its most recent
publicly available financial statements and such other information relating to
its capacity to perform its obligations under this Agreement.

                  Section 3.22 Duties of Credit Risk Manager.

                  For and on behalf of the Depositor, the Credit Risk Manager
shall provide reports and recommendations as to loss mitigation activities
concerning Mortgage Loans that are past due, are in default, as to which there
has been commencement of foreclosure, as to which there has been forbearance in
exercise of remedies, as to which any obligor is the subject of bankruptcy,
receivership, or an arrangement of creditors, or which have become REO
Properties. Such reports and recommendations will be based upon information
provided pursuant to the Credit Risk Management Agreement. The Credit Risk
Manager shall look solely to the Servicer for all information and data
(including loss and delinquency information and data) and loan-level information
and data relating to the servicing of the Mortgage Loans. The Servicer is hereby
authorized to provide such loan-level information and data to the Credit Risk
Manager.

                  The Credit Risk Manager may be removed at any time by a vote
of Certificateholders holding Certificates evidencing at least 66 2/3% of the
aggregate Voting Rights of the Certificates. After any such termination, the
Credit Risk Manager shall have no further obligations hereunder, and shall no
longer be entitled to the Credit Risk Manager Fee.

                  Section 3.23 Obligations of the Servicer in Respect of
Compensating Interest.

                  Not later than the close of business on each Servicer
Remittance Date, the Servicer shall deliver to the Securities Administrator for
deposit in the Distribution Account an amount ("Compensating Interest") equal to
the lesser of (A) the aggregate of the Prepayment Interest Shortfalls on the
Mortgage Loans for the related Distribution Date resulting from Principal
Prepayments on the Mortgage Loans during the related Prepayment Period and (B)
its aggregate Servicing Fee received in the related Collection Period. The
Servicer shall apply Compensating Interest to offset any Prepayment Interest
Shortfalls on the Mortgage Loans. The Servicer shall not have the right to
reimbursement for any amounts remitted to the Securities Administrator in
respect of Compensating Interest. Such amounts so remitted shall be included in
the Available Funds and distributed therewith on the next Distribution Date. The
Servicer shall not be obligated to pay Compensating Interest with respect to
Relief Act Interest Shortfalls.

                  Section 3.24 Obligations of the Servicer in Respect of
Mortgage Interest Rates and Monthly Payments.

                  In the event that a shortfall in any collection on or
liability with respect to any Mortgage Loan results from or is attributable to
adjustments to Mortgage Interest Rates, Monthly Payments or Principal Balances
that were made by the Servicer in a manner not consistent with the terms of the
related Mortgage Note, Applicable Regulations and this Agreement, the Servicer,
upon discovery or receipt of notice thereof, immediately shall deliver to the
Securities Administrator for deposit in the Distribution Account from its own
funds the amount of any such shortfall and shall indemnify and hold harmless the
Trust Fund, the Trustee, the Depositor and any successor servicer in respect of
any such liability. Such indemnities shall survive the termination or discharge
of this Agreement. Notwithstanding the foregoing, this Section 3.24 shall not
limit the ability of the Servicer to seek recovery of any such amounts from the
related Mortgagor under the terms of the related Mortgage Note, as permitted by
law.

                                      -77-
<PAGE>

                  Section 3.25 Investment of Funds in the Collection Accounts
and the Distribution Account.

                  (a) The Servicer may direct in writing any depository
institution maintaining one or more Collection Accounts and the Securities
Administrator may direct in writing any depository institution maintaining the
Distribution Account (for purposes of this Section 3.25, each an "Investment
Account"), to invest the funds in such Investment Account in one or more
Eligible Investments bearing interest or sold at a discount, and maturing,
unless payable on demand, (i) no later than the Business Day immediately
preceding the date on which such funds are required to be withdrawn from such
account pursuant to this Agreement, if a Person other than the Securities
Administrator is the obligor thereon, and (ii) no later than the date on which
such funds are required to be withdrawn from such account pursuant to this
Agreement, if the Securities Administrator is the obligor thereon. All such
Eligible Investments shall be held to maturity, unless payable on demand. Any
investment of funds in an Investment Account shall be made in the name of the
Trustee (in its capacity as such) or in the name of a nominee of the Trustee.
The Securities Administrator shall be entitled to sole possession (except with
respect to investment direction of funds held in the Collection Accounts) over
each such investment and the income thereon, and any certificate or other
instrument evidencing any such investment shall be delivered directly to the
Securities Administrator or its agent, together with any document of transfer
necessary to transfer title to such investment to the Trustee or its nominee. In
the event amounts on deposit in an Investment Account are at any time invested
in an Eligible Investment payable on demand, the party with investment
discretion over such Investment Account shall:

                      (x)  consistent with any notice required to be given
                           thereunder, demand that payment thereon be made on
                           the last day such Eligible Investment may otherwise
                           mature hereunder in an amount equal to the lesser of
                           (1) all amounts then payable thereunder and (2) the
                           amount required to be withdrawn on such date; and

                      (y)  demand payment of all amounts due thereunder promptly
                           upon determination by a Responsible Officer of the
                           Securities Administrator that such Eligible
                           Investment would not constitute an Eligible
                           Investment in respect of funds thereafter on deposit
                           in such Investment Account.

                  (b) All income and gain realized from the investment of funds
in the Collection Accounts shall be for the benefit of the Servicer. The
Servicer shall deposit in the applicable Collection Account or (to the extent
funds in the Escrow Account are invested if permitted by applicable law) the
Escrow Account, as applicable, from its own funds the amount of any loss
incurred in respect of any such Eligible Investment made with funds in such
account immediately upon realization of such loss. All income and gain realized
from the investment of funds in the Distribution Account shall be for the
benefit of the Securities Administrator. The Securities Administrator shall
deposit in the Distribution Account from its own funds the amount of any loss
incurred on Eligible Investments made with funds in the Distribution Account
immediately upon realization of such loss.

                  (c) Except as otherwise expressly provided in this Agreement,
if any default occurs in the making of a payment due under any Eligible
Investment, or if a default occurs in any other performance required under any
Eligible Investment, the Trustee may and, subject to Section 8.01 and Section
8.02(e), upon the request of the NIMS Insurer or Holders of Certificates
representing more than 50% of the Voting Rights allocated to any Class of
Certificates, shall take such action as may be appropriate to enforce such
payment or performance, including the institution and prosecution of appropriate
proceedings.

                                      -78-
<PAGE>

                  Section 3.26 Liability of Servicer; Indemnification.

                  Subject to Section 6.03, the Servicer (except the Trustee if
it is required to succeed the Servicer hereunder) indemnifies and holds the
Trustee, the Securities Administrator, the Depositor, the NIMS Insurer and the
Trust Fund harmless against any and all claims, losses, penalties, fines,
forfeitures, reasonable legal fees and related costs, judgments, and any other
costs, fees and expenses that the Trustee, the Depositor, the Securities
Administrator, the NIMS Insurer and the Trust Fund may sustain in any way
related to the failure of the Servicer to perform its duties and service the
Mortgage Loans in compliance with the Servicing Standard. The Servicer shall
immediately notify the Trustee, the NIMS Insurer, the Securities Administrator
and the Depositor if a claim is made that may result in such claims, losses,
penalties, fines, forfeitures, legal fees or related costs, judgments, or any
other costs, fees and expenses, and the Servicer shall assume (with notice to
the Trustee) the defense of any such claim and pay all expenses in connection
therewith, including reasonable counsel fees, and promptly pay, discharge and
satisfy any judgment or decree which may be entered against the Servicer, the
Trustee, the Securities Administrator, the Depositor, the NIMS Insurer and/or
the Trust Fund in respect of such claim. The provisions of this Section 3.26
shall survive the termination of this Agreement and the payment of the
outstanding Certificates.

                  Section 3.27 Reports of Foreclosure and Abandonment of
Mortgaged Properties.

                  Beginning in 2006, the Servicer shall file the reports of
foreclosure and abandonment of any Mortgaged Property required by Section 6050J
of the Code with the Internal Revenue Service on or before the due date for any
such report. Not later than 90 days following the end of each calendar year,
beginning in 2006, the Servicer will deliver an Officer's Certificate to the
Securities Administrator certifying its compliance with this Section 3.27. The
Securities Administrator shall deliver a copy of such Officer's Certificate to
the NIMS Insurer. The reports from the Servicer shall be in form and substance
sufficient to meet the reporting requirements imposed by such Section 6050J.

                  Section 3.28 Protection of Assets.

                  (a) Except for transactions and activities entered into in
connection with the securitization that is the subject of this Agreement, the
Trust is not authorized and has no power to:

                  (1) borrow money or issue debt;

                  (2) merge with another entity, reorganize, liquidate or sell
                      assets; or

                  (3) engage in any business or activities.

                  (b) Notwithstanding any prior termination of this Agreement,
each party hereto agrees that, until after one year and one day following the
payment in full of the last of the Certificates issued hereunder, it shall not
acquiesce, petition or otherwise invoke or cause the Depositor or the Trust to
invoke the process of any court or government authority for the purpose of
commencing or sustaining a case against the Depositor or the Trust under any
federal or state bankruptcy, insolvency or similar law, or appointing a
receiver, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of the Depositor or the Trust or any substantial part of the
property of either, or ordering the winding up or liquidation of the affairs of
the Depositor or the Trust.

                  Section 3.29 Limitation of Liability of the Credit Risk
Manager.

                  Neither the Credit Risk Manager, nor any of the directors,
officers, employees or agents of the Credit Risk Manager, shall be under any
liability to the Depositor, the Servicer, the Securities Administrator, the
Trustee or the Certificateholders for any action taken or for refraining from
the taking of any action in good faith pursuant to this Agreement, in reliance
upon information provided by the Servicer under the Credit Risk Management
Agreement or for errors in judgment; provided, however, that this provision
shall not protect the Credit Risk Manager or any such person against liability
that would otherwise be imposed by reason of willful malfeasance, bad faith or
negligence in its performance of its duties or by reason of reckless disregard
for its obligations and duties under this Agreement or the applicable Credit
Risk Management Agreement. The Credit Risk Manager and any director, officer,
employee or agent of the Credit Risk Manager 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, and may rely in good faith upon the
accuracy of information furnished by the Servicer pursuant to the applicable
Credit Risk Management Agreement in the performance of its duties thereunder and
hereunder.

                                      -79-
<PAGE>

                  Section 3.30 No Personal Solicitation.

                  From and after the Closing Date, the Servicer agrees that it
will not take any action or permit or cause any action to be taken by any of its
agents and Affiliates, or by any independent contractors or independent mortgage
brokerage companies on the Servicer's behalf, to personally, by telephone, mail
or electronic mail, solicit the Mortgagor under any Mortgage Loan for the
purpose of refinancing such Mortgage Loan or make the list of names and
addresses of the Mortgagors available to any third party for any solicitation
purpose; provided, that the Servicer may solicit any Mortgagor for whom the
Servicer has received a request for verification of mortgage, a request for
demand for payoff, a mortgagor initiated written or verbal communication
indicating a desire to prepay the related Mortgage Loan, or the mortgagor
initiates a title search; provided further, it is understood and agreed that
promotions undertaken by the Servicer or any of its Affiliates which are
directed to the general public at large, including, without limitation, mass
mailings based on commercially acquired mailing lists, newspaper, radio and
television advertisements shall not constitute solicitation under this Section,
nor is the Servicer prohibited from responding to unsolicited requests or
inquiries made by a Mortgagor or an agent of a Mortgagor. Furthermore, the
Servicer shall be permitted to include messages to all borrowers under all
mortgage loans serviced by it in its monthly statements.

                  Section 3.31 Periodic Filings.

                  (a) The Trustee, the Securities Administrator and the Servicer
shall reasonably cooperate with the Depositor in connection with the Trust's
satisfying its reporting requirements under the Exchange Act. Without limiting
the generality of the foregoing, the Securities Administrator shall prepare, or
cause to be prepared, on behalf of the Trust any monthly Current Reports on Form
8-K (each, a "Monthly Form 8-K") and Annual Reports on Form 10-K (each, a "Form
10-K") customary for similar securities as required by the Exchange Act and the
rules and regulations of the Securities and Exchange Commission thereunder, and
the Securities Administrator shall sign (other than any Form 10-K) and file (via
the Securities and Exchange Commission's Electronic Data Gathering and Retrieval
System) such Forms on behalf of the Trust. The Depositor hereby grants to the
Securities Administrator a limited power of attorney to execute and file each
such document on behalf of the Depositor. Such power of attorney shall continue
until either the earlier of (i) receipt by the Trustee from the Depositor of
written termination of such power of attorney and (ii) the termination of the
Trust. Notwithstanding the foregoing, the Depositor shall sign any Form 10-K
with respect to which the Depositor signs a Certification.

                  (b) Each Monthly Form 8-K shall be filed by the Securities
Administrator within 15 days after each Distribution Date, including a copy of
the Distribution Date Statement for such Distribution Date as an exhibit
thereto. Prior to March 30th of each year (or such earlier date as may be
required by the Exchange Act and the rules and regulations of the Securities and
Exchange Commission), the Securities Administrator shall file a Form 10-K, in
substance as required by applicable law or applicable Securities and Exchange
Commission staff interpretations. Such Form 10-K shall include as exhibits the
Servicer's annual statement of compliance described under Section 3.19 and the
accountant's report described under Section 3.20, in each case, to the extent
they have been timely delivered to the Securities Administrator. If they are not
so timely delivered, the Securities Administrator shall file an amended Form
10-K (to the extent permissible) including such documents as exhibits reasonably
promptly after they are delivered to the Securities Administrator. The
Securities Administrator shall have no liability with respect to any failure to
properly prepare or file such periodic reports resulting from or relating to the
Securities Administrator's inability or failure to obtain any information not
resulting from its own negligence, willful misconduct or bad faith. The Form
10-K shall also include a certification in the form attached hereto as Exhibit O
(the "Certification"), which shall be signed by a senior officer of the
Depositor in charge of securitization. The Depositor shall deliver the
Certification to the Securities Administrator prior to March 15th of each year
in which a Form 10-K is required to be filed with respect to the Trust. The
Trustee, the Securities Administrator, the Depositor and the Servicer shall
reasonably cooperate to enable the Securities and Exchange Commission
requirements with respect to the Trust to be met in the event that the
Securities and Exchange Commission issues additional interpretive guidelines or
promulgates rules or regulations, or in the event of any other change of law
that would require reporting arrangements or the allocation of responsibilities
with respect thereto, as described in this Section 3.31, to be conducted or
allocated in a different manner.

                                      -80-
<PAGE>

                  (c) Not later than 15 calendar days prior to the latest date
on which the Form 10-K may be timely filed each year, (i) the Securities
Administrator shall sign and deliver to the Depositor a certification (in the
form attached hereto as Exhibit P-1) for the benefit of the Depositor and its
officers, directors and Affiliates (provided, however, that the Securities
Administrator shall not undertake an analysis of the accountant's report
attached as an exhibit to the Form 10-K) and (ii) the Servicer shall sign and
deliver to the Depositor a certification (in the form attached hereto as Exhibit
P-2) for the benefit of the Depositor and its officers, directors and
Affiliates. In addition, (i) the Securities Administrator shall also indemnify
and hold harmless the Depositor, each Person, if any, who "controls" the
Depositor within the meaning of the 1933 Act, and its officers, directors and
Affiliates from and against any losses, damages, penalties, fines, forfeitures,
reasonable and necessary legal fees and related costs, judgments and other costs
and expenses arising out of or based upon any inaccuracy in the certification
provided by the Securities Administrator pursuant to this Section 3.31(c), any
breach of the Securities Administrator's obligations under this Section 3.31(c)
or the Securities Administrator's negligence, bad faith or willful misconduct in
connection therewith and (ii) the Servicer shall indemnify and hold harmless the
Depositor, each Person, if any, who "controls" the Depositor within the meaning
of the 1933 Act, and its officers, directors and Affiliates from and against any
losses, damages, penalties, fines, forfeitures, reasonable and necessary legal
fees and related costs, judgments and other costs and expenses arising out of or
based upon any inaccuracy in the certification provided by the Servicer pursuant
to this Section 3.31(c), any breach of the Servicer's obligations under this
Section 3.31(c) or the Servicer's negligence, bad faith or willful misconduct in
connection therewith. If the indemnification provided for herein is unavailable
or insufficient to hold harmless the Depositor, each Person, if any, who
"controls" the Depositor within the meaning of the 1933 Act, and its officers,
directors and Affiliates, then (i) the Securities Administrator agrees that it
shall contribute to the amount paid or payable by the Depositor, its officers,
directors or Affiliates as a result of the losses, claims, damages or
liabilities of the Depositor, its officers, directors or Affiliates in such
proportion as is appropriate to reflect the relative fault of the Depositor and
its officers, directors and Affiliates on the one hand and the Securities
Administrator on the other in connection with a breach of the Securities
Administrator's obligations under this Section 3.31(c) or the Securities
Administrator's negligence, bad faith or willful misconduct in connection
therewith and (ii) the Servicer agrees that it shall contribute to the amount
paid or payable by the Depositor, its officers, directors or Affiliates as a
result of the losses, claims, damages or liabilities of the Depositor, its
officers, directors or Affiliates in such proportion as is appropriate to
reflect the relative fault of the Depositor and its officers, directors and
Affiliates on the one hand and the Servicer on the other in connection with a
breach of the Servicer's obligations under this Section 3.31(c) or the
Servicer's negligence, bad faith or willful misconduct in connection therewith.
The Servicer hereby acknowledges and agrees that the Depositor and the
Securities Administrator are relying on the Servicer's performance of its
obligations under Sections 3.19 and 3.20 in order to perform their respective
obligations under this Section 3.31.

                  (d) Upon any filing with the Securities and Exchange
Commission, the Securities Administrator shall promptly deliver to the Depositor
and the Trustee a copy of any such executed report, statement or information.

                  (e) The obligations set forth in paragraphs (a) through (d) of
this Section shall only apply with respect to periods for which the Securities
Administrator is obligated to file reports on Form 8-K or 10-K pursuant to
paragraph (b) of this Section. Prior to January 30th of the first year in which
the Securities Administrator is able to do so, the Securities Administrator
shall prepare, execute and file with the Securities and Exchange Commission a
Form 15 Suspension Notification with respect to the Trust, and thereafter there
shall be no further obligations under paragraphs (a) through (d) of this Section
commencing with the calendar year in which the Form 15 is filed (other than the
obligations to be performed in such calendar year that relate back to the prior
calendar year).

                                      -81-
<PAGE>

                  (f) If the Securities and Exchange Commission issues
additional interpretative guidance or promulgates additional rules or
regulations, or if other changes in applicable law occur, which would require
the reporting arrangements, or the allocation of responsibilities with respect
thereto, described in this Section 3.31, to be conducted differently than as
described, the Depositor, the Securities Administrator, the Servicer and the
Trustee will reasonably cooperate to amend the provisions of this Section 3.31
in order to comply with such amended reporting requirements and such amendment
of this Section 3.31. Any such amendment shall be made in accordance with
Section 11.01 without the consent of the Certificateholders, and may result in a
change in the reports filed by the Securities Administrator on behalf of the
Trust under the Exchange Act. Notwithstanding the foregoing, none of the
Depositor, the Servicer, the Securities Administrator or the Trustee shall be
obligated to enter into any amendment pursuant to this Section 3.31 that
adversely affects its obligations and immunities under this Agreement.

                  Section 3.32 Credit Reporting; Gramm-Leach-Bliley Act.

                  (a) With respect to each Mortgage Loan, the Servicer agrees to
fully furnish, in accordance with Fannie Mae Guide Announcement 95-19 and 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 TransUnion Credit Information Company (three of
the credit repositories) on a monthly basis and agrees it shall report one of
the following statuses each month as follows: new origination, current,
delinquent (30-, 60-, 90-days, etc.), foreclosed, or charged-off.

                  (b) The Servicer shall comply with Title V of the
Gramm-Leach-Bliley Act of 1999 and all applicable regulations promulgated
thereunder, relating to the Mortgage Loans and the related borrowers and shall
provide all required notices thereunder.

                  Section 3.33 Maintenance of LPMI Policies; Claims.

                  (a) The Servicer will maintain in full force and effect the
LPMI Policy on each LPMI Mortgage Loan. The Servicer shall not take any action
that would result in noncoverage under any LPMI Policy of any loss which, but
for the actions of the Servicer would have been covered thereunder. The Servicer
shall pay from its own funds without reimbursement all premiums and charges in
connection with each LPMI Policy. The Servicer shall not cancel or refuse to
renew any LPMI Policy. In connection with any assumption or substitution
agreement entered into or to be entered into pursuant to Section 3.14, the
Servicer shall promptly notify the insurer under the related LPMI Policy, if
any, of such assumption or substitution of liability in accordance with the
terms of such LPMI Policy and shall take all actions which may be required by
such insurer as a condition of the continuation of coverage under such LPMI
Policy. If such LPMI Policy is terminated as a result of such assumption or
substitution of liability, the Servicer shall obtain a replacement LPMI Policy.

                  (b) The Servicer shall prepare and present, on behalf of the
Trustee and the Certificateholders, claims to the insurer under any LPMI
Policies and, in this regard, take such reasonable action as shall be necessary
to permit recovery under any LPMI Policies respecting defaulted Mortgage Loans.
Pursuant to Sections 3.04, any amounts collected by the Servicer under any LPMI
Policies shall be deposited in the Collection Account, subject to withdrawal
pursuant to Section 3.05.

                                      -82-
<PAGE>

                                   ARTICLE IV

                                  FLOW OF FUNDS

                  Section 4.01 Interest Distributions.

                  On each Distribution Date, the Securities Administrator shall
withdraw from the Distribution Account the Interest Remittance Amount and apply
it in the following order of priority (based upon the Mortgage Loan information
provided to it in the Remittance Report, upon which the Securities Administrator
may conclusively rely), and the calculations required to be made by the
Securities Administrator, to the extent available:

                  (i) to the Credit Risk Manager, the Credit Risk Manager Fee
         for such Distribution Date;

                  (ii) concurrently, as follows:

                           (a) from the Group 1 Interest Remittance Amount to
                       the Class A-1 Certificates, the applicable Accrued
                       Certificate Interest thereon for such Distribution Date;
                       and

                           (b) concurrently, from the Group 2 Interest
                       Remittance Amount to the Class A-2A, Class A-2B and Class
                       A-2C Certificates, pro rata, the applicable Accrued
                       Certificate Interest thereon for such Distribution Date;

                  (iii) concurrently, as follows:

                           (a) from the Group 1 Interest Remittance Amount to
                       the Class A-1 Certificates, the applicable Interest Carry
                       Forward Amount thereon for such Distribution Date; and

                           (b) concurrently, from the Group 2 Interest
                       Remittance Amount to the Class A-2A, Class A-2B and Class
                       A-2C Certificates, pro rata, the applicable Interest
                       Carry Forward Amount thereon for such Distribution Date;

                  (iv) concurrently, as follows:

                           (a) if the Group 1 Interest Remittance Amount is
                       insufficient to pay the Class A-1 Certificates'
                       applicable Accrued Certificate Interest for such
                       Distribution Date pursuant to Section 4.01(ii)(a) above,
                       from the remaining Group 2 Interest Remittance Amount, to
                       the Class A-1 Certificates, to cover such shortfall for
                       such Distribution Date; and

                           (b) if the Group 2 Interest Remittance Amount is
                       insufficient to pay the Class A-2A, Class A-2B and Class
                       A-2C Certificates' applicable Accrued Certificate
                       Interest for such Distribution Date pursuant to Section
                       4.01(ii)(b) above, concurrently, from the remaining Group
                       1 Interest Remittance Amount, to the Class A-2A, Class
                       A-2B and Class A-2C Certificates, pro rata, to cover such
                       shortfall for such Distribution Date;

                  (v) concurrently, as follows:

                           (a) if the Group 1 Interest Remittance Amount is
                       insufficient to pay the Class A-1 Certificates'
                       applicable Interest Carry Forward Amount for such
                       Distribution Date pursuant to Section 4.01(iii)(a) above,
                       from the remaining Group 2 Interest Remittance Amount, to
                       the Class A-1 Certificates, to cover such shortfall for
                       such Distribution Date; and

                                      -83-
<PAGE>

                           (b) if the Group 2 Interest Remittance Amount is
                       insufficient to pay the Class A-2A, Class A-2B and Class
                       A-2C Certificates' applicable Interest Carry Forward
                       Amount for such Distribution Date pursuant to Section
                       4.01(iii)(b) above, concurrently, from the remaining
                       Group 1 Interest Remittance Amount, to the Class A-2A,
                       Class A-2B and Class A-2C Certificates, pro rata, to
                       cover such shortfall for such Distribution Date;

                  (vi) to the Class M-1 Certificates, the Accrued Certificate
         Interest thereon for such Distribution Date;

                  (vii) to the Class M-2 Certificates, the Accrued Certificate
         Interest thereon for such Distribution Date;

                  (viii) to the Class M-3 Certificates, the Accrued Certificate
         Interest thereon for such Distribution Date;

                  (ix) to the Class M-4 Certificates, the Accrued Certificate
         Interest thereon for such Distribution Date;

                  (x) to the Class M-5 Certificates, the Accrued Certificate
         Interest thereon for such Distribution Date;

                  (xi) to the Class M-6 Certificates, the Accrued Certificate
         Interest thereon for such Distribution Date;

                  (xii) to the Class M-7 Certificates, the Accrued Certificate
         Interest thereon for such Distribution Date;

                  (xiii) to the Class M-8 Certificates, the Accrued Certificate
         Interest thereon for such Distribution Date;

                  (xiv) to the Class M-9 Certificates, the Accrued Certificate
         Interest thereon for such Distribution Date;

                  (xv) to the Class M-10 Certificates, the Accrued Certificate
         Interest thereon for such Distribution Date;

                  (xvi) to the Class B-1 Certificates, the Accrued Certificate
         Interest thereon for such Distribution Date;

                  (xvii) to the Class B-2 Certificates, the Accrued Certificate
         Interest thereon for such Distribution Date;

                  (xviii) to the Class B-3 Certificates, the Accrued Certificate
         Interest thereon for such Distribution Date; and

                  (xix) the amount, if any, of the Interest Remittance Amount
         remaining after application with respect to the priorities set forth
         above will be applied as described under Section 4.02(b) hereof.

                  On any Distribution Date, any shortfalls resulting from
Prepayment Interest Shortfalls not covered by Compensating Interest payments
made by the Servicer or from the application of the Relief Act or similar state
laws will be allocated as a reduction to the Accrued Certificate Interest for
the Class A, Class M and Class B Certificates on a pro rata basis based on the
respective amounts of interest accrued on those Certificates for that
Distribution Date. The holders of the Class A, Class M and Class B Certificates
will not be entitled to reimbursement on future Distribution Dates of any such
Prepayment Interest Shortfalls or Relief Act shortfalls following their
allocation to such Certificates.

                                      -84-
<PAGE>

                  Section 4.02 Distributions of Principal and Monthly Excess
Cashflow Amounts.

                  (a) On each Distribution Date, the Securities Administrator
shall make the following distributions in the following order of priority (based
upon the Mortgage Loan information provided to it in the Remittance Report and
the calculations required to be made by the Securities Administrator), to the
extent of the Principal Distribution Amount:

                  (i) before the Stepdown Date or with respect to which a
         Trigger Event is in effect, sequentially, as follows:

                      first, concurrently, as follows:

                           (a) the Group 1 Senior Principal Distribution Amount
                      to the Class A-1 Certificates, until the Certificate
                      Principal Balance thereof has been reduced to zero; and

                           (b) (i) with respect to any Distribution Date prior
                      to the Subordination Depletion Date, sequentially, the
                      Group 2 Senior Principal Distribution Amount to the Class
                      A-2A, Class A-2B and Class A-2C Certificates, in that
                      order, until the Certificate Principal Balances thereof
                      have been reduced to zero or (ii) with respect to any
                      Distribution Date on or after the Subordination Depletion
                      Date, concurrently, the Group 2 Senior Principal
                      Distribution Amount to the Class A-2A, Class A-2B and
                      Class A-2C Certificates, pro rata, until the Certificate
                      Principal Balances thereof have been reduced to zero;

                      second, concurrently, as follows:

                           (c) (i) with respect to any Distribution Date prior
                      to the Subordination Depletion Date, sequentially, the
                      Group 1 Senior Principal Distribution Amount remaining
                      after priority first of this Section 4.02(a)(i), to the
                      Class A-2A, Class A-2B and Class A-2C Certificates, in
                      that order, until the Certificate Principal Balances
                      thereof have been reduced to zero or (b) with respect to
                      any Distribution Date on or after the Subordination
                      Depletion Date, concurrently, the Group 1 Senior Principal
                      Distribution Amount remaining after priority first of this
                      Section 4.02(a)(i), to the Class A-2A, Class A-2B and
                      Class A-2C Certificates, pro rata, until the Certificate
                      Principal Balances thereof has been reduced to zero; and

                           (d) the Group 2 Senior Principal Distribution Amount
                      remaining after priority first of this Section 4.02(a)(i),
                      to the Class A-1 Certificates, until the Certificate
                      Principal Balance thereof has been reduced to zero;

                      third, to the Class M-1 Certificates, until the
                  Certificate Principal Balance thereof has been reduced to
                  zero;

                                      -85-
<PAGE>

                      fourth, to the Class M-2 Certificates, until the
                  Certificate Principal Balance thereof has been reduced to
                  zero;

                      fifth, to the Class M-3 Certificates, until the
                  Certificate Principal Balance thereof has been reduced to
                  zero;

                      sixth, to the Class M-4 Certificates, until the
                  Certificate Principal Balance thereof has been reduced to
                  zero;

                      seventh, to the Class M-5 Certificates, until the
                  Certificate Principal Balance thereof has been reduced to
                  zero;

                      eighth, to the Class M-6 Certificates, until the
                  Certificate Principal Balance thereof has been reduced to
                  zero;

                      ninth, to the Class M-7 Certificates, until the
                  Certificate Principal Balance thereof has been reduced to
                  zero;

                      tenth, to the Class M-8 Certificates, until the
                  Certificate Principal Balance thereof has been reduced to
                  zero;

                      eleventh, to the Class M-9 Certificates, until the
                  Certificate Principal Balance thereof has been reduced to
                  zero;

                      twelfth, to the Class M-10 Certificates, until the
                  Certificate Principal Balance thereof has been reduced to
                  zero;

                      thirteenth, to the Class B-1 Certificates, until the
                  Certificate Principal Balance thereof has been reduced to
                  zero;

                      fourteenth, to the Class B-2 Certificates, until the
                  Certificate Principal Balance thereof has been reduced to
                  zero;

                      fifteenth, to the Class B-3 Certificates, until the
                  Certificate Principal Balance thereof has been reduced to
                  zero; and

                      sixteenth, any remaining Principal Distribution Amount
                  will be distributed as part of the Monthly Excess Cashflow
                  Amount as set forth in Section 4.02(b).

                  (ii) on or after the Stepdown Date and as long as a Trigger
         Event is not in effect:

                                      -86-
<PAGE>

                      first, concurrently, as follows:

                           (a) the Group 1 Senior Principal Distribution Amount
                      to the Class A-1 Certificates, until the Certificate
                      Principal Balance thereof has been reduced to zero; and

                           (b) (i) with respect to any Distribution Date prior
                      to the Subordination Depletion Date, sequentially, the
                      Group 2 Senior Principal Distribution Amount to the Class
                      A-2A, Class A-2B and Class A-2C Certificates, in that
                      order, until the Certificate Principal Balances thereof
                      have been reduced to zero or (b) with respect to any
                      Distribution Date on or after the Subordination Depletion
                      Date, concurrently, the Group 2 Senior Principal
                      Distribution Amount to the Class A-2A, Class A-2B and
                      Class A-2C Certificates, pro rata, until the Certificate
                      Principal Balances thereof have been reduced to zero;

                      second, concurrently, as follows:

                           (c) (i) with respect to any Distribution Date prior
                      to the Subordination Depletion Date, (a) sequentially, the
                      Group 1 Senior Principal Distribution Amount remaining
                      after priority first of this Section 4.02(a)(ii), to the
                      Class A-2A, Class A-2B and Class A-2C Certificates, in
                      that order, until the Certificate Principal Balances
                      thereof have been reduced to zero or (b) with respect to
                      any Distribution Date on or after the Subordination
                      Depletion Date, concurrently, the Group 1 Senior Principal
                      Distribution Amount remaining after priority first of this
                      Section 4.02(a)(ii) to the Class A-2A, Class A-2B and
                      Class A-2C Certificates, pro rata, until the Certificate
                      Principal Balances thereof have been reduced to zero; and

                           (d) the Group 2 Senior Principal Distribution Amount
                      remaining after priority first of this Section
                      4.02(a)(ii), to the Class A-1 Certificates, until the
                      Certificate Principal Balance thereof has been reduced to
                      zero;

                      third, to the Class M-1 Certificates, up to the Class M-1
                  Principal Distribution Amount, until the Certificate Principal
                  Balance thereof has been reduced to zero;

                      fourth, to the Class M-2 Certificates, up to the Class M-2
                  Principal Distribution Amount, until the Certificate Principal
                  Balance thereof has been reduced to zero;

                      fifth, to the Class M-3 Certificates, up to the Class M-3
                  Principal Distribution Amount, until the Certificate Principal
                  Balance thereof has been reduced to zero;

                      sixth, to the Class M-4 Certificates, up to the Class M-4
                  Principal Distribution Amount, until the Certificate Principal
                  Balance thereof has been reduced to zero;

                      seventh, to the Class M-5 Certificates, up to the Class
                  M-5 Principal Distribution Amount, until the Certificate
                  Principal Balance thereof has been reduced to zero;

                      eighth, to the Class M-6 Certificates, up to the Class M-6
                  Principal Distribution Amount, until the Certificate Principal
                  Balance thereof has been reduced to zero;

                                      -87-
<PAGE>

                      ninth, to the Class M-7 Certificates, up to the Class M-7
                  Principal Distribution Amount, until the Certificate Principal
                  Balance thereof has been reduced to zero;

                      tenth, to the Class M-8 Certificates, up to the Class M-8
                  Principal Distribution Amount, until the Certificate Principal
                  Balance thereof has been reduced to zero;

                      eleventh, to the Class M-9 Certificates, up to the Class
                  M-9 Principal Distribution Amount, until the Certificate
                  Principal Balance thereof has been reduced to zero;

                      twelfth, to the Class M-10 Certificates, up to the Class
                  M-10 Principal Distribution Amount, until the Certificate
                  Principal Balance thereof has been reduced to zero;

                      thirteenth, to the Class B-1 Certificates, up to the Class
                  B-1 Principal Distribution Amount, until the Certificate
                  Principal Balance thereof has been reduced to zero;

                      fourteenth, to the Class B-2 Certificates, up to the Class
                  B-2 Principal Distribution Amount, until the Certificate
                  Principal Balance thereof has been reduced to zero;

                      fifteenth, to the Class B-3 Certificates, up to the Class
                  B-3 Principal Distribution Amount, until the Certificate
                  Principal Balance thereof has been reduced to zero; and

                      sixteenth, any remaining Principal Distribution Amount
                  will be distributed as part of the Monthly Excess Cashflow
                  Amount as set forth in Section 4.02(b).

                  (b) On each Distribution Date, any Monthly Excess Cashflow
Amount shall be distributed, to the extent available, in the following order of
priority on such Distribution Date:

                  (i) to pay any remaining Accrued Certificate Interest for such
         Distribution Date, pro rata, on the Class A Certificates;

                  (ii) to pay any Interest Carry Forward Amount for such
         Distribution Date, pro rata, for the Class A Certificates;

                  (iii) to pay any remaining unpaid Accrued Certificate Interest
         for such Distribution Date on the Class M-1 Certificates;

                  (iv) to pay the remaining Interest Carry Forward Amount, if
         any, for the Class M-1 Certificates for such Distribution Date;

                  (v) to pay the Class M-1 Realized Loss Amortization Amount for
         such Distribution Date;

                  (vi) to pay any remaining unpaid Accrued Certificate Interest
         for such Distribution Date on the Class M-2 Certificates;

                  (vii) to pay the remaining Interest Carry Forward Amount, if
         any, for the Class M-2 Certificates for such Distribution Date;

                                      -88-
<PAGE>

                  (viii) to pay the Class M-2 Realized Loss Amortization Amount
         for such Distribution Date;

                  (ix) to pay any remaining unpaid Accrued Certificate Interest
         for such Distribution Date on the Class M-3 Certificates;

                  (x) to pay the remaining Interest Carry Forward Amount, if
         any, for the Class M-3 Certificates for such Distribution Date;

                  (xi) to pay the Class M-3 Realized Loss Amortization Amount
         for such Distribution Date;

                  (xii) to pay any remaining unpaid Accrued Certificate Interest
         for such Distribution Date on the Class M-4 Certificates;

                  (xiii) to pay the remaining Interest Carry Forward Amount, if
         any, for the Class M-4 Certificates for such Distribution Date;

                  (xiv) to pay the Class M-4 Realized Loss Amortization Amount
         for such Distribution Date;

                  (xv) to pay any remaining unpaid Accrued Certificate Interest
         for such Distribution Date on the Class M-5 Certificates;

                  (xvi) to pay the remaining Interest Carry Forward Amount, if
         any, for the Class M-5 Certificates for such Distribution Date;

                  (xvii) to pay the Class M-5 Realized Loss Amortization Amount
         for such Distribution Date;

                  (xviii) to pay any remaining unpaid Accrued Certificate
         Interest for such Distribution Date on the Class M-6 Certificates;

                  (xix) to pay the remaining Interest Carry Forward Amount, if
         any, for the Class M-6 Certificates for such Distribution Date;

                  (xx) to pay the Class M-6 Realized Loss Amortization Amount
         for such Distribution Date;

                  (xxi) to pay any remaining unpaid Accrued Certificate Interest
         for such Distribution Date on the Class M-7 Certificates;

                  (xxii) to pay the remaining Interest Carry Forward Amount, if
         any, for the Class M-7 Certificates for such Distribution Date;

                  (xxiii) to pay the Class M-7 Realized Loss Amortization Amount
         for such Distribution Date;

                  (xxiv) to pay any remaining unpaid Accrued Certificate
         Interest for such Distribution Date on the Class M-8 Certificates;

                                      -89-
<PAGE>

                  (xxv) to pay the remaining Interest Carry Forward Amount, if
         any, for the Class M-8 Certificates for such Distribution Date;

                  (xxvi) to pay the Class M-8 Realized Loss Amortization Amount
         for such Distribution Date;

                  (xxvii) to pay any remaining unpaid Accrued Certificate
         Interest for such Distribution Date on the Class M-9 Certificates;

                  (xxviii) to pay the remaining Interest Carry Forward Amount,
         if any, for the Class M-9 Certificates for such Distribution Date;

                  (xxix) to pay the Class M-9 Realized Loss Amortization Amount
         for such Distribution Date;

                  (xxx) to pay any remaining unpaid Accrued Certificate Interest
         for such Distribution Date on the Class M-10 Certificates;

                  (xxxi) to pay the remaining Interest Carry Forward Amount, if
         any, for the Class M-10 Certificates for such Distribution Date;

                  (xxxii) to pay the Class M-10 Realized Loss Amortization
         Amount for such Distribution Date;

                  (xxxiii) to pay any remaining unpaid Accrued Certificate
         Interest for such Distribution Date on the Class B-1 Certificates;

                  (xxxiv) to pay the remaining Interest Carry Forward Amount, if
         any, for the Class B-1 Certificates for such Distribution Date;

                  (xxxv) to pay the Class B-1 Realized Loss Amortization Amount
         for such Distribution Date;

                  (xxxvi) to pay any remaining unpaid Accrued Certificate
         Interest for such Distribution Date on the Class B-2 Certificates;

                  (xxxvii) to pay the remaining Interest Carry Forward Amount,
         if any, for the Class B-2 Certificates for such Distribution Date;

                  (xxxviii)to pay the Class B-2 Realized Loss Amortization
         Amount for such Distribution Date;

                  (xxxix) to pay any remaining unpaid Accrued Certificate
         Interest for such Distribution Date on the Class B-3 Certificates;

                  (xl) to pay the remaining Interest Carry Forward Amount, if
         any, for the Class B-3 Certificates for such Distribution Date;

                  (xli) to pay the Class B-3 Realized Loss Amortization Amount
         for such Distribution Date;

                  (xlii) first, to the Class A-1, Class A-2A, Class A-2B and
         Class A-2C Certificates, pro rata, and then sequentially, to the Class
         M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7,
         Class M-8, Class M-9, Class M-10, Class B-1, Class B-2 and Class B-3
         Certificates, in that order, any Cap Carryover Amount for each such
         Class; and

                                      -90-
<PAGE>

                  (xliii) to the Class CE Certificates, up to the Class CE
         Distributable Amount for such Distribution Date.

                  On each Distribution Date, there shall be distributed to the
Holder of the Class R Certificate in respect of the Class R-2 Interest, any
remaining amount in the Distribution Account on such date after the application
pursuant to Sections 4.01, 4.02(a) and 4.02(b)(i)-(xxxvii).

                  (c) On each Distribution Date, the Securities Administrator
shall withdraw any amounts then on deposit in the Distribution Account that
represent Prepayment Charges collected by the Servicer in connection with the
Principal Prepayment in full of any of the Mortgage Loans or any Servicer
Prepayment Charge Payment Amount and shall distribute such amounts to the
Holders of the Class P Certificates. Any such amounts in respect of Servicer
Prepayment Charge Payment Amounts shall be treated as having been distributed to
the Holders of the Class P Certificates from the Grantor Trust. Such
distributions shall not be applied to reduce the Certificate Principal Balance
of the Class P Certificates. On the first Distribution Date following the
expiration of the latest prepayment term with respect to the related Mortgage
Loans and if funds are available on such date, the Class P Certificates shall be
entitled to its outstanding Certificate Principal Balance prior to any
distributions of Monthly Excess Cashflow Amounts pursuant to Section 4.02(b) on
such Distribution Date.

                  (d) Any amounts distributed to the Class A, Class M and Class
B Certificates in respect of interest pursuant to Sections 4.02(b)(xlii) which
constitute Cap Carryover Amounts shall first be deemed distributed by REMIC 2 as
a distribution to the Class CE Certificates, and then distributed to the Class
A, Class M and Class B Certificates from the Grantor Trust as payments on
notional principal contracts in the nature of cap contracts. Any remaining
amount with respect to the Class CE Certificates or any remaining Yield
Maintenance Agreement Payments shall be treated as having been distributed to
the Holders of the Class CE Certificates from the Grantor Trust.

                  (e) On each Distribution Date, Unpaid Realized Loss Amounts on
the Class M and Class B Certificates will be reduced by the amount of any
Subsequent Recoveries received during the related Prepayment Period in the same
order as Realized Loss Amortization Amounts are paid to the Class M and Class B
Certificates pursuant to Section 4.02(b) above.

                  Section 4.03 Allocation of Losses.

                  Any Applied Realized Loss Amount for a Distribution Date will
be allocated first against the Class CE Certificates, until the Notional Balance
thereof is reduced to zero and then against the Class B-3, Class B-2, Class B-1,
Class M-10, Class M-9, Class M-8, Class M-7, Class M-6, Class M-5, Class M-4,
Class M-3, Class M-2 and Class M-1 Certificates, in that order and until the
respective Certificate Principal Balances thereof are reduced to zero.

                  Section 4.04 Method of Distribution.

                  The Securities Administrator shall make distributions in
respect of a Distribution Date to each Certificateholder of record on the
related Record Date (other than as provided in Section 10.01 respecting the
final distribution), in the case of Certificateholders of the Certificates, by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Securities
Administrator in writing at least five Business Days prior to the Record Date
immediately prior to such Distribution Date and is the registered owner of such
Certificates, or by check mailed by first class mail to the address of the
Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Securities Administrator may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Distributions among Certificateholders shall be made in proportion to the
Percentage Interests evidenced by the Certificates held by such
Certificateholders.

                                      -91-
<PAGE>

                  Section 4.05 Distributions on Book-Entry Certificates.

                  Each distribution with respect to a Book-Entry Certificate
shall be paid to the Depository, which shall credit the amount of such
distribution to the accounts of its Depository Participants in accordance with
its normal procedures. Each Depository Participant shall be responsible for
disbursing such distribution to the Certificate Owners that it represents and to
each indirect participating brokerage firm (a "brokerage firm" or "indirect
participating firm") for which it acts as agent. Each brokerage firm shall be
responsible for disbursing funds to the Certificate Owners that it represents.
All such credits and disbursements with respect to a Book-Entry Certificate are
to be made by the Depository and the Depository Participants in accordance with
the provisions of the Certificates. None of the Securities Administrator, the
Trustee, the Depositor or the Servicer shall have any responsibility therefor
except as otherwise provided by applicable law.

                  Section 4.06 Statements.

