Document:

AMERIQUEST MORTGAGE SECURITIES INC.,

                                    Depositor

                          AMERIQUEST MORTGAGE COMPANY,

                           Seller and Master Servicer

                     FEDERAL HOME LOAN MORTGAGE CORPORATION,

         Guarantor of the Class A Certificates and Class S Certificates

                                       and

                      DEUTSCHE BANK NATIONAL TRUST COMPANY
                                     Trustee

                         POOLING AND SERVICING AGREEMENT

                          Dated as of December 1, 2002

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

               Ameriquest Mortgage Securities Inc., Series 2002-D

                            Asset-Backed Certificates

<PAGE>

<TABLE>
<CAPTION>
                                                 TABLE OF CONTENTS

                                                     ARTICLE I

                                                    DEFINITIONS
<S>                                                                                                              <C>
SECTION 1.01.     Defined Terms...................................................................................1
SECTION 1.02.     Accounting.....................................................................................38
SECTION 1.03.     Allocation of Certain Shortfalls...............................................................38
SECTION 1.04.     Rights of the NIMS Insurer.....................................................................39

                                                    ARTICLE II

                                           CONVEYANCE OF MORTGAGE LOANS;
                                         ORIGINAL ISSUANCE OF CERTIFICATES

SECTION 2.01.     Conveyance of Mortgage Loans...................................................................40
SECTION 2.02.     Acceptance of REMIC 1 by the Trustee...........................................................42
SECTION 2.03.     Repurchase or Substitution of Mortgage Loans by the Seller; Payment of Master Servicer
                  Prepayment Charge Payment Amounts..............................................................43
SECTION 2.04.     Representations, Warranties and Covenants of the Seller........................................46
SECTION 2.05.     Representations, Warranties and Covenants of the Master Servicer...............................47
SECTION 2.06.     Representations and Warranties of the Depositor................................................50
SECTION 2.07.     Conveyance of Uncertificated REMIC Regular Interests and Acceptance of REMIC 1, REMIC 2,
                  REMIC 3 and REMIC 4 by the Trustee; Issuance of Certificates...................................51
SECTION 2.08.     Conveyance of Subsequent Mortgage Loans........................................................52

                                                    ARTICLE III

                                   ADMINISTRATION AND SERVICING OF THE TRUST FUND

SECTION 3.01.     Master Servicer to Act as Master Servicer......................................................56
SECTION 3.02.     Collection of Mortgage Loan Payments...........................................................57
SECTION 3.03.     Notification of Adjustments....................................................................58
SECTION 3.04.     Collection Account, Escrow Account and Distribution Account....................................58
SECTION 3.05.     Permitted Withdrawals From the Collection Account, Escrow Account and Distribution
                  Account........................................................................................61
SECTION 3.06.     Investment of Funds in the Collection Account, the Escrow Account, the REO Account and the
                  Distribution Account...........................................................................63
SECTION 3.07.     Payment of Taxes, Insurance and Other Charges..................................................64
SECTION 3.08.     Maintenance of Hazard Insurance................................................................64
SECTION 3.09.     Maintenance of Mortgage Blanket Insurance Policy...............................................65
SECTION 3.10.     Fidelity Bond, Errors and Omissions Insurance..................................................65
SECTION 3.11.     Due-on-Sale Clauses; Assumption and Substitution Agreements....................................66
SECTION 3.12.     Realization Upon Defaulted Mortgage Loans......................................................66
SECTION 3.13.     Title, Management and Disposition of REO Property..............................................68
SECTION 3.14.     REO Property Inspections.......................................................................70
SECTION 3.15.     Reports of Foreclosure and Abandonment of Mortgaged Properties.................................70
SECTION 3.16.     Optional Purchase of Defaulted Mortgage Loans by the NIMS Insurer or the Master Servicer.......71
SECTION 3.17.     Trustee to Cooperate; Release of Files.........................................................71

                                                        -i-

<PAGE>

SECTION 3.18.     Servicing Compensation.........................................................................72
SECTION 3.19.     Annual Statement as to Compliance..............................................................73
SECTION 3.20.     Annual Independent Certified Public Accountants' Reports.......................................73
SECTION 3.21.     Access to Certain Documentation and Information Regarding the Mortgage Loans...................73
SECTION 3.22.     Solicitations..................................................................................74
SECTION 3.23.     Advance Facility...............................................................................75
SECTION 3.24.     PMI Policy; Claims Under the PMI Policy........................................................75

                                                     ARTICLE IV

                                                   FLOW OF FUNDS

SECTION 4.01.     Distributions..................................................................................77
SECTION 4.02.     The Guarantee..................................................................................79
SECTION 4.03.     Statements.....................................................................................79
SECTION 4.04.     Master Servicer Remittance Reports; Advances and Prepayment Interest Shortfalls................83
SECTION 4.05.     The Trustee Remittance Report..................................................................84
SECTION 4.06.     Loan Data Remittance Report....................................................................85
SECTION 4.07.     Compliance with Withholding....................................................................85
SECTION 4.08.     Distributions on the Uncertificated REMIC Regular Interests....................................85
SECTION 4.09.     Allocation of Principal Losses.................................................................88
SECTION 4.10.     Pre-Funding Account............................................................................89
SECTION 4.11.     Interest Coverage Accounts.....................................................................90
SECTION 4.12.     Net WAC Rate Carryover Reserve Account.........................................................91
SECTION 4.13.     Excess Net WAC Rate Reserve Account............................................................92
SECTION 4.14.     Commission Reporting...........................................................................93

                                                     ARTICLE V

                                                  THE CERTIFICATES

SECTION 5.01.     The Certificates...............................................................................95
SECTION 5.02.     Registration of Transfer and Exchange of Certificates..........................................96
SECTION 5.03.     Mutilated, Destroyed, Lost or Stolen Certificates..............................................99
SECTION 5.04.     Persons Deemed Owners..........................................................................99
SECTION 5.05.     Appointment of Paying Agent....................................................................99

                                                     ARTICLE VI

                                 THE SELLER, THE MASTER SERVICER AND THE DEPOSITOR

SECTION 6.01.     Liability of the Seller, the Master Servicer and the Depositor................................101
SECTION 6.02.     Merger or Consolidation of, or Assumption of the Obligations of, the Seller, the Master
                  Servicer or the Depositor.....................................................................101
SECTION 6.03.     Limitation on Liability of the Master Servicer and Others; Indemnification....................101
SECTION 6.04.     Master Servicer Not to Resign.................................................................102
SECTION 6.05.     Delegation of Duties..........................................................................102
SECTION 6.06.     Subservicing Agreements and Successor Subservicer.............................................102
SECTION 6.07.     Liability of the Master Servicer..............................................................103
SECTION 6.08.     Inspection....................................................................................103

                                                        -ii-

<PAGE>

                                                    ARTICLE VII

                                                      DEFAULT

SECTION 7.01.     Master Servicer Events of Termination.........................................................104
SECTION 7.02.     Trustee to Act; Appointment of Successor......................................................106
SECTION 7.03.     Waiver of Defaults............................................................................107
SECTION 7.04.     Notification to Certificateholders............................................................107
SECTION 7.05.     Survivability of Master Servicer Liabilities..................................................107
SECTION 7.06.     Rights of the Guarantor to Exercise Rights of Class A Certificateholders......................107
SECTION 7.07.     Trustee to Act Solely with Consent of the Guarantor...........................................108
SECTION 7.08.     Mortgage Loans, Trust Fund and Accounts Held for Benefit of the Guarantor.....................108

                                                    ARTICLE VIII

                                                    THE TRUSTEE

SECTION 8.01.     Duties of Trustee.............................................................................109
SECTION 8.02.     Certain Matters Affecting the Trustee.........................................................110
SECTION 8.03.     Trustee Not Liable for Certificates or Mortgage Loans.........................................111
SECTION 8.04.     Trustee May Own Certificates..................................................................112
SECTION 8.05.     Trustee Fees and Expenses.....................................................................112
SECTION 8.06.     Eligibility Requirements for Trustee..........................................................112
SECTION 8.07.     Resignation or Removal of Trustee.............................................................112
SECTION 8.08.     Successor Trustee.............................................................................113
SECTION 8.09.     Merger or Consolidation of Trustee............................................................114
SECTION 8.10.     Appointment of Co-Trustee or Separate Trustee.................................................114
SECTION 8.11.     Limitation of Liability.......................................................................115
SECTION 8.12.     Trustee May Enforce Claims Without Possession of Certificates.................................115
SECTION 8.13.     Suits for Enforcement.........................................................................115
SECTION 8.14.     Waiver of Bond Requirement....................................................................116
SECTION 8.15.     Waiver of Inventory, Accounting and Appraisal Requirement.....................................116

                                                     ARTICLE IX

                                                REMIC ADMINISTRATION

SECTION 9.01.     REMIC Administration..........................................................................117
SECTION 9.02.     Prohibited Transactions and Activities........................................................118
SECTION 9.03.     Indemnification with Respect to Certain Taxes and Loss of REMIC Status........................119

                                                     ARTICLE X

                                                    TERMINATION

SECTION 10.01.             Termination..........................................................................120
SECTION 10.02.             Additional Termination Requirements..................................................121

                                                     ARTICLE XI

                                              MISCELLANEOUS PROVISIONS

                                                       -iii-

<PAGE>

SECTION 11.01.             Amendment............................................................................123
SECTION 11.02.             Recordation of Agreement; Counterparts...............................................124
SECTION 11.03.             Limitation on Rights of Certificateholders...........................................124
SECTION 11.04.             Governing Law; Jurisdiction..........................................................124
SECTION 11.05.             Notices..............................................................................125
SECTION 11.06.             Severability of Provisions...........................................................125
SECTION 11.07.             Article and Section References.......................................................125
SECTION 11.08.             Reserved.............................................................................125
SECTION 11.09.             Further Assurances...................................................................125
SECTION 11.10.             Benefits of Agreement................................................................125
SECTION 11.11.             Acts of Certificateholders...........................................................126
SECTION 11.12.             Third Party Rights...................................................................126
</TABLE>

                                                       -iv-

<PAGE>

<TABLE>
<CAPTION>
EXHIBITS:
--------
<S>               <C>
Exhibit A-1       Form of Class AF Certificates
Exhibit A-2       Form of Class AV Certificates
Exhibit A-3       Form of Class S Certificates
Exhibit A-4       Form of Class M-1 Certificates
Exhibit A-5       Form of Class M-2 Certificates
Exhibit A-6       Form of Class CE Certificates
Exhibit A-7       Form of Class P Certificates
Exhibit A-8       Form of Class R Certificates
Exhibit B         [Reserved]
Exhibit C         Request for Release
Exhibit D-1       Form of Trustee's Initial Certification
Exhibit D-2       Form of Trustee's Final Certification
Exhibit D-3       Form of Receipt of Mortgage Note
Exhibit E         Form of Mortgage Loan Purchase Agreement
Exhibit F         Form of Lost Note Affidavit
Exhibit G         Loss Mitigation Action Plan
Exhibit H         Form of Investment Letter
Exhibit I         Form of Class R Certificate Transfer Affidavit
Exhibit J         Form of Transferor Certificate
Exhibit K         Form of Liquidation Report
Exhibit L         Ameriquest Mortgage Company Underwriting Guidelines
Exhibit M         Form of Loan Data Remittance Report
Exhibit N         Form of Trustee's Remittance Report
Exhibit O         Form of Addition Notice
Exhibit P         Form of Subsequent Transfer Instrument
Exhibit Q         Form of ERISA Representation Letter
Exhibit R-1       Form of Certification to Be Provided by the Depositor with Form 10-K
Exhibit R-2       Form of Certification to Be Provided to Depositor by the Trustee
Exhibit S         Form of Notice for Location of Accounts

SCHEDULE 1        Mortgage Loan Schedule
SCHEDULE 2        Prepayment Charge Schedule
SCHEDULE 3        PMI Mortgage Loans
</TABLE>

<PAGE>

                  This Pooling and Servicing Agreement is dated as of December
1, 2002 (the "Agreement"), among AMERIQUEST MORTGAGE SECURITIES INC., as
depositor (the "Depositor"), AMERIQUEST MORTGAGE COMPANY, as seller (in such
capacity, the "Seller") and Master Servicer (in such capacity, the "Master
Servicer"), FEDERAL HOME LOAN MORTGAGE CORPORATION, as guarantor of the Class A
Certificates and the Class S Certificates (the "Guarantor"), and DEUTSCHE BANK
NATIONAL TRUST COMPANY, as trustee (the "Trustee").

                             PRELIMINARY STATEMENT:

                  The Depositor intends to sell pass-through certificates
(collectively, the "Certificates"), to be issued hereunder in multiple classes,
which in the aggregate will evidence the entire beneficial ownership interest in
the Trust Fund created hereunder. The Certificates will consist of thirteen
classes of certificates, designated as (i) the Class AF Certificates, (ii) the
Class AV Certificates, (iii) the Class S Certificates, (iv) the Class M-1
Certificates, (v) the Class M-2 Certificates, (vi) the Class CE Certificates,
(vii) the Class P Certificates and (viii) the Class R Certificates.

                                     REMIC 1
                                     -------

                  As provided herein, the Trustee will make an election to treat
the segregated pool of assets consisting of the Group I Mortgage Loans, the
Group II Mortgage Loans, the PMI Policy and certain other related assets subject
to this Agreement (but exclusive of the Pre-Funding Accounts, the Interest
Coverage Accounts, the Net WAC Rate Carryover Reserve Account, the Master
Servicer Prepayment Charge Payment Amounts, the Excess Net WAC Rate Reserve
Account and any Subsequent Mortgage Loan Interest) as a real estate investment
conduit (a "REMIC") for federal income tax purposes, and such segregated pool of
assets will be designated as "REMIC 1." The Class R-1 Interest will represent
the sole class of "residual interests" in REMIC 1 for purposes of the REMIC
Provisions under federal income tax law. The following table irrevocably sets
forth the designation, the Uncertificated REMIC 1 Pass- Through Rate, the
initial Uncertificated Principal Balance, and solely for purposes of satisfying
Treasury regulation Section 1.860G-1(a)(4)(iii), the "latest possible maturity
date" for each of the REMIC 1 Regular Interests. None of the REMIC 1 Regular
Interests will be certificated.

<TABLE>
<CAPTION>
                               Uncertificated
                                  REMIC 1               Initial Uncertificated                Assumed Final
      Designation            Pass-Through Rate             Principal Balance                Maturity Date(1)
      -----------            -----------------             -----------------                ----------------
<S>                          <C>                        <C>                                 <C>
         LT1-A                  Variable(2)                 $307,114,403.33                 February 25, 2033
         LT1-B                  Variable(2)                 $ 95,583,284.76                 February 25, 2033
         LT1-C                  Variable(2)                 $714,826,631.27                 February 25, 2033
         LT1-D                  Variable(2)                 $222,475,580.64                 February 25, 2033
         LT1-P                  Variable(2)                 $        100.00                 February 25, 2033
</TABLE>
___________________
(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date following the maturity date for the
     Mortgage Loan with the latest possible maturity date has been designated as
     the "latest possible maturity date" for each Uncertificated REMIC 1 Regular
     Interest.
(2)  Calculated in accordance with the definition of "Uncertificated REMIC 1
     Pass-Through Rate" herein.

                                      -vi-

<PAGE>

                                     REMIC 2
                                     -------

                           As provided herein, the Trustee shall make an
election to treat the segregated pool of assets consisting of the REMIC 1
Regular Interests as a REMIC for federal income tax purposes, and such
segregated pool of assets will be designated as "REMIC 2." The Class R-2
Interest represents the sole class of "residual interests" in REMIC 2 for
purposes of the REMIC Provisions. The following table irrevocably sets forth the
designation, the Uncertificated REMIC 2 Pass-Through Rate, the initial
Uncertificated Principal Balance, and solely for purposes of satisfying Treasury
regulation Section 1.860G-1(a)(4)(iii), the "latest possible maturity date" for
each of the REMIC 2 Regular Interests. None of the REMIC 2 Regular Interests
will be certificated.

<TABLE>
<CAPTION>
                               Uncertificated
                                  REMIC 1               Initial Uncertificated                Assumed Final
      Designation            Pass-Through Rate             Principal Balance                Maturity Date(1)
      -----------            -----------------             -----------------                ----------------
<S>                          <C>                        <C>                                 <C>
         LT2-A                  Variable(2)                $1,269,649,900.00                February 25, 2033
         LT2-B                  Variable(2)                $   70,350,000.00                February 25, 2033
         LT2-P                  Variable(2)                $          100.00                February 25, 2033
</TABLE>

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

                                      -vii-

<PAGE>

                                     REMIC 3
                                     -------

                  As provided herein, the Trustee shall make an election to
treat the segregated pool of assets consisting of the REMIC 2 Regular Interests
as a REMIC for federal income tax purposes, and such segregated pool of assets
will be designated as "REMIC 3." The Class R-3 Interest represents the sole
class of "residual interests" in REMIC 3 for purposes of the REMIC Provisions.
The following table irrevocably sets forth the designation, the Uncertificated
REMIC 3 Pass-Through Rate, the initial Uncertificated Principal Balance, and
solely for purposes of satisfying Treasury regulation Section
1.860G-1(a)(4)(iii), the "latest possible maturity date" for each of the REMIC 2
Regular Interests. None of the REMIC 3 Regular Interests will be certificated.

<TABLE>
<CAPTION>
                               Uncertificated
                                  REMIC 3               Initial Uncertificated                Assumed Final
      Designation            Pass-Through Rate             Principal Balance                Maturity Date(1)
      -----------            -----------------             -----------------                ----------------
<S>                          <C>                        <C>                                 <C>
       LT3-AA                  Variable(2)                $1,313,199,902.00                 February 25, 2033
       LT3-AF1                 Variable(2)                $    3,930,000.00                 February 25, 2033
       LT3-AV1                 Variable(2)                $    9,168,500.00                 February 25, 2033
       LT3-M1                  Variable(2)                $      100,500.00                 February 25, 2033
       LT3-M2                  Variable(2)                $      100,500.00                 February 25, 2033
       LT3-ZZ                  Variable(2)                $   13,500,498.00                 February 25, 2033
        LT3-S                  Variable(2)                        N/A(3)                    February 25, 2033
        LT3-P                  Variable(2)                $          100.00                 February 25, 2033
</TABLE>

___________________
(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date following the maturity date for the
     Mortgage Loan with the latest possible maturity date has been designated as
     the "latest possible maturity date" for each REMIC 3 Regular Interest.
(2)  Calculated in accordance with the definition of "Uncertificated REMIC 3
     Pass-Through Rate" herein.
(3)  REMIC 3 Regular Interest LT3-S will not have an Uncertificated Principal
     Balance, but will accrue interest on its Uncertificated Notional Amount
     outstanding from time to time, which shall equal the Uncertificated
     Principal Balance of REMIC 2 Regular Interest LT2-B.

                                     -viii-

<PAGE>

                                     REMIC 4
                                     -------

                  As provided herein, the Trustee shall make an election to
treat the segregated pool of assets consisting of the Uncertificated REMIC 3
Regular Interests as a REMIC for federal income tax purposes, and such
segregated pool of assets will be designated as "REMIC 4." The Class R-4
Interest will represent the sole class of "residual interests" in REMIC 4 for
purposes of the REMIC Provisions. As provided herein, the Class A Certificates,
the Class S Certificates, the Mezzanine Certificates, the Class CE Certificates
and the Class P Certificates represent all of the "regular interests" in REMIC 4
for purposes of the REMIC Provisions. The following table irrevocably sets forth
the designation, the Pass-Through Rate, the Original Certificate Principal
Balance, and solely for purposes of satisfying Treasury regulation Section
1.860G-1(a)(4)(iii), the "latest possible maturity date" for each Class of
Certificates that represents one or more of the "regular interests" in REMIC 4.

<TABLE>
<CAPTION>
                                                          Original Certificate               Assumed Final
    Class Designation          Pass-Through Rate            Principal Balance               Maturity Date(1)
    -----------------          -----------------            -----------------               ----------------
<S>                            <C>                        <C>                              <C>
            AF                 4.55% per annum(2)            $393,000,000.00               February 25, 2033
            AV                    Variable(3)                $916,850,000.00               February 25, 2033
           M-1                    Variable(3)                $ 10,050,000.00               February 25, 2033
           M-2                    Variable(3)                $ 10,050,000.00               February 25, 2033
            S                        N/A(4)                      N/A(5)                    February 25, 2033
            CE                    Variable(6)                $ 10,049,900.00               February 25, 2033
            P                        N/A(7)                  $        100.00               February 25, 2033
</TABLE>

___________________
(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date following the maturity date for the
     Mortgage Loan with the latest possible maturity date has been designated as
     the "latest possible maturity date" for each Class of Certificates that
     represents one or more of the "regular interests" in REMIC 4.
(2)  Subject to increase and subject to the Pool Net WAC Rate.
(3)  Calculated in accordance with the definition of "Pass-Through Rate" herein.
(4)  The Class S Certificates will receive all amounts distributed to the REMIC
     3 Regular Interest LT3-S.
(5)  The Class S Certificates will not have a Certificate Principal Balance but
     will accrue interest on its Notional Amount outstanding from time to time.
(6)  The Class CE Certificates will accrue interest at their variable
     Pass-Through Rate on the Notional Amount of the Class CE Certificates
     outstanding from time to time which shall equal the Uncertificated
     Principal Balance of the REMIC 3 Regular Interests. The Class CE
     Certificates will not accrue interest on their Certificate Principal
     Balance. The Class CE Certificates will also be entitled to the Subsequent
     Mortgage Loan Interest, as a right with respect to a component of the Class
     CE Certificates that will not be treated as a REMIC regular interest but
     rather as separate interest strips from the Subsequent Mortgage Loans for a
     specified period of time.
(7)  The Class P Certificates will not accrue interest.

                                      -ix-

<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

                  SECTION 1.01.     Defined Terms.

                  Whenever used in this Agreement or in the Preliminary
Statement, the following words and phrases, unless the context otherwise
requires, shall have the meanings specified in this Article. Unless otherwise
specified, all calculations in respect of interest on the Class AV Certificates
and the Mezzanine Certificates shall be made on the basis of a 360-day year and
the actual number of days elapsed in the related Accrual Period and all other
calculations of interest described herein shall be made on the basis of a
360-day year consisting of twelve 30-day months.

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

                  "Account": Either of the Collection Account and Distribution
Account.

                  "Accrual Period": With respect to (i) the Class AV
Certificates and the Mezzanine Certificates and (A) the first Distribution Date,
the period commencing on the Closing Date and ending on the day immediately
preceding the first Distribution Date, or (B) any subsequent Distribution Date,
the period commencing on the immediately preceding Distribution Date and ending
on the day immediately preceding the current Distribution Date and (ii) each
Class of Certificates, other than the Class AV Certificates and the Mezzanine
Certificates, and each Uncertificated REMIC Regular Interest and each
Distribution Date, the calendar month prior to the month of such Distribution
Date.

                  "Addition Notice": With respect to the transfer of Subsequent
Mortgage Loans to the Trust Fund pursuant to Section 2.08, a notice of the
Depositor's designation of the Subsequent Mortgage Loans to be sold to the Trust
Fund and the aggregate principal balance of such Subsequent Mortgage Loans as of
the Subsequent Cut-off Date. The Addition Notice shall be given not later than
three Business Days prior to the related Subsequent Transfer Date and shall be
substantially in the form attached hereto as Exhibit O.

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

                  "Adjusted Net Maximum Mortgage Rate": With respect to any
Mortgage Loan (or the related REO Property and any Distribution Date, a per
annum rate of interest equal to the applicable Mortgage Rate for such Mortgage
Loan (with respect to any Group I Mortgage Loan) or the applicable Maximum
Mortgage Rate for such Mortgage Loan (with respect to any Group II Mortgage
Loan), in each case as of the first day of the month preceding the month in
which such Distribution Date occurs minus the sum of (i) the Trustee Fee Rate,
(ii) the Servicing Fee Rate and (iii) the PMI Insurer Fee Rate, if applicable.

                  "Adjustment Date": With respect to each Group II Mortgage
Loan, the first day of the month in which the Mortgage Rate of such
Adjustable-Rate Mortgage Loan changes pursuant to the related Mortgage Note. The
first Adjustment Date following the Cut-off Date as to each Group II Mortgage
Loan is set forth in the Mortgage Loan Schedule.

                  "Advance": As to any Mortgage Loan or REO Property, any
advance made by the Master Servicer in respect of any Distribution Date
representing the aggregate of all payments of principal and interest, net of the
Servicing Fee, that were due during the related Due Period on the Mortgage Loans
and that were delinquent on the related Determination Date, plus certain amounts
representing assumed payments not covered by any current net income on the
Mortgaged Properties acquired by foreclosure or deed in lieu of foreclosure as
determined pursuant to Section 4.04.

                                        1

<PAGE>

                  "Advance Facility":  As defined in Section 3.23.

                  "Advancing Person":  As defined in Section 3.23.

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

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

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

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

                  "Assignment": An assignment of Mortgage, notice of transfer or
equivalent instrument, in recordable form (excepting therefrom, if applicable,
the name of the assignee and/or the Mortgage recordation information which has
not yet returned from the applicable recorder's office), which is sufficient
under the laws of the jurisdiction wherein the related Mortgaged Property is
located to reflect or record the sale of the Mortgage.

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

                  "Available Funds": With respect to any Distribution Date, an
amount equal to the excess of (x) the sum of (a) the aggregate of the Monthly
Payments on the Mortgage Loans received on or prior to the Determination Date,
(b) Liquidation Proceeds, Insurance Proceeds, Principal Prepayments and other
unscheduled recoveries of principal and interest in respect of the Mortgage
Loans received during the related Prepayment Period, (c) the aggregate of any
amounts received in respect of an REO Property acquired in respect of a Mortgage
Loan withdrawn from any REO Account and deposited in the Collection Account for
such Distribution Date, (d) the aggregate of any amounts deposited in the
Collection Account by the Master Servicer in respect of Prepayment Interest
Shortfalls on the Mortgage Loans for such Distribution Date, (e) the aggregate
of any Advances made by the Master Servicer for such Distribution Date with
respect to the Mortgage Loans, (f) the aggregate of any Advances made by the
Trustee for such Distribution Date with respect to the Mortgage Loans pursuant
to Section 7.02, (g) with respect to the Distribution Date immediately following
the end of the Funding Period, any amounts (exclusive of investment income) in
the Pre-Funding Accounts after giving effect to any purchase of Subsequent
Mortgage Loans (h) with respect to each Distribution Date during the Funding
Period, any amounts withdrawn by the Trustee from the Interest Coverage Accounts
for distribution on the Class A Certificates and (i) any amounts received on or
after the Optional Termination Date representing the Termination Price over (y)
the sum of (a) Servicing Fees retained pursuant to Section 3.05(a)(ii) and the
first sentence of Section 3.18 relating to the Mortgage Loans, (b) amounts
reimbursable or payable to the Master Servicer pursuant to Section 3.05 relating
to the Mortgage Loans, (c) amounts relating to the Mortgage Loans deposited in
the Collection Account or the Distribution Account, as the case may be, in
error, (d) the sum of any indemnification payments made by the Trust Fund
pursuant to Section 6.03 and any indemnification payments or expense
reimbursements made by the Trust Fund pursuant to Sections 7.02(a) and 8.05, (e)
the Trustee Fees withdrawn by the Trustee from the Distribution Account pursuant
to Section 8.05 and (f) the PMI Insurer Fee payable from the Collection Account.
Available Funds shall not include the amount of any Prepayment Charges collected
by the Master Servicer or any Master Servicer Prepayment Charge Payment Amount
relating to a Prepayment Charge payable on any Mortgage Loan.

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

                                        2

<PAGE>

                  "Basic Principal Distribution Amount": With respect to any
Distribution Date, the excess of (i) the Principal Remittance Amount for such
Distribution Date over (ii) the Overcollateralization Release Amount, if any,
for such Distribution Date.

                  "Book-Entry Certificate": Any Certificate registered in the
name of the Depository or its nominee. Initially, the Book-Entry Certificates
will be the Mezzanine Certificates.

                  "Book-Entry Custodian": The custodian appointed pursuant to
Section 5.01.

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

                  "Cap Contracts": The interest rate cap contracts between the
Trustee and the counterparty thereunder, for the benefit of the Holders of the
Mezzanine Certificates.

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

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

                  "Certificate Margin": On each Distribution Date with respect
to the Class AV Certificates (A) on and prior to the Optional Termination Date,
0.20% per annum and (B) after the Optional Termination Date, 0.40% per annum. On
each Distribution Date with respect to the Class M-1 Certificates (A) on and
prior to the Optional Termination Date, 2.50% per annum and (B) after the
Optional Termination Date, 3.75% per annum. On each Distribution Date with
respect to the Class M-2 Certificates (A) on and prior to the Optional
Termination Date, 3.50% per annum and (B) after the Optional Termination Date,
5.25% per annum.

                  "Certificate Owner": With respect to a Book-Entry Certificate,
the Person who is the beneficial owner of such Certificate as reflected on the
books of the Depository or on the books of a Depository Participant or on the
books of an indirect participating brokerage firm for which a Depository
Participant acts as agent.

                  "Certificate Principal Balance": With respect to any Class of
Regular Certificates (other than the Class S Certificates and the Class CE
Certificates) immediately prior to any Distribution Date, the Original Class
Certificate Principal Balance thereof reduced by the sum of all amounts actually
distributed in respect of principal of such Class on all prior Distribution
Dates and in the case of a Mezzanine Certificate, Realized Losses allocated
thereto on all prior Distribution Dates. With respect to the Class CE
Certificates as of any date of determination, an amount equal to the excess, if
any, of (A) the then aggregate Uncertificated Principal Balance of the REMIC 3
Regular Interests over (B) the then aggregate Certificate Principal Balances of
the Class A Certificates, the Mezzanine Certificates and the Class P
Certificates then outstanding.

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

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

                  "Class A Certificate": Any one of the Class AF Certificates or
the Class AV Certificates.

                  "Class A Principal Distribution Amount": With respect to the
Class A Certificates and any Distribution Date on or after the Stepdown Date and
on which a Trigger Event is not in effect, the excess of (x) the aggregate

                                        3

<PAGE>

Certificate Principal Balance of the Class A Certificates immediately prior to
such Distribution Date over (y) the lesser of (A) the product of (i) 95.50% and
(ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last
day of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as
of the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period) minus $6,700,000.

                  "Class AF Certificate": Any one of the Class AF Certificates
as designated on the face thereof substantially in the form annexed hereto as
Exhibit A-1, executed, authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and therein and evidencing a
Regular Interest in REMIC 4.

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

                  "Class AF Principal Distribution Amount": With respect to any
Distribution Date and the Class AF Certificates, an amount equal to the lesser
of (i) the Certificate Principal Balance of the Class AF Certificates
immediately preceding such Distribution Date and (ii) the product of (x) the
Class A Principal Distribution Amount and (y) the Class AF Allocation
Percentage.

                  "Class AV Certificate": Any one of the Class AV Certificates
as designated on the face thereof substantially in the form annexed hereto as
Exhibit A-2, executed, authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and therein and evidencing a
Regular Interest in REMIC 4.

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

                  "Class AV Principal Distribution Amount": With respect to any
Distribution Date and the Class AV Certificates, an amount equal to the lesser
of (i) the Certificate Principal Balance of the Class AV Certificates
immediately preceding such Distribution Date and (ii) the product of (x) the
Class A Principal Distribution Amount and (y) the Class AV Allocation
Percentage.

                  "Class CE Certificate": Any one of the Class CE Certificates
as designated on the face thereof substantially in the form annexed hereto as
Exhibit A-6, executed, authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and therein and evidencing a
Regular Interest in REMIC 4.

                  "Class Exemption": A class exemption granted by the DOL, which
provides relief from certain of the prohibited transaction provisions of ERISA
and the related excise tax provisions of the Code.

                  "Class M-1 Certificate": Any one of the Class M-1 Certificates
as designated on the face thereof substantially in the form annexed hereto as
Exhibit A-4, executed, authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and therein and evidencing a
Regular Interest in REMIC 4.

                  "Class M-1 Principal Distribution Amount": With respect to any
Distribution Date, the excess of (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account the
payment of the Class A Principal Distribution Amount on such Distribution Date),
and (ii) the Certificate Principal Balance of the Class M-1 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 97.00% and (ii) the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to scheduled payments of principal due during the related Due Period, to the
extent received

                                        4

<PAGE>

or advanced, and unscheduled collections of principal received during the
related Prepayment Period) and (B) the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to scheduled payments of principal due during the related Due Period, to the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) minus $6,700,000.

                  "Class M-2 Certificate": Any one of the Class M-2 Certificates
as designated on the face thereof substantially in the form annexed hereto as
Exhibit A-5, executed, authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and therein and evidencing a
Regular Interest in REMIC 4.

                  "Class M-2 Principal Distribution Amount": With respect to any
Distribution Date, the excess of (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account the
payment of the Class A Principal Distribution Amount on such Distribution Date),
(ii) the Certificate Principal Balance of the Class M-1 Certificates (after
taking into account the payment of the Class M-1 Principal Distribution Amount
on such Distribution Date) and (iii) the Certificate Principal Balance of the
Class M-2 Certificates immediately prior to such Distribution Date over (y) the
lesser of (A) the product of (i) 98.50% and (ii) the aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period) and (B) the aggregate
Stated Principal Balance of the Mortgage Loans as of the last day of the related
Due Period (after giving effect to scheduled payments of principal due during
the related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) minus
$6,700,000.

                  "Class P Certificate": Any one of the Class P Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit A-7, executed, authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and therein and evidencing a
Regular Interest in REMIC 4.

                  "Class R Certificate": Any one of the Class R Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit A-8, executed, authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and therein and evidencing the
ownership of the Class R-1 Interest, the Class R-2 Interest, the Class R-3
Interest and the Class R-4 Interest.

                  "Class R-1 Interest": The uncertificated Residual Interest in
REMIC 1.

                  "Class R-2 Interest": The uncertificated Residual Interest in
REMIC 2.

                  "Class R-3 Interest": The uncertificated Residual Interest in
REMIC 3.

                  "Class R-4 Interest": The uncertificated Residual Interest in
REMIC 4.

                  "Class S Certificate": Any one of the Class S Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit A-3, executed, authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and therein and evidencing a
Regular Interest in REMIC 4.

                  "Closing Date": December 6, 2002.

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

                  "Collection Account": The account or accounts created and
maintained by the Master Servicer pursuant to Section 3.04(a), which shall be
entitled "Ameriquest Mortgage Company, as Master Servicer for Deutsche Bank
National Trust Company, as Trustee, in trust for registered Holders of
Ameriquest Mortgage Securities Inc., Series 2002-D", and which must be an
Eligible Account.

                  "Commission": The Securities and Exchange Commission.

                                        5

<PAGE>

                  "Compensating Interest": As defined in Section 4.04(e) hereof.

                  "Corporate Trust Office": The principal corporate trust office
of the Trustee at which at any particular time its corporate trust business in
connection with this Agreement shall be administered, which office at the date
of the execution of this instrument is located at 1761 East St. Andrew Place,
Santa Ana, CA 92705-4934, Attention: Trust Administration--AQ020D, or at such
other address as the Trustee may designate from time to time by notice to the
Certificateholders, the Depositor, the Guarantor, the Master Servicer and the
Seller.

                  "Corresponding Certificate": With respect to (i) REMIC 3
Regular Interest LT3-AF1, (ii) REMIC 3 Regular Interest LT3-AV1, (iii) REMIC 3
Regular Interest LT3-M1, (iv) REMIC 3 Regular Interest LT3-M2 and (v) REMIC 3
Regular Interest LT3-P, (i) the Class AF Certificates, (ii) the Class AV
Certificates, (iii) the Class M-1 Certificates, (iv) the Class M-2 Certificates
and (v )the Class P Certificates, respectively.

                  "Cumulative Annual Loss Master Servicer Termination Trigger":
A Cumulative Annual Loss Master Servicer Termination Trigger will have occurred
as of any Determination Date if the Cumulative Annual Loss Percentage as of such
Determination Date is greater than 1.75%.

                  "Cumulative Annual Loss Percentage": The cumulative Realized
Losses over the most recent 12 month period expressed as a percentage of the
outstanding Pool Balance at the beginning of such 12 month period and any amount
in the Pre-Funding Accounts at the beginning of such 12 month period.

                  "Cumulative Loss Master Servicer Termination Trigger": A
Cumulative Loss Master Servicer Termination Trigger will have occurred as of any
Determination Date if cumulative Realized Losses as of such Determination Date,
expressed as a percentage of the Maximum Collateral Amount, equal or exceed the
percentages set forth below:

            DISTRIBUTION DATE                           PERCENTAGE
            -----------------                           ----------

January 2003 to December 2003                             2.00%
January 2004 to December 2004                             2.50%
January 2005 to December 2005                             3.25%
January 2006 to December 2006                             3.75%
January 2007 and thereafter                               4.50%

                  "Cumulative Loss Step-up Trigger": A Cumulative Loss Step-up
Trigger will have occurred on a Distribution Date if cumulative Realized Losses
as of such Distribution Date, expressed as a percentage of the Maximum
Collateral Amount, equal or exceed the percentages set forth below:

            DISTRIBUTION DATE                           PERCENTAGE
            -----------------                           ----------

January 2003 to December 2003                              1.50%
January 2004 to December 2004                              2.25%
January 2005 to December 2005                              2.85%
January 2006 to December 2006                              3.60%
January 2007 and thereafter                                4.25%

                                        6

<PAGE>

                  "Custodian": Deutsche Bank National Trust Company, as
custodian of the Mortgage Files, and any successor thereto.

                  "Cut-off Date": With respect to any Initial Mortgage Loan, the
close of business on the later of (i) the date of origination of such Mortgage
Loan or (ii) December 1, 2002. With respect to any Subsequent Mortgage Loan, the
close of business on the later of (i) the date of origination of such Mortgage
Loan or (ii) the first day of the month in which a Subsequent Transfer with
respect to such Subsequent Mortgage Loan occurs. With respect to any Qualified
Substitute Mortgage Loan, the date of substitution.

