Document:

EX-10.4

UNITEDHEALTH GROUP

STOCK APPRECIATION RIGHTS AWARD

(STOCK SETTLED)

Award Number:

	 	 	 	 	 	 	 
	Award Date

	 	Number of Shares
	 	Grant Price
	 	Expiration Date

THIS CERTIFIES THAT UnitedHealth Group Incorporated (the “Company”) has on the Award Date specified
above granted to

«Name»

(“Participant”) stock appreciation rights (the “Stock Appreciation Rights”) with respect to the
number of shares of UnitedHealth Group Incorporated Common Stock, $.01 par value per share (the
“Common Stock”), indicated above in the box labeled “Number of Shares” (the “Shares”). The initial
value of each Share is indicated above in the box labeled “Grant Price.” The Stock Appreciation
Rights that this Certificate represents are fully exercisable from the Award Date set forth above
until the Expiration Date. This Award is subject to the terms and conditions set forth below and
in the UnitedHealth Group Incorporated 2002 Stock Incentive Plan (the “Plan”). A copy of the Plan
is available upon request. In the event of any conflict between the terms of the Plan and this
Award, the terms of the Plan shall govern. Any terms not defined herein shall have the meaning set
forth in the Plan.

* * * * *

1. Rights of the Participant with Respect to the Stock Appreciation Rights.

(a) No Shareholder Rights. The Stock Appreciation Rights granted pursuant to this
Award do not and shall not entitle Participant to any rights of a shareholder of Common Stock prior
to the exercise of the Stock Appreciation Rights and the receipt of shares of Common Stock (the
“Issued Shares”) in accordance with this Award.

(b) Exercise of Stock Appreciation Rights; Issuance of Common Stock. No shares of
Common Stock shall be issued to Participant prior to the date on which the Stock Appreciation
Rights are exercised in accordance with Section 2. Upon exercise of the Stock Appreciation Rights,
Participant shall be entitled to receive a number of Issued Shares for each share with respect to
which the Stock Appreciation Rights are exercised equal to (i) the excess of the Fair Market Value
of one share on the date of exercise over the Grant Price, divided by (ii) the Fair Market Value of
one share on the date of exercise. The Issued Shares shall be issued in book-entry form,
registered in Participant’s name or in the name of Participant’s legal representatives,
beneficiaries or heirs, as the case may be. The Company will not deliver any fractional share of
Common Stock but will pay, in lieu thereof, cash equal to the Fair Market Value of such fractional
share.

2. Method of Exercise. The Stock Appreciation Rights may be exercised by delivery to
the Company of a written notice which shall state that Participant elects to exercise the Stock
Appreciation Rights as to the number of shares specified in the notice as of the date specified in
the notice.

3. Transfer. During Participant’s lifetime, only the Participant or a transferee
pursuant to clause (ii) of the following sentence can exercise the Stock Appreciation Rights.
Participant may not transfer the Stock Appreciation Rights except (i) by will or by the laws of
descent and distribution or pursuant to a qualified domestic relations order as defined by the Code
or Title I of the Employee Retirement Income Security Act or the rules promulgated thereunder or
(ii) by give to a “family member,” as such term is defined in the General Instructions to Form S-8
under the Securities Act of 1933 (or any successor form), of the Participant. Following a transfer
pursuant to clause (ii), no subsequent transfers pursuant to clause (ii) shall be permitted. Any
attempt to otherwise transfer the Stock Appreciation Rights shall be void.

4. Termination. The Stock Appreciation Rights granted pursuant to this Award shall
terminate on the date indicated above in the box labeled “Expiration Date.”

5. Departure of Participant from the Board. If Participant departs from the Board of
Directors of the Company for any reason, all Stock Appreciation Rights shall remain exercisable
until the Expiration Date. If Participant dies while in office as a director or following his or
her departure from the Board of Directors, Participant’s personal representatives or administrators
or any person or persons to whom the Stock Appreciation Rights are transferred by will or the
applicable laws of descent and distribution may exercise the Stock Appreciation Rights in
accordance with the terms of this Award and the Plan.

6. Adjustments to Stock Appreciation Rights. In the event that any dividend or other
distribution (whether in the form of cash, shares of Common Stock, other securities or other
property), recapitalization, stock split, reverse stock split, reorganization, merger,
consolidation, split-up, spin-off, combination, repurchase or exchange of Common Stock or other
securities of the Company or other similar corporate transaction or event affecting the Common
Stock would be reasonably likely to result in the diminution or enlargement of any of the benefits
or potential benefits intended to be made available under the Award (including, without limitation,
the benefits or potential benefits of provisions relating to the term or exercisability of the
Stock Appreciation Rights), the Committee shall, in such manner as it shall deem equitable or
appropriate in order to prevent such diminution or enlargement of any such benefits or potential
benefits, make adjustments to the Award, including adjustments in the number and type of Shares
subject to the Stock Appreciation Rights; provided, however, that the number of
shares of Common Stock into which the Stock Appreciation Rights may be exercised shall always be a
whole number.

7. Income Tax Matters.

(a) In order to comply with all applicable federal or state income tax laws or regulations,
the Company may take such action as it deems appropriate to ensure that all applicable federal or
state payroll, withholding, income or other taxes, which are the sole and absolute responsibility
of Participant, are withheld or collected from Participant.

(b) In accordance with the terms of the Plan, and such rules as may be adopted by the
Committee under the Plan, Participant may elect to satisfy Participant’s federal and state income
tax withholding obligations arising from the receipt of Issued Shares by (i) delivering cash, check
(bank check, certified check or personal check) or money order payable to the Company, (ii) having
the Company withhold a portion of the Issued Shares otherwise to be delivered having a Fair Market
Value equal to the amount of such taxes, or (iii) delivering to the Company shares of Common Stock
already owned by Participant having a Fair Market Value equal to the amount of such taxes. Any
shares already owned by Participant referred to in the preceding sentence must have been owned by
Participant for no less than six months prior to the date delivered to the Company if such shares
were acquired upon the exercise of an option or stock appreciation right or upon the vesting of
restricted stock or other restricted stock units. The Company will not deliver any fractional
share of Common Stock but will pay, in lieu thereof, cash equal to the Fair Market Value of such
fractional share. Participant’s election must be made on or before the date that the amount of tax
to be withheld is determined.

8. Miscellaneous.

(a) This Award does not confer on Participant any right to continue as a director, nor will it
interfere in any way with the right of the Company to terminate such directorship at any time.

(b) Neither the Plan nor this Award shall create or be construed to create a trust or separate
fund of any kind or a fiduciary relationship between the Company or any Affiliate and Participant
or any other Person. To the extent that any Person acquires a right to receive payments form the
Company or any Affiliate pursuant to an Award, such right shall be no greater than the right of any
unsecured creditor of the Company or any Affiliate.

(c) The Company shall not be required to deliver any shares of Common Stock upon exercise of
any Stock Appreciation Rights until the requirements of any federal or state securities laws, rules
or regulations or other laws or rules (including the rules of any securities exchange) as may be
determined by the Company to be applicable are satisfied.

(d) An original record of this Award and all the terms hereof, executed by the Company, is
held on file by the Company. To the extent there is any conflict between the terms contained in
this Award and the terms contained in the original held by the Company, the terms of the original
held by the Company shall control.EX-10.1

EXHIBIT 10.1

AMENDED AND RESTATED MORTGAGE LOAN PURCHASE AND SERVICING AGREEMENT, dated as of December 15,
2005 (as amended, supplemented or otherwise modified and in effect from time to time, the
“Purchase Agreement”), among VON KARMAN FUNDING TRUST, a Delaware statutory trust, as
purchaser (the “Purchaser”), NEW CENTURY MORTGAGE CORPORATION, a California corporation, as
seller and servicer (the “Company”, in its capacity as servicer hereunder, the
“Servicer” and in its capacity as seller hereunder, the “Seller”), and NEW CENTURY
FINANCIAL CORPORATION, a Maryland corporation, as performance guarantor (the “Performance
Guarantor”).

W I T N E S S E T H

WHEREAS, the Purchaser, the Seller and the Servicer entered into that certain Mortgage Loan
Purchase and Servicing Agreement, dated as of September 5, 2003 (the “Original Purchase
Agreement”);

WHEREAS, the Purchaser, the Seller and the Servicer desire to amend and restate the Original
Purchase Agreement in its entirety;

WHEREAS, pursuant to Section 12.2 of the Original Purchase Agreement, the Purchaser, the Swap
Counterparty, the Servicer and the Seller have consented to the amendment and restatement of the
Original Purchase Agreement on the terms set forth herein;

WHEREAS, pursuant to this Purchase Agreement, the Purchaser has agreed to purchase from the
Seller and the Seller has agreed to sell to the Purchaser from time to time Mortgage Loans
constituting Eligible Loans until the termination of this Purchase Agreement in accordance with
Section 11.1 hereof. The Company wishes to service each Mortgage Loan on behalf of the
Purchaser after the sale and purchase thereof.

WHEREAS, the Purchaser and the Company, as Seller and Servicer, wish to prescribe the manner
of purchase of the Mortgage Loans and the management, servicing and control of the Mortgage Loans.

WHEREAS, the Purchaser intends to sell the Mortgage Loans and the Servicer will arrange for
the sale of the Mortgage Loans on behalf of the Purchaser to Mortgage Loan Buyers.

WHEREAS, the Performance Guarantor has agreed to guarantee certain obligations of the Seller
in connection with this Purchase Agreement.

NOW, THEREFORE, in consideration of the mutual agreements hereinafter set forth, and for other
good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the
Purchaser, the Company, as the Seller and the Servicer, and the Performance Guarantor, agree as
follows:

ARTICLE 1

DEFINITIONS

Section 1.1 Definitions.

Certain capitalized terms used herein (including the preamble and the recitals hereto) shall
have the meanings assigned to such terms in the Definitions List attached to the Security
Agreement, dated as of December 15, 2005, between the Issuer and Deutsche Bank Trust Company
Americas, as Collateral Agent, as Schedule I thereto (the “Definitions List”), as such
Definitions List may be amended or modified from time to time in accordance with the provisions
thereof.

Section 1.2 Cross-References.

Unless otherwise specified, references in this Purchase Agreement and in each other Program
Document to any Article or Section are references to such Article or Section of this Purchase
Agreement or such other Program Document, as the case may be and, unless otherwise specified,
references in any Article, Section or definition to any clause are references to such clause of
such Article, Section or definition.

Section 1.3 Accounting and Financial Determinations; No Duplication.

Where the character or amount of any asset or liability or item of income or expense is
required to be determined, or any accounting computation is required to be made, for the purpose of
this Purchase Agreement, such determination or calculation shall be made, to the extent applicable
and except as otherwise specified in this Purchase Agreement, in accordance with GAAP. When used
herein, the term “financial statement” shall include the notes and schedules thereto. All
accounting determinations and computations hereunder or under any other Program Documents shall be
made without duplication.

Section 1.4 Rules of Construction.

In this Purchase Agreement, unless the context otherwise requires:

(a) the singular includes the plural and vice versa;

(b) reference to any Person includes such Person’s successors and assigns but, if applicable,
only if such successors and assigns are permitted by this Purchase Agreement, and reference to any
Person in a particular capacity only refers to such Person in such capacity;

(c) reference to any gender includes the other gender;

(d) reference to any Requirement of Law means such Requirement of Law as amended, modified,
codified or reenacted, in whole or in part, and in effect from time to time;

(e) “including” (and with correlative meaning “include”) means including without limiting the
generality of any description preceding such term; and

(f) with respect to the determination of any period of time, “from” means “from and including”
and “to” means “to but excluding”.

ARTICLE 2

SALE OF MORTGAGE LOANS; POSSESSION OF

MORTGAGE FILES; BOOKS AND RECORDS;

CUSTODIAL AGREEMENT; DELIVERY OF DOCUMENTS

Section 2.1 Sale of Mortgage Loans; Possession of Mortgage Loan Files; Maintenance of
Mortgage Loan Files.

(a) (i) From time to time, pursuant to any Transfer Supplement, the Seller may sell, transfer,
assign, set over and convey to the Purchaser, without recourse, but subject to the terms hereof,
all the right, title and interest of the Seller in and to each Mortgage Loan and any Additional
Balance related to any HELOC purchased by the Purchaser on a prior Closing Date identified on such
Transfer Supplement, including Wet Funded Loans; provided, however, that the Purchaser shall not at
any time be required to purchase Mortgage Loans or any Additional Balances having an aggregate
Outstanding Purchase Price greater than the sum of (i) the then-current Program Utilization Amount,
less (ii) the aggregate Outstanding Purchase Price of all Mortgage Loans (including any Additional
Balance previously purchased by the Purchaser with respect thereto) owned by the Purchaser at such
time; provided further, that each Mortgage Loan transferred on each Closing Date must be an
Eligible Loan; and provided, further, that any transfer of a HELOC on a Closing Date shall include
all right, title and interest of the Seller in, to and under such Mortgage Loan including its
unpaid principal balance on such Closing Date, but shall not include any future Draws on such
HELOC, which the Seller may elect to sell to the Purchaser as an Additional Balance on a subsequent
Closing Date. In connection with the sale of Mortgage Loans to the Purchaser, the Seller shall
sell, transfer, assign, set over and convey to the Purchaser all right, title and interest of the
Seller in and to the servicing rights related to such Mortgage Loans. The Seller shall provide a
notice to the Purchaser, the Servicer, the Indenture Trustee, the Collateral Agent and each Swap
Counterparty not later than 12:00 noon (New York City time) (where the Purchaser intends to issue
Secured Liquidity Notes to fund its purchase of a Portfolio on such day), or 4:00 p.m. (New York
City time) (where the Purchaser does not intend to issue Secured Liquidity Notes to fund its
purchase of a Portfolio on such day) on the Closing Date of its intention to sell a Portfolio to
the Purchaser pursuant to a Transfer Supplement. In such notice, the Seller shall inform the
Purchaser of the aggregate principal balance of the Mortgage Loans and Additional Balances that it
intends to sell on such date. The subject Portfolio and related servicing rights shall be sold by
the Seller to the Purchaser as described in Section 2.2 hereof. Each Transfer Supplement
shall be executed by the Seller and the Purchaser at the time of the sale of the subject Portfolio
and related servicing rights. Notwithstanding the foregoing, the Purchaser may not purchase any
(i) Mortgage Loans or Additional Balances during the continuation of an Extended Note Amortization
Event, or a Termination Event, or (ii) any Junior Loans or Additional Balances during the
continuation of a Junior Loan Exposure Trigger Event.

(ii) Upon execution of any Transfer Supplement by the Seller and the Purchaser and receipt of
the Initial Purchase Price therefor, the Seller hereby sells, assigns, transfers, sets over and
conveys to the Purchaser all right, title and interest of the Seller in, to and under each Mortgage
Loan, Additional Balances and any related servicing rights identified on such Transfer Supplement
(but excluding any Excluded Amounts with respect to any HELOCs). It is intended that the transfer,
assignment and conveyance herein contemplated constitute a sale of the Mortgage Loans and
Additional Balances, conveying good title thereto free and clear of any liens, by the Seller to the
Purchaser and that the Mortgage Loans, Additional Balances and related servicing rights not be part
of the Seller’s estate in the event of insolvency. In the event that the Mortgage Loans,
Additional Balances and related servicing rights are held to be property of the Seller or if for
any other reason any Transfer Supplement is held or deemed not to absolutely sell and assign the
Mortgage Loans, Additional Balances and related servicing rights, the parties intend that the
Seller shall be deemed to have granted, and does hereby grant, to the Purchaser a valid security
interest, free and clear of any lien, claim or interest of any other Person, in the Seller’s right,
title and interest in the Mortgage Loans, Additional Balances and all collateral related thereto
now existing or hereafter arising for the purpose of securing the rights of the Purchaser under
this Purchase Agreement (but excluding any Excluded Amounts with respect to any HELOCs), and that
this Purchase Agreement and the Transfer Supplement shall each constitute a security agreement
under applicable law.

(iii) Although Additional Balances may be sold by the Seller to the Purchaser on any Closing
Date pursuant to this Section 2.1, none of the Purchaser, the Indenture Trustee, the
Collateral Agent or any other Secured Party assumes the obligation under any HELOC that provides
for the funding of future Draws by the Mortgagor thereunder.

(b) Pursuant to Section 2.5 hereof, as soon as practicable but in any event on or
before the date which is seven (7) Business Days after the sale of any Mortgage Loan to the
Purchaser, the Seller shall deliver and release each related Mortgage Note, Mortgage and Assignment
of Mortgage, including Mortgage Notes, Mortgages and Assignments of Mortgages on Wet Funded Loans
(subject to the Wet Funded Loan Limitation), to the Custodian, as bailee, initially for the
Purchaser and then for the Collateral Agent pursuant to the Custodial Agreement; provided, however,
that any Mortgage Loan whose related Mortgage Note, Mortgage and Assignment of Mortgage are not
delivered on or before the date which is seven (7) Business Days after the sale of such Mortgage
Loan to the Purchaser shall be repurchased by the Seller on such seventh (7th) Business
Day at the Repurchase Price in accordance with Section 3.3 hereof; provided, further, that
any Mortgage Loan that is not repurchased by the Seller on or before a date which is ten (10) days
after the expiration of such seven (7) Business Day period shall be sold by the Servicer as soon as
practicable. The Seller shall deliver the related Loan Documents not delivered to the Custodian
(the “Servicing File”) to the Servicer and the contents of each related Servicing File
shall be held in trust by the Servicer, as bailee, for the benefit of the Purchaser as owner and
the Collateral Agent as secured party; provided, however, that the failure of the Seller to deliver
any such Loan Document, which failure does not have a material and adverse impact on the value of a
Mortgage Loan, shall not constitute a breach of this Purchase Agreement; provided, further, that
all Mortgage Notes, Mortgages and Assignments of Mortgages shall be delivered to the Custodian, as
bailee, initially for the Purchaser and then for the Collateral Agent, as provided in the first
sentence of this Section 2.1(b). The possession of each Servicing File by the Servicer is
at the will of the Purchaser for the sole purpose of servicing the related Mortgage Loan and such
retention and possession by the Servicer is in a custodial capacity only. Upon the sale of the
Mortgage Loans to the Purchaser, the ownership of each related Mortgage Note, Mortgage, Assignment
of Mortgage and the remainder of the Mortgage Loan File shall vest immediately in the Purchaser,
and the ownership of all other records and documents with respect to the related Mortgage Loan
prepared by or which come into the possession of the Servicer shall vest immediately in the
Purchaser and shall be retained and maintained by the Servicer, in trust, at the will of the
Purchaser and the Collateral Agent and only in such custodial capacity. Each Servicing File and
the Servicer’s books and records shall be marked appropriately to reflect clearly the sale of the
related Mortgage Loans to the Purchaser. The Custodian shall only release its custody of the
Mortgage Notes, Mortgages, Assignments of Mortgages and other contents of a Mortgage Loan File in
its possession in accordance with the Custodial Agreement.

The Mortgage Loan File shall consist of the following documents (constituting, collectively,
the “Loan Documents”) and such other documents as the Purchaser may reasonably require from
time to time:

(i) the original Mortgage Note or, if such Mortgage Note is lost, a certified copy
thereof along with a Lost Note Affidavit and Indemnity substantially in the form attached to
the Custodial Agreement as Exhibit F, and the original of any guarantee executed in
connection with the Mortgage Note (if any);

(ii) the original Mortgage with evidence of recording thereon. If in connection with
each Mortgage Loan, the Seller cannot deliver or cause to be delivered the original Mortgage
with evidence of recording thereon on or prior to the Closing Date because of a delay caused
by the public recording office where such Mortgage has been delivered for recordation or
because such Mortgage has been lost or because such public recording office retains the
original recorded Mortgage, the Seller shall deliver or cause to be delivered to the
Custodian, (a) in the case of a delay caused by the public recording office, a photocopy of
such Mortgage, together with an Officer’s Certificate of the Seller stating that such
Mortgage has been dispatched to the appropriate public recording office for recordation and
that the original recorded Mortgage or a copy of such Mortgage certified by such public
recording office to be a true and complete copy of the original recorded Mortgage will be
promptly delivered to the Custodian upon receipt thereof by the Seller or (b) in the case of
a Mortgage where a public recording office retains the original recorded Mortgage or in the
case where a Mortgage is lost after recordation in a public recording office, a photocopy of
such Mortgage certified by such public recording office to be a true and complete copy of
the original recorded Mortgage. Any provision in this Purchase Agreement or any other
Program Document that requires a Mortgage to be delivered within seven (7) Business Days
after the sale of the related Mortgage Loan to the Purchaser shall be deemed complied with
if, under the circumstances described in the immediately preceding sentence, the document(s)
described in clause (a) or (b) of such sentence, as applicable, are
delivered within such seven (7) Business Day period;

(iii) the originals of all assumption, modification, consolidation or extension
agreements, with evidence of recording thereon;

(iv) except with respect to a MERS Mortgage (which shall not require an assignment),
the original duly executed Assignment of Mortgage for each Mortgage Loan, in form and
substance acceptable for recording; if the Mortgage Loan was acquired by the Seller in a
merger, any Assignment of Mortgage (other than with respect to a MERS Mortgage, which shall
not require an assignment) must be made by “[Seller], successor by merger to [name of
predecessor].” If the Mortgage Loan was acquired or originated by the Seller while doing
business under another name, any Assignment of Mortgage (other than with respect to a MERS
Mortgage, which shall not require an assignment) must be by “[Seller], formerly known as
[previous name].” If the Mortgage Loan was acquired by the Seller as receiver for another
entity, any Assignment of Mortgage (other than with respect to a MERS Mortgage, which shall
not require an assignment) must be by “[Seller], receiver for [name of entity in
receivership].” Any Assignment of Mortgage must be duly recorded only if recordation is
required as provided in Section 12.9 hereof. If any Assignment of Mortgage is to be
recorded, the Mortgage shall be assigned to the Custodian. If any Assignment of Mortgage is
not to be recorded but is otherwise required hereunder, such Assignment of Mortgage shall be
delivered in blank. If such original Assignment of Mortgage has been sent for recording but
has not been returned from the applicable recording office or has been lost or if such
public recording office retains the original Assignment of Mortgage, the Seller shall
deliver or cause to be delivered to the Servicer, (a) in the case of a delay caused by the
public recording office, a photocopy of such Assignment of Mortgage, together with an
Officer’s Certificate of the Seller stating that such Assignment of Mortgage has been
dispatched to the appropriate public recording office for recordation and that such
Assignment of Mortgage or a copy of such Assignment of Mortgage certified by the appropriate
public recording office to be a true and complete copy of the original Assignment of
Mortgage will be promptly delivered to the Servicer upon receipt thereof by the Seller or
(b) in the case of an Assignment of Mortgage where a public recording office retains the
original Assignment of Mortgage or in a case where an Assignment of Mortgage is lost after
recordation in a public recording office, a copy of such Assignment of Mortgage certified by
such public recording office to be a true and complete copy of the original Assignment of
Mortgage;

(v) the originals of all intervening assignments of mortgage from any Person not an
Affiliate of the Seller, with evidence of recording thereon (if such recording is necessary
as represented in Section 3.2 (cc) hereof), 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 assignment of mortgage, the Seller
shall deliver or cause to be delivered to the Servicer, (a) in the case of a delay caused by
the public recording office, a photocopy of such intervening assignment, together with an
Officer’s Certificate of the Seller stating that such intervening assignment of mortgage has
been dispatched to the appropriate public recording office for recordation and that such
original recorded intervening assignment of mortgage or a copy of such intervening
assignment of mortgage 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 Servicer upon receipt thereof by the Seller or (b) in the case of an
intervening assignment where a public recording office retains the original recorded
intervening assignment or in a 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;

(vi) if available, either (a) the original mortgagee title insurance policy or, if the
policy has not yet been issued, the irrevocable written commitment, interim binder or marked
up binder for a title insurance policy issued by the title insurance company dated and
certified as of the date the Mortgage Loan was funded, or (b) the original attorney’s
opinion of title; and

(vii) the original of any security agreement, chattel mortgage or equivalent document
executed in connection with the Mortgage.