                  (a) On each Distribution Date, based on the Mortgage Loan
information contained in the Remittance Report, the Securities Administrator
shall make available a statement (the "Distribution Date Statement") on its
Internet website as to the distributions made on such Distribution Date:

                  (i) the amount of the distribution made on such Distribution
         Date to the Holders of each Class of Certificates allocable to
         principal, separately identified and the amount of the distribution
         made on such Distribution Date to the Holders of the Class P
         Certificates allocable to Prepayment Charges and Servicer Prepayment
         Charge Payment Amounts;

                  (ii) the amount of the distribution made on such Distribution
         Date to the Holders of each Class of Certificates allocable to interest
         or Class CE Distributable Amount, separately identified;

                  (iii) the Overcollateralization Amount, the
         Overcollateralization Release Amount, the Overcollateralization
         Deficiency and the Targeted Overcollateralization Amount as of such
         Distribution Date and the Monthly Excess Interest Amount and Monthly
         Excess Cashflow Amount for such Distribution Date;

                  (iv) the aggregate amount of servicing compensation received
         by the Servicer during the related Collection Period;

                  (v) the aggregate amount of Advances for the related
         Collection Period, cumulative unreimbursed Advances and Servicing
         Advances and cumulative Nonrecoverable Advances;

                  (vi) the Pool Balance and the aggregate Principal Balance of
         each Loan Group, at the close of business at the end of the related
         Collection Period;

                  (vii) the number, weighted average remaining term to maturity
         and weighted average Mortgage Interest Rate of the Mortgage Loans as of
         the related Due Date;

                  (viii) the number and aggregate unpaid principal balance of
         Mortgage Loans (a) 30 to 59 days past due on a contractual basis, (b)
         60 to 89 days past due on a contractual basis, (c) 90 or more days past
         due on a contractual basis, (d) as to which foreclosure proceedings
         have been commenced and (e) in bankruptcy as of the close of business
         on the last day of the calendar month preceding such Distribution Date;

                                      -92-
<PAGE>

                  (ix) with respect to any Mortgage Loan that became an REO
         Property during the preceding calendar month, the loan number of such
         Mortgage Loan, the unpaid Principal Balance of the REO Property as of
         the close of business on the last Business Day of such calendar month
         and the Principal Balance of such Mortgage Loan as of the date it
         became an REO Property;

                  (x) the book value of any REO Property as of the close of
         business on the last Business Day of the calendar month preceding the
         Distribution Date, and, cumulatively, the total number and cumulative
         principal balance of all REO Properties as of the close of business of
         the last day of the preceding Collection Period;

                  (xi) separately stated for each Loan Group, the aggregate
         amount of Principal Prepayments made during the related Prepayment
         Period;

                  (xii) separately stated for each Loan Group, the aggregate
         amount of Realized Losses incurred during the related Collection Period
         and the cumulative amount of Realized Losses;

                  (xiii) the Certificate Principal Balance of each Class of
         Certificates, after giving effect to the distributions, and allocations
         of Realized Losses or Applied Realized Loss Amounts, as applicable,
         made on such Distribution Date, separately identifying any reduction
         thereof due to allocations of Realized Losses or Applied Realized Loss
         Amounts;

                  (xiv) the Accrued Certificate Interest in respect of each
         Class of Certificates for such Distribution Date and any related Cap
         Carryover Amounts, and the respective portions thereof, if any,
         remaining unpaid following the distributions made in respect of such
         Certificates on such Distribution Date;

                  (xv) the aggregate amount of any Prepayment Interest
         Shortfalls for such Distribution Date, to the extent not covered by
         payments by the Servicer pursuant to Section 3.23;

                  (xvi) the Cap Carryover Amounts distributed on such
         Distribution Date, the amounts remaining after giving effect to
         distributions thereof on such Distribution Date and the amount of all
         Cap Carryover Amounts covered by withdrawals from the Class A-1 Reserve
         Account, the Class A-2A, Class A-2B and Class A-2C Reserve Account and
         the Class M and Class B Reserve Account on such Distribution Date;

                  (xvii) any Overcollateralization Deficiency after giving
         effect to the distribution of principal on such Distribution Date;

                  (xviii) whether a Trigger Event has occurred and is
         continuing, and the cumulative Realized Losses, as a percentage of the
         original Pool Balance;

                  (xix) the Available Funds;

                  (xx) the rate at which interest accrues for each Class of
         Certificates for such Distribution Date;

                                      -93-
<PAGE>

                  (xxi) the information contained in the Liquidation Report for
         such Distribution Date;

                  (xxii) the aggregate Principal Balance of Mortgage Loans
         purchased by the Servicer, the Originator or the Seller during the
         related Prepayment Period and indicating the section of this Agreement
         requiring or allowing the purchase of each such Mortgage Loan;

                  (xxiii) the aggregate Principal Balance of the Mortgage Loans
         repurchased by the Servicer during the related Prepayment Period in
         connection with Section 3.16;

                  (xxiv) the amount of the Credit Risk Manager Fee paid;

                  (xxv) the Mortgage Loan identifying number of each Mortgage
         Loan with a Prepayment Charge that was the subject of a Principal
         Prepayment in full during the related Collection Period, the Prepayment
         Charge listed on each related Mortgage Note and the Prepayment Charge
         collected or the Servicer Prepayment Charge Payment Amount paid by the
         Servicer with respect to each such Mortgage Loan; and

                  (xxvi) the amount of Subsequent Recoveries received during the
         related Prepayment Period.

                  The Securities Administrator may fully rely upon and shall
have no liability with respect to information with respect to the Mortgage Loans
provided by the Servicer.

                  In the case of information furnished pursuant to subclauses
(i), (ii) and (xiii) above, the amounts shall be expressed in a separate section
of the report as a dollar amount for each Class for each $1,000 original dollar
amount as of the Cut-off Date.

                  The Securities Administrator will make the Distribution Date
Statement (and, at its option, any additional files containing the same
information in an alternative format) available each month to
Certificateholders, and other parties to this Agreement via the Securities
Administrator's Internet website. The Securities Administrator's Internet
website shall initially be located at "www.ctslink.com." Assistance in using the
website can be obtained by calling the Securities Administrator's customer
service desk at (301) 815-6600. Parties that are unable to use the website are
entitled to have a paper copy mailed to them via first class mail by calling the
customer service desk and indicating such. The Securities Administrator shall
have the right to change the way the monthly statements to Certificateholders
are distributed in order to make such distribution more convenient and/or more
accessible to the above parties and the Securities Administrator shall provide
timely and adequate notification to all above parties regarding any such
changes.

                  (b) Within a reasonable period of time after the end of each
calendar year, the Securities Administrator shall furnish to the NIMS Insurer
and each Person who at any time during the calendar year was a Certificateholder
of a Regular Certificate, if requested in writing by such Person, such
information as is reasonably necessary to provide to such Person a statement
containing the information set forth in subclauses (i), (ii), (xiv) and (xviii)
above, aggregated for such calendar year or applicable portion thereof during
which such Person was a Certificateholder. Such obligation of the Securities
Administrator shall be deemed to have been satisfied to the extent that
substantially comparable information shall be prepared and furnished by the
Securities Administrator to Certificateholders pursuant to any requirements of
the Code as are in force from time to time.

                  (c) On each Distribution Date, the Securities Administrator
shall make available to the Class R Certificateholder a copy of the reports made
available to the Regular Certificateholders in respect of such Distribution Date
with such other information as the Securities Administrator deems necessary or
appropriate. Such obligation of the Securities Administrator shall be deemed to
have been satisfied to the extent that substantially comparable information
shall be prepared and furnished to Class R Certificateholder by the Securities
Administrator pursuant to any requirements of the Code as from time to time in
force.

                                      -94-
<PAGE>

                  Section 4.07 Remittance Reports; Advances.

                  (a) On the second Business Day following each Determination
Date but in no event later than the 18th day of each month (or if such 18th day
is not a Business Day, the preceding Business Day), the Servicer shall deliver
to the Securities Administrator and the NIMS Insurer by telecopy (or by such
other means as the Servicer, the NIMS Insurer and the Securities Administrator
may agree from time to time) a Remittance Report with respect to the related
Distribution Date. On the same date, the Servicer shall electronically forward
to the Securities Administrator in such medium as may be agreed between the
Servicer and the Securities Administrator the information set forth in such
Remittance Report with respect to the related Distribution Date and such
information reasonably available to the Servicer necessary in order for the
Securities Administrator to perform the calculations necessary to make the
distributions contemplated by Section 4.01, 4.02 and 4.03 and to prepare the
Distribution Date Statement. The Securities Administrator shall not be
responsible to recompute, recalculate or verify any information provided to it
by the Servicer.

                  (b) The amount of Advances to be made by the Servicer for any
Distribution Date shall equal, subject to Section 4.07(d), the sum of (i) the
aggregate amount of Monthly Payments (net of the related Servicing Fee), due
during the related Collection Period in respect of the Mortgage Loans, which
Monthly Payments were delinquent on a contractual basis as of the close of
business on the related Determination Date and (ii) with respect to each REO
Property, which REO Property was acquired during or prior to the related
Collection Period and as to which REO Property an REO Disposition did not occur
during the related Collection Period, an amount equal to the excess, if any, of
the REO Imputed Interest on such REO Property for such Collection Period, over
the net income from such REO Property transferred to the Distribution Account
pursuant to Section 3.13 for distribution on such Distribution Date.

                  On or before 1:00 p.m. New York time on the Servicer
Remittance Date, the Servicer shall remit in immediately available funds to the
Securities Administrator for deposit in the Distribution Account an amount equal
to the aggregate amount of Advances, if any, to be made in respect of the
Mortgage Loans for the related Distribution Date either (i) from its own funds
or (ii) from the Collection Account, to the extent of funds held therein for
future distribution (in which case it will cause to be made an appropriate entry
in the records of the Collection Account that amounts held for future
distribution have been, as permitted by this Section 4.07, used by the Servicer
in discharge of any such Advance) or (iii) in the form of any combination of (i)
and (ii) aggregating the total amount of Advances to be made by the Servicer
with respect to the Mortgage Loans. Any amounts held for future distribution and
so used shall be appropriately reflected in the Servicer's records and replaced
by the Servicer by deposit in the Collection Account on or before any future
Servicer Remittance Date to the extent that the Available Funds for the related
Distribution Date (determined without regard to Advances to be made on the
Servicer Remittance Date) shall be less than the total amount that would be
distributed to the Classes of Certificateholders pursuant to Section 4.01 and
4.02 on such Distribution Date if such amounts held for future distributions had
not been so used to make Advances. The Securities Administrator will provide
notice to the Servicer and NIMS Insurer by telecopy by the close of business on
any Servicer Remittance Date in the event that the amount remitted by the
Servicer to the Securities Administrator on such date is less than the Advances
required to be made by the Servicer for the related Distribution Date, as set
forth in the related Remittance Report.

                  (c) The obligation of the Servicer to make such Advances is
mandatory, notwithstanding any other provision of this Agreement but subject to
(d) below, and, with respect to any Mortgage Loan, shall continue until the
earlier of such time as such Mortgage Loan is paid in full by the Mortgagor or
disposed of by the Trust, or until the recovery of all Liquidation Proceeds
thereon.

                                      -95-
<PAGE>

                  (d) Notwithstanding anything herein to the contrary, no
Advance or Servicing Advance shall be required to be made hereunder by the
Servicer if such Advance would, if made, constitute a Nonrecoverable Advance.
The determination by the Servicer that it has made a Nonrecoverable Advance or
that any proposed Advance, if made, would constitute a Nonrecoverable Advance,
shall be evidenced by an Officers' Certificate of the Servicer delivered to the
Depositor, the NIMS Insurer, the Securities Administrator and the Trustee. The
Trustee shall be entitled to conclusively rely upon any such determination by
the Servicer.

                  Section 4.08 REMIC Distributions and Allocation of Losses.

                  (a) On each Distribution Date, the Securities Administrator
shall cause in the following order of priority, the following amounts to be
distributed by REMIC 1 to REMIC 2 on account of the REMIC 1 Regular Interests or
withdrawn from the Distribution Account and distributed to the Holders of the
Class R Certificates (in respect of the Class R-1 Interest), as the case may be:

                  (i) to Holders of REMIC 1 Regular Interest LT1AA, REMIC 1
         Regular Interest LT1A1, REMIC 1 Regular Interest LT1A2A, REMIC 1
         Regular Interest LT1A2B, REMIC 1 Regular Interest LT1A2C, REMIC 1
         Regular Interest LT1M1, REMIC 1 Regular Interest LT1M2, REMIC 1 Regular
         Interest LT1M3, REMIC 1 Regular Interest LT1M4, REMIC 1 Regular
         Interest LT1M5, REMIC 1 Regular Interest LT1M6, REMIC 1 Regular
         Interest LT1M7, REMIC 1 Regular Interest LT1M8, REMIC 1 Regular
         Interest LT1M9, REMIC 1 Regular Interest LT1M10, REMIC 1 Regular
         Interest LT1B1, REMIC 1 Regular Interest LT1B2, REMIC 1 Regular
         Interest LT1B3, REMIC 1 Regular Interest LT1P and REMIC 1 Regular
         Interest LT1ZZ, pro rata, in an amount equal to (A) the Uncertificated
         Accrued Interest for such Distribution Date, plus (B) any amounts in
         respect thereof remaining unpaid from previous Distribution Dates.
         Amounts payable as Uncertificated Accrued Interest in respect of REMIC
         1 Regular Interest LT1ZZ shall be reduced and deferred when the REMIC 1
         Overcollateralized Amount is less than the REMIC 1
         Overcollateralization Target Amount, by the lesser of (x) the amount of
         such difference and (y) the Maximum LT1ZZ Uncertificated Accrued
         Interest Deferral Amount and such amount will be payable to the Holders
         of REMIC 1 Regular Interest LT1A1, REMIC 1 Regular Interest LT1A2A,
         REMIC 1 Regular Interest LT1A2B, REMIC 1 Regular Interest LT1A2C, REMIC
         1 Regular Interest LT1M1, REMIC 1 Regular Interest LT1M2, REMIC 1
         Regular Interest LT1M3, REMIC 1 Regular Interest LT1M4, REMIC 1 Regular
         Interest LT1M5, REMIC 1 Regular Interest LT1M6, REMIC 1 Regular
         Interest LT1M7, REMIC 1 Regular Interest LT1M8, REMIC 1 Regular
         Interest LT1M9, REMIC 1 Regular Interest LT1M10, REMIC 1 Regular
         Interest LT1B1, REMIC 1 Regular Interest LT1B2 and REMIC 1 Regular
         Interest LT1B3, in the same proportion as the Overcollateralization
         Deficiency is allocated to the Corresponding Certificates and the
         Uncertificated Principal Balance of REMIC 1 Regular Interest LT1ZZ
         shall be increased by such amount;

                  (ii) to Holders of REMIC 1 Regular Interest LT1SUB, REMIC 1
         Regular Interest LT1GRP, REMIC 1 Regular Interest LT2SUB, REMIC 1
         Regular Interest LT2GRP and REMIC 1 Regular Interest LTXX, pro rata, in
         an amount equal to (A) the Uncertificated Accrued Interest for such
         Distribution Date, plus (B) any amounts in respect thereof remaining
         unpaid from previous Distribution Dates;

                  (iii) to the Holders of REMIC 1 Regular Interests, in an
         amount equal to the remainder of the REMIC 1 Marker Allocation
         Percentage of Available Funds for such Distribution Date after the
         distributions made pursuant to clause (i) above, allocated as follows:

                                      -96-
<PAGE>

                  (1)   to REMIC 1 Regular Interest LT1AA, 98.00% of such
                        remainder, until the Uncertificated Principal Balance of
                        such Uncertificated REMIC 1 Regular Interest is reduced
                        to zero provided, however, that REMIC 1 Regular Interest
                        LT1P shall not be reduced until the Distribution Date
                        immediately following the expiration of the latest
                        Prepayment Charge or any Distribution Date thereafter,
                        at which point such amount shall be distributed to REMIC
                        1 Regular Interest LT1P, until $100 has been distributed
                        pursuant to this clause;

                  (2)   to REMIC 1 Regular Interest LT1A1, REMIC 1 Regular
                        Interest LT1A2A, REMIC 1 Regular Interest LT1A2B, REMIC
                        1 Regular Interest LT1A2C, REMIC 1 Regular Interest
                        LT1M1, REMIC 1 Regular Interest LT1M2, REMIC 1 Regular
                        Interest LT1M3, REMIC 1 Regular Interest LT1M4, REMIC 1
                        Regular Interest LT1M5, REMIC 1 Regular Interest LT1M6,
                        REMIC 1 Regular Interest LT1M7, REMIC 1 Regular Interest
                        LT1M8, REMIC 1 Regular Interest LT1M9, REMIC 1 Regular
                        Interest LT1M10, REMIC 1 Regular Interest LT1B1, REMIC 1
                        Regular Interest LT1B2 and REMIC 1 Regular Interest
                        LT1B3, 1.00% of such remainder, in the same proportion
                        as principal payments are allocated to the Corresponding
                        Certificates, until the Uncertificated Principal
                        Balances of such REMIC 1 Regular Interests are reduced
                        to zero; then

                  (3)   to REMIC 1 Regular Interest LT1ZZ, 1.00% of such
                        remainder, until the Uncertificated Principal Balance of
                        such REMIC 1 Regular Interest is reduced to zero;

                  (4)   any remaining amount to the Holders of the Class R
                        Certificates (in respect of the Class R-1 Interest);

         provided, however, that (i) 98.00% and (ii) 2.00% of any principal
         payments that are attributable to an Aggregate Overcollateralization
         Release Amount shall be allocated to (i) REMIC 1 Regular Interest LT1AA
         and REMIC 1 Regular Interest LT1P and (ii) REMIC 1 Regular Interest
         LT1ZZ, respectively; and

                  (iv) to the Holders of REMIC 1 Regular Interests, in an amount
         equal to the REMIC 1 Sub WAC Allocation Percentage of Available Funds
         for such Distribution Date after the distributions made pursuant to
         clause (i) above, such that distributions of principal shall be deemed
         to be made to the REMIC 1 Regular Interests first, so as to keep the
         Uncertificated Principal Balance of each REMIC 1 Regular Interest
         ending with the designation "GRP" equal to 0.01% of the aggregate
         Principal Balance of the Mortgage Loans in the related group of
         Mortgage Loans; second, to each REMIC 1 Regular Interest ending with
         the designation "SUB," so that the Uncertificated Principal Balance of
         each such REMIC 1 Regular Interest is equal to 0.01% of the excess of
         (x) the aggregate Principal Balance of the Mortgage Loans in the
         related group of Mortgage Loans over (y) the aggregate current
         Certificate Principal Balance of the Class A Certificates in the
         related group of Mortgage Loans (except that if any such excess is a
         larger number than in the preceding distribution period, the least
         amount of principal shall be distributed to such REMIC 1 Regular
         Interests such that the REMIC 1 Subordinated Balance Ratio is
         maintained); and third, any remaining principal to REMIC 1 Regular
         Interest LTXX.

                                      -97-
<PAGE>

                  (b) The Securities Administrator shall cause the following
allocation of losses:

                  (i) The REMIC 1 Marker Allocation Percentage of the aggregate
         amount of any Prepayment Interest Shortfalls and the REMIC 1 Marker
         Allocation Percentage of the aggregate amount of any Relief Act
         Interest Shortfalls incurred in respect of the Mortgage Loans for any
         Distribution Date shall be allocated first, to Uncertificated Accrued
         Interest payable to (i) REMIC 1 Regular Interest LT1AA and REMIC 1
         Regular Interest LT1P and (ii) REMIC 1 Regular Interest LT1ZZ up to an
         aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount,
         98% and 2%, respectively, and thereafter among REMIC 1 Regular Interest
         LT1A1, REMIC 1 Regular Interest LT1A2A, REMIC 1 Regular Interest
         LT1A2B, REMIC 1 Regular Interest LT1A2C, REMIC 1 Regular Interest
         LT1M1, REMIC 1 Regular Interest LT1M2, REMIC 1 Regular Interest LT1M3,
         REMIC 1 Regular Interest LT1M4, REMIC 1 Regular Interest LT1M5, REMIC 1
         Regular Interest LT1M6, REMIC 1 Regular Interest LT1M7, REMIC 1 Regular
         Interest LT1M8, REMIC 1 Regular Interest LT1M9, REMIC 1 Regular
         Interest LT1M10, REMIC 1 Regular Interest LT1B1, REMIC 1 Regular
         Interest LT1B2, REMIC 1 Regular Interest LT1B3 and REMIC 1 Regular
         Interest LT1ZZ pro rata based on, and to the extent of, one month's
         interest at the then applicable respective Uncertificated REMIC 1
         Pass-Through Rate on the respective Uncertificated Principal Balance of
         each such REMIC 1 Regular Interest;

                  (ii) The REMIC 1 Sub WAC Allocation Percentage of the
         aggregate amount of any Prepayment Interest Shortfalls and the REMIC 1
         Sub WAC Allocation Percentage of the aggregate amount of any Relief Act
         Interest Shortfalls incurred in respect of the Mortgage Loans for any
         Distribution Date shall be allocated first, to Uncertificated Accrued
         Interest payable to REMIC 1 Regular Interest LT1SUB, REMIC 1 Regular
         Interest LT1GRP, REMIC 1 Regular Interest LT2SUB, REMIC 1 Regular
         Interest LT2GRP and REMIC 1 Regular Interest LTXX, pro rata, based on,
         and to the extent of, one month's interest at the then applicable
         respective Uncertificated REMIC 1 Pass-Through Rate on the respective
         Uncertificated Principal Balance of each such REMIC 1 Regular Interest;

                  (iii) The REMIC 1 Marker Allocation Percentage of all Realized
         Losses on the Mortgage Loans shall be allocated by the Trustee on each
         Distribution Date to the following REMIC 1 Regular Interests in the
         specified percentages, as follows: first, to Uncertificated Accrued
         Interest payable to (i) REMIC 1 Regular Interest LT1AA and REMIC 1
         Regular Interest LT1P and (ii) REMIC 1 Regular Interest LT1ZZ up to an
         aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount,
         98% and 2%, respectively; second, to the Uncertificated Principal
         Balances of REMIC 1 Regular Interest LT1AA and REMIC 1 Regular Interest
         LT1ZZ up to an aggregate amount equal to the REMIC 1 Principal Loss
         Allocation Amount, 98% and 2%, respectively; third, to the
         Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA,
         REMIC 1 Regular Interest LT1B3 and REMIC 1 Regular Interest LT1ZZ, 98%,
         1% and 1%, respectively, until the Uncertificated Principal Balance of
         REMIC 1 Regular Interest LT1B3 has been reduced to zero; fourth, to the
         Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA,
         REMIC 1 Regular Interest LT1B2 and REMIC 1 Regular Interest LT1ZZ, 98%,
         1% and 1%, respectively, until the Uncertificated Principal Balance of
         REMIC 1 Regular Interest LT1B2 has been reduced to zero; fifth, to the

                                      -98-
<PAGE>

         Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA,
         REMIC 1 Regular Interest LT1B1 and REMIC 1 Regular Interest LT1ZZ, 98%,
         1% and 1%, respectively, until the Uncertificated Principal Balance of
         REMIC 1 Regular Interest LT1B1 has been reduced to zero; sixth, to the
         Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA,
         REMIC 1 Regular Interest LT1M10 and REMIC 1 Regular Interest LT1ZZ,
         98%, 1% and 1%, respectively, until the Uncertificated Principal
         Balance of REMIC 1 Regular Interest LT1M10 has been reduced to zero;
         seventh, to the Uncertificated Principal Balances of REMIC 1 Regular
         Interest LT1AA, REMIC 1 Regular Interest LT1M9 and REMIC 1 Regular
         Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated
         Principal Balance of REMIC 1 Regular Interest LT1M9 has been reduced to
         zero; eighth, to the Uncertificated Principal Balances of REMIC 1
         Regular Interest LT1AA, REMIC 1 Regular Interest LT1M8 and REMIC 1
         Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the
         Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M8 has
         been reduced to zero; ninth, to the Uncertificated Principal Balances
         of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1M7 and
         REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the
         Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M7 has
         been reduced to zero; tenth, to the Uncertificated Principal Balances
         of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1M6 and
         REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the
         Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M6 has
         been reduced to zero; eleventh, to the Uncertificated Principal
         Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest
         LT1M5 and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively,
         until the Uncertificated Principal Balance of REMIC 1 Regular Interest
         LT1M5 has been reduced to zero; twelfth, to the Uncertificated
         Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular
         Interest LT1M4 and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%,
         respectively, until the Uncertificated Principal Balance of REMIC 1
         Regular Interest LT1M4 has been reduced to zero; thirteenth, to the
         Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA,
         REMIC 1 Regular Interest LT1M3 and REMIC 1 Regular Interest LT1ZZ, 98%,
         1% and 1%, respectively, until the Uncertificated Principal Balance of
         REMIC 1 Regular Interest LT1M3 has been reduced to zero; fourteenth, to
         the Uncertificated Principal Balances of REMIC 1 Regular Interest
         LT1AA, REMIC 1 Regular Interest LT1M2 and REMIC 1 Regular Interest
         LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
         Balance of REMIC 1 Regular Interest LT1M2 has been reduced to zero; and
         fifteenth, to the Uncertificated Principal Balances of REMIC 1 Regular
         Interest LT1AA, REMIC 1 Regular Interest LT1M1 and REMIC 1 Regular
         Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated
         Principal Balances of REMIC 1 Regular Interest LT1M1 has been reduced
         to zero; and

                  (iv) The REMIC 1 Sub WAC Allocation Percentage of all Realized
         Losses shall be applied after all distributions have been made on each
         Distribution Date first, so as to keep the Uncertificated Principal
         Balance of each REMIC 1 Regular Interest ending with the designation
         "GRP" equal to 0.01% of the aggregate Stated Principal Balance of the
         Mortgage Loans in the related Loan Group; second, to each REMIC 1
         Regular Interest ending with the designation "SUB," so that the
         Uncertificated Principal Balance of each such REMIC 1 Regular Interest
         is equal to 0.01% of the excess of (x) the aggregate Principal Balance
         of the Mortgage Loans in the related Loan Group over (y) the aggregate
         current Certificate Principal Balances of the Class A Certificates in
         the related group of Mortgage Loans (except that if any such excess is
         a larger number than in the preceding distribution period, the least
         amount of Realized Losses shall be applied to such REMIC 1 Regular
         Interests such that the REMIC 1 Subordinated Balance Ratio is
         maintained); and third, any remaining Realized Losses shall be
         allocated to REMIC 1 Regular Interest LTXX.

                                      -99-
<PAGE>

                  (c) On each Distribution Date, all amounts representing
Prepayment Charges will be distributed from REMIC 1 to the holder of the Class P
Certificate. Such amount shall not reduce the Certificate Balance of the Class P
Certificates.

                  (d) Notwithstanding anything to the contrary contained herein,
the above distributions in this Section 4.08 (other than on the Certificates are
deemed distributions, and distributions of funds from the Distribution Account
shall be made only in accordance with Sections 4.01 and 4.02 hereof.

                                   ARTICLE V

                                THE CERTIFICATES

                  Section 5.01 The Certificates.

                  Each of the Class A-1, Class A-2A, Class A-2B, Class A-2C,
Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7,
Class M-8, Class M-9, Class M-10, Class B-1, Class B-2, Class B-3, Class CE,
Class P and Class R Certificates shall be substantially in the forms annexed
hereto as exhibits, and shall, on original issue, be executed by the Securities
Administrator and authenticated and delivered by the Certificate Registrar to or
upon the receipt of a Written Order to Authenticate from the Depositor
concurrently with the sale and assignment to the Securities Administrator of the
Trust Fund. Each Class of the Class A, Class M and Class B Certificates shall be
initially evidenced by one or more Certificates representing a Percentage
Interest with a minimum dollar denomination of $25,000 and integral multiples of
$1 in excess thereof. The Class P Certificates shall be initially evidenced by
one or more Certificates representing a Percentage Interest with a minimum
dollar denomination of $20 and integral multiples of $20 in excess thereof. The
Class CE Certificates are issuable only in minimum Percentage Interests of 10%.
The Class R Certificate is issuable only as a single certificate.

                  The Certificates shall be executed on behalf of the Trust by
manual or facsimile signature on behalf of the Securities Administrator by a
Responsible Officer. Certificates bearing the manual or facsimile signatures of
individuals who were, at the time when such signatures were affixed, authorized
to sign on behalf of the Securities Administrator shall bind the Trust,
notwithstanding that such individuals or any of them have ceased to be so
authorized prior to the authentication and delivery of such Certificates or did
not hold such offices at the date of such Certificate. No Certificate shall be
entitled to any benefit under this Agreement or be valid for any purpose, unless
such Certificate shall have been manually authenticated by the Certificate
Registrar substantially in the form provided for herein, and such authentication
upon any Certificate shall be conclusive evidence, and the only evidence, that
such Certificate has been duly authenticated and delivered hereunder. All
Certificates shall be dated the date of their authentication. Subject to Section
5.02(c), the Class A, Class M, Class B-1 and Class B-2 Certificates shall be
Book-Entry Certificates. The Class CE, Class P and Class R Certificates shall
not be Book-Entry Certificates but shall be issued in fully registered
certificate form. The Class B-3 Certificates shall be issued in fully registered
certificate form on the Closing Date but, subject to Section 5.02(c), shall
become Book-Entry Certificates upon surrender by the Seller or any Affiliate
thereof for registration of transfer to a transferee that is not the Seller or
an Affiliate thereof. Thereupon, the Certificate Custodian shall increase the
balance of the related Book-Entry Certificates or the Securities Administrator
shall execute and the Certificate Registrar shall authenticate and deliver such
Book-Entry Certificates, as applicable.

                                     -100-
<PAGE>

                  Section 5.02 Registration of Transfer and Exchange of
Certificates.

                  (a) The Certificate Registrar shall cause to be kept at the
Corporate Trust Office of the Securities Administrator a Certificate Register in
which, subject to such reasonable regulations as it may prescribe, the
Certificate Registrar shall provide for the registration of Certificates and of
transfers and exchanges of Certificates as herein provided. The Securities
Administrator shall initially serve as Certificate Registrar for the purpose of
registering Certificates and transfers and exchanges of Certificates as herein
provided. The Securities Administrator as Certificate Registrar shall be subject
to the same standards of care, limitations on liability and rights to indemnity
as the Securities Administrator, and the provisions of Sections 8.01, 8.02,
8.03, 8.04, 8.05, 8.14 and 8.15 shall apply to the Certificate Registrar to the
same extent as they apply to the Securities Administrator. Any Certificate
Registrar appointed in accordance with this Section 5.02(a) may at any time
resign by giving at least 30 days' advance written notice of resignation to the
Securities Administrator, the Trustee, the Servicer and the Depositor, such
resignation to become effective upon appointment of a successor Certificate
Registrar.

                  Upon surrender for registration of transfer of any Certificate
at any office or agency of the Certificate Registrar maintained for such purpose
pursuant to the foregoing paragraph and, in the case of the Class R Certificate,
upon satisfaction of the conditions set forth below, the Securities
Administrator on behalf of the Trust shall execute and the Certificate Registrar
shall authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Certificates of the same aggregate Percentage
Interest.

                  At the option of the Certificateholders, Certificates may be
exchanged for other Certificates in authorized denominations and the same
aggregate Percentage Interests, upon surrender of the Certificates to be
exchanged at any such office or agency. Whenever any Certificates are so
surrendered for exchange, the Securities Administrator shall execute on behalf
of the Trust and the Certificate Registrar shall authenticate and deliver the
Certificates which the Certificateholder making the exchange is entitled to
receive. Every Certificate presented or surrendered for registration of transfer
or exchange shall (if so required by the Securities Administrator or the
Certificate Registrar) be duly endorsed by, or be accompanied by a written
instrument of transfer satisfactory to the Securities Administrator and the
Certificate Registrar duly executed by, the Holder thereof or his attorney duly
authorized in writing.

                  (b) Upon original issuance, the Book-Entry Certificates shall
be issued in the form of one or more typewritten certificates, to be delivered
to the Depository, the initial Depository, by, or on behalf of, the Depositor;
or to, and deposited with the Certificate Custodian, on behalf of the
Depository, if directed to do so pursuant to instructions from the Depository.
Except as provided in paragraph (c) below, the Book-Entry Certificates shall at
all times remain registered in the name of the Depository or its nominee and at
all times: (i) registration of such Certificates may not be transferred by the
Securities Administrator except to another Depository; (ii) the Depository shall
maintain book-entry records with respect to the Certificate Owners and with
respect to ownership and transfers of such Certificates; (iii) ownership and
transfers of registration of such Certificates on the books of the Depository
shall be governed by applicable rules established by the Depository; (iv) the
Depository may collect its usual and customary fees, charges and expenses from
its Depository Participants; (v) the Securities Administrator shall for all
purposes deal with the Depository as representative of the Certificate Owners of
the Certificates for purposes of exercising the rights of Holders under this
Agreement, and requests and directions for and votes of such representative
shall not be deemed to be inconsistent if they are made with respect to
different Certificate Owners; (vi) the Securities Administrator may rely and
shall be fully protected in relying upon information furnished by the Depository
with respect to its Depository Participants and furnished by the Depository
Participants with respect to indirect participating firms and Persons shown on
the books of such indirect participating firms as direct or indirect Certificate
Owners; and (vii) the direct participants of the Depository shall have no rights
under this Agreement under or with respect to any of the Certificates held on
their behalf by the Depository, and the Depository may be treated by the
Securities Administrator and its agents, employees, officers and directors as
the absolute owner of the Certificates for all purposes whatsoever.

                                     -101-
<PAGE>

                  All transfers by Certificate Owners of Book-Entry Certificates
shall be made in accordance with the procedures established by the Depository
Participant or brokerage firm representing such Certificate Owners. Each
Depository Participant shall only transfer Book-Entry Certificates of
Certificate Owners that it represents or of brokerage firms for which it acts as
agent in accordance with the Depository's normal procedures. The parties hereto
are hereby authorized to execute a Letter of Representations with the Depository
or take such other action as may be necessary or desirable to register a
Book-Entry Certificate to the Depository. In the event of any conflict between
the terms of any such Letter of Representation and this Agreement, the terms of
this Agreement shall control.

                  (c) If the Depository advises the Securities Administrator in
writing that the Depository is no longer willing or able to discharge properly
its responsibilities as Depository and neither the Securities Administrator nor
the Depositor is able to locate a qualified successor, upon surrender to the
Certificate Registrar of the Book-Entry Certificates by the Depository,
accompanied by registration instructions from the Depository for registration,
the Securities Administrator shall, at the Trust's expense, execute on behalf of
the Trust and the Certificate Registrar shall authenticate definitive, fully
registered certificates (the "Definitive Certificates"). None of the Depositor
or the Securities Administrator shall be liable for any delay in delivery of
such instructions and may conclusively rely on, and shall be protected in
relying on, such instructions. Upon the issuance of Definitive Certificates, the
Securities Administrator, the Certificate Registrar, the Trustee, the Servicer,
any Paying Agent and the Depositor shall recognize the Holders of the Definitive
Certificates as Certificateholders hereunder.

                  (d) Except with respect to a transfer of the Private
Certificates between or among the Depositor, the Seller, their affiliates or
both, no transfer, sale, pledge or other disposition of any Private Certificate
shall be made unless such disposition is exempt from the registration
requirements of the 1933 Act, and any applicable state securities laws or is
made in accordance with the 1933 Act and laws. In the event of any such
transfer, (i) unless such transfer is made in reliance upon Rule 144A (as
evidenced by the investment letter delivered to the Certificate Registrar, in
substantially the form attached hereto as Exhibit J) under the 1933 Act, the
Certificate Registrar and the Depositor shall require a written Opinion of
Counsel (which may be in-house counsel) acceptable to and in form and substance
reasonably satisfactory to the Certificate Registrar and the Depositor that such
transfer may be made pursuant to an exemption, describing the applicable
exemption and the basis therefor, from the 1933 Act or is being made pursuant to
the 1933 Act, which Opinion of Counsel shall not be an expense of the
Certificate Registrar or the Depositor or (ii) the Certificate Registrar shall
require the transferor to execute a transferor certificate (in substantially the
form attached hereto as Exhibit L) and the transferee to execute an investment
letter (in substantially the form attached hereto as Exhibit J) acceptable to
and in form and substance reasonably satisfactory to the Depositor and the
Certificate Registrar certifying to the Depositor and the Certificate Registrar
the facts surrounding such transfer, which investment letter shall not be an
expense of the Certificate Registrar or the Depositor. The Holder of a Private
Certificate desiring to effect such transfer shall, and does hereby agree to,
indemnify the Certificate Registrar and the Depositor against any liability that
may result if the transfer is not so exempt or is not made in accordance with
such federal and state laws.

                  No transfer of an ERISA-Restricted Certificate shall be made
unless the Certificate Registrar shall have received either (i) a representation
from the transferee of such Certificate, acceptable to and in form and substance
satisfactory to the Certificate Registrar and the Depositor (such requirement is
satisfied only by the Certificate Registrar's receipt of a representation letter
from the transferee substantially in the form of Exhibit I hereto, as
appropriate), to the effect that such transferee is not an employee benefit plan
or arrangement subject to Section 406 of ERISA, a plan subject to Section 4975
of the Code or a plan subject to any federal, state or local law ("Similar Law")
materially similar to the foregoing provisions of ERISA or the Code, nor a

                                     -102-
<PAGE>

person acting on behalf of any such plan or arrangement nor using the assets of
any such plan or arrangement to effect such transfer or (ii) (except in the case
of a Class R, Class P or Class CE Certificate) if the purchaser is an insurance
company, a representation that the purchaser is an insurance company which is
purchasing such Certificates with funds contained in an "insurance company
general account" (as such term is defined in Section V(e) of Prohibited
Transaction Class Exemption 95-60 ("PTCE 95-60") and that the purchase and
holding of such Certificates are covered under Sections I and III of PTCE 95-60
or (iii) (except in the case of the Class R Certificate) in the case of any such
ERISA Restricted Certificate presented for registration in the name of an
employee benefit plan subject to ERISA or a plan or arrangement subject to
Section 4975 of the Code (or comparable provisions of any subsequent
enactments), or a trustee of any such plan or any other person acting on behalf
of any such plan or arrangement or using such plan's or arrangement's assets, an
Opinion of Counsel satisfactory to the Certificate Registrar, to the effect that
the purchase or holding of such ERISA Restricted Certificate will not constitute
or result in a non-exempt prohibited transaction within the meaning of ERISA,
Section 4975 of the Code or Similar Law and will not subject the Depositor, the
Servicer, the Securities Administrator, the Trustee, the NIMS Insurer or the
Certificate Registrar to any obligation in addition to those expressly
undertaken in this Agreement or to any liability. For purposes of clause (i) of
the preceding sentence, such representation shall be deemed to have been made to
the Certificate Registrar by the acceptance by a Certificate Owner of the
beneficial interest in any such Class of ERISA-Restricted Certificates, unless
the Certificate Registrar shall have received from the transferee an alternative
representation acceptable in form and substance to the Depositor.
Notwithstanding anything else to the contrary herein, any purported transfer of
an ERISA-Restricted Certificate to or on behalf of an employee benefit plan
subject to ERISA, Section 4975 of the Code or Similar Law without the delivery
to the Certificate Registrar of an Opinion of Counsel satisfactory to the
Certificate Registrar as described above shall be void and of no effect. Any
representations required to be made in subsection (i) and (ii) above in the case
of an ERISA-Restricted Certificate which is also a Book-Entry Certificate shall
be deemed to have been made by the acquisition of such Certificate.

                  Each Person who has or who acquires any Ownership Interest in
the Class R Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions and to
have irrevocably appointed the Depositor or its designee as its attorney-in-fact
to negotiate the terms of any mandatory sale under clause (v) below and to
execute all instruments of transfer and to do all other things necessary in
connection with any such sale, and the rights of each Person acquiring any
Ownership Interest in the Class R Certificate are expressly subject to the
following provisions:

                  (i) Each Person holding or acquiring any Ownership Interest in
         the Class R Certificate shall be a Permitted Transferee and shall
         promptly notify the Certificate Registrar of any change or impending
         change in its status as a Permitted Transferee.

                  (ii) No Person shall acquire an Ownership Interest in the
         Class R Certificate unless such Ownership Interest is a pro rata
         undivided interest.

                  (iii) In connection with any proposed transfer of any
         Ownership Interest in the Class R Certificate, the Certificate
         Registrar shall as a condition to registration of the transfer, require
         delivery to it, in form and substance satisfactory to it, of each of
         the following:

                                     -103-
<PAGE>

                  (A) an affidavit in the form of Exhibit K hereto from the
proposed transferee to the effect that, among other things, such transferee is a
Permitted Transferee and that it is not acquiring its Ownership Interest in the
Class R Certificate that is the subject of the proposed transfer as a nominee,
trustee or agent for any Person who is not a Permitted Transferee; and

                  (B) a covenant of the proposed transferee to the effect that
the proposed transferee agrees to be bound by and to abide by the transfer
restrictions applicable to the Class R Certificate.

                  (iv) Any attempted or purported transfer of any Ownership
         Interest in the Class R Certificate in violation of the provisions of
         this Section shall be absolutely null and void and shall vest no rights
         in the purported transferee. If any purported transferee shall, in
         violation of the provisions of this Section, become the Holder of the
         Class R Certificate, then the prior Holder of such Class R Certificate
         that is a Permitted Transferee shall, upon discovery that the
         registration of transfer of such Class R Certificate was not in fact
         permitted by this Section, be restored to all rights as Holder thereof
         retroactive to the date of registration of transfer of such Class R
         Certificate. The Certificate Registrar shall be under no liability to
         any Person for any registration of transfer of the Class R Certificate
         that is in fact not permitted by this Section or for making any
         distributions due on such Class R Certificate to the Holder thereof or
         taking any other action with respect to such Holder under the
         provisions of this Agreement so long as the Certificate Registrar
         received the documents specified in clause (iii). The Securities
         Administrator shall be entitled to recover from any Holder of the Class
         R Certificate that was in fact not a Permitted Transferee at the time
         such distributions were made all distributions made on such Class R
         Certificate. Any such distributions so recovered by the Securities
         Administrator shall be distributed and delivered by the Securities
         Administrator to the prior Holder of such Class R Certificate that is a
         Permitted Transferee.

                  (v) If any Person other than a Permitted Transferee acquires
         any Ownership Interest in the Class R Certificate in violation of the
         restrictions in this Section, then the Certificate Registrar shall have
         the right but not the obligation, without notice to the Holder of the
         Class R Certificate or any other Person having an Ownership Interest
         therein, to notify the Depositor to arrange for the sale of the Class R
         Certificate. The proceeds of such sale, net of commissions (which may
         include commissions payable to the Depositor or its Affiliates in
         connection with such sale), expenses and taxes due, if any, will be
         remitted by the Securities Administrator to the previous Holder of the
         Class R Certificate that is a Permitted Transferee, except that in the
         event that the Securities Administrator determines that the Holder of
         the Class R Certificate may be liable for any amount due under this
         Section or any other provisions of this Agreement, the Securities
         Administrator may withhold a corresponding amount from such remittance
         as security for such claim. The terms and conditions of any sale under
         this clause (v) shall be determined in the sole discretion of the
         Securities Administrator and it shall not be liable to any Person
         having an Ownership Interest in the Class R Certificate as a result of
         its exercise of such discretion.

                                     -104-
<PAGE>

                  (vi) If any Person other than a Permitted Transferee acquires
         any Ownership Interest in the Class R Certificate in violation of the
         restrictions in this Section, then the Securities Administrator will
         provide to the Internal Revenue Service, and to the persons specified
         in Sections 860E(e)(3) and (6) of the Code, information needed to
         compute the tax imposed under Section 860E(e)(5) of the Code on
         transfers of residual interests to disqualified organizations. The
         Securities Administrator shall be entitled to reasonable compensation
         for providing such information from the person to whom it is provided.

The foregoing provisions of this Section shall cease to apply to transfers
occurring on or after the date on which there shall have been delivered to the
Certificate Registrar, in form and substance satisfactory to the Certificate
Registrar, (i) written notification from each Rating Agency that the removal of
the restrictions on Transfer set forth in this Section will not cause such
Rating Agency to downgrade its rating of the Certificates and (ii) an Opinion of
Counsel to the effect that such removal will not cause any REMIC created
hereunder to fail to qualify as a REMIC.

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

                  All Certificates surrendered for registration of transfer or
exchange shall be cancelled by the Certificate Registrar and disposed of
pursuant to its standard procedures.

                  Section 5.03 Mutilated, Destroyed, Lost or Stolen
Certificates.

                  If (i) any mutilated Certificate is surrendered to the
Certificate Registrar or the Certificate Registrar receives evidence to its
satisfaction of the destruction, loss or theft of any Certificate and (ii) there
is delivered to the Securities Administrator, the Trustee, the Depositor, the
NIMS Insurer and the Certificate Registrar such security or indemnity as may be
required by them to save each of them harmless, then, in the absence of notice
to the Securities Administrator or the Certificate Registrar that such
Certificate has been acquired by a bona fide purchaser, the Securities
Administrator shall execute on behalf of the Trust, and the Certificate
Registrar shall authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Certificate, a new Certificate of like
tenor and Percentage Interest. Upon the issuance of any new Certificate under
this Section, the Securities Administrator or the Certificate Registrar may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including
the fees and expenses of the Securities Administrator and the Certificate
Registrar) in connection therewith. Any duplicate Certificate issued pursuant to
this Section, shall constitute complete and indefeasible evidence of ownership
in the Trust, as if originally issued, whether or not the lost, stolen or
destroyed Certificate shall be found at any time.

                                     -105-
<PAGE>

                  Section 5.04 Persons Deemed Owners.

                  The Servicer, the Depositor, the NIMS Insurer, the Securities
Administrator, the Trustee, the Certificate Registrar, any Paying Agent and any
agent of the Servicer, the Depositor, the NIMS Insurer, the Securities
Administrator, the Certificate Registrar, any Paying Agent or the Trustee may
treat the Person, including a Depository, in whose name any Certificate is
registered as the owner of such Certificate for the purpose of receiving
distributions pursuant to Section 4.01 and 4.02 and for all other purposes
whatsoever, and none of the Servicer, the Trust, the NIMS Insurer, the
Securities Administrator, the Trustee or any agent of any of them shall be
affected by notice to the contrary.

                  Section 5.05 Appointment of Paying Agent.

                  The Paying Agent shall make distributions to
Certificateholders from the Distribution Account pursuant to Section 4.01 and
4.02 and shall report the amounts of such distributions to the Securities
Administrator. The duties of the Paying Agent may include the obligation to
distribute statements and provide information to Certificateholders as required
hereunder. The Paying Agent hereunder shall at all times be an entity duly
incorporated and validly existing under the laws of the United States of America
or any state thereof, authorized under such laws to exercise corporate trust
powers and subject to supervision or examination by federal or state
authorities. The Paying Agent shall initially be the Securities Administrator.
The Securities Administrator may appoint a successor to act as Paying Agent,
which appointment shall be reasonably satisfactory to the Depositor, the NIMS
Insurer and the Rating Agencies. The Securities Administrator as Paying Agent
shall be subject to the same standards of care, limitations on liability and
rights to indemnity as the Securities Administrator, and the provisions of
Sections 8.01, 8.02, 8.03, 8.04, 8.05, 8.14 and 8.15 shall apply to the Paying
Agent to the same extent as they apply to the Securities Administrator. Any
Paying Agent appointed in accordance with this Section 5.05 may at any time
resign by giving at least 30 days' advance written notice of resignation to the
Securities Administrator, the Trustee, the Servicer, the NIMS Insurer and the
Depositor, such resignation to become effective upon appointment of a successor
Paying Agent.

                                   ARTICLE VI

                         THE SERVICER AND THE DEPOSITOR

                  Section 6.01 Liability of the Servicer and the Depositor.

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

                                     -106-
<PAGE>

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

                  Any entity into which the Servicer or the Depositor may be
merged or consolidated, or any entity resulting from any merger, conversion or
consolidation to which the Servicer or the Depositor shall be a party, or any
corporation succeeding to the business of the Servicer or the Depositor, shall
be the successor of the Servicer or the Depositor, as the case may be,
hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding; provided, however, that the successor servicer shall satisfy
all the requirements of Section 7.02 with respect to the qualifications of a
successor servicer.