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

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

                  "Deficiency Amount": With respect to any Distribution Date and
the Guaranteed Certificates, the sum of (i) the Guaranteed Interest Distribution
Amount and (ii) the Guaranteed Principal Distribution Amount.

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

                  "Definitive Certificates":  As defined in Section 5.01(b).

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

                  "Delinquency Master Servicer Termination Trigger": A
Delinquency Master Servicer Termination Trigger will have occurred on a
Distribution Date if the Three-Month Rolling Delinquency Percentage exceeds
14.00%.

                  "Delinquency Percentage": With respect to any Distribution
Date, the percentage equivalent of a fraction, the numerator of which is the
aggregate Stated Principal Balance of all Mortgage Loans as of the last day of
the previous calendar month that, as of such last day of the previous calendar
month, are 60 or more days delinquent (measured under the OTS delinquency
calculation methodology), are in foreclosure, have been converted to REO
Properties or have related borrowers that are the subject of bankruptcy
proceedings, and the denominator of which is the aggregate Stated Principal
Balance of the Mortgage Loans and REO Properties as of the last day of the
previous calendar month; provided, however, that any Mortgage Loan purchased by
the Master Servicer or the NIMS Insurer pursuant to Section 3.16 shall not be
included in either the numerator or the denominator for purposes of calculating
the Delinquency Percentage.

                  "Delinquency Step-up Trigger": A Delinquency Step-up Trigger
will have occurred if the Three- Month Rolling Delinquency Percentage for a
Distribution Date exceeds 16.00%. A Delinquency Step-up Trigger cannot occur on
or before the Distribution Date in June 2005.

                  "Delinquent": Any Mortgage Loan with respect to which, as of
any date of determination, the Monthly Payment due on a Due Date for such
Mortgage Loan has not been made by the close of business on the next succeeding
Due Date for such Mortgage Loan.

                  "Depositor": Ameriquest Mortgage Securities Inc., a Delaware
corporation, or any successor in interest.

                                        7

<PAGE>

                  "Depository": The Depository Trust Company, or any successor
Depository hereafter named. The nominee of the initial Depository, for purposes
of registering those Certificates that are to be Book-Entry Certificates, is
CEDE & Co. The Depository shall at all times be a "clearing corporation" as
defined in Section 8-102(3) of the Uniform Commercial Code of the State of New
York and a "clearing agency" registered pursuant to the provisions of Section
17A of the Securities Exchange Act of 1934, as amended.

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

                  "Determination Date": With respect to any Distribution Date,
the 10th day of the calendar month in which such Distribution Date occurs or, if
such 10th day is not a Business Day, the Business Day immediately preceding such
10th day.

                  "Disqualified Organization": A "disqualified organization"
under Section 860E of the Code, which as of the Closing Date is any of: (i) the
United States, any state or political subdivision thereof, any foreign
government, any international organization, or any agency or instrumentality of
any of the foregoing, (ii) any organization (other than a cooperative described
in Section 521 of the Code) which is exempt from the tax imposed by Chapter 1 of
the Code unless such organization is subject to the tax imposed by Section 511
of the Code, (iii) any organization described in Section 1381(a)(2)(C) of the
Code, (iv) an "electing large partnership" within the meaning of Section 775 of
the Code, or (v) any other Person so designated by the Trustee based upon an
Opinion of Counsel provided by nationally recognized counsel to the Trustee that
the holding of an ownership interest in a Class R Certificate by such Person may
cause a Trust REMIC or any Person having an ownership interest in any Class of
Certificates (other than such Person) to incur liability for any federal tax
imposed under the Code that would not otherwise be imposed but for the transfer
of an ownership interest in the Class R Certificate to such Person. A
corporation will not be treated as an instrumentality of the United States or of
any state or political subdivision thereof if all of its activities are subject
to tax and a majority of its board of directors is not selected by a
governmental unit. The term "United States", "state" and "international
organizations" shall have the meanings set forth in Section 7701 of the Code.

                  "Distribution Account": The trust account or accounts created
and maintained by the Trustee pursuant to Section 3.04(e) which shall be
entitled "Distribution Account, Deutsche Bank National Trust Company, as
Trustee, in trust for the registered Certificateholders of Ameriquest Mortgage
Securities Inc., Series 2002-D" and which must be an Eligible Account.

                  "Distribution Date": The 25th day of any calendar month, or if
such 25th day is not a Business Day, the Business Day immediately following such
25th day, commencing in January 2003.

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

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

                  "Eligible Account": A segregated account that is (i) an
account or accounts maintained with a federal or state chartered depository
institution or trust company the short-term unsecured debt obligations of which
(or, in the case of a depository institution or trust company that is the
principal subsidiary of a holding company, the short-term unsecured debt
obligations of such holding company) are rated F-1 by Fitch, P-1 by Moody's and
A-1+ by S&P (or comparable ratings) at the time any amounts are held on deposit
therein, (ii) an account or accounts the deposits in which are fully insured by
the FDIC (to the limits established by such corporation), the uninsured deposits
in which account are otherwise secured such that, as evidenced by an Opinion of
Counsel delivered to the Trustee, the NIMS Insurer and the Guarantor, the
Certificateholders will have a claim with respect to the funds in such account
or a perfected first

                                        8

<PAGE>

priority security interest against such collateral (which shall be limited to
Permitted Investments) securing such funds that is superior to claims of any
other depositors or creditors of the depository institution with which such
account is maintained, (iii) a trust account or accounts maintained with the
trust department of a federal or state chartered depository institution,
national banking association or trust company acting in its fiduciary capacity
or (iv) an account otherwise acceptable to the Guarantor, as evidenced by a
letter from the Guarantor to the Trustee (with a copy to the NIMS Insurer and
the Rating Agencies). Eligible Accounts may bear interest.

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

                  "ERISA Restricted Certificates": The Class CE Certificates,
the Class P Certificates and the Class R Certificates.

                  "Escrow Account": The account or accounts created and
maintained pursuant to Section 3.04(c).

                  "Escrow Payments": The amounts constituting taxes, and/or fire
and hazard insurance premiums escrowed by the Mortgagor with the mortgagee
pursuant to a voluntary escrow agreement related to any Mortgage Loan.

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

                  "Excess Group Net WAC Rate Amount": For any Distribution Date
and the Class AF Certificates, the positive excess, if any, of (i) the amount of
interest accrued on the Class AF Certificates for such Distribution Date
calculated at the Net WAC Rate for the Class AF Certificates over (ii) the
amount of interest accrued on the Class AF Certificates at the Pool Net WAC
Rate. For any Distribution Date and the Class AV Certificates, the positive
excess, if any, of (i) the amount of interest accrued on the Class AV
Certificates for such Distribution Date calculated at the Net WAC Rate for the
Class AV Certificates over (ii) the amount of interest accrued on the Class AV
Certificates at the Pool Net WAC Rate.

                  "Excess Net WAC Rate Reserve Account": The Excess Net WAC Rate
Reserve Account established and maintained as set forth in Section 4.13.

                  "Excess Pool Net WAC Rate Amount": For any Distribution Date
and the Class AF Certificates, the positive excess, if any, of (i) the amount of
interest accrued on the Class AF Certificates for such Distribution Date
calculated at the Pool Net WAC Rate over (ii) the amount of interest accrued on
the Class AF Certificates at the Net WAC Rate for the Class AF Certificates. For
any Distribution Date and the Class AV Certificates, the positive excess, if
any, of (i) the amount of interest accrued on the Class AV Certificates for such
Distribution Date calculated at the Pool Net WAC Rate over (ii) the amount of
interest accrued on such Class AV Certificates at the Net WAC Rate for the Class
AV Certificates.

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

                  "Extended Period":  As defined in Section 3.13(d).

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

                  "Fidelity Bond":  As defined in Section 3.10.

                  "Final Recovery Determination": With respect to any defaulted
Mortgage Loan or any REO Property (other than a Mortgage Loan or REO Property
purchased by the Seller or the Master Servicer pursuant to or as contemplated by
Section 2.03, 3.16 or 10.01), a determination made by the Master Servicer that
all Insurance Proceeds, Liquidation Proceeds and other payments or recoveries
which the Master Servicer, in its reasonable good faith judgment, expects to be
finally recoverable in respect thereof have been so recovered. The Master
Servicer shall maintain records,

                                        9

<PAGE>

prepared by a Servicing Officer, of each Final Recovery Determination made
thereby.

                  "Fitch":  Fitch Ratings or its successor in interest.

                  "Formula Rate": With respect to the Class AV Certificates and
the Mezzanine Certificates and any Distribution Date, the lesser of (i) LIBOR
plus the Certificate Margin and (ii) the Maximum Cap Rate.

                  "Freddie Mac": The Federal Home Loan Mortgage Corporation, a
corporate instrumentality of the United States created and existing under Title
III of the Emergency Home Finance Act of 1970, as amended, or any successor
thereto.

                  "Funding Period": With respect to each Pre-Funding Account,
the period beginning on the Closing Date and ending on the earlier to occur of
the date upon which (a) the amount on deposit in the related Pre-Funding Account
(exclusive of investment income) has been reduced to zero or (b) February 10,
2003.

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

                  "Group I Interest Coverage Account": The account established
and maintained pursuant to Section 4.11.

                  "Group I Interest Coverage Amount": The amount to be paid by
the Depositor to the Trustee for deposit in the Group I Interest Coverage
Account on the Closing Date pursuant to Section 4.11, which amount is
$779,098.91.

                  "Group I Mortgage Loan": A Mortgage Loan which provides for a
fixed Mortgage Rate payable with respect thereto. The Group I Mortgage Loans are
identified as such on the Mortgage Loan Schedule attached hereto as Schedule 1.

                  "Group I Original Pre-Funded Amount": The amount deposited by
the Depositor in the Group I Pre- Funding Account on the Closing Date, which
amount is $95,583,284.76.

                  "Group I Pre-Funding Account": The account established and
maintained pursuant to Section 4.10.

                  "Group II Interest Coverage Account": The account established
and maintained pursuant to Section 4.11.

                  "Group II Interest Coverage Amount": The amount to be paid by
the Depositor to the Trustee for deposit in the Group II Interest Coverage
Account on the Closing Date pursuant to Section 4.11, which amount is
$1,813,397.43.

                  "Group II Mortgage Loan": Each of the Mortgage Loans
identified in the Mortgage Loan Schedule attached hereto as Schedule 1 as having
a Mortgage Rate that is subject to adjustment. The Group II Mortgage Loans are
identified as such on the Mortgage Loan Schedule attached hereto as Schedule 1.

                  "Group II Original Pre-Funded Amount": The amount deposited by
the Depositor in the Group II Pre- Funding Account on the Closing Date, which
amount is $222,475,580.64.

                  "Group II Pre-Funding Account": The account established and
maintained pursuant to Section 4.10.

                  "Guarantee": The obligations of the Guarantor pursuant to
Section 4.02.

                                       10

<PAGE>

                  "Guarantee Fee": For any Distribution Date and with respect to
the Guaranteed Certificates, the fee payable to the Guarantor in respect of its
services as Guarantor that accrues at the applicable Guarantee Fee Rate for such
Guaranteed Certificates on a balance equal to the aggregate Certificate
Principal Balance of the Class A Certificates immediately prior to such
Distribution Date. The Guarantee Fee with respect to the Guaranteed Certificates
will accrue for each Distribution Date at the applicable Guarantee Fee Rate on
the Certificate Principal Balance of the Class A Certificates immediately prior
to such Distribution Date, on the basis of a 360-day year and the actual number
of days elapsed in the related Accrual Period.

                  "Guarantee Fee Rate": The per annum rate set forth in a side
letter of the Guarantor, addressed to the Trustee, the Depositor, the Seller and
the Master Servicer.

                  "Guaranteed Certificates": The Class A Certificates and the
Class S Certificates.

                  "Guaranteed Interest Distribution Amount": For any
Distribution Date and the Guaranteed Certificates, the amount, if any, after
giving effect to the distributions made pursuant to clauses (i) and (ii) of
Section 4.01(a), by which the Interest Distributable Amount payable on the Class
or Classes of Guaranteed Certificates for such Distribution Date exceeds the
amount of interest actually paid to the Holders of the Class or Classes of
Guaranteed Certificates on such Distribution Date pursuant to Section
4.01(a)(ii) of this Agreement.

                  "Guaranteed Principal Distribution Amount": With respect to
any Distribution Date, the amount, if any, by which the aggregate Certificate
Principal Balances of the Class A Certificates (after giving effect to all
amounts distributable and allocable to principal on such Class A Certificates
but prior to giving effect to any Guarantor Payment on such Distribution Date)
exceeds the aggregate Stated Principal Balance of the Mortgage Loans (after
giving effect to the principal portion of Monthly Payments due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) plus any
amounts remaining on deposit in the Pre-Funding Accounts, plus, in the case of
the final Distribution Date, any unpaid Certificate Principal Balance of the
Class A Certificates.

                  "Guarantor":  Freddie Mac, or its successor in interest.

                  "Guarantor Payment": Any payment made by the Guarantor in
respect of a Deficiency Amount.

                  "Guarantor Reimbursement Amount": With respect to any
Distribution Date, (i) the sum of any accrued but unpaid Guarantee Fees and (ii)
the sum of all amounts paid by the Guarantor in respect of Deficiency Amounts on
all prior Distribution Dates to the extent not previously reimbursed, with
interest thereon at a rate equal to the Prime Rate plus 2.00%.

                  "Holder":  See "Certificateholder."

                  "Indenture": An indenture relating to the issuance of notes
secured by, among other things, the Class CE Certificates, the Class P
Certificates and/or the Class R Certificates (or any portion thereof) which may
or may not be guaranteed by the NIMS Insurer.

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

                  "Index": With respect to each Group II Mortgage Loan and with
respect to each related Adjustment

                                       11

<PAGE>

Date, the index as specified in the related Mortgage Note.

                  "Information Circular": The Information Circular of the
Depositor dated November 22, 2002, relating to the Guaranteed Certificates.

                  "Initial Certificate Principal Balance": With respect to any
Class A Certificate, Mezzanine Certificate, Class CE Certificate or Class P
Certificate, the amount designated "Initial Certificate Principal Balance" on
the face thereof.

                  "Initial Group I Mortgage Loan": Any of the Mortgage Loans
included in Loan Group I as of the Closing Date. The aggregate principal balance
of the Initial Group I Mortgage Loans as of the Cut-off Date is equal to
$307,114,503.33.

                  "Initial Group II Mortgage Loan": Any of the Mortgage Loans
included in Loan Group II as of the Closing Date. The aggregate principal
balance of the Initial Group II Mortgage Loans as of the Cut-off Date is equal
to $714,826,631.27.

                  "Initial Mortgage Loans": Any of the Initial Group I Mortgage
Loans and the Initial Group II Mortgage Loans included in the Trust Fund as of
the Closing Date.

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

                  "Interest Coverage Accounts": The Group I Interest Coverage
Account and the Group II Interest Coverage Account.

                  "Interest Coverage Amounts": The Group I Interest Coverage
Amount and the Group II Interest Coverage Amount.

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

                  "Interest Distributable Amount": With respect to any
Distribution Date and either Class of Class A Certificates and the Class S
Certificates, the sum of (i) the Monthly Interest Distributable Amount for such
Class for such Distribution Date and (ii) the Unpaid Interest Shortfall Amount,
if any, for such Class for such Distribution Date. With respect to any
Distribution Date and any Class of Mezzanine Certificates, the Monthly Interest
Distributable Amount for such Class for such Distribution Date, net of amounts
allocable to the Mezzanine Certificates pursuant to Section 1.03. With respect
to any Distribution Date and the Class CE Certificates, the sum of (i) the
Monthly Interest Distributable Amount for such Class for such Distribution Date
and (ii) the Unpaid Interest Shortfall Amount, if any, for such Class for such
Distribution Date, net of (x) an amount equal to the portion of Realized Losses
allocable to the Class CE Certificates, if any, pursuant to Section 1.03 and
Section 4.09 hereof and (y) any other amounts allocable to the Class CE
Certificates pursuant to Section 1.03.

                  "Interest Remittance Amount": With respect to any Distribution
Date, that portion of the Available Funds for such Distribution Date allocable
to interest on the Mortgage Loans.

                  "Investment Account":  As defined in Section 3.06.

                  "Late Collections": With respect to any Mortgage Loan, all
amounts received subsequent to the

                                       12

<PAGE>

Determination Date immediately following any related Due Period, whether as late
payments of Monthly Payments or as Insurance Proceeds, Liquidation Proceeds or
otherwise, which represent late payments or collections of principal and/or
interest due (without regard to any acceleration of payments under the related
Mortgage and Mortgage Note) but delinquent on a contractual basis for such Due
Period and not previously recovered.

                  "LIBOR": With respect to the first Accrual Period, 1.44% per
annum. With respect to each Accrual Period after the first Accrual Period, the
rate determined by the Trustee on the related Interest Determination Date on the
basis of the "Interest Settlement Rate" for U.S. dollar deposits of one-month
maturity set by the British Bankers' Association (the "BBA") as such rate
appears on Telerate Page 3750 as of 11:00 a.m. (London time) on such Interest
Determination Date. With respect to any Interest Determination Date, if the
BBA's Interest Settlement Rate does not appear on Telerate Page 3750 as of 11:00
a.m. (London time) on such date, or if Telerate Page 3750 is not available on
such date, the Trustee will obtain such from Reuters Monitor Money Rates Service
page "LIBOR01" or Bloomberg L.P. page "BBAM." If such rate is not published for
such Interest Determination Date, LIBOR for such date will be the most recently
published Interest Settlement Rate. In the event that the BBA no longer sets an
Interest Settlement Rate, the Guarantor will designate an alternative index that
has performed, or that the Guarantor expects to perform, in a manner
substantially similar to the BBA's Interest Settlement Rate. The Guarantor will
select a particular index as the alternative index only if it receives an
Opinion of Counsel that the selection of such index will not cause any REMIC to
lose its classification as a REMIC for federal income tax purposes.

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

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

                  "Liquidation Event": With respect to any Mortgage Loan, any of
the following events: (i) such Mortgage Loan is paid in full; (ii) a Final
Recovery Determination is made as to such Mortgage Loan; or (iii) such Mortgage
Loan is removed from the Trust Fund by reason of its being purchased, sold or
replaced pursuant to or as contemplated by Section 2.03, Section 3.12, Section
3.16 or Section 10.01. With respect to any REO Property, either of the following
events: (i) a Final Recovery Determination is made as to such REO Property; or
(ii) such REO Property is removed from the Trust Fund by reason of its being
sold or purchased pursuant to Section 3.13, Section 3.16 or Section 10.01.

                  "Liquidation Proceeds": The amount (other than Insurance
Proceeds or amounts received in respect of the rental of any REO Property prior
to REO Disposition) received by the Master Servicer in connection with (i) the
taking of all or a part of a Mortgaged Property by exercise of the power of
eminent domain or condemnation, (ii) the liquidation of a defaulted Mortgage
Loan by means of a trustee's sale, foreclosure sale or otherwise, or (iii) the
repurchase, substitution or sale of a Mortgage Loan or an REO Property pursuant
to or as contemplated by Section 2.03, Section 3.12, Section 3.13, Section 3.16
or Section 10.01.

                  "Liquidation Report": The report referred to in Section
4.05(c) which shall be substantially in the form attached hereto as Exhibit K.

                  "Loan Data Reporting Date": With respect to any Distribution
Date, four Business Days after the related Determination Date.

                  "Loan Data Remittance Report": As defined in Section 4.06(a).

                  "Loan Group": Loan Group I or Loan Group II, as the context
requires.

                  "Loan Group I": The group of Mortgage Loans identified in the
Mortgage Loan Schedule as having

                                       13

<PAGE>

been assigned to Loan Group I.

                  "Loan Group II": The group of Mortgage Loans identified in the
Mortgage Loan Schedule as having been assigned to Loan Group II.

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

                  "Losses":  As defined in Section 9.03.

                  "Loss Mitigation Action Plan": The policies and procedures set
forth in Exhibit G hereto relating to the realization on delinquent Mortgage
Loans, which are incorporated by reference into this Agreement and shall be
deemed a part hereof.

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

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

                  "Marker Rate": With respect to the Class CE Certificates and
any Distribution Date, a per annum rate equal to two (2) times the weighted
average of the Uncertificated REMIC 3 Pass-Through Rates for the REMIC 3 Regular
Interests (other than REMIC 3 Regular Interest LT3-AA, REMIC 3 Regular Interest
LT3-S and REMIC 3 Regular Interest LT3-P), with the rate on the REMIC 3 Regular
Interests subject to a cap equal to the related Pass- Through Rate (in the case
of REMIC 3 Regular Interest LT3-AF1) or the related Formula Rate (in the case of
REMIC 3 Regular Interest LT3-AV1, REMIC 3 Regular Interest LT3-M1 and REMIC 3
Regular Interest LT3-M2) for the purpose of this calculation for such
Distribution Date and with the rate on REMIC 3 Regular Interest LT3-ZZ subject
to a cap of zero for the purpose of this calculation; provided, however, that
calculations of the Uncertificated REMIC 3 Pass-Through Rate with respect to
REMIC 3 Regular Interest LT3-AV1, REMIC 3 Regular Interest LT3-M1 and REMIC 3
Regular Interest LT3-M2 shall be multiplied by a fraction, the numerator of
which is the actual number of days in the Accrual Period and the denominator of
which is 30.

                  "Master Servicer": Ameriquest Mortgage Company, a Delaware
corporation, or any successor Master Servicer appointed as herein provided, in
its capacity as Master Servicer hereunder.

                  "Master Servicer Affiliate": A Person (i) controlling,
controlled by or under common control with the Master Servicer or which is 50%
or more owned by the Master Servicer and (ii) which is qualified to service
residential mortgage loans.

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

                  "Master Servicer Prepayment Charge Payment Amount": The
amounts payable by the Master Servicer pursuant to Section 2.03(e) in respect of
any waived (or, with respect to subsequent changes of law, any unenforceable)
Prepayment Charges.

                  "Master Servicer Remittance Date": With respect to any
Distribution Date, the Business Day prior to the Distribution Date.

                                       14

<PAGE>

                  "Master Servicer Remittance Report": A report prepared by the
Master Servicer and delivered to the Trustee pursuant to Section 4.04.

                  "Maximum Cap Rate": For any Distribution Date with respect to
the Class AV Certificates, a per annum rate equal to the product of (x) the
average of the Adjusted Net Maximum Mortgage Rates of the Group II Mortgage
Loans, weighted on the basis of the outstanding Principal Balances of the Group
II Mortgage Loans as of the first day of the month preceding the month of such
Distribution Date and (y) a fraction, the numerator of which is 30 and the
denominator of which is the actual number of days elapsed in the related Accrual
Period, less the sum of (A) the product of (x) the Guarantee Fee Rate multiplied
by a fraction, the numerator of which is the aggregate Certificate Principal
Balance of the Class AV Certificates immediately prior to such Distribution Date
and the denominator of which is the outstanding Principal Balance of the Group
II Mortgage Loans plus any amount remaining on deposit in the Group II
Pre-Funding Account (exclusive of any investment income therein) as of the first
day of the month preceding the month of such Distribution Date and (y) a
fraction, the numerator of which is 30 and the denominator of which is the
actual number of days elapsed in the related Accrual Period and (B) the product
of (x) the Pass-Through Rate for the Class S Certificates for such Distribution
Date multiplied by a fraction, the numerator of which is the Notional Amount of
the Class S Certificates immediately prior to such Distribution Date and the
denominator of which is the sum of the outstanding Principal Balances of the
Mortgage Loans as of the first day of the month preceding the month of such
Distribution Date and any amount remaining in the Pre-Funding Accounts
(exclusive of any investment income therein) as of the first day of the month
preceding the month of such Distribution Date and (y) a fraction, the numerator
of which is 30 and the denominator of which is the actual number of days elapsed
in the related Accrual Period.

                  For any Distribution Date with respect to the Mezzanine
Certificates, a per annum rate equal to the product of (x) the average of the
Adjusted Net Maximum Mortgage Rates of the Mortgage Loans, weighted on the basis
of the outstanding Principal Balances of the Mortgage Loans as of the first day
of the month preceding the month of such Distribution Date and (y) a fraction,
the numerator of which is 30 and the denominator of which is the actual number
of days elapsed in the related Accrual Period, less the sum of (A) the product
of (x) the Guarantee Fee Rate multiplied by a fraction, the numerator of which
is the aggregate Certificate Principal Balance of the Class A Certificates
immediately prior to such Distribution Date and the denominator of which is the
outstanding Principal Balance of the Mortgage Loans plus any amount remaining on
deposit in the Pre-Funding Accounts (exclusive of any investment income therein)
as of the first day of the month preceding the month of such Distribution Date
and (y) a fraction, the numerator of which is 30 and the denominator of which is
the actual number of days elapsed in the related Accrual Period and (B) the
product of (x) the Pass-Through Rate for the Class S Certificates for such
Distribution Date multiplied by a fraction, the numerator of which is the
Notional Amount of the Class S Certificates immediately prior to such
Distribution Date and the denominator of which is the sum of the outstanding
Principal Balances of the Mortgage Loans as of the first day of the month
preceding the month of such Distribution Date and any amount remaining in the
Pre-Funding Accounts (exclusive of any investment income therein) as of the
first day of the month preceding the month of such Distribution Date and (y) a
fraction, the numerator of which is 30 and the denominator of which is the
actual number of days elapsed in the related Accrual Period.

                  "Maximum Collateral Amount": The sum of (i) the aggregate of
the Cut-off Date Principal Balances of the Initial Mortgage Loans and (ii) the
amount on deposit in the Pre-Funding Accounts on the Closing Date.

                  "Maximum LT3-ZZ Uncertificated Accrued Interest Deferral
Amount": With respect to any Distribution Date, the excess of (a) accrued
interest at the Uncertificated REMIC 3 Pass-Through Rate applicable to REMIC 3
Regular Interest LT3-ZZ for such Distribution Date on a balance equal to the
Uncertificated Principal Balance of REMIC 3 Regular Interest LT3-ZZ minus the
REMIC 3 Overcollateralized Amount, in each case for such Distribution Date, over
(b) Uncertificated Accrued Interest on REMIC 3 Regular Interest LT3-AF1, REMIC 3
Regular Interest LT3- AV1, REMIC 3 Regular Interest LT3-M1 and REMIC 3 Regular
Interest LT3-M2, with the rate on each such REMIC 3 Regular Interest subject to
a cap equal to the related Pass-Through Rate (in the case of REMIC 3 Regular
Interest LT3- AF1) or the related Formula Rate (in the case of REMIC 3 Regular
Interest LT3-AV1, REMIC 3 Regular Interest LT3- M1 and REMIC 3 Regular Interest
LT3-M2) for the purpose of this calculation; provided, however, that
calculations of the rate with respect to Uncertificated REMIC 3 Regular Interest
LT3-AV1, REMIC 3 Regular Interest LT3-M1 and REMIC 3 Regular Interest LT3-M2
shall be multiplied by a fraction, the numerator of which is the actual number
of days

                                       15

<PAGE>

in the Accrual Period and the denominator of which is 30.

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

                  "Mezzanine Certificate": Any Class M-1 Certificates or Class
M-2 Certificates.

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

                  "Modified Mortgage Loan": A Mortgage Loan that has been
modified as a result of an agreement with the Mortgagor that has modified the
Mortgagor's obligations.

                  "Monthly Interest Distributable Amount": With respect to the
Class A Certificates, the Mezzanine Certificates, the Class S Certificates and
the Class CE Certificates and any Distribution Date, the amount of interest
accrued during the related Accrual Period at the related Pass-Through Rate on
the Certificate Principal Balance (or Notional Amount in the case of the Class S
Certificates and Class CE Certificates) of such Class immediately prior to such
Distribution Date, plus (in the case of each Class of Class A Certificates),
solely for federal income tax purposes, the amount of the Excess Group Net WAC
Rate Amount, if any, for such Class for such Distribution Date, and reduced (to
not less than zero), in the case of each class of Class A Certificates, by the
amount of the Excess Pool Net WAC Rate Amount, if any, for such Class for such
Distribution Date. Notwithstanding the foregoing, for federal income tax
purposes and under the REMIC Provisions, the Monthly Interest Distributable
Amount for the Class S Certificates and any Distribution Date will be deemed to
be the Uncertificated Accrued Interest for REMIC 3 Regular Interest LT3-S for
such Distribution Date.

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

                  "Moody's": Moody's Investors Service, Inc. or its successor in
interest.

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

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

                  "Mortgage Loan": Each mortgage loan transferred and assigned
to the Trustee pursuant to Section 2.01, Section 2.03(c) or Section 2.08 as from
time to time held as a part of the Trust Fund, the Mortgage Loans so held being
identified in the Mortgage Loan Schedule.

                  "Mortgage Loan Purchase Agreement": The agreement between the
Seller and the Depositor, regarding the transfer of the Mortgage Loans by the
Seller to or at the direction of the Depositor, a form of which is attached as
Exhibit E.

                  "Mortgage Loan Sample":  As defined in Section 3.21(c).

                  "Mortgage Loan Schedule": As of any date, the list of Mortgage
Loans included in REMIC 1 on such date, attached hereto as Schedule 1, as
supplemented by each schedule of Subsequent Mortgage Loans attached to a

                                       16

<PAGE>

Subsequent Transfer Instrument which, as of the Closing Date, shall conform to
the Mortgage Loan Schedule as provided to the Guarantor in electronic format
prior to the Closing Date. The Mortgage Loan Schedule shall be prepared by the
Seller and shall set forth the following information with respect to each
Mortgage Loan:

                  (1)      the Seller's Mortgage Loan identifying number;

                  (2)      the name of the Mortgagor;

                  (3)      the street address of the Mortgaged Property
                           including city, state, and zip code of the Mortgaged
                           Property;

                  (4)      the occupancy status (as represented by the borrower)
                           of the Mortgaged Property at origination;

                  (5)      the type of residential dwelling constituting the
                           Mortgaged Property;

                  (6)      the date of origination;

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

                  (8)      the first Due Date;

                  (9)      the stated maturity date;

                  (10)     the original months to maturity;

                  (11)     the Loan-to-Value Ratio at origination;

                  (12)     the stated remaining months to maturity as of the
                           applicable Cut-off Date;

                  (13)     the Stated Principal Balance of the Mortgage Loan as
                           of the applicable Cut-off Date;

                  (14)     the current Mortgage Rate of the Mortgage Loan as of
                           the applicable Cut-off Date;

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

                  (16)     the interest "paid to date" of the Mortgage Loan as
                           of the applicable Cut-off Date;

                  (17)     the delinquency status of the Mortgage Loan as of the
                           applicable Cut-off Date;

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

                  (19)     a code indicating the Index that is associated with
                           such Mortgage Loan (if such Mortgage Loan is a Group
                           II Mortgage Loan);

                  (20)     the Gross Margin (if such Mortgage Loan is a Group II
                           Mortgage Loan);

                  (21)     the Periodic Rate Cap for the initial Adjustment Date
                           (if such Mortgage Loan is a Group II Mortgage Loan);

                  (22)     the Minimum Mortgage Rate (if such Mortgage Loan is a
                           Group II Mortgage Loan);

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<PAGE>

                  (23)     the Maximum Mortgage Rate (if such Mortgage Loan is a
                           Group II Mortgage Loan);

                  (24)     the Periodic Rate Cap for each Adjustment Date after
                           the initial Adjustment Date (if such Mortgage Loan is
                           a Group II Mortgage Loan);

                  (25)     the first Adjustment Date immediately following the
                           applicable Cut-off Date (if such Mortgage Loan is a
                           Group II Mortgage Loan);

                  (26)     the rate adjustment frequency (if such Mortgage Loan
                           is a Group II Mortgage Loan);

                  (27)     the purpose of such Mortgage Loan (i.e., purchase,
                           refinance-debt consolidation cashout or
                           refinance-debt consolidation no cashout);

                  (28)     the Seller's credit grade assigned to the Mortgage
                           Loan;

                  (29)     the credit score ("FICO") of such Mortgage Loan;

                  (30)     the number of units;

                  (31)     the lien position of the Mortgage Loan;

                  (32)     the documentation type of the Mortgage Loan;

                  (33)     the number of years the related Prepayment Charge, if
                           any, is in effect; and

                  (34)     whether such Mortgage Loan is covered under the PMI
                           Policy and the amount of such coverage.

                  The Mortgage Loan Schedule shall set forth the following
information, as of the applicable Cut-off Date with respect to the Mortgage
Loans in the aggregate: (1) the number of Mortgage Loans (separately identifying
the number of Group I Mortgage Loans and the number of Group II Mortgage Loans);
(2) the current Principal Balance of the Mortgage Loans; (3) the weighted
average Mortgage Rate of the Mortgage Loans in each Loan Group; and (4) the
weighted average maturity of the Mortgage Loans in each Loan Group. The Mortgage
Loan Schedule shall be amended from time to time by the Master Servicer in
accordance with the provisions of this Agreement and a copy of each related
amendment shall be furnished by the Master Servicer to the NIMS Insurer and the
Guarantor. With respect to any Subsequent Mortgage Loan or Qualified Substitute
Mortgage Loan, Cut-off Date shall refer to the related Cut-off Date for such
Mortgage Loan, determined in accordance with the definition of Cut-off Date
herein.

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

                  "Mortgage Pool": The pool of Mortgage Loans, identified on
Schedule 1 from time to time, and any REO Properties acquired in respect
thereof.

                  "Mortgage Rate": With respect to each Mortgage Loan, the
annual rate at which interest accrues on such Mortgage Loan from time to time in
accordance with the provisions of the related Mortgage Note, which rate (i) in
the case of each Group I Mortgage Loan shall remain constant at the rate set
forth in the Mortgage Loan Schedule as the Mortgage Rate in effect immediately
following the applicable Cut-off Date and (ii) in the case of each Group II
Mortgage Loan (A) as of any date of determination until the first Adjustment
Date following the applicable Cut-off Date shall be the rate set forth in the
Mortgage Loan Schedule as the Mortgage Rate in effect immediately following the
Cut- off Date and (B) as of any date of determination thereafter shall be the
rate as adjusted (subject to rounding) on the most recent Adjustment Date, to
equal the sum, as provided in the Mortgage Note, of the Index, determined as set
forth in the related Mortgage Note, plus the related Gross Margin, subject to
the limitations set forth in the related Mortgage Note.

                                       18

<PAGE>

With respect to each Mortgage Loan that becomes an REO Property, as of any date
of determination, the annual rate determined in accordance with the immediately
preceding sentence as of the date such Mortgage Loan became an REO Property.

                  "Mortgaged Property": The underlying property identified in
the related Mortgage as securing a Mortgage Loan, including any REO Property,
consisting of an Estate in Real Property improved by a Residential Dwelling
(excluding for purposes of construing the representations or warranties made in
the Mortgage Loan Purchase Agreement, any improvements thereupon not considered
by the appraiser in determining the value of such Mortgaged Property).

                  "Mortgagor":  The obligor on a Mortgage Note.

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

                  "Net Monthly Excess Cashflow": With respect to any
Distribution Date, the sum of (i) any Overcollateralization Release Amount for
such Distribution Date and (ii) the excess of (x) the Available Funds for such
Distribution Date over (y) the sum for such Distribution Date of (A) the Monthly
Interest Distributable Amounts distributable to the holders of the Class A
Certificates, the Mezzanine Certificates and the Class S Certificates, (B) the
Unpaid Interest Shortfall Amounts for the Class A Certificates and the Class S
Certificates, (C) the Principal Remittance Amount, (D) the Guarantee Fee and (E)
the Guarantor Reimbursement Amount.

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

                  "Net WAC Rate": For any Distribution Date with respect to the
Class AF Certificates, a per annum rate equal to the Adjusted Net Mortgage Rates
of the Group I Mortgage Loans, weighted on the basis of the outstanding
Principal Balances of the Group I Mortgage Loans as of the first day of the
month preceding the month of such Distribution Date, less the sum of (A) the
Guarantee Fee Rate multiplied by a fraction, the numerator of which is the
aggregate Certificate Principal Balance of the Class AF Certificates immediately
prior to such Distribution Date and the denominator of which is the outstanding
Principal Balance of the Group I Mortgage Loans plus any amount remaining on
deposit in the Group I Pre-Funding Account (exclusive of any investment income
therein) as of the first day of the month preceding the month of such
Distribution Date and (B) the Pass-Through Rate for the Class S Certificates for
such Distribution Date multiplied by a fraction, the numerator of which is the
Notional Amount of the Class S Certificates immediately prior to such
Distribution Date and the denominator of which is the sum of the outstanding
Principal Balances of the Mortgage Loans as of the first day of the month
preceding the month of such Distribution Date and any amount remaining in the
Pre-Funding Accounts (exclusive of any investment income therein) as of the
first day of the month preceding the month of such Distribution Date.

                  For any Distribution Date with respect to the Class AV
Certificates, a per annum rate equal to the product of (x) the Adjusted Net
Mortgage Rates of the Group II Mortgage Loans, weighted on the basis of the
outstanding Principal Balances of the Group II Mortgage Loans as of the first
day of the month preceding the month of such Distribution Date and (y) a
fraction, the numerator of which is 30 and the denominator of which is the
actual number of days elapsed in the related Accrual Period, less the sum of (A)
the product of (x) the Guarantee Fee Rate multiplied by a fraction, the
numerator of which is the aggregate Certificate Principal Balance of the Class
AV Certificates immediately prior to such Distribution Date and the denominator
of which is the outstanding Principal Balance of the Group II Mortgage Loans
plus any amount remaining on deposit in the Group II Pre-Funding Account
(exclusive of any investment income therein) as of the first day of the month
preceding the month of such Distribution Date and (y) a fraction, the numerator
of which is 30 and the denominator of which is the actual number of days elapsed
in the related Accrual Period and (B) the product of (x) the Pass-Through Rate
for the Class S Certificates for such Distribution Date

                                       19

<PAGE>

multiplied by a fraction, the numerator of which is the Notional Amount of the
Class S Certificates immediately prior to such Distribution Date and the
denominator of which is the sum of the outstanding Principal Balances of the
Mortgage Loans as of the first day of the month preceding the month of such
Distribution Date and any amount remaining in the Pre-Funding Accounts
(exclusive of any investment income therein) as of the first day of the month
preceding the month of such Distribution Date and (y) a fraction, the numerator
of which is 30 and the denominator of which is the actual number of days elapsed
in the related Accrual Period.