(c) It is the intention of this Purchase Agreement that each conveyance of the Seller’s right,
title and interest in and to each Mortgage Loan pursuant to this Purchase Agreement and any
Transfer Supplement shall constitute a purchase and sale and not a loan.

Section 2.2 Determination of Initial Purchase Price.

No later than 8:00 p.m. (New York City time) on the Business Day prior to each Closing Date,
the Seller shall deliver to the Purchaser and each Swap Counterparty via email or facsimile a
statement setting forth (i) the approximate aggregate unpaid principal balance of mortgage loans
proposed to be sold to the Purchaser on the related Closing Date (for purposes of this paragraph,
the “Additional Mortgage Loans”), and (ii) the Reference Agent’s calculation (the
“Preliminary Mark”), using the method set forth on Annex A to each Interest Rate Swap, of
the Market Value of the expected pool comprised of the Additional Mortgage Loans together with all
of the Mortgage Loans owned by the Purchaser as of the end of funding on the day the Preliminary
Mark is delivered. Each of the Swap Counterparties shall have the right to dispute the Preliminary
Mark, provided that, if notice of such dispute is not received by the Seller before
10:00 a.m. (New York City time) on the Closing Date (after receipt of the Preliminary Mark), all of
the Swap Counterparties will be deemed to have agreed with such Preliminary Mark. If the Purchaser
or any Swap Counterparty does not agree with the Preliminary Mark, the Purchaser, the Seller and
the appropriate Swap Counterparty shall each use their best efforts to agree on a revised
Preliminary Mark. If a revised Preliminary Mark is agreed or the disputing party withdraws its
objection, such revised or the original Preliminary Mark (as the case may be) shall automatically
become the calculation of Market Value for any Mortgage Loans acquired by the Purchaser on such
Closing Date. If the parties are unable to agree upon the Preliminary Mark, or the sale does not
close for any other reason, the Seller shall, at its option, (x) proceed with the sale at the
highest Market Value acceptable to all the Swap Counterparties, or (y) abandon the sale or
reschedule it to a later date.

No later than 12.00 noon (New York City time) (where the Purchaser intends to issue Secured
Liquidity Notes to fund its purchase of a Portfolio on such day) on each Closing Date (or 4:00 p.m.
(New York City time) where the Purchaser does not intend to issue Secured Liquidity Notes to fund
its purchase of a Portfolio on such day), the Seller shall deliver to the Purchaser a Transfer
Supplement and shall notify the Purchaser of its calculation of the Initial Purchase Price for each
Mortgage Loan and Additional Balance in the Portfolio, based on the foregoing determination of
Market Value. If the Purchaser does not agree with any purchase calculation or the sale does not
close for any other reason, the Closing Date for the Portfolio shall be rescheduled to a later
date, at its option, by the Seller. The Purchaser and the Seller shall use their best efforts to
close the sale of any Portfolio on any such Closing Date. The Purchaser shall pay to the Seller
the Initial Purchase Price of each Mortgage Loan and Additional Balance purchased by it hereunder,
in immediately available funds not later than 5:00 p.m. (New York City time), on the Closing Date.
Each Mortgage Loan must be an Eligible Loan.

Section 2.3 Purchase Commitment Term.

Subject to the terms and conditions of the Program Documents, the commitment of the Purchaser
under this Purchase Agreement shall expire on the termination of this Purchase Agreement, pursuant
to Section 11.1 hereof.

Section 2.4 Books and Records; Transfers of Mortgage Loans.

From and after each related Closing Date, all rights arising with respect to each Mortgage
Loan sold pursuant to any Transfer Supplement, including but not limited to all funds received on
or in connection with each Mortgage Loan, shall be received and held by the Servicer in trust for
the benefit of the Purchaser, except as is otherwise set forth in Section 4.27 with respect
to Excluded Amounts. Pursuant to the Custodial Agreement, the Custodian shall hold all of the
Mortgage Notes, Mortgages and Assignments of Mortgages as described in the Custodial Agreement.

The Servicer shall be responsible for maintaining, and shall maintain, a complete set of books
and records for each Mortgage Loan which shall be marked clearly to reflect the ownership of each
Mortgage Loan by the Purchaser. To the extent that original documents are not required for
purposes of realization of Liquidation Proceeds or Insurance Proceeds, documents maintained by the
Servicer may be in the form of microfilm or microfiche or such other reliable means of recreating
original documents, including but not limited to, optical imagery techniques so long as the
Servicer complies with its Customary Servicing Procedures.

The Servicer shall maintain with respect to each Mortgage Loan and shall make available for
inspection by the Purchaser, the Collateral Agent, any SLN Placement Agent, the Indenture Trustee,
the Depositary or their respective designees, upon reasonable advance notice, at the offices of the
Servicer during normal business hours the related Servicing File during the time the Purchaser
retains ownership of a Mortgage Loan and thereafter pursuant to applicable laws and regulations.

Section 2.5 Custodial Agreement.

Pursuant to the Custodial Agreement, the Seller shall, from time to time in connection with
the purchase of Mortgage Loans pursuant to the terms of this Purchase Agreement, deliver to the
Custodian, on or before the date which is seven (7) Business Days after the related Closing Date,
the Mortgage Note, Mortgage and Assignment of Mortgage with respect to each Mortgage Loan
transferred. The Custodian shall hold each Mortgage Note, Mortgage and Assignment of Mortgage in
trust, as bailee, initially for the Purchaser and then for the Collateral Agent pursuant to the
Custodial Agreement.

Section 2.6 Capital Contribution.

To the extent that the Market Value of any Portfolio sold by the Seller to the Purchaser on
the related Closing Date exceeds the Initial Purchase Price paid by the Purchaser to the Seller for
such Portfolio, such excess shall be a capital contribution by the Seller to the Purchaser.

	 	 	 
	Section 2.7

	 	[RESERVED].
	
 
	 	 
	Section 2.8

	 	Junior Loan Exposure Trigger Event.
	
 
	 	 

Upon the occurrence of a Junior Loan Exposure Trigger Event, the Purchaser will no longer be
permitted or obligated to purchase additional Junior Loans or Additional Balances. If a Junior
Loan Exposure Trigger Event occurs, the Servicer shall use commercially reasonable efforts to sell
all Junior Loans within sixty (60) days of the date on which such Junior Loan Exposure Trigger
Event occurred. In the event that all Junior Loans have not been so sold on such sixtieth (60th)
day the Collateral Agent shall hold an auction (a “Junior Loan Exposure Trigger Event
Auction”) of the remaining Junior Loans for settlement not later than the seventy-fifth (75th)
day following the date on which such Junior Loan Exposure Trigger Event occurred. The Collateral
Agent shall notify potential bidders, including the Rated Bidder and each Swap Counterparty of the
Junior Loan Exposure Trigger Event Auction. Any Swap Counterparty may bid in such auction, and the
Collateral Agent shall sell the Junior Loans to the highest bidder.

ARTICLE 3

REPRESENTATIONS AND WARRANTIES;

COVENANTS; REMEDIES AND BREACH

Section 3.1 Representations and Warranties of the Company.

The Company, as Seller and Servicer, represents and warrants to the Purchaser (and for the
benefit of the Collateral Agent and the Secured Parties) and each Swap Counterparty that as of each
applicable Closing Date:

(a) Due Organization and Authority. The Company is duly organized, validly existing
and in good standing under the laws of California and has all licenses necessary to carry on its
business as now being conducted and is licensed, qualified and in good standing in each state where
a Mortgaged Property is located if required to conduct business of the type conducted by it, and in
any event the Company is in compliance with the laws of any such state to the extent necessary to
ensure the enforceability of any Mortgage Loan or Additional Balance sold hereunder and the
servicing of any such Mortgage Loan in accordance with the terms of this Purchase Agreement and any
Transfer Supplement, except where the failure to hold such license or qualification, or be in such
good standing or compliance with law, would not have a material adverse effect on its ability to
perform its obligations hereunder; the Company has the full power and authority to execute and
deliver this Purchase Agreement and any Transfer Supplement and to perform its obligations in
accordance herewith and therewith; the execution, delivery and performance of this Purchase
Agreement and any Transfer Supplement by the Company and the performance of the transactions
contemplated hereby and thereby have been duly and validly authorized by the Company; all requisite
corporate action has been taken by the Company to make this Purchase Agreement and any Transfer
Supplement valid and binding upon the Company pursuant to its terms; this Purchase Agreement and
any Transfer Supplement each evidences the valid, binding and enforceable obligation of the Company
except that (i) the enforceability thereof may be limited by bankruptcy, insolvency, moratorium,
receivership and other similar laws relating to creditors’ rights generally and (ii) the remedy of
specific performance and injunctive and other forms of equitable relief may be subject to equitable
defenses and to the discretion of the court before which any proceeding therefor may be brought.

(b) Ordinary Course of Business. The performance of the transactions contemplated by
this Purchase Agreement are in the ordinary course of business of the Company, and the transfer,
assignment and conveyance of the Mortgage Notes and the Mortgages by the Company pursuant to this
Purchase Agreement are not subject to the bulk transfer or any similar statutory provisions in
effect in any applicable jurisdiction.

(c) No Conflicts. None of the execution and delivery of this Purchase Agreement or
any Transfer Supplement, the origination or acquisition of Mortgage Loans by the Company, the sale
of Mortgage Loans or Additional Balances to the Purchaser or the transactions contemplated hereby
or thereby, or the fulfillment of or compliance with the terms and conditions of this Purchase
Agreement or any Transfer Supplement, will conflict with or result in a breach of any of the terms,
conditions or provisions of the Company’s charter or by-laws or any material agreement or
instrument to which the Company is now a party or by which it is bound, or constitute a default or
result in an acceleration under any of the foregoing, or result in the violation in any material
respect of any applicable law, rule, regulation, order, judgment or decree to which the Company, or
its property is subject, or impair the ability of the Purchaser to realize on the Mortgage Loans in
any material respect, or impair the value of the Mortgage Loans in any material respect.

(d) Ability to Service. The Company as Servicer services mortgage loans in accordance
with its Customary Servicing Procedures. The Company as Servicer has the facilities, procedures
and experienced personnel necessary for the servicing of the Mortgage Loans. There are no
sub-servicers hereunder as of the date of this Purchase Agreement and the Servicer will terminate
any sub-servicer hereunder within ninety (90) days after being directed to do so by the Required
Senior Noteholders or the Required Subordinated Noteholders.

(e) Reasonable Servicing Fee. The Servicer acknowledges and agrees that the Servicing
Fee represents reasonable compensation for servicing, administering and arranging for the sale of
the Mortgage Loans pursuant to this Purchase Agreement and 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 Purchase Agreement.

(f) No Litigation Pending. Other than as disclosed on the most recent 10-K and 10-Q
filings with the Securities Exchange Commission by New Century Financial Corporation, there is no
action, suit, proceeding or investigation pending or to its knowledge threatened against the
Company which (x) is reasonably likely to be adversely determined, and (y), if adversely
determined, would be reasonably likely, either in any one instance or in the aggregate, to (i)
result in any material impairment of the right or ability of the Company to carry on its business
substantially as now conducted, (ii) draw into question the validity of this Purchase Agreement or
any Transfer Supplement or the Mortgage Loans or of any action taken or to be taken in connection
with the obligations of the Company contemplated herein, or (iii) impair materially the ability of
the Company to perform under the terms of this Purchase Agreement or any Transfer Supplement.

(g) No Consent Required. No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and performance by the Company
of or compliance with this Purchase Agreement or any Transfer Supplement or the sale of the
Mortgage Loans and Additional Balances, or if required, such consent, approval, authorization or
order has been obtained.

(h) Selection Process. Any Portfolio of Mortgage Loans sold pursuant to a Transfer
Supplement was selected from mortgage loans originated by the Seller or acquired by the Seller from
third parties and are Mortgage Loans which satisfy the Eligibility Criteria (other than the
Eligibility Representations, which are the subject of the representations set forth in Section
3.2 hereof), Portfolio Criteria and Wet Funded Loan Limitation, and any selection process
employed by it was not made in a manner so as to materially adversely affect the interest of the
Purchaser.

(i) No Untrue Information. None of this Purchase Agreement, any Transfer Supplement
or any statement, report or other document prepared by the Company or to be prepared by the Company
pursuant to this Purchase Agreement or in connection with the transactions contemplated hereby
contains any untrue statement of a material fact relating to the Company or the Mortgage Loans or
omits to state a fact necessary to make the statements herein or therein, under the circumstances
in which they were made, not misleading.

(j) Financial Statements. The financial statements of New Century Financial
Corporation, copies of which have been furnished to the Purchaser, (i) are, as of the dates and for
the periods referred to therein, complete and correct in all material respects, (ii) present fairly
the financial condition and results of operations of New Century Financial Corporation as of the
dates and for the periods indicated and (iii) have been prepared in accordance with GAAP
consistently applied, except as noted therein (subject as to interim statements to normal year-end
adjustments). Since the date of the most recent financial statements, there has been no change
which has had a material adverse effect with respect to New Century Financial Corporation. Except
as disclosed in such financial statements, New Century Financial Corporation is not subject to any
contingent liabilities or commitments that, individually or in the aggregate, have a reasonable
likelihood of having a material adverse effect with respect to New Century Financial Corporation.

(k) No Brokers’ Fees. The Seller has not dealt with any broker, investment banker,
agent or other Person that may be entitled to any commission or compensation in connection with the
sale of each Mortgage Loan to the Purchaser.

(l) Fair Consideration. The consideration received by the Seller in connection with
the sale of the Mortgage Loans and Additional Balances under this Purchase Agreement constitutes
fair consideration and reasonably equivalent value for the Mortgage Loans and Additional Balances.

(m) Ability to Perform. The Company does not believe, nor does it have reason or
cause to believe, that it cannot perform the covenants contained in this Purchase Agreement in all
material respects. The Company is not insolvent, nor will it be made insolvent by the sale of the
Mortgage Loans to the Purchaser, nor is the Company aware of any pending insolvency, and the sale
of the Mortgage Loans to the Purchaser is not undertaken to hinder, delay or defraud any of the
Company’s creditors.

(n) Company’s Origination. The Company’s decision to originate any mortgage loan or
to deny any mortgage loan application is an independent decision based upon the Company’s
underwriting standards, and is in no way made as a result of the Purchaser’s commitment to purchase
Mortgage Loans pursuant to this Purchase Agreement.

(o) Furnishing of Information. The Seller has fully furnished and will continue to
fully furnish, in accordance with the Fair Credit Reporting Act and its implementing regulations,
accurate and complete information (e.g., favorable and unfavorable) on its borrower credit files to
Equifax, Experian and Trans Union Credit Information Company or their successors (the “Credit
Repositories”) on a monthly basis.

(p) Proper Approvals. The Company is an approved originator/servicer for Fannie Mae
or Freddie Mac in good standing and is a HUD approved mortgagee pursuant to Section 203 and Section
211 of the National Housing Act.

(q) Chief Executive Office. The principal place of business and chief executive
office of each Seller is located and has been located within the state of California for the five
year period prior to the date of this Agreement. The “location” of the Seller as defined in the
UCC is in the State of California. The Seller has not changed its jurisdiction of formation during
the five year period prior to the date of this Purchase Agreement.

(r) No Prior Names. The exact legal name of the Seller is, and during the five-year
period prior to this Purchase Agreement has been, the name set forth for it on the signature page
hereto and the Seller has not had (i) any prior name nor (ii) any trade names.

(s) Prior Security Agreements. The Seller is not bound under Section 9-203(d) of the
Uniform Commercial Code by a security agreement that grants a security interest in any Mortgage
Loan previously entered into by another person or entity.

Section 3.2 Representations and Warranties Regarding Individual Mortgage Loans;
Eligibility Representations.

With respect to each Mortgage Loan sold by the Seller to the Purchaser, the Seller hereby
represents and warrants to the Purchaser (and for the benefit of the Collateral Agent and the
Secured Parties) and each Swap Counterparty that as of each applicable Closing Date:

(a) Eligibility of Mortgage Loans. The Mortgage Loan is an Eligible Loan.

(b) Mortgage Loans as Described. The information set forth in the Mortgage Loan
Schedule attached to the applicable Transfer Supplement is complete, true and correct in all
material respects.

(c) Valid First or Second Lien. The Mortgage is a valid, subsisting and enforceable
first or second lien of record (or is in the process of being recorded) on the Mortgaged Property,
including all buildings on the Mortgaged Property, and all additions, alterations and replacements
made at any time with respect to the foregoing, except that (i) the enforceability thereof may be
limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to
creditors’ rights generally and (ii) the remedy of specific performance and injunctive and other
forms of equitable relief may be subject to equitable defenses and to the discretion of the court
before which any proceeding therefor may be brought. The lien of the Mortgage is subject only to:

(1) the lien of current real property taxes and assessments not yet due and payable;

(2) covenants, conditions and restrictions, rights of way, easements and other matters
of the public record as of the date of recording acceptable to mortgage lending institutions
generally and specifically referred to in the lender’s title insurance policy, or attorney’s
opinion of title and (i) referred to or otherwise considered in the appraisal made for the
originator of the Mortgage Loan, or (ii) which do not adversely affect the appraised value
of the Mortgaged Property set forth in such appraisal;

(3) other matters to which like properties are commonly subject which do not materially
interfere with the benefits of the security intended to be provided by the Mortgage or the
use, enjoyment, value or marketability of the related Mortgaged Property; and

(4) with respect to each Second Lien Mortgage Loan or HELOC, a prior mortgage lien on
the related Mortgaged Property.

Any security agreement, chattel mortgage or equivalent document related to and delivered in
connection with the Mortgage Loan establishes and creates a valid, subsisting and enforceable (A)
first lien and first priority security interest with respect to each First Lien Mortgage Loan, or
(B) second lien and second priority security interest with respect to each Second Lien Mortgage
Loan, in either case, on the property described therein and the Seller has full right to sell and
assign the same to the Purchaser. The Mortgaged Property was not, as of the date of the
origination of the Mortgage Loan, subject to a mortgage, deed of trust, deed to secure debt or
other security instrument creating a lien senior to the lien of the Mortgage, except liens as set
forth in this Section 3.2(c).

(d) Ownership. The Seller is the sole owner of record and holder of the Mortgage
Loan. The Mortgage Loan is not assigned or pledged, and the Seller has good and marketable title
thereto, and has full right to transfer and sell the Mortgage Loan to the Purchaser free and clear
of any encumbrance, equity, participation interest, lien, pledge, charge, claim or security
interest, and has full right and authority, subject to no interest or participation of, or
agreement with, any other party, to sell and assign the Mortgage Loan pursuant to the related
Transfer Supplement.

(e) No Additional Collateral. The Mortgage Note is not and has not been secured by
any collateral except the lien of the corresponding Mortgage and the security interest of any
applicable security agreement or chattel mortgage referred to in Section 3.2(c) hereof.

(f) Conformance with Underwriting Standards. The Mortgage Loan was originated by the
Company, an Affiliate of the Seller or a broker for simultaneous assignment to the Seller or was
acquired by the Seller from a correspondent lender. The Mortgage Loan was underwritten (or, if
acquired by the Seller from a correspondent lender, re-underwritten) to comply with the Seller’s
underwriting standards (including, as applicable, underwriting standards applicable to HELOCs,
Interest Only Loans and Affordability Loans) in effect on the date of origination (or, if acquired
by the Seller from a correspondent lender, on the date of acquisition) of such Mortgage Loan.