                  Section 6.03 Limitation on Liability of the Servicer and
Others.

                  None of the Depositor, the Servicer, or any directors,
officers, employees or agents of the Depositor or the Servicer shall be under
any liability to the Trust or the Certificateholders for any action taken or for
refraining from the taking of any action, in good faith pursuant to this
Agreement, or for errors in judgment; provided, however, that this provision
shall not protect the Depositor or the Servicer or any such Person against any
liability which would otherwise be imposed by reason of any breach of
representations or warranties made by such party herein or against any specific
liability imposed on the Servicer for a breach of the Servicing Standard and/or
this Agreement, or against any liability that would otherwise be imposed by
reason of its respective willful misfeasance, bad faith, fraud or negligence in
the performance of its duties or by reason of its negligent disregard of its
respective obligations and duties hereunder; provided, further, that this
provision shall not be construed to entitle the Servicer to indemnity in the
event that amounts advanced by the Servicer to retire any senior lien exceed
Liquidation Proceeds (in excess of related liquidation expenses) realized with
respect to the related Mortgage Loan. The Depositor, the Servicer and any
director, officer, employee or agent of the Depositor or the Servicer, may rely
in good faith on any document of any kind which, prima facie, is properly
executed and submitted by any appropriate Person with respect to any matters
arising hereunder. The Depositor, the Servicer and any director, officer,
employee or agent of the Depositor or the Servicer shall be indemnified and held
harmless by the Trust against any loss, liability or expense incurred in
connection with any legal action relating to this Agreement or the Certificates,
other than any loss, liability or expense incurred in connection with any legal
action incurred by reason of its respective misfeasance, bad faith, fraud or
negligence, a breach of a representation or warranty made by such party
hereunder or (in the case of the Servicer) a breach of the Servicing Standard in
the performance of its respective duties or by reason of negligent disregard of
its respective obligations or duties hereunder. Neither the Depositor nor the
Servicer shall be under any obligation to appear in, prosecute or defend any
legal action unless such action is related to its respective duties under this
Agreement and in its opinion does not expose it to any expense or liability;
provided, however, that the Depositor or the Servicer may in their discretion
undertake any action related to their obligations hereunder which they may deem
necessary or desirable with respect to this Agreement and the rights and duties
of the parties hereto and the interests of the Certificateholders hereunder. In
such event, the reasonable legal expenses and costs of such action and any
liability resulting therefrom shall be expenses, costs and liabilities of the
Trust and the Servicer shall be entitled to pay such expenses from the proceeds
of the Trust or to be reimbursed therefor pursuant to Section 3.05(a) upon
presentation to the Securities Administrator of documentation of such expenses,
costs and liabilities. The Servicer's right to indemnity or reimbursement
pursuant to this Section shall survive any resignation or termination of the
Servicer pursuant to Section 6.04 or 7.01 with respect to any losses, expenses,
costs or liabilities arising prior to such resignation or termination (or
arising from events that occurred prior to such resignation or termination).

                                     -107-
<PAGE>

                  Section 6.04 Servicer Not to Resign.

                  Subject to the provisions of Section 7.01 and Section 6.02,
the Servicer shall not resign from the obligations and duties hereby imposed on
it except (i) upon determination that the performance of its obligations or
duties hereunder are no longer permissible under applicable law or are in
material conflict by reason of applicable law with any other activities carried
on by it or its subsidiaries or Affiliates, the other activities of the Servicer
so causing such a conflict being of a type and nature carried on by the Servicer
or its subsidiaries or Affiliates at the date of this Agreement or (ii) upon
satisfaction of the following conditions: (a) the Servicer has proposed a
successor servicer to the Trustee, the Securities Administrator and the NIMS
Insurer in writing and such proposed successor servicer is reasonably acceptable
to the Trustee, the Securities Administrator and the NIMS Insurer; and (b) each
Rating Agency shall have delivered a letter to the Trustee, the Securities
Administrator and the NIMS Insurer prior to the appointment of the successor
servicer stating that the proposed appointment of such successor servicer as
Servicer hereunder will not result in the reduction or withdrawal of the then
current rating of the Regular Certificates or the ratings that are in effect;
provided, however, that no such resignation by the Servicer shall become
effective until such successor servicer or, in the case of (i) above, the
Securities Administrator shall have assumed the Servicer's responsibilities and
obligations hereunder or the Securities Administrator shall have designated a
successor servicer in accordance with Section 7.02. Any such resignation shall
not relieve the Servicer of responsibility for any of the obligations specified
in Sections 7.01 and 7.02 as obligations that survive the resignation or
termination of the Servicer. Any such determination permitting the resignation
of the Servicer shall be evidenced by an Opinion of Counsel to such effect
delivered to the Trustee and the NIMS Insurer.

                  Section 6.05 Delegation of Duties.

                  In the ordinary course of business, the Servicer at any time
may delegate any of its duties hereunder to any Person, including any of its
Affiliates, who agrees to conduct such duties in accordance with standards
comparable to those set forth in Section 3.01. Such delegation shall not relieve
the Servicer of its liabilities and responsibilities with respect to such duties
and shall not constitute a resignation within the meaning of Section 6.04. The
Servicer shall provide the Trustee, the NIMS Insurer and the Rating Agencies
with 60 days prior written notice prior to the delegation of any of its duties
to any Person other than any of the Servicer's Affiliates or their respective
successors and assigns.

                                  ARTICLE VII

                                     DEFAULT

                  Section 7.01 Servicer Events of Termination.

                  (a) If any one of the following events ("Servicer Events of
Termination") shall occur and be continuing:

                  (i) The failure by the Servicer to make any Advance or to pay
         Compensating Interest which failure continues unremedied for a period
         of one Business Day after the first date on which written notice of
         such failure is given to the Servicer; or

                                     -108-
<PAGE>

                  (ii) Any other failure by the Servicer to deposit in the
         Collection Accounts or remit to the Securities Administrator for
         deposit in the Distribution Account any payment required to be made
         under the terms of this Agreement, which failure continues unremedied
         for a period of two Business Days after the first date on which (x) the
         Servicer has knowledge of such failure or (y) written notice of such
         failure is given to the Servicer; or

                  (iii) The failure by the Servicer to make any required
         Servicing Advance which failure continues unremedied for a period of 30
         days, or the failure by the Servicer duly to observe or perform, in any
         material respect, any other covenants, obligations or agreements of the
         Servicer as set forth in this Agreement, which failure continues
         unremedied for a period of 30 days, after the date (A) on which written
         notice of such failure, requiring the same to be remedied, shall have
         been given to the Servicer by the Trustee or the NIMS Insurer or by any
         Holder of a Regular Certificate evidencing at least 25% of the Voting
         Rights or (B) actual knowledge of such failure by a Servicing Officer
         of the Servicer; or

                  (iv) The entry against the Servicer of a decree or order by a
         court or agency or supervisory authority having jurisdiction in the
         premises for the appointment of a trustee, conservator, receiver or
         liquidator in any insolvency, conservatorship, receivership,
         readjustment of debt, marshalling of assets and liabilities or similar
         proceedings, or for the winding up or liquidation of its affairs, and
         the continuance of any such decree or order unstayed and in effect for
         a period of 60 days; or

                  (v) The Servicer shall voluntarily go into liquidation,
         consent to the appointment of a conservator or receiver or liquidator
         or similar person in any insolvency, readjustment of debt, marshalling
         of assets and liabilities or similar proceedings of or relating to the
         Servicer or of or relating to all or substantially all of its property;
         or a decree or order of a court or agency or supervisory authority
         having jurisdiction in the premises for the appointment of a
         conservator, receiver, liquidator or similar person in any insolvency,
         readjustment of debt, marshalling of assets and liabilities or similar
         proceedings, or for the winding-up or liquidation of its affairs, shall
         have been entered against the Servicer and such decree or order shall
         have remained in force undischarged, unbonded or unstayed for a period
         of 60 days; or the Servicer shall admit in writing its inability to pay
         its debts generally as they become due, file a petition to take
         advantage of any applicable insolvency or reorganization statute, make
         an assignment for the benefit of its creditors or voluntarily suspend
         payment of its obligations.

                  (b) Then, and in each and every such case, so long as a
Servicer Event of Termination shall not have been remedied within the applicable
grace period, (x) with respect solely to clause (i) above, if such Advance is
not made by 2:00 P.M., New York time, on the Business Day immediately following
the Servicer Remittance Date, upon actual knowledge of a Responsible Officer of
the Trustee, the Trustee may terminate all of the rights and obligations of the
Servicer under this Agreement and the Trustee as successor servicer, or another
successor servicer appointed in accordance with Section 7.02, shall immediately
make such Advance and assume, pursuant to Section 7.02, the duties of a
successor servicer and (y) in the case of clause (ii), (iii), (iv) and (v)
above, the Trustee shall, at the direction of the NIMS Insurer or Holders of
each Class of Regular Certificates evidencing Percentage Interests aggregating
not less than 51%, by notice then given in writing to the Servicer (and to the
Trustee if given by Holders of Certificates), terminate all of the rights and
obligations of the Servicer as servicer under this Agreement. Any such notice to
the Servicer shall also be given to each Rating Agency, the NIMS Insurer and the
Depositor. On or after the receipt by the Servicer (and by the Trustee if such
notice is given by the Holders) of such written notice, all authority and power
of the Servicer under this Agreement, whether with respect to the Certificates
or the Mortgage Loans or otherwise, shall pass to and be vested in the Trustee
pursuant to and under this Section or successor servicer appointed in connection
with Section 7.02; and, without limitation, the Trustee as successor servicer or
another successor servicer is hereby authorized and empowered to execute and
deliver, on behalf of the Servicer, as attorney-in-fact or otherwise, any and
all documents and other instruments, and to do or accomplish all other acts or
things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement of each Mortgage
Loan and Related Documents or otherwise. The Servicer agrees to cooperate with
the Trustee (and the applicable successor servicer) in effecting the termination

                                     -109-
<PAGE>

of the responsibilities and rights of the Servicer hereunder, including, without
limitation, the delivery to the Trustee (or the applicable successor servicer)
of all documents and records requested by it to enable it to assume the
Servicer's functions under this Agreement within ten Business Days subsequent to
such notice, the transfer within one Business Day subsequent to such notice from
the Trustee (or the applicable successor servicer) for the administration by it
of all cash amounts that shall at the time be held by the Servicer and to be
deposited by it in the Collection Accounts, the Distribution Account or any
Escrow Account or that have been deposited by the Servicer in such accounts or
thereafter received by the Servicer with respect to the Mortgage Loans or any
REO Property received by the Servicer. All reasonable out-of-pocket costs and
expenses (including attorneys' fees) incurred in connection with transferring
the servicing to the successor servicer and amending this Agreement to reflect
such succession as Servicer pursuant to this Section shall be paid by the
predecessor servicer (or if the predecessor servicer is the Trustee, the initial
servicer) upon presentation of reasonable documentation of such costs and
expenses, and if such predecessor Servicer defaults in its obligation to pay
such costs, such costs shall be paid by the successor Servicer or the Trustee
(in which case the successor Servicer or the Trustee shall be entitled to
reimbursement therefor from the assets of the Trust).

                  Notwithstanding any termination of the activities of a
Servicer hereunder, the Servicer shall be entitled to receive payment of all
accrued and unpaid Servicing Fees and reimbursement for all outstanding Advances
and Servicing Advances properly made prior to the date of termination in the
manner and at the times set forth herein.

                  Section 7.02 Trustee to Act; Appointment of Successor.

                  (a) Within 90 days of the time the Servicer (and the Trustee,
if notice is sent by the Holders) receives a notice of termination pursuant to
Section 7.01 or 6.04, the Trustee (or such other successor servicer as is
approved in accordance with this Agreement) shall be the successor in all
respects to the Servicer in its capacity as servicer under this Agreement and
the transactions set forth or provided for herein and shall be subject to all
the responsibilities, duties and liabilities relating thereto placed on the
Servicer by the terms and provisions hereof arising on and after its succession.
As compensation therefor, the Trustee (or such other successor servicer) shall
be entitled to such compensation as the Servicer would have been entitled to
hereunder if no such notice of termination had been given. Notwithstanding the
above, (i) if the Trustee is unwilling to act as successor servicer or (ii) if
the Trustee is legally unable so to act, the Trustee shall appoint or petition a
court of competent jurisdiction to appoint, any established housing and home
finance institution, bank or other mortgage loan or home equity loan servicer
having a net worth of not less than $50,000,000 as the successor to the Servicer
hereunder in the assumption of all or any part of the responsibilities, duties
or liabilities of the Servicer hereunder; provided, that the appointment of any
such successor servicer will not result in the qualification, reduction or
withdrawal of the ratings assigned to the Certificates or the ratings that are
in effect by the Rating Agencies as evidenced by a letter to such effect from
the Rating Agencies and that, in the case of a successor servicer appointed by
the Trustee, such successor servicer is reasonably acceptable to the NIMS
Insurer. Pending appointment of a successor to the Servicer hereunder, unless
the Trustee is prohibited by law from so acting, the Trustee shall act in such
capacity as hereinabove provided. In connection with such appointment and
assumption, the successor shall be entitled to receive compensation out of
payments on Mortgage Loans in an amount equal to the compensation which the
Servicer would otherwise have received pursuant to Section 3.18 (or such other
compensation as the Trustee and such successor shall agree, not to exceed the
Servicing Fee). The successor servicer shall be entitled to withdraw from the

                                     -110-
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Collection Account all costs and expenses associated with the transfer of the
servicing to the successor servicer, including costs and expenses of the
Trustee. The appointment of a successor servicer shall not affect any liability
of the predecessor servicer which may have arisen under this Agreement prior to
its termination as Servicer to pay any deductible under an insurance policy
pursuant to Section 3.12 or to indemnify the parties indicated in Section 3.26
pursuant to the terms thereof, nor shall any successor servicer be liable for
any acts or omissions of the predecessor servicer or for any breach by such
servicer of any of its representations or warranties contained herein or in any
related document or agreement. The Trustee and such successor shall take such
action, consistent with this Agreement, as shall be necessary to effectuate any
such succession.

                  (b) Any successor, including the Trustee, to the Servicer as
servicer shall during the term of its service as servicer continue to service
and administer the Mortgage Loans for the benefit of Certificateholders, and
maintain in force a policy or policies of insurance covering errors and
omissions in the performance of its obligations as Servicer hereunder and a
Fidelity Bond in respect of its officers, employees and agents to the same
extent as the Servicer is so required pursuant to Section 3.12.

                  Section 7.03 Waiver of Defaults.

                  The Holders of Certificates entitled to at least 66 2/3% of
the Voting Rights allocated to the Classes of Certificates affected by a
Servicer Event of Termination may, on behalf of all Certificateholders, and with
the consent of the NIMS Insurer, waive any events permitting removal of the
Servicer as servicer pursuant to this Article VII, provided, however, that such
Holders may not waive a default in making a required distribution on a
Certificate without the consent of the Holder of such Certificate and the NIMS
Insurer. Upon any waiver of a past default, such default shall cease to exist
and any Servicer Event of Termination 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. Notice of any such waiver shall be given by
the Trustee to the Rating Agencies.

                  Section 7.04 Notification to Certificateholders.

                  (a) On any termination or appointment of a successor to the
Servicer pursuant to this Article VII or Section 6.04, the Securities
Administrator or the Trustee shall give prompt written notice thereof to the
Certificateholders at their respective addresses appearing in the Certificate
Register, the NIMS Insurer, the Securities Administrator and each Rating Agency.

                  (b) No later than 60 days after the occurrence of any event
which constitutes or which, with notice or a lapse of time or both, would
constitute a Servicer Event of Termination for five Business Days after a
Responsible Officer of the Trustee obtains actual knowledge of the occurrence of
such an event, the Trustee shall transmit by mail to the Securities
Administrator, the NIMS Insurer and all Certificateholders notice of such
occurrence unless such default or Servicer Event of Termination shall have been
waived or cured. Such notice shall be given to the Rating Agencies promptly
after any such occurrence.

                  Section 7.05 Survivability of Servicer Liabilities.

                  Notwithstanding anything herein to the contrary, upon
termination of the Servicer hereunder, any liabilities of the Servicer which
accrued prior to such termination shall survive such termination.

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<PAGE>

                                  ARTICLE VIII

                                   THE TRUSTEE

                  Section 8.01 Duties of Trustee and the Securities
Administrator.

                  The Trustee, prior to the occurrence of a Servicer Event of
Termination of which a Responsible Officer of the Trustee shall have actual
knowledge and after the curing of all Servicer Events of Termination which may
have occurred, and the Securities Administrator, each undertakes to perform such
duties and only such duties as are specifically set forth in this Agreement as
duties of the Trustee and the Securities Administrator, respectively. If a
Servicer Event of Termination has occurred (which has not been cured) of which a
Responsible Officer has actual knowledge, the Trustee shall exercise such of the
rights and powers vested in it by this Agreement, and use the same degree of
care and skill in their exercise, as a prudent person would exercise or use
under the circumstances in the conduct of such person's own affairs.

                  The Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to the Trustee and the Securities Administrator which are specifically required
to be furnished pursuant to any provision of this Agreement, the Trustee and the
Securities Administrator shall examine them to determine whether they conform on
their face to the requirements of this Agreement; provided, however, that
neither the Trustee nor the Securities Administrator shall not be responsible
for the accuracy or content of any resolution, certificate, statement, opinion,
report, document, order or other instrument furnished by the Servicer, the
Seller, the NIMS Insurer or the Depositor hereunder. If any such instrument is
found not to conform in any material respect to the requirements of this
Agreement, the Trustee or the Securities Administrator, as the case may be,
shall notify the Certificateholders of such instrument in the event that the
Trustee or the Securities Administrator, as applicable, after so requesting,
does not receive a satisfactorily corrected instrument.

                  No provision of this Agreement shall be construed to relieve
the Trustee or the Securities Administrator from liability for its own negligent
action, its own negligent failure to act or its own misconduct; provided,
however, that:

                  (i) prior to the occurrence of a Servicer Event of Termination
         of which a Responsible Officer of the Trustee shall have actual
         knowledge, and after the curing of all such Servicer Events of
         Termination which may have occurred, the duties and obligations of the
         Trustee shall be determined solely by the express provisions of this
         Agreement, neither the Trustee nor the Securities Administrator shall
         be liable except for the performance of such duties and obligations as
         are specifically set forth in this Agreement, no implied covenants or
         obligations shall be read into this Agreement against the Trustee or
         the Securities Administrator and, in the absence of bad faith on the
         part of the Trustee or the Securities Administrator, as applicable, the
         Trustee or the Securities Administrator, respectively may conclusively
         rely, as to the truth of the statements and the correctness of the
         opinions expressed therein, upon any certificates or opinions furnished
         to the Trustee or the Securities Administrator and conforming to the
         requirements of this Agreement;

                  (ii) the Trustee shall not be personally liable for an error
         of judgment made in good faith by a Responsible Officer of the Trustee,
         unless it shall be proved that the Trustee was negligent in
         ascertaining or investigating the facts related thereto;

                                     -112-
<PAGE>

                  (iii) the Trustee and the Securities Administrator shall not
         be personally liable with respect to any action taken, suffered or
         omitted to be taken by it in good faith in accordance with the
         direction of the NIMS Insurer or the Majority Certificateholders
         relating to the time, method and place of conducting any proceeding for
         any remedy available to the Trustee or the Securities Administrator or
         exercising or omitting to exercise any trust or power conferred upon
         the Trustee or the Securities Administrator under this Agreement; and

                  (iv) the Trustee shall not be charged with knowledge of any
         failure by the Servicer to comply with the obligations of the Servicer
         referred to in clauses (i) and (ii) of Section 7.01(a) or any Servicer
         Event of Termination unless a Responsible Officer of the Trustee at the
         Corporate Trust Office obtains actual knowledge of such failure or the
         Trustee receives written notice of such failure from the Servicer, the
         NIMS Insurer or the Majority Certificateholders. In the absence of such
         receipt of such notice, the Trustee may conclusively assume that there
         is no Servicer Event of Termination.

                  The Trustee shall not be required to expend or risk its own
funds or otherwise incur financial liability in the performance of any of its
duties hereunder, or in the exercise of any of its rights or powers, if there is
reasonable ground for believing that the repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it, and
none of the provisions contained in this Agreement shall in any event require
the Securities Administrator to perform, or be responsible for the manner of
performance of, any of the obligations of the Servicer under this Agreement,
except during such time, if any, as the Trustee shall be the successor to, and
be vested with the rights, duties, powers and privileges of, the Servicer in
accordance with the terms of this Agreement.

                  The Trustee shall not have any duty (A) to see any recording,
filing, or depositing of this Agreement or any agreement referred to herein or
any financing statement or continuation statement evidencing a security
interest, or to see to the maintenance of any such recording or filing or
depositing or to any rerecording, refiling or redepositing of any thereof, (B)
to see to any insurance or (C) to see to the payment or discharge of any tax,
assessment, or other governmental charge or any lien or encumbrance of any kind
owing with respect to, assessed or levied against, any part of the Trust Fund
other than from funds available in the Distribution Account.

                  The Trustee shall have no duty hereunder with respect to any
complaint, claim, demand, notice or other document it may receive or which may
be alleged to have been delivered to or served upon it by any third party as a
consequence of the assignment of any Mortgage Loan hereunder; provided, however,
that the Trustee shall promptly remit to the Servicer upon receipt of any such
complaint, claim, demand, notice or other document (i) which is delivered to the
Trustee at its Corporate Trust Office; (ii) of which a Responsible Officer has
actual knowledge and (iii) which contains information sufficient to permit the
Trustee to make a determination that the real property to which such document
relates to is a Mortgaged Property.

                  Section 8.02 Certain Matters Affecting the Trustee and the
Securities Administrator.

                  Except as otherwise provided in Section 8.01:

                  (a) the Trustee and Securities Administrator may request and
rely upon, and shall be protected in acting or refraining from acting upon, any
resolution, Officers' Certificate, certificate of auditors or any other
certificate, statement, instrument, opinion, report, notice, request, consent,
order, appraisal, bond or other paper or document reasonably believed by it to
be genuine and to have been signed or presented by the proper party or parties;

                  (b) the Trustee and Securities Administrator may consult with
counsel and any advice or Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken or suffered or
omitted by it hereunder in good faith and in accordance with such advice or
Opinion of Counsel;

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<PAGE>

                  (c) neither the Trustee nor the Securities Administrator shall
be under any obligation to exercise any of the rights or powers vested in it by
this Agreement, or to institute, conduct or defend any litigation hereunder or
in relation hereto, at the request, order or direction of the Certificateholders
or the NIMS Insurer pursuant to the provisions of this Agreement, unless such
Certificateholders or the NIMS Insurer shall have offered to the Trustee or the
Securities Administrator, as the case may be, reasonable security or indemnity
against the costs, expenses and liabilities which may be incurred therein or
thereby; the right of the Trustee or the Securities Administrator, as the case
may be, to perform any discretionary act enumerated in this Agreement shall not
be construed as a duty, and neither the Trustee nor the Securities Administrator
shall be answerable for other than its negligence or willful misconduct in the
performance of any such act;

                  (d) neither the Trustee nor the Securities Administrator shall
be personally liable for any action taken, suffered or omitted by it in good
faith and believed by it to be authorized or within the discretion or rights or
powers conferred upon it by this Agreement;

                  (e) prior to the occurrence of a Servicer Event of Termination
and after the curing of all Servicer Events of Termination which may have
occurred, neither the Trustee nor the Securities Administrator shall be bound to
make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent,
order, approval, bond or other paper or documents, unless requested in writing
to do so by the Majority Certificateholders or the NIMS Insurer; provided,
however, that if the payment within a reasonable time to the Trustee or the
Securities Administrator, as applicable, of the costs, expenses or liabilities
likely to be incurred by it in the making of such investigation is, in the
opinion of the Trustee or the Securities Administrator, as applicable, not
reasonably assured to the Trustee or the Securities Administrator, as the case
may be, by the security afforded to it by the terms of this Agreement, the
Trustee or the Securities Administrator, as the case may be, may require
reasonable indemnity against such cost, expense or liability as a condition to
such proceeding. The reasonable expense of every such examination shall be paid
by the Servicer or, if paid by the Trustee or the Securities Administrator,
shall be reimbursed by the Servicer upon demand. Nothing in this clause (e)
shall derogate from the obligation of the Servicer to observe any applicable law
prohibiting disclosure of information regarding the Mortgagors;

                  (f) the Trustee shall not be accountable, have any liability
or make any representation as to any acts or omissions hereunder of the Servicer
until such time as the Trustee may be required to act as Servicer pursuant to
Section 7.02;

                  (g) the Trustee and the Securities Administrator may execute
any of the trusts or powers hereunder or perform any duties hereunder either
directly or by or through agents or attorneys or a custodian and neither the
Trustee nor the Securities Administrator shall be responsible for any misconduct
or negligence on the part of any such agent, attorney or custodian appointed by
it with due care; and

                  (h) the right of the Trustee or the Securities Administrator
to perform any discretionary act enumerated in this Agreement shall not be
construed as a duty, and neither the Trustee nor the Securities Administrator
shall be answerable for other than its negligence or willful misconduct in the
performance of such act.

                                     -114-
<PAGE>

                  Section 8.03 Neither the Trustee nor the Securities
Administrator Liable for Certificates or Mortgage Loans.

                  The recitals contained herein and in the Certificates (other
than the authentication of the Securities Administrator on the Certificates)
shall be taken as the statements of the Depositor, and neither the Trustee nor
the Securities Administrator assumes any responsibility for the correctness of
the same. Neither the Trustee nor the Securities Administrator makes any
representations as to the validity or sufficiency of this Agreement or of the
Certificates (other than the signature and authentication of the Securities
Administrator on the Certificates) or of any Mortgage Loan or Related Document.
Neither the Trustee nor the Securities Administrator shall be accountable for
the use or application by the Servicer, or for the use or application of any
funds paid to the Servicer in respect of the Mortgage Loans or deposited in or
withdrawn from the Collection Accounts by the Servicer. Neither the Trustee nor
the Securities Administrator shall at any time have any responsibility or
liability for or with respect to the legality, validity and enforceability of
any Mortgage or any Mortgage Loan, or the perfection and priority of any
Mortgage or the maintenance of any such perfection and priority, or for or with
respect to the sufficiency of the Trust or its ability to generate the payments
to be distributed to Certificateholders under this Agreement, including, without
limitation: the existence, condition and ownership of any Mortgaged Property;
the existence and enforceability of any hazard insurance thereon (other than if
the Trustee shall assume the duties of the Servicer pursuant to Section 7.02);
the validity of the assignment of any Mortgage Loan to the Trustee or of any
intervening assignment; the completeness of any Mortgage Loan; the performance
or enforcement of any Mortgage Loan (other than if the Trustee shall assume the
duties of the Servicer pursuant to Section 7.02); the compliance by the
Depositor or the Servicer with any warranty or representation made under this
Agreement or in any related document or the accuracy of any such warranty or
representation prior to the Trustee's or Securities Administrator's receipt of
written notice or other discovery of any non-compliance therewith or any breach
thereof; any investment of monies by or at the direction of the Servicer or any
loss resulting therefrom, it being understood that the Trustee and the
Securities Administrator shall remain responsible for any Trust property that it
may hold in its individual capacity; the acts or omissions of any of the
Servicer (other than if the Trustee shall assume the duties of the Servicer
pursuant to Section 7.02), or any Mortgagor; any action of the Servicer (other
than if the Trustee shall assume the duties of the Servicer pursuant to Section
7.02), taken in the name of the Trustee or the Securities Administrator; the
failure of the Servicer to act or perform any duties required of it as agent of
the Trustee hereunder; or any action by the Trustee or the Securities
Administrator taken at the instruction of the Servicer (other than if the
Trustee shall assume the duties of the Servicer pursuant to Section 7.02);
provided, however, that the foregoing shall not relieve the Trustee and the
Securities Administrator of their obligation to perform their respective duties
under this Agreement. Neither the Trustee nor the Securities Administrator shall
have any responsibility for filing any financing or continuation statement in
any public office at any time or to otherwise perfect or maintain the perfection
of any security interest or lien granted to them hereunder.

                  Section 8.04 Trustee and Securities Administrator May Own
Certificates.

                  The Trustee and the Securities Administrator in their
individual or any other capacity may become the owner or pledgee of Certificates
with the same rights as they would have if it were not Trustee or Securities
Administrator, respectively, and may transact any banking and trust business
with the Servicer, the Depositor or their respective Affiliates.

                                     -115-
<PAGE>

                  Section 8.05 Trustee's and Securities Administrator's Fees and
Expenses.

                  The Securities Administrator as compensation for all services
rendered hereunder shall be entitled to the investment income on funds on
deposit in the Distribution Account as set forth in Section 3.25. The Trustee as
compensation for all services rendered hereunder shall be entitled to a fee in
an amount agreed upon by the Securities Administrator and the Trustee, payable
by the Securities Administrator out of its own funds. The Trust shall reimburse
the Trustee and the Securities Administrator for all reasonable expenses and
disbursements incurred or made by the Trustee, the Securities Administrator or
the Custodian and for any advances made by the Trustee as successor servicer, in
accordance with any of the provisions of this Agreement (including the
reasonable compensation and the expenses and disbursements of its counsel and of
all persons not regularly in its employ) except any such expense, disbursement
or advance as may arise from its negligence or bad faith or which is the
responsibility of Certificateholders or the Trustee hereunder. In addition, the
Trustee and the Securities Administrator and their respective officers,
directors, employees and agents shall be indemnified by the Trust from, and held
harmless against, any and all losses, liabilities, damages, claims or expenses
incurred in connection with any legal action relating to this Agreement or the
Certificates, other than (i) any loss, liability or expense incurred by reason
of willful misfeasance, bad faith or negligence of the Trustee or the Securities
Administrator, as the case may be, in the performance of its respective duties
hereunder or by reason of its own reckless disregard of obligations and duties
hereunder and (ii) to the extent such indemnification is required to be provided
by the Servicer pursuant to Section 3.26. Further, the Custodian and their
officers, directors, employees and agents shall be indemnified by the Trust
from, and held harmless against, any and all losses, liabilities, damages,
claims or expenses arising out of or in connection with any claim or legal
action relating to the acceptance or administration of their respective
obligations and duties under this Agreement or the Custodial Agreement, other
than any loss, liability or expense incurred by reason of willful misfeasance,
bad faith or negligence of the Custodian in the performance of its duties
hereunder or under the Custodial Agreement or by reason of its reckless
disregard of obligations and duties hereunder or under the Custodial Agreement.
Anything in this Agreement to the contrary notwithstanding, in no event shall
the Trustee, the Securities Administrator or the Custodian be liable for
special, indirect or consequential loss or damage of any kind whatsoever
(including, but not limited to, lost profits) even if the Trustee, the
Securities Administrator or the Custodian has been advised of the likelihood of
such loss or damage and regardless of the form of action. This Section shall
survive termination of this Agreement or the resignation or removal of the
Trustee, the Securities Administrator or the Custodian, as applicable,
hereunder.

                  Section 8.06 Eligibility Requirements for Trustee and the
Securities Administrator.

                  (a) The Trustee and the Securities Administrator hereunder
shall at all times be an entity duly organized and validly existing under the
laws of the United States of America or any state thereof, authorized under such
laws to exercise corporate trust powers, having a combined capital and surplus
of at least $50,000,000 and a minimum long-term debt rating of "BBB" by Fitch
and S&P and subject to supervision or examination by federal or state authority.
If such entity publishes reports of condition at least annually, pursuant to law
or to the requirements of the aforesaid supervising or examining authority, then
for the purposes of this Section 8.06, the combined capital and surplus of such
entity shall be deemed to be its combined capital and surplus as set forth in
its most recent report of condition so published. The principal office of the
Trustee and the Securities Administrator (other than the initial Trustee or
Securities Administrator) shall be in a state with respect to which an Opinion
of Counsel has been delivered to such Trustee or Securities Administrator at the
time such Trustee or Securities Administrator is appointed Trustee or Securities
Administrator to the effect that the Trust will not be a taxable entity under
the laws of such state. In case at any time the Trustee or Securities
Administrator shall cease to be eligible in accordance with the provisions of
this Section 8.06, the Trustee or Securities Administrator, as the case may be,
shall resign immediately in the manner and with the effect specified in Section
8.07.

                                     -116-
<PAGE>

                  (b) The Securities Administrator (i) may not be the
Originator, the Servicer, the Depositor or an Affiliate of the Depositor unless
the Securities Administrator is an institutional trust department of a national
banking association or other entity, (ii) must be authorized to exercise
corporate trust powers under the laws of its jurisdiction of organization, and
(iii) must be rated at least "A/F1" by Fitch or the equivalent rating by S&P and
Moody's. If the Securities Administrator becomes ineligible under this Section
8.06(b), the Depositor shall appoint a successor. If no successor Securities
Administrator shall have been appointed and shall have accepted appointment
within 60 days after the Securities Administrator ceases to be the Securities
Administrator pursuant to this Section 8.06(b), then the Trustee shall become
the successor Securities Administrator or petition a court of competent
jurisdiction or the appointment of a successor. Until such appointment and
acceptance is effective, the Securities Administrator shall continue to perform
all of its duties and obligations under this Agreement. The Trustee shall notify
the Rating Agencies of any change of Securities Administrator.

                  Section 8.07 Resignation or Removal of Trustee and the
Securities Administrator.

                  The Trustee or the Securities Administrator may at any time
resign and be discharged from the trusts hereby created by giving written notice
thereof to the Depositor, the Servicer, the NIMS Insurer and each Rating Agency.
Upon receiving such notice of resignation, the Depositor shall promptly appoint
a successor Trustee or the Securities Administrator, as applicable, reasonably
acceptable to the NIMS Insurer by written instrument, in duplicate, one copy of
which instrument shall be delivered to the resigning Trustee or the Securities
Administrator, as applicable, and one copy to the successor Trustee. If no
successor Trustee or the Securities Administrator, as applicable, shall have
been so appointed and having accepted appointment within 30 days after the
giving of such notice of resignation, the resigning Trustee or the Securities
Administrator, as applicable, may petition any court of competent jurisdiction
for the appointment of a successor Trustee or the Securities Administrator.

                  If at any time the Trustee or the Securities Administrator
shall cease to be eligible in accordance with the provisions of Section 8.06 and
shall fail to resign after written request therefor by the Depositor or the NIMS
Insurer, or if at any time the Trustee or the Securities Administrator shall be
legally unable to act, or shall be adjudged a bankrupt or insolvent, or a
receiver of the Trustee or the Securities Administrator or of their respective
property shall be appointed, or any public officer shall take charge or control
of the Trustee or the Securities Administrator or of their respective property
or affairs for the purpose of rehabilitation, conservation or liquidation, then
the Depositor or the NIMS Insurer may remove the Trustee or the Securities
Administrator, as the case may be. If the Depositor or the NIMS Insurer removes
the Trustee or the Securities Administrator under the authority of the
immediately preceding sentence, the Depositor or the NIMS Insurer, as the case
may be, shall promptly appoint a successor Trustee or Securities Administrator
(reasonably acceptable to the NIMS Insurer if appointed by the Depositor), as
applicable, by written instrument, in duplicate, one copy of which instrument
shall be delivered to the Trustee or Securities Administrator so removed and one
copy to the successor Trustee.

                  The Majority Certificateholders or the NIMS Insurer may at any
time remove the Trustee or the Securities Administrator by written instrument or
instruments delivered to the Servicer, the Depositor, the Securities
Administrator, the NIMS Insurer and the Trustee; the Depositor shall thereupon
use its best efforts to appoint a successor Trustee or Securities Administrator,
as the case may be, reasonably acceptable to the NIMS Insurer in accordance with
this Section.

                  Any resignation or removal of the Trustee or the Securities
Administrator and appointment of a successor Trustee or Securities
Administrator, as applicable, pursuant to any of the provisions of this Section
8.07 shall not become effective until acceptance of appointment by the successor
Trustee or Securities Administrator, as the case may be, as provided in Section
8.08.

                                     -117-
<PAGE>

                  Section 8.08 Successor Trustee or Securities Administrator.

                  Any successor Trustee or Securities Administrator appointed as
provided in Section 8.07 shall execute, acknowledge and deliver to the
Depositor, the NIMS Insurer, the Rating Agencies, the Servicer and to its
predecessor Trustee or Securities Administrator, as the case may be, an
instrument accepting such appointment hereunder, and thereupon the resignation
or removal of the predecessor Trustee or Securities Administrator shall become
effective, and such successor Trustee or Securities Administrator, without any
further act, deed or conveyance, shall become fully vested with all the rights,
powers, duties and obligations of its predecessor hereunder, with like effect as
if originally named as Trustee or Securities Administrator, as the case may be.
The Depositor, the Servicer and the predecessor Trustee or Securities
Administrator shall execute and deliver such instruments and do such other
things as may reasonably be required for fully and certainly vesting and
confirming in the successor Trustee or Securities Administrator, as the case may
be, all such rights, powers, duties and obligations.

                  No successor Trustee or Securities Administrator shall accept
appointment as provided in this Section 8.08 unless at the time of such
acceptance such successor Trustee or Securities Administrator, as the case may
be, shall be eligible under the provisions of Section 8.06 and the appointment
of such successor Trustee or Securities Administrator, as applicable, shall not
result in a downgrading of the Regular Certificates by either Rating Agency, as
evidenced by a letter from each Rating Agency.

                  Upon acceptance of appointment by a successor Trustee or
Securities Administrator, as applicable, as provided in this Section 8.08, the
successor Trustee shall mail notice of the appointment of a successor Trustee or
Securities Administrator, as the case may be, hereunder to all Holders of
Certificates at their addresses as shown in the Certificate Register and to each
Rating Agency.

                  Section 8.09 Merger or Consolidation of Trustee or Securities
Administrator.

                  Any entity into which the Trustee or Securities Administrator,
as applicable, may be merged or converted or with which it may be consolidated,
or any entity resulting from any merger, conversion or consolidation to which
the Trustee or Securities Administrator, as applicable, shall be a party, or any
entity succeeding to the business of the Trustee or the Securities
Administrator, as the case may be, shall be the successor of the hereunder,
provided such entity shall be eligible under the provisions of Section 8.06 and
8.08, without the execution or filing of any paper or any further act on the
part of any of the parties hereto, anything herein to the contrary
notwithstanding.

                  Section 8.10 Appointment of Co-Trustee or Separate Trustee.

                  Notwithstanding any other provisions of this Agreement, at any
time, for the purpose of meeting any legal requirements of any jurisdiction in
which any part of the Trust or any Mortgaged Property may at the time be
located, the Depositor and the Trustee acting jointly shall have the power and
shall execute and deliver all instruments to appoint one or more Persons
approved by the Trustee and the NIMS Insurer to act as co-trustee or
co-trustees, jointly with the Trustee, or separate trustee or separate trustees,
of all or any part of the Trust, and to vest in such Person or Persons, in such
capacity and for the benefit of the Certificateholders, such title to the Trust,
or any part thereof, and, subject to the other provisions of this Section 8.10,
such powers, duties, obligations, rights and trusts as the Servicer and the
Trustee may consider necessary or desirable. Any such co-trustee or separate
trustee shall be subject to the written approval of the Servicer and the NIMS
Insurer. If the Servicer and the NIMS Insurer shall not have joined in such
appointment within 15 days after the receipt by it of a request so to do, or in
the case a Servicer Event of Termination shall have occurred and be continuing,
the Trustee alone shall have the power to make such appointment. No co-trustee
or separate trustee hereunder shall be required to meet the terms of eligibility
as a successor Trustee under Section 8.06, and no notice to Certificateholders
of the appointment of any co-trustee or separate trustee shall be required under
Section 8.08.

                                     -118-
<PAGE>

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

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

                  (ii) no trustee hereunder shall be held personally liable by
         reason of any act or omission of any other trustee hereunder; and

                  (iii) the Servicer and the Trustee, acting jointly may at any
         time accept the resignation of or remove any separate trustee or
         co-trustee except that following the occurrence of a Servicer Event of
         Termination, the Trustee acting alone may accept the resignation or
         remove any separate trustee or co-trustee.

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

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

                  Section 8.11 Limitation of Liability.

                  The Certificates are executed by the Securities Administrator,
not in its individual capacity but solely as Securities Administrator of the
Trust, in the exercise of the powers and authority conferred and vested in it by
this Agreement. Each of the undertakings and agreements made on the part of the
Securities Administrator in the Certificates is made and intended not as a
personal undertaking or agreement by the Securities Administrator but is made
and intended for the purpose of binding only the Trust.

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                  Section 8.12 Trustee or Securities Administrator May Enforce
Claims Without Possession of Certificates.

                  (a) All rights of action and claims under this Agreement or
         the Certificates may be prosecuted and enforced by the Trustee or the
         Securities Administrator without the possession of any of the
         Certificates or the production thereof in any proceeding relating
         thereto, and such proceeding instituted by the Trustee or Securities
         Administrator shall be brought in its own name or in its capacity as
         Trustee or Securities Administrator for the benefit of all Holders of
         such Certificates, subject to the provisions of this Agreement. Any
         recovery of judgment shall, after provision for the payment of the
         reasonable compensation, expenses, disbursement and advances of the
         Trustee or Securities Administrator, as the case may be, or their
         agents and counsel, be for the ratable benefit of the
         Certificateholders in respect of which such judgment has been
         recovered.

                  (b) The Trustee shall afford the Depositor, the Servicer, the
         Securities Administrator, the NIMS Insurer and each Certificateholder
         upon reasonable notice during normal business hours, access to all
         records maintained by the Trustee in respect of its duties hereunder
         and access to officers of the Trustee responsible for performing such
         duties. The Trustee shall cooperate fully with the Servicer, the NIMS
         Insurer, the Securities Administrator, the Depositor and such
         Certificateholder and shall make available to the Servicer, the NIMS
         Insurer, the Depositor and such Certificateholder for review and
         copying at the expense of the party requesting such copies, such books,
         documents or records as may be requested with respect to the Trustee's
         duties hereunder. The Depositor, the Servicer, the Securities
         Administrator, the NIMS Insurer and the Certificateholders shall not
         have any responsibility or liability for any action or failure to act
         by the Trustee and are not obligated to supervise the performance of
         the Trustee under this Agreement or otherwise.

                  (c) The Securities Administrator shall afford the Depositor,
         the Trustee, the Servicer, the NIMS Insurer and each Certificateholder
         upon reasonable notice during normal business hours, access to all
         records maintained by the Securities Administrator in respect of its
         duties hereunder and access to officers of the Securities Administrator
         responsible for performing such duties. The Securities Administrator
         shall cooperate fully with the Servicer, the Trustee, the NIMS Insurer,
         the Depositor and such Certificateholder and shall make available to
         the Servicer, the Trustee, the NIMS Insurer, the Depositor and such
         Certificateholder for review and copying at the expense of the party
         requesting such copies, such books, documents or records as may be
         requested with respect to the Securities Administrator's duties
         hereunder. The Depositor, the Trustee, the Servicer, the NIMS Insurer
         and the Certificateholders shall not have any responsibility or
         liability for any action or failure to act by the Securities
         Administrator and are not obligated to supervise the performance of the
         Securities Administrator under this Agreement or otherwise.

                  Section 8.13 Suits for Enforcement.

                  In case a Servicer Event of Termination or other default by
the Servicer hereunder shall occur and be continuing, the Trustee may proceed to
protect and enforce its rights and the rights of the Certificateholders under
this Agreement by a suit, action or proceeding in equity or at law or otherwise,
whether for the specific performance of any covenant or agreement contained in
this Agreement or in aid of the execution of any power granted in this Agreement
or for the enforcement of any other legal, equitable or other remedy, as the
Trustee, being advised by counsel, and subject to the foregoing, shall deem most
effectual to protect and enforce any of the rights of the Trustee and the
Certificateholders.

                                     -120-
<PAGE>

                  Section 8.14 Waiver of Bond Requirement.

                  The Trustee shall be relieved of, and each Certificateholder
hereby waives, any requirement of any jurisdiction in which the Trust, or any
part thereof, may be located that the Trustee post a bond or other surety with
any court, agency or body whatsoever.

                  Section 8.15 Waiver of Inventory, Accounting and Appraisal
Requirement.

                  The Trustee shall be relieved of, and each Certificateholder
hereby waives, any requirement of any jurisdiction in which the Trust, or any
part thereof, may be located that the Trustee file any inventory, accounting or
appraisal of the Trust with any court, agency or body at any time or in any
manner whatsoever.

                  Section 8.16 Appointment of Custodian.

                  The Custodian is hereby appointed to act in it custodial
capacity and the Trustee shall have no responsibility or liability for any act
or omission of Wells Fargo Bank, N.A., as a Custodian. The Trustee may at any
time on or after the Closing Date, with the consent of the Depositor, the
Securities Administrator and the Servicer, appoint one or more Custodians to
hold all or a portion of the Mortgage Files as agent for the Trustee, by
entering into one or more custodial agreements in a form acceptable to the
Depositor, the Securities Administrator and the Servicer. Subject to this
Article VIII, the Trustee hereby agrees to comply with the terms of the
Custodial Agreement and to enforce the terms and provisions thereof against the
Custodian for the benefit of the Certificateholders. The Custodian shall be a
depository institution subject to supervision by a federal or state authority,
shall have a combined capital and surplus of at least $10,000,000 and shall be
qualified to do business in the jurisdiction in which it holds any Mortgage
File.

                                   ARTICLE IX

                     REMIC AND GRANTOR TRUST ADMINISTRATION

                  Section 9.01 REMIC Administration.

                  (a) The Securities Administrator shall make or cause to be
made REMIC elections for each of REMIC 1 and REMIC 2 as set forth in the
Preliminary Statement on Forms 1066 or other appropriate federal tax or
information return for the taxable year ending on the last day of the calendar
year in which the Certificates are issued. In addition, the Securities
Administrator shall request a taxpayer identification number on IRS Form SS-4
for each REMIC and file IRS Form 8811 for each such REMIC within 30 days of the
Closing Date. The regular interests and residual interest in each REMIC shall be
as designated in the Preliminary Statement.

                  (b) The Closing Date is hereby designated as the "Startup Day"
of each REMIC within the meaning of section 860G(a)(9) of the Code.

                                     -121-
<PAGE>

                  (c) The Securities Administrator shall pay any and all tax
related expenses (not including taxes) of each REMIC, including but not limited
to any professional fees or expenses related to audits or any administrative or
judicial proceedings with respect to such REMIC that involve the Internal
Revenue Service or state tax authorities, but only to the extent that (i) such
expenses are ordinary or routine expenses, including expenses of a routine audit
but not expenses of litigation (except as described in (ii)); or (ii) such
expenses or liabilities (including taxes and penalties) are attributable to the
negligence or willful misconduct of the Securities Administrator in fulfilling
its duties hereunder. The Securities Administrator shall be entitled to
reimbursement of expenses to the extent provided in clause (i) above from the
Trust.