                  For any Distribution Date with respect to the Mezzanine
Certificates, a per annum rate equal to the product of (x) the Adjusted Net
Mortgage Rates of the Mortgage Loans, weighted on the basis of the outstanding
Principal Balances of the Mortgage Loans as of the first day of the month
preceding the month of such Distribution Date and (y) a fraction, the numerator
of which is 30 and the denominator of which is the actual number of days elapsed
in the related Accrual Period, less the sum of (A) the product of (x) the
Guarantee Fee Rate multiplied by a fraction, the numerator of which is the
aggregate Certificate Principal Balance of the Class A Certificates immediately
prior to such Distribution Date and the denominator of which is the outstanding
Principal Balance of the Mortgage Loans plus any amount remaining on deposit in
the Pre-Funding Accounts (exclusive of any investment income therein) as of the
first day of the month preceding the month of such Distribution Date and (y) a
fraction, the numerator of which is 30 and the denominator of which is the
actual number of days elapsed in the related Accrual Period and (B) the product
of (x) the Pass-Through Rate for the Class S Certificates for such Distribution
Date multiplied by a fraction, the numerator of which is the Notional Amount of
the Class S Certificates immediately prior to such Distribution Date and the
denominator of which is the sum of the outstanding Principal Balances of the
Mortgage Loans as of the first day of the month preceding the month of such
Distribution Date and any amount remaining in the Pre-Funding Accounts
(exclusive of any investment income therein) as of the first day of the month
preceding the month of such Distribution Date and (y) a fraction, the numerator
of which is 30 and the denominator of which is the actual number of days elapsed
in the related Accrual Period.

                  For any Distribution Date with respect to the Class S
Certificates and REMIC 3 Regular Interest LT3- S, a per annum rate equal to the
Adjusted Net Mortgage Rates of the Mortgage Loans, weighted on the basis of the
outstanding Principal Balances of the Mortgage Loans as of the first day of the
month preceding the month of such Distribution Date, less the Guarantee Fee Rate
multiplied by a fraction, the numerator of which is the aggregate Certificate
Principal Balance of the Class A Certificates immediately prior to such
Distribution Date and the denominator of which is the outstanding Principal
Balance of the Mortgage Loans plus any amount remaining on deposit in the Pre-
Funding Accounts (exclusive of any investment income therein) as of the first
day of the month preceding the month of such Distribution Date.

                  "Net WAC Rate Carryover Amount": With respect to any
Distribution Date on which the Pass- Through Rate for the Class A Certificates,
the Mezzanine Certificates or the Class S Certificates is the Net WAC Rate, the
sum of (A) the excess of (i) the amount of interest such Certificates would have
accrued for such Distribution Date had such Pass-Through Rate been calculated at
the applicable fixed rate (in the case of the Class AF Certificates and the
Class S Certificates) or the Formula Rate (in the case of the Class AV
Certificates and the Mezzanine Certificates), over (ii) the amount of interest
accrued on such Certificates at the related Net WAC Rate for such Distribution
Date and (B) the Net WAC Rate Carryover Amount for such Certificates for the
previous Distribution Date, to the extent not paid on such previous Distribution
Date, together with interest on such sum at a rate equal to the applicable fixed
rate (in the case of the Class AF Certificates and the Class S Certificates) or
the Formula Rate (in the case of the Class AV Certificates and the Mezzanine
Certificates), in each case for the Accrual Period for the current Distribution
Date.

                  "Net WAC Rate Carryover Reserve Account": The Net WAC Rate
Carryover Reserve Account established and maintained pursuant to Section 4.12.

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

                  "NIMS Insurer": Any insurer that guarantees certain payments
under notes secured by collateral which includes, among other things, the Class
CE Certificates, the Class P Certificates and the Class R Certificates;
provided,

                                       20

<PAGE>

however the NIMS Insurer is not and will not be an Affiliate of the Depositor.

                  "Nonrecoverable Advance": Any Advance or Servicing Advance
previously made or proposed to be made in respect of a Mortgage Loan or REO
Property that, in the good faith business judgment of the Master Servicer, will
not be ultimately recoverable from Late Collections, Insurance Proceeds,
Liquidation Proceeds or condemnation proceeds on such Mortgage Loan or REO
Property as provided herein.

                  "Notional Amount": Immediately prior to any Distribution Date,
with respect to the Class S Certificates, an amount equal to the Uncertificated
Principal Balance of REMIC 3 Regular Interest LT3-S immediately prior to such
Distribution Date. Immediately prior to any Distribution Date, with respect to
the Class CE Certificates, the aggregate Uncertificated Principal Balance of the
REMIC 3 Regular Interests (other than REMIC 3 Regular Interest LT3-S)
immediately prior to such Distribution Date.

                  "Offering Circular": The Offering Circular Supplement dated
November 22, 2002, together with the Offering Circular dated December 1, 1999,
relating to Freddie Mac's Structured Pass-Through Certificates, Series T-053.

                  "Officers' Certificate": With respect to the Depositor, a
certificate signed by the Chairman of the Board, the Vice Chairman of the Board,
the President or a vice president (however denominated), and by the Treasurer,
the Secretary, or one of the assistant treasurers or assistant secretaries. With
respect to the Master Servicer, any officer or agent who is authorized to act
for the Master Servicer, initially including those individuals whose names
appear on the list of authorized officers delivered to the Trustee and the
Guarantor on the Closing Date.

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

                  "Optional Termination Date": The Distribution Date following
the date on which the remaining aggregate Stated Principal Balance of the
Mortgage Loans is equal to or less than 10% of the Maximum Collateral Amount.

                  "Original Class Certificate Principal Balance": With respect
to the Class A Certificates, the Mezzanine Certificates, the Class CE
Certificates and the Class P Certificates, the corresponding amounts set forth
opposite such Class above in the Preliminary Statement.

                  "Original Pre-Funded Amounts": The Group I Original Pre-Funded
Amount and the Group II Original Pre-Funded Amount.

                  "Overcollateralization Deficiency Amount": With respect to any
Distribution Date, the amount, if any, by which the Overcollateralization Target
Amount exceeds the Overcollateralized Amount on such Distribution Date (after
giving effect to distributions in respect of the Basic Principal Distribution
Amount on such Distribution Date).

                  "Overcollateralization Release Amount": With respect to any
Distribution Date, the lesser of (x) the Principal Remittance Amount for such
Distribution Date and (y) the excess, if any, of (i) the Overcollateralized
Amount for such Distribution Date (assuming that 100% of the Principal
Remittance Amount is applied as a principal payment on such Distribution Date)
over (ii) the Overcollateralization Target Amount for such Distribution Date.

                  "Overcollateralization Step-up Trigger Event": With respect to
a Distribution Date, the occurrence on such Distribution Date of either of the
following: (i) the Cumulative Loss Step-up Trigger or (ii) the Delinquency
Step-up Trigger.

                  "Overcollateralization Target Amount": With respect to any
Distribution Date, an amount determined as follows:

                                       21

<PAGE>

                  (i) with respect to any Distribution Date occurring prior to
the Stepdown Date, an amount equal to 0.75% of the Maximum Collateral Amount;

                  (ii) with respect to any Distribution Date occurring on or
after the Stepdown Date if an Overcollateralization Step-up Trigger Event has
not occurred for such Distribution Date, an amount equal to the greater of (x)
1.50% of the Pool Balance, after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period and (y) 0.50% of the Maximum Collateral Amount; or

                  (iii) with respect to any Distribution Date occurring on or
after a Stepdown Date if an Overcollateralization Step-up Trigger Event has
occurred for such Distribution Date, an amount equal to the lesser of (x) the
greater of (i) 3.00% of the Pool Balance, after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period and (ii) 0.50% of the Maximum Collateral Amount and
(y) 0.75% of the Maximum Collateral Amount;

                  Notwithstanding the foregoing, at the sole and absolute
discretion of the Guarantor (with the confirmation of the Rating Agencies), the
Overcollateralization Target Amount for any Distribution Date may be reduced to
an amount less than the Overcollateralization Target Amount that would otherwise
be in effect as determined above.

                  "Overcollateralized Amount": For any Distribution Date, the
amount, equal to (i) the Pool Balance (after giving effect to scheduled payments
of principal due during the related Due Period, to the extent received or
advanced, and unscheduled collections of principal received during the related
Prepayment Period) plus any amount remaining in the Pre-Funding Accounts minus
(ii) the aggregate Certificate Principal Balance of the Class A Certificates,
the Mezzanine Certificates and the Class P Certificates as of such Distribution
Date (after giving effect to all amounts distributable and allocable to
principal on the Class A Certificates, the Mezzanine Certificates and the Class
P Certificates on such Distribution Date).

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

                  "Pass-Through Rate": As to any Distribution Date and with
respect to:

                  (i) the Class AF Certificates, the lesser of (x) on and prior
to the Optional Termination Date, 4.55% per annum and, after the Optional
Termination Date, 5.05% per annum and (y) the related Net WAC Rate for such
Distribution Date; provided, however, solely for federal income tax purposes,
the related Net WAC Rate for purposes hereof shall mean the Pool Net WAC Rate;

                  (ii) the Class AV Certificates and the Mezzanine Certificates,
the lesser of (x) the related Formula Rate for such Distribution Date and (y)
the related Net WAC Rate for such Distribution Date; provided, however, solely
for federal income tax purposes, the Net WAC Rate for purposes hereof shall mean
the Pool Net WAC Rate;

                  (iii) the Class S Certificates, a per annum rate equal to the
lesser of (A) 6.50% for each Accrual Period for the 1st Distribution Date
through the 30th Distribution Date and 0.00% thereafter and (B) the related Net
WAC Rate for such Distribution Date; provided, however, solely for federal
income tax purposes, under the REMIC Provisions, (A) the Class S Certificates
will not have a Pass-Through Rate, (B) the Monthly Interest Distributable Amount
for the Class S Certificates and any Distribution Date will be deemed to be the
Uncertificated Accrued Interest for REMIC 3 Regular Interest LT3-S for such
Distribution Date and (C) the Interest Distributable Amount for the Class S
Certificates and any Distribution Date will be deemed to be 100% of the amount
distributed on REMIC 3 Regular Interest LT3-S for such Distribution Date; and

                  (iv) the Class CE Certificates, a per annum rate equal to the
percentage equivalent of a fraction,

                                       22

<PAGE>

the numerator of which is the sum of the amounts calculated pursuant to clauses
(A) through (G) below, and the denominator of which is the Uncertificated
Principal Balance of the REMIC 3 Regular Interests. For purposes of calculating
the Pass-Through Rate for the Class CE Certificates, the numerator is equal to
the sum of the following components:

                  (A) the Uncertificated REMIC 3 Pass-Through Rate for REMIC 3
         Regular Interest LT3-AA minus the Marker Rate, applied to an amount
         equal to the Uncertificated Principal Balance of REMIC 3 Regular
         Interest LT3-AA;

                  (B) the Uncertificated REMIC 3 Pass-Through Rate for REMIC 3
         Regular Interest LT3-AF1 minus the Marker Rate, applied to an amount
         equal to the Uncertificated Principal Balance of REMIC 3 Regular
         Interest LT3-AF1;

                  (C) the Uncertificated REMIC 3 Pass-Through Rate for REMIC 3
         Regular Interest LT3-AV1 minus the Marker Rate, applied to an amount
         equal to the Uncertificated Principal Balance of REMIC 3 Regular
         Interest LT3-AV1;

                  (D) the Uncertificated REMIC 3 Pass-Through Rate for REMIC 3
         Regular Interest LT3-M1 minus the Marker Rate, applied to an amount
         equal to the Uncertificated Principal Balance of REMIC 3 Regular
         Interest LT3-M1;

                  (E) the Uncertificated REMIC 3 Pass-Through Rate for REMIC 3
         Regular Interest LT3-M2 minus the Marker Rate, applied to an amount
         equal to the Uncertificated Principal Balance of REMIC 3 Regular
         Interest LT3-M2;

                  (F) the Uncertificated REMIC 3 Pass-Through Rate for REMIC 3
         Regular Interest LT3-ZZ minus the Marker Rate, applied to an amount
         equal to the Uncertificated Principal Balance of REMIC 3 Regular
         Interest LT3-ZZ; and

                  (G) 100% of the interest on REMIC 3 Regular Interest LT3-P.

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

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

                  "Periodic Rate Cap": With respect to each Group II Mortgage
Loan and any Adjustment Date therefor, the fixed percentage set forth in the
related Mortgage Note, which is the maximum amount by which the Mortgage Rate
for such Mortgage Loan may increase or decrease on such Adjustment Date from the
Mortgage Rate in effect immediately prior to such Adjustment Date.

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

                  (i) direct obligations of, or obligations fully guaranteed as
         to timely payment of principal and interest by, the United States or
         any agency or instrumentality thereof, provided such obligations are
         backed by the full faith and credit of the United States, Freddie Mac
         senior debt obligations, but excluding any of such securities whose
         terms do not provide for payment of a fixed dollar amount upon maturity
         or call for

                                       23

<PAGE>

         redemption;

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

                  (iii) repurchase obligations with a term not to exceed 30 days
         with respect to any security described in clause (i) above and entered
         into with a depository institution or trust company (acting as
         principal) rated A-1+ or higher by S&P, rated P-1 or higher by Moody's
         and rated F-1+ or higher by Fitch, provided, however, that collateral
         transferred pursuant to such repurchase obligation must be of the type
         described in clause (i) above and must (A) be valued daily at current
         market prices plus accrued interest or (B) pursuant to such valuation,
         be equal, at all times, to 105% of the cash transferred by the Trustee
         in exchange for such collateral and (C), be delivered to the Trustee
         or, if the Trustee is supplying the collateral, an agent for the
         Trustee, in such a manner as to accomplish perfection of a security
         interest in the collateral by possession of certificated securities;

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

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

                  (vi) units of money market funds registered under the
         Investment Company Act of 1940 including funds managed or advised by
         the Trustee or an affiliate thereof having a rating by S&P of "AAA" or
         higher if rated by S&P, a rating by Fitch of "AAA" or higher if rated
         by Fitch and a rating by Moody's of "Aaa," "Aa1" or "Aa2"; and

                  (vii) if previously confirmed in writing to the Trustee and
         the Rating Agencies and consented to by the NIMS Insurer, any other
         demand, money market or time deposit, or any other obligation, security
         or investment, as may be acceptable to the Guarantor; provided, that no
         instrument described hereunder shall evidence either the right to
         receive (a) only interest with respect to the obligations underlying
         such instrument or (b) both principal and interest payments derived
         from obligations underlying such instrument and the interest and
         principal payments with respect to such instrument provide a yield to
         maturity at par greater than 120% of the yield to maturity at par of
         the underlying obligations.

                  "Permitted Transferee": Any transferee of a Residual
Certificate other than a Disqualified Organization or a non-U.S. Person.

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

                                       24

<PAGE>

                  "PMI Insurer": Mortgage Guaranty Insurance Corporation, a
Wisconsin stock insurance corporation, or its successors in interest.

                  "PMI Insurer Fee": The amount payable to the PMI Insurer on
each Distribution Date, which amount shall equal the PMI Insurer Fee Rate
accrued on the aggregate Principal Balance of the PMI Mortgage Loans and any
related REO Properties as of the first day of the related Due Period (after
giving effect to scheduled payments of principal due during the Due Period
relating to the previous Distribution Date, to the extent received or advanced)
plus any applicable premium taxes on PMI Mortgage Loans located in West Virginia
and Kentucky.

                  "PMI Insurer Fee Rate": 1.29% per annum.

                  "PMI Mortgage Loans": The list of Mortgage Loans insured by
the PMI Insurer attached hereto as Schedule I.

                  "PMI Policy": The Mortgage Guaranty Master Policy (#71-70035
(10/96)) with respect to the PMI Mortgage Loans, including all endorsements
thereto dated the Closing Date, issued by the PMI Insurer and the Terms Letter,
dated December 4, 2002, among the PMI Insurer, the Master Servicer and the
Trustee.

                  "Pool Balance": As of any date, the aggregate of the Principal
Balances of all Mortgage Loans in both Loan Groups as of such date and any
amounts on deposit in the Pre-Funding Accounts.

                  "Pool Net WAC Rate": A per annum rate (not less than zero)
equal to the weighted average of:

                  (a) the Uncertificated REMIC 2 Pass-Through Rate with respect
         to REMIC 2 Regular Interest LT2-A for such Distribution Date weighted
         on the basis of the Uncertificated Principal Balance of REMIC 2 Regular
         Interest LT2-A;

                  (b) the excess of (i) the Uncertificated REMIC 2 Pass-Through
         Rate with respect to REMIC 2 Regular Interest LT2-B for such
         Distribution Date over (ii) 6.50% for the 1st Distribution Date through
         the 30th Distribution Date and 0.00% thereafter, weighted on the basis
         of the Uncertificated Principal Balance of REMIC 2 Regular Interest
         LT2-B; and

                  (c) the Uncertificated REMIC 2 Pass-Through Rate with respect
         to REMIC 2 Regular Interest LT2-P for such Distribution Date weighted
         on the basis of the Uncertificated Principal Balance of REMIC 2 Regular
         Interest LT2-P.

                  "Pre-Funding Accounts": The Group I Pre-Funding Account and
the Group II Pre-Funding Account.

                  "Prepayment Assumption": As defined in the Information
Circular.

                  "Prepayment Charge": With respect to any Prepayment Period,
any premium, fee or charge payable by the Mortgagor in connection with any
Principal Prepayment pursuant to the terms of the related Mortgage Note as from
time to time held as a part of the Trust Fund, the Prepayment Charges so held
being identified in the Prepayment Charge Schedule (other than any Master
Servicer Prepayment Charge Payment Amount).

                  "Prepayment Charge Schedule": As of any date, the list of
Prepayment Charges included in the Trust Fund on such date, attached hereto as
Schedule 2 (including the Prepayment Charge Summary attached thereto) as
supplemented by each schedule of Subsequent Mortgage Loans which by their terms
have Prepayment Charges. The Prepayment Charge Schedule shall set forth the
following information with respect to each Prepayment Charge:

                  (i)      the Master Servicer's Mortgage Loan identifying
                           number;

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

                                       25

<PAGE>

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

                  (iv)     the term of the related Prepayment Charge;

                  (v)      the original Principal Balance of the related
                           Mortgage Loans; and

                  (vi)     the Principal Balance of the related Mortgage Loan as
                           of the applicable Cut-off Date (or the related
                           Subsequent Cut-off Date, with respect to a Subsequent
                           Mortgage Loan).

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

                  "Prepayment Interest Excess": With respect to any Distribution
Date, for each Mortgage Loan that was the subject of a Principal Prepayment
during the portion of the related Prepayment Period occurring between the first
day of the calendar month in which such Distribution Date occurs and the
Determination Date of the calendar month in which such Distribution Date occurs,
an amount equal to interest (to the extent received) at the applicable Net
Mortgage Rate on the amount of such Principal Prepayment for the number of days
commencing on the first day of the calendar month in which such Distribution
Date occurs and ending on the last date through which interest is collected from
the related Mortgagor. The Master Servicer may withdraw such Prepayment Interest
Excess from the Collection Account in accordance with Section 3.05(a)(iv).

                  "Prepayment Interest Shortfall": With respect to any
Distribution Date, for each Mortgage Loan that was the subject of a Principal
Prepayment during the portion of the related Prepayment Period occurring between
the first day of the related Prepayment Period and the last day of the calendar
month preceding the month in which such Distribution Date occurs, an amount
equal to interest at the applicable Net Mortgage Rate on the amount of such
Principal Prepayment for the number of days commencing on the day after the last
date through which interest is collected from the related Mortgagor and ending
on the last day of the calendar month preceding such Distribution Date. The
obligations of the Master Servicer in respect of any Prepayment Interest
Shortfall are set forth in Section 4.04(e).

                  "Prepayment Period": With respect to any Distribution Date,
the period commencing on the day after the Determination Date in the calendar
month preceding the month in which such Distribution Date occurs (or in the case
of the first Distribution Date, commencing on December 1, 2002) and ending on
the Determination Date in the calendar month in which such Distribution Date
occurs.

                  "Prime Rate": The prime rate of United States money center
commercial banks as published in THE WALL STREET JOURNAL.

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

                  "Principal Distribution Amount": With respect to any
Distribution Date, the sum of (i) the Basic Principal Distribution Amount for
such Distribution Date and (ii) the Extra Principal Distribution Amount for such
Distribution Date.

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

                                       26

<PAGE>

                  "Principal Remittance Amount": With respect to any
Distribution Date, the sum of (i) each scheduled payment of principal collected
or advanced on the Mortgage Loans by the Master Servicer that were due during
the related Due Period, (ii) the principal portion of all partial and full
principal prepayments of the Mortgage Loans applied by the Master Servicer
during the related Prepayment Period, (iii) the principal portion of all Net
Liquidation Proceeds and Insurance Proceeds received during the related
Prepayment Period, (iv) that portion of the Purchase Price, representing
principal of any repurchased Mortgage Loan, required to be deposited to the
Collection Account during the related Prepayment Period, (v) the principal
portion of any Substitution Adjustments deposited in the Collection Account
during the related Prepayment Period, (vi) with respect to the Distribution Date
immediately following the end of the Funding Period, any amounts in the
Pre-Funding Accounts after giving effect to any purchase of Subsequent Mortgage
Loans and (vii) on the Distribution Date on which the Trust Fund is to be
terminated pursuant to Section 10.01, that portion of the Termination Price in
respect of principal on the Mortgage Loans.

                  "Purchase Price": With respect to any Mortgage Loan or REO
Property to be purchased pursuant to or as contemplated by Section 2.03, 3.16 or
10.01, and as confirmed by an Officers' Certificate from the Master Servicer to
the Trustee, an amount equal to the sum of (i) 100% of the Principal Balance
thereof as of the date of purchase (or such other price as provided in Section
10.01), (ii) in the case of (x) a Mortgage Loan, accrued interest on such
Principal Balance at the applicable Mortgage Rate in effect from time to time
from the Due Date as to which interest was last covered by a payment by the
Mortgagor or an advance by the Master Servicer, which payment or advance had as
of the date of purchase been distributed pursuant to Section 4.01, through the
end of the calendar month in which the purchase is to be effected, and (y) an
REO Property, the sum of (1) accrued interest on such Principal Balance at the
applicable Mortgage Rate in effect from time to time from the Due Date as to
which interest was last covered by a payment by the Mortgagor or an advance by
the Master Servicer through the end of the calendar month immediately preceding
the calendar month in which such REO Property was acquired, plus (2) REO Imputed
Interest for such REO Property for each calendar month commencing with the
calendar month in which such REO Property was acquired and ending with the
calendar month in which such purchase is to be effected, net of the total of all
net rental income, Insurance Proceeds, Liquidation Proceeds and Advances that as
of the date of purchase had been distributed as or to cover REO Imputed Interest
pursuant to Section 4.04, (iii) any unreimbursed Servicing Advances and Advances
and any unpaid Servicing Fees allocable to such Mortgage Loan or REO Property,
(iv) any amounts previously withdrawn from the Collection Account in respect of
such Mortgage Loan or REO Property pursuant to Section 3.13 and (v) in the case
of a Mortgage Loan required to be purchased pursuant to Section 2.03, expenses
reasonably incurred or to be incurred by the Master Servicer, the Guarantor, the
NIMS Insurer or the Trustee in respect of the breach or defect giving rise to
the purchase obligation.

                  "Qualified Insurer": Any insurance company acceptable to the
Guarantor.

                  "Qualified Substitute Mortgage Loan": A mortgage loan
substituted for a Deleted Mortgage Loan pursuant to the terms of this Agreement
which must, on the date of such substitution, (i) have an outstanding principal
balance (or in the case of a substitution of more than one mortgage loan for a
Deleted Mortgage Loan, an aggregate principal balance), after application of all
scheduled payments of principal and interest due during or prior to the month of
substitution, not in excess of, and not more than 5% less than, the outstanding
principal balance of the Deleted Mortgage Loan as of the Due Date in the
calendar month during which the substitution occurs, (ii) have a Mortgage Rate
not less than the Mortgage Rate on the Deleted Mortgage Loan and not more than
1% in excess of the Mortgage Rate of the Deleted Mortgage Loan, (iii) if a Group
II Mortgage Loan, have a Maximum Mortgage Rate not less than and not more than
1% in excess of the Maximum Mortgage Rate on the Deleted Mortgage Loan, (iv) if
a Group II Mortgage Loan, have a Minimum Mortgage Rate not less than and not
more than 1% in excess of the Minimum Mortgage Rate of the Deleted Mortgage
Loan, (v) if a Group II Mortgage Loan, have a Gross Margin equal to or greater
than the Gross Margin of the Deleted Mortgage Loan, (vi) if a Group II Mortgage
Loan, have a next Adjustment Date not more than two months later than the next
Adjustment Date on the Deleted Mortgage Loan, have the same Index as the Deleted
Mortgage Loan and have the same Adjustment Date frequency after the first
Adjustment Date as the Deleted Mortgage Loan (vii) have a remaining term to
maturity not greater than (and not more than one year less than) that of the
Deleted Mortgage Loan, (viii) be current as of the date of substitution and have
not been 30 or more days delinquent since origination, (ix) have an original
Loan-to-Value Ratio as of the date of substitution equal to or lower than the
original Loan-to-Value Ratio of the Deleted Mortgage Loan as of such date, (x)
have a risk grading determined by the Seller at

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<PAGE>

least equal to the risk grading assigned on the Deleted Mortgage Loan, (xi) have
been reunderwritten by the Seller (in its capacity as originator) in accordance
with the same underwriting criteria and guidelines as the Deleted Mortgage Loan,
(xii) conform to each representation and warranty set forth in Section 2.04
hereof applicable to the Deleted Mortgage Loan, (xiii) have an original
Principal Balance within the dollar amount limits prescribed by Freddie Mac for
conforming one- to four-family mortgage loans, (xiv) be covered by the PMI
Policy if the Deleted Mortgage Loan was covered by the PMI Policy, (xv) have a
Prepayment Charge at least equal to the Prepayment Charge in the Deleted
Mortgage Loan and (xvi) be approved by the Guarantor. In the event that one or
more mortgage loans are substituted for one or more Deleted Mortgage Loans, the
amounts described in clause (i) hereof shall be determined on the basis of
aggregate principal balances, the Mortgage Rates described in clause (ii) hereof
shall be determined on the basis of weighted average Mortgage Rates, the risk
gradings described in clause (x) hereof shall be satisfied as to each such
mortgage loan, the terms described in clause (vii) hereof shall be determined on
the basis of weighted average remaining term to maturity, the original
Loan-to-Value Ratios described in clause (ix) hereof shall be satisfied as to
each such mortgage loan and, except to the extent otherwise provided in this
sentence, the representations and warranties described in clause (xii) hereof
must be satisfied as to each Qualified Substitute Mortgage Loan or in the
aggregate, as the case may be.

                  Notwithstanding the foregoing, within 90 days following the
Startup Day, the Depositor, with the consent of the Guarantor, shall be
permitted to substitute (1) Mortgage Loans with a Principal Balance not to
exceed 10.00% of the sum of the Cut-off Date Principal Balance of the Initial
Mortgage Loans and the Original Pre-Funded Amounts and (2) any Mortgage Loan
rejected by the Guarantor in its due diligence review. In the case of (1) and
(2) above, such substitution shall be effected in accordance with Section 2.03
and Section 2.08.

                  "Rating Agency or Rating Agencies": Fitch, Moody's and S&P or
their successors. If such agencies or their successors are no longer in
existence, "Rating Agencies" shall be such nationally recognized statistical
rating agencies, or other comparable Persons, designated by the Depositor and
acceptable to the Guarantor, notice of which designation shall be given to the
Trustee and Master Servicer.

                  "Realized Loss": With respect to any Liquidated Mortgage Loan,
the amount of loss realized equal to the portion of the Principal Balance
remaining unpaid after application of all Net Liquidation Proceeds in respect of
such Mortgage Loan.

                  "Record Date": With respect to (i) the Class AV Certificates
and the Mezzanine Certificates, the close of business on the Business Day
immediately preceding the related Distribution Date and (ii) the Class AF
Certificates, the Class S Certificates, the Class CE Certificates, the Class P
Certificates, the Class R Certificates and any Book-Entry Certificate which
becomes a Definitive Certificate, the close of business on the last Business Day
of the calendar month preceding the month in which the related Distribution Date
occurs.

                  "Regular Certificate": Any of the Class A Certificates, the
Mezzanine Certificates, the Class S Certificates, the Class CE Certificates or
the Class P Certificates.

                  "Regular Interest": A "regular interest" within the meaning of
Section 860G of the Code.

                  "Relief Act": The Soldiers' and Sailors' Civil Relief Act of
1940, as amended.

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

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

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<PAGE>

                  "REMIC 1": The segregated pool of assets subject hereto,
constituting the primary trust created hereby and to be administered hereunder,
with respect to a portion of which a REMIC election is to be made, such trust
consisting of: (i) such Mortgage Loans as from time to time are subject to this
Agreement, together with the Mortgage Files relating thereto, and together with
all collections thereon and proceeds thereof (excluding all payments and other
collections of principal and interest due on the Mortgage Loans on or before the
Cut-off Date), (ii) any related REO Property, together with all collections
thereon and proceeds thereof, (iii) the Trustee's rights with respect to the
Mortgage Loans under all insurance policies, including the PMI Policy, required
to be maintained pursuant to this Agreement and any proceeds thereof, (iv) the
Depositor's rights under the Mortgage Loan Purchase Agreement (including any
security interest created thereby) relating to the Mortgage Loans, (v) the
obligations of the Guarantor to the Holders of the Guaranteed Certificates under
the Guarantee and (vi) the Collection Account, the Distribution Account and any
REO Account and such assets that are deposited therein from time to time (other
than amounts therein representing any Master Servicer Prepayment Charge Payment
Amount, the Pre-Funding Accounts, the Interest Coverage Accounts, the Net WAC
Rate Carryover Reserve Account, the Excess Net WAC Rate Reserve Account and any
Subsequent Mortgage Loan Interest).

                  "REMIC 1 Regular Interest LT1-A": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a Regular Interest in REMIC 1. REMIC 1 Regular Interest LT1-A
shall accrue interest at the related Uncertificated REMIC 1 Pass-Through Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Principal Balance as set forth in the Preliminary
Statement hereto.

                  "REMIC 1 Regular Interest LT1-B": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a Regular Interest in REMIC 1. REMIC 1 Regular Interest LT1-B
shall accrue interest at the related Uncertificated REMIC 1 Pass-Through Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Principal Balance as set forth in the Preliminary
Statement hereto.

                  "REMIC 1 Regular Interest LT1-C": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a Regular Interest in REMIC 1. REMIC 1 Regular Interest LT1-C
shall accrue interest at the related Uncertificated REMIC 1 Pass-Through Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Principal Balance as set forth in the Preliminary
Statement hereto.

                  "REMIC 1 Regular Interest LT1-D": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a Regular Interest in REMIC 1. REMIC 1 Regular Interest LT1-D
shall accrue interest at the related Uncertificated REMIC 1 Pass-Through Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Principal Balance as set forth in the Preliminary
Statement hereto.

                  "REMIC 1 Regular Interest LT1-P": One of the separate
non-certificated beneficial ownership interests in REMIC 1 issued hereunder and
designated as a Regular Interest in REMIC 1. REMIC 1 Regular Interest LT1-P
shall accrue interest at the related Uncertificated REMIC 1 Pass-Through Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Principal Balance as set forth in the Preliminary
Statement hereto.

                  "REMIC 1 Regular Interests": REMIC 1 Regular Interest LT1-A,
REMIC 1 Regular Interest LT1-B, REMIC 1 Regular Interest LT1-C, REMIC 1 Regular
Interest LT1-D and REMIC 1 Regular Interest LT1-P.

                  "REMIC 2": The segregated pool of assets consisting of all of
the REMIC 1 Regular Interests and conveyed in trust to the Trustee, for the
benefit of REMIC 2, as holder of the REMIC 2 Regular Interests, and the Class R
Certificateholders, as holders of the Class R-2 Interest, pursuant to Article II
hereunder, and all amounts deposited therein, with respect to which a separate
REMIC election is to be made.

                                       29

<PAGE>

                  "REMIC 2 Regular Interest LT2-A": One of the separate
non-certificated beneficial ownership interests in REMIC 2 issued hereunder and
designated as a Regular Interest in REMIC 2. REMIC 2 Regular Interest LT2- A
shall accrue interest at the related Uncertificated REMIC 2 Pass-Through Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Principal Balance as set forth in the Preliminary
Statement hereto.

                  "REMIC 2 Regular Interest LT2-B": One of the separate
non-certificated beneficial ownership interests in REMIC 2 issued hereunder and
designated as a Regular Interest in REMIC 2. REMIC 2 Regular Interest LT2- B
shall accrue interest at the related Uncertificated REMIC 2 Pass-Through Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Principal Balance as set forth in the Preliminary
Statement hereto.

                  "REMIC 2 Regular Interest LT2-P": One of the separate
non-certificated beneficial ownership interests in REMIC 2 issued hereunder and
designated as a Regular Interest in REMIC 2. REMIC 2 Regular Interest LT2-P
shall be entitled to any Prepayment Charges relating to the Mortgage Loans
collected by the Master Servicer, shall accrue interest at the related
Uncertificated REMIC 2 Pass-Through Rate in effect from time to time, and shall
be entitled to a distribution of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 2 Regular Interests": REMIC 2 Regular Interest LT2-A,
REMIC 2 Regular Interest LT2-B and REMIC 1 Regular Interest LT1-P.

                  "REMIC 3": The segregated pool of assets consisting of all of
the REMIC 2 Regular Interests and conveyed in trust to the Trustee, for the
benefit of REMIC 3, as holder of the REMIC 3 Regular Interests, and the Class R
Certificateholders, as holders of the Class R-3 Interest, pursuant to Article II
hereunder, and all amounts deposited therein, with respect to which a separate
REMIC election is to be made.

                  "REMIC 3 Interest Loss Allocation Amount": With respect to any
Distribution Date, an amount equal to (a) the product of (i) the sum of the
aggregate Principal Balance of the Mortgage Loans and related REO Properties
then outstanding and the amount on deposit in the Pre-Funding Accounts and (ii)
the Uncertificated REMIC 3 Pass- Through Rate for REMIC 3 Regular Interest
LT3-AA minus the Marker Rate, divided by (b) 12.

                  "REMIC 3 Overcollateralization Target Amount": 1% of the
Overcollateralization Target Amount.

                  "REMIC 3 Overcollateralized Amount": With respect to any date
of determination, (i) 1% of the aggregate Uncertificated Principal Balances of
the REMIC 3 Regular Interests minus (ii) the aggregate Uncertificated Principal
Balances of REMIC 3 Regular Interest LT3-AF1, REMIC 3 Regular Interest LT3-AV1,
REMIC 3 Regular Interest LT3-M1 and REMIC 3 Regular Interest LT3-M2, in each
case as of such date of determination.

                  "REMIC 3 Principal Loss Allocation Amount": With respect to
any Distribution Date, an amount equal to (a) the product of (i) the sum of the
aggregate Principal Balance of the Mortgage Loans and related REO Properties
then outstanding and the amount on deposit in the Pre-Funding Accounts and (ii)
1 minus a fraction, the numerator of which is two times the aggregate of the
Uncertificated Principal Balances of REMIC 3 Regular Interest LT- AF1, REMIC 3
Regular Interest LT3-AV1, REMIC 3 Regular Interest LT3-M1 and REMIC 3 Regular
Interest LT3-M2, and the denominator of which is the aggregate of the
Uncertificated Principal Balances of REMIC 3 Regular Interest LT- AF1, REMIC 3
Regular Interest LT3-AV1, REMIC 3 Regular Interest LT3-M1, REMIC 3 Regular
Interest LT3-M2 and REMIC 2 Regular Interest LT3-ZZ.

                  "REMIC 3 Regular Interest LT3-AA": One of the separate
non-certificated beneficial ownership interests in REMIC 3 issued hereunder and
designated as a Regular Interest in REMIC 3. REMIC 3 Regular Interest LT3-AA
shall accrue interest at the related Uncertificated REMIC 3 Pass-Through Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Principal Balance as set forth in the Preliminary
Statement hereto.

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<PAGE>

                  "REMIC 3 Regular Interest LT3-AF1": One of the separate
non-certificated beneficial ownership interests in REMIC 3 issued hereunder and
designated as a Regular Interest in REMIC 3. REMIC 3 Regular Interest LT3-AF1
shall accrue interest at the related Uncertificated REMIC 3 Pass-Through Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Principal Balance as set forth in the Preliminary
Statement hereto.

                  "REMIC 3 Regular Interest LT3-AV1": One of the separate
non-certificated beneficial ownership interests in REMIC 3 issued hereunder and
designated as a Regular Interest in REMIC 3. REMIC 3 Regular Interest LT3-AV1
shall accrue interest at the related Uncertificated REMIC 3 Pass-Through Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Principal Balance as set forth in the Preliminary
Statement hereto.

                  "REMIC 3 Regular Interest LT3-M1": One of the separate
non-certificated beneficial ownership interests in REMIC 3 issued hereunder and
designated as a Regular Interest in REMIC 3. REMIC 3 Regular Interest LT3-M1
shall accrue interest at the related Uncertificated REMIC 3 Pass-Through Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Principal Balance as set forth in the Preliminary
Statement hereto.

                  "REMIC 3 Regular Interest LT3-M2": One of the separate
non-certificated beneficial ownership interests in REMIC 3 issued hereunder and
designated as a Regular Interest in REMIC 3. REMIC 3 Regular Interest LT3-M2
shall accrue interest at the related Uncertificated REMIC 3 Pass-Through Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Principal Balance as set forth in the Preliminary
Statement hereto.