(g) Payments Current. The Mortgage Loan is not a Delinquent Loan.

(h) No Mortgagor Bankruptcy. To the best of the Seller’s knowledge and belief, no
Mortgagor is the subject of a bankruptcy or similar proceeding.

(i) No Outstanding Charges. To the best of the Seller’s knowledge and belief, all
taxes, governmental assessments, insurance premiums, water, sewer and municipal charges, leasehold
payments or ground rents with respect to the Mortgaged Property which previously became due and
owing have been paid, or an escrow of funds has been established in an amount sufficient to pay for
every such item which remains unpaid and which has been assessed but is not yet due and payable.
Except with respect to Draws under HELOCs, the Company has not advanced funds, or induced,
solicited or knowingly received any advance of funds by a party other than the Mortgagor, directly
or indirectly, for the payment of any amount required under the Mortgage Loan, except for interest
accruing from the date of the Mortgage Note or date of disbursement of the Mortgage Loan proceeds,
whichever is greater, to the day which precedes by one (1) month the Due Date of the first
installment of principal and interest.

(j) Original Terms Unmodified. The terms of the Mortgage Note and Mortgage have not
been impaired, waived, altered or modified in any material respect from the date of origination
except by a written instrument which has been recorded, if necessary, to protect the interests of
the Purchaser, and which has been delivered to the Custodian or the Servicer, as required
hereunder.

(k) No Defenses. To the best of the Seller’s knowledge and belief, the Mortgage Loan
is not subject to any right of rescission, set-off, counterclaim or defense, including without
limitation the defense of usury, and no such right of rescission, set-off, counterclaim or defense
has been asserted with respect thereto, nor will the operation of any of the terms of the Mortgage
Note or the Mortgage, or the exercise of any right thereunder, render either the Mortgage Note or
the Mortgage unenforceable, in whole or in part, or subject the Mortgage Note or the Mortgage to
any right of rescission, set-off, counterclaim or defense, including without limitation the defense
of usury, and no Mortgagor was a debtor in any state or federal bankruptcy or insolvency proceeding
at the time the Mortgage Loan was originated.

(l) Hazard Insurance. Pursuant to the terms of the Mortgage, all buildings or other
improvements upon the Mortgaged Property are insured against loss by fire and hazards of extended
coverage pursuant to insurance policies conforming to the requirements of Section 4.11
hereof. If upon origination of the Mortgage Loan, the Mortgaged Property was in an area identified
in the Federal Register by the Federal Emergency Management Agency as having special flood hazards
(and such flood insurance has been made available) a flood insurance policy meeting the
requirements of the current guidelines of the Flood Insurance Administration is in effect which
policy conforms to the requirements of Section 4.11 hereof. All individual insurance
policies contain a standard mortgagee clause naming (or that will name) the Company and its
successors and assigns as mortgagee, and to the best of the Seller’s knowledge and belief, all
premiums thereon have been paid. The Mortgage obligates the Mortgagor thereunder to maintain the
hazard insurance policy at the Mortgagor’s cost and expense, and on the Mortgagor’s failure to do
so, authorizes the holder of the Mortgage to obtain and maintain such insurance at such Mortgagor’s
cost and expense, and to seek reimbursement therefor from the Mortgagor. Where required by state
law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the
required hazard insurance, provided that the policy is not a “master” or “blanket” hazard insurance
policy covering the common facilities of a planned unit development. To the best of the Seller’s
knowledge and belief, the hazard insurance policy is the valid and binding obligation of the
insurer and is in full force and effect. To the best of the Seller’s knowledge and belief, the
Company has not engaged in, and has no knowledge of the Mortgagor’s having engaged in, any act or
omission which would impair the coverage of any such policy, the benefits of the endorsement
provided for herein, or the validity and binding effect of either.

(m) Compliance with Applicable Laws. Any applicable requirements of federal, state or
local law including, without limitation, usury, truth-in-lending, real estate settlement
procedures, consumer credit protection, equal credit opportunity or disclosure laws applicable to
the Mortgage Loan, including any origination by the Company of the Mortgage Loan, to the best of
the Seller’s knowledge and belief, have been complied with by the Company in all material respects.

(n) No Satisfaction of Mortgage. The Mortgage has not been satisfied, cancelled,
subordinated (except in the case of a Second Lien Mortgage Loan, to the prior mortgage lien on the
related Mortgaged Property) or rescinded, in whole or in part, and the Mortgaged Property has not
been released from the lien of the Mortgage, in whole or in part, nor has any instrument been
executed that would effect any such release, cancellation, subordination or rescission. To the
best of the Seller’s knowledge and belief, the Company has not waived the performance by the
Mortgagor of any action, if the Mortgagor’s failure to perform such action would cause the Mortgage
Loan to be in default.

(o) Location and Type of Mortgaged Property. The Mortgaged Property is located in the
state identified in the Mortgage Loan Schedule and consists of a parcel of real property with a
detached single family residence erected thereon, or a two-to-four family dwelling, or an
individual condominium unit or townhouse, or an individual unit in a planned unit development, or a
unit of manufactured housing treated as real estate under applicable state law. To the best of the
Seller’s knowledge and belief, no portion of the Mortgaged Property is used for commercial
purposes.

(p) Validity of Mortgage Documents. The Mortgage Note and the Mortgage are genuine
and each is the legal, valid and binding obligation of the maker thereof enforceable pursuant to
its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors’ rights and to general
equity principles. All parties to the Mortgage Note and the Mortgage and any other related
agreement had legal capacity to enter into the Mortgage Loan and to execute and deliver the
Mortgage Note and the Mortgage and any other related agreement, and the Mortgage Note and the
Mortgage have been duly and properly executed by such parties. To the best of the Seller’s
knowledge and belief, the documents, instruments and agreements submitted for loan underwriting
were not falsified and contain no untrue statement of material fact or omit to state a material
fact required to be stated therein or necessary to make the information and statements therein not
misleading. To the best of the Seller’s knowledge and belief, no fraud was committed in connection
with the origination of the Mortgage Loan.

(q) Consolidation of Future Advances. Any advances made after the date of origination
of the Mortgage Loan, but prior to the sale of the Mortgage Loan to the Purchaser, have been
consolidated with the outstanding principal amount secured by the related Mortgage, and the secured
principal amount, as consolidated, bears a single interest rate and single repayment term. The
consolidated principal amount does not exceed the original principal amount of the Mortgage Loan.
No Mortgage Note relating to a Mortgage Loan permits or obligates the Company to make future
advances to the related Mortgagor at the option of the Mortgagor.

(r) Doing Business. To the best of the Seller’s knowledge and belief, all parties
which have had any interest in the Mortgage Loan, whether as mortgagee, assignee, pledgee or
otherwise, are (or, during the period in which they held and disposed of such interest, were) (x)
in compliance with any applicable licensing requirements of the laws of the state wherein the
Mortgaged Property is located, and (y) either (i) organized under the laws of such state, (ii)
qualified to do business in such state, or (iii) not required to qualify to do business in such
state.

(s) CLTV. The CLTV of each Mortgage Loan is not more than 100%.

(t) Title Insurance. The Mortgage Loan is covered by:

(i) an attorney’s opinion of title, the form and substance of which are acceptable to
mortgage lending institutions making non-prime loans in the area where the Mortgaged
Property is located;

(ii) either (A) an ALTA lender’s title insurance policy issued by a title insurer
qualified to do business in the jurisdiction where the Mortgaged Property is located,
insuring the Seller, its successors and assigns, as to the first or second priority lien of
the Mortgage in an amount at least equal to the original principal amount of the Mortgage
Loan, and against any loss by reason of the invalidity or unenforceability of the lien
resulting from the provisions of the Mortgage Note and other Loan Documents providing for
adjustment in the Mortgage Interest Rate and Monthly Payment, or (B) a binding commitment
from such title insurer to issue the same; or

(iii) with respect to HELOCs, a title search or guaranty of title customary in the
relevant jurisdiction was obtained with respect to a HELOC as to which no title insurance
policy or binder was issued;

in each case subject to the exceptions contained in clauses (i) and (ii), and with
respect to each Second Lien Mortgage Loan or HELOC, clause (4) of Section 3.2(c)
hereof and in all cases subject to the exceptions to title set forth in the title insurance policy
(or commitment), attorney’s opinion of title, which exceptions are generally acceptable to banking
institutions in connection with their regular mortgage lending activities, and to such other
exceptions to which similar properties are commonly subject and which do not individually, or in
the aggregate, materially and adversely affect the benefits of the security intended to be provided
by the Mortgage. Where required by state law or regulation, the Mortgagor has been given the
opportunity to choose the carrier of the required lender’s title insurance. Additionally, such
lender’s title insurance policy affirmatively insures ingress and egress, and against encroachments
by or upon the Mortgaged Property or any interest therein. The Seller or an Affiliate of the
Seller is the sole insured of such lender’s title insurance policy (or commitment), and such
lender’s title insurance policy is in full force and effect or will be in force and effect upon
issuance pursuant to the commitment. To the best of the Seller’s knowledge and belief, no claims
have been made under such lender’s title insurance policy, and no prior holder of the Mortgage,
including the Seller, has done, by act or omission, anything which would impair the coverage of
such lender’s title insurance policy.

(u) No Defaults. To the best of the Seller’s knowledge and belief, there is no
default, breach, violation or event of acceleration existing under the Mortgage or the Mortgage
Note, and no event with respect to which the applicable grace or cure period has expired which,
with the passage of time or with notice, would constitute a default, breach, violation or event of
acceleration, and neither the Seller nor its predecessors have waived any default, breach,
violation or event of acceleration. To the best of the Seller’s knowledge and belief, with respect
to each Second Lien Mortgage Loan, (i) the prior mortgage is in full force and effect, (ii) there
is no default, breach, violation or event of acceleration existing under the prior mortgage or the
related mortgage note, (iii) there is no event which, with the passage of time or with notice and
the expiration of any grace or cure period, would constitute a default, breach, violation or event
of acceleration thereunder, (iv) the prior mortgage does not provide for negative amortization, (v)
no funds provided to the Mortgagor from the Second Lien Mortgage Loan were concurrently used as a
down payment for the prior mortgage, and either (A) the prior mortgage contains a provision which
allows or (B) applicable law requires, the Mortgagee under the Second Lien Mortgage Loan to receive
notice of, and affords such Mortgagee an opportunity to cure by payment in full or otherwise, any
default under the prior mortgage.

(v) No Mechanics’ Liens. To the best of the Seller’s knowledge and belief, there are
no mechanics’ or similar liens or claims which have been filed for work, labor or material (and no
rights are outstanding that under the law could give rise to such liens) affecting the related
Mortgaged Property which are or may be liens prior to, or equal or coordinate with, the lien of the
related Mortgage, which are not insured against or otherwise covered by the applicable title
policy.

(w) Location of Improvements; No Encroachments. All improvements which were
considered in determining the Appraised Value of the Mortgaged Property lay wholly within the
boundaries and building restriction lines of the Mortgaged Property and, to the best of the
Seller’s knowledge and belief, no improvements on adjoining properties encroach upon the Mortgaged
Property. To the best of the Seller’s knowledge and belief, no improvement located on or being
part of the Mortgaged Property is in violation of any applicable zoning law or regulation.

(x) Customary Provisions. The Mortgage contains customary and enforceable provisions
such as to render the rights and remedies of the holder thereof adequate for the realization
against the Mortgaged Property of the benefits of the security provided thereby, including, (i) in
the case of a Mortgage designated as a deed of trust, by trustee’s sale and (ii) otherwise by
judicial foreclosure. Upon default by a Mortgagor on a Mortgage Loan and foreclosure on, or
trustee’s sale of, the Mortgaged Property pursuant to the proper procedures, the holder of the
Mortgage Loan will be able to deliver good and marketable title to the Mortgaged Property. There
is no homestead or other exemption, other than any applicable Mortgagor redemption rights,
available to a Mortgagor which would materially interfere with the right to sell the Mortgaged
Property at a trustee’s sale or the right to foreclose the Mortgage.

(y) Occupancy of the Mortgaged Property. To the best of the Seller’s knowledge and
belief, the Mortgaged Property is lawfully occupied under applicable law. To the best of the
Seller’s knowledge and belief, all inspections, licenses and certificates required to be made or
issued with respect to all occupied portions of the Mortgaged Property and with respect to the use
and occupancy of the Mortgaged Property, including but not limited to certificates of occupancy and
fire underwriting certificates, have been made by or obtained from the appropriate authorities.

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

(aa) Acceptable Investment. The Seller has no knowledge of any circumstances or
conditions with respect to the Mortgage, the Mortgaged Property, the Mortgagor or the Mortgagor’s
credit-standing not reflected in the representations set forth herein, or in the documents
delivered to the Custodian or in the Mortgage Loan File, that could reasonably be expected to cause
private institutional investors to regard the Mortgage Loan as an unacceptable investment or cause
the Mortgage Loan to become delinquent or materially adversely affect the value or the
marketability of the Mortgage Loan.

(bb) Delivery of Mortgage Note, Mortgage and Assignment of Mortgage. The Mortgage
Note endorsed in blank or to the Purchaser, the Mortgage (or a copy of the Mortgage, as permitted
under the circumstances described in clause (ii) of the second paragraph of Section
2.1(b) hereof) and the Assignment of Mortgage required to be delivered for the Mortgage Loan by
the Seller under the Custodial Agreement (i) have been delivered to the Custodian on or prior to
the Closing Date or (ii) will be delivered to the Custodian as soon as practicable, but in no event
later than seven (7) Business Days from the Closing Date. The Seller is in possession of a
complete Mortgage Loan File with respect to the Mortgage Loan; provided, however, that in the case
of a Wet Funded Loan, the Seller is not in possession of the related Mortgage Note.

(cc) Recording of Mortgage. The original Mortgage is in recordable form and is
acceptable for recording under the laws of the jurisdiction in which the related Mortgaged Property
is located. The original Mortgage (in recordable form and acceptable for recording) was recorded
or is in the process of being recorded under the laws of the jurisdiction in which the related
Mortgaged Property is located. All intervening assignments of the original Mortgage (other than
unrecorded warehouse assignments) have been delivered for recordation or have been recorded in the
appropriate jurisdictions wherein such recordation is necessary to perfect the lien thereof as
against creditors of or purchasers from the Seller. The Assignment of Mortgage (other than with
respect to a MERS Mortgage, which shall not require an assignment) is in recordable form and is
acceptable for recording under the laws of the jurisdiction in which the related Mortgaged Property
is located.

(dd) Due on Sale. The Mortgage contains an enforceable provision for the acceleration
of the payment of the unpaid principal balance of the Mortgage Loan in the event that the Mortgaged
Property is sold or transferred without the prior written consent of the Mortgagee thereunder.

(ee) No Graduated Payments. The Mortgage Loan is not a graduated payment mortgage
loan and does not have a shared appreciation feature.

(ff) Mortgaged Property Undamaged. To the best of the Seller’s knowledge and belief,
there is no proceeding pending or threatened for the total or partial condemnation of the Mortgaged
Property. To the best of the Seller’s knowledge and belief, the Mortgaged Property is undamaged by
waste, fire, earthquake or earth movement, windstorm, flood, tornado or other casualty so as to
affect materially adversely the value of the Mortgaged Property as security for the Mortgage Loan
or the use for which the premises were intended.

(gg) Collection Practices; Adjustable Rate Mortgage Loan Adjustments. To the best of
the Seller’s knowledge and belief, the collection practices used by the Servicer with respect to
the Mortgage Loan have been in accordance with the Servicer’s Customary Servicing Procedures, are
in compliance in all material respects with all applicable laws and regulations, and all Mortgage
Interest Rate adjustments have been made in strict compliance with state and federal law and the
terms of the related Mortgage Note.

(hh) Appraisal. The Mortgage Loan File contains an appraisal of the related Mortgaged
Property signed prior to the approval of the mortgage loan application by a qualified appraiser,
duly appointed by or acceptable to the Seller, who, to the best of the Seller’s knowledge and
belief, had no interest, direct or indirect, in the Mortgaged Property or in any loan made on the
security thereof, and whose compensation is not affected by the approval or disapproval of the
Mortgage Loan, and the appraisal and appraiser both satisfy the requirements of Title XI of the
Federal Institutions Reform, Recovery, and Enforcement Act of 1989 and the regulations promulgated
thereunder, all as in effect on the date that the Mortgage Loan was originated.

(ii) Servicemembers’ Civil Relief Act. The Mortgagor has not notified the Seller and
the Seller has no knowledge of any relief requested by the Mortgagor under the Servicemembers’
Civil Relief Act of 1940.

(jj) Environmental Matters. To the best of the Seller’s knowledge and belief, the
Mortgaged Property is free from any and all toxic or hazardous substances and there exists no
violation of any local, state or federal environmental law, rule or regulation with respect to the
Mortgaged Property. There is no pending action or proceeding directly involving any Mortgaged
Property of which the Seller is aware in which compliance with any environmental law, rule or
regulation is an issue; and, to the best of the Seller’s knowledge and belief, nothing further
remains to be done to satisfy in full all requirements of each such law, rule or regulation
consisting of a prerequisite to use and enjoyment of said property.

(kk) No Construction Loans. To the best of the Seller’s knowledge and belief, no
Mortgage Loan (i) was made for the construction or rehabilitation of a Mortgaged Property which has
not been completed or (ii) (other than HELOCs) provides for future advances of funds by the Company
which have not yet been advanced or (iii) facilitates the trade-in or exchange of a Mortgaged
Property.

(ll) Regarding the Mortgagor. The Mortgagor is one (1) or more natural persons.

(mm) Consent. Either (a) no consent for the Second Lien Mortgage Loan is required by
the holder of the related first lien mortgage or (b) such consent has been obtained and is
contained in the Mortgage Loan File.

(nn) Mortgagor Acknowledgment. If the Mortgage Loan is an adjustable rate mortgage
loan, the Mortgagor has executed a statement to the effect that the Mortgagor has received all
disclosure materials required by applicable law with respect to the making of adjustable rate
mortgage loans. The Servicer agrees that it shall maintain such statement in the Mortgage Loan
File.

(oo) No Buydown Provisions. The Mortgage Loan does not contain provisions pursuant to
which Monthly Payments are paid or partially paid with funds deposited in any separate account
established by the Seller, the Mortgagor or anyone on behalf of the Mortgagor, or paid by any
source other than the Mortgagor nor does it contain any other similar provisions currently in
effect which may constitute a “buydown” provision.

(pp) Schedule of Payments. Each Mortgage Note with respect to a Mortgage Loan (other
than an Affordability Loan) provides for a schedule of substantially level and equal Monthly
Payments (or periodic rate adjustments in the case of Mortgage Loans that have an adjustable
interest rate) which are sufficient to amortize fully the principal balance of such Mortgage Note
on or before its maturity date.

(qq) [reserved]

(rr) No Taxes, Fees or Charges. The sale, transfer, assignment and conveyance of the
Mortgage Loan by the Seller pursuant to this Purchase Agreement are not subject to and will not
result in any tax, fee or governmental charge payable by the Seller or the Purchaser to any
federal, state or local government other than such taxes, fees and governmental charges which have
been or will be paid as due by the Seller.

(ss) Ground Lease. With respect to each Mortgaged Property subject to a ground lease
(i) the current ground lessor has been identified and all ground rents which have previously become
due and owing have been paid, (ii) the ground lease term extends, or is automatically renewable,
for at least five years beyond the maturity date of the related Mortgage Loan, (iii) the ground
lease has been duly executed and recorded, (iv) the amount of the ground rent and any increases
therein are clearly identified in the lease and are for predetermined amounts at predetermined
times, (v) the ground rent payment is included in the Mortgagor’s monthly payment as an expense
item in determining the qualification of the Mortgagor for such Mortgage Loan, (vi) the Purchaser
on behalf of the Collateral Agent has the right to cure defaults on the ground lease, and (vii) the
terms and conditions of the leasehold do not prevent the free and absolute marketability of the
Mortgaged Property.

(tt) Mortgage Interest Rate. The Mortgage Interest Rate on the Mortgage Loan is
calculated on the basis of a year of 360 days with twelve 30-day months.

(uu) Negative Amortization. If the Mortgage Loan has a variable interest rate, it is
not subject to negative amortization.

(vv) [reserved]

(ww) Rights Under Insurance Policies. The Seller has caused and will cause to be
performed any and all acts required to be performed by it to preserve the rights and remedies of
the Collateral Agent in any insurance policies applicable to the Mortgage Loan including, without
limitation, any necessary notifications of insurers, assignments of policies or interests therein,
and establishments of co-insured, joint loss payee and mortgagee rights in favor of the Collateral
Agent.

(xx) Prepayment Penalty. If the Mortgage Loan contains a provision that provides for
the payment of a penalty if the related Mortgage Note is paid in full prior to the date such
Mortgage Note is scheduled to be paid in full, such provision is enforceable under applicable law.

(yy) Predatory Lending Regulations; High Cost Loans. None of the Mortgage Loans (i)
are classified as (x) “high cost” loans under the Home Ownership and Equity Protection Act of 1994
or (y) “high cost” or “predatory” loans under any applicable federal, state or local law or
ordinance (or a similarly classified loan using different terminology under any applicable federal,
state or local law or ordinance imposing heightened regulatory scrutiny or additional legal
liability for nonprime residential mortgage loans having high interest rates and/or points and
fees) or (ii) are subject to any similar federal, state or local law or ordinance that would result
in such Mortgage Loan being ineligible for inclusion in a rated securitization transaction under
the then current criteria and ongoing criteria of any Rating Agency. No Mortgage Loan is a “High
Cost Loan” or a “Covered Loan,” as applicable, as such terms are defined in the then-current
Standard & Poor’s LEVELS® Glossary, Appendix E.