                  (d) The Securities Administrator shall prepare or cause to be
prepared, sign and file or cause to be filed, each REMIC's federal and state tax
and information returns as such REMIC's direct representative. The expenses of
preparing and filing such returns shall be borne by the Securities
Administrator.

                  (e) The Holder of the Class R Certificate shall be the "tax
matters person" as defined in the REMIC Provisions (the "Tax Matters Person")
with respect to each REMIC, and the Securities Administrator is irrevocably
designated as and shall act as attorney-in-fact and agent for such Tax Matters
Person for each REMIC. The Securities Administrator, as agent for the Tax
Matters Person, shall perform, on behalf of each REMIC, all reporting and other
tax compliance duties that are the responsibility of such REMIC under the Code,
the REMIC Provisions, or other compliance guidance issued by the Internal
Revenue Service or any state or local taxing authority. Among its other duties,
if required by the Code, the REMIC Provisions, or other such guidance, the
Securities Administrator, as agent for the Tax Matters Person, shall provide (i)
to the Treasury or other governmental authority such information as is necessary
for the application of any tax relating to the transfer of the Class R
Certificate to any disqualified person or organization and (ii) to the
Certificateholders such information or reports as are required by the Code or
REMIC Provisions.

                  (f) The Trustee, Securities Administrator, the Servicer, and
the Holders of Certificates shall take any action or cause any REMIC formed
under this Agreement to take any action necessary to create or maintain the
status of such REMIC as a REMIC under the REMIC Provisions and shall assist each
other as necessary to create or maintain such status. None of the Trustee,
Securities Administrator, the Servicer or the Holder of the Class R Certificate
shall take any action or cause any REMIC formed under this Agreement 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
or cause the loss of the status of such REMIC as a REMIC or (ii) result in the
imposition of any tax upon such REMIC (including but not limited to the tax on
prohibited transactions as defined in Code Section 860F(a)(2) and the tax on
prohibited contributions set forth on Section 860G(d) of the Code) (either such
event, an "Adverse REMIC Event") unless the Trustee, Securities Administrator,
the NIMS Insurer and the Servicer have 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 status or result in the imposition of
such a tax. In addition, prior to taking any action with respect to any REMIC
formed under this Agreement or the assets therein, or causing such REMIC to take
any action, which is not expressly permitted under the terms of this Agreement,
any Holder of the Class R Certificate will consult with the Trustee, Securities
Administrator, the NIMS Insurer and the Servicer, or their respective designees,
in writing, with respect to whether such action could cause an Adverse REMIC
Event to occur with respect to such REMIC, and no such Person shall take any
such action or cause such REMIC to take any such action as to which the Trustee,
Securities Administrator, the NIMS Insurer or the Servicer has advised it in
writing that an Adverse REMIC Event could occur.

                                     -122-
<PAGE>

                  (g) The Holder of the Class R Certificate shall pay when due
any and all taxes imposed on any REMIC formed under this Agreement by federal or
state governmental authorities, but only from amounts, if any, distributable
thereon. To the extent that such REMIC taxes are not paid by the Class R
Certificateholder, the Securities Administrator shall pay any remaining REMIC
taxes out of future amounts otherwise distributable to the Holder of the Class R
Certificate or, if no such amounts are available, out of other amounts held in
the Distribution Account, and shall reduce amounts otherwise payable to Holders
of the Certificates, as the case may be.

                  (h) The Securities Administrator, shall, for federal income
tax purposes, maintain or cause to be maintained books and records with respect
to each REMIC formed under this Agreement on a calendar year and on an accrual
basis.

                  (i) No additional contributions of assets shall be made to any
REMIC, except as expressly provided in this Agreement with respect to Eligible
Substitute Mortgage Loans.

                  (j) None of the Trustee, Securities Administrator or the
Servicer shall enter into any arrangement by which any REMIC will receive a fee
or other compensation for services.

                  (k) The Securities Administrator shall treat (i) the rights of
the Class A, Class M and Class B Certificates to receive Cap Carryover Amounts
as a right in interest rate cap contracts written by the Class CE
Certificateholders in favor of the Holders of the Class A, Class M and Class B
Certificates and (ii) the rights of the Class CE Certificates under the Class
A-1 Yield Maintenance Agreement, Class A-2A, Class A-2B and Class A-2C Yield
Maintenance Agreement and Class M and Class B Yield Maintenance Agreement in
accordance with the respective terms thereof and shall assign such rights for
federal tax return and information reporting a value of zero. The Securities
Administrator shall account for such as property held separate and apart from
the regular interests it holds in each of the REMICs created hereunder. The
provisions of this paragraph are intended to satisfy the requirements of
Treasury Regulations Section 1.860G-2(i) for the treatment of property rights
coupled with regular interests to be separately respected and shall be
interpreted consistent with such regulation. On each Distribution Date, to the
extent the Class A, Class M and Class B Certificates receive interest in excess
of their Certificate Interest Rate, such interest will be treated as distributed
to the Class CE Certificates, together with any amounts deposited in the Class
A-1 Reserve Account in respect of the Class A-1 Yield Maintenance Agreement, the
Class A-2A, Class A-2B and Class A-2C Reserve Account in respect of the Class
A-2A, Class A-2B and Class A-2C Yield Maintenance Agreement and the Class M and
Class B Reserve Account in respect of the Class M and Class B Yield Maintenance
Agreement, and then paid to the respective Class A, Class M and Class B
Certificates pursuant to the related interest rate cap agreement.

                  Section 9.02 Prohibited Transactions and Activities.

                  None of the Depositor, the Servicer, Securities Administrator
or the Trustee shall sell, dispose of, or substitute for any of the Mortgage
Loans, except in a disposition pursuant to (i) the foreclosure of a Mortgage
Loan, (ii) the bankruptcy of the Trust Fund, (iii) the termination of any REMIC
pursuant to Article X of this Agreement, (iv) a substitution pursuant to Article
II of this Agreement, (v) a repurchase of Mortgage Loans pursuant to Article II
of this Agreement or (vi) an optional purchase by the Servicer pursuant to
Section 3.16 of this Agreement, nor acquire any assets for any REMIC
constituting part of the Trust Fund, nor sell or dispose of any investments in
the Distribution Account for gain, nor accept any contributions to any REMIC
constituting part of the Trust Fund after the Closing Date, unless such party
and the NIMS Insurer has received an Opinion of Counsel (at the expense of the
party causing such sale, disposition, or substitution) that such disposition,
acquisition, substitution, or acceptance will not (a) affect adversely the
status of such REMIC as a REMIC or of the interests therein other than the Class
R Certificate as the regular interests therein, (b) affect the distribution of
interest or principal on the Certificates, (c) result in the encumbrance of the
assets transferred or assigned to the Trust Fund (except pursuant to the
provisions of this Agreement) or (d) cause such REMIC to be subject to a tax on
prohibited transactions or prohibited contributions pursuant to the REMIC
Provisions.

                                     -123-
<PAGE>

                  Section 9.03 Indemnification with Respect to Certain Taxes and
Loss of REMIC Status.

                  In the event that any REMIC formed hereunder fails to qualify
as a REMIC, loses its status as a REMIC, or incurs federal, state or local taxes
as a result of a prohibited transaction or prohibited contribution under the
REMIC Provisions due to the negligent performance by (i) the Servicer of its
duties and obligations set forth herein or is subject to any state or local
taxes based on the location of the Servicer, the Servicer shall indemnify the
Holder of the Class R Certificate against any and all losses, claims, damages,
liabilities or expenses ("Losses") resulting from such negligence; provided,
however, that the Servicer shall not be liable for any such Losses attributable
to the action or inaction of the Trustee, the Securities Administrator, the
Depositor or the Holder of the Class R Certificate, as applicable, nor for any
such Losses resulting from misinformation provided by the Holder of the Class R
Certificate on which the Servicer has relied or (ii) the Securities
Administrator of its duties and obligations set forth herein, the Securities
Administrator shall indemnify the Holder of the Class R Certificate against any
and all Losses resulting from such negligence; provided, however, that the
Securities Administrator shall not be liable for any such Losses attributable to
the action or inaction of the the Servicer, the Depositor or the Holder of the
Class R Certificate, as applicable, nor for any such Losses resulting from
misinformation provided by the Holder of the Class R Certificate on which the
Securities Administrator has relied. The foregoing shall not be deemed to limit
or restrict the rights and remedies of the Holder of the Class R Certificate now
or hereafter existing at law or in equity. Notwithstanding the foregoing,
however, in no event shall the Servicer or the Securities Administrator have any
liability (1) for any action or omission that is taken in accordance with and in
compliance with the express terms of, or which is expressly permitted by the
terms of, this Agreement, (2) for any Losses other than arising out of a
negligent performance by the Servicer or the Securities Administrator of its
duties and obligations set forth herein, and (3) for any special or
consequential damages to Certificateholders (in addition to payment of principal
and interest on the Certificates).

                  Section 9.04 REO Property.

                  (a) Subject to compliance with applicable laws and regulations
as shall at any time be in force, and notwithstanding any other provision of
this Agreement, the Servicer, acting on behalf of the Trust hereunder, shall not
rent, lease, or otherwise earn income on behalf of any REMIC with respect to any
REO Property which might cause such REO Property to fail to qualify as
"foreclosure" property within the meaning of section 860G(a)(8) of the Code or
result in the receipt by any REMIC of any "income from non-permitted assets"
within the meaning of section 860F(a)(2) of the Code or any "net income from
foreclosure property" which is subject to tax under the REMIC Provisions unless
the Servicer has advised, or has caused the applicable Servicer to advise, the
Securities Administrator in writing to the effect that, under the REMIC
Provisions, such action would not adversely affect the status of any REMIC as a
REMIC and any income generated for such REMIC by the REO Property would not
result in the imposition of a tax upon such REMIC.

                                     -124-
<PAGE>

                  (b) The Servicer shall make reasonable efforts to sell any REO
Property for its fair market value. In any event, however, the Servicer shall
dispose of any REO Property before the close of the third calendar year
beginning after the year of its acquisition by the Trust Fund unless the
Servicer has received a grant of extension from the Internal Revenue Service to
the effect that, under the REMIC Provisions and any relevant proposed
legislation and under applicable state law, any REMIC constituting part of the
Trust Fund may hold REO Property for a longer period without adversely affecting
its REMIC status or causing the imposition of a Federal or state tax upon any
REMIC constituting part of the Trust Fund. If the Servicer has received such an
extension, then the Servicer shall continue to attempt to sell the REO Property
for its fair market value as determined in good faith by the Servicer for such
longer period as such extension permits (the "Extended Period"). If the Servicer
has not received such an extension and the Servicer is unable to sell the REO
Property within 33 months after its acquisition by the Trust Fund or if the
Servicer has received such an extension, and the Servicer is unable to sell the
REO Property within the period ending three months before the close of the
Extended Period, the Servicer shall, before the end of the applicable period,
(i) purchase such REO Property at a price equal to the REO Property's fair
market value as determined in good faith by the Servicer or (ii) auction the REO
Property to the highest bidder (which may be the Servicer) in an auction
reasonably designed to produce a fair price prior to the expiration of the
applicable period.

                  Section 9.05 Grantor Trust Administration.

                  The parties intend that the portions of the Trust Fund
consisting of the right of the Class P Certificates to receive Servicer
Prepayment Charge Payment Amounts, the right of the Class A, Class M and Class B
Certificates to receive Cap Carryover Amounts, the Reserve Accounts and the
right of the Class CE Certificates to receive Yield Maintenance Agreement
Payments subject to the obligation of the Class CE Certificates to pay Cap
Carryover Amounts, shall be treated as a "grantor trust" under the Code, and the
provisions hereof shall be interpreted consistently with this intention. In
furtherance of such intention, the Securities Administrator shall furnish or
cause to be furnished (i) to the Holders of the Class A, Class M and Class B
Certificates, (ii) to the Holders of the Class P Certificates and (iii) to the
Holder of the Class CE Certificates and shall file or cause to be filed with the
Internal Revenue Service together with Form 1041 or such other form as may be
applicable, their allocable shares of income and expenses with respect to the
property held by the Grantor Trust, at the time or times and in the manner
required by the Code.

                                   ARTICLE X

                                   TERMINATION

                  Section 10.01 Termination.

                  (a) The respective obligations and responsibilities of the
Servicer, the Depositor, the Securities Administrator, the Trustee and the
Certificate Registrar created hereby (other than the obligation of the
Securities Administrator to make certain payments to Certificateholders after
the final Distribution Date and the obligation of the Servicer to send certain
notices as hereinafter set forth) shall terminate upon notice to the Securities
Administrator upon the earliest of (i) the Distribution Date on which the
Certificate Principal Balance of each Class of Certificates has been reduced to
zero, (ii) the final payment or other liquidation of the last Mortgage Loan in
the Trust, and (iii) the optional purchase by the NIMS Insurer, if there is a
NIMS Insurer, or if there is no NIMS Insurer, the Majority Class CE
Certificateholders (or if such holder is the Seller, or an affiliate of the
Seller, the Servicer of the Mortgage Loans) as described below. Notwithstanding
the foregoing, in no event shall the trust created hereby continue beyond the
expiration of 21 years from the death of the last survivor of the descendants of
Joseph P. Kennedy, the late ambassador of the United States to the Court of St.
James, living on the date hereof.

                                     -125-
<PAGE>

                  The NIMS Insurer, if there is a NIMS Insurer, or if there is
no NIMS Insurer, the Majority Class CE Certificateholders (and, if such holder
is the Seller or an affiliate of the Seller, the Servicer of the Mortgage Loans)
may, at its option, terminate the Trust Fund and retire the Certificates on the
next succeeding Distribution Date upon which the aggregate current Pool Balance
is less than 10% of the Cut-off Date Aggregate Principal Balance by purchasing
all of the outstanding (i) Mortgage Loans in the Trust Fund at a price equal to
the sum of the outstanding Principal Balance of the Mortgage Loans and except to
the extent previously advanced by the Servicer, accrued and unpaid interest
thereon at the weighted average of the Mortgage Interest Rates through the end
of the Collection Period preceding the final Distribution Date plus unreimbursed
Servicing Advances, Advances and any unpaid Servicing Fees allocable to such
Mortgage Loans and (ii) REO Properties in the Trust Fund at a price equal to
their fair market value as determined in good faith by the Servicer (the
"Termination Price"). If the NIMS Insurer or the Majority Class CE
Certificateholders (or, if the Majority Class CE Certificateholder is the Seller
or an affiliate of the Seller, the Servicer) is subject to regulation by the
Office of the Comptroller of the Currency, the FDIC, the Federal Reserve or the
Office of Thrift Supervision, however, the option may not be exercised unless
the aggregate fair market value of the Mortgage Loans and REO Properties is
greater than or equal to the Termination Price. Notwithstanding the foregoing,
no party may exercise this optional purchase right unless any Reimbursement
Amount owed to the Trust pursuant to Section 2.03 hereof has been paid.

                  In connection with any such purchase pursuant to the preceding
paragraph, the Servicer shall deliver to the Securities Administrator for
deposit in the Distribution Account all amounts then on deposit in the
Collection Account (less amounts permitted to be withdrawn by the Servicer
pursuant to Section 3.07), which deposit shall be deemed to have occurred
immediately following such purchase.

                  Any such purchase shall be accomplished by delivery on the
Determination Date before such Distribution Date of the Termination Price to the
Securities Administrator for deposit into the Distribution Account as part of
Available Funds.

                  (b) Notice of any termination, specifying the Distribution
Date (which shall be a date that would otherwise be a Distribution Date) upon
which the Certificateholders may surrender their Certificates to the Securities
Administrator for payment of the final distribution and cancellation, shall be
given promptly by the Securities Administrator upon the Securities Administrator
receiving notice of such date from the NIMS Insurer, the Majority Class CE
Certificateholders or the Servicer, as applicable, by letter to the
Certificateholders mailed not earlier than the 15th day of the month preceding
the month of such final distribution and not later than the 15th day of the
month of such final distribution specifying (1) the Distribution Date upon which
final distribution of the Certificates will be made upon presentation and
surrender of such Certificates at the office or agency of the Securities
Administrator therein designated, (2) the amount of any such final distribution
and (3) that the Record Date otherwise applicable to such Distribution Date is
not applicable, distributions being made only upon presentation and surrender of
the Certificates at the office or agency of the Securities Administrator therein
specified. Not more than two (2) Business Days following such Determination Date
relating to such Distribution Date, the Securities Administrator shall notify
the Originator and the Seller of the amount of any unpaid Reimbursement Amount
owed to the Trust.

                  (c) Upon presentation and surrender of the Certificates, the
Securities Administrator shall cause to be distributed to the Holders of the
Certificates on the Distribution Date for such final distribution, in proportion
to the Percentage Interests of their respective Class and to the extent that
funds are available for such purpose, an amount equal to the amount required to
be distributed to such Holders in accordance with the provisions of Sections
4.01 and 4.02 for such Distribution Date.

                                     -126-
<PAGE>

                  (d) In the event that all Certificateholders shall not
surrender their Certificates for final payment and cancellation on or before
such final Distribution Date, the Securities Administrator shall promptly
following such date cause all funds in the Distribution Account not distributed
in final distribution to Certificateholders to be withdrawn therefrom and
credited to the remaining Certificateholders by depositing such funds in a
separate escrow account for the benefit of such Certificateholders, and the
Servicer shall give a second written notice to the remaining Certificateholders,
to surrender their Certificates for cancellation and receive the final
distribution with respect thereto. If within nine months after the second notice
all the Certificates shall not have been surrendered for cancellation, the Class
R Certificateholder shall be entitled to all unclaimed funds and other assets
which remain subject hereto (except with respect to the Class CE and Class P
Certificates) and the Securities Administrator upon transfer of such funds shall
be discharged of any responsibility for such funds, and all other
Certificateholders shall look to the Class R Certificateholder for payment.

                  Section 10.02 Additional Termination Requirements.

                  (a) In the event that the NIMS Insurer, the Majority Class CE
Certificateholders or the Servicer, as applicable, exercises the purchase option
as provided in Section 10.01, the Trust shall be terminated in accordance with
the following additional requirements, unless the Securities Administrator shall
have been furnished with an Opinion of Counsel to the effect that the failure of
the Trust to comply with the requirements of this Section will not cause an
Adverse REMIC Event to occur at any time that any Certificates are outstanding:

                  (i) The Securities Administrator shall designate a date within
         90 days prior to the final Distribution Date as the date of adoption of
         plans of complete liquidation of each of REMIC 1 and REMIC 2 and shall
         specify such date in the final federal income tax return of each REMIC;

                  (ii) After the date of adoption of such plans of complete
         liquidation and at or prior to the final Distribution Date, the
         Securities Administrator shall sell all of the assets of the Trust to
         the Majority Class CE Certificateholders or the Servicer, as
         applicable, for cash; and

                  (iii) At the time of the making of the final payment on the
         Certificates, the Securities Administrator shall distribute or credit,
         or cause to be distributed or credited in the following order of
         priority (A) (i) to the Holders of each of the Class A-1, Class A-2A,
         Class A-2B and Class A-2C Certificates, pro rata and (ii) sequentially,
         to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class
         M-6, Class M-7, Class M-8, Class M-9, Class M-10, Class B-1, Class B-2
         and Class B-3 Certificates the related Certificate Principal Balance,
         as applicable, plus one month's interest thereon at the applicable
         Certificate Interest Rate, (B) to the Class CE Certificates, the amount
         of any remaining Monthly Excess Cash Flow Amounts not previously
         distributed thereon, (C) to the remaining Regular Certificates and/or
         REMIC 1 Regular Interests the amounts allocable thereto pursuant to
         Section 4.08 and (D) to the Class R Certificateholder, all cash on hand
         in respect of the REMICs after such payment (other than cash retained
         to meet claims) and the Trust shall terminate at such time.

                                     -127-
<PAGE>

                  (b) By their acceptance of Certificates, the Holders thereof
hereby agree to appoint the Securities Administrator as their attorney-in-fact
to: (i) designate such date of adoption of plans of complete liquidation and
(ii) to take such other action in connection therewith as may be reasonably
required to carry out such plans of complete liquidation all in accordance with
the terms hereof.

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

                  Section 11.01 Amendment.

                  This Agreement may be amended from time to time by the
Depositor, the Securities Administrator, the Servicer and the Trustee; with the
consent of the NIMS Insurer and without the consent of the Certificateholders,
(i) to cure any ambiguity or mistake, (ii) to correct, modify or supplement any
provision herein which may be inconsistent with any other provision herein or
the Prospectus Supplement or Private Placement Memorandum, (iii) to make any
other provisions with respect to matters or questions arising under this
Agreement, which shall not be inconsistent with the provisions of this
Agreement, (iv) to comply with any requirements imposed by the Code or (v) to
provide for the rights of the NIMS Insurer; provided, however, that any such
action listed in clause (iii) above shall not adversely affect in any respect
the interests of any Certificateholder, as evidenced by (a) notice in writing to
the Depositor, the Securities Administrator, the Servicer and the Trustee from
the Rating Agencies that such action will not result in the reduction or
withdrawal of the rating of any outstanding Class of Certificates with respect
to which it is a Rating Agency, or (ii) an Opinion of Counsel delivered to the
Servicer, the Trustee and the Securities Administrator.

                  In addition, this Agreement may be amended from time to time
by the Depositor, the Securities Administrator, the Servicer and the Trustee,
with the consent of the NIMS Insurer and the Majority Certificateholders for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Agreement or of modifying in any manner the rights of
the Holders of Certificates; provided, however, that no such amendment or waiver
shall (x) reduce in any manner the amount of, or delay the timing of, payments
on the Certificates which are required to be made on any Certificate without the
consent of the Holder of such Certificate, (y) adversely affect in any material
respect the interests of the Holders of any Class of Certificates in a manner
other than as described in clause (x) above, without the consent of the Holders
of Certificates of such Class evidencing at least a 66(2)/3% Percentage Interest
in such Class, or (z) reduce the percentage of Voting Rights required by clause
(y) above without the consent of the Holders of all Certificates of such Class
then outstanding. Upon approval of an amendment, a copy of such amendment shall
be sent to the Rating Agencies. Prior to the execution of any amendment to this
Agreement, the Trustee and the Securities Administrator shall be entitled to
receive and rely upon an Opinion of Counsel (at the expense of the Person
seeking such amendment) stating that the execution of such amendment is
authorized or permitted by this Agreement. Each of the Securities Administrator
and Trustee may, but shall not be obligated to, enter into any such amendment
which affects the Trustee's or Securities Administrator's own rights, duties or
immunities under this Agreement.

                  Notwithstanding any provision of this Agreement to the
contrary, none of the Securities Administrator, the Trustee or the NIMS Insurer
shall consent to any amendment to this Agreement unless it shall have first
received an Opinion of Counsel, delivered by (and at the expense of) the Person
seeking such Amendment, to the effect that such amendment will not result in an
Adverse REMIC Event at any time that any Certificates are outstanding and that
the amendment is being made in accordance with the terms hereof.

                                     -128-
<PAGE>

                  Promptly after the execution of any such amendment the
Securities Administrator shall furnish, at the expense of the Person that
requested the amendment if such Person is the Servicer (but in no event at the
expense of the Trustee), otherwise at the expense of the Trust, a copy of such
amendment and the Opinion of Counsel referred to in the immediately preceding
paragraph to the Servicer and each Rating Agency.

                  It shall not be necessary for the consent of
Certificateholders under this Section 11.01 to approve the particular form of
any proposed amendment; instead it shall be sufficient if such consent shall
approve the substance thereof. The manner of obtaining such consents and of
evidencing the authorization of the execution thereof by Certificateholders
shall be subject to such reasonable regulations as the Securities Administrator
may prescribe.

                  Section 11.02 Recordation of Agreement; Counterparts.

                  To the extent permitted by applicable law, this Agreement is
subject to recordation in all appropriate public offices for real property
records in all of the counties or other comparable jurisdictions in which any or
all of the properties subject to the Mortgages are situated, and in any other
appropriate public recording office or elsewhere, such recordation to be
effected by the Servicer at the expense of the Trust, but only upon direction of
Certificateholders, accompanied by an Opinion of Counsel to the effect that such
recordation materially and beneficially affects the interests of the
Certificateholders.

                  For the purpose of facilitating the recordation of this
Agreement as herein provided and for other purposes, this Agreement may be
executed simultaneously in any number of counterparts, each of which
counterparts shall be deemed to be an original, and such counterparts shall
together constitute but one and the same instrument.

                  Section 11.03 Limitation on Rights of Certificateholders.

                  The death or incapacity of any Certificateholder shall not (i)
operate to terminate this Agreement or the Trust, (ii) entitle such
Certificateholder's legal representatives or heirs to claim an accounting or to
take any action or proceeding in any court for a partition or winding up of the
Trust, or (iii) otherwise affect the rights, obligations and liabilities of the
parties hereto or any of them.

                  Except as expressly provided for herein, no Certificateholder
shall have any right to vote or in any manner otherwise control the operation
and management of the Trust, or the obligations of the parties hereto, nor shall
anything herein set forth or contained in the terms of the Certificates be
construed so as to constitute the Certificateholders from time to time as
partners or members of an association; nor shall any Certificateholder be under
any liability to any third person by reason of any action taken by the parties
to this Agreement pursuant to any provision hereof.

                  No Certificateholder shall have any right by virtue of any
provision of this Agreement to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Agreement, unless such
Holder previously shall have given to the Trustee a written notice of default
and of the continuance thereof, as herein provided, and unless also the Holders
of Certificates entitled to at least 25% of the Voting Rights shall have made
written request upon the Trustee to institute such action, suit or proceeding in
its own name as Trustee hereunder and shall have offered to the Trustee such
reasonable indemnity as it may require against the costs, expenses and
liabilities to be incurred therein or thereby, and the Trustee for 60 days after
its receipt of such notice, request and offer of indemnity, shall have neglected
or refused to institute any such action, suit or proceeding. It is understood
and intended, and expressly covenanted by each Certificateholder with every
other Certificateholder and the Trustee, that no one or more Holders of
Certificates shall have any right in any manner whatever by virtue of any
provision of this Agreement to affect, disturb or prejudice the rights of the
Holders of any other of such Certificates, or to obtain or seek to obtain
priority over or preference to any other such Holder, which priority or
preference is not otherwise provided for herein, or to enforce any right under
this Agreement, except in the manner herein provided and for the equal, ratable
and common benefit of all Certificateholders. For the protection and enforcement
of the provisions of this Section 11.03 each and every Certificateholder and the
Trustee shall be entitled to such relief as can be given either at law or in
equity.

                                     -129-
<PAGE>

                  Section 11.04 Governing Law; Jurisdiction.

                  This Agreement shall be construed in accordance with the laws
of the State of New York, and the obligations, rights and remedies of the
parties hereunder shall be determined in accordance with such laws. With respect
to any claim arising out of this Agreement, each party irrevocably submits to
the exclusive jurisdiction of the courts of the State of New York and the United
States District Court located in the Borough of Manhattan in The City of New
York, and each party irrevocably waives any objection which it may have at any
time to the laying of venue of any suit, action or proceeding arising out of or
relating hereto brought in any such courts, irrevocably waives any claim that
any such suit, action or proceeding brought in any such court has been brought
in any inconvenient forum and further irrevocably waives the right to object,
with respect to such claim, suit, action or proceeding brought in any such
court, that such court does not have jurisdiction over such party, provided that
service of process has been made by any lawful means.

                  Section 11.05 Notices.

                  All directions, demands and notices hereunder shall be in
writing and shall be deemed to have been duly given if personally delivered at
or mailed by first class mail, postage prepaid, or by express delivery service,
to (a) in the case of the Trustee, Deutsche Bank National Trust Company, 1761
East St. Andrew Place, Santa Ana, California 92705, Attention: Trust
Administration - BA05W1, or such other address as may hereafter be furnished to
the Depositor, the NIMS Insurer, the Securities Administrator and the Servicer
in writing by the Trustee, (b) in the case of the Depositor, Asset Backed
Funding Corporation, 214 North Tryon Street, Charlotte, North Carolina 28255,
Attention: ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates, Series 2005-WF1,
or such other address as may be furnished to the Servicer, the Securities
Administrator, the NIMS Insurer and the Trustee in writing by the Depositor, (c)
in the case of the Servicer, Wells Fargo Bank, N.A., 1 Home Campus, Des Moines,
Iowa 50328-0001, Attention: General Counsel, MAC X2401-06T, (d) in the case of
the Securities Administrator, Wells Fargo Bank, N.A., P.O. Box 98, Columbia,
Maryland 21046, Attention: Corporate Trust Services - ABFC 2005-WF1 with a copy
to: (i) Wells Fargo Bank, N.A., 9062 Old Annapolis Road, Columbia, Maryland
21045, Attention: Corporate Trust Services - ABFC 2005-WF1 and (ii) Wells Fargo
Bank, N.A., Sixth Street and Marquette Avenue, Minneapolis, Minnesota 55479,
Attention: Corporate Trust Services - ABFC 2005-WF1, or such other address as
may be hereafter furnished to the Depositor, the Securities Administrator, the
NIMS Insurer and the Trustee by the Servicer in writing and (e) in the case of
the NIMS Insurer, such address furnished to the Depositor, the Securities
Administrator, the Servicer and the Trustee in writing by the NIMS Insurer. Any
notice required or permitted to be mailed to a Certificateholder shall be given
by first class mail, postage prepaid, at the address of such Holder as shown in
the Certificate Register. Notice of any Servicer Event of Termination shall be
given by telecopy and by certified mail. Any notice so mailed within the time
prescribed in this Agreement shall be conclusively presumed to have duly been
given when mailed, whether or not the Certificateholder receives such notice. A
copy of any notice required to be telecopied hereunder shall also be mailed to
the appropriate party in the manner set forth above.

                  In the event of any NIMS Insurer, the Depositor shall notify
the Servicer and the Securities Administrator of the existence and identity of
the NIMS Insurer.

                                     -130-
<PAGE>

                  Section 11.06 Severability of Provisions.

                  If any one or more of the covenants, agreements, provisions or
terms of this Agreement shall for any reason whatsoever be held invalid, then
such covenants, agreements, provisions or terms shall be deemed severable from
the remaining covenants, agreements, provisions or terms of this Agreement and
shall in no way affect the validity or enforceability of the other provisions of
this Agreement or of the Certificates or the rights of the Holders thereof.

                  Section 11.07 Article and Section References.

                  All article and section references used in this Agreement,
unless otherwise provided, are to articles and sections in this Agreement.

                  Section 11.08 Notice to the Rating Agencies and the NIMS
Insurer.

                  (a) Each of the Trustee and the Servicer shall be obligated to
use its best reasonable efforts promptly to provide notice to the Rating
Agencies and the NIMS Insurer with respect to each of the following of which a
Responsible Officer of the Trustee, the Securities Administrator or the
Servicer, as the case may be, has actual knowledge:

                  (i) any material change or amendment to this Agreement;

                  (ii) the occurrence of any Servicer Event of Termination that
         has not been cured or waived;

                  (iii) the resignation or termination of the Servicer, the
         Securities Administrator or the Trustee;

                  (iv) the final payment to Holders of the Certificates of any
         Class;

                  (v) any change in the location of any Account; and

                  (vi) if the Trustee is acting as successor servicer pursuant
         to Section 7.02 hereof, any event that would result in the inability of
         the Trustee to make Advances.

                  (vii) In addition, the Servicer shall promptly furnish to each
         Rating Agency copies of the following:

                  (A) each annual statement as to compliance described in
Section 3.19 hereof;

                  (B) each annual independent public accountants' servicing
report described in Section 3.20 hereof; and

                  (C) each notice delivered pursuant to Section 7.01(a) hereof
which relates to the fact that the Servicer has not made an Advance.

                  Any such notice pursuant to this Section 11.08 shall be in
writing and shall be deemed to have been duly given if personally delivered or
mailed by first class mail, postage prepaid, or by express delivery service to:
Fitch Ratings, One State Street Plaza, New York, New York 10004, Attention:
Managing Director, Residential Mortgage-Backed Securities; Standard & Poor's, a
division of The McGraw-Hill Companies, Inc., 55 Water Street, 41st Floor, New
York, New York 10041, Attention: Mortgage Surveillance Group; and the NIMS
Insurer, at the address to be provided by the Depositor.

                                     -131-
<PAGE>

                  Section 11.09 Further Assurances.

                  Notwithstanding any other provision of this Agreement, none of
the Regular Certificateholders, the Securities Administrator or the Trustee
shall have any obligation to consent to any amendment or modification of this
Agreement unless they have been provided reasonable security or indemnity
against their out-of-pocket expenses (including reasonable attorneys' fees) to
be incurred in connection therewith.

                  Section 11.10 Third Party Beneficiary.

                  Nothing in this Agreement or in the Certificates, expressed or
implied, shall give to any Person, other than the Certificateholders, the
parties hereto and the NIMS Insurer and their successors hereunder, any benefit
or any legal or equitable right, remedy or claim under this Agreement.

                  The NIMS Insurer shall be deemed a third-party beneficiary of
this Agreement to the same extent as if it were a party hereto, and shall have
the right to enforce the provisions of this Agreement directly against the
parties to this Agreement.

                  Section 11.11 Acts of Certificateholders.

                  (a) Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Agreement to be given or taken
by the Certificateholders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Certificateholders in
person or by agent duly appointed in writing; and such action shall become
effective when such instrument or instruments are delivered to the Trustee, the
Securities Administrator and the Servicer. Such instrument or instruments (and
the action embodied therein and evidenced thereby) are herein sometimes referred
to as the "act" of the Certificateholders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Agreement
and conclusive in favor of the Trustee, the Securities Administrator and the
Trust, if made in the manner provided in this Section 11.11.

                  (b) The fact and date of the execution by any Person of any
such instrument or writing may be proved by the affidavit of a witness of such
execution or by the certificate of a notary public or other officer authorized
by law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Whenever
such execution is by a signer acting in a capacity other than his or her
individual capacity, such certificate or affidavit shall also constitute
sufficient proof of his authority.

                  (c) Any request, demand, authorization, direction, notice,
consent, waiver or other action by any Certificateholder shall bind every future
Holder of such Certificate and the Holder of every Certificate issued upon the
registration of transfer thereof or in exchange therefor or in lieu thereof, in
respect of anything done, omitted or suffered to be done by the Trustee, the
Securities Administrator or the Trust in reliance thereon, whether or not
notation of such action is made upon such Certificate.

                        [Signatures follow on next page]

                                     -132-
<PAGE>

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

                                         ASSET BACKED FUNDING CORPORATION,
                                           as Depositor

                                         By:      /s/ Bruce W. Good
                                            ------------------------------------
                                            Name:  Bruce W. Good
                                            Title: Vice President

                                         WELLS FARGO BANK, N.A., as Servicer

                                         By:      /s/ Bradley A. Davis
                                            ------------------------------------
                                            Name:  Bradley A. Davis
                                            Title: Vice President

                                         WELLS FARGO BANK, N.A., as Securities
                                         Administrator

                                         By:      /s/ Peter A. Gobell
                                            ------------------------------------
                                            Name:  Peter A. Gobell
                                            Title: Vice President

                                         DEUTSCHE BANK NATIONAL TRUST
                                         COMPANY, as Trustee

                                         By:      /s/ Nicholas Gisler
                                            ------------------------------------
                                            Name:  Nicholas Gisler
                                            Title: Associate

                                         By:      /s/ Ronaldo Reyes
                                            ------------------------------------
                                             Name:  Ronaldo Reyes
                                             Title: Vice President

<PAGE>

STATE OF NORTH CAROLINA)
                       ) ss.:
COUNTY OF MECKLENBURG  )

                  On the 28th day of April 2005 before me, a notary public in
and for said State, personally appeared Bruce W. Good, known to me to be a Vice
President of Asset Backed Funding Corporation, a Delaware corporation that
executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

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

                                       Notary Public: Stephanie M. Siejka

                                       My Commission expires: December 15, 2007

<PAGE>

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

                  On the 28th day of April 2005 before me, a notary public in
and for said State, personally appeared Bradley A. Davis, known to me to be a
Vice President of Wells Fargo Bank, N.A., a national banking association, that
executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

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

                                 Notary Public: Samanthia Donini

                                 My Commission expires: February 1, 2006

<PAGE>

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

                  On the 28th day of April 2005 before me, a notary public in
and for said State, personally appeared Peter A. Gobell, known to me to be a
Vice President of Wells Fargo Bank, N.A., a national banking association, that
executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

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

                                     Notary Public: Graham M. Oglesby

                                     My Commission expires:  January 7, 2009

<PAGE>

STATE OF CALIFORNIA  )
                     ) ss.:
COUNTY OF ORANGE     )

                  On the 28th day of April 2005 before me, a notary public in
and for said State, personally appeared Nicholas Gisler, known to me to be an
Associate of Deutsche Bank National Trust Company, a national banking
association, that executed the within instrument, and also known to me to be the
person who executed it on behalf of said association, and acknowledged to me
that such association executed the within instrument.

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

                                        Notary Public:  Manuel Rivas

                                        My Commission expires:  December 9, 2008

<PAGE>

STATE OF CALIFORNIA )
                    ) ss.:
COUNTY OF ORANGE    )

                  On the 28th day of April 2005 before me, a notary public in
and for said State, personally appeared Ronaldo Reyes, known to me to be a Vice
President of Deutsche Bank National Trust Company, a national banking
association, that executed the within instrument, and also known to me to be the
person who executed it on behalf of said association, and acknowledged to me
that such association executed the within instrument.

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

                                      Notary Public:  Manuel Rivas

                                      My Commission expires:  December 9, 2008

<PAGE>

                                   EXHIBIT A-1

                       [FORM OF THE CLASS A-1 CERTIFICATE]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

                                     A-1-1
<PAGE>

                               ABFC 2005-WF1 TRUST
                         ABFC ASSET-BACKED CERTIFICATES
                           SERIES 2005-WF1, CLASS A-1

evidencing a beneficial ownership interest in a Trust Fund consisting primarily
of a pool of conventional fixed-rate and adjustable-rate one- to four-family
first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

Series 2005-WF1, Class A-1                  Original Class Certificate Principal
                                            Balance of the Class A-1
                                            Certificates as of the Closing Date:

Certificate Interest Rate:  Floating        $151,170,000

Date of Pooling and Servicing Agreement     Initial Certificate Principal
and Cut-off Date: April 1, 2005             Balance: $__

                                            Servicer:  Wells Fargo Bank, N.A.
First Distribution Date:  May 25, 2005
                                            Trustee:  Deutsche Bank National
No.                                         Trust Company

CUSIP: 04542B LU 4                          Securities Administrator: Wells
                                            Fargo Bank, N.A.

ISIN:  US04542BLU43                         Closing Date:  April 28, 2005

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that ____________ is the registered owner of a
Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class A-1 Certificates) in that certain beneficial ownership interest
evidenced by all the Class A-1 Certificates in the Trust Fund created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Asset Backed Funding Corporation (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Securities Administrator and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
A-1 Certificates on such Distribution Date pursuant to the Agreement; provided,
however, that if any Class A-1 Certificate becomes a Definitive Certificate, the
Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

                                     A-1-2
<PAGE>

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Securities
Administrator by wire transfer in immediately available funds to the account of
the Person entitled thereto if such Person shall have so notified the
Certificate Registrar in writing at least five Business Days prior to the Record
Date immediately prior to such Distribution Date and is the registered owner of
Class A-1 Certificates, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Securities Administrator of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Securities Administrator for that purpose as
provided in the Agreement.

                  The Certificate Interest Rate for the Class A-1 Certificates
for each Distribution Date will be the least of (i) One-Month LIBOR as of the
related LIBOR Determination Date plus the Class A-1 Certificate Margin, (ii) the
Pool Maximum Rate Cap and (iii) the Pool Cap. Interest will accrue on the Class
A-1 Certificates during each Interest Accrual Period at the Certificate Interest
Rate.

                  This Certificate is one of a duly authorized issue of
Certificates designated as ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates,
of the Series specified on the face hereof (herein called the "Certificates")
and representing a Percentage Interest in the Class A-1 Certificates.

                  The Class A-1 Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Accounts and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Securities Administrator and the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer, the Securities Administrator and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the Agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Securities Administrator
as provided in the Agreement, duly endorsed by, or accompanied by an assignment
in the form below or other written instrument of transfer in form satisfactory
to the Securities Administrator and the Certificate Registrar duly executed by,
the Holder hereof or such Holder's attorney duly authorized in writing, and
thereupon one or more new Certificates of the same Class in authorized
denominations evidencing the same aggregate Percentage Interest will be issued
to the designated transferee or transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

                                     A-1-3
<PAGE>

                  The Depositor, the Servicer, the Securities Administrator, the
Trustee and the Certificate Registrar and any agent of the Depositor, the
Servicer, the Securities Administrator, the Trustee or the Certificate Registrar
may treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and none of the Depositor, the Servicer, the Securities
Administrator, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by or on behalf of the Securities Administrator and required to be
paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan remaining in the Trust Fund, and (ii) the purchase by the party
designated in the Agreement at a price determined as provided in the Agreement
from the Trust Fund of all Mortgage Loans and all property acquired in respect
of such Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Pool Balance of the Mortgage Loans at the time of purchase being
10% or less of the Cut-off Date Aggregate Principal Balance.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Certificate Registrar, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

                                     A-1-4
<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated:

                                           WELLS FARGO BANK, N.A.,
                                             as Securities Administrator

                                           By:
                                               --------------------------------
                                               Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

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

                                           WELLS FARGO BANK, N.A.,
                                             as Certificate Registrar

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

Date of authentication:

                                     A-1-5
<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>

<S>       <C>                                   <C>
TEN COM   -  as tenants in common               UNIF GIFT MIN ACT - Custodian
                                                                    ---------
                                                                    (Cust) (Minor)
TEN ENT   -  as tenants by the entireties                           under Uniform Gifts
                                                                    to Minors Act
JT TEN    -  as joint tenants with right                            ________________
             of survivorship and not as                                 (State)
             tenants in common

</TABLE>

                  Additional abbreviations may also be used though not in the
above list.

                                   ASSIGNMENT
                                   ----------

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

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)______________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________

Dated:

                                         ---------------------------------------
                                         Signature by or on behalf of assignor

                                         ---------------------------------------
                                         Signature Guaranteed

                                     A-1-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available funds to _____________________________________________________________
________________________________________________________________________________
for the account of ___________________, account number ________________________,
or, if mailed by check, to ____________________________________________________.
Applicable statements should be mailed to ______________________________________
This information is provided by _______________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                     A-1-7
<PAGE>

                                   EXHIBIT A-2

                      [FORM OF THE CLASS A-2A CERTIFICATE]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

                                     A-2-1
<PAGE>

                               ABFC 2005-WF1 TRUST
                         ABFC ASSET-BACKED CERTIFICATES
                           SERIES 2005-WF1, CLASS A-2A

evidencing a beneficial ownership interest in a Trust Fund consisting primarily
of a pool of conventional fixed-rate and adjustable-rate one- to four-family
first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

Series 2005-WF1, Class A-2A                 Original Class Certificate Principal
                                            Balance of the Class A-2A
                                            Certificates as of the Closing Date:

Certificate Interest Rate:  Floating        $381,266,000

Date of Pooling and Servicing Agreement     Initial Certificate Principal
and Cut-off Date: April 1, 2005             Balance: $___

                                            Servicer: Wells Fargo Bank, N.A.
First Distribution Date:  May 25, 2005
                                            Trustee: Deutsche Bank National
No.                                         Trust Company

CUSIP:  04542B LV 2                         Securities Administrator: Wells
                                            Fargo Bank, N.A.

ISIN:  US04542BLV26                         Closing Date:  April 28, 2005

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that _______________ is the registered owner of
a Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class A-2A Certificates) in that certain beneficial ownership interest
evidenced by all the Class A-2A Certificates in the Trust Fund created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Asset Backed Funding Corporation (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Securities Administrator and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
A-2A Certificates on such Distribution Date pursuant to the Agreement; provided,
however, that if any Class A-2A Certificate becomes a Definitive Certificate,
the Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

                                     A-2-2
<PAGE>

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Securities
Administrator by wire transfer in immediately available funds to the account of
the Person entitled thereto if such Person shall have so notified the
Certificate Registrar in writing at least five Business Days prior to the Record
Date immediately prior to such Distribution Date and is the registered owner of
Class A-2A Certificates, or by check mailed by first class mail to the address
of the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Securities Administrator of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Securities Administrator for that purpose as
provided in the Agreement.

                  The Certificate Interest Rate for the Class A-2A Certificates
for each Distribution Date will be the least of (i) One-Month LIBOR as of the
related LIBOR Determination Date plus the Class A-2A Certificate Margin, (ii)
the Pool Maximum Rate Cap and (iii) the Pool Cap. Interest will accrue on the
Class A-2A Certificates during each Interest Accrual Period at the Certificate
Interest Rate.

                  This Certificate is one of a duly authorized issue of
Certificates designated as ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates,
of the Series specified on the face hereof (herein called the "Certificates")
and representing a Percentage Interest in the Class A-2A Certificates.

                  The Class A-2A Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Accounts and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Securities Administrator and the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer, the Securities Administrator and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the Agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Securities Administrator
as provided in the Agreement, duly endorsed by, or accompanied by an assignment
in the form below or other written instrument of transfer in form satisfactory
to the Securities Administrator and the Certificate Registrar duly executed by,
the Holder hereof or such Holder's attorney duly authorized in writing, and
thereupon one or more new Certificates of the same Class in authorized
denominations evidencing the same aggregate Percentage Interest will be issued
to the designated transferee or transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

                                     A-2-3
<PAGE>

                  The Depositor, the Servicer, the Securities Administrator, the
Trustee and the Certificate Registrar and any agent of the Depositor, the
Servicer, the Securities Administrator, the Trustee or the Certificate Registrar
may treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and none of the Depositor, the Servicer, the Securities
Administrator, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by or on behalf of the Securities Administrator and required to be
paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan remaining in the Trust Fund, and (ii) the purchase by the party
designated in the Agreement at a price determined as provided in the Agreement
from the Trust Fund of all Mortgage Loans and all property acquired in respect
of such Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Pool Balance of the Mortgage Loans at the time of purchase being
10% or less of the Cut-off Date Aggregate Principal Balance.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Certificate Registrar, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

                                     A-2-4
<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated:

                                  WELLS FARGO BANK, N.A.,
                                      as Securities Administrator

                                  By:
                                      -----------------------------------------
                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                  WELLS FARGO BANK, N.A.,
                                      as Certificate Registrar

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

Date of authentication:

                                     A-2-5
<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>

<S>      <C>                                      <C>
TEN COM  -  as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                      ---------
                                                                      (Cust) (Minor)
TEN ENT  -  as tenants by the entireties                              under Uniform Gifts
                                                                      to Minors Act
JT TEN   -  as joint tenants with right                               ________________
            of survivorship and not as                                      (State)
            tenants in common

</TABLE>

                  Additional abbreviations may also be used though not in the
above list.