                  "REMIC 3 Regular Interest LT3-P": One of the separate
non-certificated beneficial ownership interests in REMIC 3 issued hereunder and
designated as a Regular Interest in REMIC 3. REMIC 3 Regular Interest LT3-P
shall be entitled to any Prepayment Charges relating to the Mortgage Loans
collected by the Master Servicer, shall accrue interest at the related
Uncertificated REMIC 3 Pass-Through Rate in effect from time to time, and shall
be entitled to a distribution of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  "REMIC 3 Regular Interest LT3-S": One of the separate
non-certificated beneficial ownership interests in REMIC 3 issued hereunder and
designated as a Regular Interest in REMIC 3. REMIC 3 Regular Interest LT3-S
shall accrue interest at the related Uncertificated REMIC 3 Pass-Through Rate on
its Uncertificated Notional Amount outstanding from time to time.

                  "REMIC 3 Regular Interest LT3-ZZ": One of the separate
non-certificated beneficial ownership interests in REMIC 3 issued hereunder and
designated as a Regular Interest in REMIC 3. REMIC 3 Regular Interest LT3-ZZ
shall accrue interest at the related Uncertificated REMIC 3 Pass-Through Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Principal Balance as set forth in the Preliminary
Statement hereto.

                  "REMIC 3 Regular Interests": REMIC 3 Regular Interest LT3-AA,
REMIC 3 Regular Interest LT3- AF1, REMIC 3 Regular Interest LT3-AV1, REMIC 3
Regular Interest LT3-M1, REMIC 3 Regular Interest LT3-M2, REMIC 3 Regular
Interest LT3-S, REMIC 3 Regular Interest LT3-P and REMIC 3 Regular Interest
LT3-ZZ.

                  "REMIC 4": The segregated pool of assets consisting of all of
the REMIC 3 Regular Interests and conveyed in trust to the Trustee, for the
benefit of REMIC 4, as holder of the Regular Certificates and the Class R
Certificateholders, as holders of the Class R-4 Interest, pursuant to Article II
hereunder, and all amounts deposited therein, with respect to which a separate
REMIC election is to be made.

                  "REMIC Provisions": Provisions of the federal income tax law
relating to real estate mortgage investment conduits which appear at Section
860A through 860G of Subchapter M of Chapter 1 of the Code, and related

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provisions, and regulations and rulings promulgated thereunder, as the foregoing
may be in effect from time to time.

                  "REO Account": The account or accounts maintained by the
Master Servicer in respect of an REO Property pursuant to Section 3.13(b).

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

                  "REO Imputed Interest": As to any REO Property, for any
calendar month during which such REO Property was at any time part of the Trust
Fund, one month's interest at the applicable Net Mortgage Rate on the Principal
Balance of such REO Property (or, in the case of the first such calendar month,
of the related Mortgage Loan if appropriate) as of the close of business on the
Distribution Date in such calendar month.

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

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

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

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

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

                  "Responsible Officer": When used with respect to the Trustee,
any director, any vice president, any assistant vice president, any associate,
any assistant secretary or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated
officers and, with respect to a particular matter, to whom such matter is
referred because of such officer's knowledge of and familiarity with the
particular subject.

                  "S&P": Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc., or its successor in interest.

                  "Seller": Ameriquest Mortgage Company, a Delaware corporation
or its successor in interest, in its capacity as seller under the Mortgage Loan
Purchase Agreement.

                  "Servicing Advances": The customary and reasonable "out of
pocket" costs and expenses (including reasonable attorneys' fees and
disbursements) incurred by the Master Servicer in the performance of its
servicing obligations, including, but not limited to, the cost of (i) the
preservation, restoration, inspection and protection of the Mortgaged Property,
(ii) any enforcement or judicial proceedings, including foreclosures, (iii) the
management (including reasonable fees in connection therewith) and liquidation
of the REO Property and (iv) compliance with the obligations under Sections
3.01, 3.03, 3.08 and 3.13. The Master Servicer shall not be required to make any
Servicing Advance in

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respect of a Mortgage Loan or REO Property that, in the good faith business
judgment of the Master Servicer, would not be ultimately recoverable from
related Insurance Proceeds or Liquidation Proceeds on such Mortgage Loan or REO
Property as provided herein.

                  "Servicing Fee": With respect to each Mortgage Loan and for
any calendar month, an amount equal to one month's interest (or in the event of
any payment of interest which accompanies a Principal Prepayment in full made by
the Mortgagor during such calendar month, interest for the number of days
covered by such payment of interest) at the Servicing Fee Rate on the same
principal amount on which interest on such Mortgage Loan accrues for such
calendar month. A portion of such Servicing Fee may be retained by any
subservicer as permitted under Section 6.06 as its servicing compensation.

                  "Servicing Fee Rate": 0.50% per annum.

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

                  "Servicing Standard": Shall mean the standards set forth in
the first paragraph of Section 3.01.

                  "Servicing Transfer Costs": All reasonable costs and expenses
incurred by the Trustee in connection with the transfer of servicing from a
predecessor master servicer, including without limitation, any reasonable costs
or expenses associated with the complete transfer of all servicing data and the
completion, correction or manipulation of such servicing data as may be required
by the Trustee to correct any errors or insufficiencies in the servicing data or
otherwise to enable the Trustee (as successor Master Servicer) to service the
Mortgage Loans in accordance with this Agreement.

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

                  "Stated Principal Balance": With respect to any Mortgage Loan:
(a) as of any date of determination up to but not including the Distribution
Date on which the proceeds, if any, of a Liquidation Event with respect to such
Mortgage Loan would be distributed, the outstanding principal balance of such
Mortgage Loan as of the applicable Cut- off Date, as shown in the Mortgage Loan
Schedule, minus the sum of (i) the principal portion of each Monthly Payment due
on a Due Date subsequent to the Cut-off Date, to the extent received from the
Mortgagor or advanced by the Master Servicer and distributed pursuant to Section
4.01 on or before such date of determination, (ii) all Principal Prepayments
received after the Cut-off Date, to the extent distributed pursuant to Section
4.01 on or before such date of determination, (iii) all Liquidation Proceeds and
Insurance Proceeds applied by the Master Servicer as recoveries of principal, to
the extent distributed pursuant to Section 4.01 on or before such date of
determination, and (iv) any Realized Loss incurred with respect thereto as a
result of a Deficient Valuation made during or prior to the Due Period for the
most recent Distribution Date coinciding with or preceding such date of
determination; and (b) as of any date of determination coinciding with or
subsequent to the Distribution Date on which the proceeds, if any, of a
Liquidation Event with respect to such Mortgage Loan would be distributed, zero.
With respect to any REO Property: (a) as of any date of determination up to but
not including the Distribution Date on which the proceeds, if any, of a
Liquidation Event with respect to such REO Property would be distributed, an
amount (not less than zero) equal to the Stated Principal Balance of the related
Mortgage Loan as of the date on which such REO Property was acquired on behalf
of the Trust Fund, minus the aggregate amount of REO Principal Amortization in
respect of such REO Property for all previously ended calendar months, to the
extent distributed pursuant to Section 4.01 on or before such date of
determination; and (b) as of any date of determination coinciding with or
subsequent to the Distribution Date on which the proceeds, if any, of a
Liquidation Event with respect to such REO Property would be distributed, zero.

                  "Stepdown Date": The later to occur of (x) the Distribution
Date in July 2005 and (y) the first Distribution Date on which the Pool Balance
(after giving effect to the principal portion of Monthly Payments due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the

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<PAGE>

related Prepayment Period) is equal to or less than 50% of the Maximum
Collateral Amount.

                  "Subsequent Cut-off Date": With respect to any Subsequent
Mortgage Loans to be acquired by the Trust Fund on a Subsequent Transfer Date,
the Cut-off Date for those Subsequent Mortgage Loans, as determined pursuant to
the definition of Cut-off Date herein.

                  "Subsequent Group I Mortgage Loan": A Subsequent Mortgage Loan
to be included in Loan Group I.

                  "Subsequent Group II Mortgage Loan": A Subsequent Mortgage
Loan to be included in Loan Group II.

                  "Subsequent Mortgage Loan": A Mortgage Loan sold by the
Depositor to the Trust Fund pursuant to Section 2.08, such Mortgage Loan being
identified on the Mortgage Loan Schedule attached to a Subsequent Transfer
Instrument.

                  "Subsequent Mortgage Loan Interest": Any amount constituting a
monthly payment of interest received or advanced at the Net Mortgage Rate
(adjusted for payments of the Guarantee Fee and the Trustee Fee) with respect to
(i) a Subsequent Group I Mortgage Loan during the Due Periods relating to the
first two Distribution Dates in excess of 4.8906% per annum and (ii) a
Subsequent Group II Mortgage Loan during the Due Periods relating to the first
two Distribution Dates in excess of 4.8906% per annum. The Subsequent Mortgage
Loan Interest shall be distributable to the Class CE Certificates. The
Subsequent Mortgage Loan Interest shall not be an asset of any REMIC.

                  "Subsequent Mortgage Loan Purchase Agreement": The agreement
among the Depositor and the Seller, regarding the transfer of the Subsequent
Mortgage Loans by the Seller to the Depositor.

                  "Subsequent Transfer Date": With respect to each Subsequent
Transfer Instrument, the date on which the related Subsequent Mortgage Loans are
sold to the Trust Fund.

                  "Subsequent Transfer Instrument": Each Subsequent Transfer
Instrument, dated as of a Subsequent Transfer Date, executed by the Trustee and
the Depositor substantially in the form attached hereto as Exhibit S, by which
Subsequent Mortgage Loans are transferred to the Trust Fund.

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

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

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

                  "Terminated REMIC":  As defined in Section 10.02.

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

                  "Terminator":  As defined in Section 10.01.

                  "Three-Month Rolling Delinquency Percentage": With respect to
any Distribution Date, the fraction, expressed as a percentage, the numerator of
which is (x) the sum (without duplication) of the aggregate of the Principal

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Balances of all Mortgage Loans that are (i) 60 or more days Delinquent, (ii) in
bankruptcy and 60 or more days Delinquent, (iii) in foreclosure and 60 or more
days Delinquent or (iv) REO Properties, and the denominator of which is (y) the
aggregate of the Principal Balances of the Mortgage Loans, in the case of both
(x) and (y), as of the close of business on the last Business Day of each of the
three most recent calendar months.

                  "Trigger Event": A Trigger Event has occurred with respect to
any Distribution Date if (i) the Delinquency Percentage exceeds 16.00% or (ii)
the percentage equivalent of a fraction, the numerator of which is the aggregate
amount of Realized Losses incurred from the Cut-off Date to the last day of the
related Due Period and the denominator of which is the aggregate Stated
Principal Balance of the Initial Mortgage Loans as of the Cut-off Date and the
Original Pre-Funded Amounts, exceeds the applicable percentages set forth below
with respect to such Distribution Date:

    DISTRIBUTION DATE OCCURRING IN              PERCENTAGE
    ------------------------------              ----------

January 2003 through December 2003                 1.50%
January 2004 through December 2004                 2.25%
January 2005 through December 2005                 2.85%
January 2006 through December 2006                 3.60%
January 2007 and thereafter                        4.25%

                  "Trust Fund": All of the assets of Ameriquest Mortgage
Securities Inc., Series 2002-D, which is the trust created hereunder consisting
of REMIC 1, REMIC 2, REMIC 3, REMIC 4 and the Net WAC Rate Carryover Reserve
Account, the Excess Net WAC Rate Reserve Account, the Pre- Funding Accounts, the
Trust Fund's rights in the Interest Coverage Accounts, the Master Servicer
Prepayment Charge Payment Amounts and any Subsequent Mortgage Loan Interest.

                  "Trust REMIC": Any of REMIC 1, REMIC 2, REMIC 3 and REMIC 4.

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

                  "Trustee Fee": The amount payable to the Trustee on each
Distribution Date pursuant to Section 8.05 as compensation for all services
rendered by it in the execution of the trust hereby created and in the exercise
and performance of any of the powers and duties of the Trustee hereunder, which
amount shall equal one-twelfth of the product of (i) the Trustee Fee Rate,
multiplied by (ii) the aggregate Principal Balance of the Mortgage Loans and any
REO Properties and any amount in the Pre-Funding Accounts as of the second
preceding Due Date (or, in the case of the first Distribution Date, as of the
Cut-off Date), and (iii) the Trustee's entitlement to all income from the
investment of funds in the Distribution Account.

                  "Trustee Fee Rate": 0.0015% per annum.

                  "Trustee Remittance Report":  As defined in Section 4.05(a).

                  "Trustee Reporting Date": With respect to any Distribution
Date, the fifth Business Day prior to such Distribution Date.

                  "Uncertificated Accrued Interest": With respect to each
Uncertificated REMIC Regular Interest on each Distribution Date, an amount equal
to one month's interest at the related Uncertificated Pass-Through Rate on the
Uncertificated Principal Balance or Uncertificated Notional Amount of such
Uncertificated REMIC Regular Interest. In each case, Uncertificated Accrued
Interest will be reduced by the amount of all shortfalls in respect of interest
deemed

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<PAGE>

allocated to the related Uncertificated REMIC Regular Interest pursuant to
Section 1.03 or Section 4.09.

                  "Uncertificated Notional Amount": With respect to REMIC 3
Regular Interest LT3-S and any date of determination, the Uncertificated
Principal Balance of REMIC 2 Regular Interest LT2-B for such Distribution Date.

                  "Uncertificated Pass-Through Rate": The Uncertificated REMIC 1
Pass-Through Rate, the Uncertificated REMIC 2 Pass-Through Rate and the
Undercertificated REMIC 3 Pass-Through Rate.

                  "Uncertificated Principal Balance": With respect to each
related Uncertificated REMIC Regular Interest, the amount of such Uncertificated
REMIC Regular Interest outstanding as of any date of determination. As of the
Closing Date, the Uncertificated Principal Balance of each Uncertificated REMIC
Regular Interest shall equal the amount set forth in the Preliminary Statement
hereto as its initial Uncertificated Principal Balance. On each Distribution
Date, the Uncertificated Principal Balance of each Uncertificated REMIC Regular
Interest shall be reduced by all distributions of principal made on such
Uncertificated REMIC Regular Interest on such Distribution Date pursuant to
Section 4.08 and, if and to the extent necessary and appropriate, shall be
further reduced on such Distribution Date by Realized Losses as provided in
Section 4.09, and the Uncertificated Principal Balances of REMIC 3 Regular
Interest LT3-ZZ shall be increased by interest deferrals as provided in Section
4.08. The Uncertificated Principal Balance of each Uncertificated REMIC Regular
Interest that has an Uncertificated Principal Balance shall never be less than
zero.

                  "Uncertificated REMIC Regular Interests": The REMIC 1 Regular
Interests, the REMIC 2 Regular Interests and the REMIC 3 Regular Interests.

                  "Uncertificated REMIC 1 Pass-Through Rate": With respect to
REMIC 1 Regular Interest LT1-A, REMIC 1 Regular Interest LT1-B and REMIC 1
Regular Interest LT1-P, the weighted average of the Adjusted Net Mortgage Rates
(less the Guarantee Fee Rate) of the Initial Group I Mortgage Loans for such
Distribution Date; provided, however, with respect to REMIC 1 Regular Interest
LT1-B, (i) for the first two Distribution Dates, 4.8906% per annum, and (ii) for
each Distribution Date thereafter, the weighted average of the Adjusted Net
Mortgage Rates (less the Guarantee Fee Rate) of the Group I Mortgage Loans for
such Distribution Date. With respect to REMIC 1 Regular Interests LT1-C and
LT1-D, the weighted average of the Adjusted Net Mortgage Rates (less the
Guarantee Fee Rate) of the Initial Group II Mortgage Loans for such Distribution
Date; provided, however, with respect to REMIC 1 Regular Interest LT2-D, (i) for
the first two Distribution Dates, 4.8906% per annum and (ii) for each
Distribution Date thereafter, the weighted average of the Adjusted Net Mortgage
Rates of the Group II Mortgage Loans for such Distribution Date.

                  "Uncertificated REMIC 2 Pass-Through Rate": With respect to
the REMIC 2 Regular Interests, the weighted average of the Uncertificated REMIC
1 Pass-Through Rates on the REMIC 1 Regular Interests, weighted on the basis of
their respective Uncertificated Principal Balances.

                  "Uncertificated REMIC 3 Pass-Through Rate": With respect to
the REMIC 3 Regular Interests (other than REMIC 3 Regular Interest LT3-S), the
Pool Net WAC Rate. With respect to REMIC 3 Regular Interests LT3-S for the 1st
Distribution Date through the 30th Distribution Date, the lesser of (x) 6.50%
per annum and (y) the weighted average of the REMIC 2 Regular Interests,
weighted on the basis of their respective Uncertificated Principal Balances, and
0.00% thereafter.

                  "United States Person" or "U.S. Person": A citizen or resident
of the United States, a corporation, partnership (or other entity treated as a
corporation or partnership for United States federal income tax purposes)
created or organized in, or under the laws of, the United States, any state
thereof, or the District of Columbia (except in the case of a partnership, to
the extent provided in Treasury regulations) provided that, for purposes solely
of the restrictions on the transfer of Class R Certificates, no partnership or
other entity treated as a partnership for United States federal income tax
purposes shall be treated as a United States Person unless all persons that own
an interest in such partnership either directly or through any entity that is
not a corporation for United States federal income tax purposes are required by
the applicable operative agreement to be United States Persons, or an estate the
income of which from sources without the United States is includible in gross
income for United States federal income tax purposes regardless of its
connection with the conduct of a trade or business within the United States, or
a trust if a court within the United States is able to

                                       36

<PAGE>

exercise primary supervision over the administration of the trust and one or
more United States persons have authority to control all substantial decisions
of the trust. The term "United States" shall have the meaning set forth in
Section 7701 of the Code or successor provisions.

                  "Unpaid Interest Shortfall Amount": With respect to any Class
of Class A Certificates, any Class of Mezzanine Certificates, the Class S
Certificates and the Class CE Certificates and (i) the first Distribution Date,
zero, and (ii) any Distribution Date after the first Distribution Date, the
amount, if any, by which (a) the sum of (1) the Monthly Interest Distributable
Amount for such Class for the immediately preceding Distribution Date and (2)
the outstanding Unpaid Interest Shortfall Amount, if any, for such Class for
such preceding Distribution Date exceeds (b) the aggregate amount distributed on
such Class in respect of interest pursuant to clause (a) of this definition on
such preceding Distribution Date, plus interest on the amount of interest due
but not distributed on the Certificates of such Class on such preceding
Distribution Date, to the extent permitted by law, at the Pass-Through Rate for
such Class for the related Accrual Period. Because the Monthly Interest
Distributable Amount for any Class of Certificates, by definition, is limited to
interest on such Class at the Pass-Through Rate thereon, any Net WAC Rate
Carryover Amount, by definition, will not be included within any Unpaid Interest
Shortfall Amount with respect to the Class A Certificates, the Mezzanine
Certificates or the Class S Certificates.

                  "Value": With respect to any Mortgage Loan, and the related
Mortgaged Property, the lesser of:

                  (i) the lesser of (a) the value thereof as determined by an
         appraisal made for the originator of the Mortgage Loan at the time of
         origination of the Mortgage Loan by an appraiser who met the minimum
         requirements of Freddie Mac, and (b) the value thereof as determined by
         an internal prefunding review appraisal conducted by the Seller (if
         applicable) in the event any such internal prefunding review appraisal
         determines an appraised value more than 10% lower than the value
         thereof, as determined by the appraisal referred to in clause (i)(a)
         above; and

                  (ii) the purchase price paid for the related Mortgaged
         Property by the Mortgagor with the proceeds of the Mortgage Loan;
         provided, however, that in the case of a refinanced Mortgage Loan
         (which is a Mortgage Loan the proceeds of which were not used to
         purchase the related Mortgaged Property) or a Mortgage Loan originated
         in connection with a "lease option purchase" if the "lease option
         purchase price" was set 12 months or more prior to origination, such
         value of the Mortgaged Property is based solely upon clause (i) above.

                  "Voting Rights": The portion of the voting rights of all of
the Certificates which is allocated to any Certificate. At all times the Class A
Certificates, the Mezzanine Certificates and the Class CE Certificates shall
have 97% of the Voting Rights (allocated as follows: 66.67% to the Holders of
the Class A Certificates, 32.33% to the Holders of the Mezzanine Certificates
and 1.00% to the Holders of the Class CE Certificates), the Class S Certificates
shall have 1% of the Voting Rights, the Class P Certificates shall have 1% of
the Voting Rights and the Class R Certificates shall have 1% of the Voting
Rights. The Voting Rights allocated to any Class of Certificates (other than the
Class P Certificates and the Class R Certificates) shall be allocated among all
Holders of each such Class in proportion to the outstanding Certificate
Principal Balance or Notional Amount of such Certificates and the Voting Rights
allocated to the Class P Certificates and the Class R Certificates shall be
allocated among all Holders of each such Class in proportion to such Holders'
respective Percentage Interest; provided, however that when none of the Regular
Certificates are outstanding, 100% of the Voting Rights shall be allocated among
Holders of the Class R Certificates in accordance with such Holders' respective
Percentage Interests in the Certificates of such Class. Notwithstanding any of
the foregoing, on any date on which any Guaranteed Certificates are outstanding
or any amounts are owed the Guarantor under this Agreement, all of the Voting
Rights allocated to all Classes of Certificates shall be vested in the
Guarantor.

                  "Written Order to Authenticate": A written order by which the
Depositor directs the Trustee to issue the Certificates.

                  SECTION 1.02.     Accounting.

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<PAGE>

                  Unless otherwise specified herein, for the purpose of any
definition or calculation, whenever amounts are required to be netted,
subtracted or added or any distributions are taken into account such definition
or calculation and any related definitions or calculations shall be determined
without duplication of such functions. References to "unscheduled collections of
principal" in the parenthetical "(after giving effect to the principal portion
of Monthly Payments due during the related Due Period, to the extent received or
advanced, and unscheduled collections of principal received during the related
Prepayment Period)", which appears in the definitions of Guaranteed Principal
Distribution Amount, Overcollateralized Amount and Overcollateralization
Deficiency Amount and in Section 4.03, shall not be construed to include "pay
aheads" to the extent that such "pay aheads" are Monthly Payments due during a
succeeding Due Period.

                  SECTION 1.03.     Allocation of Certain Shortfalls.

                  (a) For purposes of calculating the amount of the Monthly
Interest Distributable Amount and the amount of the Interest Distributable
Amount for each of the Class A Certificates, the Mezzanine Certificates, the
Class S Certificates and the Class CE Certificates for any Distribution Date,
(1) the aggregate amount of any Prepayment Interest Shortfalls (to the extent
not covered by payments by the Master Servicer pursuant to Section 4.04(e)) and
any Relief Act Interest Shortfalls incurred in respect of the Mortgage Loans for
any Distribution Date shall be allocated first, among the Class CE Certificates
on a PRO RATA basis based on and to the extent of one month's interest at the
then applicable Pass-Through Rate on the Notional Amount of each such
Certificate and, thereafter, among the Class A Certificates, the Mezzanine
Certificates and the Class S Certificates on a PRO RATA basis based on, and to
the extent of, one month's interest at the then applicable respective
Pass-Through Rate on the respective Certificate Principal Balance or Notional
Amount of each such Certificate and (2) the aggregate amount of any Realized
Losses incurred for any Distribution Date shall be allocated among the Class CE
Certificates on a PRO RATA basis based on, and to the extent of, one month's
interest at the then applicable Pass-Through Rate on the Notional Amount of each
such Certificate.

                  (b) For purposes of calculating the amount of Uncertificated
Accrued Interest for the REMIC 1 Regular Interests for any Distribution Date,
the aggregate amount of any Prepayment Interest Shortfalls (to the extent not
covered by payments by the Master Servicer pursuant to Section 4.04(e)) and any
Relief Act Interest Shortfalls incurred in respect of the Mortgage Loans for any
Distribution Date shall be allocated (i) with respect to the Group I Mortgage
Loans, to REMIC 1 Regular Interest LT1-A and REMIC 1 Regular Interest LT1-B, in
each case to the extent of one month's interest at the then applicable
respective Uncertificated REMIC 1 Pass-Through Rate on the respective
Uncertificated Principal Balance of each such Uncertificated REMIC 1 Interest;
provided, however, with respect to the first two Distribution Dates, such
amounts relating to the Initial Group I Mortgage Loans shall be allocated to
REMIC 1 Regular Interest LT1-A and such amounts relating to the Subsequent Group
I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1-B and (ii)
with respect to the Group II Mortgage Loans, to REMIC 1 Regular Interest LT1-C
and REMIC 1 Regular Interest LT1-D, in each case to the extent of one month's
interest at the then applicable respective Uncertificated REMIC 1 Pass-Through
Rate on the respective Uncertificated Principal Balance of each such
Uncertificated REMIC 1 Interest; provided, however, with respect to the first
two Distribution Dates, such amounts relating to the Initial Group II Mortgage
Loans shall be allocated to REMIC 1 Regular Interest LT1-C and such amounts
relating to the Subsequent Group II Mortgage Loans shall be allocated to REMIC 1
Regular Interest LT1-D.

                  (c) For purposes of calculating the amount of Uncertificated
Accrued Interest for the REMIC 2 Regular Interests for any Distribution Date,
the aggregate amount of any Prepayment Interest Shortfalls (to the extent not
covered by payments by the Master Servicer pursuant to Section 4.04(e)) and any
Relief Act Interest Shortfalls incurred in respect of the Mortgage Loans for any
Distribution Date shall be allocated first to REMIC 2 Regular Interest LT2-A and
then to REMIC 2 Regular Interest LT2-B, in each case to the extent of one
month's interest at the then applicable respective Uncertificated REMIC 2
Pass-Through Rate on the respective Uncertificated Principal Balance of each
such Uncertificated REMIC 2 Interest.

                  (d) For purposes of calculating the amount of Uncertificated
Accrued Interest for the REMIC 3 Regular Interests for any Distribution Date,
the aggregate amount of any Prepayment Interest Shortfalls (to the extent not
covered by payments by the Master Servicer pursuant to Section 4.04(e)) and any
Relief Act Interest Shortfalls incurred in respect of the Mortgage Loans for any
Distribution Date shall be allocated first, to Uncertificated Accrued

                                       38

<PAGE>

Interest payable to REMIC 3 Regular Interest LT3-AA and REMIC 3 Regular Interest
LT3-ZZ up to an aggregate amount equal to the REMIC 3 Interest Loss Allocation
Amount, 98% and 2%, respectively, and thereafter among REMIC 3 Regular Interest
LT3-AF1, REMIC 3 Regular Interest LT3-AV1, REMIC 3 Regular Interest LT3-M1,
REMIC 3 Regular Interest LT3-M2 and REMIC 3 Regular Interest LT3-ZZ PRO RATA
based on, and to the extent of, one month's interest at the then applicable
respective Uncertificated REMIC 3 Pass-Through Rate on the respective
Uncertificated Principal Balance of each such REMIC 3 Regular Interest.

                  SECTION 1.04.     Rights of the NIMS Insurer.

                  Each of the rights of the NIMS Insurer set forth in this
Agreement shall exist so long as (i) the NIMS Insurer has undertaken to
guarantee certain payments of notes issued pursuant to an Indenture and (ii) any
series of notes issued pursuant to an Indenture remain outstanding or the NIMS
Insurer is owed amounts in respect of its guarantee of payment on such notes;
provided, however, the NIMS Insurer shall not have any rights hereunder, during
the period of time, if any, that (i) the NIMS Insurer has not undertaken to
guarantee certain payments of notes issued pursuant to the Indenture or (ii) any
default has occurred and is continuing under the insurance policy issued by the
NIMS Insurer with respect to such notes. If a NIMS Insurer is appointed
following the Closing Date, the Trustee shall give written notice thereof to the
Guarantor within five (5) Business Days after such appointment. The NIMS Insurer
shall not have any rights hereunder other than the rights set forth in this
Agreement.

                                       39

<PAGE>

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                        ORIGINAL ISSUANCE OF CERTIFICATES

                  SECTION 2.01.     Conveyance of Mortgage Loans.

                  The Depositor, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey in trust to
the Trustee without recourse for the benefit of the Certificateholders all the
right, title and interest of the Depositor, including any security interest
therein for the benefit of the Depositor, in and to (i) each Mortgage Loan
identified on the Mortgage Loan Schedule, including the related Cut-off Date
Principal Balance, all interest accruing thereon on and after the Cut-off Date
and all collections in respect of interest and principal due after the Cut-off
Date; (ii) property which secured each such Mortgage Loan and which has been
acquired by foreclosure or deed in lieu of foreclosure; (iii) its interest in
any insurance policies (including the PMI Policy) in respect of the Mortgage
Loans; (iv) the rights of the Depositor under the Mortgage Loan Purchase
Agreement; (v) the Original Pre- Funded Amounts; (vii) all other assets included
or to be included in the Trust Fund; and (viii) all proceeds of any of the
foregoing. Such assignment includes all interest and principal due and received
by the Depositor or the Master Servicer after the Cut-off Date with respect to
the Mortgage Loans. The Depositor does hereby deliver to, and deposit with the
Trustee, executed copies of the Mortgage Loan Purchase Agreement and the PMI
Policy (with copies to the Guarantor), the Original Pre-Funded Amounts, the
required deposit for the Interest Coverage Accounts and the required deposit for
the Net WAC Rate Carryover Account, for the uses and purposes set forth herein,
and the Trustee hereby acknowledges receipt of the same.

                  In connection with such transfer and assignment, the Depositor
does hereby deliver to, and deposit with the Trustee, or its designated agent
(the "Custodian"), the following documents or instruments with respect to each
Initial Mortgage Loan so transferred and assigned and the Depositor shall, in
accordance with Section 2.08, deliver or cause to be delivered to, and deposited
with the Trustee or the Custodian with respect to each Subsequent Mortgage Loan
the following documents or instruments (each, a "Mortgage File"):

                  (i) the original Mortgage Note, bearing all intervening
         endorsements showing a complete chain of endorsement from the
         originator to the last endorsee, endorsed either (A) in blank, without
         recourse or (B) in the following form: "Pay to the order of Deutsche
         Bank National Trust Company, as Trustee for registered Holders of
         Ameriquest Mortgage Securities Inc., Series 2002-D, without recourse,"
         or with respect to any lost Mortgage Note, an original Lost Note
         Affidavit; provided, however, that such substitutions of Lost Note
         Affidavits for original Mortgage Notes may occur only with respect to
         Mortgage Loans, the aggregate Cut-off Date Principal Balance or
         Subsequent Cut-off Date Principal Balance, as applicable, of which is
         less than or equal to 1.00% of the Pool Balance as of the Cut-off Date
         or Subsequent Cut-off Date, as applicable;

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

                  (iii) an original Assignment of the Mortgage assigned either
         (A) in blank, without recourse, or (B) to "Deutsche Bank National Trust
         Company, as Trustee for registered Holders of Ameriquest Mortgage
         Securities Inc., Series 2002-D, without recourse";

                  (iv) an original of any intervening Assignment(s) of Mortgage
         showing a complete chain of Assignments from the originator to the last
         endorsee with evidence of recording thereon, or the original unrecorded
         intervening Assignment(s);

                  (v) the original or a certified copy of lender's title
         insurance policy or an attorney's opinion of

                                       40

<PAGE>

         title or similar guarantee of title acceptable to mortgage lenders
         generally in the jurisdiction where the Mortgaged Property is located,
         or in the event such original title policy is unavailable, a written
         commitment or uniform binder or preliminary report of title issued by
         the title insurance or escrow company; and

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

                  If any of the documents referred to in Section 2.01(ii), (iii)
or (iv) above has as of the Closing Date (or the related Subsequent Transfer
Date in the case of Subsequent Mortgage Loans) been submitted for recording but
either (x) has not been returned from the applicable public recording office or
(y) has been lost or such public recording office has retained the original of
such document, the obligations of the Depositor to deliver such documents shall
be deemed to be satisfied upon (1) delivery to the Trustee or the Custodian, on
behalf of the Trustee, a copy of each such document certified by the Seller in
the case of (x) above or the applicable public recording office in the case of
(y) above to be a true and complete copy of the original that was submitted for
recording and (2) if such copy is certified by the Seller, delivery to the
Trustee or the Custodian, on behalf of the Trustee, promptly upon receipt
thereof of either the original or a copy of such document certified by the
applicable public recording office to be a true and complete copy of the
original. If the original lender's title insurance policy, or a certified copy
thereof, was not delivered pursuant to Section 2.01(v) above, the Seller shall
deliver or cause to be delivered to the Trustee or the Custodian, on behalf of
the Trustee, promptly following receipt thereof, the original lender's title
insurance policy. The Seller and the Depositor shall deliver or cause to be
delivered to the Trustee or the Custodian, on behalf of the Trustee, promptly
upon receipt thereof any other documents constituting a part of a Mortgage File
received with respect to any Mortgage Loan, including, but not limited to, any
original documents evidencing an assumption or modification of any Mortgage
Loan.

                  The Master Servicer (in its capacity as Seller) shall promptly
(and in no event later than thirty (30) Business Days, subject to extension upon
a mutual agreement among the Master Servicer, the Trustee and the Guarantor,
following the later of (i) the Closing Date (or the related Subsequent Transfer
Date, with respect to the Subsequent Mortgage Loans), (ii) the date on which the
Master Servicer receives the original Assignment from the Custodian and (iii)
the date on which the Master Servicer receives the related Mortgage recordation
information from the applicable recorder's office) submit or cause to be
submitted for recording, at no expense to the Trust Fund or the Trustee, in the
appropriate office for real property records, each Assignment referred to in
Sections 2.01(iii) and (iv) above and shall execute each original Assignment
referred to in section 2.01(iii) above in the following form: "Deutsche Bank
National Trust Company, as Trustee for registered Holders of Ameriquest Mortgage
Securities Inc., Series 2002-D, without recourse." In the event that any such
Assignment is lost or returned unrecorded because of a defect therein, the
Master Servicer (in its capacity as Seller) shall promptly prepare or cause to
be prepared a substitute Assignment or cure or cause to be cured such defect, as
the case may be, and thereafter cause each such Assignment to be duly recorded.

                  Notwithstanding the foregoing, however, for administrative
convenience and facilitation of servicing and to reduce closing costs, the
Assignments of the Mortgages shall not be required to be completed and submitted
for recording with respect to any Mortgage Loan only if the NIMS Insurer, the
Guarantor, the Trustee and each Rating Agency has received an Opinion of
Counsel, satisfactory in form and substance to the Trustee, the NIMS Insurer and
the Guarantor on or before the Closing Date, to the effect that the recordation
of such Assignment is not necessary to protect the Trustee's interest in the
related Mortgage Loan; provided, further, however, notwithstanding the delivery
of any Opinion of Counsel, each Assignment shall be submitted for recording by
the Seller in the manner described above, at no expense to the Trust Fund or
Trustee, upon the earliest to occur of: (i) direction by Holders of Certificates
entitled to at least 25% of the Voting Rights, (ii) the occurrence of a Master
Servicer Event of Termination, (iii) the occurrence of a bankruptcy, insolvency
or foreclosure relating to the Seller, (iv) the occurrence of a servicing
transfer as described in Section 7.02 hereof and (v) if the Seller is not the
Master Servicer and with respect to any one Assignment, the occurrence of a
bankruptcy of the Mortgagor under the related Mortgage or a foreclosure of the
related Mortgage. If the Master Servicer (in its capacity as Seller) defaults in
its obligation to pay the cost of recording the Assignments, such expense will
be paid by the Master Servicer, and if the Master Servicer defaults in its
obligation to pay the cost of recording the Assignments, such expense will be
paid by the Trustee (and such default, if Ameriquest Mortgage Company is the
Master Servicer, will constitute a Master Servicer Event of Termination as set
forth in Section 7.01(a)(ii)). If such expense is paid by the Master Servicer
(if the Master Servicer is not Ameriquest Mortgage Company or its successors,

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<PAGE>

assigns or affiliates), such expense shall be reimbursable to the Master
Servicer from amounts on deposit in the Collection Account. If such expense is
paid by the Trustee, such expense shall be advanced or reimbursable to the
Trustee from amounts on deposit in the Collection Account or the Distribution
Account.

                  If the Master Servicer (in its capacity as Seller) shall not
have caused all such Assignments to be recorded in accordance with preceding
paragraph, the Master Servicer shall deliver to the Trustee, with regard to
those Mortgage Loans without recorded Assignments, a report containing the
Borrower's name, loan number, address and mortgage recordation information to
the extent received. Such report will be delivered to the Trustee, commencing in
March 2003 and continuing every 60 days thereafter until all such Assignments
have been recorded or all Mortgage recordation information regarding such
Mortgage Loans have been received. The Master Servicer (in its capacity as
Seller) shall furnish the Trustee, or its designated agent, with a copy of each
Assignment submitted for recording.

                  In the event that any Mortgage Note is endorsed in blank as of
the Closing Date in the case of Initial Mortgage Loans or the applicable
Subsequent Transfer Date in the case of Subsequent Mortgage Loans, promptly
following the Closing Date in the case of Initial Mortgage Loans or the
applicable Subsequent Transfer Date in the case of Subsequent Mortgage Loans and
in no event later than 45 days after the Closing Date in the case of Initial
Mortgage Loans or the applicable Subsequent Transfer Date in the case of
Subsequent Mortgage Loans, the Seller shall cause to be completed such
endorsements "Pay to the order of Deutsche Bank National Trust Company, as
Trustee for registered Holders of Ameriquest Mortgage Securities Inc., Series
2002-D, without recourse."

                  The Master Servicer shall forward to the Custodian original
documents evidencing an assumption, modification, consolidation or extension of
any Mortgage Loan entered into in accordance with this Agreement within two
weeks of their execution; provided, however, that the Master Servicer shall
provide the Custodian with a certified true copy of any such document submitted
for recordation within two weeks of its execution, and shall provide the
original of any document submitted for recordation or a copy of such document
certified by the appropriate public recording office to be a true and complete
copy of the original within 270 days of its submission for recordation. In the
event that the Master Servicer cannot provide a copy of such document certified
by the public recording office within such 270 day period, the Master Servicer
shall deliver to the Custodian, within such 270 day period, an Officers'
Certificate of the Master Servicer with respect to any Mortgage Loans for which
a copy of such document certified by the public recording office is unavailable
which shall (A) identify the recorded document, (B) state that the recorded
document has not been delivered to the Custodian due solely to a delay caused by
the public recording office, (C) state the amount of time generally required by
the applicable recording office to record and return a document submitted for
recordation, if known, and (D) specify the date the applicable recorded document
is expected to be delivered to the Custodian, and, upon receipt of a copy of
such document certified by the public recording office, the Master Servicer
shall immediately deliver such document to the Custodian. In the event the
appropriate public recording office will not certify as to the accuracy of such
document, the Master Servicer shall deliver a copy of such document certified by
an officer of the Master Servicer to be a true and complete copy of the original
to the Custodian.