(zz) Proceeds Fully Disbursed. The proceeds of each Mortgage Loan other than HELOCs
have been fully disbursed, there is no requirement for future advances thereunder and any and all
requirements as to completion of any on-site or off-site improvements and as to disbursements of
any escrow funds therefor have been complied with, except any Mortgaged Property or Mortgage Loan
subject to an Escrow Withhold as defined in the underwriting guidelines of the Seller. All costs,
fees and expenses incurred in making, closing or recording the Mortgage Loans were paid and the
Mortgagor is not entitled to any refund of any amounts paid or due under the Mortgage Note or
Mortgage (it being understood that the making or funding of a Draw under a HELOC shall not
constitute a refund of amounts paid for or due under the Mortgage Loan).

(aaa) No Deficiencies. With respect to escrow deposits and escrow payments (other
than with respect to each Mortgage Loan which is indicated by the Seller to be a Second Lien
Mortgage Loan and for which the Mortgagee under the first lien is collecting escrow payments) all
such payments are in the possession of or under the control of the Seller, its servicer or its
agent. There exist no deficiencies with respect to escrow deposits and payments, if such are
required, for which customary arrangements for repayment thereof have not been made, and no escrow
deposits or payments of other charges or payments due the Seller of such Mortgage Loan have been
capitalized under the Mortgage or the related Mortgage Note.

(bbb) No Pledged Account. There is no pledged account or other security other than
real estate securing the Mortgagor’s obligations.

(ccc) Additional Payments. There is no obligation on the part of the Seller or any
other party under the terms of the Mortgage or related Mortgage Note to make payments in lieu of or
in addition to those made by the Mortgagor or a guarantor of such Mortgagor’s obligations under the
terms of a guarantee included in the related Mortgage Loan File.

(ddd) Use of Mortgage Loan Proceeds. No proceeds from any Mortgage Loan were used to
finance single-premium credit insurance policies.

(eee) Property in Georgia. No Mortgage Loan secured by a Mortgaged Property located
in Georgia is a “Covered Loan” or “High Cost Home Loan” within the meaning of the Georgia Fair
Lending Act, as amended (the “Georgia Act”). In addition, no Mortgage Loan secured by a Mortgaged
Property located in Georgia was originated prior to March 7, 2003 and after October 1, 2002.

(fff) Furnishing of Information. The Seller or the Servicer has fully furnished, in
accordance with the Fair Credit Reporting Act and its implementing regulations, accurate and
complete information (e.g., favorable and unfavorable) on the Mortgagor’s credit files to the
Credit Repositories on a monthly basis.

(ggg) Deemed Representations. If any representation and warranty required by mortgage
loan buyers generally in purchases of nonprime mortgage loans having characteristics similar to the
Mortgage Loan, or by Rating Agencies, commercial paper conduits or other financing parties in
connection with the financing of nonprime mortgage loans having characteristics similar to the
Mortgage Loan is not covered by the representations and warranties in the foregoing
subparagraphs (a) through (fff) (each, a “Deemed Representation”), then, upon
notice thereof from the Seller, the Servicer, the Issuer or any Swap Counterparty, such Deemed
Representation (modified to the extent necessary to accurately reflect the pool characteristics of
the Mortgage Loans to ensure such representation is true) shall be deemed to have been made with
respect to such Mortgage Loan by the Seller as of the applicable Closing Date unless such Deemed
Representation relates to the collectibility or credit risk of such Mortgage Loan and for which
such Deemed Representation would constitute recourse to such Seller for the collectibility of such
Mortgage Loan.

(hhh) Additional Representations for HELOCs. With respect to HELOCs, (i) the Seller
has received no notice of default of any senior mortgage loan on the related Mortgaged Property
that has not been cured by a party other than the Seller or the Servicer, (ii) no HELOC had an
unpaid principal balance in excess of the related Credit Limit, and (iii) no HELOC has a Credit
Limit in excess of $1,000,000.

Section 3.3 Remedies for Breach of Representations and Warranties, First Pay Default
Loans.

It is understood and agreed that the representations and warranties set forth in Sections
3.1 and 3.2 hereof shall survive the sale of each Mortgage Loan to the Purchaser and
the delivery of the Servicing File to the Servicer and delivery of the Mortgage Notes, Mortgages
and Assignments of Mortgages to the Custodian and shall inure to the benefit of the Purchaser
notwithstanding any restrictive or qualified endorsement on any Mortgage Note or Assignment of
Mortgage or the examination or failure to examine any Mortgage Loan File. Upon discovery by one of
the Seller, the Servicer or the Purchaser (i) of a breach of any of the foregoing representations
and warranties, or (ii) that any of the representations or warranties in Section 3.1 or
Section 3.2 hereof were untrue at the time made without regard to any limitation contained
therein concerning the knowledge of the Seller or the Servicer as to the facts stated therein, and
in each case which materially and adversely affects the value of the Mortgage Loans or the interest
of the Purchaser (or which materially and adversely affects the interest of the Purchaser in the
related Mortgage Loan in the case of a representation and warranty relating to a particular
Mortgage Loan), the party discovering such breach or inaccuracy shall give prompt written notice to
the other two, the Collateral Agent and the Indenture Trustee.

Within sixty (60) days of the earlier of either discovery by or notice to the Seller of any
such breach or inaccuracy (without regard to any limitation contained therein concerning the
knowledge of the Seller or the Servicer as to the facts stated therein) of a representation or
warranty set forth in Section 3.1 hereof that materially and adversely affects the value of
any Mortgage Loan, the Seller shall use its best efforts promptly to cure such breach or inaccuracy
in all material respects and, if such breach or inaccuracy cannot be cured, or is not cured, within
such sixty (60) day time period, the Seller shall repurchase such Mortgage Loan at the Repurchase
Price. Except as provided in the next sentence, within sixty (60) days of the earlier of either
discovery by or notice to the Seller of any such breach or inaccuracy (without regard to any
limitation contained therein concerning the knowledge of the Seller or the Servicer as to the facts
stated therein) of a representation or warranty set forth in Section 3.2 hereof that
materially and adversely affects the value of any Mortgage Loan, the Seller shall use its best
efforts promptly to cure such breach or inaccuracy in all material respects and, if such breach or
inaccuracy cannot be cured, or is not cured, within such sixty (60) day time period, the Seller
shall repurchase such Mortgage Loan at the Repurchase Price. In the event that a breach shall
involve any representation or warranty set forth in Section 3.2 (bb) hereof, all Mortgage
Loans affected thereby shall be repurchased by the Company on the seventh (7th) Business
Day following the related Closing Date at the Repurchase Price. Promptly, but in any event within
thirty (30) days of a Mortgage Loan becoming a First Pay Default Loan, the Seller shall use its
best efforts to procure the related Mortgagor to cure such payment default and, if such default
cannot be cured, or is not cured, within such thirty (30) day time period, the Seller shall
repurchase such Mortgage Loan at the Repurchase Price. In each case, the Repurchase Price shall be
remitted to the Collateral Agent and shall be deposited into the Collateral Account on the day of
receipt. Upon receipt of the Repurchase Price by the Collateral Agent, the Purchaser and the
Seller shall arrange for the reassignment of the Mortgage Loan or Mortgage Loans to the Seller and
the delivery to the Seller of any documents held by the Custodian or the Servicer relating to the
reassigned Mortgage Loan or Mortgage Loans. Notwithstanding the fact that a representation or
warranty contained in Section 3.1 or 3.2 hereof may be limited to the Seller’s
knowledge, such limitation shall not relieve the Seller of its repurchase obligation under this
Section 3.3.

In addition to such repurchase obligation, the Seller shall indemnify the Purchaser and hold
it harmless against any losses, damages, transfer taxes, penalties, fines, forfeitures, reasonable
and necessary legal fees and related costs, judgments, and other costs and expenses resulting from
any claim, demand, defense or assertion based on or grounded upon, or resulting from, a breach of
the representations and warranties of the Seller contained in this Purchase Agreement. The Seller
shall not be obligated under this indemnity for any indirect or consequential damages. It is
understood and agreed that the obligations of the Seller set forth in this Section 3.3 to
cure or repurchase a Mortgage Loan and to indemnify the Purchaser constitute the sole remedies of
the Purchaser respecting a breach of the foregoing representations and warranties, or any First Pay
Default Loans.

Section 3.4 Conditions to Closing.

The obligation of the Purchaser to purchase the Mortgage Loans that are the subject of any
Transfer Supplement shall be subject to satisfaction of each of the following conditions on or
before the related Closing Date:

(a) To the best of the Seller’s knowledge and belief, all of the representations and
warranties of the Seller contained in this Purchase Agreement shall be true and correct in all
material respects as of such Closing Date and no event shall have occurred which, with notice or
the passage of time, would constitute a Servicer Event of Default under this Purchase Agreement;

(b) The Seller shall have delivered and released to the Custodian all documents required to be
delivered to the Custodian pursuant to the Custodial Agreement;

(c) No Termination Event shall have occurred and be continuing; and

(d) All other material terms and conditions of this Purchase Agreement shall have been
satisfied.

Section 3.5 Covenants of the Company and the Purchaser.

(a) Licenses. The Company shall maintain its qualifications to do business and all
licenses necessary to perform its obligations hereunder.

(b) Servicing Standards. The Servicer will administer and service Mortgage Loans, and
arrange for the sale of Mortgage Loans, pursuant to the terms of this Purchase Agreement, the
Mortgage Notes, applicable law and its Customary Servicing Procedures.

(c) Delivery of Mortgage Note. The Seller shall deliver each Mortgage Note, Mortgage
and Assignment of Mortgage, including Mortgage Notes, Mortgages and Assignments of Mortgages on Wet
Funded Loans, to the Custodian as soon as practicable, but in any event within seven (7) Business
Days of the purchase by the Purchaser of the related Mortgage Loan, and, if any Mortgage Note,
Mortgage or Assignment of Mortgage is not delivered within seven (7) Business Days of purchase, the
related Mortgage Loan shall be repurchased on such seventh (7th) Business Day by the
Seller at the Repurchase Price.

(d) Portfolio Criteria and Limitations. The Servicer agrees that as of any date of
determination, the Mortgage Loans shall satisfy the Portfolio Criteria, the Eligibility Criteria
set forth in clause (i) of the definition thereof, the Portfolio Aging Limitations and the Wet
Funded Loan Limitation.

(e) Changes in Origination and Underwriting Criteria. The Company shall inform each
Swap Counterparty, and each Rating Agency rating any outstanding Notes, of any changes in the
Company’s origination or underwriting practices and guidelines with respect to mortgage loans that
would have a Material Adverse Effect (as determined by the Company).

(f) Extended Note Amortization Event. The Purchaser shall not purchase any Mortgage
Loans during the continuation of an Extended Note Amortization Event.

(g) Defaulted Loans. Notwithstanding anything to the contrary in any Program
Document, the Servicer shall sell on behalf of the Purchaser any Mortgage Loan that becomes a
Defaulted Loan as soon as practicable after becoming a Defaulted Loan.

(h) Concentration. The Servicer shall arrange for sales of Mortgage Loans to assure
that the Outstanding Purchase Price of Mortgage Loans payable by a single obligor shall not exceed
two percent (2%) of the aggregate Outstanding Purchase Price of all Mortgage Loans owned by the
Purchaser at any time.

(i) Factual Assumption in True-Sale/Non-Consolidation Opinion. The Company and the
Purchaser shall maintain the truth and accuracy of all facts assumed by Mayer, Brown, Rowe & Maw
LLP in the True-Sale/Non-Consolidation Opinion delivered on the Initial Closing Date and shall not
take or omit to take any action that would result in a change to the continuing truth and accuracy
of any of the factual assumptions in such True-Sale/Non-Consolidation Opinion.

(j) Accounting Treatment of Issuer. The Company shall consolidate the assets and
liabilities of the Issuer with the assets and liabilities of the Company in all Financial
Statements published and prepared by the Company, the Issuer and their Affiliates in accordance
with GAAP or any successor accounting standard thereto. Such Financial Statements shall contain a
footnote substantially to the effect that the Issuer is a Delaware statutory trust that has been
established by the Company as a special-purpose warehouse finance subsidiary of the Company, and
that the Issuer has agreed to issue and sell the Notes.

(k) Forward Trades. The Company shall identify Mortgage Loans acquired by the
Purchaser for any forward sale contract in the same manner in which the Company identifies similar
Mortgage Loans which it owns.

(l) Reference Agent. The Issuer shall enter into the Reference Agent Agreement as of
the Initial Closing Date, and shall comply with its obligations thereunder in the event that the
Reference Agent shall resign or be terminated pursuant to the terms thereof.

(m) Maintenance of Perfection and Priority. The Servicer covenants to maintain the
perfection and priority of the security interest of the Purchaser and the Collateral Agent, on
behalf of the Secured Parties, in the Mortgage Loans in accordance with paragraph 12 of the
perfection representations attached hereto as Exhibit C.

Section 3.6 Perfection Representations. The perfection representations attached
hereto as Exhibit C shall be a part of this Purchase Agreement for all purposes.

ARTICLE 4

ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

Section 4.1 The Company to Act as Servicer; Servicing and Administration of the Mortgage
Loans.

(a) (i) The Company, as an independent contract servicer, shall service and administer the
Mortgage Loans. The Servicer shall proceed in the best interests of and for the benefit of the
Purchaser (as determined by the Servicer in its reasonable judgment) with a view to the
maximization of timely recovery of principal and interest on the Mortgage Loans, consistent with
the provisions hereof. The Servicer will be required to service and administer each Mortgage Loan
in the same manner in which, and with the same care, skill, prudence and diligence with which, it
services and administers similar non-prime loans which it owns, giving due consideration to
customary and usual standards of practice of mortgage lenders and loan servicers administering
similar mortgage loans.

The Servicer shall service the Mortgage Loans in a manner consistent with the Portfolio
Criteria, Portfolio Aging Limitations and Wet Funded Loan Limitation. Additionally, as the
principal of any Notes becomes due and payable, whether pursuant to the terms thereof or by the
occurrence of a Security Agreement Event of Default or an Indenture Event of Default or optional
repurchase, maturity or otherwise, the Purchaser shall cause the Servicer to arrange for the sale
of Mortgage Loans at such times and in such manner so that the proceeds of the sale, together with
amounts received by the Purchaser in connection with the Interest Rate Swaps, are available to pay
amounts due and owing on such Notes.

Without limiting the foregoing, in the event that on the Business Day prior to the Final
Maturity of any Extended Notes there are insufficient funds on deposit in the Collateral Account to
repay those Extended Notes and the Purchaser is unable to issue Secured Liquidity Notes or
Subordinated Notes in an amount sufficient to repay the Extended Notes maturing on the next
Business Day, the Servicer shall use its best efforts to obtain three (3) or more bids for the sale
or securitization of one or more Mortgage Loans owned by the Purchaser, and shall sell or
securitize such Mortgage Loan(s) on such day to the highest bidder in a manner so that the proceeds
from such sale or securitization, together with amounts received or to be received by the Purchaser
in connection with the Interest Rate Swaps, are sufficient to repay the Extended Notes maturing on
the next Business Day; provided, however, that (I) if Extended Notes have not been paid in full on
the one hundred and thirty-fifth (135th) day following the conversion of such Notes to
Extended Notes, the Servicer shall use its best efforts to arrange for the sale or securitization
of one or more Mortgage Loans owned by the Purchaser, and shall sell or securitize such Mortgage
Loan(s) in a manner so that the proceeds from such sale or securitization, together with amounts
received or to be received by the Purchaser in connection with the Interest Rate Swaps, if any, are
sufficient to repay such Extended Notes on the one hundred and sixty-fifth (165th) day
following the conversion of such Notes to Extended Notes and (II) if such Extended Notes have not
been paid in full on the one hundred and sixty-fifth (165th) day following the
conversion of such Notes to Extended Notes the Collateral Agent shall hold an auction (a
“Principal Paydown Auction”) of Mortgage Loans sufficient to pay such Extended Notes for
settlement not later than the one hundred and eightieth (180th) day following the
conversion of such Notes to Extended Notes. The Collateral Agent shall notify potential bidders
(which shall include each Swap Counterparty) of the Principal Paydown Auction, including the Rated
Bidder, who will be obligated to make a bid in any such auction.

Any Affiliate of the Company may purchase any Mortgage Loans from the Purchaser at any time
and from time to time (including following the occurrence and during the continuance of a
Termination Event) at the Current Transfer Price; provided, that, the purchase
price to be paid by such Affiliate for any such Mortgage Loan shall not be less than the
Outstanding Purchase Price of such Mortgage Loan plus accrued and unpaid interest, nor less than
the current fair market value of such Mortgage Loan. Notwithstanding the foregoing, except for any
sales by the Purchaser to Securitization Vehicles, neither the Company nor any Affiliate of the
Company may purchase any non-Delinquent Loan or non-Defaulted Loan from the Purchaser unless either
(a) the purchase price paid by such Affiliate is at least equal to the then Outstanding Purchase
Price of such Mortgage Loan plus accrued and unpaid interest arising under the related Mortgage
Note, or (b) if the purchase price proposed to be paid by such Affiliate is less than the
Outstanding Purchase Price of such Mortgage Loan plus accrued and unpaid interest arising under the
related Mortgage Note, then (x) the Company shall procure that the Affiliate provide the Purchaser
with a letter from a qualified, independent party stating that the purchase price proposed to be
paid by such Affiliate is not less than the then-current fair market value of the Mortgage Loan
and, if no Termination Event shall have occurred and be continuing, (y) Section 4.2(e) shall be
complied with.

(ii) Except to the extent that this Purchase Agreement provides for a contrary specific course
of action, the Servicer will be required to service and administer each Mortgage Loan without
regard to (a) any other relationship that the Servicer, any sub-servicer or any Affiliate of the
Servicer or any sub-servicer may have with the borrowers or any Affiliate of such borrowers, (b)
the ownership of any Notes by the Servicer or any Affiliate of the Servicer, (c) the Servicer’s
obligations to make any Monthly Advances, Monthly Interest Advances, or Servicing Advances or to
incur servicing expenses with respect to each Mortgage Loan, (d) the Servicer’s or any
sub-servicer’s right to receive compensation for its services under this Purchase Agreement or with
respect to any particular transaction or (e) the ownership, servicing or management for others by
the Servicer or any sub-servicer of any other mortgage loans or property.

(b) The Servicer may enter into additional servicing or sub-servicing agreements with third
parties with respect to any of its obligations hereunder, provided that any such agreement shall be
consistent with the provisions of this Purchase Agreement and no sub-servicer (or its agent or
subcontractors) shall grant any modification, waiver or amendment to any Mortgage Loan without the
approval of the Servicer. Notwithstanding any servicing or sub-servicing agreement, any of the
provisions of this Purchase Agreement relating to agreements or arrangements between the Servicer
and any Person acting as servicer or sub-servicer (or its agents or subcontractors) or any
reference to action taken through any Person acting as servicer or sub-servicer or otherwise, the
Servicer shall remain obligated and primarily liable to the Purchaser for the servicing and
administering of the Mortgage Loans and arranging for the sale of each Mortgage Loan pursuant to
the provisions of this Purchase Agreement without diminution of such obligation or liability by
virtue of such servicing or sub-servicing agreements or arrangements or by virtue of
indemnification from any Person acting as servicer or sub-servicer (or its agents or
subcontractors) to the same extent and under the same terms and conditions as if the Servicer alone
were engaging in such activities. In the event that the Servicer is a sub-servicer, the Purchaser
shall be entitled to proceed directly against the Servicer as sub-servicer to enforce the
Servicer’s obligations to the Purchaser.

(c) Without limiting the generality of the foregoing, the Servicer is hereby authorized and
empowered to waive, modify or vary any term of any Mortgage Loan or consent to the postponement of
compliance with any such term or in any manner grant indulgence to any Mortgagor if in the
Servicer’s reasonable and prudent determination such waiver, modification, variance, postponement
or indulgence is not materially adverse to the Purchaser; provided, however, that the Servicer
shall not make any future advances to a Mortgagor with respect to each Mortgage Loan (other than a
HELOC) and (unless the Mortgagor is in default with respect to the Mortgage Loan or such default
is, in the judgment of the Servicer, imminent) the Servicer shall not permit any modification with
respect to any Mortgage Loan that would change the Mortgage Interest Rate, defer, forgive the
payment of principal or interest, reduce or increase the outstanding principal balance (except for
actual payments of principal), release any collateral from the Mortgage Loan or change the final
maturity date on such Mortgage Loan. 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 Purchaser all instruments of satisfaction or cancellation, or of partial or full
release, discharge and all other comparable instruments, with respect to each Mortgage Loan and
with respect to the related Mortgaged Property. If reasonably required by the Servicer, the
Purchaser shall furnish the Servicer with any powers of attorney, in recordable form, and other
documents necessary or appropriate to enable the Servicer to carry out its servicing and
administrative duties under this Purchase Agreement.

Section 4.2 Sales.

(a) Subject to the servicing standards described in Section 4.1 hereof, the Servicer
shall have full power and authority, acting alone, to do or cause to be done any and all things in
connection with such servicing and administration that it may deem necessary and desirable in
connection with arranging for the sale by the Purchaser of Mortgage Loans to Mortgage Loan Buyers.
The Servicer shall have no liability to the Purchaser with respect to any sale, provided that the
Servicer arranges for such sale in good faith pursuant to the procedures utilized by the Servicer
in connection with any sale of mortgage loans held for its own account. The proceeds of the sale
of any Mortgage Loans will be remitted to the Collateral Agent and will be deposited into the
Collateral Account maintained by the Collateral Agent on the day of receipt provided that such
amounts shall not include any sale proceeds related to Excluded Amounts with respect to any HELOC.