                                   ASSIGNMENT
                                   ----------

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

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) _____________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________

Dated:

                                          --------------------------------------
                                          Signature by or on behalf of assignor

                                          --------------------------------------
                                          Signature Guaranteed

                                     A-2-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________________
for the account of _____________________, account number ______________________,
or, if mailed by check, to ____________________________________________________.
Applicable statements should be mailed to ______________________________________
This information is provided by _______________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                     A-2-7
<PAGE>

                                   EXHIBIT A-3

                      [FORM OF THE CLASS A-2B CERTIFICATE]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

                                     A-3-1
<PAGE>

                               ABFC 2005-WF1 TRUST
                         ABFC ASSET-BACKED CERTIFICATES
                           SERIES 2005-WF1, CLASS A-2B

evidencing a beneficial ownership interest in a Trust Fund consisting primarily
of a pool of conventional fixed-rate and adjustable-rate one- to four-family
first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

Series 2005-WF1, Class A-2B                 Original Class Certificate Principal
                                            Balance of the Class A-2B
                                            Certificates as of the Closing Date:

Certificate Interest Rate:  Floating        $346,454,000

Date of Pooling and Servicing Agreement     Initial Certificate Principal
and Cut-off Date: April 1, 2005             Balance: $__

                                            Servicer: Wells Fargo Bank, N.A.
First Distribution Date:  May 25, 2005
                                            Trustee: Deutsche Bank National
No.                                         Trust Company

CUSIP: 04542B LW 0                          Securities Administrator: Wells
                                            Fargo Bank, N.A.

ISIN:  US04542BLW09                         Closing Date:  April 28, 2005

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that _______________ is the registered owner of
a Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class A-2B Certificates) in that certain beneficial ownership interest
evidenced by all the Class A-2B Certificates in the Trust Fund created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Asset Backed Funding Corporation (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Securities Administrator and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
A-2B Certificates on such Distribution Date pursuant to the Agreement; provided,
however, that if any Class A-2B Certificate becomes a Definitive Certificate,
the Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

                                     A-3-2
<PAGE>

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Securities
Administrator by wire transfer in immediately available funds to the account of
the Person entitled thereto if such Person shall have so notified the
Certificate Registrar in writing at least five Business Days prior to the Record
Date immediately prior to such Distribution Date and is the registered owner of
Class A-2B Certificates, or by check mailed by first class mail to the address
of the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Securities Administrator of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Securities Administrator for that purpose as
provided in the Agreement.

                  The Certificate Interest Rate for the Class A-2B Certificates
for each Distribution Date will be the least of (i) One-Month LIBOR as of the
related LIBOR Determination Date plus the Class A-2B Certificate Margin, (ii)
the Pool Maximum Rate Cap and (iii) the Pool Cap. Interest will accrue on the
Class A-2B Certificates during each Interest Accrual Period at the Certificate
Interest Rate.

                  This Certificate is one of a duly authorized issue of
Certificates designated as ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates,
of the Series specified on the face hereof (herein called the "Certificates")
and representing a Percentage Interest in the Class A-2B Certificates.

                  The Class A-2B Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Accounts and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Securities Administrator and the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer, the Securities Administrator and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the Agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Securities Administrator
as provided in the Agreement, duly endorsed by, or accompanied by an assignment
in the form below or other written instrument of transfer in form satisfactory
to the Securities Administrator and the Certificate Registrar duly executed by,
the Holder hereof or such Holder's attorney duly authorized in writing, and
thereupon one or more new Certificates of the same Class in authorized
denominations evidencing the same aggregate Percentage Interest will be issued
to the designated transferee or transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

                                     A-3-3
<PAGE>

                  The Depositor, the Servicer, the Securities Administrator, the
Trustee and the Certificate Registrar and any agent of the Depositor, the
Servicer, the Securities Administrator, the Trustee or the Certificate Registrar
may treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and none of the Depositor, the Servicer, the Securities
Administrator, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by or on behalf of the Securities Administrator and required to be
paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan remaining in the Trust Fund, and (ii) the purchase by the party
designated in the Agreement at a price determined as provided in the Agreement
from the Trust Fund of all Mortgage Loans and all property acquired in respect
of such Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Pool Balance of the Mortgage Loans at the time of purchase being
10% or less of the Cut-off Date Aggregate Principal Balance.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Certificate Registrar, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

                                     A-3-4
<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated:

                                  WELLS FARGO BANK, N.A.,
                                      as Securities Administrator

                                  By:
                                      -----------------------------------------
                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

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

                                   WELLS FARGO BANK, N.A.,
                                       as Certificate Registrar

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

Date of authentication:

                                     A-3-5
<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>

<S>      <C>                                   <C>
TEN COM  -  as tenants in common               UNIF GIFT MIN ACT - Custodian
                                                                   ---------
                                                                   (Cust) (Minor)
TEN ENT  -  as tenants by the entireties                           under Uniform Gifts
                                                                   to Minors Act
JT TEN   -  as joint tenants with right                            ________________
            of survivorship and not as                                (State)
            tenants in common

</TABLE>

                  Additional abbreviations may also be used though not in the
above list.

                                   ASSIGNMENT
                                   ----------

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

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) _____________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________

Dated:

                                      ------------------------------------------
                                      Signature by or on behalf of assignor

                                      ------------------------------------------
                                      Signature Guaranteed

                                     A-3-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________________
for the account of _______________________, account number _____________________
or, if mailed by check, to _____________________________________________________
Applicable statements should be mailed to ______________________________________
This information is provided by ________________________________________________
the assignee named above, or ____________________________________, as its agent.

                                     A-3-7
<PAGE>

                                   EXHIBIT A-4

                      [FORM OF THE CLASS A-2C CERTIFICATE]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

                                     A-4-1
<PAGE>

                               ABFC 2005-WF1 TRUST
                         ABFC ASSET-BACKED CERTIFICATES
                           SERIES 2005-WF1, CLASS A-2C

evidencing a beneficial ownership interest in a Trust Fund consisting primarily
of a pool of conventional fixed-rate and adjustable-rate one- to four-family
first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

Series 2005-WF1, Class A-2C                 Original Class Certificate Principal
                                            Balance of the Class A-2C
                                            Certificates as of the Closing
Certificate Interest Rate: Floating         Date: $96,035,000

Date of Pooling and Servicing Agreement     Initial Certificate Principal
and Cut-off Date: April 1, 2005             Balance: $__

                                            Servicer: Wells Fargo Bank, N.A.
First Distribution Date: May 25, 2005
                                            Trustee: Deutsche Bank National
No.                                         Trust Company

CUSIP: 04542B LX 8                          Securities Administrator: Wells
                                            Fargo Bank, N.A.

ISIN: US04542BLX81                          Closing Date:  April 28, 2005

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that _______________ is the registered owner of
a Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class A-2C Certificates) in that certain beneficial ownership interest
evidenced by all the Class A-2C Certificates in the Trust Fund created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Asset Backed Funding Corporation (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Securities Administrator and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
A-2C Certificates on such Distribution Date pursuant to the Agreement; provided,
however, that if any Class A-2C Certificate becomes a Definitive Certificate,
the Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

                                     A-4-2
<PAGE>

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Securities
Administrator by wire transfer in immediately available funds to the account of
the Person entitled thereto if such Person shall have so notified the
Certificate Registrar in writing at least five Business Days prior to the Record
Date immediately prior to such Distribution Date and is the registered owner of
Class A-2C Certificates, or by check mailed by first class mail to the address
of the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Securities Administrator of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Securities Administrator for that purpose as
provided in the Agreement.

                  The Certificate Interest Rate for the Class A-2C Certificates
for each Distribution Date will be the least of (i) One-Month LIBOR as of the
related LIBOR Determination Date plus the Class A-2C Certificate Margin, (ii)
the Pool Maximum Rate Cap and (iii) the Pool Cap. Interest will accrue on the
Class A-2C Certificates during each Interest Accrual Period at the Certificate
Interest Rate.

                  This Certificate is one of a duly authorized issue of
Certificates designated as ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates,
of the Series specified on the face hereof (herein called the "Certificates")
and representing a Percentage Interest in the Class A-2C Certificates.

                  The Class A-2C Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Accounts and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Securities Administrator and the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer, the Securities Administrator and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the Agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Securities Administrator
as provided in the Agreement, duly endorsed by, or accompanied by an assignment
in the form below or other written instrument of transfer in form satisfactory
to the Securities Administrator and the Certificate Registrar duly executed by,
the Holder hereof or such Holder's attorney duly authorized in writing, and
thereupon one or more new Certificates of the same Class in authorized
denominations evidencing the same aggregate Percentage Interest will be issued
to the designated transferee or transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

                                     A-4-3
<PAGE>

                  The Depositor, the Servicer, the Securities Administrator, the
Trustee and the Certificate Registrar and any agent of the Depositor, the
Servicer, the Securities Administrator, the Trustee or the Certificate Registrar
may treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and none of the Depositor, the Servicer, the Securities
Administrator, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by or on behalf of the Securities Administrator and required to be
paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan remaining in the Trust Fund, and (ii) the purchase by the party
designated in the Agreement at a price determined as provided in the Agreement
from the Trust Fund of all Mortgage Loans and all property acquired in respect
of such Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Pool Balance of the Mortgage Loans at the time of purchase being
10% or less of the Cut-off Date Aggregate Principal Balance.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Certificate Registrar, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

                                     A-4-4
<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated:

                                     WELLS FARGO BANK, N.A.,
                                         as Securities Administrator

                                     By:
                                         --------------------------------------
                                         Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                     WELLS FARGO BANK, N.A.,
                                         as Certificate Registrar

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

Date of authentication:

                                     A-4-5
<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>

<S>         <C>                               <C>
TEN COM  -  as tenants in common              UNIF GIFT MIN ACT - Custodian
                                                                  ---------
                                                                  (Cust) (Minor)
TEN ENT  -  as tenants by the entireties                          under Uniform Gifts
                                                                  to Minors Act
JT TEN   -  as joint tenants with right                           ________________
            of survivorship and not as                                 (State)
            tenants in common

</TABLE>

                  Additional abbreviations may also be used though not in the
above list.

                                   ASSIGNMENT
                                   ----------

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

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) _____________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________

Dated:

                                       -----------------------------------------
                                       Signature by or on behalf of assignor

                                       -----------------------------------------
                                       Signature Guaranteed

                                     A-4-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________________
for the account of _________________________, account number __________________,
or, if mailed by check, to ____________________________________________________.
Applicable statements should be mailed to ______________________________________
This information is provided by _______________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                     A-4-7
<PAGE>

                                   EXHIBIT B-1

                         [FORM OF CLASS M-1 CERTIFICATE]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A CERTIFICATES
AS DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

THE CLASS M-1 CERTIFICATES ARE ONLY OFFERED FOR SALE, AND ARE ONLY TRANSFERABLE
TO PLAN INVESTORS IF AN EXEMPTION FROM THE PROHIBITED TRANSACTION RULES OF ERISA
AND THE CODE APPLIES.

                                     B-1-1
<PAGE>

                               ABFC 2005-WF1 TRUST
                         ABFC ASSET-BACKED CERTIFICATES
                           SERIES 2005-WF1, CLASS M-1

evidencing a beneficial ownership interest in a Trust Fund consisting primarily
of a pool of conventional fixed-rate and adjustable-rate one- to four-family
first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

Series 2005-WF1, Class M-1                 Original Class Certificate Principal
                                           Balance of the Class M-1 Certificates
Certificate Interest Rate: Floating        as of the Closing Date: $54,359,000

Date of Pooling and Servicing Agreement    Initial Certificate Principal
and Cut-off Date: April 1, 2005            Balance: $__

                                           Servicer: Wells Fargo Bank, N.A.
First Distribution Date: May 25, 2005
                                           Trustee: Deutsche Bank National Trust
No.                                        Company

CUSIP: 04542B LY 6                         Securities Administrator: Wells Fargo
                                           Bank, N.A.

ISIN:  US04542BLY64                        Closing Date: April 28, 2005

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that _________________ is the registered owner
of a Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class M-1 Certificates) in that certain beneficial ownership interest
evidenced by all the Class M-1 Certificates in the Trust Fund created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Asset Backed Funding Corporation (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Securities Administrator and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
M-1 Certificates on such Distribution Date pursuant to the Agreement; provided,
however, that if any Class M-1 Certificate becomes a Definitive Certificate, the
Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

                                     B-1-2
<PAGE>

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Securities
Administrator by wire transfer in immediately available funds to the account of
the Person entitled thereto if such Person shall have so notified the
Certificate Registrar in writing at least five Business Days prior to the Record
Date immediately prior to such Distribution Date and is the registered owner of
Class M-1 Certificates, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Securities Administrator of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Securities Administrator for that purpose as
provided in the Agreement.

                  The Certificate Interest Rate for the Class M-1 Certificates
for each Distribution Date will be the least of (i) One-Month LIBOR as of the
related LIBOR Determination Date plus the Class M-1 Certificate Margin, (ii) the
Pool Maximum Rate Cap and (iii) the Pool Cap. Interest will accrue on the Class
M-1 Certificates during each Interest Accrual Period at the Certificate Interest
Rate.

                  This Certificate is one of a duly authorized issue of
Certificates designated as ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates,
of the Series specified on the face hereof (herein called the "Certificates")
and representing a Percentage Interest in the Class M-1 Certificates.

                  The Class M-1 Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Accounts and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                  This certificate is subordinated in right of payment to the
Class A Certificates as described in the Agreement referred to herein.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Securities Administrator, the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer, the Securities Administrator and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the Agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Securities Administrator
as provided in the Agreement, duly endorsed by, or accompanied by an assignment
in the form below or other written instrument of transfer in form satisfactory
to the Securities Administrator and the Certificate Registrar duly executed by,
the Holder hereof or such Holder's attorney duly authorized in writing, and
thereupon one or more new Certificates of the same Class in authorized
denominations evidencing the same aggregate Percentage Interest will be issued
to the designated transferee or transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

                                     B-1-3
<PAGE>

                  The Depositor, the Servicer, the Securities Administrator, the
Trustee and the Certificate Registrar and any agent of the Depositor, the
Servicer, the Securities Administrator, the Trustee or the Certificate Registrar
may treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and none of the Depositor, the Servicer, the Securities
Administrator, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by or on behalf of the Securities Administrator and required to be
paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan remaining in the Trust Fund, and (ii) the purchase by the party
designated in the Agreement at a price determined as provided in the Agreement
from the Trust Fund of all Mortgage Loans and all property acquired in respect
of such Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Pool Balance of the Mortgage Loans at the time of purchase being
10% or less of the Cut-off Date Aggregate Principal Balance.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Certificate Registrar, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

                                     B-1-4
<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated:

                                     WELLS FARGO BANK, N.A.,
                                         as Securities Administrator

                                     By:
                                         --------------------------------------
                                         Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

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

                                     WELLS FARGO BANK, N.A.,
                                         as Certificate Registrar

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

Date of authentication:

                                     B-1-5
<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>

<S>      <C>                                  <C>
TEN COM  -  as tenants in common              UNIF GIFT MIN ACT - Custodian
                                                                  ---------
                                                                  (Cust) (Minor)
TEN ENT  -  as tenants by the entireties                          under Uniform Gifts
                                                                  to Minors Act
JT TEN   -  as joint tenants with right                           ________________
            of survivorship and not as                               (State)
            tenants in common

</TABLE>

                  Additional abbreviations may also be used though not in the
above list.

                                   ASSIGNMENT
                                   ----------

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

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) _____________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

Dated:

                                        ----------------------------------------
                                        Signature by or on behalf of assignor

                                        ----------------------------------------
                                        Signature Guaranteed

                                     B-1-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________________
for the account of _________________________, account number __________________,
or, if mailed by check, to ____________________________________________________.
Applicable statements should be mailed to ______________________________________
This information is provided by _______________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                     B-1-7
<PAGE>

                                   EXHIBIT B-2

                         [FORM OF CLASS M-2 CERTIFICATE]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A AND CLASS
M-1 CERTIFICATES AS DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO
HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

THE CLASS M-2 CERTIFICATES ARE ONLY OFFERED FOR SALE, AND ARE ONLY TRANSFERABLE
TO PLAN INVESTORS IF AN EXEMPTION FROM THE PROHIBITED TRANSACTION RULES OF ERISA
AND THE CODE APPLIES.

                                     B-2-1
<PAGE>

                               ABFC 2005-WF1 TRUST
                         ABFC ASSET-BACKED CERTIFICATES
                           SERIES 2005-WF1, CLASS M-2

evidencing a beneficial ownership interest in a Trust Fund consisting primarily
of a pool of conventional fixed-rate and adjustable-rate one- to four-family
first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

Series 2005-WF1, Class M-2                 Original Class Certificate Principal
                                           Balance of the Class M-2 Certificates
Certificate Interest Rate: Floating        as of the Closing Date: $34,270,000

Date of Pooling and Servicing Agreement    Initial Certificate Principal
and Cut-off Date: April 1, 2005            Balance: $__

                                           Servicer: Wells Fargo Bank, N.A.
First Distribution Date: May 25, 2005
                                           Trustee: Deutsche Bank National Trust
No.                                        Company

CUSIP: 04542B LZ 3                         Securities Administrator: Wells Fargo
                                           Bank, N.A.

ISIN: US04542BLZ30                         Closing Date: April 28, 2005

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that _________________ is the registered owner
of a Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class M-2 Certificates) in that certain beneficial ownership interest
evidenced by all the Class M-2 Certificates in the Trust Fund created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Asset Backed Funding Corporation (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Securities Administrator and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
M-2 Certificates on such Distribution Date pursuant to the Agreement; provided,
however, that if any Class M-2 Certificate becomes a Definitive Certificate, the
Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

                                     B-2-2
<PAGE>

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Securities
Administrator by wire transfer in immediately available funds to the account of
the Person entitled thereto if such Person shall have so notified the
Certificate Registrar in writing at least five Business Days prior to the Record
Date immediately prior to such Distribution Date and is the registered owner of
Class M-2 Certificates, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Securities Administrator of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Securities Administrator for that purpose as
provided in the Agreement.

                  The Certificate Interest Rate for the Class M-2 Certificates
for each Distribution Date will be the least of (i) One-Month LIBOR as of the
related LIBOR Determination Date plus the Class M-2 Certificate Margin, (ii) the
Pool Maximum Rate Cap and (iii) the Pool Cap. Interest will accrue on the Class
M-2 Certificates during each Interest Accrual Period at the Certificate Interest
Rate.

                  This Certificate is one of a duly authorized issue of
Certificates designated as ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates,
of the Series specified on the face hereof (herein called the "Certificates")
and representing a Percentage Interest in the Class M-2 Certificates.

                  The Class M-2 Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Accounts and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                  This certificate is subordinated in right of payment to the
Class A Certificates and Class M-1 Certificates as described in the Agreement
referred to herein.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Securities Administrator, the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer, the Securities Administrator and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the Agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Securities Administrator
as provided in the Agreement, duly endorsed by, or accompanied by an assignment
in the form below or other written instrument of transfer in form satisfactory
to the Securities Administrator and the Certificate Registrar duly executed by,
the Holder hereof or such Holder's attorney duly authorized in writing, and
thereupon one or more new Certificates of the same Class in authorized
denominations evidencing the same aggregate Percentage Interest will be issued
to the designated transferee or transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

                                     B-2-3
<PAGE>

                  The Depositor, the Servicer, the Securities Administrator, the
Trustee and the Certificate Registrar and any agent of the Depositor, the
Servicer, the Securities Administrator, the Trustee or the Certificate Registrar
may treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and none of the Depositor, the Servicer, the Securities
Administrator, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by or on behalf of the Securities Administrator and required to be
paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan remaining in the Trust Fund, and (ii) the purchase by the party
designated in the Agreement at a price determined as provided in the Agreement
from the Trust Fund of all Mortgage Loans and all property acquired in respect
of such Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Pool Balance of the Mortgage Loans at the time of purchase being
10% or less of the Cut-off Date Aggregate Principal Balance.

                  The recitals contained herein shall be taken as statements of
the Depositor an neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Certificate Registrar, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

                                     B-2-4
<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated:

                                  WELLS FARGO BANK, N.A.,
                                      as Securities Administrator

                                  By:
                                      -----------------------------------------
                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

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

                                  WELLS FARGO BANK, N.A.,
                                      as Certificate Registrar

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

Date of authentication:

                                     B-2-5
<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>

<S>      <C>                                    <C>
TEN COM  -  as tenants in common                UNIF GIFT MIN ACT - Custodian
                                                                    ---------
                                                                    (Cust) (Minor)
TEN ENT  -  as tenants by the entireties                            under Uniform Gifts
                                                                    to Minors Act
JT TEN   -  as joint tenants with right                             ________________
            of survivorship and not as                                 (State)
            tenants in common

</TABLE>

                  Additional abbreviations may also be used though not in the
above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto ___________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) _____________________________________________

a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________
Dated:

                                    -------------------------------------------
                                    Signature by or on behalf of assignor

                                    -------------------------------------------
                                    Signature Guaranteed

                                     B-2-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
for the account of __________________________, account number __________________
or, if mailed by check, to ____________________________________________________.
Applicable statements should be mailed to ______________________________________
This information is provided by _______________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                     B-2-7
<PAGE>

                                   EXHIBIT B-3

                         [FORM OF CLASS M-3 CERTIFICATE]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A, CLASS M-1
AND CLASS M-2 CERTIFICATES AS DESCRIBED IN THE POOLING AND SERVICING AGREEMENT
REFERRED TO HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

THE CLASS M-3 CERTIFICATES ARE ONLY OFFERED FOR SALE, AND ARE ONLY TRANSFERABLE
TO PLAN INVESTORS IF AN EXEMPTION FROM THE PROHIBITED TRANSACTION RULES OF ERISA
AND THE CODE APPLIES.

                                     B-3-1
<PAGE>

                               ABFC 2005-WF1 TRUST
                         ABFC ASSET-BACKED CERTIFICATES
                           SERIES 2005-WF1, CLASS M-3

evidencing a beneficial ownership interest in a Trust Fund consisting primarily
of a pool of conventional fixed-rate and adjustable-rate one- to four-family
first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

Series 2005-WF1, Class M-3                 Original Class Certificate Principal
                                           Balance of the Class M-3 Certificates
Certificate Interest Rate: Floating        as of the Closing Date: $16,545,000

Date of Pooling and Servicing Agreement    Initial Certificate Principal
and Cut-off Date: April 1, 2005            Balance: $__

                                           Servicer:  Wells Fargo Bank, N.A.
First Distribution Date: May 25, 2005
                                           Trustee: Deutsche Bank National Trust
No.                                        Company

CUSIP: 04542B MA 7                         Securities Administrator: Wells Fargo
                                           Bank, N.A.

ISIN: US04542BMA79                         Closing Date: April 28, 2005

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that _________________ is the registered owner
of a Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class M-3 Certificates) in that certain beneficial ownership interest
evidenced by all the Class M-3 Certificates in the Trust Fund created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Asset Backed Funding Corporation (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Securities Administrator and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
M-3 Certificates on such Distribution Date pursuant to the Agreement; provided,
however, that if any Class M-3 Certificate becomes a Definitive Certificate, the
Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

                                     B-3-2
<PAGE>

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Securities
Administrator by wire transfer in immediately available funds to the account of
the Person entitled thereto if such Person shall have so notified the
Certificate Registrar in writing at least five Business Days prior to the Record
Date immediately prior to such Distribution Date and is the registered owner of
Class M-3 Certificates, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Securities Administrator of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Securities Administrator for that purpose as
provided in the Agreement.

                  The Certificate Interest Rate for the Class M-3 Certificates
for each Distribution Date will be the least of (i) One-Month LIBOR as of the
related LIBOR Determination Date plus the Class M-3 Certificate Margin, (ii) the
Pool Maximum Rate Cap and (iii) the Pool Cap. Interest will accrue on the Class
M-3 Certificates during each Interest Accrual Period at the Certificate Interest
Rate.

                  This Certificate is one of a duly authorized issue of
Certificates designated as ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates,
of the Series specified on the face hereof (herein called the "Certificates")
and representing a Percentage Interest in the Class M-3 Certificates.

                  The Class M-3 Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Accounts and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                  This certificate is subordinated in right of payment to the
Class A Certificates, Class M-1 Certificates and Class M-2 Certificates as
described in the Agreement referred to herein.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Securities Administrator and the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer, the Securities Administrator and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the Agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Securities Administrator
as provided in the Agreement, duly endorsed by, or accompanied by an assignment
in the form below or other written instrument of transfer in form satisfactory
to the Securities Administrator and the Certificate Registrar duly executed by,
the Holder hereof or such Holder's attorney duly authorized in writing, and
thereupon one or more new Certificates of the same Class in authorized
denominations evidencing the same aggregate Percentage Interest will be issued
to the designated transferee or transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

                                     B-3-3
<PAGE>

                  The Depositor, the Servicer, the Securities Administrator, the
Trustee and the Certificate Registrar and any agent of the Depositor, the
Servicer, the Securities Administrator, the Trustee or the Certificate Registrar
may treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and none of the Depositor, the Servicer, the Securities
Administrator, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by or on behalf of the Securities Administrator and required to be
paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan remaining in the Trust Fund, and (ii) the purchase by the party
designated in the Agreement at a price determined as provided in the Agreement
from the Trust Fund of all Mortgage Loans and all property acquired in respect
of such Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Pool Balance of the Mortgage Loans at the time of purchase being
10% or less of the Cut-off Date Aggregate Principal Balance.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Certificate Registrar, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

                                     B-3-4
<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated:

                                   WELLS FARGO BANK, N.A.,
                                       as Securities Administrator

                                   By:
                                       ----------------------------------------
                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                   WELLS FARGO BANK, N.A.,
                                       as Certificate Registrar

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

Date of authentication:

                                     B-3-5
<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>

<S>      <C>                                     <C>
TEN COM  -  as tenants in common                 UNIF GIFT MIN ACT - Custodian
                                                                     ---------
                                                                     (Cust) (Minor)
TEN ENT  -  as tenants by the entireties                             under Uniform Gifts
                                                                     to Minors Act
JT TEN   -  as joint tenants with right                              ________________
            of survivorship and not as                                    (State)
            tenants in common

</TABLE>

                  Additional abbreviations may also be used though not in the
above list.

                                   ASSIGNMENT
                                   ----------

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

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) _____________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

Dated:

                                      -----------------------------------------
                                      Signature by or on behalf of assignor

                                      -----------------------------------------
                                      Signature Guaranteed

                                     B-3-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
for the account of __________________________, account number __________________
or, if mailed by check, to ____________________________________________________.
Applicable statements should be mailed to ______________________________________
This information is provided by _______________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                     B-3-7
<PAGE>

                                   EXHIBIT B-4

                         [FORM OF CLASS M-4 CERTIFICATE]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A, CLASS M-1,
CLASS M-2 AND CLASS M-3 CERTIFICATES AS DESCRIBED IN THE POOLING AND SERVICING
AGREEMENT REFERRED TO HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

THE CLASS M-4 CERTIFICATES ARE ONLY OFFERED FOR SALE, AND ARE ONLY TRANSFERABLE
TO PLAN INVESTORS IF AN EXEMPTION FROM THE PROHIBITED TRANSACTION RULES OF ERISA
AND THE CODE APPLIES.

                                     B-4-1
<PAGE>

                               ABFC 2005-WF1 TRUST
                         ABFC ASSET-BACKED CERTIFICATES
                           SERIES 2005-WF1, CLASS M-4

evidencing a beneficial ownership interest in a Trust Fund consisting primarily
of a pool of conventional fixed-rate and adjustable-rate one- to four-family
first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

Series 2005-WF1, Class M-4                 Original Class Certificate Principal
                                           Balance of the Class M-4 Certificates
Certificate Interest Rate: Floating        as of the Closing Date: $11,817,000

Date of Pooling and Servicing Agreement    Initial Certificate Principal
and Cut-off Date: April 1, 2005            Balance: $__

First Distribution Date: May 25, 2005      Servicer: Wells Fargo Bank, N.A.

                                           Trustee: Deutsche Bank National Trust
No.                                        Company

CUSIP: 04542B MB 5                         Securities Administrator: Wells Fargo
                                           Bank, N.A.

ISIN: US04542BMB52                         Closing Date: April 28, 2005

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that _________________ is the registered owner
of a Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class M-4 Certificates) in that certain beneficial ownership interest
evidenced by all the Class M-4 Certificates in the Trust Fund created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Asset Backed Funding Corporation (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Securities Administrator and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
M-4 Certificates on such Distribution Date pursuant to the Agreement; provided,
however, that if any Class M-4 Certificate becomes a Definitive Certificate, the
Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

                                     B-4-2
<PAGE>

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Securities
Administrator by wire transfer in immediately available funds to the account of
the Person entitled thereto if such Person shall have so notified the
Certificate Registrar in writing at least five Business Days prior to the Record
Date immediately prior to such Distribution Date and is the registered owner of
Class M-4 Certificates, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Securities Administrator of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Securities Administrator for that purpose as
provided in the Agreement.

                  The Certificate Interest Rate for the Class M-4 Certificates
for each Distribution Date will be the least of (i) One-Month LIBOR as of the
related LIBOR Determination Date plus the Class M-4 Certificate Margin, (ii) the
Pool Maximum Rate Cap and (iii) the Pool Cap. Interest will accrue on the Class
M-4 Certificates during each Interest Accrual Period at the Certificate Interest
Rate.

                  This Certificate is one of a duly authorized issue of
Certificates designated as ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates,
of the Series specified on the face hereof (herein called the "Certificates")
and representing a Percentage Interest in the Class M-4 Certificates.

                  The Class M-4 Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Accounts and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                  This certificate is subordinated in right of payment to the
Class A Certificates, Class M-1 Certificates, Class M-2 Certificates and Class
M-3 Certificates as described in the Agreement referred to herein.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Securities Administrator, the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer, the Securities Administrator and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the Agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Securities Administrator
as provided in the Agreement, duly endorsed by, or accompanied by an assignment
in the form below or other written instrument of transfer in form satisfactory
to the Securities Administrator and the Certificate Registrar duly executed by,
the Holder hereof or such Holder's attorney duly authorized in writing, and
thereupon one or more new Certificates of the same Class in authorized
denominations evidencing the same aggregate Percentage Interest will be issued
to the designated transferee or transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

                                     B-4-3
<PAGE>

                  The Depositor, the Servicer, the Securities Administrator, the
Trustee and the Certificate Registrar and any agent of the Depositor, the
Servicer, the Securities Administrator, the Trustee or the Certificate Registrar
may treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and none of the Depositor, the Servicer, the Securities
Administrator, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by or on behalf of the Securities Administrator and required to be
paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan remaining in the Trust Fund, and (ii) the purchase by the party
designated in the Agreement at a price determined as provided in the Agreement
from the Trust Fund of all Mortgage Loans and all property acquired in respect
of such Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Pool Balance of the Mortgage Loans at the time of purchase being
10% or less of the Cut-off Date Aggregate Principal Balance.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Certificate Registrar, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

                                     B-4-4
<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated:

                                    WELLS FARGO BANK, N.A.,
                                        as Securities Administrator

                                    By:
                                        ---------------------------------------
                                        Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                    WELLS FARGO BANK, N.A.,
                                        as Certificate Registrar

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

Date of authentication:

                                     B-4-5
<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>

<S>      <C>                                   <C>
TEN COM  -  as tenants in common               UNIF GIFT MIN ACT - Custodian
                                                                   ---------
                                                                   (Cust) (Minor)
TEN ENT  -  as tenants by the entireties                           under Uniform Gifts
                                                                   to Minors Act
JT TEN   -  as joint tenants with right                            ________________
            of survivorship and not as                                  (State)
            tenants in common
</TABLE>

                  Additional abbreviations may also be used though not in the
above list.

                                   ASSIGNMENT
                                   ----------

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

(Please print or typewrite name, address including postal
zip code, and Taxpayer Identification Number of assignee) ______________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

Dated:

                                     ------------------------------------------
                                     Signature by or on behalf of assignor

                                     ------------------------------------------
                                     Signature Guaranteed

                                     B-4-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
for the account of __________________________, account number __________________
or, if mailed by check, to ____________________________________________________.
Applicable statements should be mailed to ______________________________________
This information is provided by _______________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                     B-4-7
<PAGE>

                                   EXHIBIT B-5

                         [FORM OF CLASS M-5 CERTIFICATE]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A, CLASS M-1,
CLASS M-2, CLASS M-3 AND CLASS M-4 CERTIFICATES AS DESCRIBED IN THE POOLING AND
SERVICING AGREEMENT REFERRED TO HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

THE CLASS M-5 CERTIFICATES ARE ONLY OFFERED FOR SALE, AND ARE ONLY TRANSFERABLE
TO PLAN INVESTORS IF AN EXEMPTION FROM THE PROHIBITED TRANSACTION RULES OF ERISA
AND THE CODE APPLIES.

                                     B-5-1
<PAGE>

                               ABFC 2005-WF1 TRUST
                         ABFC ASSET-BACKED CERTIFICATES
                           SERIES 2005-WF1, CLASS M-5

evidencing a beneficial ownership interest in a Trust Fund consisting primarily
of a pool of conventional fixed-rate and adjustable-rate one- to four-family
first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

Series 2005-WF1, Class M-5                 Original Class Certificate Principal
                                           Balance of the Class M-5 Certificates
Certificate Interest Rate: Floating        as of the Closing Date: $11,817,000

Date of Pooling and Servicing Agreement    Initial Certificate Principal
and Cut-off Date: April 1, 2005            Balance: $__

First Distribution Date: May 25, 2005      Servicer: Wells Fargo Bank, N.A.

No.                                        Trustee: Deutsche Bank National Trust
                                           Company

CUSIP: 04542B MC 3                         Securities Administrator: Wells Fargo
                                           Bank, N.A.

ISIN: US04542BMC36                         Closing Date: April 28, 2005

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that _________________ is the registered owner
of a Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class M-5 Certificates) in that certain beneficial ownership interest
evidenced by all the Class M-5 Certificates in the Trust Fund created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Asset Backed Funding Corporation (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Securities Administrator, and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
M-5 Certificates on such Distribution Date pursuant to the Agreement; provided,
however, that if any Class M-5 Certificate becomes a Definitive Certificate, the
Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

                                     B-5-2
<PAGE>

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Securities
Administrator by wire transfer in immediately available funds to the account of
the Person entitled thereto if such Person shall have so notified the
Certificate Registrar in writing at least five Business Days prior to the Record
Date immediately prior to such Distribution Date and is the registered owner of
Class M-5 Certificates, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Securities Administrator of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Securities Administrator for that purpose as
provided in the Agreement.

                  The Certificate Interest Rate for the Class M-5 Certificates
for each Distribution Date will be the least of (i) One-Month LIBOR as of the
related LIBOR Determination Date plus the Class M-5 Certificate Margin, (ii) the
Pool Maximum Rate Cap and (iii) the Pool Cap. Interest will accrue on the Class
M-5 Certificates during each Interest Accrual Period at the Certificate Interest
Rate.

                  This Certificate is one of a duly authorized issue of
Certificates designated as ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates,
of the Series specified on the face hereof (herein called the "Certificates")
and representing a Percentage Interest in the Class M-5 Certificates.

                  The Class M-5 Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Accounts and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                  This certificate is subordinated in right of payment to the
Class A Certificates, Class M-1 Certificates, Class M-2 Certificates, Class M-3
Certificates and Class M-4 Certificates as described in the Agreement referred
to herein.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Securities Administrator, the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer, the Securities Administrator and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the Agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Securities Administrator
as provided in the Agreement, duly endorsed by, or accompanied by an assignment
in the form below or other written instrument of transfer in form satisfactory
to the Securities Administrator and the Certificate Registrar duly executed by,
the Holder hereof or such Holder's attorney duly authorized in writing, and
thereupon one or more new Certificates of the same Class in authorized
denominations evidencing the same aggregate Percentage Interest will be issued
to the designated transferee or transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

                                     B-5-3
<PAGE>

                  The Depositor, the Servicer, the Securities Administrator, the
Trustee and the Certificate Registrar and any agent of the Depositor, the
Servicer, the Securities Administrator, the Trustee or the Certificate Registrar
may treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and none of the Depositor, the Servicer, the Securities
Administrator, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by or on behalf of the Securities Administrator and required to be
paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan remaining in the Trust Fund, and (ii) the purchase by the party
designated in the Agreement at a price determined as provided in the Agreement
from the Trust Fund of all Mortgage Loans and all property acquired in respect
of such Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Pool Balance of the Mortgage Loans at the time of purchase being
10% or less of the Cut-off Date Aggregate Principal Balance.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Certificate Registrar, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

                                     B-5-4
<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated:

                                      WELLS FARGO BANK, N.A.,
                                          as Securities Administrator

                                      By:
                                          --------------------------------------
                                          Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                      WELLS FARGO BANK, N.A.,
                                          as Certificate Registrar

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

Date of authentication:

                                     B-5-5
<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>

<S>      <C>                                   <C>
TEN COM  -  as tenants in common               UNIF GIFT MIN ACT - Custodian
                                                                   ---------
                                                                   (Cust) (Minor)
TEN ENT  -  as tenants by the entireties                           under Uniform Gifts
                                                                   to Minors Act
JT TEN   -  as joint tenants with right                            ________________
            of survivorship and not as                                 (State)
            tenants in common

</TABLE>

                  Additional abbreviations may also be used though not in the
above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto _______________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) _____________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________
Dated:

                                       -----------------------------------------
                                       Signature by or on behalf of assignor

                                       -----------------------------------------
                                       Signature Guaranteed

                                     B-5-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
for the account of __________________________, account number __________________
or, if mailed by check, to ____________________________________________________.
Applicable statements should be mailed to ______________________________________
This information is provided by _______________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                     B-5-7

<PAGE>

                                   EXHIBIT B-6

                         [FORM OF CLASS M-6 CERTIFICATE]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A, CLASS M-1,
CLASS M-2, CLASS M-3, CLASS M-4 AND CLASS M-5 CERTIFICATES AS DESCRIBED IN THE
POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

THE CLASS M-6 CERTIFICATES ARE ONLY OFFERED FOR SALE, AND ARE ONLY TRANSFERABLE
TO PLAN INVESTORS IF AN EXEMPTION FROM THE PROHIBITED TRANSACTION RULES OF ERISA
AND THE CODE APPLIES.

                                     B-6-1
<PAGE>

                               ABFC 2005-WF1 TRUST
                         ABFC ASSET-BACKED CERTIFICATES
                           SERIES 2005-WF1, CLASS M-6

evidencing a beneficial ownership interest in a Trust Fund consisting primarily
of a pool of conventional fixed-rate and adjustable-rate one- to four-family
first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

<TABLE>
<CAPTION>
<S>                                                              <C>
Series 2005-WF1, Class M-6                                       Original Class Certificate Principal Balance of the Class M-6
                                                                 Certificates as of the Closing Date:
Certificate Interest Rate:  Floating                             $12,408,000

Date of Pooling and Servicing Agreement and Cut-off Date:        Initial Certificate Principal Balance: $__
April 1, 2005
                                                                 Servicer:  Wells Fargo Bank, N.A.
First Distribution Date:  May 25, 2005

No.                                                              Trustee:  Deutsche Bank National Trust Company

CUSIP:  04542B MD 1                                              Securities Administrator: Wells Fargo Bank, N.A.

ISIN:  US04542BMD19                                              Closing Date: April 28, 2005

</TABLE>

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

       This certifies that _________________ is the registered owner of a
Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class M-6 Certificates) in that certain beneficial ownership interest
evidenced by all the Class M-6 Certificates in the Trust Fund created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Asset Backed Funding Corporation (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Securities Administrator and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

       Pursuant to the terms of the Agreement, distributions will be made on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (a "Distribution Date"), commencing on the first
Distribution Date specified above, to the Person in whose name this Certificate
is registered on the Business Day immediately preceding such Distribution Date
(the "Record Date"), from funds in the Distribution Account in an amount equal
to the product of the Percentage Interest evidenced by this Certificate and the
amount required to be distributed to the Holders of Class M-6 Certificates on
such Distribution Date pursuant to the Agreement; provided, however, that if any
Class M-6 Certificate becomes a Definitive Certificate, the Record Date for such
Certificate will be the last Business Day of the month immediately preceding the
month in which the related Distribution Date occurs.

                                     B-6-2
<PAGE>

       All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Securities
Administrator by wire transfer in immediately available funds to the account of
the Person entitled thereto if such Person shall have so notified the
Certificate Registrar in writing at least five Business Days prior to the Record
Date immediately prior to such Distribution Date and is the registered owner of
Class M-6 Certificates, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Securities Administrator of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Securities Administrator for that purpose as
provided in the Agreement.

       The Certificate Interest Rate for the Class M-6 Certificates for each
Distribution Date will be the least of (i) One-Month LIBOR as of the related
LIBOR Determination Date plus the Class M-6 Certificate Margin, (ii) the Pool
Maximum Rate Cap and (iii) the Pool Cap. Interest will accrue on the Class M-6
Certificates during each Interest Accrual Period at the Certificate Interest
Rate.

       This Certificate is one of a duly authorized issue of Certificates
designated as ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates, of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class M-6 Certificates.

       The Class M-6 Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Accounts and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

       This certificate is subordinated in right of payment to the Class A
Certificates, Class M-1 Certificates, Class M-2 Certificates, Class M-3
Certificates, Class M-4 Certificates and Class M-5 Certificates as described in
the Agreement referred to herein.

       The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Securities Administrator, the Trustee and the
rights of the Certificateholders under the Agreement at any time by the
Depositor, the Servicer, the Securities Administrator and the Trustee with the
consent of the Holders of Certificates entitled to the Voting Rights identified
in the Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

       As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Securities Administrator as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Securities
Administrator and the Certificate Registrar duly executed by, the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Certificates of the same Class in authorized denominations evidencing the
same aggregate Percentage Interest will be issued to the designated transferee
or transferees.

       The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

                                     B-6-3
<PAGE>

       The Depositor, the Servicer, the Securities Administrator, the Trustee
and the Certificate Registrar and any agent of the Depositor, the Servicer, the
Securities Administrator, the Trustee or the Certificate Registrar may treat the
Person in whose name this Certificate is registered as the owner hereof for all
purposes, and none of the Depositor, the Servicer, the Securities Administrator,
the Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

       The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Securities Administrator and required to be paid to
them pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund, and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement from the
Trust Fund of all Mortgage Loans and all property acquired in respect of such
Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Pool Balance of the Mortgage Loans at the time of purchase being
10% or less of the Cut-off Date Aggregate Principal Balance.

       The recitals contained herein shall be taken as statements of the
Depositor and neither the Trustee nor the Securities Administrator assumes any
responsibility for their correctness.

       Unless the certificate of authentication hereon has been executed by the
Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     B-6-4
<PAGE>

       IN WITNESS WHEREOF, the Securities Administrator has caused this
Certificate to be duly executed.

Dated:

                                             WELLS FARGO BANK, N.A.,
                                                 as Securities Administrator

                                             By:
                                                ----------------------------
                                                 Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                             WELLS FARGO BANK, N.A.,
                                                 as Certificate Registrar

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

Date of authentication:

                                     B-6-5
<PAGE>

                        ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>
<CAPTION>
<S>            <C>                                           <C>                          <C>
TEN COM        -  as tenants in common                       UNIF GIFT MIN ACT -          Custodian
                                                                                          ---------
                                                                                          (Cust) (Minor)
TEN ENT        -  as tenants by the entireties                                            under Uniform Gifts
                                                                                          to Minors Act
JT TEN         -  as joint tenants with right                                             ________________
                  of survivorship and not as                                                  (State)
                  tenants in common

</TABLE>

       Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

       FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) _____________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

I (we) further direct the Certificate Registrar to issue a new Certificate of a
like Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
Dated:

                                         _____________________________________
                                         Signature by or on behalf of assignor

                                         _____________________________________
                                         Signature Guaranteed

                                     B-6-6
<PAGE>

                  DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following
for purposes of distribution:

       Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________________
for the account of ______________________________, account number _____________,
or, if mailed by check, to ____________________________________________________.
Applicable statements should be mailed to ______________________________________
This information is provided by _______________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                     B-6-7
<PAGE>

                                   EXHIBIT B-7

                         [FORM OF CLASS M-7 CERTIFICATE]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A, CLASS M-1,
CLASS M-2, CLASS M-3, CLASS M-4, CLASS M-5 AND CLASS M-6 CERTIFICATES AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

THE CLASS M-7 CERTIFICATES ARE ONLY OFFERED FOR SALE, AND ARE ONLY TRANSFERABLE
TO PLAN INVESTORS IF AN EXEMPTION FROM THE PROHIBITED TRANSACTION RULES OF ERISA
AND THE CODE APPLIES.

                                      B-7-1
<PAGE>

                               ABFC 2005-WF1 TRUST
                         ABFC ASSET-BACKED CERTIFICATES
                           SERIES 2005-WF1, CLASS M-7

evidencing a beneficial ownership interest in a Trust Fund consisting primarily
of a pool of conventional fixed-rate and adjustable-rate one- to four-family
first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

<TABLE>
<CAPTION>
<S>                                                              <C>
Series 2005-WF1, Class M-7                                       Original Class Certificate Principal Balance of the
                                                                 Class M-7 Certificates as of the Closing Date:
Certificate Interest Rate:  Floating                             $11,818,000

Date of Pooling and Servicing Agreement and Cut-off Date:        Initial Certificate Principal Balance: $__
April 1, 2005
                                                                 Servicer:  Wells Fargo Bank, N.A.
First Distribution Date:  May 25, 2005
                                                                 Trustee:  Deutsche Bank National Trust Company
No.
                                                                 Securities Administrator: Wells Fargo Bank, N.A.
CUSIP:  04542B ME 9
                                                                 Closing Date: April 28, 2005
ISIN:  US04542BME91

</TABLE>

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

       This certifies that _________________ is the registered owner of a
Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class M-7 Certificates) in that certain beneficial ownership interest
evidenced by all the Class M-7 Certificates in the Trust Fund created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Asset Backed Funding Corporation (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Securities Administrator and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

       Pursuant to the terms of the Agreement, distributions will be made on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (a "Distribution Date"), commencing on the first
Distribution Date specified above, to the Person in whose name this Certificate
is registered on the Business Day immediately preceding such Distribution Date
(the "Record Date"), from funds in the Distribution Account in an amount equal
to the product of the Percentage Interest evidenced by this Certificate and the
amount required to be distributed to the Holders of Class M-7 Certificates on
such Distribution Date pursuant to the Agreement; provided, however, that if any
Class M-7 Certificate becomes a Definitive Certificate, the Record Date for such
Certificate will be the last Business Day of the month immediately preceding the
month in which the related Distribution Date occurs.