                  SECTION 2.02.     Acceptance of REMIC 1 by the Trustee.

                  Subject to the provisions of Section 2.01 and subject to any
exceptions noted on the exception report described in the next paragraph below,
the Trustee acknowledges the receipt (or, with respect to Mortgage Loans subject
to a custodial agreement, receipt by the respective Custodian the duly appointed
agent of the Trustee), of the documents referred to in Section 2.01 (other than
such documents described in Section 2.01(vi) unless applicable) above and all
interests and all other assets included in the definition of "Trust Fund" and
declares that it, or such Custodian as its agent, holds and will hold such
documents and the other documents delivered to it constituting a Mortgage File,
and that it holds or will hold all such assets and such other assets included in
the definitions of "REMIC 1" in trust for the exclusive use and benefit of all
present and future Certificateholders and the Guarantor.

                  The Trustee agrees, for the benefit of the Guarantor and the
Certificateholders, to review (or cause a Custodian on its behalf to review)
each Mortgage Note on or before the Closing Date (or the related Subsequent
Transfer Date, with respect to the Subsequent Mortgage Loans) and to certify in
substantially the form attached hereto as Exhibit D-3 (or cause a Custodian to
so certify) that, as to each Mortgage Loan listed in the Mortgage Loan Schedule
(other than

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<PAGE>

any Mortgage Loan paid in full or any Mortgage Loan specifically identified in
the exception report annexed thereto as not being covered by such
certification), the Trustee is in possession of the Mortgage Note. Within 45
days after the Closing Date (or, in the case of each Subsequent Mortgage Loan,
after the applicable Subsequent Transfer Date or, with respect to any document
delivered after the Startup Day, within 45 days of receipt thereof), the Trustee
agrees, for the benefit of the Guarantor and the Certificateholders, to review
(or cause a Custodian on its behalf to review) each Mortgage File and to certify
to the Depositor, the Guarantor, the NIMS Insurer and the Master Servicer
substantially in the form attached hereto as Exhibit D-1 that, as to each
Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan
paid in full or any Mortgage Loan specifically identified in the exception
report annexed thereto as not being covered by such certification), (i) all
documents constituting part of such Mortgage File (other than such documents
described in Section 2.01(vi), unless applicable) required to be delivered to it
pursuant to this Agreement are in its possession, (ii) such documents have been
reviewed by it or the Custodian and are not mutilated, torn or defaced unless
initialed by the related Mortgagor and relate to such Mortgage Loan and (iii)
based on its or the Custodian's examination and only as to the foregoing, the
information set forth in the Mortgage Loan Schedule that corresponds to items
(1), (2), (3), (7), (8), (9), (10), (18) and (20) of the Mortgage Loan Schedule
accurately reflects information set forth in the Mortgage File. It is herein
acknowledged that, in conducting such review, the Trustee (or the Custodian, as
applicable) is under no duty or obligation to (i) inspect, review or examine any
such documents, instruments, certificates or other papers to determine whether
they are genuine, enforceable, or appropriate for the represented purpose or
that they have actually been recorded or that they are other than what they
purport to be on their face or (ii) to determine whether any Mortgage File
should include any of the documents specified in clause (vi) of Section 2.01.

                  Prior to the date that is 180 days following the date of this
Agreement, the Trustee shall deliver (or cause the Custodian to deliver) to the
Depositor, the Guarantor, the NIMS Insurer and the Master Servicer a final
certification in the form annexed hereto as Exhibit D-2 evidencing the
completeness of the Mortgage Files, with any applicable exceptions noted
thereon, with respect to all of the Initial Mortgage Loans and the Subsequent
Mortgage Loans.

                  If in the process of reviewing the Mortgage Files and making
or preparing, as the case may be, the certifications referred to above, the
Trustee (or the Custodian, as applicable) finds any document or documents
constituting a part of a Mortgage File to be missing, mutilated, damaged, torn
or defaced or does not conform to the requirements identified above, at the
conclusion of its review the Trustee (or a Custodian on behalf of the Trustee)
shall so notify the Seller, the Depositor, the Guarantor, the NIMS Insurer and
the Master Servicer. In addition, upon the discovery by the Seller, the
Depositor, the Guarantor, the NIMS Insurer or the Master Servicer (or upon
receipt by the Trustee of written notification of such breach) of a breach of
any of the representations and warranties made by the Seller in the Mortgage
Loan Purchase Agreement in respect of any Mortgage Loan which materially
adversely affects such Mortgage Loan or the interests of the related
Certificateholders in such Mortgage Loan, the party discovering such breach
shall give prompt written notice to the other parties to this Agreement.

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

                  SECTION 2.03.     Repurchase or Substitution of Mortgage Loans
                                    by the Seller; Payment of Master Servicer
                                    Prepayment Charge Payment Amounts.

                  (a) Upon discovery or receipt of written notice of any
materially defective document in, or that a document is missing from, a Mortgage
File or of the breach by the Seller of any representation, warranty or covenant
under the Mortgage Loan Purchase Agreement or in Section 2.04 in respect of any
Mortgage Loan which materially

                                       43

<PAGE>

adversely affects the value of such Mortgage Loan or the interest therein of the
Certificateholders or the Guarantor (it being understood that with respect to
the representations and warranties set forth in (xxxix) through (xlii) and (lvi)
of Exhibit A to the Mortgage Loan Purchase Agreement, a breach of any such
representation shall be deemed to materially adversely affect the interests of
the Guarantor), the Trustee shall promptly notify the Seller, the Guarantor, the
NIMS Insurer and the Master Servicer of such defect, missing document or breach
and request that the Seller deliver such missing document or cure such defect or
breach within 90 days from the date the Seller was notified of such missing
document, defect or breach, and if the Seller does not deliver such missing
document or cure such defect or breach in all material respects during such
period, the Trustee shall enforce the Seller's obligation under the Mortgage
Loan Purchase Agreement and cause the Seller to repurchase such Mortgage Loan
from the Trust Fund at the Purchase Price on or prior to the Determination Date
following the expiration of such 90 day period (subject to Section 2.03(d));
provided, however, that, in connection with any such breach that could not
reasonably have been cured within such 90 day period, if the Seller shall have
commenced to cure such breach within such 90 day period, the Seller shall be
permitted to proceed thereafter diligently and expeditiously to cure the same
within the additional period provided under the Mortgage Loan Purchase
Agreement. The Purchase Price for the repurchased Mortgage Loan shall be
delivered or caused to be delivered by the Seller to the Master Servicer for
deposit in the Collection Account, and the Trustee, upon receipt of written
certification from the Master Servicer of such deposit, shall release to the
Seller the related Mortgage File and shall execute and deliver such instruments
of transfer or assignment, in each case without recourse, as the Seller shall
furnish to it and as shall be necessary to vest in the Seller any Mortgage Loan
released pursuant hereto and the Trustee shall have no further responsibility
with regard to such Mortgage File (it being understood that the Trustee shall
have no responsibility for determining the sufficiency of such assignment for
its intended purpose). In lieu of repurchasing any such Mortgage Loan as
provided above, the Seller may cause such Mortgage Loan to be removed from the
Trust Fund (in which case it shall become a Deleted Mortgage Loan) and
substitute one or more Qualified Substitute Mortgage Loans in the manner and
subject to the limitations set forth in Section 2.03(c). It is understood and
agreed that the obligation of the Seller to cure or to repurchase (or to
substitute for) any Mortgage Loan as to which a document is missing, a material
defect in a document exists or as to which such a breach has occurred and is
continuing shall constitute the sole remedy against the Seller respecting such
omission, defect or breach available to the Trustee on behalf of the
Certificateholders and the Guarantor.

                  (b) The Seller hereby indemnifies and holds the Trust Fund,
the Trustee, the Depositor, the Guarantor, the NIMS Insurer and each
Certificateholder harmless against any and all taxes, claims, losses, penalties,
fines, forfeitures, reasonable legal fees and related costs, judgments, and any
other costs, fees and expenses that the Trust Fund, the Trustee, the Depositor,
the Guarantor, the NIMS Insurer and any Certificateholder may sustain in
connection with any actions of the Seller relating to a repurchase of a Mortgage
Loan other than in compliance with the terms of Section 2.03, to the extent that
any such action causes (a) any federal or state tax to be imposed on the Trust
Fund, including without limitation, any federal tax imposed on "prohibited
transactions" under Section 860F(a)(l) of the Code or on "contributions after
the startup date" under Section 860G(d)(l) of the Code, or (b) any Trust REMIC
to fail to qualify as a REMIC at any time that any Certificate is outstanding.

                  (c) Any substitution of Qualified Substitute Mortgage Loans
for Deleted Mortgage Loans made pursuant to Section 2.03(a) shall be effected
prior to the last Business Day that is within two years after the Closing Date.
As to any Deleted Mortgage Loan for which the Seller substitutes a Qualified
Substitute Mortgage Loan or Loans, such substitution shall be effected by the
Seller delivering to the Trustee (or a Custodian on behalf of the Trustee), for
such Qualified Substitute Mortgage Loan or Loans, the Mortgage Note, the
Mortgage, the Assignment to the Trustee, and such other documents and
agreements, with all necessary endorsements thereon, as are required by Section
2.01, together with an Officers' Certificate providing that each such Qualified
Substitute Mortgage Loan satisfies the definition thereof and specifying the
Substitution Adjustment (as described below), if any, in connection with such
substitution. The Trustee (or a Custodian on behalf of the Trustee) shall
acknowledge receipt for such Qualified Substitute Mortgage Loan or Loans and,
within ten Business Days thereafter, shall review such documents as specified in
Section 2.02 and deliver to the Master Servicer, the Guarantor and the NIMS
Insurer, with respect to such Qualified Substitute Mortgage Loan or Loans, a
certification substantially in the form attached hereto as Exhibit D-1, with any
applicable exceptions noted thereon. Within one year of the date of
substitution, the Trustee shall deliver to the Master Servicer, the Guarantor
and the NIMS Insurer a certification substantially in the form of Exhibit D-2
hereto with respect to such Qualified Substitute Mortgage Loan or Loans, with
any applicable exceptions noted thereon. Monthly Payments due with respect to
Qualified

                                       44

<PAGE>

Substitute Mortgage Loans in the month of substitution are not part of the Trust
Fund and will be retained by the Seller. For the month of substitution,
distributions to Certificateholders will reflect the collections and recoveries
in respect of such Deleted Mortgage Loan in the Due Period preceding the month
of substitution and the Depositor or the Seller, as the case may be, shall
thereafter be entitled to retain all amounts subsequently received in respect of
such Deleted Mortgage Loan. The Seller shall give or cause to be given written
notice to the Guarantor not less than 10 Business Days prior to the related
Determination Date of its intention to effect such substitution, and if such
notice from the Seller to the Guarantor shall contain all information that the
Guarantor may require to conduct its due diligence evaluation of each mortgage
loan proposed to be substituted (including the complete and final data file of
each such mortgage loan), then the Guarantor shall grant or withhold its
approval of the mortgage loans proposed to be substituted not less than 3
Business Days prior to such Determination Date. The Seller shall give or cause
to be given written notice to the Certificateholders, the Master Servicer, the
Guarantor and the NIMS Insurer that such substitution has taken place, shall
amend the Mortgage Loan Schedule to reflect the removal of such Deleted Mortgage
Loan from the terms of this Agreement and the substitution of the Qualified
Substitute Mortgage Loan or Loans and shall deliver a copy of such amended
Mortgage Loan Schedule to the Trustee, the Master Servicer, the Guarantor and
the NIMS Insurer. Upon such substitution, such Qualified Substitute Mortgage
Loan or Loans shall constitute part of the Mortgage Pool and shall be subject in
all respects to the terms of this Agreement and, in the case of a substitution
effected by the Seller, the Mortgage Loan Purchase Agreement, including, in the
case of a substitution effected by the Seller all applicable representations and
warranties thereof included in the Mortgage Loan Purchase Agreement and all
applicable representations and warranties thereof set forth in Section 2.04, in
each case as of the date of substitution.

                  For any month in which the Seller substitutes one or more
Qualified Substitute Mortgage Loans for one or more Deleted Mortgage Loans, the
Master Servicer shall determine the amount (the "Substitution Adjustment"), if
any, by which the aggregate Purchase Price of all such Deleted Mortgage Loans
exceeds the aggregate, as to each such Qualified Substitute Mortgage Loan, of
the principal balance thereof as of the date of substitution, together with one
month's interest on such principal balance at the applicable Net Mortgage Rate.
On the date of such substitution, the Seller will deliver or cause to be
delivered to the Master Servicer for deposit in the Collection Account an amount
equal to the Substitution Adjustment, if any, and the Trustee, upon receipt of
the related Qualified Substitute Mortgage Loan or Loans and certification by the
Master Servicer of such deposit, shall release to the Seller the related
Mortgage File or Files and shall execute and deliver such instruments of
transfer or assignment, in each case without recourse, as the Seller shall
deliver to it and as shall be necessary to vest therein any Deleted Mortgage
Loan released pursuant hereto.

                  In addition, the Seller shall obtain at its own expense and
deliver to the Trustee, the NIMS Insurer and the Guarantor an Opinion of
Counsel, to be delivered not less than 10 Business Days prior to the related
Determination Date, to the effect that such substitution will not cause (a) any
federal tax to be imposed on the Trust Fund, including without limitation, any
federal tax imposed on "prohibited transactions" under Section 860F(a)(1) of the
Code or on "contributions after the startup date" under Section 860G(d)(1) of
the Code, or (b) any Trust REMIC to fail to qualify as a REMIC at any time that
any Certificate is outstanding. If such Opinion of Counsel cannot be delivered,
then such substitution may only be effected at such time as the required Opinion
of Counsel can be given.

                  (d) Upon discovery by the Seller, the Master Servicer, the
Guarantor, the NIMS Insurer or the Trustee that any Mortgage Loan does not
constitute a "qualified mortgage" within the meaning of Section 860G(a)(3) of
the Code, the party discovering such fact shall within two Business Days give
written notice thereof to the other parties to this Agreement. In connection
therewith, the Seller shall repurchase or, subject to the limitations set forth
in Section 2.03(c), substitute one or more Qualified Substitute Mortgage Loans
for the affected Mortgage Loan within 90 days of the earlier of discovery or
receipt of such notice with respect to such affected Mortgage Loan. Any such
repurchase or substitution shall be made in the same manner as set forth in
Section 2.03(a), if made by the Seller. The Trustee shall reconvey to the Seller
the Mortgage Loan to be released pursuant hereto in the same manner, and on the
same terms and conditions, as it would a Mortgage Loan repurchased for breach of
a representation or warranty.

                  (e)(i) Promptly, but in no event later than 90 days following
the earlier of discovery by the Master Servicer or receipt of notice by the
Master Servicer of the breach of any representation, warranty or covenant of the
Master Servicer set forth in Section 2.05 which materially and adversely affects
the interests of the Certificateholders in any Mortgage Loan, the Master
Servicer shall cure such breach in all material respects.

                                       45

<PAGE>

                  (ii) Notwithstanding the provisions of Section 2.03(e)(i)
above,

                  (A) on the later of (x) the Master Servicer Remittance Date
         next following the earlier of discovery by the Master Servicer or
         receipt of notice by the Master Servicer of the breach of the
         representation made by the Master Servicer in Section 2.05(xi), which
         breach materially and adversely affects the interests of the Holders of
         the Class P Certificates to any Prepayment Charge and (y) the Master
         Servicer Remittance Date next following the Prepayment Period relating
         to such a breach, the Master Servicer shall deposit into the Collection
         Account the amount of the scheduled Prepayment Charge, less any amount
         collected and deposited by the Master Servicer into the Collection
         Account in respect of such Prepayment Charge; and

                  (B) on the later of (x) the Master Servicer Remittance Date
         next following the earlier of discovery by the Master Servicer or
         receipt of notice by the Master Servicer of the breach of the covenant
         made by the Master Servicer in Section 2.05(xii), which breach
         materially and adversely affects the interests of the Holders of the
         Class P Certificates to any Prepayment Charge and (y) the Master
         Servicer Remittance Date next following the Prepayment Period relating
         to such a breach, the Master Servicer shall deposit into the Collection
         Account, as a Master Servicer Prepayment Charge Payment Amount, the
         amount of the waived Prepayment Charge, but only to the extent required
         under Section 2.03(e)(iii) below.

                  (iii) If with respect to any Prepayment Period,

                  (A) the dollar amount of Prepayment Charges that are the
         subject of breaches by the Master Servicer of the covenant made by the
         Master Servicer in Section 2.05(xii), which breaches materially and
         adversely affects the interests of the Holders of the Class P
         Certificates to such Prepayment Charges, exceeds

                  (B) 5% of the total dollar amount of Prepayment Charges
         payable by Mortgagors in connection with Principal Prepayments on the
         related Mortgage Loans that occurred during such Prepayment Period,

then the amount required to be paid by the Master Servicer pursuant to Section
2.03(e)(ii)(B) above shall be limited to an amount, that when added to the
amount of Prepayment Charges actually collected by the Master Servicer in
respect of Prepayment Charges relating to Principal Prepayments on the related
Mortgage Loans that occurred during such Prepayment Period, will yield a sum
equal to 95% of the total dollar amount of Prepayment Charges (exclusive of (A)
Prepayment Charges not enforced or collected upon because (i) the enforceability
thereof shall have been limited by bankruptcy, insolvency, moratorium,
receivership and other similar laws relating to creditors' rights generally or
(ii) the collectability thereof shall have been limited due to acceleration in
connection with a foreclosure or other involuntary payment and (B) Prepayment
Charges waived by the Master Servicer where such waiver does not breach the
covenant set forth in Section 2.05(xii)) payable by Mortgagors in connection
with Principal Prepayments on the related Mortgage Loans that occurred during
such Prepayment Period.

                  SECTION 2.04.     Representations, Warranties and Covenants of
                                    the Seller.

                  (a) The Seller hereby represents and warrants to the Guarantor
and the Trustee for the benefit of the Certificateholders that as of the Closing
Date or as of such other date specifically provided herein:

                  (i) The representations and warranties made by the Seller
         pursuant to Section 3.01 and Section 3.02 of the Mortgage Loan Purchase
         Agreement are hereby being made to the Guarantor and the Trustee for
         the benefit of the Certificateholders and are true and correct as of
         the Closing Date or as of such other date specifically provided
         therein.

                  (ii) Any written agreement between the Mortgagor in respect of
         a Mortgage Loan and the Seller or the Master Servicer modifying such
         Mortgagor's obligation to make payments under such Mortgage Loan
         involved the application of the Seller's or the Master Servicer's
         underwriting standards or some assessment of such Mortgagor's ability
         to repay the modified Mortgage Loan and, in the case of any PMI
         Mortgage Loan, complies with the requirements set forth in the PMI
         Policy.

                                       46

<PAGE>

                  It is understood and agreed that the representations and
warranties set forth in this Section 2.04 shall survive delivery of the Mortgage
Files to the Trustee and shall inure to the benefit of the Certificateholders
and the Guarantor notwithstanding any restrictive or qualified endorsement or
assignment. Upon discovery by any of the Depositor, the Guarantor, the NIMS
Insurer, the Master Servicer, the Seller or the Trustee of a breach of any of
the foregoing representations and warranties which materially and adversely
affects the value of any Mortgage Loan or the interests therein of the
Certificateholders or the Guarantor, the party discovering such breach shall
give prompt written notice to the other parties and the Guarantor, and in no
event later than two Business Days from the date of such discovery. Within 90
days of its discovery or its receipt of notice of any such missing or materially
defective documentation or any such breach of a representation or warranty, the
Seller shall promptly deliver such missing document or cure such defect or
breach in all material respects, or in the event such defect or breach cannot be
cured, the Seller shall repurchase the affected Mortgage Loan or cause the
removal of such Mortgage Loan from the Trust Fund and substitute for it one or
more Qualified Substitute Mortgage Loans, in either case, in accordance with
Section 2.03. It is understood and agreed that the obligations of the Seller set
forth in Section 2.03(a) to cure, substitute for or repurchase a Mortgage Loan
pursuant to the Mortgage Loan Purchase Agreement constitute the sole remedies
available to the Certificateholders, the Guarantor or to the Trustee on their
behalf respecting a breach of the representations and warranties contained in
this Section 2.04.

                  (b) The Seller hereby covenants that it will not sell, pledge,
assign or transfer to any other Person, or grant, create, incur, assume or
suffer to exist any lien on any Mortgage Loan, or any interest therein; the
Seller will notify the Trustee, as assignee of the Depositor, the Guarantor and
the NIMS Insurer of the existence of any lien on any Mortgage Loan immediately
upon discovery thereof, and the Seller will defend the right, title and interest
of the Trust, as assignee of the Depositor, in, to and under the Mortgage Loans,
against all claims of third parties claiming through or under the Seller.

                  (c) Promptly, but in no event later than 90 days following the
earlier of discovery by the Seller or receipt of notice by the Seller of the
breach of any representation, warranty or covenant of the Seller set forth in
this Section 2.04 which materially and adversely affects the interests of the
Certificateholders in any Mortgage Loan, the Seller shall cure such breach in
all material respects.

                  SECTION 2.05.     Representations, Warranties and Covenants of
                                    the Master Servicer.

                  The Master Servicer (in its capacity as Master Servicer and/or
Seller, as applicable) hereby represents, warrants and covenants to the
Depositor, the Guarantor and the Trustee, for the benefit of each of the
Depositor, the Trustee, the Guarantor and the Certificateholders that as of the
Closing Date or as of such date specifically provided herein:

                  (i) The Master Servicer is duly organized, validly existing,
         and in good standing under the laws of the jurisdiction of its
         formation and has all licenses necessary to carry on its business as
         now being conducted and is licensed, qualified and in good standing in
         the states where the Mortgaged Property is located if the laws of such
         state require licensing or qualification in order to conduct business
         of the type conducted by the Master Servicer or to ensure the
         enforceability or validity of each Mortgage Loan; the Master Servicer
         has the power and authority to execute and deliver this Agreement and
         to perform in accordance herewith and all requisite corporate action
         has been taken by the Master Servicer to make this Agreement valid and
         binding upon the Master Servicer in accordance with its terms; the
         execution, delivery and performance of this Agreement (including all
         instruments of transfer to be delivered pursuant to this Agreement) by
         the Master Servicer and the consummation of the transactions
         contemplated hereby have been duly and validly authorized; this
         Agreement evidences the valid, binding obligation of the Master
         Servicer enforceable in accordance with its terms, except as
         enforcement of such terms may be limited by (1) bankruptcy, insolvency,
         reorganization, receivership, moratorium or similar laws affecting the
         enforcement of creditors' rights generally and by the availability of
         equitable remedies, (2) general equity principles (regardless of
         whether such enforcement is considered in a proceeding in equity or at
         law) or (3) public policy considerations underlying the securities
         laws, to the extent that such policy considerations limit the
         enforceability of provisions of this Agreement, if any, which purport
         to provide indemnification from securities laws liabilities;

                                       47

<PAGE>

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

                  (iii) The execution and delivery of this Agreement by the
         Master Servicer and the performance and compliance with its obligations
         and covenants hereunder do not require the consent or approval of any
         governmental authority or, if such consent or approval is required, it
         has been obtained;

                  (iv) All documents and instruments contemplated hereby which
         are executed and delivered by the Master Servicer, constitute and will
         constitute valid, legal and binding obligations of the Master Servicer,
         enforceable in accordance with their respective terms, except as such
         enforcement may be limited by (1) bankruptcy, insolvency,
         reorganization, receivership, moratorium or similar laws affecting the
         enforcement of creditors' rights generally and by the availability of
         equitable remedies, (2) general equity principles (regardless of
         whether such enforcement is considered in a proceeding in equity or at
         law) or (3) public policy considerations underlying the securities
         laws, to the extent that such policy considerations limit the
         enforceability of provisions of any of such documents or instruments
         which purport to provide indemnification from securities laws
         liabilities.

                  (v) The Master Servicer, in its capacity as Seller, did not
         transfer the Mortgage Loans to the Depositor with any intent to hinder,
         delay or defraud any of its creditors;

                  (vi) The Master Servicer, in its capacity as Seller, acquired
         title to the Mortgage Loans in good faith, without notice of any
         adverse claims;

                  (vii) The transfer, assignment and conveyance of the Mortgage
         Notes and the Mortgages by the Master Servicer, in its capacity as
         Seller to the Depositor is not subject to the bulk transfer laws or any
         similar statutory provisions in effect in any applicable jurisdiction.

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

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

                  (x) Neither this Agreement nor any information, certificate of
         an officer, statement furnished in writing or report delivered to the
         Trustee or the Guarantor by the Master Servicer, in its capacity as
         Master Servicer or Seller, in connection with the transactions
         contemplated hereby contains any untrue statement of a material fact or
         omits to state a material fact necessary in order to make the
         statements contained therein, in light of the circumstances under which
         they were made, not misleading (except to the extent that any such
         information, statement or report has been corrected or superseded in
         writing by the Master Servicer as of the Closing Date, it being
         understood (i) that the Master Servicer has delivered no certificate of
         an officer prior to the Closing Date and (ii) that any representations,
         warranties and indemnifications as to the accuracy and

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         completeness of the Information Circular made by Ameriquest Mortgage
         Company in agreements and Officers' Certificates delivered by
         Ameriquest Mortgage Company on the Closing Date in connection with the
         transactions contemplated by this Agreement shall be interpreted such
         that the information in the Information Circular is deemed to correct
         and/or supersede as of the Closing Date, within the meaning of this
         parenthetical, any information, statement or report delivered by the
         Master Servicer to the Trustee or the Guarantor prior to the Closing
         Date that is inconsistent with the information in the Information
         Circular or that was omitted from such information, statement or report
         delivered prior to the Closing Date);

                  (xi) The information set forth in the Prepayment Charge
         Schedule (prepared by the Master Servicer in its capacity as Seller)
         attached hereto as Schedule 2 (including the Prepayment Charge Summary
         attached thereto) is complete, true and correct in all material
         respects on the date or dates when such information is furnished and
         each Prepayment Charge is permissible and enforceable in accordance
         with its terms (except to the extent that the enforceability thereof
         may be limited by bankruptcy, insolvency, moratorium, receivership and
         other similar laws affecting creditors' rights generally or the
         collectability thereof may be limited due to acceleration in connection
         with a foreclosure or other involuntary payment) under applicable state
         law;

                  (xii) The Master Servicer will not waive any Prepayment Charge
         unless, (i) the enforceability thereof shall have been limited by
         bankruptcy, insolvency, moratorium, receivership and other similar laws
         relating to creditors' rights generally or (ii) the collectability
         thereof shall have been limited due to acceleration in connection with
         a foreclosure or other involuntary payment, or (iii) in the Master
         Servicer's reasonable judgment as described in Section 3.01 hereof, (x)
         such waiver relates to a default or a reasonably foreseeable default,
         (y) such waiver would maximize recovery of total proceeds taking into
         account the value of such Prepayment Charge and related Mortgage Loan
         and (z) doing so is standard and customary in servicing similar
         Mortgage Loans (including any waiver of a Prepayment Charge in
         connection with a refinancing of a Mortgage Loan that is related to a
         default or a reasonably foreseeable default). In no event will the
         Master Servicer waive a Prepayment Charge in connection with a
         refinancing of a Mortgage Loan that is not related to a default or a
         reasonably foreseeable default;

                  (xiii) For each Mortgage Loan, the Master Servicer 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 each of Equifax, Transunion, and Experian (the
         "Credit Repositories") on a monthly basis. The Master Servicer shall
         provide evidence of the furnishing of such accurate and complete
         information to Freddie Mac on either a monthly or quarterly basis; and

                  (xiv) All amounts received after the Cut-off Date with respect
         to the Mortgage Loans to which the Seller is not entitled will be
         deposited in the clearing account (which account must be an Eligible
         Account) in which it customarily deposits payments and collections on
         mortgage loans in connection with its mortgage loan servicing
         activities on a daily basis, and in no event more than one Business Day
         after the Master Servicer's receipt thereof, and shall thereafter
         deposit in the Collection Account, in no event more than two Business
         Days after the deposit of such funds into the clearing account

                  It is understood and agreed that the representations,
warranties and covenants set forth in this Section 2.05 shall survive delivery
of the Mortgage Files to the Trustee and shall inure to the benefit of the
Trustee, the Depositor, the Guarantor and the Certificateholders. Upon discovery
by any of the Depositor, the Guarantor, the NIMS Insurer, the Master Servicer,
the Seller or the Trustee of a breach of any of the foregoing representations,
warranties and covenants which materially and adversely affects the value of any
Mortgage Loan or Prepayment Charge or the interests therein of the
Certificateholders or the Guarantor, the party discovering such breach shall
give prompt written notice (but in no event later than two Business Days
following such discovery) to the Master Servicer, the Seller, the Guarantor, the
NIMS Insurer and the Trustee. Subject to Section 7.01, the obligation of the
Master Servicer set forth in Section 2.03(e) to cure breaches (or in the case of
the representations, warranties and covenants set forth in Section 2.05(xi) and
Section 2.05(xii) above, to otherwise remedy such breaches pursuant to Section
2.03(e)(ii)) shall constitute the sole remedies

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against the Master Servicer available to the Guarantor, the NIMS Insurer, the
Certificateholders, the Depositor or the Trustee on behalf of the
Certificateholders respecting a breach of the representations, warranties and
covenants contained in this Section 2.05. The preceding sentence shall not,
however, limit any remedies available to the Guarantor, the NIMS Insurer, the
Certificateholders, the Depositor or the Trustee on behalf of the
Certificateholders (other than in the case of the representations, warranties
and covenants set forth in Section 2.05(xi) and Section 2.05(xii) above)
pursuant to the Mortgage Loan Purchase Agreement signed by the Master Servicer
in its capacity as Seller, respecting a breach of the representations,
warranties and covenants of the Master Servicer in its capacity as Seller
contained in such Mortgage Loan Purchase Agreement.

                  SECTION 2.06.     Representations and Warranties of the
                                    Depositor.

                  The Depositor represents and warrants to the Guarantor and the
Trustee on behalf of the Certificateholders that as of the Closing Date or as of
such date specifically provided herein:

                  (i) This agreement constitutes a legal, valid and binding
         obligation of the Depositor, enforceable against the Depositor in
         accordance with its terms, except as enforcement of such terms may be
         limited by (1) bankruptcy, insolvency, reorganization, receivership,
         moratorium or similar laws affecting the enforcement of creditors'
         rights generally and by the availability of equitable remedies, (2)
         general equity principles (regardless of whether such enforcement is
         considered in a proceeding in equity or at law) or (3) public policy
         considerations underlying the securities laws, to the extent that such
         policy considerations limit the enforceability of provisions of this
         Agreement, if any, which purport to provide indemnification from
         securities laws liabilities;

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

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

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

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

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

                  (vii) The execution, delivery and performance of this
         Agreement by the Depositor, and the consummation of the transactions
         contemplated thereby, do not and will not result in a material breach
         or violation of any of the terms or provisions of, or, to the knowledge
         of the Depositor, constitute a default under, any indenture, mortgage,
         deed of trust, loan agreement or other agreement or instrument to which
         the Depositor is a party or by which the Depositor is bound or to which
         any of the property or assets of the Depositor is subject, nor will
         such actions result in any violation of the provisions of the articles
         of incorporation or by-laws of the Depositor or, to the best of the
         Depositor's knowledge without independent investigation, any statute or
         any order, rule or regulation of any court or governmental agency or
         body having jurisdiction over the Depositor

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<PAGE>

         or any of its properties or assets (except for such conflicts,
         breaches, violations and defaults as would not have a material adverse
         effect on the ability of the Depositor to perform its obligations under
         this Agreement);

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

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

                  SECTION 2.07.     Conveyance of Uncertificated REMIC Regular
                                    Interests and Acceptance of REMIC 1, REMIC
                                    2, REMIC 3 and REMIC 4 by the Trustee;
                                    Issuance of Certificates.

                  (a) The Depositor, concurrently with the execution and
delivery hereof, does hereby transfer, assign, set over and otherwise convey in
trust to the Trustee without recourse all the right, title and interest of the
Depositor in and to the assets described in the definition of REMIC 1 for the
benefit of the holders of the REMIC 1 Regular Interests (which are
uncertificated) and the Class R Certificates (in respect of the Class R-1
Interest) and the Guarantor. The Trustee acknowledges receipt of the assets
described in the definition of REMIC 1 and declares that it holds and will hold
the same in trust for the exclusive use and benefit of the holders of the REMIC
1 Regular Interests and the Class R Certificates (in respect of the Class R-1
Interest) and the Guarantor. The interests evidenced by the Class R-1 Interest,
together with the REMIC 1 Regular Interests, constitute the entire beneficial
ownership interest in REMIC 1.

                  (b) The Depositor, concurrently with the execution and
delivery hereof, does hereby transfer, assign, set over and otherwise convey in
trust to the Trustee without recourse all the right, title and interest of the
Depositor in and to the REMIC 1 Regular Interests for the benefit of the holders
of the REMIC 2 Regular Interests (which are uncertificated) and the Class R
Certificates (in respect of the Class R-2 Interest) and the Guarantor. The
Trustee acknowledges receipt of the REMIC 1 Regular Interests and declares that
it holds and will hold the same in trust for the exclusive use and benefit of
the holders of the REMIC 2 Regular Interests and the Class R Certificates (in
respect of the Class R-2 Interest) and the Guarantor. The interests evidenced by
the Class R-2 Interest, together with the REMIC 2 Regular Interests, constitute
the entire beneficial ownership interest in REMIC 2.

                  (c) The Depositor, concurrently with the execution and
delivery hereof, does hereby transfer, assign, set over and otherwise convey in
trust to the Trustee without recourse all the right, title and interest of the
Depositor in and to the REMIC 2 Regular Interests for the benefit of the holders
of the REMIC 3 Regular Interests (which are uncertificated) and the Class R
Certificates (in respect of the Class R-3 Interest) and the Guarantor. The
Trustee acknowledges receipt of the REMIC 2 Regular Interests and declares that
it holds and will hold the same in trust for the exclusive use and benefit of
the holders of the REMIC 3 Regular Interests and the Class R Certificates (in
respect of the Class R-3 Interest) and the Guarantor. The interests evidenced by
the Class R-3 Interest, together with the REMIC 3 Regular Interests, constitute
the entire beneficial ownership interest in REMIC 3.

                  (d) The Depositor, concurrently with the execution and
delivery hereof, does hereby transfer,

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<PAGE>

assign, set over and otherwise convey in trust to the Trustee without recourse
all the right, title and interest of the Depositor in and to the REMIC 3 Regular
Interests for the benefit of the holders of the Regular Certificates and the
Class R Certificates (in respect of the Class R-4 Interest) and the Guarantor.
The Trustee acknowledges receipt of the REMIC 3 Regular Interests and declares
that it holds and will hold the same in trust for the exclusive use and benefit
of the holders of the Regular Certificates and the Class R Certificates (in
respect of the Class R-4 Interest) and the Guarantor. The interests evidenced by
the Class R-4 Interest, together with the Certificates, constitute the entire
beneficial ownership interest in REMIC 4.

                  (e) Concurrently with (i) the assignment and delivery to the
Trustee of REMIC 1 and the acceptance by the Trustee thereof, pursuant to
Section 2.01 and Section 2.02, (ii) the assignment and delivery to the Trustee
of REMIC 2 (including the Residual Interest therein represented by the Class R-2
Interest) and the acceptance by the Trustee thereof, pursuant to Section
2.07(c), (iv) the assignment and delivery to the Trustee of REMIC 3 (including
the Residual Interest therein represented by the Class R-3 Interest) and the
acceptance by the Trustee thereof, pursuant to Section 2.07(d) and (v) the
assignment and delivery to the Trustee of REMIC 4 (including the Residual
Interest therein represented by the Class R-4 Interest) and the acceptance by
the Trustee thereof, pursuant to Section 2.07(e), the Trustee, pursuant to the
written request of the Depositor executed by an officer of the Depositor, has
executed, authenticated and delivered to or upon the order of the Depositor, the
Class R Certificates in authorized denominations evidencing the Class R-1
Interest, the Class R-2 Interest, the Class R-3 Interest and the Class R-4
Interest.

                  SECTION 2.08.     Conveyance of Subsequent Mortgage Loans.

                  (a) Subject to the conditions set forth in paragraph (b) below
in consideration of the Trustee's delivery on the Subsequent Transfer Dates to
or upon the order of the Depositor of all or a portion of the balance of funds
in the Pre-Funding Accounts, the Depositor shall on any Subsequent Transfer Date
sell, transfer, assign, set over and convey without recourse to the Trust Fund
but subject to the other terms and provisions of this Agreement all of the
right, title and interest of the Depositor in and to (i) the Subsequent Mortgage
Loans identified on the Mortgage Loan Schedule attached to the related
Subsequent Transfer Instrument delivered by the Depositor on such Subsequent
Transfer Date, (ii) principal due and interest accruing on the Subsequent
Mortgage Loans after the Subsequent Cut-off Date and all collections in respect
of interest and principal due after the Subsequent Cut-off Date and (iii) all
items with respect to such Subsequent Mortgage Loans to be delivered pursuant to
Section 2.01 and the other items in the related Mortgage Files; provided,
however, that the Depositor reserves and retains all right, title and interest
in and to principal due and interest accruing on the Subsequent Mortgage Loans
prior to the related Subsequent Cut-off Date. The transfer to the Trustee for
deposit in the Mortgage Pool by the Depositor of the Subsequent Mortgage Loans
identified on the Mortgage Loan Schedule shall be absolute and is intended by
the Depositor, the Master Servicer, the Trustee, the Guarantor and the
Certificateholders to constitute and to be treated as a sale of the Subsequent
Mortgage Loans by the Depositor to the Trust Fund. The related Mortgage File for
each Subsequent Mortgage Loan shall be delivered to the Trustee or the Custodian
at least three Business Days prior to the related Subsequent Transfer Date.