(b) With respect to each sale of Mortgage Loans entered into by the Purchaser, the Servicer
shall:

(i) cooperate fully with the Purchaser, any prospective Mortgage Loan Buyer, or any
party to any agreement executed in connection with the sale of such Mortgage Loans, with
respect to all reasonable requests and due diligence procedures and use its best efforts to
facilitate such sale;

(ii) restate, as of the closing date of such sale, the representations and warranties
contained in Section 3.1 hereof and state that, except as otherwise disclosed in
writing by the Servicer to the Mortgage Loan Buyer, each of the representations and
warranties with respect to such Mortgage Loans contained in Sections 3.2(b),
(c), (e), (g), (h), (i), (j), (k),
(l), (m), (n), (t), (u), (v), (w),
(y), (z), (aa), (ff), (gg), (ii),
(jj), (ss), and (ww) hereof, are true as of the closing date of such
sale (and for this purpose, references to the knowledge of the Seller shall mean the
knowledge of the Servicer);

(iii) deliver to the Purchaser for inclusion in any prospectus or other offering
material such written information regarding New Century Financial Corporation, its
respective financial condition, mortgage loan origination and servicing experience, and
mortgage loan delinquency, foreclosure and loss experience as shall be reasonably requested
by the Purchaser and indemnify and hold harmless the Purchaser against any and all
liabilities, losses and expenses arising under the Securities Act in connection with any
material misstatement contained in such written information or any omission of a material
fact the inclusion of which was necessary to make such written information not misleading;

(iv) deliver to the Purchaser and to any Person designated by the Purchaser, such
statements and audit letters of reputable, certified public accountants pertaining to the
written information provided by the Servicer pursuant to clause (iii) above as shall
be reasonably requested by the Purchaser;

(v) ensure that the sales proceeds are payable only in cash; and

(vi) deliver to the Purchaser, and to any Person designated by the Purchaser, such
opinions of counsel as are customarily delivered by originators/servicers in connection with
sales of Mortgage Loans of this type.

All Mortgage Loans not sold or transferred pursuant to a sale shall continue to be serviced
pursuant to the terms of this Purchase Agreement.

(c) With respect to each sale of Mortgage Loans entered into by the Purchaser, the Seller
shall restate, as of the closing date of such sale, the representations and warranties contained in
Section 3.1 hereof and the representations and warranties with respect to such Mortgage
Loans contained in Sections 3.2(b), (f), (o), (p), (q),
(r), (s), (x), (bb), (cc), (dd), (ee),
(hh), (kk), (ll), (mm), (nn), (oo), (pp),
(rr), (tt), (uu), and (xx) hereof.

(d) Upon the sale of any Mortgage Loan, the rights and obligations of the Servicer hereunder
with respect to such Mortgage Loan shall be terminated on the effective date of such sale. Upon
written request from the Purchaser, the Servicer shall prepare, execute and deliver to the
successor entity designated by the Purchaser any and all documents and other instruments, place in
such successor’s possession the Mortgage Loan File, and do or cause to be done all other acts or
things necessary or appropriate to effect the purposes of such termination, including but not
limited to the transfer and endorsement or assignment of the Mortgage Loan and related documents,
at the Servicer’s sole expense. The Servicer shall cooperate with such successor in effecting the
termination of the Servicer’s responsibilities and rights hereunder, including without limitation,
the transfer to such successor for administration by it of all cash amounts which shall at the time
be credited by the Servicer to any Collection Account or Proceeds Account, or thereafter received
with respect to the Mortgage Loan, subject to the Servicer’s right to withdraw any amounts it is
entitled to withdraw pursuant to this Purchase Agreement.

(e) If the Servicer arranges for the sale of non-Delinquent Loans or non-Defaulted Loans by
the Purchaser pursuant to this Purchase Agreement and the sale price of any non-Delinquent Loan or
non-Defaulted Loan is less than the Outstanding Purchase Price of such non-Delinquent Loan or
non-Defaulted Loan plus accrued and unpaid interest arising under the related Mortgage Note, the
Servicer shall give each Swap Counterparty written notice of the sale price (the “Sale
Price”) of such non-Delinquent Loan(s) or non-Defaulted Loan(s) in advance of such sale. Such
written notice shall also include a summary description of the procedure used in the determination
of the Sale Price. Each Swap Counterparty shall have two (2) Business Days from the receipt of
such written notice to dispute the Sale Price. If any Swap Counterparty disputes the Sale Price,
the Servicer and such Swap Counterparty shall use their best efforts to resolve such dispute within
two (2) Business Days of receipt by such Swap Counterparty of such written notice. If such Swap
Counterparty disputes the Sale Price of any Mortgage Loan and such dispute is not resolved, then
such Swap Counterparty, or its designee, shall be permitted to purchase such non-Delinquent Loan or
non-Defaulted Loan at a price greater than 101% of the Sale Price (the “Bid Price”) within
three (3) Business Days of receipt by such Swap Counterparty of the written notice of the Sale
Price. If (x) no Swap Counterparty disputes the Sale Price within two (2) Business Days after
receipt of notice of the Sale Price, or (y) any Swap Counterparty is permitted under the preceding
sentence to purchase such non-Delinquent Loan or non-Defaulted Loan but fails (or its designee
fails) to pay the Bid Price for such non-Delinquent Loan or non-Defaulted Loan within three (3)
Business Days after receipt of notice of the Sale Price, the Servicer shall be permitted to sell
such non-Delinquent Loan or non-Defaulted Loan in accordance with Section 4.2 (a) hereof.

Section 4.3 Liquidation of Mortgage Loans.

In the event that any payment due under any Mortgage Loan is not paid when the payment becomes
due and payable, by Monthly Advance or otherwise, or in the event that 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 the Servicer would take under
similar circumstances with respect to a similar mortgage loan held for its own account for
investment, which action shall be consistent with its Customary Servicing Procedures and in the
best interest of the Purchaser; provided, however, that any Defaulted Loan will be sold by the
Servicer on behalf of the Purchaser as soon as practicable after becoming a Defaulted Loan, and the
Servicer shall use its best efforts to sell any such Defaulted Loan within five (5) Business Days
after becoming a Defaulted Loan.

Section 4.4 Collection of Mortgage Loan Payments.

The Servicer shall proceed diligently, pursuant to the Servicer’s Customary Servicing
Procedures, to collect all payments called for under the terms and provisions of each Mortgage Loan
it is obligated to service hereunder and shall follow such collection procedures as are consistent
with this Purchase Agreement (including without limitation, the servicing standards set forth in
Section 4.1 hereof). The Servicer shall segregate and hold all payments received by it
separate and apart from any of its funds and general assets and in trust for the Secured Parties
and, other than Excluded Amounts with respect to any HELOCs, shall apply such payments as provided
in Section 4.5 hereof. The accounts established by the Servicer pursuant to this
Article IV may include any number of sub-accounts for convenience in administering the
Mortgage Loans.

Section 4.5 Establishment of, and Deposits to, Collection Account.

The Servicer shall establish with the Collateral Agent a single, segregated trust account
which shall be designated as the collection account (the “Collection Account”), which shall
be held in trust in the name of the Collateral Agent for the benefit of the Secured Parties, into
which the Servicer shall from time to time deposit, within two (2) Business Days of the receipt
thereof, and retain therein, the following collections received by the Servicer: (a) all payments
on account of scheduled principal on the Mortgage Loans (net of charges against such amounts
allowed pursuant to Section 4.6(a) hereof), (b) all prepayment penalties, prepayment
premiums, and payments on account of interest on the Mortgage Loans (including all Monthly
Advances) (net of charges against such amounts allowed pursuant to Sections 4.6(a) and
4.6(c)(i)(y) hereof and the last sentence of Section 4.6(d) hereof), (c) any partial
Principal Prepayments (but not any Principal Prepayments in full, which shall be deposited directly
into the Collateral Account pursuant to the Security Agreement), (d) all Insurance Proceeds
including amounts required to be deposited pursuant to Sections 4.11 and 4.12
hereof (other than proceeds to be held in the Proceeds Account and applied to the restoration or
repair of the related Mortgaged Property or released to the Mortgagor in accordance with the
Servicer’s Customary Servicing Procedures as specified in Section 4.15 hereof), (e) all
Condemnation Proceeds which are not applied to the restoration or repair of the Mortgaged Property
or released to the Mortgagor pursuant to Section 4.15 hereof, (f) any amounts required to
be deposited by the Servicer pursuant to Section 4.12 hereof in connection with the
deductible clause in any blanket hazard insurance policy, (g) any amounts received with respect to
or related to any REO Property and all REO Disposition Proceeds pursuant to Section 4.17
hereof, (h) all Monthly Interest Advances required to be deposited pursuant to Section 5.2
hereof; and (i) any other amounts received with respect to or related to the Mortgage Loans,
including but not limited to interest paid on funds deposited in the Collection Account or Proceeds
Account, to the extent permitted by applicable law; provided, however, that all servicing related
fees and charges described in Section 6.3(b) hereof may be retained by the Servicer as and
when collected (but excluding any Excluded Amounts related to any HELOCs which shall be allocated
in accordance with Section 4.27 hereof). The Collection Account shall be established with
a Qualified Depository acceptable to the Purchaser. For so long as the Security Agreement shall be
in effect, the Collection Account shall be maintained with the Collateral Agent. Any funds
deposited in the Collection Account shall at all times be fully insured to the full extent
permitted under applicable law. The Servicer shall be entitled to any interest earnings on amounts
on deposit from time to time in the Collection Account.

Section 4.6 Permitted Withdrawals From Collection Account; Deposit into the Collateral
Account.

(a) In connection with amounts deposited by the Servicer into the Collection Account by
mistake or overpayment or as otherwise required to make adjustments to amounts deposited therein in
accordance with ordinary and normal servicing adjustments, the Servicer shall be entitled to retain
from time to time from collections on the Mortgage Loans owned by the Purchaser prior to the
deposit of such collections in the Collection Account amounts equal to the amounts so deposited by
mistake or overpayment or the adjustments so required, provided that the amounts so retained are
reflected in the Servicer Report delivered to the Collateral Agent for the Remittance Period in
which such retention occurred.

(b) Pursuant to the terms of the Security Agreement, the Collateral Agent shall establish a
single, segregated trust account which shall be designated as the collateral account (the
“Collateral Account”), which shall be held in trust in the name of the Collateral Agent for
the benefit of the Secured Parties and over which the Collateral Agent shall have exclusive control
and the sole right of withdrawal. The proceeds, including Deferred Amounts, of any sales of
Mortgage Loans by the Purchaser to Mortgage Loan Buyers, the Repurchase Price of any Mortgage Loans
repurchased by the Seller or the Servicer pursuant to Section 3.3, 6.2 or
7.1 hereof, any Principal Prepayments in full, and any other amounts payable in connection
with the Seller’s or the Servicer’s repurchase of any Mortgage Loan and certain other amounts as
more fully set forth in the Security Agreement, shall be deposited directly into the Collateral
Account on the same day of receipt (provided that any such deposits shall not
include any Excluded Amounts with respect to any HELOCs). Any and all funds at any time on deposit
in, or otherwise to the credit of, the Collateral Account shall be held in trust by the Collateral
Agent for the benefit of the Secured Parties.

(c) Subject to Sections 4.6 (e) and 4.25 hereof, the Servicer shall, on or
after each Monthly Remittance Date but no later than the Business Day immediately preceding the
next following Payment Date, request the Collateral Agent to (x) release from the Collection
Account amounts in accordance with the Servicer Report delivered to the Collateral Agent for such
Payment Date, and (y) withdraw (A) all amounts on deposit in the Collection Account on such Monthly
Remittance Date, plus (B) to the extent not included in the amounts referred to in clause
(A) above, all Monthly Advances deposited into the Collection Account with respect to the
related Remittance Period, plus (C) to the extent not included in the amounts referred to in clause
(A) above, the Monthly Interest Advance deposited into the Collection Account for such Monthly
Remittance Date (net of charges against or withdrawals from the Collection Account pursuant to this
Section 4.6) and deposit such amounts into the Collateral Account for application pursuant
to the terms of the Security Agreement; provided, however, that in no event shall the Servicer
request the Collateral Agent to withdraw the amounts referred to in this clause (ii) in
excess of an amount equal to the product of (x) the Loan Rate for the related Remittance Period,
(y) the weighted average Outstanding Purchase Price of the Mortgage Loans owned by the Issuer
during the related Remittance Period and (z) 1/12.

(i) The Servicer shall be entitled to reimbursement for Monthly Advances and Servicing
Advances previously made pursuant to Sections 5.1 or 4.9 hereof, respectively,
either by (x) requesting, by delivery of a Servicer Report, the Collateral Agent to withdraw funds
from the Collection Account to reimburse the Servicer for such Monthly Advances, or (y) retaining
from interest payments on the related Mortgage Loans the amount of such Monthly Advances prior to
the deposit of such interest payments into the Collection Account, provided, however, that such
retention is reflected in a Servicer Report delivered to the Collateral Agent no later than the
Monthly Remittance Date for the Remittance Period in which such retention occurred, the Servicer’s
right to reimbursement pursuant to this clause (c)(i) being limited to amounts received on
the related Mortgage Loan (excluding any Excluded Amounts) that represent late payments of interest
respecting which any such Monthly Advance was made, it being understood that, in the case of any
such reimbursement, the Servicer’s right thereto shall be prior to the rights of the Purchaser,
except that, where the Servicer is required to repurchase a Mortgage Loan pursuant to Sections
6.2 and 7.1 hereof, the Servicer’s right to such reimbursement shall be subsequent to
the payment to the Purchaser of the Repurchase Price pursuant to such Sections 6.2 and
7.1 and all other amounts required to be paid to the Purchaser with respect to such
Mortgage Loan.

(ii) [reserved].

(d) Subject to Section 4.25 hereof, the Servicer shall, on or before each Monthly
Remittance Date but no later than the Business Day immediately preceding the next following Payment
Date, by delivery of the Servicer Report to the Collateral Agent, request the Collateral Agent to
withdraw and remit to the Servicer on such date of delivery from the amounts in the Collection
Account referred to in clauses (A), (B) and (C) of Section 4.6(c) hereof,
an amount equal to (i) the Servicing Fee for the related Remittance Period and (ii) if and to the
extent previously deposited into the Collection Account, any unpaid servicing related fees and
charges to which the Servicer is entitled pursuant to Section 6.3(b) hereof. To the extent
that the Servicing Fee and such other servicing related fees and charges are not remitted to the
Servicer as provided above, they shall be paid to the Servicer as Allocated Expenses in the method
and manner specified in the Security Agreement. Notwithstanding the foregoing, the Servicer shall
be entitled to retain from the interest payments on the Mortgage Loans (excluding any Excluded
Amounts) owned by the Purchaser prior to deposit of such payments into the Collection Account, the
Servicing Fee to which it is entitled relating to such Mortgage Loans provided that any such
retention is reflected in the Servicer Report delivered to the Collateral Agent for the Remittance
Period in which such retention occurred.

(e) Subject to the provisions of Section 4.6(f) hereof, the Servicer may, on any
Business Day, request the Collateral Agent to withdraw any or all principal payments or collections
on deposit in the Collection Account and deposit such amounts into the Collateral Account;
provided, however, that any interest payment accompanying a principal payment shall only be
deposited into the Collateral Account in accordance with Section 4.6(c) hereof.

(f) The Servicer shall establish a separate account within the Collection Account to hold
amounts deposited into the Collection Account with respect to Mortgage Loans that have been
identified for sale by the Purchaser to a Mortgage Loan Buyer (a “Mortgage Loan Buyer
Account”). Upon the establishment by the Purchaser and a Mortgage Loan Buyer of a Cut-Off Date
for the sale of Mortgage Loans by the Purchaser to the Mortgage Loan Buyer, all amounts (including
Monthly Advances but excluding Monthly Interest Advances) in respect of such Mortgage Loans which
are deposited into the Collection Account on and after the Cut-Off Date and prior to the closing
date for such sale (i) shall be directed by the Servicer to be held in the Mortgage Loan Buyer
Account established for such sale and (ii) shall not be deposited into the Collateral Account
pursuant to Section 4.6(c) or (e) hereof but shall remain in the Mortgage Loan
Buyer Account until the closing or abandonment of such sale. Upon the closing of such sale, the
Servicer shall, on the closing date for such sale, request the Collateral Agent to withdraw funds
from the Mortgage Loan Buyer Account representing the amounts deposited into the Collection Account
in respect of the Mortgage Loans sold to the Mortgage Loan Buyer during the period on and after the
related Cut-Off Date and prior to such closing date and remit such amounts to the account of the
Mortgage Loan Buyer as designated by the Purchaser. Upon failure of such sale, the amounts in the
Mortgage Loan Buyer Account established for such sale shall be returned to the Collection Account
for application pursuant to the provisions of this Purchase Agreement. If the sale to the Mortgage
Loan Buyer is abandoned, then either (i) if any portion of the amounts in the Mortgage Loan Buyer
Account established for such sale were included in the calculation of a Sold Loan Interest Payment
Amount for a prior Payment Date, the Servicer shall, on the date such sale is abandoned, request
the Collateral Agent to withdraw the amounts in the Mortgage Loan Buyer Account that were so
included and the Collateral Agent shall deposit such amounts into the Collateral Account for
application pursuant to the provisions of the Security Agreement, or (ii) if or to the extent that
the provisions of clause (i) are not applicable, the amounts in the Mortgage Loan Buyer Account
established for such sale shall be returned to the Collection Account for application pursuant to
the provisions of this Purchase Agreement.

Section 4.7 Establishment of, and Deposits to, Proceeds Account.

The Servicer shall establish and maintain one (1) or more Proceeds Accounts which shall be
held in trust in the name of the Collateral Agent for the benefit of the Secured Parties, in the
form of time deposit or demand accounts, in a manner which shall provide maximum available
insurance thereunder. Funds deposited in any Proceeds Account may be invested by the Servicer
which shall be entitled to any investment income therefrom except as otherwise required by law.
Funds deposited in any Proceeds Account may be drawn on by the Servicer pursuant to Section
4.8 hereof.

The Servicer shall deposit in such Proceeds Account within two (2) Business Days and retain
therein all amounts representing Insurance Proceeds or Condemnation Proceeds which are to be
applied to the restoration or repair of any Mortgaged Property.

The Servicer shall make withdrawals from any Proceeds Account only to effect such payments as
are required under this Purchase Agreement, as set forth in Section 4.8 hereof. To the
extent required by law, the Servicer shall pay interest on escrowed funds to the Mortgagor
notwithstanding that such Proceeds Account may be non-interest bearing or that interest paid
thereon is insufficient for such purposes.

Section 4.8 Permitted Withdrawals From Proceeds Account.

Withdrawals from any Proceeds Account may be made by the Servicer only:

(1) For transfer to the Collection Account and application to reduce the principal
balance of a Mortgage Loan in accordance with the terms of the related Mortgage and Mortgage
Note;

(2) For application to restoration or repair of the Mortgaged Property pursuant to the
procedures outlined in Section 4.15 hereof; and

(3) To pay to the Mortgagor, to the extent required by law, any interest paid on the
funds deposited in the Proceeds Account.

Section 4.9 Servicing Advances.

The Servicer shall make Servicing Advances with respect to each Mortgage Loan, including
advances of taxes or other charges which are or may become a lien on the related Mortgaged
Property, and advances of premiums for fire and hazard insurance coverage on the related Mortgaged
Property, to the extent not paid by the related Mortgagor, unless the Servicer provides an
Officer’s Certificate to the Purchaser stating that such Servicing Advance would not be recoverable
in its reasonable judgment.

Section 4.10 Protection of Accounts.

Amounts on deposit in the Collection Account may at the direction of the Servicer be invested
by the Collateral Agent in Eligible Investments; provided, however, that in the event that amounts
on deposit in the Collection Account (which shall be properly titled to insure the funds in such
account on a loan-by-loan basis) exceed the amount fully insured by the FDIC (the “Insured
Amount”) the Servicer shall be obligated to direct the Collateral Agent to invest the excess
amount over the Insured Amount in Eligible Investments on the next Business Day as such excess
amount becomes present in the Collection Account. Monies held in the Collection Account shall be
invested in Eligible Investments having maturities of no greater than one day; provided, however,
that if there are no Senior Notes then outstanding, monies held in the Collection Account shall be
invested in Eligible Investments having maturities of no greater than thirty (30) days. So long as
there are Eligible Investments having maturities of greater than one (1) day, the Purchaser shall
not issue Secured Liquidity Notes. All such Eligible Investments shall be made in the name of, and
shall be payable to, the Collateral Agent for the benefit of the Secured Parties.

Section 4.11 Maintenance of Hazard Insurance.

The Servicer shall cause to be maintained for each Mortgage Loan hazard insurance such that
all buildings upon the Mortgaged Property are insured by a generally acceptable insurer pursuant to
the Servicer’s Customary Servicing Procedures against loss by fire and hazards of extended coverage
in an amount which is at least equal to, to the extent permitted by applicable law, the lesser of
(i) the maximum insurable value of the improvements securing such Mortgage Loan and (ii) the unpaid
principal balance of the Mortgage Loan plus, in the case of a Second Lien Mortgage Loan or HELOC,
the unpaid principal balance of the first lien mortgage on the related Mortgaged Property, and in
each case in an amount such that the proceeds thereof shall be sufficient to prevent the Mortgagor
or the loss payee from becoming a co-insurer.