                                     B-7-2
<PAGE>

       All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Securities
Administrator by wire transfer in immediately available funds to the account of
the Person entitled thereto if such Person shall have so notified the
Certificate Registrar in writing at least five Business Days prior to the Record
Date immediately prior to such Distribution Date and is the registered owner of
Class M-7 Certificates, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Securities Administrator of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Securities Administrator for that purpose as
provided in the Agreement.

       The Certificate Interest Rate for the Class M-7 Certificates for each
Distribution Date will be the least of (i) One-Month LIBOR as of the related
LIBOR Determination Date plus the Class M-7 Certificate Margin, (ii) the Pool
Maximum Rate Cap and (iii) the Pool Cap. Interest will accrue on the Class M-7
Certificates during each Interest Accrual Period at the Certificate Interest
Rate.

       This Certificate is one of a duly authorized issue of Certificates
designated as ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates, of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class M-7 Certificates.

       The Class M-7 Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Accounts and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

       This certificate is subordinated in right of payment to the Class A
Certificates, Class M-1 Certificates, Class M-2 Certificates, Class M-3
Certificates, Class M-4 Certificates, Class M-5 Certificates and Class M-6
Certificates as described in the Agreement referred to herein.

       The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Securities Administrator, the Trustee and the
rights of the Certificateholders under the Agreement at any time by the
Depositor, the Servicer, the Securities Administrator and the Trustee with the
consent of the Holders of Certificates entitled to the Voting Rights identified
in the Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

       As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Securities Administrator as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Securities
Administrator and the Certificate Registrar duly executed by, the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Certificates of the same Class in authorized denominations evidencing the
same aggregate Percentage Interest will be issued to the designated transferee
or transferees.

       The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

                                     B-7-3
<PAGE>

       The Depositor, the Servicer, the Securities Administrator, the Trustee
and the Certificate Registrar and any agent of the Depositor, the Servicer, the
Securities Administrator, the Trustee or the Certificate Registrar may treat the
Person in whose name this Certificate is registered as the owner hereof for all
purposes, and none of the Depositor, the Servicer, the Securities Administrator,
the Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

       The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Securities Administrator and required to be paid to
them pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund, and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement from the
Trust Fund of all Mortgage Loans and all property acquired in respect of such
Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Pool Balance of the Mortgage Loans at the time of purchase being
10% or less of the Cut-off Date Aggregate Principal Balance.

       The recitals contained herein shall be taken as any responsibility for
their correctness.

       Unless the certificate of authentication hereon has been executed by the
Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     B-7-4
<PAGE>

       IN WITNESS WHEREOF, the Securities Administrator has caused this
Certificate to be duly executed.

Dated:

                                        WELLS FARGO BANK, N.A.,
                                            as Securities Administrator

                                        By:
                                           -----------------------------
                                            Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                        WELLS FARGO BANK, N.A.,
                                            as Certificate Registrar

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

Date of authentication:

                                     B-7-5
<PAGE>

                        ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>
<CAPTION>
<S>            <C>                                           <C>                          <C>
TEN COM        -  as tenants in common                       UNIF GIFT MIN ACT -          Custodian
                                                                                          ---------
                                                                                          (Cust) (Minor)
TEN ENT        -  as tenants by the entireties                                            under Uniform Gifts
                                                                                          to Minors Act
JT TEN         -  as joint tenants with right                                             ________________
                  of survivorship and not as                                                  (State)
                  tenants in common

</TABLE>

       Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

       FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) _____________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

       I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________

Dated:

                                        _____________________________________
                                        Signature by or on behalf of assignor

                                        _____________________________________
                                        Signature Guaranteed

                                     B-7-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

       The assignee should include the following for purposes of distribution:

       Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
for the account of ____________________________, account number _______________,
or, if mailed by check, to  ___________________________________________________.
Applicable statements should be mailed to ______________________________________
This information is provided by _______________________________________________,
the assignee named above, or ________________________________________, as its
agent.

                                     B-7-7
<PAGE>

                                   EXHIBIT B-8

                         [FORM OF CLASS M-8 CERTIFICATE]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A, CLASS M-1,
CLASS M-2, CLASS M-3, CLASS M-4, CLASS M-5, CLASS M-6 AND CLASS M-7 CERTIFICATES
AS DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

THE CLASS M-8 CERTIFICATES ARE ONLY OFFERED FOR SALE, AND ARE ONLY TRANSFERABLE
TO PLAN INVESTORS IF AN EXEMPTION FROM THE PROHIBITED TRANSACTION RULES OF ERISA
AND THE CODE APPLIES.

                                     B-8-1
<PAGE>

                               ABFC 2005-WF1 TRUST
                         ABFC ASSET-BACKED CERTIFICATES
                           SERIES 2005-WF1, CLASS M-8

evidencing a beneficial ownership interest in a Trust Fund consisting primarily
of a pool of conventional fixed-rate and adjustable-rate one- to four-family
first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

<TABLE>
<CAPTION>
<S>                                                              <C>
Series 2005-WF1, Class M-8                                       Original Class Certificate Principal Balance of the
                                                                 Class M-8 Certificates as of the Closing Date:
Certificate Interest Rate:  Floating                             $10,044,000

Date of Pooling and Servicing Agreement and Cut-off Date:        Initial Certificate Principal Balance: $__
April 1, 2005
                                                                 Servicer:  Wells Fargo Bank, N.A.
First Distribution Date:  May 25, 2005
                                                                 Trustee:  Deutsche Bank National Trust Company
No.
                                                                 Securities Administrator: Wells Fargo Bank, N.A.
CUSIP:  04542B MF 6
                                                                 Closing Date: April 28, 2005
ISIN:  US04542BMF66

</TABLE>

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

       This certifies that _________________ is the registered owner of a
Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class M-8 Certificates) in that certain beneficial ownership interest
evidenced by all the Class M-8 Certificates in the Trust Fund created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Asset Backed Funding Corporation (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Securities Administrator and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

       Pursuant to the terms of the Agreement, distributions will be made on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (a "Distribution Date"), commencing on the first
Distribution Date specified above, to the Person in whose name this Certificate
is registered on the Business Day immediately preceding such Distribution Date
(the "Record Date"), from funds in the Distribution Account in an amount equal
to the product of the Percentage Interest evidenced by this Certificate and the
amount required to be distributed to the Holders of Class M-8 Certificates on
such Distribution Date pursuant to the Agreement; provided, however, that if any
Class M-8 Certificate becomes a Definitive Certificate, the Record Date for such
Certificate will be the last Business Day of the month immediately preceding the
month in which the related Distribution Date occurs.

                                     B-8-2
<PAGE>

       All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Securities
Administrator by wire transfer in immediately available funds to the account of
the Person entitled thereto if such Person shall have so notified the
Certificate Registrar in writing at least five Business Days prior to the Record
Date immediately prior to such Distribution Date and is the registered owner of
Class M-8 Certificates, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Securities Administrator of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Securities Administrator for that purpose as
provided in the Agreement.

       The Certificate Interest Rate for the Class M-8 Certificates for each
Distribution Date will be the least of (i) One-Month LIBOR as of the related
LIBOR Determination Date plus the Class M-8 Certificate Margin, (ii) the Pool
Maximum Rate Cap and (iii) the Pool Cap. Interest will accrue on the Class M-8
Certificates during each Interest Accrual Period at the Certificate Interest
Rate.

       This Certificate is one of a duly authorized issue of Certificates
designated as ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates, of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class M-8 Certificates.

       The Class M-8 Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Accounts and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

       This certificate is subordinated in right of payment to the Class A
Certificates, Class M-1 Certificates, Class M-2 Certificates, Class M-3
Certificates, Class M-4 Certificates, Class M-5 Certificates, Class M-6
Certificates and Class M-7 Certificates as described in the Agreement referred
to herein.

       The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Securities Administrator, the Trustee and the
rights of the Certificateholders under the Agreement at any time by the
Depositor, the Servicer, the Securities Administrator and the Trustee with the
consent of the Holders of Certificates entitled to the Voting Rights identified
in the Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

       As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Securities Administrator as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Securities
Administrator and the Certificate Registrar duly executed by, the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Certificates of the same Class in authorized denominations evidencing the
same aggregate Percentage Interest will be issued to the designated transferee
or transferees.

       The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

                                     B-8-3
<PAGE>

       The Depositor, the Servicer, the Securities Administrator, the Trustee
and the Certificate Registrar and any agent of the Depositor, the Servicer, the
Securities Administrator, the Trustee or the Certificate Registrar may treat the
Person in whose name this Certificate is registered as the owner hereof for all
purposes, and none of the Depositor, the Servicer, the Securities Administrator,
the Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

       The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Securities Administrator and required to be paid to
them pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund, and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement from the
Trust Fund of all Mortgage Loans and all property acquired in respect of such
Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Pool Balance of the Mortgage Loans at the time of purchase being
10% or less of the Cut-off Date Aggregate Principal Balance.

       The recitals contained herein shall be taken as statements of the
Depositor and neither the Trustee nor the Securities Administrator assumes any
responsibility for their correctness.

       Unless the certificate of authentication hereon has been executed by the
Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     B-8-4
<PAGE>

       IN WITNESS WHEREOF, the Securities Administrator has caused this
Certificate to be duly executed.

Dated:

                                             WELLS FARGO BANK, N.A.,
                                                 as Securities Administrator

                                             By:
                                                ----------------------------
                                                 Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                             WELLS FARGO BANK, N.A.,
                                                 as Certificate Registrar

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

Date of authentication:

                                     B-8-5
<PAGE>

                        ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>
<CAPTION>
<S>            <C>                                           <C>                          <C>
TEN COM        -  as tenants in common                       UNIF GIFT MIN ACT -          Custodian
                                                                                          ---------
                                                                                          (Cust) (Minor)
TEN ENT        -  as tenants by the entireties                                            under Uniform Gifts
                                                                                          to Minors Act
JT TEN         -  as joint tenants with right                                             ________________
                  of survivorship and not as                                                 (State)
                  tenants in common
</TABLE>

       Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

       FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) _____________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

       I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________

Dated:

                                        _____________________________________
                                        Signature by or on behalf of assignor

                                        _____________________________________
                                        Signature Guaranteed

                                     B-8-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

       The assignee should include the following for purposes of distribution:

       Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
for the account of ____________________________, account number _______________,
or, if mailed by check, to  ___________________________________________________.
Applicable statements should be mailed to ______________________________________
This information is provided by _______________________________________________,
the assignee named above, or ________________________________________, as its
agent.

                                     B-8-7
<PAGE>

                                   EXHIBIT B-9

                         [FORM OF CLASS M-9 CERTIFICATE]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A, CLASS M-1,
CLASS M-2, CLASS M-3, CLASS M-4, CLASS M-5, CLASS M-6, CLASS M-7 AND CLASS M-8
CERTIFICATES AS DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO
HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

THE CLASS M-9 CERTIFICATES ARE ONLY OFFERED FOR SALE, AND ARE ONLY TRANSFERABLE
TO PLAN INVESTORS IF AN EXEMPTION FROM THE PROHIBITED TRANSACTION RULES OF ERISA
AND THE CODE APPLIES.

                                     B-9-1
<PAGE>

                     ABFC 2005-WF1 TRUST
               ABFC ASSET-BACKED CERTIFICATES
                 SERIES 2005-WF1, CLASS M-9

evidencing a beneficial ownership interest in a Trust Fund consisting primarily
of a pool of conventional fixed-rate and adjustable-rate one- to four-family
first lien mortgage loans formed and sold by

              ASSET BACKED FUNDING CORPORATION

<TABLE>
<CAPTION>
<S>                                                              <C>
Series 2005-WF1, Class M-9                                       Original Class Certificate Principal Balance of the
                                                                 Class M-9 Certificates as of the Closing Date:
Certificate Interest Rate:  Floating                             $11,817,000

Date of Pooling and Servicing Agreement and Cut-off Date:        Initial Certificate Principal Balance: $__
April 1, 2005
                                                                 Servicer:  Wells Fargo Bank, N.A.
First Distribution Date:  May 25, 2005
                                                                 Trustee:  Deutsche Bank National Trust Company
No.
                                                                 Securities Administrator: Wells Fargo Bank, N.A.
CUSIP:  04542B MG 4
                                                                 Closing Date: April 28, 2005
ISIN:  US04542BMG40

</TABLE>

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

       This certifies that _________________ is the registered owner of a
Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class M-9 Certificates) in that certain beneficial ownership interest
evidenced by all the Class M-9 Certificates in the Trust Fund created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Asset Backed Funding Corporation (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Securities Administrator and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

       Pursuant to the terms of the Agreement, distributions will be made on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (a "Distribution Date"), commencing on the first
Distribution Date specified above, to the Person in whose name this Certificate
is registered on the Business Day immediately preceding such Distribution Date
(the "Record Date"), from funds in the Distribution Account in an amount equal
to the product of the Percentage Interest evidenced by this Certificate and the
amount required to be distributed to the Holders of Class M-9 Certificates on
such Distribution Date pursuant to the Agreement; provided, however, that if any
Class M-9 Certificate becomes a Definitive Certificate, the Record Date for such
Certificate will be the last Business Day of the month immediately preceding the
month in which the related Distribution Date occurs.

                                     B-9-2
<PAGE>

       All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Securities
Administrator by wire transfer in immediately available funds to the account of
the Person entitled thereto if such Person shall have so notified the
Certificate Registrar in writing at least five Business Days prior to the Record
Date immediately prior to such Distribution Date and is the registered owner of
Class M-9 Certificates, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Securities Administrator of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Securities Administrator for that purpose as
provided in the Agreement.

       The Certificate Interest Rate for the Class M-9 Certificates for each
Distribution Date will be the least of (i) One-Month LIBOR as of the related
LIBOR Determination Date plus the Class M-9 Certificate Margin, (ii) the Pool
Maximum Rate Cap and (iii) the Pool Cap. Interest will accrue on the Class M-9
Certificates during each Interest Accrual Period at the Certificate Interest
Rate.

       This Certificate is one of a duly authorized issue of Certificates
designated as ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates, of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class M-9 Certificates.

       The Class M-9 Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Accounts and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

       This certificate is subordinated in right of payment to the Class A
Certificates, Class M-1 Certificates, Class M-2 Certificates, Class M-3
Certificates, Class M-4 Certificates, Class M-5 Certificates, Class M-6
Certificates, Class M-7 Certificates and Class M-8 Certificates as described in
the Agreement referred to herein.

       The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Securities Administrator, the Trustee and the
rights of the Certificateholders under the Agreement at any time by the
Depositor, the Servicer, the Securities Administrator and the Trustee with the
consent of the Holders of Certificates entitled to the Voting Rights identified
in the Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

       As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Securities Administrator as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Securities
Administrator and the Certificate Registrar duly executed by, the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Certificates of the same Class in authorized denominations evidencing the
same aggregate Percentage Interest will be issued to the designated transferee
or transferees.

       The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

                                     B-9-3
<PAGE>

       The Depositor, the Servicer, the Securities Administrator, the Trustee
and the Certificate Registrar and any agent of the Depositor, the Servicer, the
Securities Administrator, the Trustee or the Certificate Registrar may treat the
Person in whose name this Certificate is registered as the owner hereof for all
purposes, and none of the Depositor, the Servicer, the Securities Administrator,
the Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

       The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Securities Administrator and required to be paid to
them pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund, and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement from the
Trust Fund of all Mortgage Loans and all property acquired in respect of such
Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Pool Balance of the Mortgage Loans at the time of purchase being
10% or less of the Cut-off Date Aggregate Principal Balance.

                  The recitals contained herein shall be
       taken as statements of the Depositor and neither the Trustee
not the Securities Administrator assumes any responsibility
for their correctness.

       Unless the certificate of authentication hereon has been executed by the
Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     B-9-4
<PAGE>

       IN WITNESS WHEREOF, the Securities Administrator has caused this
Certificate to be duly executed.

Dated:

                                             WELLS FARGO BANK, N.A.,
                                                 as Securities Administrator

                                             By:
                                                ----------------------------
                                                 Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                             WELLS FARGO BANK, N.A.,
                                                 as Certificate Registrar

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

Date of authentication:

                                     B-9-5
<PAGE>

                        ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>
<CAPTION>
<S>            <C>                                           <C>                          <C>
TEN COM        -  as tenants in common                       UNIF GIFT MIN ACT -          Custodian
                                                                                          ---------
                                                                                          (Cust) (Minor)
TEN ENT        -  as tenants by the entireties                                            under Uniform Gifts
                                                                                          to Minors Act
JT TEN         -  as joint tenants with right                                             ________________
                  of survivorship and not as                                                 (State)
                  tenants in common
</TABLE>

       Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

       FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) _____________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

       I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________

Dated:

                                        _____________________________________
                                        Signature by or on behalf of assignor

                                        _____________________________________
                                        Signature Guaranteed

                                     B-9-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

       The assignee should include the following for purposes of distribution:

       Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
for the account of ____________________________, account number _______________,
or, if mailed by check, to  ___________________________________________________.
Applicable statements should be mailed to ______________________________________
This information is provided by _______________________________________________,
the assignee named above, or ________________________________________, as its
agent.

                                     B-9-7
<PAGE>

                                  EXHIBIT B-10

                        [FORM OF CLASS M-10 CERTIFICATE]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A, CLASS M-1,
CLASS M-2, CLASS M-3, CLASS M-4, CLASS M-5, CLASS M-6, CLASS M-7, CLASS M-8 AND
CLASS M-9 CERTIFICATES AS DESCRIBED IN THE POOLING AND SERVICING AGREEMENT
REFERRED TO HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

THE CLASS M-10 CERTIFICATES ARE ONLY OFFERED FOR SALE, AND ARE ONLY TRANSFERABLE
TO PLAN INVESTORS IF AN EXEMPTION FROM THE PROHIBITED TRANSACTION RULES OF ERISA
AND THE CODE APPLIES.

                                     B-10-1
<PAGE>

                               ABFC 2005-WF1 TRUST
                         ABFC ASSET-BACKED CERTIFICATES
                           SERIES 2005-WF1, CLASS M-10

evidencing a beneficial ownership interest in a Trust Fund consisting primarily
of a pool of conventional fixed-rate and adjustable-rate one- to four-family
first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

<TABLE>
<CAPTION>
<S>                                                              <C>
Series 2005-WF1, Class M-10                                      Original Class Certificate Principal Balance of the
                                                                 Class M-10 Certificates as of the Closing Date:
Certificate Interest Rate:  Floating                             $8,863,000

Date of Pooling and Servicing Agreement and Cut-off Date:        Initial Certificate Principal Balance: $__
April 1, 2005
                                                                 Servicer:  Wells Fargo Bank, N.A.
First Distribution Date:  May 25, 2005
                                                                 Trustee:  Deutsche Bank National Trust Company
No.
                                                                 Securities Administrator: Wells Fargo Bank, N.A.
CUSIP:  04542B MH 2
                                                                 Closing Date: April 28, 2005
ISIN:  US04542BMH23

</TABLE>

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

       This certifies that _________________ is the registered owner of a
Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class M-10 Certificates) in that certain beneficial ownership interest
evidenced by all the Class M-10 Certificates in the Trust Fund created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Asset Backed Funding Corporation (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Securities Administrator and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

       Pursuant to the terms of the Agreement, distributions will be made on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (a "Distribution Date"), commencing on the first
Distribution Date specified above, to the Person in whose name this Certificate
is registered on the Business Day immediately preceding such Distribution Date
(the "Record Date"), from funds in the Distribution Account in an amount equal
to the product of the Percentage Interest evidenced by this Certificate and the
amount required to be distributed to the Holders of Class M-10 Certificates on
such Distribution Date pursuant to the Agreement; provided, however, that if any
Class M-10 Certificate becomes a Definitive Certificate, the Record Date for
such Certificate will be the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs.

                                     B-10-2
<PAGE>

       All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Securities
Administrator by wire transfer in immediately available funds to the account of
the Person entitled thereto if such Person shall have so notified the
Certificate Registrar in writing at least five Business Days prior to the Record
Date immediately prior to such Distribution Date and is the registered owner of
Class M-10 Certificates, or by check mailed by first class mail to the address
of the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Securities Administrator of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Securities Administrator for that purpose as
provided in the Agreement.

       The Certificate Interest Rate for the Class M-10 Certificates for each
Distribution Date will be the least of (i) One-Month LIBOR as of the related
LIBOR Determination Date plus the Class M-10 Certificate Margin, (ii) the Pool
Maximum Rate Cap and (iii) the Pool Cap. Interest will accrue on the Class M-10
Certificates during each Interest Accrual Period at the Certificate Interest
Rate.

       This Certificate is one of a duly authorized issue of Certificates
designated as ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates, of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class M-10 Certificates.

       The Class M-10 Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Accounts and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

       This certificate is subordinated in right of payment to the Class A
Certificates, Class M-1 Certificates, Class M-2 Certificates, Class M-3
Certificates, Class M-4 Certificates, Class M-5 Certificates, Class M-6
Certificates, Class M-7 Certificates, Class M-8 Certificates and Class M-9
Certificates as described in the Agreement referred to herein.

       The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Securities Administrator and the Trustee and the
rights of the Certificateholders under the Agreement at any time by the
Depositor, the Servicer, the Securities Administrator and the Trustee with the
consent of the Holders of Certificates entitled to the Voting Rights identified
in the Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

       As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Securities Administrator as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Securities
Administrator and the Certificate Registrar duly executed by, the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Certificates of the same Class in authorized denominations evidencing the
same aggregate Percentage Interest will be issued to the designated transferee
or transferees.

       The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

                                     B-10-3
<PAGE>

       The Depositor, the Servicer, the Securities Administrator, the Trustee
and the Certificate Registrar and any agent of the Depositor, the Servicer, the
Securities Administrator, the Trustee or the Certificate Registrar may treat the
Person in whose name this Certificate is registered as the owner hereof for all
purposes, and none of the Depositor, the Servicer, the Securities Administrator,
the Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

       The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Securities Administrator and required to be paid to
them pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund, and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement from the
Trust Fund of all Mortgage Loans and all property acquired in respect of such
Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Pool Balance of the Mortgage Loans at the time of purchase being
10% or less of the Cut-off Date Aggregate Principal Balance.

       The recitals contained herein shall be taken as statements of the
Depositor and neither the Trustee nor the Securities Administrator assumes any
responsibility for their correctness.

       Unless the certificate of authentication hereon has been executed by the
Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     B-10-4
<PAGE>

       IN WITNESS WHEREOF, the Securities Administrator has caused this
Certificate to be duly executed.

Dated:

                                             WELLS FARGO BANK, N.A.,
                                                 as Securities Administrator

                                             By:
                                                ----------------------------
                                                 Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                             WELLS FARGO BANK, N.A.,
                                                 as Certificate Registrar

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

Date of authentication:

                                     B-10-5
<PAGE>

                        ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>
<CAPTION>
<S>            <C>                                           <C>                          <C>
TEN COM        -  as tenants in common                       UNIF GIFT MIN ACT -          Custodian
                                                                                          ---------
                                                                                          (Cust) (Minor)
TEN ENT        -  as tenants by the entireties                                            under Uniform Gifts
                                                                                          to Minors Act
JT TEN         -  as joint tenants with right                                             ________________
                  of survivorship and not as                                                  (State)
                  tenants in common
</TABLE>

       Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

       FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) _____________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

       I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________

Dated:

                                        _____________________________________
                                        Signature by or on behalf of assignor

                                        _____________________________________
                                        Signature Guaranteed

                                     B-10-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

       The assignee should include the following for purposes of distribution:

       Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
for the account of ____________________________, account number _______________,
or, if mailed by check, to  ___________________________________________________.
Applicable statements should be mailed to ______________________________________
This information is provided by _______________________________________________,
the assignee named above, or ________________________________________, as its
agent.

                                     B-10-7
<PAGE>

                                  EXHIBIT B-11

                         [FORM OF CLASS B-1 CERTIFICATE]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A, CLASS M-1,
CLASS M-2, CLASS M-3, CLASS M-4, CLASS M-5, CLASS M-6, CLASS M-7, CLASS M-8,
CLASS M-9 AND CLASS M-10 CERTIFICATES AS DESCRIBED IN THE POOLING AND SERVICING
AGREEMENT REFERRED TO HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

THIS CLASS B-1 CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES LAWS OF
ANY STATE. ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE WITHOUT
SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION THAT DOES
NOT REQUIRE SUCH REGISTRATION OR QUALIFICATION AND IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 5.02 OF THE POOLING AND SERVICING AGREEMENT REFERRED TO
HEREIN.

THE CLASS B-1 CERTIFICATES ARE ONLY OFFERED FOR SALE, AND ARE ONLY TRANSFERABLE
TO PLAN INVESTORS IF AN EXEMPTION FROM THE PROHIBITED TRANSACTION RULES OF ERISA
AND THE CODE APPLIES. EACH PURCHASER OF A CLASS B-1 CERTIFICATE, OTHER THAN THE
INITIAL PURCHASER OF THE CLASS B-1 CERTIFICATE, BY VIRTUE OF ITS PURCHASE OF
SUCH CERTIFICATE, WILL BE DEEMED TO HAVE REPRESENTED EITHER THAT (A) IT IS NOT,
AND IS NOT ACTING ON BEHALF OF, ANY PLAN OR USING THE ASSETS OF ANY PLAN TO
EFFECT SUCH PURCHASE OR (B) IF IT IS AN INSURANCE COMPANY, THAT THE SOURCE OF
FUNDS USED TO PURCHASE SUCH CERTIFICATE IS AN "INSURANCE COMPANY GENERAL
ACCOUNT" (AS SUCH TERM IS DEFINED IN SECTION V(E) OF PROHIBITED TRANSACTION
CLASS EXEMPTION 95-60 ("PTCE 95-60"). 60 FED. REG. 35925 (JULY 12, 1995)), THERE
IS NO PLAN WITH RESPECT TO WHICH THE AMOUNT OF SUCH GENERAL ACCOUNT'S RESERVES
AND LIABILITIES FOR THE CONTRACT(S) HELD BY OR ON BEHALF OF SUCH PLAN AND ALL
OTHER PLANS MAINTAINED BY THE SAME EMPLOYER (OR AFFILIATE THEREOF AS DEFINED IN
SECTION V(A)(1) OF PTCE 95-60) OR BY THE SAME EMPLOYEE ORGANIZATION EXCEEDS 10%
OF THE TOTAL OF ALL RESERVES AND LIABILITIES OF SUCH GENERAL ACCOUNT (AS SUCH
AMOUNTS ARE DETERMINED UNDER SECTION I(A) OF PTCE 95-60) AT THE DATE OF
ACQUISITION AND ALL PLANS THAT HAVE AN INTEREST IN SUCH GENERAL ACCOUNT ARE
PLANS TO WHICH PTCE 95-60 APPLIES.

                                     B-11-1
<PAGE>

                               ABFC 2005-WF1 TRUST
                         ABFC ASSET-BACKED CERTIFICATES
                           SERIES 2005-WF1, CLASS B-1

evidencing a beneficial ownership interest in a Trust Fund consisting primarily
of a pool of conventional fixed-rate and adjustable-rate one- to four-family
first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

<TABLE>
<CAPTION>
<S>                                                              <C>
Series 2005-WF1, Class B-1                                       Original Class Certificate Principal Balance of the
                                                                 Class B-1 Certificates as of the Closing Date:
Certificate Interest Rate:  Floating                             $4,727,000

Date of Pooling and Servicing Agreement and Cut-off Date:        Initial Certificate Principal Balance: $__
April 1, 2005
                                                                 Servicer:  Wells Fargo Bank, N.A.
First Distribution Date:  May 25, 2005
                                                                 Trustee:  Deutsche Bank National Trust Company
No.
                                                                 Securities Administrator: Wells Fargo Bank, N.A.
CUSIP:  04542B MJ 8
                                                                 Closing Date: April 28, 2005
ISIN:  US04542BMJ88

</TABLE>

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

       This certifies that _________________ is the registered owner of a
Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class B-1 Certificates) in that certain beneficial ownership interest
evidenced by all the Class B-1 Certificates in the Trust Fund created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Asset Backed Funding Corporation (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Securities Administrator and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

       Pursuant to the terms of the Agreement, distributions will be made on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (a "Distribution Date"), commencing on the first
Distribution Date specified above, to the Person in whose name this Certificate
is registered on the Business Day immediately preceding such Distribution Date
(the "Record Date"), from funds in the Distribution Account in an amount equal
to the product of the Percentage Interest evidenced by this Certificate and the
amount required to be distributed to the Holders of Class B-1 Certificates on
such Distribution Date pursuant to the Agreement; provided, however, that if any
Class B-1 Certificate becomes a Definitive Certificate, the Record Date for such
Certificate will be the last Business Day of the month immediately preceding the
month in which the related Distribution Date occurs.

                                     B-11-2
<PAGE>

       All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Securities
Administrator by wire transfer in immediately available funds to the account of
the Person entitled thereto if such Person shall have so notified the
Certificate Registrar in writing at least five Business Days prior to the Record
Date immediately prior to such Distribution Date and is the registered owner of
Class B-1 Certificates, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Securities Administrator of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Securities Administrator for that purpose as
provided in the Agreement.

       The Certificate Interest Rate for the Class B-1 Certificates for each
Distribution Date will be the least of (i) One-Month LIBOR as of the related
LIBOR Determination Date plus the Class B-1 Certificate Margin, (ii) the Pool
Maximum Rate Cap and (iii) the Pool Cap. Interest will accrue on the Class B-1
Certificates during each Interest Accrual Period at the Certificate Interest
Rate.

       This Certificate is one of a duly authorized issue of Certificates
designated as ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates, of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class B-1 Certificates.

       The Class B-1 Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Accounts and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

       This certificate is subordinated in right of payment to the Class A
Certificates, Class M-1 Certificates, Class M-2 Certificates, Class M-3
Certificates, Class M-4 Certificates, Class M-5 Certificates, Class M-6
Certificates, Class M-7 Certificates, Class M-8 Certificates, Class M-9
Certificates and Class M-10 Certificates as described in the Agreement referred
to herein.

       The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Securities Administrator, the Trustee and the
rights of the Certificateholders under the Agreement at any time by the
Depositor, the Servicer, the Securities Administrator and the Trustee with the
consent of the Holders of Certificates entitled to the Voting Rights identified
in the Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

       As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Securities Administrator as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Securities
Administrator and the Certificate Registrar duly executed by, the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Certificates of the same Class in authorized denominations evidencing the
same aggregate Percentage Interest will be issued to the designated transferee
or transferees.

       The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                                     B-11-3
<PAGE>

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

       No transfer of this Certificate shall be made unless that transfer is
made pursuant to an effective registration statement under the 1933 Act and
effective registration or qualification under applicable state securities laws,
or is made in a transaction that does not require such registration or
qualification. In the event that a transfer is to be made without registration
or qualification, the Securities Administrator shall require, in order to assure
compliance with such laws, either (i) in the case of a transfer made in reliance
on Rule 144A under the 1933 Act, that the proposed transferee delivers to the
Securities Administrator a completed investment letter in substantially the form
attached to the Agreement as Exhibit J, or (ii) in the case of any other
transfer, that the Certificateholder desiring to effect the transfer and such
Certificateholder's prospective transferee each execute a representation letter
in substantially the forms of Exhibit L and Exhibit J attached to the Agreement,
respectively, certifying to the Depositor and the Securities Administrator the
facts surrounding the transfer as described in Section 5.02 of the Agreement, or
as provided in the Agreement, the Depositor and the Securities Administrator
shall require an Opinion of Counsel satisfactory to them that such transfer may
be made without such registration or qualification, which Opinion of Counsel
shall not be an expense of the Depositor, the Trustee, the Securities
Administrator or the Certificate Registrar, in their respective capacities as
such. None of the Depositor, the Securities Administrator, the Certificate
Registrar nor the Trustee is obligated to register or qualify the Class of
Certificates specified on the face hereof under the 1933 Act or any other
securities law or to take any action not otherwise required under the Agreement
to permit the transfer of such Certificates without registration or
qualification. Any such Certificateholder desiring to effect such transfer
shall, and does hereby agree to, indemnify the Trustee, the Depositor, the
Securities Administrator, the Certificate Registrar and the Servicer against any
liability that may result if the transfer is not so exempt or is not made in
accordance with such federal and state laws.

       The Depositor, the Servicer, the Securities Administrator, the Trustee
and the Certificate Registrar and any agent of the Depositor, the Servicer, the
Securities Administrator, the Trustee or the Certificate Registrar may treat the
Person in whose name this Certificate is registered as the owner hereof for all
purposes, and none of the Depositor, the Servicer, the Securities Administrator,
the Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

       The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Securities Administrator and required to be paid to
them pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund, and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement from the
Trust Fund of all Mortgage Loans and all property acquired in respect of such
Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Pool Balance of the Mortgage Loans at the time of purchase being
10% or less of the Cut-off Date Aggregate Principal Balance.

       The recitals contained herein shall be taken as statements of the
Depositor and neither the Trustee nor the Securities Administrator assumes any
responsibility for their correctness.

       Unless the certificate of authentication hereon has been executed by the
Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     B-11-4
<PAGE>

       IN WITNESS WHEREOF, the Securities Administrator has caused this
Certificate to be duly executed.

Dated:

                                             WELLS FARGO BANK, N.A.,
                                                 as Securities Administrator

                                             By:
                                                ----------------------------
                                                 Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                             WELLS FARGO BANK, N.A.,
                                                 as Certificate Registrar

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

Date of authentication:

                                     B-11-5
<PAGE>

                        ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>
<CAPTION>
<S>            <C>                                           <C>                          <C>
TEN COM        -  as tenants in common                       UNIF GIFT MIN ACT -          Custodian
                                                                                          ---------
                                                                                          (Cust) (Minor)
TEN ENT        -  as tenants by the entireties                                            under Uniform Gifts
                                                                                          to Minors Act
JT TEN         -  as joint tenants with right                                             ________________
                  of survivorship and not as                                                  (State)
                  tenants in common
</TABLE>

       Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

       FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) _____________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

       I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________

Dated:

                                        _____________________________________
                                        Signature by or on behalf of assignor

                                        _____________________________________
                                        Signature Guaranteed

                                     B-11-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

       The assignee should include the following for purposes of distribution:

       Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
for the account of ____________________________, account number _______________,
or, if mailed by check, to  ___________________________________________________.
Applicable statements should be mailed to ______________________________________
This information is provided by _______________________________________________,
the assignee named above, or ________________________________________, as its
agent.

                                     B-11-7
<PAGE>

                                  EXHIBIT B-12

                         [FORM OF CLASS B-2 CERTIFICATE]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A, CLASS M-1,
CLASS M-2, CLASS M-3, CLASS M-4, CLASS M-5, CLASS M-6, CLASS M-7, CLASS M-8,
CLASS M-9, CLASS M-10 AND CLASS B-1 CERTIFICATES AS DESCRIBED IN THE POOLING AND
SERVICING AGREEMENT REFERRED TO HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

THIS CLASS B-2 CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES LAWS OF
ANY STATE. ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE WITHOUT
SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION THAT DOES
NOT REQUIRE SUCH REGISTRATION OR QUALIFICATION AND IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 5.02 OF THE POOLING AND SERVICING AGREEMENT REFERRED TO
HEREIN.

THE CLASS B-2 CERTIFICATES ARE ONLY OFFERED FOR SALE, AND ARE ONLY TRANSFERABLE
TO PLAN INVESTORS IF AN EXEMPTION FROM THE PROHIBITED TRANSACTION RULES OF ERISA
AND THE CODE APPLIES. EACH PURCHASER OF A CLASS B-2 CERTIFICATE, OTHER THAN THE
INITIAL PURCHASER OF THE CLASS B-2 CERTIFICATE, BY VIRTUE OF ITS PURCHASE OF
SUCH CERTIFICATE, WILL BE DEEMED TO HAVE REPRESENTED EITHER THAT (A) IT IS NOT,
AND IS NOT ACTING ON BEHALF OF, ANY PLAN OR USING THE ASSETS OF ANY PLAN TO
EFFECT SUCH PURCHASE OR (B) IF IT IS AN INSURANCE COMPANY, THAT THE SOURCE OF
FUNDS USED TO PURCHASE SUCH CERTIFICATE IS AN "INSURANCE COMPANY GENERAL
ACCOUNT" (AS SUCH TERM IS DEFINED IN SECTION V(E) OF PROHIBITED TRANSACTION
CLASS EXEMPTION 95-60 ("PTCE 95-60"). 60 FED. REG. 35925 (JULY 12, 1995)), THERE
IS NO PLAN WITH RESPECT TO WHICH THE AMOUNT OF SUCH GENERAL ACCOUNT'S RESERVES
AND LIABILITIES FOR THE CONTRACT(S) HELD BY OR ON BEHALF OF SUCH PLAN AND ALL
OTHER PLANS MAINTAINED BY THE SAME EMPLOYER (OR AFFILIATE THEREOF AS DEFINED IN
SECTION V(A)(1) OF PTCE 95-60) OR BY THE SAME EMPLOYEE ORGANIZATION EXCEEDS 10%
OF THE TOTAL OF ALL RESERVES AND LIABILITIES OF SUCH GENERAL ACCOUNT (AS SUCH
AMOUNTS ARE DETERMINED UNDER SECTION I(A) OF PTCE 95-60) AT THE DATE OF
ACQUISITION AND ALL PLANS THAT HAVE AN INTEREST IN SUCH GENERAL ACCOUNT ARE
PLANS TO WHICH PTCE 95-60 APPLIES.

                                     B-12-1
<PAGE>

                               ABFC 2005-WF1 TRUST
                         ABFC ASSET-BACKED CERTIFICATES
                           SERIES 2005-WF1, CLASS B-2

evidencing a beneficial ownership interest in a Trust Fund consisting primarily
of a pool of conventional fixed-rate and adjustable-rate one- to four-family
first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

<TABLE>
<CAPTION>
<S>                                                              <C>
Series 2005-WF1, Class B-2                                       Original Class Certificate Principal Balance of the
                                                                 Class B-2 Certificates as of the Closing Date:
Certificate Interest Rate:  Floating                             $5,318,000

Date of Pooling and Servicing Agreement and Cut-off Date:        Initial Certificate Principal Balance: $__
April 1, 2005
                                                                 Servicer:  Wells Fargo Bank, N.A.
First Distribution Date:  May 25, 2005
                                                                 Trustee:  Deutsche Bank National Trust Company
No.
                                                                 Securities Administrator: Wells Fargo Bank, N.A.
CUSIP:  04542B MK 5
                                                                 Closing Date: April 28, 2005
ISIN:  US04542BMK51

</TABLE>

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

       This certifies that _________________ is the registered owner of a
Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class B-2 Certificates) in that certain beneficial ownership interest
evidenced by all the Class B-2 Certificates in the Trust Fund created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Asset Backed Funding Corporation (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Securities Administrator and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

       Pursuant to the terms of the Agreement, distributions will be made on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (a "Distribution Date"), commencing on the first
Distribution Date specified above, to the Person in whose name this Certificate
is registered on the Business Day immediately preceding such Distribution Date
(the "Record Date"), from funds in the Distribution Account in an amount equal
to the product of the Percentage Interest evidenced by this Certificate and the
amount required to be distributed to the Holders of Class B-2 Certificates on
such Distribution Date pursuant to the Agreement; provided, however, that if any
Class B-2 Certificate becomes a Definitive Certificate, the Record Date for such
Certificate will be the last Business Day of the month immediately preceding the
month in which the related Distribution Date occurs.

                                     B-12-2
<PAGE>

       All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Securities
Administrator by wire transfer in immediately available funds to the account of
the Person entitled thereto if such Person shall have so notified the
Certificate Registrar in writing at least five Business Days prior to the Record
Date immediately prior to such Distribution Date and is the registered owner of
Class B-2 Certificates, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Securities Administrator of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Securities Administrator for that purpose as
provided in the Agreement.

       The Certificate Interest Rate for the Class B-2 Certificates for each
Distribution Date will be the least of (i) One-Month LIBOR as of the related
LIBOR Determination Date plus the Class B-2 Certificate Margin, (ii) the Pool
Maximum Rate Cap and (iii) the Pool Cap. Interest will accrue on the Class B-2
Certificates during each Interest Accrual Period at the Certificate Interest
Rate.

       This Certificate is one of a duly authorized issue of Certificates
designated as ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates, of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class B-2 Certificates.

       The Class B-2 Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Accounts and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

       This certificate is subordinated in right of payment to the Class A
Certificates, Class M-1 Certificates, Class M-2 Certificates, Class M-3
Certificates, Class M-4 Certificates, Class M-5 Certificates, Class M-6
Certificates, Class M-7 Certificates, Class M-8 Certificates, Class M-9
Certificates, Class M-10 and Class B-1 Certificates as described in the
Agreement referred to herein.

       The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Securities Administrator, the Trustee and the
rights of the Certificateholders under the Agreement at any time by the
Depositor, the Servicer, the Securities Administrator and the Trustee with the
consent of the Holders of Certificates entitled to the Voting Rights identified
in the Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

       As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Securities Administrator as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Securities
Administrator and the Certificate Registrar duly executed by, the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Certificates of the same Class in authorized denominations evidencing the
same aggregate Percentage Interest will be issued to the designated transferee
or transferees.

       The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                                     B-12-3
<PAGE>

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

       No transfer of this Certificate shall be made unless that transfer is
made pursuant to an effective registration statement under the 1933 Act and
effective registration or qualification under applicable state securities laws,
or is made in a transaction that does not require such registration or
qualification. In the event that a transfer is to be made without registration
or qualification, the Securities Administrator shall require, in order to assure
compliance with such laws, either (i) in the case of a transfer made in reliance
on Rule 144A under the 1933 Act, that the proposed transferee delivers to the
Securities Administrator a completed investment letter in substantially the form
attached to the Agreement as Exhibit J, or (ii) in the case of any other
transfer, that the Certificateholder desiring to effect the transfer and such
Certificateholder's prospective transferee each execute a representation letter
in substantially the forms of Exhibit L and Exhibit J attached to the Agreement,
respectively, certifying to the Depositor and the Securities Administrator the
facts surrounding the transfer as described in Section 5.02 of the Agreement, or
as provided in the Agreement, the Depositor and the Securities Administrator
shall require an Opinion of Counsel satisfactory to them that such transfer may
be made without such registration or qualification, which Opinion of Counsel
shall not be an expense of the Depositor, the Trustee, the Securities
Administrator or the Certificate Registrar, in their respective capacities as
such. None of the Depositor, the Securities Administrator, the Certificate
Registrar nor the Trustee is obligated to register or qualify the Class of
Certificates specified on the face hereof under the 1933 Act or any other
securities law or to take any action not otherwise required under the Agreement
to permit the transfer of such Certificates without registration or
qualification. Any such Certificateholder desiring to effect such transfer
shall, and does hereby agree to, indemnify the Trustee, the Depositor, the
Securities Administrator, the Certificate Registrar and the Servicer against any
liability that may result if the transfer is not so exempt or is not made in
accordance with such federal and state laws.

       The Depositor, the Servicer, the Securities Administrator, the Trustee
and the Certificate Registrar and any agent of the Depositor, the Servicer, the
Securities Administrator, the Trustee or the Certificate Registrar may treat the
Person in whose name this Certificate is registered as the owner hereof for all
purposes, and none of the Depositor, the Servicer, the Securities Administrator,
the Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

       The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Securities Administrator and required to be paid to
them pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund, and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement from the
Trust Fund of all Mortgage Loans and all property acquired in respect of such
Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Pool Balance of the Mortgage Loans at the time of purchase being
10% or less of the Cut-off Date Aggregate Principal Balance.

       The recitals contained herein shall be taken as statements of the
Depositor and neither the Trustee nor the Securities Administrator assumes any
responsibility for their correctness.

       Unless the certificate of authentication hereon has been executed by the
Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     B-12-4
<PAGE>

       IN WITNESS WHEREOF, the Securities Administrator has caused this
Certificate to be duly executed.

Dated:

                                             WELLS FARGO BANK, N.A.,
                                                 as Securities Administrator

                                             By:
                                                ----------------------------
                                                 Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                             WELLS FARGO BANK, N.A.,
                                                 as Certificate Registrar

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

Date of authentication:

                                     B-12-5
<PAGE>

                        ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>
<CAPTION>
<S>            <C>                                           <C>                          <C>
TEN COM        -  as tenants in common                       UNIF GIFT MIN ACT -          Custodian
                                                                                          ---------
                                                                                          (Cust) (Minor)
TEN ENT        -  as tenants by the entireties                                            under Uniform Gifts
                                                                                          to Minors Act
JT TEN         -  as joint tenants with right                                             ________________
                  of survivorship and not as                                                  (State)
                  tenants in common
</TABLE>

       Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

       FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) _____________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

       I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________

Dated:

                                        _____________________________________
                                        Signature by or on behalf of assignor

                                        _____________________________________
                                        Signature Guaranteed

                                     B-12-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

       The assignee should include the following for purposes of distribution:

       Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
for the account of ____________________________, account number _______________,
or, if mailed by check, to  ___________________________________________________.
Applicable statements should be mailed to ______________________________________
This information is provided by _______________________________________________,
the assignee named above, or ________________________________________, as its
agent.

                                     B-12-7
<PAGE>

                                  EXHIBIT B-13

                         [FORM OF CLASS B-3 CERTIFICATE]

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A, CLASS M-1,
CLASS M-2, CLASS M-3, CLASS M-4, CLASS M-5, CLASS M-6, CLASS M-7, CLASS M-8,
CLASS M-9, CLASS M-10, CLASS B-1 AND CLASS B-2 CERTIFICATES AS DESCRIBED IN THE
POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

THIS CLASS B-3 CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES LAWS OF
ANY STATE. ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE WITHOUT
SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION THAT DOES
NOT REQUIRE SUCH REGISTRATION OR QUALIFICATION AND IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 5.02 OF THE POOLING AND SERVICING AGREEMENT REFERRED TO
HEREIN.