                  The purchase price paid by the Trustee on behalf of the Trust
Fund from amounts released from the Group I Pre-Funding Account or the Group II
Pre-Funding Account, as applicable, shall be one-hundred percent (100%) of the
aggregate Stated Principal Balance of the Group I Subsequent Mortgage Loans or
the Group II Subsequent Mortgage Loans, as applicable, so transferred (as
identified on the Mortgage Loan Schedule provided by the Depositor) for
inclusion in Loan Group I or Loan Group II, as applicable. This Agreement shall
constitute a fixed-price purchase contract in accordance with Section
860G(a)(3)(A)(ii) of the Code.

                  (b) The Depositor shall transfer to the Trustee for deposit in
the Trust the Subsequent Mortgage Loans and the other property and rights
related thereto as described in paragraph (a) above, and the Trustee shall
release funds from the Group I Pre-Funding Account or the Group II Pre-Funding
Account, as applicable, only upon the satisfaction of each of the following
conditions on or prior to the related Subsequent Transfer Date:

                  (i) the Depositor shall have provided the Trustee, the
         Guarantor and the NIMS Insurer with a timely Addition Notice and shall
         have provided any information reasonably requested by the Trustee with
         respect to such Subsequent Mortgage Loans;

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<PAGE>

                  (ii) the Depositor shall have delivered to the Trustee, the
         Guarantor and the NIMS Insurer a duly executed Subsequent Transfer
         Instrument, which shall include a Mortgage Loan Schedule listing such
         Subsequent Mortgage Loans, and the Seller, shall have delivered a
         computer file containing such Mortgage Loan Schedule to the Trustee at
         least three Business Days prior to such Subsequent Transfer Date;

                  (iii) as of each Subsequent Transfer Date, as evidenced by
         delivery of the Subsequent Transfer Instrument, substantially in the
         form of Exhibit S, the Depositor shall not be insolvent nor shall it
         have been rendered insolvent by such transfer nor shall it be aware of
         any pending insolvency;

                  (iv) such sale and transfer shall not result in an Adverse
         REMIC Event, as evidenced by an Opinion of Counsel delivered at the
         expense of the Depositor;

                  (v) the Funding Period shall not have terminated;

                  (vi) the Depositor shall not have selected such Subsequent
         Mortgage Loans in a manner that it believed to be adverse to the
         interests of the Certificateholders;

                  (vii) the Depositor shall have delivered to the Trustee, the
         Guarantor and the NIMS Insurer a Subsequent Transfer Instrument
         confirming the satisfaction of the conditions precedent specified in
         this Section 2.08 and, pursuant to such Subsequent Transfer Instrument,
         assigned to the Trustee without recourse for the benefit of the
         Certificateholders all the right, title and interest of the Depositor,
         in, to and under the Subsequent Mortgage Loan Purchase Agreement, to
         the extent of such Subsequent Mortgage Loans;

                  (viii) the Depositor shall have delivered to the Trustee, the
         Guarantor and the NIMS Insurer an Opinion of Counsel addressed to the
         Trustee and the Rating Agencies with respect to the transfer of such
         Subsequent Mortgage Loans substantially in the form of the Opinion of
         Counsel delivered to the Trustee on the Closing Date regarding the true
         sale of the Initial Mortgage Loans;

                  (ix) the Depositor shall have furnished a preliminary
         non-binding list of Subsequent Mortgage Loans to the Guarantor, the
         NIMS Insurer and the Rating Agencies ten Business Days prior to the
         Subsequent Transfer Date; and

                  (x) the Depositor shall have received the written consent of
         the Guarantor and the consent of the NIMS Insurer two Business Days
         prior to the transfer of such Subsequent Mortgage Loans.

                  (c) The obligation of the Trust Fund to purchase a Subsequent
Mortgage Loan to be included in the Mortgage Pool on any Subsequent Transfer
Date is subject to the satisfaction of the conditions set forth in the
immediately following paragraph and the accuracy of the following
representations and warranties with respect to each such Subsequent Mortgage
Loan determined as of the applicable Cut-off Date: (i) such Subsequent Mortgage
Loan may not be 30 or more days delinquent as of the related Subsequent Cut-off
Date and such Subsequent Mortgage Loan may not have been 30 or more days
delinquent since origination; provided, however, all of the Subsequent Mortgage
Loans may have a first payment date occurring on or after the Subsequent Cut-off
Date and therefore, such Subsequent Mortgage Loans could not have been
delinquent as of the Subsequent Cut-off Date; (ii) the original term to stated
maturity of such Subsequent Mortgage Loan will not be less than 180 months and
will not exceed 360 months from its first payment date; (iii) such Subsequent
Mortgage Loan will not have a Loan-to-Value ratio greater than 95.00%; (iv) all
such Subsequent Mortgage Loans will have, as of the applicable Subsequent
Cut-off Date, a weighted average term since origination not in excess of 2
months; (v) if such Subsequent Mortgage Loan is a Group I Mortgage Loan, such
Subsequent Mortgage Loan will have a fixed Mortgage Rate that is not less than
5.450% per annum; (vi) if such Subsequent Mortgage Loan is a Group II Mortgage
Loan, such Subsequent Mortgage Loan will have an initial adjustable Mortgage
Rate that is not less than 5.450% per annum; (vii) if such Subsequent Mortgage
Loan is a Group II Mortgage Loan, such Subsequent Mortgage Loan will have a
Gross Margin not less than 3.250% per annum; (vii) if such Subsequent Mortgage
Loan is a Group II Mortgage Loan, such Subsequent Mortgage Loan must have a
Maximum Mortgage Rate not less than 11.450% per annum; (viii) if such Subsequent
Mortgage Loan is a Group II Mortgage Loan,

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<PAGE>

such Subsequent Mortgage Loan must have a Minimum Mortgage Rate not less than
5.450% per annum; (ix) such Subsequent Mortgage Loan may not provide for
negative amortization; (x) such Subsequent Mortgage Loan shall have been
serviced by the Master Servicer since origination or the date of purchase; (xi)
such Subsequent Mortgage Loan must have a first payment date occurring on or
before March 1, 2003 and (xii) such Subsequent Mortgage Loan shall have been
underwritten in accordance with the Seller's (in its capacity as originator)
underwriting criteria as described in the Information Circular.

                  Following the purchase of any Subsequent Group I Mortgage Loan
to be included in Loan Group I, the Group I Mortgage Loans, including such
Subsequent Group I Mortgage Loans (each Initial Group I Mortgage Loan and
Subsequent Group I Mortgage Loan to be measured as of its related Cut-off Date)
as of the applicable Subsequent Transfer Date: (i) will have a weighted average
original term to stated maturity of not more than 360 months, (ii) will have a
weighted average term since origination not in excess of 1.562 months; (iii)
will have a weighted average Mortgage Rate of not less than 7.884% per annum;
(iv) will have a weighted average Loan-to-Value Ratio of not more than 80.911%;
(v) will have no Mortgage Loan with a Principal Balance that does not conform to
Freddie Mac loan limits; (vi) will be secured by Mortgaged Properties in any one
state representing no more than 19.028% of the aggregate Principal Balance of
the Group I Mortgage Loans; (vii) will be secured by Mortgaged Properties in any
one zip code representing no more than 0.578% of the aggregate Principal Balance
of the Group I Mortgage Loans; (viii) will be secured by non-owner occupied
Mortgaged Properties representing no more than 6.657% of the aggregate Principal
Balance of the Group I Mortgage Loans; (ix) will be secured by two- to
four-family Mortgaged Properties representing no more than 11.0587% of the
aggregate Principal Balance of the Group I Mortgage Loans; (x) will have a
weighted average FICO score at the time of loan application of the related
mortgagor of not less than 655 and in any event, not less than 642; (xi) will
have a refinance debt-consolidation cashout loan purpose representing no more
than 55.596% of the aggregate Principal Balance of the Group I Mortgage Loans;
(xii) will have Prepayment Charge provisions with respect to no less than
78.055% of the aggregate Principal Balance of the Group I Mortgage Loans; (xiii)
will have a Seller's risk grade of IV, V and VI representing no more than
1.337%, 0.296% and 0.064%, respectively, of the aggregate Principal Balance of
the Group I Mortgage Loans; (xiv) will have Mortgage Loans with a Seller's risk
grade of B, C and D representing no more than 3.114%, 0.444% and 0.148%,
respectively, of the aggregate Principal Balance of the Group I Mortgage Loans;
(xv) will have Mortgage Loans with a Loan-to-Value Ratio at origination of
80.00% representing no more than 11.094% of the aggregate Principal Balance of
the Group I Mortgage Loans; (xvi) will have Mortgage Loans with a Loan-to-Value
Ratio at origination in excess of 80.00% representing no more than 59.74% of the
aggregate Principal Balance of the Group I Mortgage Loans; (xvii) will have
Mortgage Loans with a Loan-to-Value Ratio at origination in excess of 90.00%
representing no more than 5.61% of the aggregate Principal Balance of the Group
I Mortgage Loans; (xviii) will have no Mortgage Loans with a Loan-to-Value Ratio
at origination in excess of 95.00%; (xix) will have been underwritten in
accordance with the Seller's Full Documentation Program representing not less
than 71.988% of the aggregate Principal Balance of the Group I Mortgage Loans;
(xx) will have been underwritten in accordance with the Seller's Limited
Documentation Program representing not more than 7.360% of the aggregate
Principal Balance of the Group I Mortgage Loans; (xxi) will have been
underwritten in accordance with the Seller's Stated Income Documentation Program
representing not more than 20.653% of the aggregate Principal Balance of the
Group I Mortgage Loans; (xxii) will have an average prepayment period of 29.719
months; and (xxiii) will have Mortgage Loans covered by the PMI Policy
representing no less than 88.60% of the aggregate Principal Balance of the Group
I Mortgage Loans.

                  In the discretion of the Guarantor and the NIMS Insurer,
Subsequent Group I Mortgage Loans with characteristics varying from those set
forth above may be purchased by the Trust; provided, however that the addition
of such Mortgage Loans will not materially affect the aggregate characteristics
of Loan Group I.

                  Following the purchase of any Subsequent Group II Mortgage
Loan to be included in Loan Group II, the Group II Mortgage Loans, including
such Subsequent Group II Mortgage Loans (each Initial Group II Mortgage Loan and
Subsequent Group II Mortgage Loan to be measured as of its related Cut-off Date)
as of the applicable Subsequent Transfer Date: (i) will have a weighted average
original term to stated maturity of not more than 360 months, (ii) will have a
weighted average term since origination not in excess of 1.275 months; (iii)
will have a weighted average Mortgage Rate of not less than 8.254% per annum;
(iv) will have a weighted average Loan-to-Value Ratio of not more than 80.575%;
(v) will have a weighted average Gross Margin that is not less than 6.201% per
annum; (vi) will have a

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<PAGE>

weighted average Maximum Mortgage Rate of not less than 14.254% per annum; (vii)
will have a weighted average Minimum Mortgage Rate of not less than 8.254% per
annum; (viii) will have no Mortgage Loan with a Principal Balance that does not
conform to Freddie Mac loan limits; (ix) will be secured by Mortgaged Properties
in any one state representing no more than 23.683% of the aggregate Principal
Balance of the Group II Mortgage Loans; (x) will be secured by Mortgaged
Properties in any one zip code representing no more than 0.340% of the aggregate
Principal Balance of the Group II Mortgage Loans; (xi) will be secured by
non-owner occupied Mortgaged Properties representing no more than 5.201% of the
aggregate Principal Balance of the Group II Mortgage Loans; (xii) will be
secured by two- to four-family Mortgaged Properties representing no more than
7.564% of the aggregate Principal Balance of the Group II Mortgage Loans; (xiii)
will have a weighted average FICO score at the time of loan application of the
related mortgagor of not less than 604 and in any event, not less than 588.269;
(xiv) will have a refinance debt-consolidation cashout loan purpose representing
no more than 55.668% of the aggregate Principal Balance of the Group II Mortgage
Loans; (xv) will have Prepayment Charge provisions with respect to no less than
79.931% of the aggregate Principal Balance of the Group II Mortgage Loans; (xvi)
will have a Seller's risk grade of B, C and D representing no more than 9.299%,
5.337% and 0.131%, respectively, of the aggregate Principal Balance of the Group
II Mortgage Loans; (xvii) will have a Seller's risk grade of IV, V and VI
representing no more than 3.059%, 1.362% and 0.169%, respectively, of the
aggregate Principal Balance of the Group II Mortgage Loans; (xviii) will have
Mortgage Loans with a Loan-to- Value Ratio at origination of 80.00% representing
no more than 12.123% of the aggregate Principal Balance of the Group II Mortgage
Loans; (xix) will have Mortgage Loans with a Loan-to-Value Ratio at origination
in excess of 80.00% representing no more than 54.889% of the aggregate Principal
Balance of the Group II Mortgage Loans; (xx) will have Mortgage Loans with a
Loan-to-Value Ratio at origination in excess of 90.00% representing no more than
5.014% of the aggregate Principal Balance of the Group II Mortgage Loans; (xxi)
will have no Mortgage Loans with a Loan-to- Value Ratio at origination in excess
of 95.00%; (xxii) will have been underwritten in accordance with the Seller's
Full Documentation Program representing not less than 72.293% of the aggregate
Principal Balance of the Group II Mortgage Loans; (xxiii) will have been
underwritten in accordance with the Seller's Limited Documentation Program
representing not more than 6.224% of the aggregate Principal Balance of the
Group II Mortgage Loans; (xxiv) will have been underwritten in accordance with
the Seller's Stated Income Documentation Program representing not more than
21.483% of the aggregate Principal Balance of the Group II Mortgage Loans; (xxv)
will have their first adjustment two years following their date of origination;
(xxvi) will have an average prepayment period of 31.031 months and (xxvii) will
have Mortgage Loans covered by the PMI Policy representing no less than 80.29%
of the aggregate Principal Balance of the Group II Mortgage Loans.

                  In the discretion of the Guarantor and the NIMS Insurer,
Subsequent Group II Mortgage Loans with characteristics varying from those set
forth above may be purchased by the Trust; provided, however that the addition
of such Mortgage Loans will not materially affect the aggregate characteristics
of Loan Group II.

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                                   ARTICLE III

                 ADMINISTRATION AND SERVICING OF THE TRUST FUND

                  SECTION 3.01.     Master Servicer to Act as Master Servicer.

                  The Master Servicer, as independent contract servicer, shall
service and administer the Mortgage Loans on behalf of the Trustee and in the
best interests of and for the benefit of the Guarantor and the
Certificateholders (as determined by the Master Servicer in its reasonable
judgment) in accordance with: (a) the terms of the respective Mortgage Loans and
any insurance policies related thereto, (b) all Applicable Regulations, (c) this
Agreement, (d) the Loss Mitigation Action Plan, if applicable, and (e) to the
extent consistent with the preceding requirements, in the same manner in which
it services and administers similar mortgage loans for its own portfolio, giving
due consideration to the customary and usual standards of practice of prudent
mortgage lenders and loan servicers administering similar mortgage loans in the
same jurisdiction as the related Mortgaged Property, but without regard to:

                  (i) any relationship that the Master Servicer, any subservicer
         or any Affiliate of the Master Servicer or any subservicer may have
         with the related Mortgagor;

                  (ii) the ownership of any Certificate by the Master Servicer
         or any Affiliate of the Master Servicer;

                  (iii) the Master Servicer's obligation to make Advances or
         Servicing Advances; or

                  (iv) the Master Servicer's or any subservicer's right to
         receive compensation for its services hereunder or with respect to any
         particular transaction (the "Servicing Standard").

                  Subject only to the above-described Servicing Standard, the
Master Servicer shall have full power and authority, acting alone (or through
subservicers as provided in Section 6.06), to do or cause to be done any and all
things in connection with such servicing and administration which the Master
Servicer may deem necessary or desirable and consistent with the terms of the
Servicing Standard. Without limiting the generality of the foregoing, the Master
Servicer in its own name (or in the name of a subservicer) is hereby authorized
and empowered by the Trustee on behalf of the Trust, in accordance with the
Servicing Standard set forth herein, to (i) execute and deliver, on behalf of
the Certificateholders, the Guarantor and the Trustee, any and all instruments
of satisfaction or cancellation, or of partial or full release or discharge, or
of forbearance, or of modification and all other comparable instruments, with
respect to the Mortgage Loans and the Mortgaged Properties, (ii) to institute
foreclosure proceedings or obtain a deed-in-lieu of foreclosure to convert the
ownership of such properties, and to hold or cause to be held title to such
properties, in the name of the Trust, on behalf of the Trustee, the Guarantor
and the Certificateholders, (iii) to market, sell and transfer title of REO
Properties held in the name of the Trust to third party purchasers upon terms
and conditions the Master Servicer deems reasonable under the Servicing
Standard, (4) to bring or respond to civil actions or complaints (in its own
name or that of the Trust or the Trustee on behalf of the Trust) related to any
Mortgage Loan, Mortgaged Property or REO Property held by the Trust and (5)
execute any other document necessary or appropriate to enable the Master
Servicer to carry out its servicing and administrative duties hereunder
consistent with the Servicing Standard.

                  At the written request of the Master Servicer, the Trustee
shall execute and furnish to the Master Servicer such documents as are necessary
or appropriate to enable the Master Servicer to carry out its servicing and
administrative duties hereunder. By execution of this Agreement, the Trustee on
behalf of the Trust hereby grants to the Master Servicer a power of attorney to
execute any and all documents necessary to carry out any and all servicing
duties described in this Agreement (including the taking of and transferring
title of REO Properties to third parties held in the name of the Trustee for the
benefit of the Trust) and expressly confirms that this paragraph along with the
face page and copy of the signature pages (duly executed) to this Agreement
shall constitute the power of attorney for evidentiary and/or recording
purposes. The Trustee shall not be liable for the actions of the Master Servicer
under such powers of attorney.

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                  In accordance with the Servicing Standard, the Master Servicer
shall advance or cause to be advanced funds as necessary for the purpose of
effecting the timely payment of taxes and assessments on the Mortgaged
Properties, which advances shall be Servicing Advances reimbursable in the first
instance from related collections from the Mortgagors pursuant to Section 3.07,
and further as provided in Section 3.05. Any cost incurred by the Master
Servicer or by subservicers in effecting the timely payment of taxes and
assessments on a Mortgaged Property shall not, for the purpose of calculating
distributions to Certificateholders, be added to the unpaid Principal Balance of
the related Mortgage Loan, notwithstanding that the terms of such Mortgage Loan
so permit.

                  Consistent with the terms of this Agreement, the Master
Servicer may waive, modify or vary any term of any Mortgage Loan or consent to
the postponement of strict compliance with any such term or in any manner grant
indulgence to any Mortgagor if such waiver, modification, postponement or
indulgence is in conformity with the Servicing Standard; provided, however,
that:

                  (A) the Master Servicer, shall not make future advances
         without the consent of the Guarantor (except as provided in Section
         4.04);

                  (B) the Master Servicer shall not permit any modification with
         respect to any Mortgage Loan that would change the Mortgage Rate, defer
         or forgive the payment of any principal or interest payments, reduce
         the outstanding principal balance (except for reductions resulting from
         actual payments of principal) or extend the final maturity date on such
         Mortgage Loan (unless as provided in Section 3.02, (i) the Mortgagor is
         in default with respect to the Mortgage Loan or (ii) such default is,
         in the judgment of the Master Servicer, reasonably foreseeable); and

                  (C) the Master Servicer shall not consent to (i) partial
         releases of Mortgages, (ii) alterations, (iii) removal, demolition or
         division of properties subject to Mortgages, (iv) modification or (v)
         second mortgage subordination agreements with respect to any Mortgage
         Loan that would: (i) affect adversely the status of any Trust REMIC as
         a REMIC, (ii) cause any Trust REMIC to be subject to a tax on
         "prohibited transactions" or "contributions" pursuant to the REMIC
         Provisions, or (iii) both (x) effect an exchange or reissuance of such
         Mortgage Loan under Section 1001 of the Code (or Treasury regulations
         promulgated thereunder) and (y) cause any Trust REMIC constituting part
         of the Trust Fund to fail to qualify as a REMIC under the Code or the
         imposition of any tax on "prohibited transactions" or "contributions"
         after the Startup Day under the REMIC Provisions.

                  To the extent consistent with the terms of this Agreement,
including Section 2.03 and Section 2.05, the Master Servicer may waive (or
permit a subservicer to waive) a Prepayment Charge only under the following
circumstances: (i) such waiver is standard and customary in servicing similar
Mortgage Loans and (ii) such waiver relates to a default or a reasonably
foreseeable default and would, in the reasonable judgment of the Master
Servicer, maximize recovery of total proceeds taking into account the value of
such Prepayment Charge and the related Mortgage Loan.

                  In accordance with Section 6.06, the Master Servicer may
delegate some or all of its responsibilities under this Agreement to one or more
subservicers; provided however, that no such delegation by the Master Servicer
shall release it from the responsibilities and liabilities arising under this
Agreement. All references to Master Servicer in this Agreement shall be deemed
to include any subservicer duly appointed by the Master Servicer pursuant to
Section 6.06 of this Agreement.

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

                  SECTION 3.02.     Collection of Mortgage Loan Payments.

                  Continuously from the date hereof until the principal and
interest on all Mortgage Loans are paid in full, the Master Servicer shall make
reasonable efforts to collect all payments due under the terms and provisions of
each

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Mortgage Loan when the same shall become due and payable and shall, to the
extent such procedures shall be consistent with the Servicing Standard, follow
such collection procedures as it would follow with respect to mortgage loans
comparable to the Mortgage Loans and held for its own account. Consistent with
the foregoing, the Master Servicer may in its discretion (i) waive any late
payment charge or, if applicable, penalty interest, or (ii) extend the due dates
for the Monthly Payments due on a Mortgage Note for a period of not greater than
180 days; provided that any extension pursuant to clause (ii) above shall not
affect the amortization schedule of any Mortgage Loan for purposes of any
computation hereunder. The NIMS Insurer's prior written consent shall be
required for any modification, waiver or amendment if the amendment if the
aggregate number of outstanding Mortgage Loans which have been modified, waived
or amended exceeds 5% of the number of Mortgage Loans as of the Cut off Date. In
the event of any such arrangement pursuant to clause (ii) above, the Master
Servicer shall make timely advances on such Mortgage Loan during such extension
pursuant to Section 4.04 and in accordance with the amortization schedule of
such Mortgage Loan without modification thereof by reason of such arrangements.

                  Notwithstanding the foregoing, in the event that any Mortgage
Loan is in default or, in the judgment of the Master Servicer, such default is
reasonably foreseeable, the Master Servicer, consistent with the Servicing
Standard, may also waive, modify or vary any term of such Mortgage Loan
(including modifications that would change the Mortgage Rate, forgive the
payment of principal or interest or extend the final maturity date of such
Mortgage Loan), accept payment from the related Mortgagor of an amount less than
the Stated Principal Balance in final satisfaction of such Mortgage Loan, or
consent to the postponement of strict compliance with any such term or otherwise
grant indulgence to any Mortgagor (any and all such waivers, modifications,
variances, forgiveness of principal or interest, postponements, or indulgences
collectively referred to herein as "forbearance"), provided, however, that in
determining which course of action permitted by this sentence it shall pursue,
the Master Servicer shall adhere to the Loss Mitigation Action Plan. The Master
Servicer's analysis supporting any forbearance and the conclusion that any
forbearance meets the Servicing Standard and the Loss Mitigation Action Plan
shall be reflected in writing in the Mortgage File.

                  In the event that a shortfall in any collection on or
liability with respect to any Mortgage Loan results from or is attributable to
adjustments to Mortgage Rates, Monthly Payments or Principal Balances that were
made by the Master Servicer in a manner not consistent with the Servicing
Standard, the Master Servicer, upon discovery or receipt of notice thereof,
immediately shall deposit in the Collection Account from its own funds, without
reimbursement, the amount of any such shortfall and shall indemnify and hold
harmless the Trust Fund, the Trustee, the Depositor, the Guarantor and any
successor Master Servicer in respect of any such liability. Such indemnities
shall survive the termination or discharge of this Agreement.

                  SECTION 3.03.     Notification of Adjustments.

                  On each Adjustment Date, the Master Servicer shall make
interest rate adjustments for each Group II Mortgage Loan in compliance with the
requirements of the related Mortgage and Mortgage Note and Applicable
Regulations. The Master Servicer shall execute and deliver the notices required
by each Mortgage and Mortgage Note and Applicable Regulations regarding interest
rate adjustments. The Master Servicer also shall provide timely notification to
the Trustee and the Guarantor of all applicable data and information regarding
such interest rate adjustments and the Master Servicer's methods of implementing
such interest rate adjustments. Upon the discovery by the Master Servicer or the
Trustee that the Master Servicer has failed to adjust or has incorrectly
adjusted a Mortgage Rate or a Monthly Payment pursuant to the terms of the
related Mortgage Note and Mortgage, the Master Servicer shall immediately
deposit in the Collection Account from its own funds the amount of any interest
loss caused thereby without reimbursement therefor; provided, however, the
Master Servicer shall be held harmless with respect to any interest rate
adjustments made by any master servicer prior to the Master Servicer.

                  SECTION 3.04.     Collection Account, Escrow Account and
                                    Distribution Account.

                  (a) Collection Account. On behalf of the Trust Fund, the
Master Servicer shall segregate and hold all funds collected and received
pursuant to each Mortgage Loan separate and apart from any of its own funds and
general assets and shall establish and maintain in the name of the Trustee one
or more accounts (such account or accounts, the "Collection Account") in
accordance with this Section 3.04, held in trust for the benefit of the

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Certificateholders and the Guarantor.

                  (b) Deposits to the Collection Account. The Master Servicer
shall deposit or cause to be deposited in the clearing account (which account
must be an Eligible Account) in which it customarily deposits payments and
collections on mortgage loans in connection with its mortgage loan servicing
activities on a daily basis, and in no event more than one Business Day after
the Master Servicer's receipt thereof, and shall thereafter deposit in the
Collection Account, in no event more than two Business Days after the deposit of
such funds into the clearing account, as and when received or as otherwise
required hereunder, and retain therein, the following payments and collections
received or made by it subsequent to the Cut-off Date with respect to the
Mortgage Loans or payments (other than Principal Prepayments) received by it on
or prior to the Cut-off Date but allocable to a Due Period subsequent thereto:

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

                  (ii) all payments on account of interest on the Mortgage Loans
         and REO Properties adjusted to the Net Mortgage Rate;

                  (iii) all Insurance Proceeds and Liquidation Proceeds (other
         than proceeds to be held in the Escrow Account and applied to the
         restoration or repair of the Mortgaged Property or released to the
         Mortgagor in accordance with the Servicing Standard) and any amounts
         received in respect of the rental of any REO Property prior to REO
         Disposition;

                  (iv) all proceeds related to the purchase, substitution or
         repurchase of any Mortgage Loan or REO Property in accordance with
         Section 2.03;

                  (v) any amounts required to be deposited by the Master
         Servicer pursuant to Section 3.09 in connection with the deductible
         clause in any blanket hazard insurance policy, such deposit being made
         from the Master Servicer's own funds, without reimbursement therefor;

                  (vi) any amounts required to be deposited by the Master
         Servicer pursuant to Section 3.06 in connection with any losses
         realized on Permitted Investments with respect to funds held in the
         Collection Account;

                  (vii) any amounts required to be deposited by the Master
         Servicer pursuant to Section 3.03 in connection with an error in the
         interest rate adjustments calculated by the Master servicer for any
         Group II Mortgage Loan;

                  (viii) all Prepayment Charges collected by the Master
         Servicer, all Prepayment Charges payable by the Master Servicer
         pursuant to Section 2.03(e)(ii)(A) and all Master Servicer Prepayment
         Charge Payments Amounts payable by the Master Servicer pursuant to
         Section 2.03(e)(ii)(B) as limited by Section 2.03(e)(iii); and

                  (ix) without duplication, all payments of claims under the PMI
Policy and any payments made by the Master Servicer pursuant to Section 3.24.

                  The foregoing requirements for deposit to the Collection
Account shall be exclusive, it being understood and agreed that, without
limiting the generality of the foregoing, payments in the nature of late payment
charges, assumption fees, insufficient funds charges, modification fees and
other ancillary fees (but not Prepayment Charges) need not be deposited by the
Master Servicer in the Collection Account and shall upon collection, belong to
the Master Servicer as additional compensation for its servicing activities. In
the event the Master Servicer shall deposit in the Collection Account any amount
not required to be deposited therein, it may at any time withdraw such amount
from the Collection Account, any provision herein to the contrary
notwithstanding.

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                  (c) Escrow Account. The Master Servicer shall segregate and
hold all funds collected and received pursuant to each Mortgage Loan which
constitute Escrow Payments separate and apart from any of its own funds and
general assets and shall establish and maintain in the name of the Trustee one
or more accounts (such account or accounts, the "Escrow Account") held in trust
for the benefit of the Certificateholders and the Guarantor.

                  (d) Deposits to the Escrow Account. The Master Servicer shall
deposit or cause to be deposited in the clearing account (which account must be
an Eligible Account) in which it customarily deposits payments and collections
on mortgage loans in connection with its mortgage loan servicing activities on a
daily basis, and in no event more than one Business Day after the Master
Servicer's receipt thereof, and shall thereafter deposit in the Escrow Account,
in no event more than two Business Days after the deposit of such funds into the
clearing account, as and when received or as otherwise required hereunder, and
retain therein:

                  (i) all Escrow Payments collected on account of the Mortgage
         Loans, for the purpose of effecting timely payment of any such items as
         required under the terms of this Agreement; and

                  (ii) all Insurance Proceeds which are to be applied to the
         restoration or repair of any Mortgaged Property.

                  (e) Distribution Account. On behalf of the Trust Fund, the
Trustee shall segregate and hold all funds collected and received pursuant to
this Agreement separate and apart from any of its own funds and general assets
and shall establish and maintain in the name of the Trust one or more segregated
accounts (such account or accounts, the "Distribution Account"), held in trust
for the benefit of the Certificateholders and the Guarantor.

                  (f) Trustee Deposits to the Distribution Account. Upon
receipt, the Trustee shall deposit or cause to be deposited into the
Distribution Account all payments of any nature received from the Master
Servicer in accordance with this Agreement. The Trustee shall deposit in the
Distribution Account any amounts required to be deposited pursuant to Section
3.06 in connection with losses realized on Permitted Investments with respect to
funds held in the Distribution Account.

                  (g) Master Servicer Transfer of Funds to the Distribution
Account. On behalf of the Trust Fund, the Master Servicer shall deliver to the
Trustee in immediately available funds for deposit in the Distribution Account
by 3:00 p.m. (New York time) on the Master Servicer Remittance Date, (i) that
portion of Available Funds (calculated without regard to the references in the
definition thereof to amounts that may be deposited to the Distribution Account
from a different source as provided herein or that may be withdrawn therefrom by
the Trustee pursuant to the second clause (e) of the definition of "Available
Funds") for the related Distribution Date then on deposit in the Collection
Account, (ii) without duplication, the amount of all Prepayment Charges
collected by the Master Servicer, all Prepayment Charges payable by the Master
Servicer pursuant to Section 2.03(e)(ii)(A) and all Master Servicer Prepayment
Charge Payment Amounts payable by the Master Servicer pursuant to Section
2.03(e)(ii)(B), subject to Section 2.03(e)(iii) (in each case to the extent not
related to Principal Prepayments occurring after the related Prepayment Period)
and (iii) any amounts reimbursable to an Advancing Person pursuant to Section
3.23.

                  In addition, the Master Servicer shall deliver to the Trustee
from time to time as required by this Agreement, for deposit and the Trustee
shall so deposit, in the Distribution Account:

                  (i) any Advances, as required pursuant to Section 4.04;

                  (ii) any amounts required to be deposited pursuant to Section
         3.13 in connection with any REO Property;

                  (iii) any amounts to be paid in connection with a purchase of
         Mortgage Loans and REO Properties pursuant to Section 3.16 and Section
         10.01;

                  (iv) any Compensating Interest as required pursuant to Section
         4.04;

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                  (v) any amounts required to be paid to the Trustee from the
         assets of the Trust Fund on deposit in the Collection Account pursuant
         to this Agreement, including but not limited to amounts required to be
         paid to the Trustee pursuant to Section 7.02 and Section 8.05.

                  Funds held in the Collection Account pursuant to Section
3.04(b) may at any time may be delivered by the Master Servicer to the Trustee
for deposit into the Distribution Account and for all purposes of this Agreement
shall be deemed to be a part of the Collection Account until the Business Day
prior to the Distribution Date; provided, however, that the Trustee shall have
the sole authority to withdraw any funds held pursuant to this paragraph. In the
event the Master Servicer shall deliver to the Trustee for deposit in the
Distribution Account any amount not required to be deposited therein, it may at
any time request that the Trustee withdraw such amount from the Distribution
Account and remit to it any such amount, any provision herein to the contrary
notwithstanding.

                  (h) Investment of Account Funds. Funds in on deposit in the
Collection Account, the Distribution Account, any REO Account and any Escrow
Account may be invested in Permitted Investments in accordance with the
provisions set forth in Section 3.06. Any investment earnings or interest paid
on funds deposited in the Collection Account, any REO Account and any Escrow
Account (subject to Section 3.05(b)) shall accrue to the benefit of the Master
Servicer and the Master Servicer shall be entitled to retain and withdraw such
interest from each such account on a daily basis. Any investment earnings or
interest paid on funds deposited in the Distribution Account, shall accrue to
the benefit of the Trustee and the Trustee shall be entitled to retain and
withdraw such interest from each such account on a daily basis.

                  Funds on deposit in the Pre-Funding Accounts, the Interest
Coverage Accounts and the Net WAC Rate Carryover Reserve Account may be invested
in permitted investments in accordance with Section 3.06 subject to any
limitations set forth in Section 4.10 (with respect to the Pre-Funding
Accounts), Section 4.11 (with respect to the Interest Coverage Accounts) and
Section 4.12 (with respect to the Net WAC Rate Carryover Reserve Account) and
any investment earnings or interest paid shall accrue to the benefit of the
party designated in such section.

                  (i) Creation, Location and Subsequent Transfers of Accounts:
Each account created pursuant to this Agreement must be an Eligible Account. On
or prior to the Closing Date, the Master Servicer and the Trustee shall give
notice to each other, the Guarantor, the NIMS Insurer and the Depositor of the
location of any account created by it pursuant to this Agreement, in the form
attached hereto as Exhibit S. From time to time, the Master Servicer and the
Trustee may each transfer any account created by it to a different depository
institution provided that upon such transfer notice is provided to all other
parties listed in the preceding sentence.

                  SECTION 3.05.     Permitted Withdrawals From the Collection
                                    Account, Escrow Account and Distribution
                                    Account.

                  (a) Collection Account. The Master Servicer may, from time to
time, withdraw from the Collection Account for the following purposes or as
described in Section 4.04:

                  (i) to remit to the Trustee for deposit in the Distribution
         Account the amounts required to be so remitted pursuant to Section
         3.04(g) or permitted to be so remitted pursuant to the last paragraph
         of Section 3.04(g);

                  (ii) to reimburse itself for (a) any unpaid Servicing Fees,
         (b) any unreimbursed Servicing Advances, and (c) any unreimbursed
         Advances, the Master Servicer's right to reimburse itself pursuant to
         this subclause (ii) being limited to any Late Collections, Liquidation
         Proceeds, and Insurance Proceeds received on the related Mortgage Loan
         and any amounts received in respect of the rental of the related REO
         Property prior to an REO Disposition that represent payments of
         principal and/or interest respecting which any such advance was made;

                  (iii) to reimburse itself for (a) any unpaid Servicing Fees to
         the extent not recoverable under

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         Section 3.05(a)(ii) and (b) any unpaid Advances or Servicing Advances
         that have been deemed Nonrecoverable Advances;

                  (iv) to pay to itself any Prepayment Interest Excess pursuant
         to Section 4.04;

                  (v) to reimburse itself for any amounts paid pursuant to
         Section 3.12 and/or 3.13(b) (and not otherwise previously reimbursed);

                  (vi) to pay to itself as servicing compensation any interest
         earned on funds in the Collection Account (all such interest to be
         withdrawn monthly not later than each Master Servicer Remittance Date);

                  (vii) subject to Section 4.04(b), to reimburse the Master
         Servicer in respect of any unreimbursed Advances to the extent of funds
         held in the Collection Account for future distribution that were not
         included in Available Funds for the preceding Distribution Date;

                  (viii) to reimburse the Master Servicer for expenses incurred
         by or reimbursable to the Master Servicer pursuant to Section 6.03, up
         to an amount equal to $500,000 in any calendar year (any amounts in
         excess thereof being reimbursable in accordance with Section
         4.01(a)(vi));

                  (ix) to remit to the Trustee any amounts that the Trustee is
         permitted to be paid or reimbursed from the assets of the Trust Fund
         pursuant to the terms of this Agreement, including the terms of Section
         7.02(a) and Section 8.05 of this Agreement, up to an amount equal to
         $100,000 in any calendar year (any amounts in excess thereof being
         reimbursable in accordance with Section 4.01(a)(vii) and provided that
         any amount still remaining unpaid to the Trustee in any calender year
         shall be reimbursable from any subsequent calendar years, subject to
         the foregoing cap, until fully paid);

                  (x) to reimburse the NIMS Insurer, the Master Servicer (if the
         Master Servicer is not an Affiliate of the Seller), the Guarantor or
         the Trustee, as the case may be, for enforcement expenses reasonably
         incurred in respect of the breach or defect giving rise to the purchase
         obligation under Section 2.03 of this Agreement that were included in
         the Purchase Price of the Mortgage Loan, including any expenses arising
         out of the enforcement of the purchase obligation; provided, however,
         that the reimbursement to the NIMS Insurer pursuant to this clause
         shall be limited to an annual amount of $25,000;

                  (xi) to transfer funds in the Collection Account maintained at
         a particular depository to the Collection Account maintained at a
         different depository, pursuant to Section 3.04(i);

                  (xii) to pay the PMI Insurer the PMI Insurer Fee; and

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

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

                  (b) Escrow Account. The Master Servicer may, from time to
time, withdraw from the Escrow Account for the following purposes:

                  (i) to effect payments of ground rents, taxes, assessments,
         water rates, hazard insurance premiums and comparable items;

                  (ii) to reimburse the Master Servicer for any Servicing
         Advance made by the Master Servicer with respect to a related Mortgage
         Loan but only from amounts received on the related Mortgage Loan which
         represent late payments or Late Collections of Escrow Payments
         thereunder;

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                  (iii) to refund to the Mortgagor any funds as may be
         determined to be overages;

                  (iv) for transfer to the Collection Account in accordance with
         the terms of this Agreement;

                  (v) for application to restoration or repair of the Mortgaged
         Property;

                  (vi) to pay to the Master Servicer, or to the Mortgagor to the
         extent required by the related Mortgage Loan or Applicable Regulations,
         any interest paid on the funds deposited in the Escrow Account;

                  (vii) to clear and terminate the Escrow Account on the
         termination of this Agreement; and

                  (viii) to transfer to the Collection Account any Insurance
         Proceeds.