If upon origination or acquisition of the Mortgage Loan, the related Mortgaged Property was
located in an area identified in the Federal Register by the Federal Emergency Management Agency as
having special flood hazards (and such flood insurance has been made available) the Servicer shall
cause to be in effect a flood insurance policy meeting the requirements of the current guidelines
of the Flood Insurance Administration with a generally acceptable insurance carrier pursuant to the
Servicer’s Customary Servicing Procedures in an amount representing coverage equal to the lesser of
(i) the minimum amount required, under the terms of coverage, to compensate for any damage or loss
on a replacement cost basis (or the unpaid principal balance of the Mortgage Loan (and, in the case
of a Second Lien Mortgage Loan or HELOC, the unpaid principal balance of the first lien mortgage on
the related Mortgaged Property) if replacement cost coverage is not available for the type of
building insured) and (ii) the maximum amount of insurance which is available under the Flood
Disaster Protection Act of 1973, as amended (assuming the Mortgaged Property is located in an area
participating in the programs maintained under such Act). If at any time during the term of the
Mortgage Loan, the Servicer determines in accordance with applicable law, that a Mortgaged Property
is located in a special flood hazard area and is not covered by flood insurance or is covered in an
amount less than the amount required by the Flood Disaster Protection Act of 1973, as amended, the
Servicer shall notify the related Mortgagor that the Mortgagor must obtain such flood insurance
coverage, and if said Mortgagor fails to obtain the required flood insurance coverage within
forty-five (45) days after such notification, the Servicer shall immediately place in force the
required flood insurance on the Mortgagor’s behalf.

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 are generally acceptable
companies pursuant to the Servicer’s Customary Servicing Procedures and are licensed to do business
in the jurisdiction in which the Mortgaged Property is located. The Servicer shall determine that
such policies provide sufficient risk coverage and amounts, that they insure the property owner,
and that they properly describe the property address. The Servicer shall furnish to the Mortgagor
a formal notice of expiration of any such insurance in sufficient time for the Mortgagor to arrange
for renewal coverage by the expiration date.

Pursuant to Section 4.5 hereof and except as otherwise set forth in Section
4.27 hereof with respect to any Excluded Amounts related to any HELOCs, any amounts collected
by the Servicer under any such policies (other than amounts to be deposited in any Proceeds Account
and applied to the restoration or repair of the related Mortgaged Property or to be released to the
Mortgagor in accordance with the Servicer’s Customary Servicing Procedures as specified in
Section 4.15 hereof) shall be deposited in the Collection Account subject to withdrawal
pursuant to Section 4.6 hereof.

Section 4.12 Maintenance of Mortgage Impairment Insurance.

If the Servicer shall obtain and maintain a blanket policy insuring against losses arising
from fire and hazards covered under extended coverage 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 4.11 hereof and otherwise complies with all other requirements of Section
4.11, it shall conclusively be deemed to have satisfied its obligations as set forth in such
Section 4.11. Any amounts collected by the Servicer under any such policy relating to a
Mortgage Loan shall be deposited in the Collection Account subject to withdrawal pursuant to
Section 4.6 hereof. Such policy may contain a deductible clause, in which case, in the
event that there shall not have been maintained on the related Mortgaged Property a policy
complying with Section 4.11 hereof, and there shall have been a loss which would have been
covered by such policy, the Servicer shall deposit in the Collection Account at the time of such
loss the amount not otherwise payable under the blanket policy because of such deductible clause,
such amount to be deposited from the Servicer’s funds, without reimbursement therefor. Upon
request of the Purchaser, the Servicer shall cause to be delivered to the Purchaser a certified
true copy of such policy.

Section 4.13 Maintenance of Fidelity Bond and Errors and Omissions Insurance Policy.

The Servicer shall maintain with appropriate insurers of a type commonly insuring such risks,
at its own expense, a blanket fidelity bond, with broad coverage on all officers, employees or
other persons acting in any capacity requiring such persons to handle funds, money, documents or
papers relating to the Mortgage Loans. Such fidelity bond 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, and negligent acts of such persons. The Servicer shall also maintain
with appropriate insurers of a type commonly insuring such risks, at its own expense, an errors and
omissions insurance policy, with broad coverage on all officers, employees or other persons acting
in any capacity requiring such persons to handle funds, money, documents or papers relating to the
Mortgage Loans. No provision of this Section 4.13 requiring such fidelity bond or errors
and omissions insurance policy shall diminish or relieve the Servicer from its duties and
obligations as set forth in this Purchase Agreement. The minimum coverage under such fidelity bond
or errors and omissions insurance policy shall be at least equal to the corresponding amounts
required by the Servicer’s Customary Servicing Procedures. Upon the request of the Purchaser, the
Servicer shall cause to be delivered to the Purchaser a certified true copy of such fidelity bond
and such errors and omissions insurance policy.

Section 4.14 Inspections.

The Servicer shall inspect the Mortgaged Property in accordance with its Customary Servicing
Procedures.

Section 4.15 Restoration of Mortgaged Property.

The Servicer need not obtain the approval of the Purchaser prior to releasing any Insurance
Proceeds or Condemnation Proceeds to the Mortgagor to be applied to the restoration or repair of
the Mortgaged Property if such release is in accordance with the Servicer’s Customary Servicing
Procedures. At a minimum, the Servicer shall comply with the following conditions in connection
with any such release of Insurance Proceeds or Condemnation Proceeds:

(1) The Servicer shall receive satisfactory independent verification of completion of
repairs and issuance of any required approvals with respect thereto;

(2) The Servicer shall take all steps necessary to preserve the priority of the lien of
the Mortgage, including, but not limited to, requiring waivers with respect to mechanics’
and materialmen’s liens;

(3) The Servicer shall verify that the Mortgage Loan is not in default; and

(4) Pending repairs or restoration, the Servicer shall place the Insurance Proceeds or
Condemnation Proceeds in any Proceeds Account.

	 	 	 
	Section 4.16

	 	[Reserved].
	
 
	 	 
	Section 4.17

	 	Title, Management and Disposition of REO Property.
	
 
	 	 

In the event that title to any Mortgaged Property is acquired in foreclosure or by deed in
lieu of foreclosure, the deed or certificate of sale shall be taken in the name of the Servicer as
agent for the Secured Parties, or in the event the Servicer 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 reasonably
acceptable to the Purchaser and the Secured Parties. The Person or Persons holding such title
other than the Servicer shall acknowledge in writing that such title is being held as nominee for
the Servicer.

The Servicer shall manage, conserve, protect and operate each REO Property for the Purchaser
solely for the purpose of its prompt disposition and sale. The Servicer, either itself or through
an agent selected by the Servicer, shall manage, conserve, protect and operate the REO Property in
the manner that it manages, conserves, protects and operates other foreclosed property for its own
account, and in the manner that similar property in the locality as the REO Property is managed.
The Servicer shall attempt to sell the REO Property on such terms and conditions as the Servicer
deems to be in the best interest of the Purchaser. The Servicer shall dispose of the REO Property
in accordance with the Servicer’s Customary Servicing Procedures as soon as possible.

The Servicer shall also maintain on each REO Property fire and hazard insurance with extended
coverage in an amount which is at least equal to the maximum insurable value of the improvements
which are a part of such property, liability insurance and, to the extent required and available
under the Flood Disaster Protection Act of 1973, as amended, flood insurance.

The disposition of REO Property 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 Purchaser. All
REO Disposition Proceeds shall be promptly deposited in the Collection Account.

Section 4.18 Servicer Reports.

The Servicer shall deliver a report (the “Servicer Report”) to the Purchaser, the
Administrator, the Collateral Agent, the Indenture Trustee, the Custodian, each Swap Counterparty
and the SLN Placement Agents on or before the Business Day immediately preceding each Payment Date,
containing the information set forth in the form of report attached hereto as Exhibit D.

Section 4.19 Real Estate Owned Reports.

The Servicer shall furnish to the Purchaser on or before each Payment Date a statement with
respect to any REO Property covering the operation of such REO Property and the Servicer’s efforts
in connection with the sale of such REO Property and any rental of such REO Property incidental to
the sale thereof. That statement shall be accompanied by such other information as the Purchaser
shall reasonably request.

Section 4.20 Liquidation Reports.

As promptly as practicable following the foreclosure sale of any Mortgaged Property or the
acquisition thereof by the Purchaser pursuant to a deed in lieu of foreclosure, the Servicer shall
submit to the Purchaser a liquidation report with respect to such Mortgaged Property.

Section 4.21 Reports of Foreclosures and Abandonments of Mortgaged Property.

Following the foreclosure sale or abandonment of any Mortgaged Property, the Servicer shall
report such foreclosure or abandonment as required pursuant to Section 6050J of the Code.

	 	 	 
	Section 4.22

	 	[Reserved].
	
 
	 	 
	Section 4.23

	 	[Reserved].
	
 
	 	 
	Section 4.24

	 	Monthly Portfolio Report.
	
 
	 	 

The Servicer shall on the 20th of each month (or the next following Business Day),
deliver to the SLN Placement Agents, with a copy to each Swap Counterparty, a report with respect
to the portfolio of Mortgage Loans owned by the Purchaser as of the 5th of such month
for distribution to investors in, and potential investors in, the Secured Liquidity Notes, in
substantially the form attached as Exhibit F hereto. None of the Swap Counterparties or
the SLN Placement Agents shall have any duty to examine any such report.

Section 4.25 Servicer Advance Facility.

The Servicer is authorized to enter into a facility (an “Advance Facility”) with any
Person which provides that such Person (an “Advancing Person”) may fund (whether by direct
payment or by way of a loan to the Servicer) Monthly Advances, Monthly Interest Advances, and/or
Servicing Advances under this Purchase Agreement, although no such Advance Facility shall reduce or
otherwise affect the Servicer’s obligation to fund such Monthly Advances, Monthly Interest
Advances, and/or Servicing Advances. If the Servicer enters into an Advance Facility pursuant to
this Section 4.25, upon the reasonable request of the Advancing Person, the Servicer shall
seek to procure from the Collateral Agent a letter to the Advancing Person, confirming that the
Collateral Agent has received notice of the existence of the Advance Facility. If an Advancing
Person funds any Monthly Advance, Monthly Interest Advance, and/or Servicing Advance (whether by
direct payment or by way of a loan to the Servicer) and the Collateral Agent is provided with
written notice acknowledged by the Servicer that such Advancing Person is entitled to reimbursement
(whether in respect of such direct payment or to offset or pay down any loan to the Servicer), such
Advancing Person (or nominee) shall be entitled to reimbursement in respect of such Monthly
Advance, Monthly Interest Advance, and/or Servicing Advance in the place and stead of the Servicer,
to the same extent that the Servicer is entitled to reimbursement under the Program Documents.
Such notice from the Advancing Person must specify the amount of the reimbursement, the section of
this Purchase Agreement (or other Program Document) that permits the applicable Monthly Advance,
Monthly Interest Advance, or Servicing Advance to be reimbursed and the section(s) of the Advance
Facility documentation that entitle the Advancing Person (or nominee) (rather than the Servicer) to
request reimbursement from the Collateral Agent, and include the Servicer’s acknowledgement thereto
or proof of an event of default under the documentation for the Advance Facility entitling the
Advancing Person to give such notice without the acknowledgement of the Servicer. The Collateral
Agent shall have no duty or liability with respect to any calculation of any reimbursement to be
paid to an Advancing Person, and shall be entitled to conclusively rely without independent
investigation on the Advancing Person’s notice. An Advancing Person whose obligations are limited
to the funding of Monthly Advances, Monthly Interest Advances, and/or Servicing Advances (whether
by direct payment or by way of a loan to the Servicer) shall not be required to meet the
qualifications of the Servicer or any permitted assignee under Section 9.5 hereof, and will
not be deemed to be a sub-servicer or assignee of the Servicer.

If any Advance Facility is entered into, upon such facility becoming effective with respect to
this Purchase Agreement and the other Program Documents, the Servicer shall not be permitted to
reimburse itself for Monthly Advances, Monthly Interest Advances, and Servicing Advances under
Sections 4.5 or 4.6(c), or to be reimbursed pursuant to the Security Agreement, but
instead the Advancing Person (or nominee) shall be reimbursed directly by (i) the Collateral Agent,
from the proceeds of the Collection Account or the Collateral Account upon receipt of the written
notice referred to above, or (ii) by the Servicer arranging for an appropriate portion of interest
payments on Mortgage Loans to be directed to the Advancing Person (or nominee) as contemplated by
Section 4.6(c)(i)(y).

Section 4.26 Special Servicing Provisions Related to Junior Loans.

(a) With respect to any Junior Loan, the Servicer may consent to the placing of a lien senior
to that of such Junior Loan on the related Mortgaged Property, if:

(i) the new senior lien secures a mortgage loan that refinances an existing first
mortgage loan, and

(ii) either (a) the LTV of the new mortgage loan is equal to or less than the LTV of
the first mortgage loan to be replaced (for purposes of calculating the LTV, the value of
the Mortgaged Property will be measured by the lesser of (A) the Appraised Value of the
Mortgaged Property as of the Closing Date for the related Junior Loan and (B) the Appraised
Value of the Mortgaged Property as of the date of the refinancing referenced in clause (i))
or (b) the CLTV of the existing Junior Loan (together with the new mortgage loan) is equal
to or less than 100% (for purposes of calculating the CLTV, the value of the Mortgaged
Property will be measured as the lesser of (A) the Appraised Value of the Mortgaged Property
as of the Closing Date for such Junior Loan and (B) the Appraised Value of the Mortgaged
Property as of the date of the refinancing referenced in clause (i)).

(b) With respect to any HELOC, the Servicer may also, without approval from the Rating
Agencies, each Swap Counterparty, the Collateral Agent or any other Secured Party, increase the
Credit Limit on any HELOC if:

(i) the increase in the Credit Limit of a HELOC does not cause (x) such Credit Limit to
exceed $1 million or (y) the CLTV of such HELOC to exceed 100%, and

(ii) the increase is consistent with the underwriting policies of the Seller with
respect to HELOCs.

Section 4.27 Special Payment Allocation Mechanics for Certain HELOCs.

To the extent any Draws are made on any HELOC after the Closing Date for such HELOC that are
not purchased by the Purchaser as Additional Balances pursuant to Section 2.1(a) hereof on
a subsequent Closing Date, the ownership of the related principal balances shall be retained by the
Seller (or its assignee). With respect to any deposits required to be made by the Servicer into
the Collection Account or the Collateral Account pursuant to this Purchase Agreement, all
collections received by the Servicer in respect of any such HELOC shall be allocated pro rata as
between the Purchaser and the Seller (or its assignee), based on the relative proportions of the
aggregate unpaid principal balance of the HELOC and any Additional Balances related thereto and the
aggregate unpaid principal balance of any Draws made on any such HELOC after the Closing Date
thereof that have not been purchased by the Purchaser as Additional Balances pursuant to
Section 2.1(a) hereof, respectively, as of the close of business on the Business Day
preceding the date of receipt of such collections. Notwithstanding any other provision hereof or
of any other Program Document, payments and collections allocable to any Excluded Amounts shall not
be deposited into the Collection Account or the Collateral Account, and shall be distributed by the
Servicer to the Seller (or its assignee) no less frequently than monthly in accordance with
reasonable instructions provided by the Seller.

ARTICLE 5

SERVICER ADVANCES

Section 5.1 Monthly Advances.

On or after each Monthly Remittance Date, but no later than the Business Day immediately
preceding the next following Payment Date, the Servicer shall deposit into the Collection Account
from its own funds an amount equal to all payments of interest which were due on Mortgage Loans
that became Delinquent Loans or Defaulted Loans during the related Remittance Period and which
remain unpaid at the close of business on the last day of the related Remittance Period or which
were deferred pursuant to Section 4.1 hereof (excluding any portion of any such Monthly
Payments with respect to HELOCs which, if collected, would have constituted Excluded Amounts)
(“Monthly Advances”). The Servicer’s obligation to make such Monthly Advances as to any
Mortgage Loan will continue through the last Monthly Payment due prior to the payment in full of
the Mortgage Loan or through the Payment Date for the distribution of all proceeds of sale of the
Mortgage Loan and other payments or recoveries (including Insurance Proceeds and Condemnation
Proceeds) with respect to the Mortgage Loan, unless the Servicer provides an Officer’s Certificate
to the Purchaser stating that such Monthly Advance would not be recoverable in its reasonable
judgment.

Section 5.2 Monthly Interest Advances.

On or after each Monthly Remittance Date, but no later than the Business Day immediately
preceding the next following Payment Date, the Servicer shall deposit in the Collection Account
from its own funds an amount equal to the Monthly Interest Advance for such Monthly Remittance
Date.

ARTICLE 6

GENERAL SERVICING PROCEDURES

Section 6.1 Transfers of Mortgaged Property.

The Servicer shall enforce any “due-on-sale” provision in accordance with the Servicer’s
Customary Servicing Procedures and applicable law contained in any Mortgage or Mortgage Note and to
deny assumption by the Person to whom the Mortgaged Property has been or is about to be sold
whether by absolute conveyance or by contract of sale, and whether or not the Mortgagor remains
liable on the Mortgage and the Mortgage Note. When the Mortgaged Property has been conveyed by the
Mortgagor, the Servicer shall, to the extent it has knowledge of such conveyance, exercise its
rights to accelerate the maturity of such Mortgage Loan under the “due-on-sale” clause applicable
thereto; provided, however, that the Servicer shall not exercise such rights if prohibited by law
from doing so.

If the Servicer reasonably believes it is unable under applicable law to enforce such
“due-on-sale” clause, the Servicer shall enter into (i) an assumption and modification agreement
with the Person to whom the Mortgaged Property has been conveyed, pursuant to which such Person
becomes liable under the Mortgage Note and the original Mortgagor remains liable thereon or (ii) in
the event that the Servicer is unable under applicable law to require that the original Mortgagor
remain liable under the Mortgage Note, a substitution of liability agreement with the purchaser of
the Mortgaged Property pursuant to which the original Mortgagor is released from liability and the
purchaser of the Mortgaged Property is substituted as Mortgagor and becomes liable under the
Mortgage Note.

Section 6.2 Satisfaction of Mortgages and Release of Mortgage Loan Files.

Upon the payment in full of each Mortgage Loan, 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 notify the Purchaser and the Collateral Agent.

If the Servicer satisfies or releases a Mortgage without first having obtained payment in full
of the indebtedness secured by the Mortgage or should the Servicer otherwise prejudice any rights
the Purchaser may have under the mortgage instruments which materially and adversely affects the
value of the related Mortgage Loan, upon written demand of the Purchaser, the Servicer shall
purchase the related Mortgage Loan at the Repurchase Price by deposit thereof in the Collateral
Account within two (2) Business Days of receipt of such demand by the Purchaser.

Upon receipt of the Repurchase Price by the Collateral Agent, the Purchaser and the Servicer
shall arrange for the reassignment of the Mortgage Loans to the Servicer and the delivery to the
Servicer of any documents held by the Custodian relating to the reassigned Mortgage Loans. The
Servicer shall, simultaneously with such assignment, give written notice to the Seller, the
Collateral Agent, the Indenture Trustee and each Swap Counterparty that such purchase has taken
place.

Section 6.3 Servicing Compensation.

As compensation for its services hereunder, the Servicer shall be entitled to (a) the
Servicing Fee and (b) any late payment charges, release fees, bad check charges, assumption fees
and any other servicing-related fees collected from Mortgagors with respect to the Mortgage Loans,
other than any prepayment penalties or prepayment premiums. The Servicer shall be required to pay
all expenses incurred by it in connection with its servicing activities hereunder and shall not be
entitled to reimbursement therefor except as specifically provided herein.

Section 6.4 Annual Statement as to Compliance.

The Servicer shall deliver to the Purchaser, the Administrator, the Collateral Agent, the
Indenture Trustee, the SLN Placement Agents and each Swap Counterparty, on or before June 30 of
each year beginning 2006, an Officer’s Certificate, stating that (i) a review of the activities of
the Servicer during the preceding calendar year and of performance under this Purchase Agreement
has been made under such officer’s supervision, and (ii) to the best of such officer’s knowledge,
based on such review, the Servicer has fulfilled its obligations in all material respects under
this Purchase Agreement throughout such year, or, if there has been a default in the fulfillment of
any such obligation, specifying each such default known to such officer and the nature and status
thereof and the action being taken by the Servicer to cure such default.

Section 6.5 Annual Financials, Annual Independent Public Accountants’ Servicing
Report. On or before June 30 of each year beginning 2006, the Servicer, at its expense, shall
cause a firm of internationally recognized independent public accountants which is one of the “big
four” and is a member of the American Institute of Certified Public Accountants, to furnish a
report to the Purchaser, the Administrator, the Collateral Agent, the Indenture Trustee, the SLN
Placement Agents and each Swap Counterparty stating that such firm has examined the Servicer’s
overall servicing operations in accordance with the minimum standards identified in the Mortgage
Bankers Association of America’s Uniform Single Attestation Program for Mortgage Bankers (USAP),
and stating such firm’s conclusions relating thereto. None of the Collateral Agent, any Swap
Counterparty or the SLN Placement Agents shall have any duty to examine such report.