THE CLASS B-3 CERTIFICATES ARE ONLY OFFERED FOR SALE, AND ARE ONLY TRANSFERABLE
TO PLAN INVESTORS IF AN EXEMPTION FROM THE PROHIBITED TRANSACTION RULES OF ERISA
AND THE CODE APPLIES. EACH PURCHASER OF A CLASS B-3 CERTIFICATE, OTHER THAN THE
INITIAL PURCHASER OF THE CLASS B-3 CERTIFICATE, BY VIRTUE OF ITS PURCHASE OF
SUCH CERTIFICATE, WILL BE DEEMED TO HAVE REPRESENTED EITHER THAT (A) IT IS NOT,
AND IS NOT ACTING ON BEHALF OF, ANY PLAN OR USING THE ASSETS OF ANY PLAN TO
EFFECT SUCH PURCHASE OR (B) IF IT IS AN INSURANCE COMPANY, THAT THE SOURCE OF
FUNDS USED TO PURCHASE SUCH CERTIFICATE IS AN "INSURANCE COMPANY GENERAL
ACCOUNT" (AS SUCH TERM IS DEFINED IN SECTION V(E) OF PROHIBITED TRANSACTION
CLASS EXEMPTION 95-60 ("PTCE 95-60"). 60 FED. REG. 35925 (JULY 12, 1995)), THERE
IS NO PLAN WITH RESPECT TO WHICH THE AMOUNT OF SUCH GENERAL ACCOUNT'S RESERVES
AND LIABILITIES FOR THE CONTRACT(S) HELD BY OR ON BEHALF OF SUCH PLAN AND ALL
OTHER PLANS MAINTAINED BY THE SAME EMPLOYER (OR AFFILIATE THEREOF AS DEFINED IN
SECTION V(A)(1) OF PTCE 95-60) OR BY THE SAME EMPLOYEE ORGANIZATION EXCEEDS 10%
OF THE TOTAL OF ALL RESERVES AND LIABILITIES OF SUCH GENERAL ACCOUNT (AS SUCH
AMOUNTS ARE DETERMINED UNDER SECTION I(A) OF PTCE 95-60) AT THE DATE OF
ACQUISITION AND ALL PLANS THAT HAVE AN INTEREST IN SUCH GENERAL ACCOUNT ARE
PLANS TO WHICH PTCE 95-60 APPLIES.

                                     B-13-1
<PAGE>

                               ABFC 2005-WF1 TRUST
                         ABFC ASSET-BACKED CERTIFICATES
                           SERIES 2005-WF1, CLASS B-3

evidencing a beneficial ownership interest in a Trust Fund consisting primarily
of a pool of conventional fixed-rate and adjustable-rate one- to four-family
first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

<TABLE>
<CAPTION>
<S>                                                              <C>
Series 2005-WF1, Class B-3                                       Original Class Certificate Principal Balance of the
                                                                 Class B Certificates as of the Closing Date: $7,090,000
Certificate Interest Rate:  Floating
                                                                 Initial Certificate Principal Balance: $__
Date of Pooling and Servicing Agreement and Cut-off Date:
April 1, 2005                                                    Servicer:  Wells Fargo Bank, N.A.

First Distribution Date:  May 25, 2005                           Trustee:  Deutsche Bank National Trust Company

No.                                                              Securities Administrator: Wells Fargo Bank, N.A.

CUSIP:  04542B ML 3                                              Closing Date: April 28, 2005

ISIN:  US04542BML35

</TABLE>

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

       This certifies that _________________ is the registered owner of a
Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class B-3 Certificates) in that certain beneficial ownership interest
evidenced by all the Class B-3 Certificates in the Trust Fund created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Asset Backed Funding Corporation (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Securities Administrator and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

       Pursuant to the terms of the Agreement, distributions will be made on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (a "Distribution Date"), commencing on the first
Distribution Date specified above, to the Person in whose name this Certificate
is registered on the Business Day immediately preceding such Distribution Date
(the "Record Date"), from funds in the Distribution Account in an amount equal
to the product of the Percentage Interest evidenced by this Certificate and the
amount required to be distributed to the Holders of Class B-3 Certificates on
such Distribution Date pursuant to the Agreement; provided, however, that if any
Class B-3 Certificate becomes a Definitive Certificate, the Record Date for such
Certificate will be the last Business Day of the month immediately preceding the
month in which the related Distribution Date occurs.

                                     B-13-2
<PAGE>

       All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Securities
Administrator by wire transfer in immediately available funds to the account of
the Person entitled thereto if such Person shall have so notified the
Certificate Registrar in writing at least five Business Days prior to the Record
Date immediately prior to such Distribution Date and is the registered owner of
Class B-3 Certificates, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Securities Administrator of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Securities Administrator for that purpose as
provided in the Agreement.

       The Certificate Interest Rate for the Class B-3 Certificates for each
Distribution Date will be the least of (i) One-Month LIBOR as of the related
LIBOR Determination Date plus the Class B-3 Certificate Margin, (ii) the Pool
Maximum Rate Cap and (iii) the Pool Cap. Interest will accrue on the Class B-3
Certificates during each Interest Accrual Period at the Certificate Interest
Rate.

       This Certificate is one of a duly authorized issue of Certificates
designated as ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates, of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class B-3 Certificates.

       The Class B-3 Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Accounts and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

       This certificate is subordinated in right of payment to the Class A
Certificates, Class M-1 Certificates, Class M-2 Certificates, Class M-3
Certificates, Class M-4 Certificates, Class M-5 Certificates, Class M-6
Certificates, Class M-7 Certificates, Class M-8 Certificates, Class M-9
Certificates, Class M-10, Class B-1 and Class B-2 Certificates as described in
the Agreement referred to herein.

       The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Securities Administrator, the Trustee and the
rights of the Certificateholders under the Agreement at any time by the
Depositor, the Servicer, the Securities Administrator and the Trustee with the
consent of the Holders of Certificates entitled to the Voting Rights identified
in the Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

       As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Securities Administrator as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Securities
Administrator and the Certificate Registrar duly executed by, the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Certificates of the same Class in authorized denominations evidencing the
same aggregate Percentage Interest will be issued to the designated transferee
or transferees.

       The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                                     B-13-3
<PAGE>

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

       No transfer of this Certificate shall be made unless that transfer is
made pursuant to an effective registration statement under the 1933 Act and
effective registration or qualification under applicable state securities laws,
or is made in a transaction that does not require such registration or
qualification. In the event that a transfer is to be made without registration
or qualification, the Securities Administrator shall require, in order to assure
compliance with such laws, either (i) in the case of a transfer made in reliance
on Rule 144A under the 1933 Act, that the proposed transferee delivers to the
Securities Administrator a completed investment letter in substantially the form
attached to the Agreement as Exhibit J, or (ii) in the case of any other
transfer, that the Certificateholder desiring to effect the transfer and such
Certificateholder's prospective transferee each execute a representation letter
in substantially the forms of Exhibit L and Exhibit J attached to the Agreement,
respectively, certifying to the Depositor and the Securities Administrator the
facts surrounding the transfer as described in Section 5.02 of the Agreement, or
as provided in the Agreement, the Depositor and the Securities Administrator
shall require an Opinion of Counsel satisfactory to them that such transfer may
be made without such registration or qualification, which Opinion of Counsel
shall not be an expense of the Depositor, the Trustee, the Securities
Administrator or the Certificate Registrar, in their respective capacities as
such. None of the Depositor, the Securities Administrator, the Certificate
Registrar nor the Trustee is obligated to register or qualify the Class of
Certificates specified on the face hereof under the 1933 Act or any other
securities law or to take any action not otherwise required under the Agreement
to permit the transfer of such Certificates without registration or
qualification. Any such Certificateholder desiring to effect such transfer
shall, and does hereby agree to, indemnify the Trustee, the Depositor, the
Securities Administrator, the Certificate Registrar and the Servicer against any
liability that may result if the transfer is not so exempt or is not made in
accordance with such federal and state laws.

       The Depositor, the Servicer, the Securities Administrator, the Trustee
and the Certificate Registrar and any agent of the Depositor, the Servicer, the
Securities Administrator, the Trustee or the Certificate Registrar may treat the
Person in whose name this Certificate is registered as the owner hereof for all
purposes, and none of the Depositor, the Servicer, the Securities Administrator,
the Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

       The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Trustee and required to be paid to them pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Pool
Balance of the Mortgage Loans at the time of purchase being 10% or less of the
Cut-off Date Aggregate Principal Balance.

       The recitals contained herein shall be taken as statements of the
Depositor and neither the Trustee nor the Securities Administrator assumes any
responsibility for their correctness.

       Unless the certificate of authentication hereon has been executed by the
Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     B-13-4
<PAGE>

       IN WITNESS WHEREOF, the Securities Administrator has caused this
Certificate to be duly executed.

Dated:

                                             WELLS FARGO BANK, N.A.,
                                                 as Securities Administrator

                                             By:
                                                ----------------------------
                                                 Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                             WELLS FARGO BANK, N.A.,
                                                 as Certificate Registrar

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

Date of authentication:

                                     B-13-5
<PAGE>

                        ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>
<CAPTION>
<S>            <C>                                           <C>                          <C>
TEN COM        -  as tenants in common                       UNIF GIFT MIN ACT -          Custodian
                                                                                          ---------
                                                                                          (Cust) (Minor)
TEN ENT        -  as tenants by the entireties                                            under Uniform Gifts
                                                                                          to Minors Act
JT TEN         -  as joint tenants with right                                             ________________
                  of survivorship and not as                                                  (State)
                  tenants in common
</TABLE>

       Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

       FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) _____________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

       I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________

Dated:

                                        _____________________________________
                                        Signature by or on behalf of assignor

                                        _____________________________________
                                        Signature Guaranteed

                                     B-13-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

       The assignee should include the following for purposes of distribution:

       Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
for the account of ____________________________, account number _______________,
or, if mailed by check, to  ___________________________________________________.
Applicable statements should be mailed to ______________________________________
This information is provided by _______________________________________________,
the assignee named above, or ________________________________________, as its
agent.

                                     B-13-7
<PAGE>

                                   EXHIBIT C-1

                         [FORM OF CLASS CE CERTIFICATE]

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A DIRECT OR
INDIRECT BENEFICIAL INTEREST IN A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE
INVESTMENT CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G
AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND
CERTAIN OTHER PROPERTY.

THIS CLASS CE CERTIFICATE IS SUBORDINATE TO THE OFFERED CERTIFICATES OF THIS
SERIES TO THE EXTENT DESCRIBED HEREIN AND IN THE POOLING AND SERVICING AGREEMENT
REFERRED TO HEREIN.

THIS CLASS CE CERTIFICATE WILL NOT BE ENTITLED TO PAYMENTS UNTIL SUCH TIME AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

THIS CLASS CE CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES LAWS OF
ANY STATE. ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE WITHOUT
SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION THAT DOES
NOT REQUIRE SUCH REGISTRATION OR QUALIFICATION AND IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 5.02 OF THE POOLING AND SERVICING AGREEMENT REFERRED TO
HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED, SECTION 4975 OF THE CODE OR ANY MATERIALLY SIMILAR PROVISIONS
OF APPLICABLE FEDERAL, STATE OR LOCAL LAW WILL BE REGISTERED EXCEPT AS PROVIDED
IN THE POOLING AND SERVICING AGREEMENT.

                                     C-1-1
<PAGE>

                               ABFC 2005-WF1 TRUST
                         ABFC ASSET-BACKED CERTIFICATES
                            SERIES 2005-WF1, CLASS CE

evidencing a beneficial ownership interest in a Trust Fund consisting primarily
of a pool of conventional fixed-rate and adjustable-rate one- to four-family
first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

<TABLE>
<CAPTION>
<S>                                                              <C>
Series 2005-WF1, Class CE                                        Servicer:  Wells Fargo Bank, N.A.

Date of Pooling and Servicing Agreement and Cut-off Date:        Trustee:  Deutsche Bank National Trust Company
April 1, 2005
                                                                 Securities Administrator: Wells Fargo Bank, N.A.
First Distribution Date:  May 25, 2005
                                                                 Closing Date: April 28, 2005
No.

Percentage Interest:  100%

</TABLE>

       THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET
       BACKED FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR,
       THE TRUSTEE OR ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT
       GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

       This certifies that __________________________________ is the registered
owner of a Percentage Interest set forth above in that certain beneficial
ownership interest evidenced by all the Class CE Certificates in the Trust Fund
created pursuant to a Pooling and Servicing Agreement, dated as specified above
(the "Agreement"), among Asset Backed Funding Corporation (hereinafter called
the "Depositor," which term includes any successor entity under the Agreement),
the Servicer, the Securities Administrator and the Trustee, a summary of certain
of the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

       Pursuant to the terms of the Agreement, distributions will be made on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (a "Distribution Date"), commencing on the first
Distribution Date specified above, to the Person in whose name this Certificate
is registered on the last Business Day of the month immediately preceding the
month in which the related Distribution Date occurs (the "Record Date"), from
funds in the Distribution Account in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to the Holders of Class CE Certificates on such Distribution Date
pursuant to the Agreement.

       All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Securities
Administrator by wire transfer in immediately available funds to the account of
the Person entitled thereto if such Person shall have so notified the
Certificate Registrar in writing at least five Business Days prior to the Record
Date immediately prior to such Distribution Date and is the registered owner of
Class CE Certificates, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Securities Administrator of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Securities Administrator for that purpose as
provided in the Agreement.

                                     C-1-2
<PAGE>

       This Certificate is one of a duly authorized issue of Certificates
designated as ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates, of the Series
specified on the face hereof (herein called the "Certificates") and representing
the Percentage Interest specified on the face hereof.

       The Class CE Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Accounts and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

       The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Securities Administrator, the Trustee and the
rights of the Certificateholders under the Agreement at any time by the
Depositor, the Servicer, the Securities Administrator and the Trustee with the
consent of the Holders of Certificates entitled to the Voting Rights identified
in the Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

       As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Securities Administrator as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Securities
Administrator and the Certificate Registrar duly executed by, the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Certificates of the same Class in authorized denominations evidencing the
same aggregate Percentage Interest will be issued to the designated transferee
or transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

       No transfer of this Certificate shall be made unless that transfer is
made pursuant to an effective registration statement under the 1933 Act and
effective registration or qualification under applicable state securities laws,
or is made in a transaction that does not require such registration or
qualification. In the event that a transfer is to be made without registration
or qualification, the Certificate Registrar shall require, in order to assure
compliance with such laws, either (i) that the Certificateholder desiring to
effect the transfer and such Certificateholder's prospective transferee each
execute a representation letter in the form described by the Agreement
certifying to the Certificate Registrar the facts surrounding the transfer, or
(ii) unless such transfer is made in reliance upon Rule 144A under the 1933 Act,
that the Depositor and the Certificate Registrar receive an Opinion of Counsel
satisfactory to them that such transfer may be made without such registration or
qualification, which Opinion of Counsel shall not be an expense of the
Depositor, the Securities Administrator, the Trustee or the Certificate
Registrar, in their respective capacities as such. None of the Depositor, the
Securities Administrator ,the Certificate Registrar or the Trustee is obligated
to register or qualify the Class of Certificates specified on the face hereof
under the 1933 Act or any other securities law or to take any action not
otherwise required under the Agreement to permit the transfer of such
Certificates without registration or qualification. Any such Certificateholder
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee, the Depositor, the Securities Administrator, the Certificate Registrar
and any Servicer against any liability that may result if the transfer is not so
exempt or is not made in accordance with such federal and state laws.

       No transfer of a Certificate or any interest therein may be made to
employee benefit plans and certain other retirement plans and arrangements,
including individual retirement accounts and annuities, Keogh plans and
collective investment funds and separate accounts in which such plans, accounts
or arrangements are invested that are subject to the fiduciary responsibility
provisions of ERISA, Section 4975 of the Code or any materially similar
provisions of applicable federal, state or local law (collectively, "Plans") or
any person who is directly or indirectly purchasing the Certificate or interest
therein on behalf of, as named fiduciary of, as trustee of, or with assets of a
Plan except as provided in the Pooling and Servicing Agreement.

                                     C-1-3
<PAGE>

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

       The Depositor, the Servicer, the Securities Administrator, the Trustee
and the Certificate Registrar and any agent of the Depositor, the Servicer, the
Securities Administrator, the Trustee or the Certificate Registrar may treat the
Person in whose name this Certificate is registered as the owner hereof for all
purposes, and none of the Depositor, the Servicer, the Securities Administrator,
the Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

       The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Securities Administrator and required to be paid to
them pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund, and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement from the
Trust Fund of all Mortgage Loans and all property acquired in respect of such
Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Pool Balance of the Mortgage Loans at the time of purchase being
10% or less of the Cut-off Date Aggregate Principal Balance.

       The recitals contained herein shall be taken as statements of the
Depositor and neither the Trustee nor the Securities Administrator assume any
responsibility for their correctness.

       Unless the certificate of authentication hereon has been executed by the
Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     C-1-4
<PAGE>

       IN WITNESS WHEREOF, the Securities Administrator has caused this
Certificate to be duly executed.

Dated:

                                             WELLS FARGO BANK, N.A.,
                                                 as Securities Administrator

                                             By:
                                                ----------------------------
                                                 Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

Dated:

                                             WELLS FARGO BANK, N.A.,
                                                 as Certificate Registrar

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

                                     C-1-5
<PAGE>

                                  ABBREVIATIONS

       The following abbreviations, when used in the inscription on the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<CAPTION>
<S>            <C>                                           <C>                          <C>
TEN COM        -  as tenants in common                       UNIF GIFT MIN ACT -          Custodian
                                                                                          ---------
                                                                                          (Cust) (Minor)
TEN ENT        -  as tenants by the entireties                                            under Uniform Gifts
                                                                                          to Minors Act
JT TEN         -  as joint tenants with right                                             _______________
                  of survivorship and not as                                                 (State)
                  tenants in common
</TABLE>

       Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

       FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) _____________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

       I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________

Dated:

                                        _____________________________________
                                        Signature by or on behalf of assignor

                                        _____________________________________
                                        Signature Guaranteed

                                     C-1-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

       The assignee should include the following for purposes of distribution:

       Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
for the account of ____________________________, account number _______________,
or, if mailed by check, to  ___________________________________________________.
Applicable statements should be mailed to ______________________________________
This information is provided by _______________________________________________,
the assignee named above, or ________________________________________, as its
agent.

                                     C-1-7
<PAGE>

                                   EXHIBIT C-2

                          [FORM OF CLASS P CERTIFICATE]

THIS CLASS P CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES LAWS OF
ANY STATE. ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE WITHOUT
SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION THAT DOES
NOT REQUIRE SUCH REGISTRATION OR QUALIFICATION AND IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 5.02 OF THE POOLING AND SERVICING AGREEMENT REFERRED TO
HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED, SECTION 4975 OF THE CODE OR ANY MATERIALLY SIMILAR PROVISIONS
OF APPLICABLE FEDERAL, STATE OR LOCAL LAW WILL BE REGISTERED EXCEPT AS PROVIDED
IN THE POOLING AND SERVICING AGREEMENT.

                                     C-2-1
<PAGE>

                               ABFC 2005-WF1 TRUST
                         ABFC ASSET-BACKED CERTIFICATES
                            SERIES 2005-WF1, CLASS P

evidencing a beneficial ownership interest in a Trust Fund consisting primarily
of a pool of conventional fixed-rate and adjustable-rate one- to four-family
first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

<TABLE>
<CAPTION>
<S>                                                              <C>
Series 2005-WF1, Class P                                         Original Class Certificate Principal Balance of the
                                                                 Class P Certificates as of the Closing Date:  $100
Date of Pooling and Servicing Agreement and Cut-off Date:
April 1, 2005                                                    Initial Certificate Principal Balance:  $100

First Distribution Date:  May 25, 2005                           Servicer:  Wells Fargo Bank, N.A.

No.                                                              Trustee: Deutsche Bank National Trust Company

                                                                 Securities Administrator: Wells Fargo Bank, N.A.

                                                                 Closing Date: April 28, 2005
</TABLE>

       THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET
       BACKED FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR,
       THE TRUSTEE OR ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT
       GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

       This certifies that __________________________________ is the registered
owner of a Percentage Interest set forth above in that certain beneficial
ownership interest evidenced by all the Class P Certificates in the Trust Fund
created pursuant to a Pooling and Servicing Agreement, dated as specified above
(the "Agreement"), among Asset Backed Funding Corporation (hereinafter called
the "Depositor," which term includes any successor entity under the Agreement),
the Servicer, the Securities Administrator and the Trustee, a summary of certain
of the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

       Pursuant to the terms of the Agreement, distributions will be made on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (a "Distribution Date"), commencing on the first
Distribution Date specified above, to the Person in whose name this Certificate
is registered on the last Business Day of the month immediately preceding the
month in which the related Distribution Date occurs (the "Record Date"), from
Prepayment Charges and Servicer Prepayment Charge Payment Amounts in the
Distribution Account in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be distributed
to the Holders of Class P Certificates on such Distribution Date pursuant to the
Agreement.

       All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Securities
Administrator by wire transfer in immediately available funds to the account of
the Person entitled thereto if such Person shall have so notified the
Certificate Registrar in writing at least five Business Days prior to the Record
Date immediately prior to such Distribution Date and is the registered owner of
Class P Certificates, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Securities Administrator of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Securities Administrator for that purpose as
provided in the Agreement.

                                     C-2-2
<PAGE>

       This Certificate is one of a duly authorized issue of Certificates
designated as ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates, of the Series
specified on the face hereof (herein called the "Certificates") and representing
the Percentage Interest specified on the face hereof.

       The Class P Certificates are limited in right of payment to Prepayment
Charges received on the Mortgage Loans and Servicer Prepayment Charge Payment
Amounts, all as more specifically set forth herein and in the Agreement. As
provided in the Agreement, withdrawals from the Collection Accounts and the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement of
advances made, or certain expenses incurred, with respect to the Mortgage Loans.

       The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Securities Administrator, the Trustee and the
rights of the Certificateholders under the Agreement at any time by the
Depositor, the Servicer, the Securities Administrator and the Trustee with the
consent of the Holders of Certificates entitled to the Voting Rights identified
in the Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

       As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Securities Administrator as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Securities
Administrator and the Certificate Registrar duly executed by, the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Certificates of the same Class in authorized denominations evidencing the
same aggregate Percentage Interest will be issued to the designated transferee
or transferees.

       The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

       No transfer of this Certificate shall be made unless that transfer is
made pursuant to an effective registration statement under the 1933 Act and
effective registration or qualification under applicable state securities laws,
or is made in a transaction that does not require such registration or
qualification. In the event that a transfer is to be made without registration
or qualification, the Certificate Registrar shall require, in order to assure
compliance with such laws, either (i) that the Certificateholder desiring to
effect the transfer and such Certificateholder's prospective transferee each
execute a representation letter in the form described by the Agreement
certifying to the Certificate Registrar the facts surrounding the transfer, or
(ii) unless such transfer is made in reliance upon Rule 144A under the 1933 Act,
that the Depositor and the Certificate Registrar receive an Opinion of Counsel
satisfactory to them that such transfer may be made without such registration or
qualification, which Opinion of Counsel shall not be an expense of the
Depositor, the Securities Administrator, the Trustee or the Certificate
Registrar, in their respective capacities as such. None of the Depositor, the
Securities Administrator, the Certificate Registrar or the Trustee is obligated
to register or qualify the Class of Certificates specified on the face hereof
under the 1933 Act or any other securities law or to take any action not
otherwise required under the Agreement to permit the transfer of such
Certificates without registration or qualification. Any such Certificateholder
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee, the Securities Administrator, the Depositor, the Certificate Registrar
and any Servicer against any liability that may result if the transfer is not so
exempt or is not made in accordance with such federal and state laws.

                                     C-2-3
<PAGE>

       No transfer of a Certificate or any interest therein may be made to
employee benefit plans and certain other retirement plans and arrangements,
including individual retirement accounts and annuities, Keogh plans and
collective investment funds and separate accounts in which such plans, accounts
or arrangements are invested that are subject to the fiduciary responsibility
provisions of ERISA, Section 4975 of the Code or any materially similar
provisions of applicable federal, state or local law (collectively, "Plans") or
any person who is directly or indirectly purchasing the Certificate or interest
therein on behalf of, as named fiduciary of, as trustee of, or with assets of a
Plan.

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

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

       The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Securities Administrator and required to be paid to
them pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund, and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement from the
Trust Fund of all Mortgage Loans and all property acquired in respect of such
Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Pool Balance of the Mortgage Loans at the time of purchase being
10% or less of the Cut-off Date Aggregate Principal Balance.

       The recitals contained herein shall be taken as statements of the
Depositor and neither the Trustee nor the Securities Administrator assumes any
responsibility for their correctness.

       Unless the certificate of authentication hereon has been executed by the
Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     C-2-4
<PAGE>

       IN WITNESS WHEREOF, the Securities Administrator has caused this
Certificate to be duly executed.

Dated:

                                             WELLS FARGO BANK, N.A.,
                                                 as Securities Administrator

                                             By:
                                                ----------------------------
                                                 Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

Dated:

                                             WELLS FARGO BANK, N.A.,
                                                 as Certificate Registrar

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

                                     C-2-5
<PAGE>

                        ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>
<CAPTION>
<S>            <C>                                           <C>                          <C>
TEN COM        -  as tenants in common                       UNIF GIFT MIN ACT -          Custodian
                                                                                          ---------
                                                                                          (Cust) (Minor)
TEN ENT        -  as tenants by the entireties                                            under Uniform Gifts
                                                                                          to Minors Act
JT TEN         -  as joint tenants with right                                             ________________
                  of survivorship and not as                                                  (State)
                  tenants in common
</TABLE>

       Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

       FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) _____________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

       I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________

Dated:

                                        _____________________________________
                                        Signature by or on behalf of assignor

                                        _____________________________________
                                        Signature Guaranteed

                                     C-2-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

       The assignee should include the following for purposes of distribution:

       Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
for the account of ____________________________, account number _______________,
or, if mailed by check, to  ___________________________________________________.
Applicable statements should be mailed to ______________________________________
This information is provided by _______________________________________________,
the assignee named above, or ________________________________________, as its
agent.

                                     C-2-7
<PAGE>

                                   EXHIBIT C-3

                          [FORM OF CLASS R CERTIFICATE]

THIS CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED STATES PERSON.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS THE "RESIDUAL
INTEREST" IN TWO SEPARATE "REAL ESTATE MORTGAGE INVESTMENT CONDUITS," AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE").

THIS CLASS R CERTIFICATE IS SUBORDINATE TO THE OFFERED CERTIFICATES OF THIS
SERIES TO THE EXTENT DESCRIBED HEREIN AND IN THE POOLING AND SERVICING AGREEMENT
REFERRED TO HEREIN.

THIS CLASS R CERTIFICATE WILL NOT BE ENTITLED TO PAYMENTS UNTIL SUCH TIME AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

THIS CLASS R CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES LAWS OF
ANY STATE. ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE WITHOUT
SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION THAT DOES
NOT REQUIRE SUCH REGISTRATION OR QUALIFICATION AND IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 5.02 OF THE POOLING AND SERVICING AGREEMENT REFERRED TO
HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED, SECTION 4975 OF THE CODE OR ANY MATERIALLY SIMILAR PROVISIONS
OF APPLICABLE FEDERAL, STATE OR LOCAL LAW WILL BE REGISTERED.

ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CLASS R CERTIFICATE MAY BE
MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES (1) AN AFFIDAVIT TO THE
CERTIFICATE REGISTRAR THAT SUCH TRANSFEREE IS NOT (A) THE UNITED STATES, ANY
STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY
INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE
FOREGOING, (B) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN SECTION
521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE
UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE
CODE, (C) ANY ORGANIZATION DESCRIBED IN SECTION 1381(A)(2)(C) OF THE CODE (ANY
SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B) OR (C) BEING HEREINAFTER
REFERRED TO AS A "DISQUALIFIED ORGANIZATION"), OR (D) AN AGENT OF A DISQUALIFIED
ORGANIZATION AND (2) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE ASSESSMENT OR
COLLECTION OF TAX, AND (3) SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL
CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE.
NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OR ANY TRANSFER,
SALE OR OTHER DISPOSITION OF THIS CLASS R CERTIFICATE TO A DISQUALIFIED
ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL
BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT
BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT
NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER OF
THE CLASS R CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE SHALL BE DEEMED TO
HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH AND THE PROVISIONS OF SECTION
5.02(D) OF THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN. ANY PERSON
THAT IS A DISQUALIFIED ORGANIZATION IS PROHIBITED FROM ACQUIRING BENEFICIAL
OWNERSHIP OF THIS CLASS R CERTIFICATE.

                                     C-3-1
<PAGE>

                               ABFC 2005-WF1 TRUST
                         ABFC ASSET-BACKED CERTIFICATES
                            SERIES 2005-WF1, CLASS R

evidencing a beneficial ownership interest in a Trust Fund consisting primarily
of a pool of conventional fixed-rate and adjustable-rate one- to four-family
first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

<TABLE>
<CAPTION>
<S>                                                          <C>
Series 2005-WF1, Class R                                     Servicer:  Wells Fargo Bank, N.A.

Date of Pooling and Servicing Agreement and Cut-off Date:    Trustee:  Deutsche Bank National Trust Company
April 1, 2005
                                                             Securities Administrator: Wells Fargo Bank, N.A.
First Distribution Date:  May 25, 2005
                                                             Closing Date:  April 28, 2005
No.

Percentage Interest:  100%

</TABLE>

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

       This certifies that _______________________ is the registered owner of
100% Percentage Interest in that certain beneficial ownership interest evidenced
by the Class R Certificate in the Trust Fund created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Asset
Backed Funding Corporation (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), the Servicer, the Securities
Administrator and the Trustee, a summary of certain of the pertinent provisions
of which is set forth hereafter. To the extent not defined herein, the
capitalized terms used herein have the meanings assigned in the Agreement. This
Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

       Pursuant to the terms of the Agreement, distributions will be made on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (a "Distribution Date"), commencing on the first
Distribution Date specified above, to the Person in whose name this Certificate
is registered on the last Business Day of the month immediately preceding the
month in which the related Distribution Date occurs (the "Record Date"), from
funds in the Distribution Account in the amount required to be distributed to
the Holder of Class R Certificate on such Distribution Date pursuant to the
Agreement.

       All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Securities
Administrator by wire transfer in immediately available funds to the account of
the Person entitled thereto if such Person shall have so notified the
Certificate Registrar in writing at least five Business Days prior to the Record
Date immediately prior to such Distribution Date and is the registered owner of
Class R Certificate, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Securities Administrator of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Securities Administrator for that purpose as
provided in the Agreement.

       This Certificate is one of a duly authorized issue of Certificates
designated as ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates, of the Series
specified on the face hereof (herein called the "Certificates") and representing
the Percentage Interest specified on the face hereof.

                                     C-3-2
<PAGE>

       The Class R Certificate is limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Accounts and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

       The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Securities Administrator, the Trustee and the
rights of the Certificateholders under the Agreement at any time by the
Depositor, the Servicer, the Securities Administrator and the Trustee with the
consent of the Holders of Certificates entitled to the Voting Rights identified
in the Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

       As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Securities Administrator as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Securities
Administrator and the Certificate Registrar duly executed by, the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Certificates of the same Class in authorized denominations evidencing the
same aggregate Percentage Interest will be issued to the designated transferee
or transferees.

       The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

       No transfer of this Certificate shall be made unless that transfer is
made pursuant to an effective registration statement under the 1933 Act and
effective registration or qualification under applicable state securities laws,
or is made in a transaction that does not require such registration or
qualification. In the event that a transfer is to be made without registration
or qualification, the Certificate Registrar shall require, in order to assure
compliance with such laws, either (i) that the Certificateholder desiring to
effect the transfer and such Certificateholder's prospective transferee each
execute a representation letter in the form described by the Agreement
certifying to the Certificate Registrar the facts surrounding the transfer, or
(ii) unless such transfer is made in reliance upon Rule 144A under the 1933 Act,
that the Depositor and the Certificate Registrar receive an Opinion of Counsel
satisfactory to them that such transfer may be made without such registration or
qualification, which Opinion of Counsel shall not be an expense of the
Depositor, the Securities Administrator, the Trustee or the Certificate
Registrar, in their respective capacities as such. None of the Depositor, the
Securities Administrator, the Certificate Registrar or the Trustee is obligated
to register or qualify the Class of Certificates specified on the face hereof
under the 1933 Act or any other securities law or to take any action not
otherwise required under the Agreement to permit the transfer of such
Certificates without registration or qualification. Any such Certificateholder
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee, the Securities Administrator, the Depositor, the Certificate Registrar
and any Servicer against any liability that may result if the transfer is not so
exempt or is not made in accordance with such federal and state laws.

       No transfer of this Certificate or any interest therein may be made to
employee benefit plans and certain other retirement plans and arrangements,
including individual retirement accounts and annuities, Keogh plans and
collective investment funds and separate accounts in which such plans, accounts
or arrangements are invested that are subject to the fiduciary responsibility
provisions of ERISA, Section 4975 of the Code or any materially similar
provisions of applicable federal, state or local law (collectively, "Plans") or
any person who is directly or indirectly purchasing the Certificate or interest
therein on behalf of, as named fiduciary of, as trustee of, or with assets of a
Plan.

                                     C-3-3
<PAGE>

       The Holder of this Certificate, by its acceptance hereof, shall be deemed
for all purposes to have consented to the provisions of Section 5.02 of the
Agreement and to any amendment of the Agreement deemed necessary by counsel of
the Depositor to ensure that the transfer of this Certificate to any Person
other than a Permitted Transferee or any other Person will not cause the Trust
to cease to qualify as two separate REMICs or cause the imposition of a tax upon
the Trust.

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

       The Depositor, the Servicer, the Securities Administrator, the Trustee
and the Certificate Registrar and any agent of the Depositor, the Servicer, the
Securities Administrator, the Trustee or the Certificate Registrar may treat the
Person in whose name this Certificate is registered as the owner hereof for all
purposes, and none of the Depositor, the Servicer, the Securities Administrator,
the Trustee, the Certificate Registrar nor any such agent shall be affected by
notice to the contrary.

       The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Securities Administrator and required to be paid to
them pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund, and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement from the
Trust Fund of all Mortgage Loans and all property acquired in respect of such
Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Pool Balance of the Mortgage Loans at the time of purchase being
10% or less of the Cut-off Date Aggregate Principal Balance.

       The recitals contained herein shall be taken as statements of the
Depositor and neither the Trustee nor the Securities Administrator assumes any
responsibility for their correctness.

       Unless the certificate of authentication hereon has been executed by the
Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     C-3-4
<PAGE>

       IN WITNESS WHEREOF, the Securities Administrator has caused this
Certificate to be duly executed.

Dated:

                                             WELLS FARGO BANK, N.A.,
                                                 as Securities Administrator

                                             By:
                                                ----------------------------
                                                 Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

Dated:

                                             WELLS FARGO BANK, N.A.,
                                                 as Certificate Registrar

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

                                     C-3-5
<PAGE>

                                  ABBREVIATIONS

       The following abbreviations, when used in the inscription on the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<CAPTION>
<S>            <C>                                           <C>                          <C>
TEN COM        -  as tenants in common                       UNIF GIFT MIN ACT -          Custodian
                                                                                          ---------
                                                                                          (Cust) (Minor)
TEN ENT        -  as tenants by the entireties                                            under Uniform Gifts
                                                                                          to Minors Act
JT TEN         -  as joint tenants with right                                             ________________
                  of survivorship and not as                                                  (State)
                  tenants in common
</TABLE>

       Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

       FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) _____________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

       I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________

Dated:

                                        _____________________________________
                                        Signature by or on behalf of assignor

                                        _____________________________________
                                        Signature Guaranteed

                                     C-3-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

       The assignee should include the following for purposes of distribution:

       Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
for the account of ____________________________, account number _______________,
or, if mailed by check, to  ___________________________________________________.
Applicable statements should be mailed to ______________________________________
This information is provided by _______________________________________________,
the assignee named above, or ________________________________________, as its
agent.

                                      C-3-7
<PAGE>

                                    EXHIBIT D

                             MORTGAGE LOAN SCHEDULE

                            [INTENTIONALLY OMITTED]

                                      D-1-1

<PAGE>

                                    EXHIBIT E

                    FORM OF REQUEST FOR RELEASE OF DOCUMENTS

To: Wells Fargo Bank, N.A.
    751 Kasota Avenue
    Minneapolis, Minnesota 55414

    Re:  Pooling and Servicing Agreement dated as of April 1, 2005 among Asset
         Backed Funding Corporation, as depositor, Wells Fargo Bank, N.A., as
         servicer, Wells Fargo Bank, N.A., as securities - administrator, and
         Deutsche Bank National Trust Company, as trustee

         All capitalized terms used herein shall have the means ascribed to them
in the Pooling and Servicing Agreement (the "Agreement") referenced above.

         In connection with the administration of the Mortgage Loans held by you
as Trustee pursuant to the Agreement, we request the release, and hereby
acknowledge receipt, of the Trustee's Mortgage File for the Mortgage Loan
described below, for the reason indicated.

Mortgage Loan Number:

Mortgagor Name, Address & Zip Code:

Reason for Requesting Documents (check one):

_____  1.   Mortgage Paid in Full

_____  2.   Foreclosure

_____  3.   Substitution

_____  4.   Other Liquidation (Repurchases, etc.)

_____  5.   Nonliquidation   Reason:
                                    -----------------------------

                             By:
                                ---------------------------------
                                (authorized signer)

                             Issuer:
                                    -----------------------------

                             Address:
                                     ----------------------------

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

Custodian

Wells Fargo Bank, N.A.

         Please acknowledge the execution of the above request by your signature
and date below:

--------------------------------                     ------------------------
         Signature                                   Date

Documents returned to Custodian:

--------------------------------                     ------------------------
         Custodian                                   Date

                                      E-1
<PAGE>

         Capitalized terms used herein shall have the meaning ascribed to them
in the Agreement.

                                     WELLS FARGO BANK, N.A.,
                                     as Custodian

                                     By:
                                          --------------------------------------

                                     Name:
                                            ------------------------------------

                                     Title:
                                             -----------------------------------

                                      E-2
<PAGE>

                                   EXHIBIT F-1

                    FORM OF CUSTODIAN'S INITIAL CERTIFICATION

                                                                __________, 20__

Asset Backed Funding Corporation
214 North Tryon Street
Charlotte, North Carolina 28255

Deutsche Bank National Trust Company
1761 East St. Andrew Place
Santa Ana, California 92705

         Re: ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates, Series
             2005-WF1

Ladies and Gentlemen:

         The undersigned, as Custodian, hereby certifies that, as except as
noted on the schedule of exceptions attached hereto as Schedule A, as to each
Mortgage Loan listed on the Mortgage Loan Schedule (other than any Mortgage Loan
paid in full or any Mortgage Loan listed on the attachment hereto) it has
reviewed the Mortgage Files and has determined that (i) all documents required
to be delivered to it pursuant to Section 2.01(a), (b), (c), (d) and (e) of the
Pooling and Servicing Agreement, dated as of April 1, 2005, among Asset Backed
Funding Corporation, as depositor, Wells Fargo Bank, N.A., as servicer, Wells
Fargo Bank, N.A., as securities administrator, and Deutsche Bank National Trust
Company, as trustee (the "Agreement") are in its possession, and if indicated as
applicable in a separate writing delivered to the Custodian, that all documents
delivered to it pursuant to Section 2.01(f) of the Agreement are in its
possession; (ii) such documents have been reviewed by it and appear regular on
their face and related to such Mortgage Loan, (iii) each Mortgage Note has been
endorsed as provided in Section 2.01(a) of the Agreement and each Mortgage has
been assigned in accordance with Section 2.01(c) and (d) of the Agreement and
(iv) based on its examination of the documents in the Mortgage File and only as
to such documents, the Mortgage Loan information attached hereto as Schedule B
set forth for each Mortgage Loan on the related Mortgage Loan Schedule with
respect to such Mortgage Loan accurately reflects information set forth in the
related Mortgage File. The Custodian makes no representations as to (i) the
validity, legality, enforceability, sufficiency, due authorization or
genuineness of any of the documents contained in each Mortgage File or of any of
the Mortgage Loans or (ii) the collectability, insurability, effectiveness or
suitability of any such Mortgage Loan.

         This Initial Certification is not divisible or negotiable.

         The Custodian will accept and act on instructions with respect to the
Mortgage Loans subject hereto upon surrender of this Initial Certification at
its office at 1015 10th Avenue, South East Minneapolis, Minnesota 55414.

                                      F-1-1
<PAGE>

                      SCHEDULE A - TO INITIAL CERTIFICATION

                                   EXCEPTIONS

                          (ON FILE WITH THE CUSTODIAN)

                                      E-3
<PAGE>

                      SCHEDULE B - TO INITIAL CERTIFICATION

                            MORTGAGE LOAN INFORMATION

1. Loan Identification Number

2. Mortgagor's Name

3. State and Zip Code of Mortgaged Property

4. Initial Mortgage Interest Rate

5. Original Principal Balance

6. Scheduled Maturity Date

7. Initial Monthly Payment

8. Initial Payment Date

9. Gross Margin (for Adjustable Rate Mortgage Loans)

10. Initial Adjustment Date (for Adjustable Rate Mortgage Loans)

11. Maximum Mortgage Interest Rate (for Adjustable Rate Mortgage Loans)

12. Minimum Mortgage Interest Rate (for Adjustable Rate Mortgage Loans)

13. Periodic Interest Rate (for Adjustable Rate Mortgage Loans)

14. Prepayment Charge Term (if applicable)

15. Prepayment Charge Amount (if applicable)

16. Prepayment Penalty Type (if applicable)

                                      E-4
<PAGE>

                                   EXHIBIT F-2

                     FORM OF CUSTODIAN'S FINAL CERTIFICATION
                                                                  April 28, 2005

Asset Backed Funding Corporation
214 North Tryon Street, 21st Floor
Charlotte, North Carolina 28255

Deutsche Bank National Trust Company
1761 East St. Andrew Place
Santa Ana, California 92705

         Re:  ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates, Series
              2005-WF1

Ladies and Gentlemen:

         The undersigned, as Custodian, hereby certifies that, as except as
noted on the schedule of exceptions attached hereto as Schedule A, as to each
Mortgage Loan listed on the Mortgage Loan Schedule (other than any Mortgage Loan
paid in full or any Mortgage Loan listed on the attachment hereto) it has
reviewed the Mortgage Files and has determined that (a) all documents required
to be delivered to it pursuant to Section 2.01(a), (b), (c), (d) and (e) of the
Pooling and Servicing Agreement, dated as of April 1, 2005, among Asset Backed
Funding Corporation, as depositor, Wells Fargo Bank, N.A., as servicer, Wells
Fargo Bank, N.A., as securities administrator, and Deutsche Bank National Trust
Company, as trustee (the "Agreement") are in its possession, and if indicated as
applicable in a separate writing delivered to the Custodian, that all documents
delivered to it pursuant to Section 2.01(f) of the Agreement are in its
possession; (b) such documents have been reviewed by it and appear regular on
their face and related to such Mortgage Loan, (c) each Mortgage Note has been
endorsed as provided in Section 2.01(a) of the Agreement and each Mortgage has
been assigned in accordance with Sections 2.01(c) and (d) of the Agreement and
(d) based on its examination of the documents in the Mortgage File and only as
to such documents, the Mortgage Loan information attached hereto as Schedule B
set forth for each Mortgage Loan on the related Mortgage Loan Schedule with
respect to such Mortgage Loan accurately reflects information set forth in the
related Mortgage File. The Custodian makes no representations as to (x) the
validity, legality, enforceability, sufficiency, due authorization or
genuineness of any of the documents contained in each Mortgage File or of any of
the Mortgage Loans or (y) the collectability, insurability, effectiveness or
suitability of any such Mortgage Loan.

         This Final Certification is not divisible or negotiable.

         The Trustee will accept and act on instructions with respect to the
Mortgage Loans subject hereto upon surrender of this Final Certification at its
office at 1015 10th Avenue, South East Minneapolis, Minnesota 55414.

                                      F-2-1
<PAGE>

         Capitalized terms used herein shall have the meaning ascribed to them
in the Agreement.

                                           WELLS FARGO BANK, N.A.,
                                           as Custodian

                                           By:
                                                --------------------------------

                                           Name:
                                                  ------------------------------

                                           Title:
                                                   -----------------------------

                                      F-2-2
<PAGE>

                       SCHEDULE A - TO FINAL CERTIFICATION

                                   EXCEPTIONS

                          (ON FILE WITH THE CUSTODIAN)

                                      F-2-3

<PAGE>

                       SCHEDULE B - TO FINAL CERTIFICATION

                            MORTGAGE LOAN INFORMATION

1.  Loan Identification Number

2.  Mortgagor's Name

3.  State and Zip Code of Mortgaged Property

4.  Initial Mortgage Interest Rate

5.  Original Principal Balance

6.  Scheduled Maturity Date

7.  Initial Monthly Payment

8.  Initial Payment Date

9.  Gross Margin (for Adjustable Rate Mortgage Loans)

10. Initial Adjustment Date (for Adjustable Rate Mortgage Loans)

11. Maximum Mortgage Interest Rate (for Adjustable Rate Mortgage Loans)

12. Minimum Mortgage Interest Rate (for Adjustable Rate Mortgage Loans)

13. Periodic Interest Rate (for Adjustable Rate Mortgage Loans)

14. Prepayment Charge Term (if applicable)

15. Prepayment Charge Amount (if applicable)

                                      F-2-4

<PAGE>

                                   EXHIBIT F-3

                        FORM OF RECEIPT OF MORTGAGE NOTE

Asset Backed Funding Corporation
214 North Tryon Street
21st Floor
Charlotte, North Carolina 28255

Deutsche Bank National Trust Company
1761 East St. Andrew Place
Santa Ana, California 92705

         Re:  ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates, Series
              2005-WF1

Ladies and Gentlemen:

         Pursuant to Section 2.01 of the Pooling and Servicing Agreement, dated
as of April 1, 2005, among Asset Backed Funding Corporation, as depositor, Wells
Fargo Bank, N.A., as servicer, Wells Fargo Bank, N.A., as securities
administrator, and Deutsche Bank National Trust Company, as trustee, we hereby
acknowledge the receipt of the original Mortgage Note, or, with respect to any
lost Mortgage Note, an original Lost Note Affidavit, together with a copy of the
related Mortgage Note (a copy of which is attached hereto as Exhibit 1) with any
exceptions thereto listed on Exhibit 2.