                  In the event the Master Servicer shall deposit in an Escrow
Account any amount not required to be deposited therein, it may at any time
withdraw such amount from such Escrow Account, any provision herein to the
contrary notwithstanding. As part of its servicing duties, the Master Servicer
shall pay to the Mortgagor interest on funds in the Escrow Account, to the
extent required by the related Mortgage Loan or Applicable Regulations, and to
the extent that interest earned on funds in the Escrow Account is insufficient,
shall pay such interest from its own funds, without any reimbursement therefor.
The Master Servicer may pay to itself any excess interest on funds in the Escrow
Account, to the extent such action is in conformity with the Servicing Standard,
is permitted by law and such amounts are not required to be paid to Mortgagors
or used for any of the other purposes set forth above.

                  (c) Distribution Account. The Trustee shall, from time to
time, make withdrawals from the Distribution Account, for any of the following
purposes:

                  (i) to make distributions to Certificateholders in accordance
         with Section 4.01;

                  (ii) to pay to itself amounts to which it is entitled pursuant
         to Section 8.05;

                  (iii) to pay itself any interest income earned on funds
         deposited in the Distribution Account pursuant to Section 3.06;

                  (iv) to reimburse itself pursuant to Section 7.01(b) and
         Section 7.02(a); and

                  (v) to clear and terminate the Distribution Account pursuant
         to Section 9.01.

                  SECTION 3.06.     Investment of Funds in the Collection
                                    Account, the Escrow Account, the REO Account
                                    and the Distribution Account.

                  (a) The Master Servicer may direct any depository institution
maintaining the Collection Account, the Escrow Account (subject to Section
3.05(b)), and the REO Account and the Trustee may direct any depository
institution maintaining the Distribution Account, (for purposes of this Section
3.06, each an "Investment Account"), to invest the funds in such Investment
Account in one or more Permitted Investments bearing interest or sold at a
discount, and maturing, unless payable on demand, (i) no later than the Business
Day immediately preceding the date on which such funds are required to be
withdrawn from such account pursuant to this Agreement, if a Person other than
the Trustee is the obligor thereon, and (ii) no later than the date on which
such funds are required to be withdrawn from such Investment Account pursuant to
this Agreement, if the Trustee is the obligor thereon. All such Permitted
Investments shall be held to maturity, unless payable on demand. Any investment
of funds in an Investment Account shall be made in the name of the Trustee (in
its capacity as such) or in the name of a nominee of the Trustee. The Trustee
shall be entitled to sole possession (except with respect to investment
direction of funds held in the Collection Account, the Escrow Account, and the
REO Account) over each such investment and (except with respect to the income on
funds held in the Collection Account, the Escrow Account and the REO Account)
the income thereon, and any certificate or other instrument evidencing any such
investment shall be delivered directly to the Trustee or its agent, together
with any

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document of transfer necessary to transfer title to such investment to the
Trustee or its nominee. In the event amounts on deposit in the Distribution
Account are at any time invested in a Permitted Investment payable on demand,
the Trustee shall:

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

                  (ii) demand payment of all amounts due thereunder promptly
         upon determination by a Responsible Officer of the Trustee that such
         Permitted Investment would not constitute a Permitted Investment in
         respect of funds thereafter on deposit in the Investment Account.

                  (b) All income in the nature of interest from the investment
of funds in the Collection Account, the Escrow Account (subject to Section
3.05(b)) and the REO Account shall be for the benefit of the Master Servicer as
compensation for the Master Servicer's services pursuant to this Agreement. The
Master Servicer shall deposit in the Collection Account, the Escrow Account, and
the REO Account from its own funds the amount of any loss incurred in respect of
any such Permitted Investment made with funds in such account immediately upon
realization of such loss.

                  (c) All income in the nature of interest or earnings from the
investment of funds in the Distribution Account shall be for the benefit of the
Trustee as compensation for the Trustee's services pursuant to this Agreement.
The Trustee shall deposit in the Distribution Account from its own funds the
amount of any loss incurred on Permitted Investments in the Distribution
Account.

                  (d) Funds on deposit in the Pre-Funding Accounts, the Interest
Coverage Accounts and the Net WAC Rate Carryover Reserve Account may be invested
in permitted investments in accordance with this Section 3.06 subject to any
limitations set forth in Section 4.10 (with respect to the Pre-Funding
Accounts), Section 4.11 (with respect to the Interest Coverage Accounts) and
Section 4.12 (with respect to the Net WAC Rate Carryover Reserve Account) and
any investment earnings or interest paid shall accrue to the benefit of the
party designated in such section.

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

                  SECTION 3.07.     Payment of Taxes, Insurance and Other
                                    Charges.

                  With respect to each Mortgage Loan, the Master Servicer shall
maintain accurate records reflecting the status of ground rents, taxes,
assessments, water rates and other charges which are or may become a lien upon
the Mortgaged Property and the status of fire and hazard insurance coverage and,
as to those Mortgage Loans subject to a voluntary escrow agreement, shall
obtain, from time to time, all bills for the payment of such charges (including
renewal premiums) and shall effect payment thereof prior to the applicable
penalty or termination date and at a time appropriate for securing maximum
discounts allowable, employing for such purpose deposits of the Mortgagor in the
Escrow Account which shall have been estimated and accumulated by the Master
Servicer in amounts sufficient for such purposes, as allowed under the terms of
the Mortgage or Applicable Regulations. The Master Servicer assumes full
responsibility for the timely payment of all such bills and shall effect timely
payments of all such bills irrespective of the Mortgagor's faithful performance
in the payment of same or the making of the Escrow Payments and shall make
Servicing Advances from its own funds to effect such payments. To the extent
that the Mortgage does not provide for Escrow Payments, the Master Servicer
shall use reasonable efforts consistent with the Servicing Standard to determine
that any such payments are made by the Mortgagor at the time they first become
due and shall ensure that the Mortgaged Property is not lost to a tax lien as a
result of nonpayment and that such Mortgaged Property is not left uninsured.

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                  SECTION 3.08.     Maintenance of Hazard Insurance.

                  The Master Servicer shall cause to be maintained for each
Mortgage Loan fire and hazard insurance with extended coverage as is customary
in the area where the Mortgaged Property is located in an amount which is at
least equal to the lesser of (i) 100% of the maximum insurable value of the
improvements securing the Mortgage Loan and (ii) the Stated Principal Balance of
the Mortgage Loan, in each case in an amount not less than such amount as is
necessary to prevent the Mortgagor and/or the Mortgagee from becoming a
co-insurer. If the Mortgaged Property or REO Property is at any time in an area
identified in the Federal Register by the Federal Emergency Management Agency as
having special flood hazards and flood insurance has been made available, the
Master Servicer will cause to be maintained a flood insurance policy in respect
thereof meeting the requirements of the current guidelines of the Federal
Insurance Administration with a generally acceptable insurance carrier. Such
flood insurance shall be in an amount equal to the least of (i) the Stated
Principal Balance of the Mortgage Loan, (ii) 100% of the maximum insurable value
of the improvements securing the Mortgage Loan and (iii) the maximum amount of
insurance which is available under the National Flood Insurance Act of 1968 and
the Flood Disaster Protection Act of 1973, each as amended. The Master Servicer
shall also maintain on the REO Property for the benefit of the
Certificateholders and the Guarantor, (x) fire and hazard insurance with
extended coverage in an amount which is at least equal to the lesser of (i) 100%
of the maximum insurable value of the improvements which are a part of such
property and (ii) the Stated Principal Balance of the related Mortgage Loan at
the time it became a REO Property, (y) public liability insurance covered under
the Master Servicer's general liability policy and, (z) to the extent required
and available under the National Flood Insurance Act of 1968 and the Flood
Disaster Protection Act of 1973, each as amended, flood insurance in an amount
as provided above. Any amounts collected by the Master Servicer under any such
policies other than amounts to be deposited in the Escrow Account and applied to
the restoration or repair of the Mortgaged Property or REO Property, or released
to the Mortgagor in accordance with the Servicing Standard, shall be deposited
in the Collection Account, subject to withdrawal pursuant to Section 3.05. It is
understood and agreed that no earthquake or other additional insurance is
required to be maintained by the Master Servicer or the Mortgagor or maintained
on property acquired in respect of the Mortgage Loan, other than pursuant to
such Applicable Regulations as shall at any time be in force and as shall
require such additional insurance. All such policies shall be endorsed with
standard mortgagee clauses with loss payable to the Master Servicer and shall
provide for at least thirty days prior written notice to the Master Servicer of
any cancellation, reduction in the amount of or material change in coverage to
the Master Servicer. The Master Servicer shall not interfere with the
Mortgagor's freedom of choice in selecting either his insurance carrier or
agent; provided, however, that the Master Servicer shall not accept any such
insurance policies from insurance companies unless such companies currently
reflect a general policy rating of B:III or better in Best's Key Rating Guide
and are licensed to do business in the state wherein the property subject to the
policy is located.

                  SECTION 3.09.     Maintenance of Mortgage Blanket Insurance
                                    Policy.

                  In the event that the Master Servicer shall obtain and
maintain a blanket policy issued by an insurer that has a general policy rating
of B:III or better in Best's Key Rating Guide insuring against hazard losses on
all of the Mortgage Loans, then, to the extent such policy provides coverage in
an amount equal to the amount required pursuant to Section 3.08 and otherwise
complies with all other requirements of Section 3.08, it shall conclusively be
deemed to have satisfied its obligations as set forth in Section 3.08, it being
understood and agreed that such policy may contain a deductible clause, in which
case the Master Servicer shall, in the event that there shall not have been
maintained on the related Mortgaged Property or REO Property a policy complying
with Section 3.08, and there shall have been a loss which would have been
covered by such policy, deposit in the Collection Account from its own funds the
amount not otherwise payable under the blanket policy because of such deductible
clause. In connection with its activities as master servicer of the Mortgage
Loans, the Master Servicer agrees to prepare and present, on behalf of the
Trustee, claims under any such blanket policy in a timely fashion in accordance
with the terms of such policy. Upon request of the Trustee, the Master Servicer
shall cause to be delivered to the Trustee a certified true copy of such policy
and a statement from the insurer thereunder that such policy shall in no event
be terminated or materially modified without thirty days prior written notice to
the Trustee.

                  SECTION 3.10.     Fidelity Bond, Errors and Omissions
                                    Insurance.

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                  The Master Servicer shall maintain, at its own expense, a
blanket fidelity bond (the "Fidelity Bond") and an errors and omissions
insurance policy, with broad coverage with financially responsible companies on
all officers, employees or other persons acting in any capacity with regard to
the Mortgage Loans to handle funds, money, documents and papers relating to the
Mortgage Loans. The Fidelity Bond and errors and omissions insurance shall be in
the form of the Mortgage Banker's Blanket Bond and shall protect and insure the
Master Servicer against losses, including forgery, theft, embezzlement, fraud,
errors and omissions and negligent acts of such persons. Such Fidelity Bond
shall also protect and insure the Master Servicer against losses in connection
with the failure to maintain any insurance policies required pursuant to this
Agreement and the release or satisfaction of a Mortgage Loan without having
obtained payment in full of the indebtedness secured thereby. No provision of
this Section 3.10 requiring the Fidelity Bond and errors and omissions insurance
shall diminish or relieve the Master Servicer from its duties and obligations as
set forth in this Agreement. The minimum coverage under any such bond and
insurance policy shall be at least equal to the corresponding amounts required
by Freddie Mac in the Freddie Mac Master Servicer's Guide. Upon request of the
Trustee or the NIMS Insurer, the Master Servicer shall cause to be delivered to
the Trustee or the NIMS Insurer, as applicable, a certified true copy of the
Fidelity Bond and errors and omissions insurance policy and a statement from the
surety and the insurer that such Fidelity Bond and errors and omissions
insurance policy shall in no event be terminated or materially modified without
thirty days' prior written notice to the Trustee and the NIMS Insurer.

                  SECTION 3.11.     Due-on-Sale Clauses; Assumption and
                                    Substitution Agreements.

                  When a Mortgaged Property has been or is about to be conveyed
by the Mortgagor, the Master Servicer shall, to the extent it has knowledge of
such conveyance or prospective conveyance, exercise its rights to accelerate the
maturity of the related Mortgage Loan under any "due-on-sale" clause contained
in the related Mortgage or Mortgage Note; provided, however, that the Master
Servicer shall not be required to take such action if in its sole business
judgment the Master Servicer believes it is not in the best interests of the
Trust Fund and shall not exercise any such rights if prohibited by law from
doing so. In such event, the Master Servicer shall make reasonable efforts to
enter into an assumption and modification agreement with the Person to whom such
property has been or is about to be conveyed, pursuant to which such Person
becomes liable under the Mortgage Note and, unless prohibited by applicable law
or the Mortgage, the Mortgagor remains liable thereon. If the foregoing is not
permitted under applicable law, the Master Servicer is authorized to enter into
a substitution of liability agreement with such Person, pursuant to which the
original Mortgagor is released from liability and such Person is substituted as
Mortgagor and becomes liable under the Mortgage Note provided that no such
substitution should be permitted unless such person satisfies the underwriting
criteria of the Master Servicer and has a credit risk rating at least equal to
that of the original Mortgagor. The Mortgage Loan, as assumed, shall conform in
all respects to the requirements, representations and warranties of this
Agreement. The Master Servicer shall notify the Trustee that any such assumption
or substitution agreement has been completed by forwarding to the Trustee the
original copy of such assumption or substitution agreement (indicating the
Mortgage File to which it relates) which copy shall be added by the Trustee to
the related Mortgage File and which shall, for all purposes, be considered a
part of such Mortgage File to the same extent as all other documents and
instruments constituting a part thereof. The Master Servicer shall be
responsible for recording any such assumption or substitution agreements. In
connection with any such assumption or substitution agreement, the Monthly
Payment on the related Mortgage Loan shall not be changed but shall remain as in
effect immediately prior to the assumption or substitution, the stated maturity
or outstanding principal amount of such Mortgage Loan shall not be changed nor
shall any required monthly payments of principal or interest be deferred or
forgiven. Any fee collected by the Master Servicer for consenting to any such
conveyance or entering into an assumption or substitution agreement shall be
retained by or paid to the Master Servicer as additional servicing compensation.

                  Notwithstanding the foregoing paragraph or any other provision
of this Agreement, the Master Servicer shall not be deemed to be in default,
breach or any other violation of its obligations hereunder by reason of any
assumption of a Mortgage Loan by operation of law or by the terms of the
Mortgage Note or any assumption which the Master Servicer may be restricted by
law from preventing, for any reason whatever.

                  SECTION 3.12.     Realization Upon Defaulted Mortgage Loans.

                  (a) The Master Servicer shall, consistent with the Servicing
Standard and specifically the Loss

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Mitigation Action Plan, foreclose upon or otherwise comparably convert the
ownership of properties securing such of the Mortgage Loans as come into and
continue in default and as to which no satisfactory arrangements can be made for
collection of delinquent payments pursuant to Section 3.02. The Master Servicer
shall be responsible for all costs and expenses incurred by it in any such
proceedings; provided, however, that such costs and expenses will be recoverable
as Servicing Advances by the Master Servicer as contemplated in Section 3.05 and
Section 3.13.

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

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

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

                  If the Master Servicer determines, with the consent of the
Guarantor, that it is in the best economic interest of the Certificateholders
and the Guarantor to take such actions as are necessary to bring any such
Mortgaged Property into compliance with applicable environmental laws, or to
take such action with respect to the containment, clean-up or remediation of
hazardous substances, hazardous materials, hazardous wastes, or petroleum based
materials affecting any such Mortgaged Property, then the Master Servicer shall
take such action as it deems to be in the best economic interest of the
Certificateholders and the Guarantor.

                  Any environmental audit report relied upon by the Master
Servicer pursuant to this Section 3.12(b) shall be acceptable to the Guarantor
and prepared by a Person, agreed upon by the Guarantor and the NIMS Insurer;
provided, however, that the Guarantor shall consult with the NIMS Insurer, but
the final decision to approve such Person shall be in the Guarantor's sole
discretion.

                  The cost of the environmental audit report and any
environmental compliance, containment, clean-up or remediation costs
contemplated by this Section 3.12 shall be advanced by the Master Servicer,
subject to the Master Servicer's right to be reimbursed therefor from the
Collection Account as provided in Section 3.05, such right of reimbursement
being prior to the rights of the Certificateholders to receive any amount in the
Collection Account received in respect of the affected Mortgage Loan or other
Mortgage Loans.

                  (c) Proceeds received in connection with any Final Recovery
Determination, as well as any recovery resulting from a partial collection of
Insurance Proceeds or Liquidation Proceeds, in respect of any Mortgage Loan,
will be applied in the following order of priority: first, to reimburse the
Master Servicer for any related unreimbursed Servicing Advances and Advances,
pursuant to Section 3.05(a)(ii) or (iii); second, to accrued and unpaid interest
on the Mortgage Loan, to the date of the Final Recovery Determination, or to the
Due Date prior to the Distribution Date on which such amounts are to be
distributed if not in connection with a Final Recovery Determination; and third,
as a recovery of principal of the Mortgage Loan. If the amount of the recovery
so allocated to interest is less

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<PAGE>

than the full amount of accrued and unpaid interest due on such Mortgage Loan,
the amount of such recovery will be allocated by the Master Servicer as follows:
first, to unpaid Servicing Fees; and second, to the balance of the interest then
due and owing. The portion of the recovery so allocated to unpaid Servicing Fees
shall be reimbursed to the Master Servicer pursuant to Section 3.05(a)(iii).

                  SECTION 3.13.     Title, Management and Disposition of REO
                                    Property.

                  (a) Title. The Master Servicer is hereby authorized and
empowered to take title in, and transfer title from, the name of the Trustee
pursuant to the power of attorney granted in Section 3.01 without further
documentation of the Master Servicer's status as attorney-in-fact for the
Trustee on behalf of the Trust for any action described in this Section 3.13. In
the event that title to a Mortgaged Property is acquired in foreclosure or by
deed in lieu of foreclosure, the deed or certificate of sale shall be taken in
the name of the Trustee, on behalf of the Certificateholders and the Guarantor,
or in the event the Trustee is not authorized or permitted to hold title to real
property in the state where the REO Property is located, or would be adversely
affected under the "doing business" or tax laws of such state by so holding
title, the deed or certificate of sale shall be taken in the name of such Person
or Persons as shall be consistent with an Opinion of Counsel obtained by the
Master Servicer from an attorney duly licensed to practice law in the state
where the REO Property is located. Any Person or Persons holding such title
other than the Trustee shall acknowledge in writing that such title is being
held as nominee for the benefit of the Trustee.

                  (b) REO Account. The Master Servicer shall separately account
for all funds collected and received in connection with the operation of any REO
Property and shall establish and maintain, or cause to be established and
maintained, with respect to REO Properties, an account held in trust for the
Trustee for the benefit of the Certificateholders (the "REO Account"), which
shall be an Eligible Account. The Master Servicer shall be permitted to allow
the Collection Account to serve as the REO Account, subject to separate ledgers
for each REO Property. The Master Servicer shall be entitled to retain or
withdraw any interest income paid on funds deposited in the REO Account as
additional servicing compensation.

                  The Master Servicer shall deposit or cause to be deposited, in
the clearing account (which account must be an Eligible Account) in which it
customarily deposits payments and collections on mortgage loans in connection
with its mortgage loan servicing activities on a daily basis, and in no event
more than one Business Day after the Master Servicer's receipt thereof, and
shall thereafter deposit in the REO Account, in no event more than two Business
Days after the deposit of such funds into the clearing account, all revenues
received with respect to the related REO Property and shall withdraw therefrom
funds necessary for the proper operation, management and maintenance of the REO
Property, including the cost of maintaining any hazard insurance pursuant to
Section 3.08 hereof and the fees of any managing agent acting on behalf of the
Master Servicer. If as of the date title to any REO Property was acquired by the
Master Servicer there were outstanding unreimbursed Servicing Advances or
Advances with respect to the REO Property, the Master Servicer, upon an REO
Disposition of such REO Property, shall be entitled to reimbursement for any
related (a) unpaid Servicing Fees, (b) unreimbursed Advances, and (c)
unreimbursed Servicing Advances from proceeds received in connection with such
REO Disposition. The proceeds from the REO Disposition, net of any payment to
the Master Servicer as provided above, shall be deposited in the REO Account. On
or before each Determination Date, the Master Servicer shall withdraw from each
REO Account and deposit into the Collection Account the net receipts from the
REO Property on deposit in the REO Account and retain any interest.

                  (c) Management and Disposition. Subject only to the REMIC
restrictions set forth in Section 3.13(d) below, the Master Servicer shall use
its best efforts to dispose of the REO Property as promptly as is practically
consistent with the Servicing Standard at such price and upon such terms and
conditions as the Master Servicer deems to be in the best interest of the
Certificateholders and the Guarantor.

                  Notwithstanding the Master Servicer's obligation to the
Certificateholders to manage and operate (including the collection of rents from
existing tenants and management of any leases acquired with the REO Property to
the extent applicable) the REO Property from the date of acquisition until the
date of sale, neither the Master Servicer nor the Trustee shall knowingly:

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                  (i) authorize the Trust Fund to enter into, renew or extend
         any New Lease with respect to any REO Property, if the New Lease by its
         terms will give rise to any income that does not constitute Rents from
         Real Property;

                  (ii) authorize any amount to be received or accrued under any
         New Lease other than amounts that will constitute Rents from Real
         Property;

                  (iii) authorize any construction on any REO Property, other
         than the completion of a building or other improvement thereon, and
         then only if more than ten percent of the construction of such building
         or other improvement was completed before default on the related
         Mortgage Loan became imminent, all within the meaning of Section
         856(e)(4)(B) of the Code; or

                  (iv) authorize any Person to Directly Operate any REO Property
         on any date more than 90 days after its date of acquisition by the
         Trust Fund;

unless, in any such case, (A) the Master Servicer has obtained an Opinion of
Counsel, provided to the Trustee, the Guarantor and the NIMS Insurer, to the
effect that such action will not cause such REO Property to fail to qualify as
"foreclosure property" within the meaning of Section 860G(a)(8) of the Code at
any time that it is held by REMIC 1, and (B) the Master Servicer has received
written notice from the Trustee that it has received written consent from the
Guarantor and the NIMS Insurer that the specific action may be taken.

                  The Master Servicer may contract with any Independent
Contractor for the operation and management of any REO Property, provided that:

                  (i) the terms and conditions of any such contract shall not be
         inconsistent herewith;

                  (ii) any such contract shall require, or shall be administered
         to require, that the Independent Contractor pay all costs and expenses
         incurred in connection with the operation and management of such REO
         Property, including those listed above and remit all related revenues
         (net of such costs and expenses) to the Master Servicer as soon as
         practicable, but in no event later than thirty days following the
         receipt thereof by such Independent Contractor;

                  (iii) none of the provisions of this Section 3.13(c) relating
         to any such contract or to actions taken through any such Independent
         Contractor shall be deemed to relieve the Master Servicer of any of its
         duties and obligations to the Trustee on behalf of the
         Certificateholders with respect to the operation and management of any
         such REO Property; and

                  (iv) the Master Servicer shall be obligated with respect
         thereto to the same extent as if it alone were performing all duties
         and obligations in connection with the operation and management of such
         REO Property.

                  The Master Servicer shall be entitled to enter into any
agreement with any Independent Contractor performing services for it related to
its duties and obligations hereunder for indemnification of the Master Servicer
by such Independent Contractor, and nothing in this Agreement shall be deemed to
limit or modify such indemnification. The Master Servicer shall be solely liable
for all fees owed by it to any such Independent Contractor, irrespective of
whether the Master Servicer's compensation pursuant to Section 3.18 is
sufficient to pay such fees. The Master Servicer shall not engage an Independent
Contractor to engage in any activities that the Master Servicer would not be
permitted to engage in itself in accordance with the other provisions of this
Agreement (including the Loss Mitigation Action Plan).

                  In the event the Master Servicer temporarily rents any REO
Property it shall furnish to the Trustee and the Guarantor, upon reasonable
request, on each Master Servicer Remittance Date, an operating statement for
each REO Property covering the operation of each REO Property for the previous
month. Such operation statement shall be accompanied by such other information
as the Trustee shall reasonably request.

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

                  (d) REMIC Restrictions. The Master Servicer shall have the
full power and authority, subject only to the specific requirements of the
Servicing Standard, to effect, for the Certificateholders, the Guarantor and the
Trust Fund, the prompt disposition and sale of any REO Property in a manner
which does not cause such REO Property to fail to qualify as "foreclosure
property" within the meaning of Section 860G(a)(8) of the Code or result in the
receipt by the related REMIC of any "income from non-permitted assets" within
the meaning of Section 860F(a)(2)(B) of the Code, or any "net income from
foreclosure property" which is subject to taxation under the REMIC Provisions.

                  In the event that the Trust Fund acquires any REO Property as
aforesaid or otherwise in connection with a default or imminent default on a
Mortgage Loan, the Master Servicer shall dispose of such REO Property as soon as
practical and in any event not later than the end of the third taxable year
after the year of its acquisition by the Trust Fund unless the Master Servicer
has received a grant of extension from the Internal Revenue Service to the
effect that, under the REMIC Provisions and any relevant proposed legislation
and under applicable state law, the applicable Trust REMIC may hold REO Property
for a longer period without adversely affecting the REMIC status of such REMIC
or causing the imposition of a federal or state tax upon such REMIC. If the
Master Servicer has received such an extension, then the Master Servicer shall
continue to attempt to sell the REO Property for its fair market value for such
period longer than three years as such extension permits (the "Extended
Period"). If the Master Servicer has not received such an extension and the
Master Servicer is unable to sell the REO Property within the period ending
three months before the end of such third taxable year after its acquisition by
the Trust Fund or if the Master Servicer has received such an extension, and the
Master Servicer is unable to sell the REO Property within the period ending
three months before the close of the Extended Period, the Master Servicer shall,
before the end of the three year period or the Extended Period, as applicable,
(i) purchase such REO Property at a price equal to the REO Property's fair
market value or (ii) auction the REO Property to the highest bidder (which may
be the Master Servicer) in an auction reasonably designed to produce a fair
price prior to the expiration of the three-year period or the Extended Period,
as the case may be. The Trustee shall sign any document or take any other action
reasonably requested by the Master Servicer which the Master Servicer determines
would enable the Master Servicer, on behalf of the Trust Fund, to request such
grant of extension.

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

                  (e) Deficiency Judgments. The Holders of the Class R
Certificates shall be deemed to have purchased the ownership interest held by
the Holders of the Regular Certificates in any Liquidated Mortgage Loan. After
such repurchase, the Master Servicer, if requested by such Certificateholders
and if offered suitable indemnification and reimbursement for expenses, may seek
a deficiency judgment to the extent permitted by law against the Mortgagor under
such Liquidated Mortgage Loan on behalf of the Holders of the Class R
Certificates to the extent of any Realized Loss.

                  SECTION 3.14.     REO Property Inspections.

                  The Master Servicer shall cause each REO Property to be
inspected promptly upon the acquisition of title thereto and shall cause each
REO Property to be inspected at least annually thereafter. The Master Servicer
shall make or cause to be made an electronic report of each such inspection.
Such reports shall be retained by the Master Servicer and versions thereof shall
be forwarded by the Master Servicer to the Trustee and the Guarantor upon
request.

                  SECTION 3.15.     Reports of Foreclosure and Abandonment of
                                    Mortgaged Properties.

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                  On or before May 31st of each year beginning in 2003, the
Master Servicer shall file the reports of foreclosure and abandonment of any
Mortgaged Property required by Section 6050J of the Code and cancellation of
indebtedness required under Section 6050P of the Code with the Internal Revenue
Service. The reports from the Master Servicer shall be made in a timely fashion
and in form and substance sufficient to meet the reporting requirements imposed
by such Section 6050J and 6050P of the Code.

                  SECTION 3.16.     Optional Purchase of Defaulted Mortgage
                                    Loans by the NIMS Insurer or the Master
                                    Servicer.

                  (a) The NIMS Insurer may, at its option, purchase a Mortgage
Loan which has become 90 or more days delinquent or for which the Master
Servicer has accepted a deed in lieu of foreclosure. In exercising this optional
right of repurchase, the NIMS Insurer shall not use any procedure in selecting
Mortgage Loans to be repurchased which is materially adverse to the interests of
the Certificateholders or the Guarantor.

                  (b) During the first full calendar month (but excluding the
last Business Day thereof) following a Mortgage Loan or related REO Property
becoming 90 days or more delinquent, the Master Servicer shall have the option,
but not the obligation to purchase from the Trust Fund any such Mortgage Loan or
related REO Property that is then still 90 days or more delinquent, which the
Master Servicer determines in good faith will otherwise become subject to
foreclosure proceedings (evidence of such determination to be delivered in
writing to the Trustee and the Guarantor prior to purchase).

                  If with respect to any delinquent Mortgage Loan or related REO
Property, the option of the Master Servicer set forth in the preceding paragraph
shall have arisen but the Master Servicer shall have failed to exercise such
option on or before the Business Day preceding the last Business Day of the
calendar month following the calendar month during which such Mortgage Loan or
related REO Property first became 90 days or more delinquent, then such option
shall automatically expire; provided, however, that if any such Mortgage Loan
shall cease to be 90 days or more delinquent but then subsequently shall again
become 90 days or more delinquent, then the Master Servicer shall be entitled to
another repurchase option with respect to such Mortgage Loan (and the related
REO Property) as provided in the preceding paragraph.

                  Notwithstanding the foregoing: (i) if the Master Servicer
purchases any delinquent Mortgage Loans pursuant to this Section 3.16(b), it
must purchase Mortgage Loans that are delinquent the greatest number of days
before it may purchase any that are delinquent any fewer number of days; (ii) if
the Master Servicer purchases some but not all Mortgage Loans that are
delinquent any given number of days, it must purchase Mortgage Loans having the
same delinquency status in the order of lowest Principal Balance to highest
Principal Balance; (iii) if with respect to any Distribution Date, the Guarantor
shall have consented in writing to the calculation of the Overcollateralization
Target Amount without regard to delinquency status of the Mortgage Pool, then
the Master Servicer shall not have the right to purchase any delinquent Mortgage
Loans pursuant to this Section 3.16(b) during the related Prepayment Period;
(iv) the Master Servicer may at any time relinquish its rights to purchase
delinquent Mortgage Loans pursuant to this Section 3.16(b) in writing delivered
to the Trustee and the Guarantor, and from and after the taking of such action
by the Master Servicer, the provisions of this Section 3.16(b) permitting the
purchase by the Master Servicer shall no longer be of any force or effect.

                  (c) Any Mortgage Loan or REO Property to be purchased pursuant
to Section 3.16(a)or (b) shall be purchased at a price equal to the Purchase
Price. Any purchase of a Mortgage Loan or the related REO Property pursuant to
Section 3.16(a) by the NIMS Insurer shall be accomplished by remittance of the
Purchase Price to the Master Servicer for deposit in the Collection Account. Any
purchase of a Mortgage Loan or the related REO Property pursuant to Section
3.16(b) by the Master Servicer shall be accomplished by deposit of the Purchase
Price in the Collection Account. Upon written certification of such deposit, the
Trustee shall release, or cause a Custodian to release, the related Mortgage
File to the purchaser (or its designee) and shall execute and deliver such
instruments of transfer or assignment, in each case without recourse, as the
purchaser shall furnish and as shall be necessary to vest in the purchaser title
to any Mortgage Loan or related REO Property repurchased pursuant hereto.

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                  SECTION 3.17.     Trustee to Cooperate; Release of Files.

                  (a) Upon the payment in full of any Mortgage Loan, or the
receipt by the Master Servicer of a notification that payment in full shall be
escrowed in a manner customary for such purposes, the Master Servicer shall
deliver to the Trustee, in written (with two executed copies) or electronic
format, a completed Request for Release or such other form supplied by the
Master Servicer provided that it does not differ from the substantive content of
the Request for Release (which certification shall include a statement to the
effect that all amounts received or to be received in connection with such
payment which are required to be deposited in the Collection Account pursuant to
Section 3.04 have been or will be so deposited) signed by a Servicing Officer
(or in a mutually agreeable electronic format that will, in lieu of a signature
on its face, originate from a Servicing Officer) and shall request delivery to
it of the Mortgage File. Upon receipt of such certification and request, the
Trustee shall, within three Business Days, release the related Mortgage File to
the Master Servicer. The Trustee agrees to indemnify the Master Servicer, out of
its own funds, for any loss, liability or expense incurred by the Master
Servicer as a direct result of the negligence or wilful misconduct by the
Trustee in releasing the related Mortgage File as provided above. Upon any such
payment in full, or the receipt of such certification, the Seller, the Guarantor
and the Trustee hereby authorize and empower the Master Servicer to execute an
instrument of satisfaction regarding the Mortgaged Property relating to such
Mortgage, which instrument of satisfaction shall be delivered to the Person or
Persons entitled thereto against receipt therefor of payment in full. No
expenses incurred in connection with any instrument of satisfaction or deed of
reconveyance shall be chargeable to the Collection Account or the Distribution
Account.

                  (b) From time to time and as appropriate in the servicing of
any Mortgage Loan, including, without limitation, foreclosure or other
comparable conversion of a Mortgage Loan or collection under any insurance
policy relating to a Mortgage Loan, the Trustee shall (except in the case of the
payment or liquidation pursuant to which the related Mortgage File is released
to an escrow agent or an employee, agent or attorney of the Trustee), upon
written request of the Master Servicer and delivery to the Trustee, in written
(with two executed copies) or electronic format, of a Request for Release, or
such other form supplied by the Master Servicer provided that it does not differ
from the substantive content of the Request for Release, signed by a Servicing
Officer (or in a mutually agreeable electronic format that will, in lieu of a
signature on its face, originate from a Servicing Officer), release the related
Mortgage File to the Master Servicer within three Business Days and shall
execute such documents as shall be necessary to the prosecution of any such
proceedings, including, without limitation, an assignment without recourse of
the related Mortgage to the Master Servicer. Such receipt shall obligate the
Master Servicer to return the Mortgage File to the Trustee when the need
therefor by the Master Servicer no longer exists unless the Mortgage Loan shall
be liquidated, in which case, upon receipt of a Request for Release, in written
(with two executed copies) or electronic format, evidencing such liquidation,
upon request, the receipt shall be released by the Trustee to the Master
Servicer.

                  (c) Upon written certification of a Servicing Officer, the
Trustee shall execute and deliver to the Master Servicer any court pleadings,
requests for trustee's sale or other documents reasonably necessary to the
foreclosure or trustee's sale in respect of a Mortgaged Property or to any legal
action brought to obtain judgment against any Mortgagor on the Mortgage Note or
Mortgage or to obtain a deficiency judgment, or to enforce any other remedies or
rights provided by the Mortgage Note or Mortgage or otherwise available at law
or in equity. Each such certification shall include a request that such
pleadings or documents be executed by the Trustee and a statement as to the
reason such documents or pleadings are required and that the execution and
delivery thereof by the Trustee will not invalidate or otherwise affect the lien
of the Mortgage, except for the termination of such a lien upon completion of
the foreclosure or trustee's sale.

                  SECTION 3.18.     Servicing Compensation.

                  As compensation for the activities of the Master Servicer
hereunder, the Master Servicer shall be entitled to the Servicing Fee with
respect to each Mortgage Loan. Such Servicing Fees shall be retained as
contemplated in Section 3.04(b)(ii); provided, however, that the Master Servicer
shall be entitled to recover unpaid Servicing Fees out of Late Collections,
Insurance Proceeds or Liquidation Proceeds to the extent permitted by Section
3.05(a)(ii), out of amounts derived from the operation and sale of an REO
Property to the extent permitted by Section 3.13 and from general funds in the
Collection Account to the extent permitted by Section 3.05(a)(iii). The right to
receive the Servicing

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Fee may not be transferred in whole or in part except in connection with the
transfer of all of the Master Servicer's responsibilities and obligations under
this Agreement; provided, however, that the Master Servicer may pay from the
Servicing Fee any amounts due to a subservicer pursuant to a subservicing
agreement entered into under Section 6.06.

                  Additional servicing compensation in the form of assumption
fees, late payment charges, modification fees, extension fees, insufficient
funds charges, ancillary income or otherwise (other than Prepayment Charges)
shall be retained by the Master Servicer only to the extent such fees or charges
are received by the Master Servicer. The Master Servicer shall also be entitled,
pursuant to Section 3.05(a)(vi), to withdraw from the Collection Account,
pursuant to Section 3.04(h), to withdraw from any Escrow Account and pursuant to
Section 3.13(b) to withdraw from any REO Account, as additional servicing
compensation, interest or other income earned on deposits therein, subject to
Section 3.06. The Master Servicer shall be entitled to any Prepayment Interest
Excess, which it may withdraw from the Collection Account pursuant to Section
3.05(a)(iv).

                  SECTION 3.19.     Annual Statement as to Compliance.

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

                  SECTION 3.20.     Annual Independent Certified Public
                                    Accountants' Reports.