The Purchaser and the Seller shall keep or cause to be kept in reasonable detail books and
records of account of their assets and business and shall clearly reflect therein the transfer of
the Mortgage Loans to the Purchaser. The Company shall furnish or cause to be furnished to the
Purchaser, the Administrator, the Collateral Agent, the SLN Placement Agents and each Swap
Counterparty the following financial statements: (x) as soon as available and in any event within
ninety (90) days after the end of each fiscal year of the Performance Guarantor, the consolidated,
audited balance sheet of the Performance Guarantor, and the balance sheets of the Company, as of
the end of each such fiscal year, and the audited statements of income and changes in equity of
each of the above entities, and the audited statement of cash flows of the Performance Guarantor
(inclusive of the Company), for such fiscal year and (y) as soon as available and in any event
within forty-five (45) days after the end of each quarter (including the fourth quarter), the
consolidated and consolidating, unaudited balance sheet of the Performance Guarantor (inclusive of
the Company) as of the end of each quarter, and the unaudited statements of income and changes in
equity of the Performance Guarantor (inclusive of the Company), and the unaudited statement of cash
flows of the Performance Guarantor (inclusive of the Company), for the portion of the fiscal year
then ended, and (z) within 45 days after the end of each month, monthly consolidated and unaudited
statements of income and changes in equity (and, to the extent available, cash flow statements) and
balance sheets as provided in clause (y), all of which have been prepared in accordance with GAAP
and certified by the chief financial officer of the Performance Guarantor or the Company (as
applicable) in the form of a compliance certificate to be delivered along with the above financial
statements.

Section 6.6 Right to Examine Servicer Records.

Each of the Purchaser, the Administrator, each Swap Counterparty, the Collateral Agent (acting
on its own behalf or at the written direction of the Required Senior Noteholders) and the Indenture
Trustee (acting on its own behalf or at the written direction of the Required Subordinated
Noteholders) (or any of their agents, attorneys or representatives) upon at least three (3)
Business Days’ prior notice, shall have the right to reasonable access to the books, records, or
other information of the Servicer, whether held by the Servicer or by another on its behalf, with
respect to or concerning this Purchase Agreement or the Mortgage Loans owned by the Purchaser,
during regular business hours or at such other times as may be reasonable under applicable
circumstances.

ARTICLE 7

REPURCHASE OBLIGATION

Section 7.1 Servicer’s Repurchase Obligations.

Upon the earlier of the Servicer having actual knowledge of, or receipt of notice of, a breach
of any representation or warranty made by the Company, in its capacity as Servicer, as set forth in
Section 3.1 hereof, which materially and adversely affects the value of a Mortgage Loan,
the Servicer shall use its best efforts to cure and correct any such breach, and, in the event such
breach is not cured and corrected within sixty (60) days, the Mortgage Loan shall be purchased by
the Servicer at the Repurchase Price within such sixty (60) day period, pursuant to Section
3.3 hereof.

Upon deposit by the Servicer of the Repurchase Price in the Collateral Account, the Purchaser,
the Custodian and the Servicer shall arrange for the reassignment of Mortgage Loans adversely
affected by such breach to the Servicer according to the Servicer’s instructions, and the delivery
to the Servicer of any documents held by the Purchaser or the Custodian relating to the reassigned
Mortgage Loans. The Servicer shall, simultaneously with such assignment, give written notice to
the Seller, the Collateral Agent, the Indenture Trustee and each Swap Counterparty that such
purchase has taken place.

In addition to such repurchase obligation, the Servicer shall indemnify the Purchaser and hold
it harmless against any losses, damages, transfer taxes, penalties, fines, forfeitures, reasonable
and necessary legal fees and related costs, judgments, and other costs and expenses resulting from
any claim, demand, defense or assertion based on or grounded upon, or resulting from, a breach of
the representations and warranties of the Servicer contained in this Purchase Agreement. The
Servicer shall not be obligated under this indemnity for any indirect or consequential damages. It
is understood and agreed that the obligations of the Servicer set forth in this Section 7.1
to cure or repurchase a Mortgage Loan and to indemnify the Purchaser constitute the sole remedies
of the Purchaser respecting a breach of such representations and warranties.

ARTICLE 8

SERVICER TO COOPERATE

Section 8.1 Provision of Information.

During the term of this Purchase Agreement, the Servicer shall furnish to the Purchaser, each
Swap Counterparty, the Administrator, the Indenture Trustee (acting on its own behalf or at the
written direction of the Required Subordinated Noteholders) and the Collateral Agent (acting on its
own behalf or at the written direction of the Senior Noteholders) such periodic, special, or other
reports or information as they may reasonably request from time to time in order to effectuate the
purposes and to carry out the terms of this Purchase Agreement. All such reports, documents or
information shall be provided by and in accordance with all reasonable instructions and directions
which the Purchaser, each Swap Counterparty, the Administrator, the Indenture Trustee and the
Collateral Agent may give.

The Servicer shall execute and deliver all such instruments and take all such action as the
Purchaser, the Collateral Agent (acting on its own behalf or on behalf of the Senior Noteholders),
the Custodian, the Indenture Trustee (acting on its own behalf or at the written direction of the
Required Subordinated Noteholders), each Swap Counterparty, or the SLN Placement Agents may
reasonably request from time to time, in order to effectuate the purposes and to carry out the
terms of this Purchase Agreement. In the event and to the extent that any conflict shall exist
among requests issued by any of the foregoing, requests issued by the Collateral Agent and the
Indenture Trustee shall prevail; and notwithstanding anything to the contrary herein, the Servicer
shall not be in default of its obligations hereunder if it does not perform requested actions
because of inconsistency with requests issued by the Collateral Agent and the Indenture Trustee.

ARTICLE 9

THE SERVICER

Section 9.1 Indemnification of Third-Party Claims.

The Servicer agrees to indemnify and hold harmless the Purchaser, each Swap Counterparty, the
Administrator, the Collateral Agent, the Indenture Trustee, the Owner Trustee and the SLN Placement
Agents 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 Purchaser, any Swap
Counterparty, the Administrator, the Collateral Agent, the Indenture Trustee, the Owner Trustee or
the SLN Placement Agents (and any of their officers, directors, employees and agents) may sustain
in any way related to the failure of the Servicer to perform its duties and service the Mortgage
Loans in strict compliance with the terms of this Purchase Agreement, or its gross negligence,
willful misconduct or bad faith. The Servicer shall immediately notify the Purchaser, each Swap
Counterparty, the Administrator, the Collateral Agent, the Indenture Trustee, the Owner Trustee and
the SLN Placement Agents if a claim is made by a third party with respect to a matter as to which
the Servicer has agreed to indemnify and hold harmless such parties under this Section 9.1,
and the Servicer may assume the defense of any such claim, and if assumed shall pay all expenses in
connection therewith, including counsel fees, and promptly pay, discharge and satisfy any judgment
or decree which may be entered against the Servicer or the Purchaser, any Swap Counterparty, the
Administrator, the Collateral Agent, the Indenture Trustee, the Owner Trustee or the SLN Placement
Agents in respect of such claim. The Servicer’s indemnification obligation pursuant to this
Section 9.1 shall survive the termination of this Purchase Agreement.

Section 9.2 Corporate Existence of the Servicer.

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

Section 9.3 Limitation on Liability of Servicer and Others.

Neither the Servicer nor any of the directors, officers, employees or agents of the Servicer
shall be under any liability to the Purchaser for any action taken or for refraining from the
taking of any action in good faith pursuant to this Purchase Agreement, or for errors in judgment;
provided, however, that this provision shall not protect the Servicer or any such person against
any breach of warranties or representations made herein, or failure to perform its obligations in
compliance with any standard of care set forth in this Purchase Agreement, its own gross
negligence, willful misconduct or bad faith, or any liability which would otherwise be imposed by
reason of any breach of the terms and conditions of this Purchase Agreement. The Servicer and any
director, officer, employee or agent of the Servicer may rely in good faith on any document which
it in good faith reasonably believes to be genuine and to have been adopted or signed by the proper
authorities respecting any matters arising hereunder. The Servicer shall not be under any
obligation to appear in, prosecute or defend any legal action which is not incidental to its duties
to service the Mortgage Loans in accordance with this Purchase Agreement and which in its opinion
may involve it in any expense or liability; provided, however, that the Servicer may, with the
consent of the Purchaser, undertake any such action which it may deem necessary or desirable with
respect to this Purchase Agreement and the rights and duties of the parties hereto. In such event,
the Servicer shall be entitled to reimbursement from the Purchaser of the reasonable legal expenses
and costs of such action.

Section 9.4 Limitation on Resignation of Servicer.

The Purchaser has entered into this Purchase Agreement with the Servicer in reliance upon the
representations as to the adequacy of its servicing facilities, plant, personnel, records and
procedures, its integrity, reputation and financial standing, and the continuance thereof. The
Servicer shall not resign from the obligations and duties hereby imposed on it as to each Mortgage
Loan except by consent of each Swap Counterparty, the Collateral Agent, the Indenture Trustee and
the Required Noteholders or upon the determination that its duties hereunder are no longer
permissible under applicable law and such incapacity cannot reasonably be cured by the Servicer.
Notice of any such determination permitting the resignation of the Servicer shall be delivered to
each Rating Agency and any such determination shall be evidenced by an Opinion of Counsel to such
effect delivered to the Purchaser which Opinion of Counsel shall be in form and substance
acceptable to the Purchaser. No such resignation shall become effective until a successor shall
have assumed the Servicer’s responsibilities and obligations hereunder in the manner provided in
Section 12.1 hereof, subject to Rating Agency Confirmation.

Section 9.5 Limitation on Assignment of Rights and Obligations.

The Servicer shall not assign, sell or otherwise transfer its rights, obligations, duties and
agreements hereunder (a) except as permitted by Section 4.1(b), Section 9.4 or
Section 10.1 hereof, or (b) unless consented to in writing by each Swap Counterparty, the
Collateral Agent, the Indenture Trustee and the Required Noteholders or (c) unless, in the case of
a sale or other disposition by the Servicer of all or substantially all of its servicing business,
whether by merger, consolidation, sale of assets or otherwise, the Purchaser shall have received
Rating Agency Confirmation; provided that nothing herein shall prohibit the Servicer from assigning
or otherwise transferring its right to receive any payments (including the Servicing Fee)
hereunder.

ARTICLE 10

DEFAULT

Section 10.1 Servicer Events of Default.

Each of the following shall constitute a “Servicer Event of Default” on the part of
the Servicer:

(a) Any failure by the Servicer to observe or perform in any material respect any of the
terms, covenants or agreements on the part of the Servicer set forth in this Purchase Agreement,
any Transfer Supplement or the Custodial Agreement (other than those set forth in clause
(g) below) which continues unremedied for a period of sixty (60) days after the date on which
the Servicer has actual knowledge or written notice of such failure;

(b) Any representation, warranty, statement or certification made by the Servicer shall prove
to have been incorrect in any material respect as of the time when made, and which continues to be
incorrect in any material respect for sixty (60) days after the date on which the Servicer has
actual knowledge or written notice;

(c) Any failure by the Servicer to maintain any required licenses to do business in any
jurisdiction where the Mortgaged Property is located, which failure has a material adverse effect
on the ability of the Servicer to perform its functions under this Purchase Agreement or materially
impairs the value of the Mortgage Loans, and which continues to be unremedied for a period of sixty
(60) days after the date on which the Servicer has actual knowledge or written notice of such
failure;

(d) Application for the appointment of a conservator or receiver or liquidator in any
insolvency, readjustment of debt, including bankruptcy, 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 a decree or order shall have remained in force undischarged or unstayed
for a period of sixty (60) days;

(e) 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, bankruptcy or
reorganization statute, make an assignment for the benefit of its creditors, voluntarily suspend
payment of its obligations or cease its normal business operations other than in the ordinary
course, or shall consent to the appointment of a receiver or liquidator in any insolvency,
bankruptcy, readjustment of debt, marshalling of assets and liabilities or similar proceedings of
or relating to the Servicer or all or substantially all of the property of the Servicer;

(f) The Company or any Affiliate thereof enters into a consent agreement or otherwise agrees
in writing with any federal or state regulatory agency or authority to restrict its activities, if
the default of such agreement by the Company or any Affiliate thereof entitles such applicable
federal or state agency to place the Company in receivership or conservatorship; or

(g) The failure on the part of the Servicer to make (x) any Monthly Advance required by it
under this Purchase Agreement on or before the date such advance is required to be made or (y) any
other payment or deposit required by it under this Purchase Agreement and such failure continues
unremedied for a period of three (3) Business Days after the date on which the Servicer has actual
knowledge or written notice of such failure;

At any time during the continuance of an event described in clauses (a) through
(g) above, the Purchaser may, and shall at the written request of the Required Subordinated
Noteholders, with the written consent of each Swap Counterparty, and the Required Senior
Noteholders (if the Senior Notes shall not have then been paid in full), terminate all of the
rights and obligations of the Servicer under this Purchase Agreement and in and to the Mortgage
Loans and the proceeds thereof other than unpaid Servicing Fees, Servicing Advances, Monthly
Interest Advances, and Monthly Advances. Notice of such termination shall be given to the
Collateral Agent, the Administrator, the Indenture Trustee, the Custodian, each Swap Counterparty,
each SLN Placement Agent and the Rating Agencies. Upon receipt by the Servicer of such written
notice, all authority and power of the Servicer under this Purchase Agreement, whether with respect
to the Mortgage Loans or otherwise, shall pass to and be vested in the successor appointed pursuant
to Section 12.1 hereof. Upon written request from the Purchaser, the Servicer shall
prepare, execute and deliver to the successor entity designated by the Purchaser any and all
documents and other instruments, place in such successor’s possession all Servicing Files, and do
or cause to be done all other acts or things necessary or appropriate to effect the purposes of
such notice of termination, including but not limited to the transfer and endorsement or assignment
of the Mortgage Loans and related documents, at the Servicer’s sole expense. The Servicer shall
cooperate with such successor in effecting the termination of the Servicer’s responsibilities and
rights hereunder, including without limitation, the transfer to such successor for administration
by it of all cash amounts which shall at the time be credited by the Servicer to any Collection
Account or Proceeds Account or thereafter received with respect to the Mortgage Loans.

Section 10.2 Waiver of Defaults.

With the consent of the Required Subordinated Noteholders and each Swap Counterparty, the
Purchaser, by written notice to the Collateral Agent, may waive any default by the Servicer in the
performance of its obligations hereunder and its consequences. Upon any waiver of a past default,
such default shall cease to exist, and any event of default arising therefrom shall be deemed to
have been remedied for every purpose of this Purchase Agreement. No such waiver shall extend to
any subsequent or other default or impair any right consequent thereon except to the extent
expressly so waived. Notice of any such waiver shall be given to each Rating Agency.

ARTICLE 11

TERMINATION

Section 11.1 Termination of Agreement.

This Purchase Agreement shall terminate upon (x) the final payment, other liquidation (or any
advance with respect thereto) or sale of the last Mortgage Loan held by the Purchaser hereunder and
(y) the payment in full of the Notes.

Section 11.2 Termination of Purchase Obligations.

Each of the following shall constitute a termination event under this Purchase Agreement
(each, a “Termination Event”):

(a) Any representation, warranty, statement, or certification made by the Seller (excluding
any representations or warranties made pursuant to Section 3.2 hereof) in any Program
Document shall prove to have been incorrect in any material respect as of the time when made, and
which continues to be incorrect in any material respect for a period of sixty (60) days after the
date on which the Seller has actual knowledge or written notice of such incorrect representation,
warranty, statement or certification;

(b) The failure on the part of the Seller (i) subject to the Repurchase Trigger, to perform
its obligations under Section 3.5(c) to repurchase any Mortgage Loan with a defective
Mortgage Loan File, which failure continues unremedied for a period of one (1) Business Day after
the date on which the Seller’s repurchase obligation arises, or (ii) to observe or perform in any
material respect any of the material terms, covenants or agreements of the Seller contained in the
Program Documents (other than terms, covenants or agreements specifically referred to elsewhere in
this Section 11.2) which continues unremedied for a period of thirty (30) days after the
date on which the Seller has actual knowledge or written notice of such incorrect representation,
warranty, statement or certification;

(c) Any Servicer Event of Default has occurred and is continuing (after giving effect to any
applicable grace period);

(d) An Event of Bankruptcy occurs with respect to the Performance Guarantor, the Purchaser or
the Seller;

(e) (i) The Company or the Performance Guarantor shall fail to pay (after demand, if required,
and expiration of any applicable grace period) any of its debt obligations in an aggregate amount
in excess of $20,000,000 resulting in acceleration of such debt, or (ii) subject to the Swap
Trigger, the Performance Guarantor shall fail to pay or post any of its payment obligations
(including, for the avoidance of doubt, any collateral posting obligations pursuant to any
collateral support annex or other credit support document) under any interest rate swap (including
any credit support annex or credit support document annexed or attached thereto) or similar hedging
transaction with a maximum notional amount equal to or greater than $500,000,000, whether such
obligations arise as principal, or as surety or guarantor, or (iii) any of the Financial Covenants
shall have been breached;

(f) [reserved];

(g) Non-compliance with the Portfolio Criteria shall continue for a period of thirty (30)
days, or non-compliance with the Wet Funded Loan Limitation shall continue for a period of fifteen
(15) days;

(h) Non-compliance with the Portfolio Aging Limitations, and such non-compliance shall
continue for a period of thirty (30) days;

(i) The Interest Rate Swaps shall cease, for any reason, to be in full force and effect in
accordance with their terms;

(j) (i) A Security Agreement Event of Default shall have been declared by the Required Senior
Noteholders (or, if the Senior Notes have been paid in full, the Required Subordinated Noteholders)
and shall be continuing, or an automatic Security Agreement Event of Default shall have occurred
and be continuing or (ii) an Indenture Event of Default shall have been declared by the Required
Subordinated Noteholders and shall be continuing, or an automatic Indenture Event of Default shall
have occurred and be continuing;

(k) At any time the funds on deposit in the Reserve Fund shall be less than the Required
Reserve Fund Amount for thirty (30) consecutive days or more;

(l) At any time (A) the ratio of the aggregate Outstanding Purchase Price of all Mortgage
Loans (excluding Junior Loans) that are Delinquent Loans owned by the Purchaser (including REO
Property and foreclosed property) to the aggregate Outstanding Purchase Price of all Mortgage Loans
(excluding Junior Loans) owned by the Purchaser shall be more than two and one quarter percent
(2.25%) for thirty (30) consecutive days or more, or (B) the ratio of the aggregate Outstanding
Purchase Price of all Mortgage Loans (excluding Junior Loans) that are Three Payment Delinquent
Loans owned by the Purchaser (including REO Property and foreclosed property) to the aggregate
Outstanding Purchase Price of all Mortgage Loans (excluding Junior Loans) owned by the Purchaser
shall be more than one percent (1.0%) for thirty (30) consecutive days or more;

(m) The failure of the Purchaser to maintain an agreement (in substantially the form attached
hereto as Exhibit B) with a Rated Bidder to the effect that such Rated Bidder agrees to
submit a binding bid for all non-Delinquent Loans and non-Defaulted Loans in a Termination Event
Auction, and, where such failure occurs as a result of a withdrawal or reduction of the rating
assigned to the Rated Bidder below “P-1” by Moody’s, such failure continues for a period of thirty
(30) days or more;

(n) One (1) or more Swap Counterparties fail to agree to any extension of their respective
Interest Rate Swap, and a replacement Swap Counterparty or Swap Counterparties shall not have been
obtained at least one (1) year prior to the scheduled termination date in a maximum notional amount
at least equal to the lesser of (x) the maximum notional amount of the Interest Rate Swap or
Interest Rate Swaps represented by the non-extending Swap Counterparty or Swap Counterparties or
(y) if the Program Size has been modified, an amount equal to (i) the then-current Program Size
less (ii) the maximum notional amount of all effective (as of such scheduled termination date)
Interest Rate Swaps;

(o) An Interest Rate Swap Termination Event or an Interest Rate Swap Event of Default has
occurred and is continuing after giving effect to any applicable grace period unless the maximum
notional amount of the Interest Rate Swaps that are not subject to an Interest Rate Swap
Termination Event or an Interest Rate Swap Event of Default are equal to or greater than the
then-current Program Size;

(p) On any day following the third (3rd) Payment Date under the Program Documents,
the average of the Excess Spread Rate for the Remittance Periods relating to each of the three (3)
most recent Payment Dates is less than two and three-quarters percent (2.75)%;

(q) Failure to pay the outstanding principal amount of any Series of Subordinated Notes on the
Final Scheduled Payment Date for such Subordinated Notes; and

(r) Failure of the Servicer to make any Monthly Interest Advance required by it under this
Purchase Agreement on or before the date such advance is required to be made;

provided, however, that at any time during the continuance of an event described in clauses
(a) through (c), the Purchaser may, and shall at the written request of the Required
Subordinated Noteholders, with the consent of the Required Senior Noteholders (or, if the Senior
Notes have been paid in full, such consent will not be required) and each Swap Counterparty, notify
the Seller that the commitment of the Purchaser to purchase Mortgage Loans from the Seller shall
terminate. Upon the occurrence of a Termination Event described in clauses (d), and
(g) through (r), the Purchaser shall notify the Seller that the commitment of the
Purchaser to purchase Mortgage Loans from the Seller shall terminate. Upon the occurrence of a
Termination Event described in clause (e), the Purchaser shall, at the written request of any Swap
Counterparty, notify the Seller that the commitment of the Purchaser to purchase Mortgage Loans
from the Seller shall terminate. Upon the declaration of a Termination Event by the Purchaser or
the occurrence of an automatic Termination Event, the Purchaser will no longer be permitted to
purchase additional Mortgage Loans and principal collections on Mortgage Loans, proceeds of sales
of Mortgage Loans (in each case, excluding any Excluded Amounts with respect to any HELOCs) and
amounts received from each Swap Counterparty will be retained under the Security Agreement and used
to pay the outstanding obligations of the Purchaser pursuant to the terms thereof. If a
Termination Event described in (d), (h), or (k) through (r) above
occurs, or a Termination Event described in (e)(ii) occurs and any Swap Counterparty reasonably
believes, in its sole discretion, that there will be a material impairment in the value of the
Mortgage Loans and gives written notice to the Purchaser and the Servicer to such effect, or a
Security Agreement Event of Default described in clauses (f), (m), or (o)
through (s) of Section 7.01 of the Security Agreement occurs, or an Indenture Event
of Default described in clauses (f), (m), or (o) through (s) of
Section 9.1 of the Indenture occurs, the Servicer shall use its best efforts to sell all
non-Delinquent Loans and non-Defaulted Loans within sixty (60) days of the date on which such
Termination Event, Security Agreement Event of Default or Indenture Event of Default occurred. In
the event that all non-Delinquent Loans and non-Defaulted Loans have not been so sold by such
sixtieth (60th) day, the Collateral Agent shall hold an auction (a “Termination Event
Auction”) of the remaining non-Delinquent Loans and non-Defaulted Loans for settlement not
later than the seventy-fifth (75th) day following the date on which such Termination Event,
Security Agreement Event of Default, or Indenture Event of Default occurred. The Collateral Agent
shall notify potential bidders of the Termination Event Auction, including one bidder obligated to
make a bid on non-Delinquent Loans and non-Defaulted Loans in any such auction; provided, however,
that such bidder shall have a “P-1” rating from Moody’s (the “Rated Bidder”). During the
Termination Event Auction, the Collateral Agent shall promptly notify each Swap Counterparty of the
highest bid price obtained in the Termination Event Auction for each such Mortgage Loan and each
Swap Counterparty shall have up to two (2) Business Days from the time of notification (but in no
event beyond the seventy-fifth 75th day referred to above) to elect to purchase such
non-Delinquent Loans and non-Defaulted Loans at a price equal to 101% of such highest bid price
(the “Purchase Price”). If any Swap Counterparty elects to purchase such non-Delinquent
Loans and non-Defaulted Loans within such two (2) Business Day time period, such Swap Counterparty
shall pay the Purchase Price for such non-Delinquent Loans and non-Defaulted Loans within two (2)
Business Days of the date of such election (but in no event beyond the seventy-fifth
75th day referred to above). If (x) no Swap Counterparty affirmatively elects to
purchase such non-Delinquent Loans and non-Defaulted Loans within such two (2) Business Day time
period, or (y) any Swap Counterparty is permitted under the preceding sentence to purchase such
non-Delinquent Loan or non-Defaulted Loan but fails to pay the Purchase Price for such
non-Delinquent Loan or non-Defaulted Loan within two (2) Business Days of the date of such election
(but in no event beyond the seventy-fifth 75th day referred to above), the Collateral
Agent shall have the right to sell such non-Delinquent Loans and non-Defaulted Loans to the highest
bidder.