                                         WELLS FARGO BANK, N.A.,
                                             as Custodian

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

                                      F-3-1
<PAGE>

                                    EXHIBIT G

                        MORTGAGE LOAN PURCHASE AGREEMENT

                     (ON FILE WITH SECURITIES ADMINISTRATOR)

                                      G-1

<PAGE>

                                    EXHIBIT H

                           FORM OF LOST NOTE AFFIDAVIT

         I, ________________ being duly sworn, do hereby state under oath that:

1.       I as _______________ [title] of Wells Fargo Bank, N.A., (the "Seller"),
         am authorized to make this Affidavit on behalf of the seller.

2.       The Seller is the current payee under the following described mortgage
         note (the Note"):

                                    Loan No:          ((LoanNumber))

                                    Borrower(s):      ((BorrowersNames)

                                    Original Amount:  $((LoanAmt))

                                    Rate of Interest: ((InterestRate))%

         Address of Mortgaged Property: ((Address)), ((City)), ((State)) ((Zip))

3.       The Note was not located after a thorough and diligent search.

4.       Attached hereto is a true and correct copy of the Note, endorsed in
         blank by Lender.

5.       The Seller hereby agrees to indemnify and hold harmless, its
successors, and assigns, against any loss, from the unavailability of the
original Note, provided that in no event shall the Seller be liable for special
or consequential damages with respect to the foregoing, including but not
limited to, any claim for lost profits.

                                            EXECUTED THIS ___ day of ______, on
                                            behalf of the Seller by:

                                            -------------------------------
                                            [Name]

         On ____ day of _____________, before me appeared _________________ to
me personally known, who being, duly sworn did say that she is the ____________
of Wells Fargo Bank, N.A., and that said Lost Note Affidavit was signed and
sealed on behalf of such corporation and said ________________ acknowledged this
instrument to be the free act of deed of said corporation.

--------------------------------------
                  Notary Public in and for the ___________________

                                       My Commission expires: __________________

                                      H-1
<PAGE>

                                    EXHIBIT I

                          FORM OF ERISA REPRESENTATION

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, Maryland 21045

Asset Backed Funding Corporation
214 North Tryon Street
21st Floor
Charlotte, North Carolina 28255

    Re:  ABFC 2005-WF1 Trust, ABFC Asset-Backed Certificates, Series 2005-WF1

Ladies and Gentlemen:

         1. [The undersigned is the ______________________ of ________________
(the "Transferee") a [corporation duly organized] and existing under the laws of
__________, on behalf of which he makes this affidavit.] [The undersigned,
___________________, is the transferee (the "Transferee").]

         2. The Transferee hereby acknowledges that under the terms of the
Pooling and Servicing Agreement (the "Agreement") dated as of April 1, 2005,
among Asset Backed Funding Corporation, as depositor (the "Depositor"), Wells
Fargo Bank, N.A. as servicer (the "Servicer"), Wells Fargo Bank, N.A., as
securities administrator (the "Securities Administrator"), and Deutsche Bank
National Trust Company, as trustee (the "Trustee"), no transfer of the
ERISA-Restricted Certificates shall be permitted to be made to any person unless
the Depositor and the Certificate Registrar (as defined in the Agreement) have
received a certificate from such transferee in the form hereof.

         3. The Transferee either (x) (i) is not an employee benefit plan
subject to Section 406 or Section 407 of the Employee Retirement Income Security
Act of 1974, as amended ("ERISA"), or Section 4975 of the Internal Revenue Code
of 1986, as amended (the "Code") or any materially similar provisions of
applicable federal, state or local law ("Similar Law"), the Trustee of any such
plan or a person acting on behalf of any such plan nor a person using the assets
of any such plan or (ii) (except in the case of the Class R, Class CE and Class
P Certificates) is an insurance company which is purchasing such Certificates
with funds contained in an "insurance company general account" (as such term is
defined in Section V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE
95-60") and that the purchase and holding of such Certificates are covered under
Sections I and III of PTCE 95-60 or (y) (except in the case of the Class R
Certificate) shall deliver to the Certificate Registrar and the Depositor an
opinion of counsel (a "Benefit Plan Opinion") satisfactory to the Certificate
Registrar, and upon which the Certificate Registrar and the Depositor shall be
entitled to rely, to the effect that the purchase or holding of such Certificate
by the Transferee will not constitute or result in a non-exempt prohibited
transaction within the meaning of ERISA or Section 4975 of the Code (or similar
provisions of Similar Law) and will not subject the Securities Administrator or
the Depositor to any obligation in addition to those undertaken by such entities
in the Pooling and Servicing Agreement, which opinion of counsel shall not be an
expense of the Securities Administrator or the Depositor.

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

         IN WITNESS WHEREOF, the Transferee has executed this certificate.

                                        ----------------------------------------
                                        [Transferee]

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

                                      I-1

<PAGE>

                                    EXHIBIT J

                    FORM OF INVESTMENT LETTER [NON-RULE 144A]

                                                                          [DATE]

Asset Backed Funding Corporation
214 North Tryon Street
21st Floor
Charlotte, North Carolina 28255

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, Maryland 21045

Ladies and Gentlemen:

         In connection with our acquisition of the ABFC 2005-WF1 Trust, ABFC
Asset-Backed Certificates, Series 2005-WF1 (the "Certificates"), we certify that
(a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we are an
"accredited investor," as defined in Regulation D under the Act, and have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) we are acquiring the Certificates for investment
for our own account and not with a view to any distribution of such Certificates
(but without prejudice to our right at all times to sell or otherwise dispose of
the Certificates in accordance with clause (g) below), (e) we agree that the
Certificates must be held indefinitely by us and we acknowledge that we are able
to bear the economic risk of investment in the Certificates, (f) we have not
offered or sold any Certificates to, or solicited offers to buy any Certificates
from, any person, or otherwise approached or negotiated with any person with
respect thereto, or taken any other action which would result in a violation of
Section 5 of the Act, (g) we will not sell, transfer or otherwise dispose of any
Certificates unless (1) such sale, transfer or other disposition is made
pursuant to an effective registration statement under the Act or is exempt from
such registration requirements, and if requested, we will at our expense provide
an opinion of counsel satisfactory to the addressees of this Certificate that
such sale, transfer or other disposition may be made pursuant to an exemption
from the Act, (2) the purchaser or transferee of such Certificate has executed
and delivered to you a certificate to substantially the same effect as this
certificate, and (3) the purchaser or transferee has otherwise complied with any
conditions for transfer set forth in the Pooling and Servicing Agreement and (h)
we acknowledge that the Certificates will bear a legend setting forth the
applicable restrictions on transfer.

                                         Very truly yours,

                                         [NAME OF TRANSFEREE]

                                         By:
                                            ------------------------------------
                                             Authorized Officer

                                      J-1

<PAGE>

             FORM OF RULE 144A INVESTMENT LETTER
                           [DATE]

Asset Backed Funding Corporation
214 North Tryon Street
21st Floor
Charlotte, North Carolina  28255

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, Maryland 21045

Re:      ABFC 2005-WF1 Trust, ABFC Asset-Backed
         Certificates, Series 2005-WF1
         ---------------------------------------

Ladies and Gentlemen:

         In connection with our acquisition of the ABFC 2005-WF1 Trust, ABFC
Asset-Backed Certificates, Series 2005-WF1 (the "Certificates"), we certify that
(a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we have had the
opportunity to ask questions of and receive answers from the Depositor
concerning the purchase of the Certificates and all matters relating thereto or
any additional information deemed necessary to our decision to purchase the
Certificates, (c) we have not, nor has anyone acting on our behalf offered,
transferred, pledged, sold or otherwise disposed of the Certificates, any
interest in the Certificates or any other similar security to, or solicited any
offer to buy or accept a transfer, pledge or other disposition of the
Certificates, any interest in the Certificates or any other similar security
from, or otherwise approached or negotiated with respect to the Certificates,
any interest in the Certificates or any other similar security with, any person
in any manner, or made any general solicitation by means of general advertising
or in any other manner, or taken any other action, that would constitute a
distribution of the Certificates under the Securities Act or that would render
the disposition of the Certificates a violation of Section 5 of the Securities
Act or require registration pursuant thereto, nor will act, nor has authorized
or will authorize any person to act, in such manner with respect to the
Certificates, (d) we are a "qualified institutional buyer" as that term is
defined in Rule 144A under the Securities Act and have completed either of the
forms of certification to that effect attached hereto as Annex 1 or Annex 2. We
are aware that the sale to us is being made in reliance on Rule 144A. We are
acquiring the Certificates for our own account or for resale pursuant to Rule
144A and further, understand that such Certificates may be resold, pledged or
transferred only (i) to a person reasonably believed to be a qualified
institutional buyer that purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given that the resale, pledge or
transfer is being made in reliance on Rule 144A, and who executes a
certification in the form of this letter and a certification in the form of
either Annex 1 or Annex 2 attached hereto, or (ii) pursuant to another exemption
from registration under the Securities Act.

                                   Very truly yours,

                                   [NAME OF TRANSFEREE]

                                   By:
                                      ---------------------------------------
                                       Authorized Officer

                                      J-2
<PAGE>

                                                            ANNEX 1 TO EXHIBIT J

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

 [For Transferees Other Than Registered Investment Companies]

         The undersigned (the "Buyer") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:

         i. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

         ii. In connection with purchases by the Buyer, the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("Rule 144A") because (i) the Buyer owned
and/or invested on a discretionary basis $_______ (1) in securities (except for
the excluded securities referred to below) as of the end of the Buyer's most
recent fiscal year (such amount being calculated in accordance with Rule 144A
and (ii) the Buyer satisfies the criteria in the category marked below.

         ___ Corporation, etc. The Buyer is a corporation (other than a bank,
         savings and loan association or similar institution), Massachusetts or
         similar business trust, partnership, or charitable organization
         described in Section 501(c)(3) of the Internal Revenue Code of 1986, as
         amended.

         ___ Bank. The Buyer (a) is a national bank or banking institution
         organized under the laws of any State, territory or the District of
         Columbia, the business of which is substantially confined to banking
         and is supervised by the State or territorial banking commission or
         similar official or is a foreign bank or equivalent institution, and
         (b) has an audited net worth of at least $25,000,000 as demonstrated in
         its latest annual financial statements, a copy of which is attached
         hereto.

         ___ Savings and Loan. The Buyer (a) is a savings and loan association,
         building and loan association, cooperative bank, homestead association
         or similar institution, which is supervised and examined by a State or
         Federal authority having supervision over any such institutions or is a
         foreign savings and loan association or equivalent institution and (b)
         has an audited net worth of at least $25,000,000 as demonstrated in its
         latest annual financial statements, a copy of which is attached hereto.

         ___ Broker-dealer. The Buyer is a dealer registered pursuant to Section
         15 of the Securities Exchange Act of 1934.

         ___ Insurance Company. The Buyer is an insurance company whose primary
         and predominant business activity is the writing of insurance or the
         reinsuring of risks underwritten by insurance companies and which is
         subject to supervision by the insurance commissioner or a similar
         official or agency of a State, territory or the District of Columbia.

         ___ State or Local Plan. The Buyer is a plan established and maintained
         by a State, its political subdivisions, or any agency or
         instrumentality of the State or its political subdivisions, for the
         benefit of its employees.

         ___ ERISA Plan. The Buyer is an employee benefit plan within the
         meaning of Title I of the Employee Retirement Income Security Act of
         1974.

         ___ Investment Advisor. The Buyer is an investment advisor registered
         under the Investment Advisors Act of 1940.

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

                                      J-3
<PAGE>

         ___ Small Business Investment Company. Buyer is a small business
         investment company licensed by the U.S. Small Business Administration
         under Section 301(c) or (d) of the Small Business Investment Act of
         1958.

         ___ Business Development Company. Buyer is a business development
         company as defined in Section 202(a)(22) of the Investment Advisors Act
         of 1940.

         iii. The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer, (ii) securities that
are part of an unsold allotment to or subscription by the Buyer, if the Buyer is
a dealer, (iii) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iv) bank deposit notes and certificates of deposit,
(v) loan participations, (vi) repurchase agreements, (vii) securities owned but
subject to a repurchase agreement and (viii) currency, interest rate and
commodity swaps.

         iv. For purposes of determining the aggregate amount of securities
owned and/or invested on a discretionary basis by the Buyer, the Buyer used the
cost of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934, as
amended.

         v. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.

         vi. Until the date of purchase of the Rule 144A Securities, the Buyer
will notify each of the parties to which this certification is made of any
changes in the information and conclusions herein. Until such notice is given,
the Buyer's purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan is provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

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

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

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

                                      J-4
<PAGE>

                                                            ANNEX 2 TO EXHIBIT J

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

 [For Transferees That are Registered Investment Companies]

         The undersigned (the "Buyer") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:

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

         2. In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in SEC Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, as
amended and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used, except (i) where the Buyer or the Buyer's Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value, and (ii) no current information with respect to the
cost of those securities has been published. If clause (ii) in the preceding
sentence applies, the securities may be valued at market.

         ___ The Buyer owned $_______ in securities (other than the excluded
         securities referred to below) as of the end of the Buyer's most recent
         fiscal year (such amount being calculated in accordance with Rule
         144A).

         ___ The Buyer is part of a Family of Investment Companies which owned
         in the aggregate $_______ in securities (other than the excluded
         securities referred to below) as of the end of the Buyer's most recent
         fiscal year (such amount being calculated in accordance with Rule
         144A).

         3. The term "Family of Investment Companies" as used herein means two
or more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

         4. The term "securities" as used herein does not include (i) securities
of issuers that are affiliated with the Buyer or are part of the Buyer's Family
of Investment Companies, (ii) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iii) bank deposit notes and certificates of deposit,
(iv) loan participations, (v) repurchase agreements, (vi) securities owned but
subject to a repurchase agreement and (vii) currency, interest rate and
commodity swaps.

         5. The Buyer is familiar with Rule 144A and understands that the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates are relying and will continue to rely on the statements
made herein because one or more sales to the Buyer will be in reliance on Rule
144A. In addition, the Buyer will only purchase for the Buyer's own account.

                                      J-5
<PAGE>

         6. Until the date of purchase of the Certificates, the undersigned will
notify the parties listed in the Rule 144A Transferee Certificate to which this
certification relates of any changes in the information and conclusions herein.
Until such notice is given, the Buyer's purchase of the Certificates will
constitute a reaffirmation of this certification by the undersigned as of the
date of such purchase.

                                   ------------------------------------------
                                   Print Name of Buyer or Adviser

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

                                   IF AN ADVISER:

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

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

                                      J-6
<PAGE>

                                    EXHIBIT K

                 FORM OF CLASS R CERTIFICATE TRANSFER AFFIDAVIT

                              ABFC 2005-WF1 TRUST,
                 ABFC ASSET-BACKED CERTIFICATES, SERIES 2005-WF1

STATE OF      )
              ) ss.:
COUNTY OF     )

         The undersigned, being first duly sworn, deposes and says as follows:

         1. The undersigned is [an officer of] _____________, the proposed
Transferee of an Ownership Interest in the Class R Certificates (the
"Certificate") issued pursuant to the Pooling and Servicing Agreement, (the
"Agreement"), relating to the above-referenced Certificates, among Asset Backed
Funding Corporation, as depositor, Wells Fargo Bank, N.A., as servicer, Wells
Fargo Bank, N.A., as securities administrator (the "Securities Administrator")
and Deutsche Bank National Trust Company, as trustee. Capitalized terms used,
but not defined herein shall have the meanings ascribed to such terms in the
Agreement. The Transferee has authorized the undersigned to make this affidavit
on behalf of the Transferee.

         2. The Transferee is, as of the date hereof, and will be, as of the
date of the Transfer, a Permitted Transferee. The Transferee is acquiring its
Ownership Interest in the Certificates either (i) for its own account or (ii) as
nominee, trustee or agent for another Person and has attached hereto an
affidavit from such Person in substantially the same form as this affidavit. The
Transferee has no knowledge that any such affidavit is false.

         3. The Transferee has been advised of, and understands that (i) a tax
will be imposed on Transfers of the Certificate to Persons that are a
Disqualified Organization; (ii) such tax will be imposed on the transferor, or,
if such Transfer is through an agent (which includes a broker, nominee or
middleman) for a Person that is a Disqualified Organization, on the agent; and
(iii) the Person otherwise liable for the tax shall be relieved of liability for
the tax if the subsequent Transferee furnished to such Person an affidavit that
such subsequent Transferee is not a Disqualified Organization and, at the time
of Transfer, such Person does not have actual knowledge that the affidavit is
false.

         4. The Transferee has been advised of, and understands that a tax will
be imposed on a "pass-through entity" holding the Certificate if at any time
during the taxable year of the pass-through entity a Person that is a
Disqualified Organization is the record holder of an interest in such entity.
The Transferee understands that such tax will not be imposed for any period with
respect to which the record holder furnishes to the pass-through entity an
affidavit that such record holder is not a Disqualified Organization and the
pass-through entity does not have actual knowledge that such affidavit is false.
(For this purpose, a "pass-through entity" includes a regulated investment
company, a real estate investment trust or common trust fund, a partnership,
trust or estate, and certain cooperatives and, except as may be provided in
Treasury Regulations, persons holding interests in pass-through entities as a
nominee for another Person.)

         5. The Transferee has reviewed the provisions of Section 5.02(d) of the
Agreement and understands the legal consequences of the acquisition of an
Ownership Interest in the Certificate including, without limitation, the
restrictions on subsequent Transfers and the provisions regarding voiding the
Transfer and mandatory sales. The Transferee expressly agrees to be bound by and
to abide by the provisions of Section 5.02(d) of the Agreement and the
restrictions noted on the face of the Certificate. The Transferee understands
and agrees that any breach of any of the representations included herein shall
render the Transfer to the Transferee contemplated hereby null and void.

                                      K-1
<PAGE>

         6. The Transferee agrees to require a Transfer Affidavit from any
Person to whom the Transferee attempts to Transfer its Ownership Interest in the
Certificate, and in connection with any Transfer by a Person for whom the
Transferee is acting as nominee, trustee or agent, and the Transferee will not
Transfer its Ownership Interest or cause any Ownership Interest to be
Transferred to any Person that the Transferee knows is not a Permitted
Transferee. In connection with any such Transfer by the Transferee, the
Transferee agrees to deliver to the Securities Administrator a certificate
substantially in the form set forth in this Exhibit L to the Agreement (a
"Transferor Certificate") to the effect that such Transferee has no actual
knowledge that the Person to which the Transfer is to be made is not a Permitted
Transferee.

         7. The Transferee does not have the intention to impede the assessment
or collection of any tax legally required to be paid with respect to the
Certificate.

         8. The taxpayer identification number of the Transferee's nominee is
_________________.

         9. The Transferee is a U.S. Person as defined in Code Section
7701(a)(30).

         10. The Transferee is aware that the Certificate may be a "noneconomic
residual interest" within the meaning of Treasury regulations promulgated
pursuant to the Code and that the transferor of a noneconomic residual interest
will remain liable for any taxes due with respect to the income on such residual
interest, unless no significant purpose of the transfer was to impede the
assessment or collection of tax.

         11. The Transferee has filed all required federal and state income tax
returns and has paid all federal and state income tax due and intends to file
and pay all such returns and taxes in the future.

         12. The Transferee historically has paid its debts as they come due and
fully intends to be financially able to pay its debts, including any and all tax
liabilities, as they become due.

         13. The Transferee understands that, as the holder of an Ownership
Interest in a Certificate, it may incur tax liabilities in excess of any cash
flows generated by such Ownership Interest and intends to pay all taxes
associated with holding such Ownership Interest as such taxes become due.

         14. That the Transferee will not cause income from the Class R
Certificate to be attributable to a foreign permanent establishment or fixed
base, within the meaning of an applicable income tax treaty, of the Transferee
or any other person.

         15. That, if the Transferee is purchasing the Class R Certificate in a
transfer intended to meet the safe harbor provisions of Treasury Regulations
Sections 1.860E-1(c), the Transferee has executed and attached Attachment A
hereto.

         16. The Transferee is not an employee benefit plan that is subject to
ERISA or a plan that is subject to Section 4975 of the Code or a plan or
arrangement subject to any materially similar provisions of applicable federal,
state or local law, nor are we acting on behalf of such a plan.

                                      K-2
<PAGE>

         IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
duly authorized officer, duly attested, this _____ day of _________, 20__.

                                        [NAME OF TRANSFEREE]

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

[Corporate Seal]

ATTEST:

[Assistant] Secretary

         Personally appeared before me the above-named _________, known or
proved to me to be the same person who executed the foregoing instrument and to
be the _________ of the Transferee, and acknowledged that he executed the same
as his free act and deed and the free act and deed of the Transferee.

         Subscribed and sworn before me this       day of          , 20  .
                                             -----        ---------    --

                                    ----------------------------------------
                                    NOTARY PUBLIC

                                    My Commission expires the ________ day
                                    of ____________, 20__.

                                      K-3
<PAGE>

                                  ATTACHMENT A

                                       to

                   AFFIDAVIT PURSUANT TO SECTION 860E(e)(4) OF
                  THE INTERNAL REVENUE CODE OF 1986, AS AMENDED

Check the appropriate box:

/_/      The consideration paid to the Transferee to acquire the Class R
Certificate equals or exceeds the excess of (a) the present value of the
anticipated tax liabilities over (b) the present value of the anticipated
savings associated with holding such Certificate, in each case calculated in
accordance with U.S. Treasury Regulations Sections 1.860E-1(c)(7) and (8),
computing present values using a discount rate equal to the short-term Federal
rate prescribed by Section 1274(d) of the Code and the compounding period used
by the Transferee.

         OR

/_/      The transfer of the Class R Certificate complies with U.S. Treasury
Regulations Sections 1.860E-1(c)(5) and (6) and, accordingly:

                  (i) the Transferee is an "eligible corporation," as defined in
         U.S. Treasury Regulations Section 1.860E-1(c)(6)(i), as to which income
         from Class R Certificate will only be taxed in the United States;

                  (ii) at the time of the transfer, and at the close of the
         Transferee's two fiscal years preceding the year of the transfer, the
         Transferee had gross assets for financial reporting purposes (excluding
         any obligation of a person related to the Transferee within the meaning
         of U.S. Treasury Regulations Section 1.860E-1(c)(6)(ii)) in excess of
         $100 million and net assets in excess of $10 million;

                  (iii) the Transferee will transfer the Class R Certificate
         only to another "eligible corporation," as defined in U.S. Treasury
         Regulations Section 1.860E-1(c)(6)(i), in a transaction that satisfies
         the requirements of Sections 1.860E-1(c)(4)(i), (ii) and (iii) and
         Section 1.860E-1(c)(5) of the U.S. Treasury Regulations;

                  (iv) the Transferee has determined the consideration paid to
         it to acquire the Class R Certificate based on reasonable market
         assumptions (including, but not limited to, borrowing and investment
         rates, prepayment and loss assumptions, expense and reinvestment
         assumptions, tax rates and other factors specific to the Transferee)
         that it has determined in good faith; and

                  (v) in the event of any transfer of the Class R Certificate by
         the Transferee, the Transferee will require its transferee to complete
         a representation in the form of this Attachment A as a condition of the
         transferee's purchase of the Class R Certificate.

                                      K-4
<PAGE>

                                    EXHIBIT L

                         FORM OF TRANSFEROR CERTIFICATE

                                                       [DATE]

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, Maryland 21045

Asset Backed Funding Corporation
214 North Tryon Street
21st Floor
Charlotte, North Carolina  28255

Re:      ABFC 2005-WF1 Trust, ABFC Asset-Backed
         Certificates, Series 2005-WF1
         ---------------------------------------

Ladies and Gentlemen:

         In connection with our disposition of the ABFC 2005-WF1 Trust, ABFC
Asset-Backed Certificates, Series 2005-WF1 (the "Certificates"), we certify that
(a) we understand that the Certificates have not been registered under the
Securities Act of 1933, as amended (the "Act"), and are being disposed by us in
a transaction that is exempt from the registration requirements of the Act, (b)
we have not offered or sold any Certificates to, or solicited offers to buy any
Certificates from, any person, or otherwise approached or negotiated with any
person with respect thereto, in a manner that would be deemed, or taken any
other action which would result in, a violation of Section 5 of the Act, (c) to
the extent we are disposing of the Class R Certificate, we have no knowledge the
Transferee is not a Permitted Transferee and (d) no purpose of the proposed
disposition of the Class R Certificate is to impede the assessment or collection
of tax.

                                        Very truly yours,

                                        [---------------------]

                                        By: ______________________________

                                      L-1

<PAGE>

                                    EXHIBIT M

                    MONTHLY INFORMATION DELIVERED BY SERVICER

1.       With respect to each Loan Group and the Mortgage Pool, the number and
         Principal Balances of the related Mortgage Loans which were the subject
         of Principal Prepayments during the related Prepayment Period.

2.       With respect to each Loan Group and the Mortgage Pool, the amount of
         all curtailments which were received during the related Prepayment
         Period.

3.       With respect to each Loan Group and the Mortgage Pool, the aggregate
         amount of the principal portion of all Monthly Payments received during
         the related Collection Period.

4.       With respect to each Loan Group and the Mortgage Pool, the amount of
         interest received on the Mortgage Loans during the related Collection
         Period.

5.       With respect to each Loan Group and the Mortgage Pool, the aggregate
         amount of the Advances made and recovered with respect to such
         Distribution Date.

6.       With respect to each Loan Group and the Mortgage Pool, the aggregate
         amount of the Servicing Advances made and recovered with respect to
         such Distribution Date.

7.       With respect to each Loan Group and the Mortgage Pool, the delinquency
         and foreclosure information and the amount of Mortgage Loan Losses
         during the related Collection Period.

8.       The information contained in the Liquidation Report for the related
         Collection Period.

9.       With respect to each Loan Group and the Mortgage Pool, the weighted
         average maturity, the weighted average Mortgage Interest Rate and the
         weighted average Net Mortgage Interest Rate as of the last day of the
         Collection Period preceding the related Interest Accrual Period.

10.      The Servicing Fees paid and Servicing Fees accrued during the related
         Collection Period.

11.      The Credit Risk Manager Fees paid and Credit Risk Manager Fees accrued
         during the related Collection Period.

12.      The amount of all payments or reimbursements to the Servicer paid or to
         be paid since the prior Distribution Date (or in the case of the first
         Distribution Date, since the Closing Date).

13.      The Pool Balance and the aggregate Principal Balance of the Mortgage
         Loans.

14.      With respect to each Loan Group and the Mortgage Pool, the number of
         Mortgage Loans outstanding at the beginning and at the end of the
         related Collection Period.

15.      The aggregate interest accrued on the Mortgage Loans, at their
         respective Mortgage Interest Rates for the related Collection Period.

16.      The amount deposited in the Collection Account which may not be
         withdrawn therefrom pursuant to an Order of a United States Bankruptcy
         Court of competent jurisdiction imposing a stay pursuant to Section 362
         of U.S. Bankruptcy Code.

17.      The aggregate Realized Losses in the Mortgage Pool since the Cut-off
         Date as of the end of the related Collection Period.

18.      The amount of Prepayment Charges received, the amount of Servicer
         Prepayment Charge Payment Amounts paid, and the reason for any
         Prepayment Charges waived without a corresponding Servicer Prepayment
         Charge Payment Amount, all for the related Collection Period.

19.      The amount of Yield Maintenance Agreement Payments received on each
         Yield Maintenance Agreement with respect to such Distribution Date.

                                      M-1
<PAGE>

                                   EXHIBIT N-1

                  FORM OF YIELD MAINTENANCE AGREEMENT RELATING
                         TO THE CLASS A-1 CERTIFICATES

                     (ON FILE WITH SECURITIES ADMINISTRATOR)

                                      N-1-1

<PAGE>

                                   EXHIBIT N-2

        FORM OF YIELD MAINTENANCE AGREEMENT RELATING TO THE CLASS A-2A,
                     CLASS A-2B AND CLASS A-2C CERTIFICATES

                    (ON FILE WITH SECURITIES ADMINISTRATOR)

                                      N-2-1

<PAGE>

                                   EXHIBIT N-3

              FORM OF YIELD MAINTENANCE AGREEMENT RELATING TO THE
               CLASS M-1, CLASS M-2, CLASS M-3, CLASS M-4, CLASS
                M-5, CLASS M-6, CLASS M-7, CLASS M-8, CLASS M-9,
                 CLASS M-10, CLASS B-1, CLASS B-2 AND CLASS B-3
                                  CERTIFICATES

                     (ON FILE WITH SECURITIES ADMINISTRATOR)

                                      N-3-1
<PAGE>

                                    EXHIBIT O

                              FORM OF CERTIFICATION

                              ABFC 2005-WF1 TRUST,
                ABFC ASSET-BACKED CERTIFICATES, SERIES 2005-WF1

         I, [identify the certifying individual] certify that:

1.       I have reviewed the annual report on Form 10-K, and all Monthly Form
         8-K's containing Distribution Date Statements filed in respect of
         periods included in the year covered by this annual report, of the ABFC
         2005-WF1 Trust;

2.       Based on my knowledge, the information in these reports, taken as a
         whole, does not contain any untrue statement of a material fact or omit
         to state a material fact necessary to make the statements made, in
         light of the circumstances under which such statements were made, not
         misleading as of the last day of the period covered by this annual
         report;

3.       Based on my knowledge, the distribution or servicing information
         required to be provided to the Trustee by the Servicer under the
         Pooling and Servicing Agreement, dated as of April 1, 2005 (the
         "Agreement"), among Asset Backed Funding Corporation, as depositor,
         Wells Fargo Bank, N.A., as servicer (the "Servicer"), Wells Fargo Bank,
         N.A., as securities administrator (the "Securities Administrator"), and
         Deutsche Bank National Trust Company, as trustee (the "Trustee") for
         inclusion in these reports is included in these reports;

4.       Based on my knowledge and upon the annual compliance statement included
         in the annual report on Form 10-K and required to be delivered to the
         Trustee in accordance with the terms of the Agreement, and except as
         disclosed in the reports, the Servicer has fulfilled its obligations
         under the Agreement;

5.       The reports disclose all significant deficiencies relating to the
         Servicer's compliance with the minimum servicing standards based upon
         the report provided by an independent public accountant, after
         conducting a review in compliance with the Uniform Single Attestation
         Program for Mortgage Bankers or similar procedure, as set forth in the
         Agreement, that is included in these reports; and

6.       In giving the certifications above, I have reasonably relied on
         information provided to me by the following unaffiliated parties: Wells
         Fargo Bank, N.A. and Deutsche Bank National Trust Company.

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

                                      O-1
<PAGE>

                                   EXHIBIT P-1

             FORM OF CERTIFICATION TO BE PROVIDED BY THE SECURITIES
                         ADMINISTRATOR TO THE DEPOSITOR

                              ABFC 2005-WF1 TRUST,
                ABFC ASSET-BACKED CERTIFICATES, SERIES 2005-WF1

         The Securities Administrator hereby certifies to Asset Backed Funding
Corporation and its officers, directors and affiliates, and with the knowledge
and intent that they will rely upon this certification, that:

1.       The Securities Administrator has reviewed the annual report on Form
         10-K for the fiscal year [___], and all reports on Form 8-K containing
         distribution reports filed in respect of periods included in the year
         covered by that annual report, relating to the above-referenced Trust;

2.       Subject to paragraph (4), the distribution information in the
         distribution reports contained in all monthly Form 8-K's included in
         the year covered by the annual report on Form 10-K for the calendar
         year [____], taken as a whole, does not contain any untrue statement of
         a material fact or omit to state a material fact required by the
         Pooling and Servicing Agreement to be included therein and necessary to
         make the statements made, in light of the circumstances under which
         statements were made, not misleading as of the last day of the period
         covered by that annual report;

3.       The distribution information required to be provided by the Securities
         Administrator under the Pooling and Servicing Agreement is included in
         these reports; and

4.       In compiling the distribution information and making the foregoing
         certifications, I have relied upon information furnished to me by the
         Servicer under the Pooling and Servicing Agreement. The Securities
         Administrator shall have no responsibility or liability for any
         inaccuracy in such reports resulting from information so provided by
         the Servicer.

                                        WELLS FARGO BANK, N.A.,
                                        as Securities Administrator

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

                                     P-1-1
<PAGE>

                                   EXHIBIT P-2

                  FORM OF CERTIFICATION TO BE PROVIDED BY THE
                           SERVICER TO THE DEPOSITOR

                              ABFC 2005-WF1 TRUST,
                ABFC ASSET-BACKED CERTIFICATES, SERIES 2005-WF1

         I, [identify the certifying individual], certify to Asset Backed
Funding Corporation and its officers, directors and affiliates, and with the
knowledge and intent that they will rely upon this certification, that:

1.                I have reviewed the annual report on Form 10-K for the
         calendar year [___], and all Monthly Form 8-K's containing Distribution
         Date Statements filed in respect of periods included in the year
         covered by that annual report, of the ABFC 2005-WF1 Trust;

2.                Based on my knowledge, the servicing information in the
         Distribution Date Statements contained in all Monthly Form 8-K's
         included in the year covered by the annual report on Form 10-K for the
         calendar year [___], taken as a whole, does not contain any untrue
         statement of a material fact or omit to state a material fact necessary
         to make the statements made, in light of the circumstances under which
         such statements were made, not misleading as of the last day of the
         period covered by that annual report;

3.                Based on my knowledge, the servicing information required to
         be provided to the Trustee by the Servicer under the Pooling and
         Servicing Agreement, dated as of April 1, 2005 (the "Agreement"), among
         Asset Backed Funding Corporation, as depositor, Wells Fargo Bank, N.A.,
         as servicer (the "Servicer"), Wells Fargo Bank, N.A., as securities
         administrator (the "Securities Administrator"), and Deutsche Bank
         National Trust Company, as trustee (the "Trustee"), for inclusion in
         these reports is included in these reports;

4.               I am responsible for reviewing the activities performed by the
         Servicer under the Agreement and based upon my knowledge and the annual
         compliance review required under the Agreement, and except as disclosed
         in the reports, the Servicer has fulfilled its obligations under the
         Agreement; and

5.                The reports disclose all significant deficiencies relating to
         the Servicer's compliance with the minimum servicing standards based
         upon the report provided by an independent public accountant, after
         conducting a review in compliance with the Uniform Single Attestation
         Program for Mortgage Bankers or similar procedure, as set forth in the
         Agreement, that is included in these reports.

                                         WELLS FARGO BANK, N.A.

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

                                      P-2-2

<PAGE>

                                   SCHEDULE I

                      WELLS FARGO PREPAYMENT CHARGE MATRIX

                            [INTENTIONALLY OMITTED]

                                      S-1Exhibit 10.26

                         EXECUTIVE EMPLOYMENT AGREEMENT

This Executive Employment Agreement ("Agreement") is made and effective this
23rd day of May, 2005, by and between Delta Mutual, Inc., a Delaware Corporation
(the "Company") and Martin G. Chilek (the "Executive").

Company desires to employ Executive and Executive desires to enter into the
employ of Company in such capacity and on the terms and conditions contained in
this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the
parties, intending to be legally bound, agree as follows:

1.  Employment.

Company hereby agrees to employ Executive as it's Vice President, Treasurer and
Chief Financial Officer and Executive hereby accepts such employment in
accordance with the terms of this Agreement and the terms of employment
applicable to employees of Company, in general. In the event of any conflict or
ambiguity between the terms of this Agreement and terms of employment applicable
to employees of the Company in general, the terms of this Agreement shall
prevail. Election or appointment of Executive to another office or position,
regardless of whether such office or position is inferior to Executive's initial
office or position, shall not be a breach of this Agreement. Executive hereby
represents and warrants that he has the legal capacity to execute and perform
this Agreement and that it is a valid and binding agreement against him
according to its terms. In addition, Executive represents and warrants that he
knows of no reason why he is not physically capable of performing his
obligations under this Agreement in accordance with its terms.

2. Duties of Executive.

Executive shall have such powers and duties as are commensurate with those
positions as described in Company's bylaws and as may be assigned to him from
time to time by Company's Board of Directors (the "Board) or Company's Chief
Executive Officer. Except for periods of illness or incapacity, and vacation
periods in accordance with Company's regular practice for executives, Executive
shall devote all of his business time, attention, skills and efforts exclusively
to the business and affairs of Company and its subsidiaries and shall perform
all his duties in a professional, ethical and business-like manner. Executive
will not, during the term of this Agreement, directly or indirectly engage in
any other business, either as an employee, employer, consultant, principal,
officer, director, advisor, or in any other capacity, either with or without
compensation, without the prior written consent of Company.

3. Compensation.

For all services rendered by Executive in any capacity required hereunder during
the term of this Agreement, including, without limitation, services as an
employee, officer, director, or member of any committee of Company, or any
subsidiary, affiliate or division thereof, Executive shall be compensated as
follows:

                                     Page 4

<PAGE>

      A.    A fixed salary of $132,000 per year ("Base Salary"), payable in
            accordance with the customary payroll practices of Company, but in
            no event less frequently than monthly. Notwithstanding the previous
            sentence of this paragraph 3.A., Executive agrees to accept a
            minimum monthly salary of $6,000 until such times as the financial
            condition of the Company (as determined by the Board, in its sole
            discretion) permits the payment of his full monthly salary of
            $11,000. Executive agrees that the Company will record as his
            accrued salary the difference (if any) between the actual monthly
            salary paid to Executive and $6,000 and that the Company shall have
            no further accrued salary liability to Executive. The Base Salary
            shall be reviewed not later than the end of each calendar year that
            Executive is employed by Company. Company may directly or indirectly
            withhold from any payments made under this Agreement all Federal,
            state, city, local or other taxes as shall be required pursuant to
            law or governmental regulation or ruling.

      B.    Bonus. Executive shall be included, in a manner consistent with his
            position, in any bonus system, bonus pool, incentive compensation,
            profit sharing, deferred compensation or similar plan or program for
            senior executives, officers or employees that may be implemented
            from time to time by the Board.

      C.    Stock Options. Executive shall be included, in a manner consistent
            with his position, in any stock option plan(s) for senior executives
            and/or employees of Company in general, that may be established from
            time to time by the Board.

      D.    Additional Benefits. Except as modified by this Agreement, Executive
            shall be entitled to participate in Company's group health insurance
            plan and any other benefit plans (including pension or retirement
            plans) as are made available to executives and/or the employees of
            Company in general. Notwithstanding the foregoing, nothing in this
            Agreement shall preclude the amendment or termination of Company's
            group health insurance plan or any other benefit plan or program,
            provided that such amendment or termination is applicable to all the
            employees of Company. In addition, Executive shall be entitled to be
            paid for vacation days and holidays in accordance with the Company's
            current policies for senior executives, provided that Executive
            shall be entitled to not less than fifteen (15) days of paid
            vacation per calendar year during the period that this Agreement is
            in effect. The carry-over of any unused vacation days will be
            governed by and in accordance with Company policy. Additional
            periods of absence due to illness, incapacity or personal leave, if
            any, shall be granted at the discretion of the Board which, in its
            sole discretion, may compensate Executive during periods of
            additional absence.

      E.    Business Expenses. Company shall pay or reimburse Executive for all
            reasonable, necessary and usual business expenses incurred by
            Executive in connection with the performance of his duties and
            obligations under this Agreement, subject to Executive's
            presentation of appropriate documentation and receipts and in
            accordance with such procedures as Company may from time to time
            establish for its executives, consistent with the need to preserve
            any deductions to which Company may be entitled for Federal tax
            purposes.

4.  Term and Termination.

A.    This Agreement shall commence on June 1, 2005 and shall continue in effect
      for a period of three (3) years (the "Initial Term"). Thereafter, the
      Initial Term shall be extended for additional one-year periods (the
      "Additional Term"), if neither party has given the other party notice of
      termination at least ninety (90) days prior to the end of the Initial Term
      or the then current Additional Term.

B.    Termination for Cause. Company may discharge Executive at any time for
      "Cause" which shall be defined as any of the following: 1) any act of
      fraud, misappropriation, self dealing, personal dishonesty or moral
      turpitude; 2) willful misconduct; 3) indictment of a crime that
      constitutes a felony; 4) breach by Executive of any of his obligations
      regarding confidential information as set forth in Section 5 of this
      Agreement; 5) if Executive fails or refuses (through habitual neglect or
      otherwise) to perform material assigned duties; 6) if Executive engages in
      conduct that causes material harm or damage to Company, including
      Company's reputation or standing; 7) any material violation of any Company
      policy, that is not cured within ten (10) days after receipt of written
      notice from Company; or 8) any material breach of any provision of this
      Agreement. In addition, subject to applicable law, Company may discharge
      Executive for "Cause" in the event Executive becomes physically or
      mentally disabled and is therefore substantially unable to carry out his
      duties for a period of 120 days or more in any twelve-month period. In the
      event of a termination for "Cause," Company shall provide five (5) days
      written notice to Executive ("Termination Notice") and Executive shall be
      ineligible for any additional Base Salary, severance or other payments or
      benefits under this Agreement or otherwise after the date of termination
      specified in the Termination Notice.

                                     Page 5

<PAGE>

C.    Other Termination. If Executive's employment is terminated by Company for
      any reason other than death or for "Cause" (as defined in Section 4.B.),
      or Company elects not to renew Executive's employment under this Agreement
      or to extend this Agreement for any Additional Term, then Company agrees
      to continue Executive's then current Base Salary for six (6) months or
      until such time as Executive commences other full-time employment,
      whichever occurs earlier. Executive may terminate this Agreement at any
      time by providing at least thirty (30) days written notice to Company
      ("Executive's Termination Notice"). If Executive terminates this
      Agreement, then Company may, upon receipt of Executive's Termination
      Notice, immediately relieve Executive of all his obligations and duties
      under this Agreement, provided that Executive's then current Base Salary
      and benefits shall continue until the date specified in Executive's
      Termination Notice.

D.    Termination for Change in Control. If Executive's employment is terminated
      without Cause upon a consolidation, merger or the sale of substantially
      all of the assets of Company to another corporation or entity in which
      Company is not the surviving entity, then Executive shall be entitled to
      receive a lump sum payment upon such termination equal to the greater of:
      1) 100% of his then current Base Salary plus 100% of his incentive
      compensation for the prior fiscal year; or 2) 100% of his then current
      Base Salary plus 100% of his projected annual incentive compensation for
      the remainder of the Initial Term or any Additional Term of this
      Agreement, and Executive shall not be entitled to any further payments
      pursuant to this Agreement.

5.    Other Duties During and After Term.

A.    Confidential Information. Executive recognizes and acknowledges that all
      information pertaining to the affairs, business, clients or customers of
      Company or any of its subsidiaries or affiliates (any or all of such
      entities being hereinafter referred to as the "Business"), as such
      information may exist from time to time, other than information that
      Company has previously made publicly available or which is in the public
      domain, is confidential information and is a unique and valuable asset of
      the Business, access to and knowledge of which are essential to the
      performance of Executive's duties under this Agreement. Executive shall
      not divulge to any person, firm, association, corporation or governmental
      agency, any information concerning the affairs, business, clients or
      customers of the Business (except such information as is required by law
      to be divulged to a government agency or pursuant to lawful process), or
      make use of any such information for his own purposes or for the benefit
      of any person, firm, association or corporation (except the Business) and
      shall use his reasonable best efforts to prevent the disclosure of any
      such information by others. All records, memoranda, letters, books,
      papers, reports, accountings, experience or other data, and other records
      and documents relating to the Business, whether made by Executive or
      otherwise coming into his possession, are confidential information and
      are, shall be, and remain property of the Business. No copies shall be
      made which are not retained by the Business, and Executive agrees, on
      termination of his employment or on demand of Company, to deliver the same
      to Company.

B.    Remedies. Company's obligation to make payments or provide for any
      benefits under this Agreement shall cease upon a violation of the
      preceding provision of this Section 5. Executive acknowledges that Company
      may be severely and irreparably damaged in the event Executive violates
      the provision of Section 5.A. above, and that the extent of damage may be
      difficult or impossible to determine. Therefore, Executive agrees that in
      addition to equitable relief, including a preliminary as well as a
      permanent injunction (without the necessity of posting a bond).
      Executive's agreement as set forth in this Section 5 shall (i) continue
      throughout the duration of Executive's employment with Company; and (ii)
      survive Executive's termination of this Agreement and/or Executive's
      employment with Company, whether or not such termination is voluntary or
      is the result of termination of Executive by Company with or without
      Cause.

6.    Notices.

Any notice required by this Agreement or given in connection with it, shall be
in writing and shall be given to the appropriate party by personal delivery or
by certified mail, postage prepaid, or recognized overnight delivery services;

If to Company:

         Delta Mutual, Inc.
         Attn: Chief Executive Officer
         111 North Branch Street
         Sellersville, PA  18960

If to Executive:

         Martin G. Chilek
         27 Belmont Square
         Doylestown, PA  18901

                                     Page 6
<PAGE>

7. Final Agreement.
This Agreement supersedes all prior understandings or agreements (whether
written or oral) between Executive and Company or any of its subsidiaries and
affiliates and sets forth the entire understanding between the parties with
respect to the subject matter hereof. This Agreement may not be modified except
by written amendment duly executed by both parties.

8. Governing Law.
This Agreement shall be construed and enforced in accordance with the laws of
the Commonwealth of Pennsylvania.

9. Headings.
Headings used in this Agreement are provided for convenience only and shall not
be used to construe meaning or intent.

10  No Assignment.
Neither this Agreement nor any interest in this Agreement may be assigned by
Executive without the prior express written approval of Company, which may be
withheld by Company at Company's absolute discretion.

11. Severability.
If any provision of this Agreement or application thereof to anyone or under any
circumstances is adjudicated to be invalid or unenforceable in any jurisdiction,
then this Agreement, including all of the remaining terms, will remain in full
force and effect as if such invalid or unenforceable provision had never been
included.

12. Arbitration.
The parties agree that they will use their best efforts to amicably resolve any
dispute arising out of or relating to this Agreement. Any controversy, claim or
dispute that cannot be so resolved shall be settled by final binding arbitration
in accordance with the rules of the American Arbitration Association and
judgment upon the award rendered by the arbitrator or arbitrators may be entered
in any court having jurisdiction thereof. Any such arbitration shall be
conducted in Harrisburg, Pennsylvania, or such other place as may be mutually
agreed upon by the parties. Within fifteen (15) days after the commencement of
the arbitration, each party shall select one person to act as arbitrator, and
the two arbitrators so selected shall select a third arbitrator within ten (10)
days of their appointment. Each party shall bear its own costs and expenses and
an equal share of the arbitrator's expenses and administrative fees of
arbitration

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date first above written.

      DELTA MUTUAL, INC.

      By: /s/ Peter Russo
          ------------------------
          Peter F. Russo
          President & CEO

      EXECUTIVE

      By: /s/ Martin Chilek
          ------------------------
           Martin G. Chilek

                                     Page 7

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