Section 11.3 Termination of Servicing With Respect to Any Mortgage Loan.

The servicing of any Mortgage Loan in accordance with the terms of this Purchase Agreement
shall terminate upon the occurrence of the following: (i) the receipt into the Collateral Account
of the proceeds of sale of such Mortgage Loan or the Repurchase Price of such Mortgage Loan or the
receipt into the Collateral Account of the Principal Prepayment in full of such Mortgage Loan or
(ii) the effectiveness of the termination of the Servicer pursuant to Section 12.1 hereof.
No termination of the Servicer pursuant to Section 12.1 hereof shall become effective until
a successor shall have assumed the Servicer’s responsibilities and obligations hereunder in the
manner provided in Section 12.1.

Upon written request from the Purchaser, the Servicer shall deliver all Servicing Files and
other documents relating to the Mortgage Loans held by it hereunder to the successor servicer,
prepare, execute and deliver to the successor servicer designated by the Purchaser any and all
documents and other instruments, and do or cause to be done all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, including but not limited to the
transfer and endorsement or assignment of the Mortgage Loans and related documents, at the
Servicer’s sole expense. The Servicer shall cooperate with such successor in effecting the
termination of the Servicer’s responsibilities and rights hereunder, including without limitation,
the transfer to such successor for administration by it of all cash amounts which shall at the time
be credited by the Servicer to any Collection Account or thereafter received with respect to the
Mortgage Loans.

ARTICLE 12

MISCELLANEOUS PROVISIONS

Section 12.1 Successor to Servicer.

Prior to termination of the Servicer’s responsibilities and duties under this Purchase
Agreement pursuant to Section 9.4 or 10.1 hereof, the Purchaser shall appoint a
successor servicer which shall succeed to all rights and assume all of the responsibilities, duties
and liabilities of the Servicer under this Purchase Agreement prior to termination of the
Servicer’s responsibilities and duties under this Purchase Agreement. In the event that the
Servicer’s duties, responsibilities and liabilities under this Purchase Agreement should be
terminated pursuant to Section 9.4, 9.5(b) or (c) or 10.1 hereof,
the Servicer shall discharge such duties, responsibilities and liabilities during the period from
the date it acquires knowledge of such termination until the effective date thereof with the degree
of diligence and prudence which it is obligated to exercise under this Purchase Agreement and shall
take no action whatsoever that might impair or prejudice the rights or financial condition of its
successor. The resignation or removal of, or assignment by, the Servicer pursuant to Section
9.4, 9.5(b) or (c) or 10.1 hereof shall not become effective until (i)
in the case of a resignation or removal pursuant to Section 9.4 or 10.1 hereof, the
successor servicer appointed by the Purchaser pursuant to this Section 12.1 shall have
accepted its appointment as provided in the next paragraph of this Section 12.1, (ii) in
the case of an assignment by the Servicer pursuant to Section 9.5(b) or (c) hereof,
the assignee accepts its appointment as Servicer as provided in the next paragraph of this
Section 12.1, and (iii) in all cases, notice thereof shall have been given to the Rating
Agencies and each Swap Counterparty and the Purchaser shall have received Rating Agency
Confirmation, and such resignation, removal or assignment shall in no event relieve the Servicer of
the representations and warranties made pursuant to Section 3.1 hereof and the remedies
available to the Purchaser under Sections 6.2 or 7.1 hereof, it being understood
and agreed that the provisions of such Sections 3.1, 6.2 and 7.1 shall be
applicable to the Servicer notwithstanding any such resignation or removal of, or assignment by,
the Servicer, or the termination of this Purchase Agreement.

Any successor to the Servicer permitted hereunder shall execute, acknowledge and deliver to
the Servicer and the Purchaser an instrument accepting its appointment as Servicer, wherein the
successor shall make the representations and warranties set forth in Section 3.1 hereof,
whereupon such successor shall become fully vested with all the rights, powers, duties,
responsibilities, obligations and liabilities of the Servicer, with like effect as if originally
named as a party to this Purchase Agreement. Any termination or resignation of the Servicer or
termination of this Purchase Agreement pursuant to Section 9.4, 9.5(b) or
(c), 10.1 or 11.1 hereof shall not affect any claims that the Purchaser may
have against the Servicer arising out of the Servicer’s actions or failure to act prior to any such
termination or resignation.

The Servicer shall deliver promptly to the successor servicer the funds in any Collection
Account or Proceeds Account, and all Servicing Files and related documents and statements held by
it hereunder and the Servicer shall account for all funds and shall execute and deliver such
instruments and do such other things as may reasonably be required to more fully and definitively
vest in the successor all such rights, powers, duties, responsibilities, obligations and
liabilities of the Servicer.

Section 12.2 Amendment.

This Purchase Agreement may only be amended with the written consent of the Issuer, the
Seller, the Required Noteholders, each of the Swap Counterparties (such consent not to be
unreasonably withheld) and the Servicer, and upon written notice of such amendment to each Rating
Agency; provided, however, that the Issuer may amend this Purchase Agreement without the consent of
the Required Noteholders for one or more of the following purposes: (A) to add to the covenants and
agreements pursuant to this Purchase Agreement for the benefit of the holders of the Notes; (B) to
cure any ambiguity or to correct or supplement any defective or inconsistent provision contained in
this Purchase Agreement or in any amendment to this Purchase Agreement; (C) to add such provisions
with respect to matters or questions arising under this Purchase Agreement as may be necessary or
desirable and not inconsistent with this Purchase Agreement, or (D) to provide for additional forms
of collateral to secure the Notes provided, however, that Rating Agency Confirmation is given with
respect to such amendment. Any material amendment shall be subject to Rating Agency Confirmation.
The Collateral Agent shall not be obligated to sign any such agreements, instruments, consents and
other documents if the rights, duties, liabilities or immunities of the Collateral Agent shall be
materially adversely affected thereby. The costs and expenses associated with any such amendment
shall be borne by the party requesting the amendment.

Section 12.3 Governing Law.

THIS PURCHASE 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.

Section 12.4 Duration of Agreement.

This Purchase Agreement shall continue in existence and effect until terminated as provided in
Section 11.1 hereof.

Section 12.5 Notices.

Except where telephonic instructions or notices are authorized herein to be given, all
notices, demands, instructions and other communications required or permitted to be given to or
made upon any party hereto shall be in writing (including by electronic or facsimile transmission)
and shall be sent by prepaid first class mail, personally delivered or sent by guaranteed overnight
delivery or by electronic or facsimile transmission (to be followed by prepaid first class mail,
personal or guaranteed overnight delivery) and shall be deemed to be given for purposes of this
Purchase Agreement on the date that such writing is received by the intended recipient thereof in
accordance with the provisions of this Section 12.5. Unless otherwise specified in a
notice sent or delivered in accordance with the foregoing provisions of this Section 12.5,
notices, demands, instructions and other communications in writing shall be given to or made upon
the parties at their respective addresses (or to their respective facsimile numbers) indicated
below, and, in the case of telephonic instructions or notices, by calling the telephone number or
numbers indicated for such party below:

(i) if to the Company:

	 	 	 
	New Century Mortgage Corporation

	 
	 	 
	18400 Von Karman, Suite 1000

	 
	 	 
	Irvine, CA 92616

Attn:

	 	

Kevin Cloyd (business contact)

	 	 	 
	
 
	 	General Counsel (legal contact)

Phone: (949) 862-7941

Fax: (949) 224-5750
	 
	 	 
	or such other address in each case as may hereafter be furnished to the Purchaser in writing;

	 
	 	 
	(ii)

	 	if to the Purchaser:
	
 
	 	Von Karman Funding Trust

c/o New Century Mortgage Corporation, as Administrator

18400 Von Karman, Suite 1000

Irvine, CA 92616
	 
	 	 
	(iii)

	 	Attn:Kevin Cloyd (business contact)

General Counsel (legal contact)

Phone:(949) 862-7941

Fax:(949) 224-5750

if to the Swap Counterparties:
	Section 12.6

	 	As provided for in the related Interest Rate Swap.

Severability of Provisions.
	
 
	 	 

If any one or more of the covenants, agreements, provisions or terms of this Purchase
Agreement shall be held invalid for any reason whatsoever, then such covenants, agreements,
provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions
or terms of this Purchase Agreement and shall in no way affect the validity or enforceability of
the other provisions of this Purchase Agreement.

Section 12.7 Relationship of Parties.

Nothing herein contained shall be deemed or construed to create a partnership or joint venture
between the parties hereto and the services of the Servicer shall be rendered as an independent
contractor and not as agent for the Purchaser.

Section 12.8 Execution; Successors and Assigns.

This Purchase Agreement may be executed in one (1) or more counterparts and by the different
parties hereto on separate counterparts, each of which, when so executed, shall be deemed to be an
original; such counterparts, together, shall constitute one (1) agreement. This Purchase Agreement
shall inure to the benefit of and be binding upon the Seller, the Servicer and the Purchaser and
their respective successors and permitted assigns; provided, however, that, except for the
assignment set forth in Article V of the Security Agreement, the rights of the Purchaser to
indemnity from the Seller and the Servicer pursuant to Sections 3.3 and 7.1 hereof
are not assignable and shall inure only to the benefit of the Purchaser and to no other Person.

Section 12.9 Recordation of Assignments of Mortgage.

To the extent permitted by applicable law, each of the Assignments of Mortgage is subject to
recordation in all appropriate public offices for real property records in all the counties or
other comparable jurisdictions in which any or all of the Mortgaged Properties are situated, and in
any other appropriate public recording office or elsewhere, such recordation to be effected at the
Purchaser’s expense if requested by the Purchaser after the occurrence and during the continuation
of a Termination Event or at such other time as the Purchaser deems necessary or prudent in its
reasonable business judgment in order to preserve or protect the interests of the Purchaser in any
Mortgage Loan.

Section 12.10 Assignment by Purchaser.

The Purchaser shall have the right to assign its interest under this Purchase Agreement to the
Collateral Agent for the benefit of the Secured Parties pursuant to the Security Agreement.

Section 12.11 Non-Petition Agreement.

Notwithstanding any prior termination of this Purchase Agreement, the Company covenants and
agrees that it shall not, prior to the date which is one year and one day (or if longer, the
applicable preference period then in effect) after the payment in full of the Notes or rated
obligations of the Purchaser, acquiesce, petition or otherwise, directly or indirectly, invoke or
cause the Purchaser to invoke the process of any governmental authority for the purpose of
commencing or sustaining a case against the Purchaser 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 Purchaser or any substantial part of its property or
ordering the winding up or liquidation of the affairs of the Purchaser. This Section 12.11
will survive the termination of this Purchase Agreement.

Section 12.12 Waiver of Offset.

The Servicer agrees to deliver to the Purchaser all amounts required by this Purchase
Agreement to be delivered by the Servicer to the Purchaser free and clear of any offset,
counterclaim or other deduction on account of, or in respect of, any obligation of the Purchaser to
the Servicer hereunder.

Section 12.13 Limited Recourse.

The Servicer agrees that the obligations of the Purchaser to the Servicer under this Purchase
Agreement are limited recourse obligations of the Purchaser payable solely from the assets of the
Purchaser available for such purposes under the Security Agreement and that, upon application of
all assets of the Purchaser available under the Security Agreement for such purposes, the Servicer
shall have no recourse to the Purchaser for any obligations of the Purchaser to the Servicer to the
extent such application does not provide for full satisfaction and payment of such obligation. In
any event, no such obligation of the Purchaser to the Seller under this Purchase Agreement shall be
a claim under Section 101 of the Bankruptcy Code. This Section 12.13 will survive the
termination of this Purchase Agreement.

Section 12.14 Third Party Beneficiary.

The parties hereto agree that each Swap Counterparty shall be an express third party
beneficiary of this Purchase Agreement, and entitled to enforce any rights granted to it hereunder
as if it were a party hereto.

Section 12.15 Status of Side Letter.

The parties hereto agree that the applicable provisions of the Side Letter shall form a part
of, and be included in, this Purchase Agreement for all purposes, as though set forth herein.

Section 12.16 No Recourse .

It is expressly understood and agreed by the parties hereto that (a) this Purchase Agreement
is executed and delivered by Christiana Bank & Trust Company, not individually or personally but
solely as Owner Trustee of the Purchaser, in the exercise of the powers and authority conferred and
vested in it as trustee, (b) each of the representations, undertakings and agreements herein made
on the part of the Purchaser is made and intended not as a personal representation, undertaking and
agreement by Christiana Bank & Trust Company but is made and intended for the purpose of binding
only the Purchaser, (c) nothing herein contained shall be construed as creating any liability on
Christiana Bank & Trust Company, individually or personally, to perform any covenant either
expressed or implied contained herein, all such liability, if any, being expressly waived by the
parties hereto and by any Person claiming by, through or under the parties hereto and (d) under no
circumstances shall Christiana Bank & Trust Company be personally liable for the payment of any
indebtedness or expenses of the Purchaser or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Purchaser under this Purchase
Agreement or any other related documents.

ARTICLE 13

LIMITED PERFORMANCE GUARANTEE

Section 13.1 Guarantee of Seller’s Repurchase Obligations. For value received, and in
consideration of the financial accommodation accorded to the Seller by the Purchaser under this
Purchase Agreement, the Performance Guarantor hereby fully, unconditionally, and irrevocably
guarantees to the Purchaser, the Collateral Agent on behalf of the Secured Parties, and the
Servicer, the due and punctual payment of all amounts payable by the Seller under Section
3.3 (including by operation of Section 3.5(c)) of this Purchase Agreement when and as
such obligations hereunder shall become due and payable (for purposes of this Section 13.1,
the “Guaranteed Obligations”).

In case of the inability of the Seller to perform punctually any of the Guaranteed
Obligations, the Performance Guarantor hereby agrees, upon written demand from either the Issuer or
any Swap Counterparty, to pay or cause to be paid any such amount, punctually when and as the same
shall become due and payable.

(a) The Performance Guarantor hereby agrees that its obligations under this Section
13.1 constitute a guarantee of payment when due.

(b) The Performance Guarantor hereby agrees that its obligations under this Section
13.1 shall be unconditional, irrespective of the validity, regularity or enforceability of this
Purchase Agreement against the Seller, the absence of any action to enforce the Seller’s
obligations under this Purchase Agreement, any waiver or consent by the Purchaser, the Collateral
Agent or any Secured Party, or the Servicer with respect to any provisions hereof, the entry by the
Seller and the Purchaser into additional transactions under this Purchase Agreement or any other
circumstance which might otherwise constitute a legal or equitable discharge or defense of a
guarantor (other than the defenses of statute of limitations or payment, which are not waived);
provided, that the Performance Guarantor shall be entitled to exercise any right that the Seller
could have exercised under this Purchase Agreement to cure any default in respect of its
obligations under this Purchase Agreement or to set-off, counterclaim or withhold payment in
respect of any event of default or potential event of default in respect of the Purchaser or any
Affiliate, and to the benefit of any grace period or provision, but only to the extent such right
is provided to the Seller under this Purchase Agreement. The Performance Guarantor acknowledges
that the Seller and the Purchaser may from time to time enter into one (1) or more transactions
pursuant to this Purchase Agreement and agrees that the obligations of the Performance Guarantor
under this Section 13.1 will upon the execution of any such transaction by the Seller and
the Purchaser extend to all such transactions without the taking of further action by the
Performance Guarantor.

(c) The Performance Guarantor hereby waives (i) promptness, diligence, presentment, demand of
payment, protest, order and, except as set forth in paragraph (a) above, notice of any kind in
connection with this Purchase Agreement and this Section 13.1 and (ii) any requirement that
the Purchaser, the Collateral Agent or any Secured Party, or the Servicer exhaust any right to take
any action against the Seller or any other person prior to or contemporaneously with proceeding to
exercise any right against the Performance Guarantor under this Section 13.1.

Notwithstanding anything to the contrary in any Program Document, the Performance Guarantor
will not ensure the payment of any Note.

ARTICLE 14

ASSIGNMENT

Section 14.1 Assignment. Notwithstanding anything to the contrary contained in this
Purchase Agreement, the Purchaser hereby assigns, conveys, transfers, delivers and sets over unto
the Collateral Agent for the benefit of the Secured Parties, all of its right, title and interest
in, to and under, whether now owned or existing, or hereafter acquired, this Purchase Agreement.
The Purchaser acknowledges the security interest in the Mortgage Loans of the Collateral Agent as
representative secured party for the Purchaser, the Secured Parties, and any other Persons to whom
Purchaser owes the obligations secured by such Mortgage Loans.

The Purchaser, the Servicer and the Seller shall each treat the Collateral Agent as the
Purchaser under this Purchase Agreement and each consent to such assignment and acknowledge that
the Collateral Agent shall enjoy the Purchaser’s rights under this Purchase Agreement pursuant to
the provisions of this Section 14.1. Without limiting the generality of the foregoing, the
Purchaser, the Servicer and the Seller shall each report to and correspond and communicate with the
Collateral Agent and in all other regards treat the Collateral Agent as the Purchaser hereunder
with respect to the Mortgage Loans. The Collateral Agent shall have all rights of the Purchaser to
enforce the covenants and conditions set forth in this Purchase Agreement with respect to the
Mortgage Loans, and the Purchaser, the Servicer and the Seller, respectively, shall each follow the
instructions of the Collateral Agent under this Purchase Agreement. The Collateral Agent shall
have the right to give any waivers or consents required or allowed under this Purchase Agreement,
and such waivers and consents shall be binding upon the Purchaser and any party for whom the
Collateral Agent acts as representative secured party as if the Purchaser or such party had given
the same. All amounts due the Purchaser under this Purchase Agreement shall be remitted to the
Collateral Agent in accordance with the Collateral Agent’s instructions and in accordance with this
Purchase Agreement.

ARTICLE 15

COMMITMENT FEE

Section 15.1 Commitment Fee. In connection with the execution of this Purchase
Agreement, and the commitment of the Purchaser to purchase Mortgage Loans in an amount equal to the
then-current Program Utilization Amount, the Seller agrees to pay, prior to the initial issuance of
any Notes, to the Purchaser a Commitment Fee. The Commitment Fee may be increased in connection
with an increase in the Program Utilization Amount from time to time. In connection with any
amendment, modification or supplement to this Purchase Agreement or any Program Document, the
Purchaser may condition such amendment, modification or supplement upon the payment of any
additional Commitment Fee in an amount to be agreed upon at the time of such amendment,
modification or supplement.

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

NEW CENTURY MORTGAGE CORPORATION,

as Seller and as Servicer

By: /s/ Kevin Cloyd

Name: Kevin Cloyd

Title: Executive Vice President

VON KARMAN FUNDING TRUST,

as Purchaser

By: CHRISTIANA BANK & TRUST COMPANY,

not in its individual capacity, but solely as Owner Trustee

By: /s/ James M. Young

Name: James M. Young

Title: Assistant Vice President

NEW CENTURY FINANCIAL CORPORATION,

as Performance Guarantor

By: /s/ Kevin Cloyd

Name: Kevin Cloyd

Title: Executive Vice President

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