                  Not later than March 15th following the end of each calendar
year, the Master Servicer, at its expense, shall cause a nationally recognized
firm of independent certified public accountants to furnish to the Trustee, the
Depositor, the NIMS Insurer and the Guarantor a report stating that (i) it has
obtained a letter of representation regarding certain matters from the
management of the Master Servicer which includes an assertion that the Master
Servicer has complied with certain residential mortgage loan servicing
standards, identified in the Uniform Single Attestation Program for Mortgage
Bankers established by the Mortgage Bankers Association of America, with respect
to the servicing of residential mortgage loans during the most recently
completed fiscal year and (ii) on the basis of an examination conducted by such
firm in accordance with standards established by the American Institute of
Certified Public Accountants, such representation is fairly stated in all
material respects, subject to such exceptions and other qualifications that may
be appropriate. In rendering its report such firm may rely, as to matters
relating to the direct servicing of residential mortgage loans by subservicers,
upon comparable reports of firms of independent certified public accountants
rendered on the basis of examinations conducted in accordance with the same
standards (rendered within one year of such report) with respect to those
subservicers. Immediately upon receipt of such report, the Master Servicer shall
furnish a copy of such report to the Trustee, the Depositor, the NIMS Insurer
and the Guarantor. Copies of such statement shall be provided by the Trustee to
any Certificateholder upon request at the Master Servicer's expense, provided
that such statement is delivered by the Master Servicer to the Trustee.

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

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

                  (b) If any Mortgage Loan (i) is in foreclosure, (ii) defaults
on its first Monthly Payment and

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remains delinquent for 60 days or more, (iii) becomes delinquent during the
first twelve months of the term thereof and remains delinquent for 60 days or
more or (iv) is a Qualified Substitute Mortgage Loan, the Master Servicer will
forward to the Guarantor, upon reasonable request, copies of the contents of the
related Mortgage File and all underwriting documentation with respect to such
Mortgage Loan that is required to be delivered pursuant to this Agreement.

                  If the Guarantor determines, after consultation with the
Seller, that such Mortgage Loan was not originated generally in accordance with
the Seller's Underwriting Guidelines attached hereto as Exhibit L in any
material respect, then the Seller shall follow the procedures set forth in
Section 2.03. Such action on the part of the Seller in accordance with Section
2.03 shall take place within 90 days of the Seller having been notified by the
Guarantor of the need to act pursuant to Section 2.03; provided, however, that
no such procedure shall be followed if such action may (A) result in the
imposition of taxes on "prohibited transactions" of the Trust, as defined in
Section 860F of the Code, or (B) contributions to any Trust REMIC after the
"startup day," as defined in Section 860G(d) of the Code, or (C) cause the
portion of the Trust Fund assets with respect to which a REMIC election was made
to fail to qualify as a REMIC at any time any Certificate is outstanding.

                  (c) Within 90 days after the last Subsequent Transfer Date, or
such later time as the Master Servicer and the Guarantor may agree, the
Guarantor will be permitted, upon reasonable notice and during normal business
hours, at the office of the Master Servicer, to review copies of the contents of
the Mortgage Files and the underwriting documentation that is required to be
delivered to the Trustee pursuant hereto with respect to up to the greater of
(i) 800 of the Mortgage Files and (ii) 10% (by number) of the Mortgage Loans (a
"Mortgage Loan Sample"), in order to ascertain whether each such Mortgage Loan
was originated generally in accordance with the Seller's underwriting guidelines
in any material respect. In addition, the Guarantor will be permitted, upon
reasonable notice and during normal business hours, at the office of the Master
Servicer, to review copies of the contents of the Mortgage Files and the
underwriting documentation that is required to be delivered to the Trustee
pursuant hereto with respect to an additional 75 of the Mortgage Files which are
not part of the foregoing Mortgage Loan Sample. If, as a result of such
investigation, the Guarantor determines (after the appeals process set forth in
the Freddie Mac Single Family Seller/Servicer Guide) that more than 20% (by
number) of the Mortgage Loans in such Mortgage Loan Sample were not so
underwritten, the Master Servicer will permit the Guarantor to review an
additional Mortgage Loan Sample in accordance with the same procedures until the
Guarantor has reviewed a Mortgage Loan Sample that contains fewer than 20% (by
number) of Mortgage Loans that were not originated generally in accordance with
the Seller's underwriting guidelines in any material respect. Any out-of-pocket
expenses incurred by the Master Servicer related to such review shall be
reimbursed by the Seller.

                  Notwithstanding the foregoing, the Guarantor shall have the
right to collect data on an additional 1,200 Mortgage Loans over and above the
Mortgage Loans reviewed in the procedures described in the immediately preceding
paragraph.

                  (d) For a period of two years from the Closing Date, the
Guarantor may contact the Seller to confirm that the Seller continues to
actively engage in a program to originate mortgage loans to low-income families
and to obtain other non-proprietary information about the Seller's activities
that may assist the Guarantor in completing its own regulatory requirements. The
Seller shall use its best efforts to provide such information to the Guarantor.

                  (e) In addition, the Master Servicer shall provide a copy of
this Agreement, promptly following receipt of a written request therefor, to any
investor in the certificates issued by the Guarantor, which have been offered
pursuant to the Offering Circular and which are backed by the Guaranteed
Certificates.

                  SECTION 3.22.     Solicitations.

                  From and after the Closing Date, the Master Servicer agrees
that it will not take any action or permit or cause any action to be taken by
any of its agents and Affiliates, or by any independent contractors or
independent mortgage brokerage companies on the Master Servicer's behalf, to
personally, by telephone, mail or electronic mail, solicit the Mortgagor under
any Mortgage Loan for the purpose of refinancing such Mortgage Loan; provided,
that the Master Servicer may solicit any Mortgagor for whom the Master Servicer
has received a request for verification of

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mortgage, a request for demand for payoff, a mortgagor initiated written or
verbal communication indicating a desire to prepay the related Mortgage Loan, or
the mortgagor initiates a title search; provided further, it is understood and
agreed that promotions undertaken by the Master Servicer or any of its
Affiliates which (i) concern optional insurance products or other additional
products or (ii) are directed to the general public at large, including, without
limitation, mass mailings based on commercially developed mailing lists,
billboards, newspaper, radio, television, the internet and website
advertisements shall not constitute solicitation under this Section, nor is the
Master Servicer prohibited from responding to unsolicited requests or inquiries
made by a Mortgagor or an agent of a Mortgagor. Furthermore, the Master Servicer
shall be permitted to include in its monthly statements to borrowers or
otherwise, statements regarding the availability of the Master Servicer's
services with respect to refinancing mortgage loans.

                  SECTION 3.23.     Advance Facility.

                  (a) The Master Servicer and/or the Trustee on behalf of the
Trust Fund, in either case, with the consent of the Guarantor and NIMS Insurer,
is hereby authorized to enter into a facility (an "Advance Facility") with any
Person which provides that such Person (an "Advancing Person") may fund Advances
and/or Servicing Advances under this Agreement, although no such facility shall
reduce or otherwise affect the Master Servicer's obligation to fund such
Advances and/or Servicing Advances. If the Master Servicer enters into such an
Advance Facility pursuant to this Section 3.23, upon reasonable request of the
Advancing Person, the Trustee shall execute a letter of acknowledgment,
confirming its receipt of notice of the existence of such Advance Facility.

                  To the extent that an Advancing Person funds any Advance or
any Servicing Advance and provides the Trustee and the Guarantor with written
notice acknowledged by the Master Servicer that such Advancing Person is
entitled to reimbursement directly from the amounts held on behalf of the Trust
Fund by the Trustee pursuant to the terms of the Advance Facility, such
Advancing Person shall be entitled to receive reimbursement pursuant to this
Agreement for such amount to the extent provided in Section 3.23(b). Such notice
from the Advancing Person must specify the amount of the reimbursement, the
Section of this Agreement that permits the applicable Advance or Servicing
Advance to be reimbursed and the section(s) of the Advance Facility that entitle
the Advancing Person to request reimbursement from the amounts held on behalf of
the Trust Fund by the Trustee rather than by the Master Servicer, and include
the Master Servicer's acknowledgment thereto or proof of an event of default
under the Advance Facility. The Trustee shall be entitled to rely without
independent investigation on the Advancing Person's notice provided pursuant to
this Section 3.23. An Advancing Person whose obligations hereunder are limited
to the funding of Advances and/or Servicing Advances shall not be required to
meet the qualifications of a Master Servicer or a subservicer pursuant to
Section 6.06 hereof and will not be deemed to be a subservicer under this
Agreement. If the terms of an Advance Facility proposed to be entered into with
an Advancing Person by the Trust Fund would not, in the absence of the
Guarantee, materially and adversely affect the interests of any
Certificateholder, then the NIMS Insurer shall not withhold its consent to the
Trust Fund's entering such facility.

                  (b) If an Advancing Person is entitled to reimbursement for
any particular Advance and/or Servicing Advance as set forth in Section 3.23(a),
then the Master Servicer shall not be permitted to reimburse itself therefor
under Section 3.05(a)(ii), Section 3.05(a)(iii), Section 3.05(a)(v) or Section
3.05(a)(vi), but instead the Master Servicer shall include such amounts in the
applicable remittance to the Trustee made pursuant to Section 3.04(g). The
Trustee is hereby authorized to pay to an Advancing Person reimbursements for
Advances and/or Servicing Advances from the Distribution Account to the same
extent the Master Servicer would have been permitted to reimburse itself for
such Advances and/or Servicing Advances in accordance with Section 3.05(a)(ii),
Section 3.05(a)(iii), Section 3.05(a)(v) or Section 3.05(a)(vi), as the case may
be, had the Master Servicer made such Advance and/or Servicing Advance. Unless
otherwise consented to by the Guarantor, an Advancing Person is not entitled to
be reimbursed by the Trustee for any unreimbursed Advances from funds held in
the Collection Account for any future distribution pursuant to Section 4.04(b)
or 3.05(a)(vii).

                  (c) All Advances and Servicing Advances made pursuant to the
terms of this Agreement shall be deemed made and shall be reimbursed on a "first
in first out" (FIFO) basis.

                  (d) In the event the Master Servicer is terminated pursuant to
Section 7.01, the Advancing Person

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shall succeed to the terminated Master Servicer's right of reimbursement set
forth in Section 7.02(c) to the extent of such Advancing Person's financing of
Advances or Servicing Advances hereunder then remaining unreimbursed.

                  SECTION 3.24.     PMI Policy; Claims Under the PMI Policy.

                  Notwithstanding anything to the contrary elsewhere in this
Article III, the Master Servicer shall not agree to any modification or
assumption of a PMI Mortgage Loan or take any other action with respect to a PMI
Mortgage Loan that could result in denial of coverage under the PMI Policy. The
Master Servicer shall notify the PMI Insurer that the Trustee, on behalf of the
Certificateholders, is the Insured, as that term is defined in the PMI Policy,
of each PMI Mortgage Loan. The Master Servicer shall, on behalf of the Trustee,
prepare and file on a timely basis with the PMI Insurer, with a copy to the
Trustee, all claims which may be made under the PMI Policy with respect to the
PMI Mortgage Loans. Consistent with all rights and obligations hereunder, the
Master Servicer shall service each PMI Mortgage Loan in accordance with the
terms of the PMI Policy, including, but not limited to taking all actions
required under the PMI Policy as a condition to the payment of any such claim.
Any amount received from the PMI Insurer with respect to any such PMI Mortgage
Loan shall be deposited by the Master Servicer into the Collection Account in
accordance with Section 3.04(b). Furthermore, upon the receipt of written
direction from the Guarantor, the Trustee shall replace the PMI Insurer with the
insurer included in such written direction, in the event that (i) both S&P or
Moody's downgrade the claims paying ability of the PMI Insurer below "BBB-," in
the case of S&P and "Baa3," in the case of Moody's, (ii) (A) S&P downgrades the
claims paying ability of the PMI Insurer below "BBB-," and Moody's downgrades
the claims paying ability of the PMI Insurer below "A3" or (B) Moody's
downgrades the claims paying ability of the PMI Insurer below "Baa3" and S&P
downgrades the claims paying ability of the PMI Insurer below "A-" or (iii) the
PMI Insurer assigns its obligations under the PMI Policy without the consent of
the Guarantor. Upon such replacement, the Trustee shall notify each party hereto
and the NIMS Insurer of the identity of the new PMI Insurer. If the PMI Insurer
fails to make a payment under the PMI Policy as a result of a breach of the
Master Servicer's obligations under this Section 3.24, the Master Servicer shall
deposit an amount into the Collection Account equal to the portion of the claim
not paid by the PMI Insurer from the Servicer's own funds without any right of
reimbursement.

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                                   ARTICLE IV

                                  FLOW OF FUNDS

                  SECTION 4.01.     Distributions.

                  (a) On each Distribution Date the Trustee shall withdraw that
portion of Available Funds consisting of the Interest Remittance Amount from the
Distribution Account to make the following disbursements and transfers in the
following order of priority:

                  (i) to the Guarantor, (a) the Guarantee Fee payable with
         respect to the Guaranteed Certificates and (b) the Guarantor
         Reimbursement Amount and any other amounts owed to the Guarantor under
         this Agreement as specified to the Trustee by the Guarantor;

                  (ii) concurrently, to the Holders of the Class A Certificates
         and the Class S Certificates, the related Interest Distributable Amount
         for each such Class for such Distribution Date, on a PRO RATA basis
         based upon the entitlement of each such Class pursuant to this clause
         (ii);

                  (iii) to the Holders of the Class M-1 Certificates, the
         related Interest Distributable Amount for such Class for such
         Distribution Date; and

                  (iv) to the Holders of the Class M-2 Certificates, the related
         Interest Distributable Amount for such Class for such Distribution
         Date.

                  (b) On each Distribution Date (a) prior to the Stepdown Date
or (b) on which a Trigger Event is in effect, the Principal Distribution Amount
will be distributed in the following order of priority:

                  (i) to the Guarantor, (a) the Guarantee Fee payable with
         respect to the Guaranteed Certificates and (b) the Guarantor
         Reimbursement Amount and any other amounts owed to the Guarantor under
         this Agreement as specified to the Trustee by the Guarantor, in each
         case, to the extent not paid pursuant to Section 4.01(a)(i);

                  (ii) concurrently, to the Holders of the Class AF Certificates
         and the Class AV Certificates, PRO RATA based on the Class AF
         Allocation Percentage and the Class AV Allocation Percentage,
         respectively, until the Certificate Principal Balances thereof have
         been reduced to zero;

                  (iii) to the Holders of the Class M-1 Certificates, until the
         Certificate Principal Balance thereof has been reduced to zero; and

                  (iv) to the Holders of the Class M-2 Certificates, until the
         Certificate Principal Balance thereof has been reduced to zero.

                  (c) On each Distribution Date (a) on or after the Stepdown
Date and (b) on which a Trigger Event is not in effect, the Principal
Distribution Amount will be distributed in the following order of priority:

                  (i) to the Guarantor, (a) the Guarantee Fee payable with
         respect to the Guaranteed Certificates and (b) the Guarantor
         Reimbursement Amount and any other amounts owed to the Guarantor under
         this Agreement as specified to the Trustee by the Guarantor, in each
         case, to the extent not paid pursuant to Section 4.01(a)(i);

                  (ii) concurrently, to the Holders of the Class AF Certificates
         and the Class AV Certificates, the Class AF Principal Distribution
         Amount and the Class AV Principal Distribution Amount, respectively,
         until the Certificate Principal Balances thereof have been reduced to
         zero;

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                  (iii) to the Holders of the Class M-1 Certificates, the Class
         M-1 Principal Distribution Amount, until the Certificate Principal
         Balance thereof has been reduced to zero; and

                  (iv) to the Holders of the Class M-2 Certificates, the Class
         M-2 Principal Distribution Amount, until the Certificate Principal
         Balance thereof has been reduced to zero.

                  (d) On each Distribution Date, the Net Monthly Excess Cashflow
will be distributed as follows:

                  (i) to the Holders of the class or classes of Certificates
         then entitled to receive distributions in respect of principal, in an
         amount equal to the Extra Principal Distribution Amount, distributable
         as part of the Principal Distribution Amount as described above;

                  (ii) to the Holders of the Class M-1 Certificates, in an
         amount equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                  (iii) to the Holders of the Class M-2 Certificates, in an
         amount equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                  (iv) to the Net WAC Rate Carryover Reserve Account, first, an
         amount, if any, that when added to the amount on deposit in the Net WAC
         Rate Carryover Reserve Account immediately prior to such Distribution
         Date will cause the amount on deposit in the Net WAC Rate Carryover
         Reserve Account to equal $1,000, and second, an amount equal to the Net
         WAC Rate Carryover Amount, if any, for the Class A Certificates, the
         Mezzanine Certificates and the Class S Certificates for such
         Distribution Date, after taking into account amounts received under the
         Cap Contracts for the benefit of the Mezzanine Certificates;

                  (v) to the Master Servicer in respect of any amounts due to it
         from the Trust Fund pursuant to Section 6.03 and not previously
         reimbursed;

                  (vi) to the Trustee in respect of any amounts due to it from
         the Trust Fund pursuant to Section 7.02(a) and Section 8.05 and not
         previously reimbursed;

                  (vii) to the Holders of the Class CE Certificates, the
         Interest Distributable Amount for such Class for such Distribution Date
         and any Subsequent Mortgage Loan Interest;

                  (viii) to the Holders of the Class CE Certificates, the
         remaining Overcollateralization Release Amount for such Distribution
         Date, until the Certificate Principal Balance of the Class CE
         Certificates has been reduced to zero; and

                  (ix) on each Distribution Date, any remaining amounts, after
         giving effect to the distributions in clauses (i) through (viii) above,
         will be paid to the Holders of the Class R Certificates; provided that
         if such Distribution Date follows the Prepayment Period in which will
         occur the expiration of the latest expiring Prepayment Charge on any
         Mortgage Loan (as indicated on the Prepayment Charge Schedule as the
         same shall have been updated after the Funding Period to reflect the
         addition of the Subsequent Mortgage Loans), then any such remaining
         amounts will be distributed first, to the Holders of the Class P
         Certificates, until the Certificate Principal Balance of the Class P
         Certificates has been reduced to zero; and second, to the Holders of
         the Class R Certificates.

                  On each Distribution Date, after making the distributions of
the Available Funds as set forth above, the Trustee will first, withdraw from
the Net WAC Rate Carryover Reserve Account all income from the investment of
funds in the Net WAC Rate Carryover Reserve Account and distribute such amount
to the Holders of the Class CE Certificates, and second, withdraw from the Net
WAC Rate Carryover Reserve Account, to the extent of amounts remaining on
deposit therein, the amount of any Net WAC Rate Carryover Amount for the Class A
Certificates, the Mezzanine Certificates and the Class S Certificates for such
Distribution Date and distribute such amount first,

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concurrently to the Class A Certificates and the Class S Certificates on a PRO
RATA basis based on the Net WAC Rate Carryover Amount of each such Class, until
each such amount has been paid in full; second, to the Class M-1 Certificates
and third, to the Class M-2 Certificates.

                  On each Distribution Date, all amounts representing Prepayment
Charges in respect of the Mortgage Loans received during the related Prepayment
Period and any Master Servicer Prepayment Charge Amounts paid by the Master
Servicer during the related Prepayment Period will be withdrawn from the
Distribution Account and distributed by the Trustee to the Holders of the Class
P Certificates and shall not be available for distribution to the Holders of any
other Class of Certificates. The payment of the foregoing amounts to the Holders
of the Class P Certificates shall not be applied to reduce the Certificate
Principal Balances thereof.

                  (b) The Trustee shall make distributions in respect of a
Distribution Date to each Certificateholder of record on the related Record Date
(other than as provided in Section 10.01 respecting the final distribution), in
the case of Certificateholders of the Regular Certificates, by wire transfer by
12:00 noon (New York time). The failure of the Trustee to make distributions to
Certificateholders in accordance with Section 4.01(a) due to the negligence or
wilful misconduct of the Trustee will result in the Trustee being obligated to
pay to the Certificateholders an amount equal to the interest lost as a result
of the Trustee's failure to make such distribution, plus a $100 fee.
Distributions among Certificateholders shall be made in proportion to the
Percentage Interests evidenced by the Certificates held by such
Certificateholders.

                  Each distribution with respect to a Book-Entry Certificate
shall be paid to the Depository, as Holder thereof, and the Depository shall be
responsible for crediting the amount of such distribution to the accounts of its
Depository Participants in accordance with its normal procedures. Each
Depository Participant shall be responsible for disbursing such distribution to
the Certificate Owners that it represents and to each indirect participating
brokerage firm (a "brokerage firm" or "indirect participating firm") for which
it acts as agent. Each brokerage firm shall be responsible for disbursing funds
to the Certificate Owners that it represents. None of the Trustee, the
Certificate Registrar, the Depositor or the Master Servicer shall have any
responsibility therefor except as otherwise provided by this Agreement or
applicable law.

                  SECTION 4.02.     The Guarantee.

                  On each Distribution Date following receipt of a statement (as
set forth in Section 4.05) that indicates a Deficiency Amount for such
Distribution Date, the Guarantor shall distribute a Guarantor Payment in an
aggregate amount equal to the Deficiency Amount for such Distribution Date
directly to the Holders of the Guaranteed Certificates, without first depositing
such amount in the Distribution Account, as follows: (i) the portion of any such
Deficiency Amount related to clause (i) of the definition of Deficiency Amount
shall be distributed to the Class A Certificateholders, and the Class S
Certificateholders on a PRO RATA basis based on the Interest Distributable
Amount payable on such Certificates with respect to such Distribution Date; and
(ii) the portion of any such Deficiency Amount related to clause (ii) of the
definition of Deficiency Amount shall be distributed to the Class A
Certificateholders and shall be allocated (a) among the Classes of Class AF
Certificates in the priority as described in Section 4.01(c) and (b) on a PRO
RATA basis between the Class AF Certificates and the Class AV Certificates based
on the Class AF Allocation Percentage and the Class AV Allocation Percentage,
respectively.

                  SECTION 4.03.     Statements.

                  (a) On each Distribution Date, based, as applicable, on
information provided to it by the Master Servicer, the Trustee shall prepare and
make available by electronic means to each Holder of the Regular Certificates,
the Master Servicer, the NIMS Insurer, the Guarantor and the Rating Agencies, a
statement as to the distributions to be made on such Distribution Date:

                  (i) the amount of the distribution to be made on such
         Distribution Date to the Holders of each Class of the Regular
         Certificates (other than the Class S Certificates), separately
         identified, allocable to principal and the amount of the distribution
         to be made to the Holders of the Class P Certificates allocable to

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         Prepayment Charges and Master Servicer Prepayment Charge Amounts;

                  (ii) the amount of the distribution to be made on such
         Distribution Date to the Holders of the Class A Certificates, the
         Mezzanine Certificates, the Class S Certificates and the Class CE
         Certificates allocable to interest, and the calculation thereof;

                  (iii) the Overcollateralized Amount, the Overcollateralization
         Release Amount, the Overcollateralization Deficiency Amount and the
         Overcollateralization Target Amount for such Distribution Date;

                  (iv) the aggregate amount of servicing compensation received
         by the Master Servicer with respect to the related Due Period and such
         other customary information as the Trustee deems necessary or
         desirable, or which a Certificateholder reasonably requests, to enable
         Certificateholders to prepare their tax returns;

                  (v) the aggregate amount of Advances with respect to the
         Mortgage Loans in each Loan Group for the related Due Period;

                  (vi) the Pool Balance and the Principal Balance of the
         Mortgage Loans in each Loan Group (after giving effect to the principal
         portion of Monthly Payments due during the related Due Period, to the
         extent received or advanced, and unscheduled collections of principal
         received during the related Prepayment Period);

                  (vii) as of the related Determination Date, (A) the number of
         Mortgage Loans in each Loan Group, (B) the weighted average remaining
         term to maturity of the Mortgage Loans in each Loan Group as of the
         first day of the most recently ended Due Period and (D) the weighted
         average Mortgage Rate of the Mortgage Loans in each Loan Group as of
         the first day of the most recently ended Due Period;

                  (viii) the number and aggregate unpaid principal balance of
         Mortgage Loans in each Loan Group that were (A) Delinquent (exclusive
         of Mortgage Loans in bankruptcy or foreclosure and REO Properties) (1)
         30 to 59 days, (2) 60 to 89 days and (3) 90 or more days, (B) as to
         which foreclosure proceedings have been commenced and Delinquent, (C)
         in bankruptcy and Delinquent, in each case as of the close of business
         on the last day of the calendar month preceding such Distribution Date
         and (D) REO Properties;

                  (ix) the total number and cumulative principal balance of all
         REO Properties in each Loan Group as of the last day of the Prepayment
         Period preceding such Distribution Date;

                  (x) the aggregate amount of Principal Prepayments made during
         the related Prepayment Period;

                  (xi) the aggregate amount of Realized Losses incurred during
         the related Prepayment Period and the cumulative amount of Realized
         Losses in the Mortgage Pool;

                  (xii) the aggregate amount of extraordinary Trust Fund
         expenses withdrawn from the Collection Account or the Distribution
         Account for such Distribution Date;

                  (xiii) the Certificate Principal Balance of the Class A
         Certificates, the Mezzanine Certificates, the Class CE Certificates and
         the Class P Certificates and the Notional Amount of the Class S
         Certificates, after giving effect to the distributions made on such
         Distribution Date;

                  (xiv) the Interest Distributable Amount for such Distribution
         Date and the respective portions thereof, if any, remaining unpaid
         following the distributions made in respect of the Class A
         Certificates, the Mezzanine Certificates and the Class S Certificates
         on such Distribution Date;

                  (xv) the aggregate amount of any Prepayment Interest
         Shortfalls for such Distribution Date to the extent not covered by
         payments by the Master Servicer pursuant to Section 4.04, and the
         Unpaid Interest

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         Shortfall Amount, if any, for each Class of Regular Certificates (other
         than the Class P Certificates) for such Distribution Date;

                  (xvi) the Guarantee Fee to be paid to the Guarantor with
         respect to the Guaranteed Certificates for such Distribution Date;

                  (xvii) the Maximum Cap Rate for such Distribution Date;

                  (xviii) the Net WAC Rate Carryover Amount, if any, for the
         Class A Certificates, the Mezzanine Certificates and the Class S
         Certificates for such Distribution Date, and the amount of such Net WAC
         Rate Carryover Amount remaining unpaid after reimbursements therefor on
         such Distribution Date and any amounts received under the Cap Contracts
         for the benefit of the Mezzanine Certificates;

                  (xix) any Overcollateralization Deficiency Amount prior to
         giving effect to the distribution of the Extra Principal Distribution
         Amount on such Distribution Date;

                  (xx) the cumulative Realized Losses as a percentage of the
         Maximum Collateral Amount and the Three-Month Rolling Delinquency
         Percentage;

                  (xxi) the Available Funds for such Distribution Date;

                  (xxii) the Pass-Through Rate for each Class of Regular
         Certificates (other than the Class P Certificates) for such
         Distribution Date;

                  (xxiii) the number and aggregate principal balance of all
         Subsequent Mortgage Loans added to each Loan Group during the preceding
         Prepayment Period;

                  (xxiv) the amount on deposit in each Pre-Funding Account
         immediately prior to the related Prepayment Period, the amount
         withdrawn from each Pre-Funding Account during the related Prepayment
         Period and the amount remaining on deposit in each Pre-Funding Account
         as of the end of the related Prepayment Period and as of such
         Distribution Date;

                  (xxv) the amount on deposit in each Interest Coverage Account
         immediately prior to such Distribution Date, the amount withdrawn from
         each Interest Coverage Account for such Distribution Date and included
         in the Available Funds for such Distribution Date, the amount remaining
         on deposit after taking into account such withdrawal and the maximum
         amount that (assuming sufficient funds therein) would be withdrawn from
         each Interest Coverage Account on future Distribution Dates and
         included in the Available Funds for such Distribution Dates in
         accordance with Section 4.11(c) if the Funding Period were to end on
         December 10, 2002 and no Subsequent Group I Mortgage Loans or
         Subsequent Group II Mortgage Loans are purchased for inclusion in Loan
         Group I or Loan Group II, respectively, after the end of the Prepayment
         Period relating to the current Distribution Date;

                  (xxvi) for the distribution occurring on the Distribution Date
         immediately following the end of the Funding Period, the balance on
         deposit in the Group I Pre-Funding Account and the Group II Pre-Funding
         Account that has not been used to purchase Subsequent Group I Mortgage
         Loans and Subsequent Group II Mortgage Loans, respectively, and that is
         being distributed to the Class AF Certificates or the Class AV
         Certificates, as applicable, as a mandatory distribution of principal,
         if any, on such Distribution Date;

                  (xxvii) such other information as the Guarantor may reasonably
         request in such format as reasonably requested by the Guarantor and any
         other information that is required by the Code and regulations
         thereunder to be made available to Certificateholders;

                  (xxviii) (A) the amount of payments received relating to
         claims under the PMI Policy during the

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         related Prepayment Period (and the number of Mortgage Loans to which
         such payments related) and (B) the cumulative amount of payments
         received relating to claims under the PMI Policy since the Closing Date
         (and the number of Mortgage Loans to which such payments related); and

                  (xxix) (A) the dollar amount of claims made under the PMI
         Policy that were denied during the Prepayment Period (and the number of
         Mortgage Loans to which such denials related) and (B) the dollar amount
         of the cumulative claims made under the PMI Policy that were denied
         since the Closing Date (and the number of Mortgage Loans to which such
         denials related).

                  The Trustee shall provide or make available such report to the
Guarantor and the NIMS Insurer in such format as reasonably requested by the
Guarantor and the NIMS Insurer and to Bloomberg in such format as the Trustee
and Bloomberg may agree, on the related Distribution Date. The Trustee shall
make such report (and, at its option, any additional files containing the same
information in an alternative format) available each month via the Trustee's
Internet website. The Trustee's Internet website shall initially be located at
"http:\\www.corporatetrust.db.com." Assistance in using the website can be
obtained by calling the Trustee's investor relations desk at (800) 735-7777. The
Trustee shall have the right to change the way such reports are distributed in
order to make such distribution more convenient and/or more accessible to the
above Persons, and the Trustee shall provide timely and adequate notification
regarding any such changes to the other parties to this Agreement and to all
Certificateholders. The Trustee may fully rely upon and shall have no liability
with respect to information provided by the Master Servicer.

                  In the case of information furnished pursuant to subclauses
(i) through (iii) above, the amounts shall be expressed in a separate section of
the report as a dollar amount for each Class for each $1,000 of Initial
Certificate Principal Balance or aggregate initial Notional Amount as of the
Closing Date.

                  (b) Within a reasonable period of time after the end of each
calendar year, the Trustee shall furnish to the Guarantor, the NIMS Insurer and
each Person who at any time during the calendar year was a Certificateholder of
a Regular Certificate, if requested in writing by such Person, such information
as is reasonably necessary to provide to such Person a statement containing the
information set forth in subclauses (i) through (iii) above, aggregated for such
calendar year or applicable portion thereof during which such Person was a
Certificateholder. Such obligation of the Trustee shall be deemed to have been
satisfied to the extent that substantially comparable information shall be
prepared and furnished by the Trustee to Certificateholders pursuant to any
requirements of the Code as are in force from time to time.

                  (c) On each Distribution Date, the Trustee shall forward to
the Class R Certificateholders a copy of the reports forwarded to the Regular
Certificateholders in respect of such Distribution Date with such other
information as the Trustee deems necessary or appropriate.

                  (d) Within a reasonable period of time after the end of each
calendar year, the Trustee shall deliver to each Person who at any time during
the calendar year was a Class R Certificateholder, if requested in writing by
such Person, such information as is reasonably necessary to provide to such
Person a statement containing the information provided pursuant to the previous
paragraph aggregated for such calendar year or applicable portion thereof during
which such Person was a Class R Certificateholder. Such obligation of the
Trustee shall be deemed to have been satisfied to the extent that substantially
comparable information shall be prepared and furnished to Certificateholders by
the Trustee pursuant to any requirements of the Code as from time to time in
force.

                  (e) By not later than the third Distribution Date, the Trustee
is required to (i) confirm, to the extent such data is available in the
Information Circular or from Deutsche Bank Securities Inc., that the cash flows,
weighted average lives, yields and credit enhancement default analysis for the
Class A Certificates, the Mezzanine Certificates and the Class S Certificates as
presented in the Information Circular are correct therein based on the
assumptions and principal and interest methodology described in the Information
Circular and are consistent with the model developed by the Trustee for the
calculations that the Trustee is required to make hereunder and (ii) notify the
Guarantor that the information referred to in clause (i) above is consistent
with the model developed by the Trustee.

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                  SECTION 4.04.     Master Servicer Remittance Reports; Advances
                                    and Prepayment Interest Shortfalls.

                  (a) On or before the third Business Day following each
Determination Date, by 12:00 p.m. (California time), but in no event later than
the earlier of (i) such date which would allow the indenture trustee to submit a
claim to the NIMS Insurer under the Indenture so as to allow a timely payment by
the NIMS Insurer under the insurance policy related to the notes insured by the
NIMS Insurer and (ii) the 20th day of each month (or if such 20th day is not a
Business Day, the preceding Business Day), the Master Servicer shall deliver to
the Trustee and the NIMS Insurer by electronic mail (or by such other means as
the Master Servicer and the Trustee may agree from time to time) a Master
Servicer Remittance Report with respect to the related Distribution Date. Not
later than the third Business Day following a Determination Date by 3:00 p.m.
(New York time), the Master Servicer shall deliver or cause to be delivered to
the Trustee in addition to the information provided on the Master Servicer
Remittance Report, such other information reasonably available to it with
respect to the Mortgage Loans as the Trustee may reasonably require to perform
the calculations necessary to make the distributions contemplated by Section
4.01 and to prepare the statements to Certificateholders contemplated by Section
4.03. The Trustee shall not be responsible to recompute, recalculate or verify
any information provided to it by the Master Servicer.

                  (b) The amount of Advances to be made by the Master Servicer
for any Distribution Date shall equal, subject to Section 4.04(d), the sum of
(i) the aggregate amount of Monthly Payments (net of the related Servicing Fee),
due during the related Due Period in respect of the Mortgage Loans, which
Monthly Payments were delinquent on a contractual basis as of the close of
business on the related Determination Date and (ii) with respect to each REO
Property, which REO Property was acquired during or prior to the related Due
Period and as to which REO Property an REO Disposition did not occur during the
related Due Period, an amount equal to the excess, if any, of the REO Imputed
Interest on such REO Property for the most recently ended calendar month, over
the net income from such REO Property transferred to the Distribution Account
pursuant to Section 3.13 for distribution on such Distribution Date.

                  On or before 3:00 p.m. (New York time) on the Master Servicer
Remittance Date, the Master Servicer shall remit in immediately available funds
to the Trustee for deposit in the Distribution Account an amount equal to the
aggregate amount of Advances, if any, to be made in respect of the Mortgage
Loans and REO Properties for the related Distribution Date (i) from its own
funds or (ii) from the Collection Account, to the extent of funds held therein
for future distribution (in which case it will cause to be made an appropriate
entry in the records of Collection Account that amounts held for future
distribution have been, as permitted by this Section 4.04, used by the Master
Servicer in discharge of any such Advance) or (iii) in the form of any
combination of (i) and (ii) aggregating the total amount of Advances to be made
by the Master Servicer with respect to the Mortgage Loans and REO Properties.
Any amounts held for future distribution used by the Master Servicer to make an
Advance as permitted in the preceding sentence or withdrawn from funds in excess
of Available Funds for the preceding Distribution Date by the Master Servicer as
permitted in Section 3.05(a)(vii) in reimbursement of Advances previously made
shall be appropriately reflected in the Master Servicer's records, which
information the Master Servicer will provide to the Guarantor upon the
Guarantor's request, and replaced by the Master Servicer by deposit in the
Collection Account on or before any future Master Servicer Remittance Date to
the extent that the Available Funds for the related Distribution Date
(determined without regard to Advances to be made on the Master Servicer
Remittance Date) shall be less than the total amount that would be distributed
to the Classes of Certificateholders pursuant to Section 4.01 on such
Distribution Date if such amounts held for future distributions had not been so
used to make Advances or reimburse for Advances previously made. The Trustee
will provide notice to the Master Servicer and the NIMS Insurer by telecopy by
3:00 p.m. (New York time) on any Master Servicer Remittance Date in the event
that the amount remitted by the Master Servicer to the Trustee on such date is
less than the Advances required to be made by the Master Servicer for the
related Distribution Date, as set forth in the related Remittance Report.
Notwithstanding the above, the Guarantor shall have the right to require, at any
time, the Master Servicer to remit, from its own funds, prior to the next
succeeding Master Servicer Remittance Date after notice to the Master Servicer,
to the Collection Account an amount equal to the aggregate amount of all
Advances previously made out of funds from the Collection Account, and not
theretofore repaid from collections on the related Mortgage Loans, and related
Advances then due, if, in its reasonable judgment and after giving reasonable
consideration to the general economic climate, the Guarantor determines such
action is necessary to protect its interest. In such event, (i) the Master
Servicer shall thereafter remit to the Trustee out of the Master Servicer's own
funds all Advances required to be made and (ii) the Guarantee Fee with respect
to the Guaranteed Certificates shall become payable on the basis of

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a 360- day year of twelve 30-day months.

                  Nothing in this Section 4.04(b) shall be construed to prohibit
the Master Servicer from reimbursing itself at any time from the Collection
Account to the extent permitted by Section 3.05(a)(ii), Section 3.05(a)(iii),
Section 3.05(a)(vii) and Section 3.05(a)(viii).

                  (c) The obligation of the Master Servicer to make such
Advances is mandatory, notwithstanding any other provision of this Agreement but
subject to (d) below, and, with respect to any Mortgage Loan, shall continue
until the Mortgage Loan is paid in full or until the recovery of all Liquidation
Proceeds thereon.

                  (d) Notwithstanding anything herein to the contrary, no
Advance or Servicing Advance shall be required to be made hereunder by the
Master Servicer if such Advance or Servicing Advance would, if made, constitute
a Nonrecoverable Advance. The determination by the Master Servicer that it has
made a Nonrecoverable Advance or that any proposed Advance or Servicing Advance,
if made, would constitute a Nonrecoverable Advance, shall be evidenced by an
Officers' Certificate of the Master Servicer delivered to the Depositor, the
Guarantor, the NIMS Insurer and the Trustee.

                  (e) Not later than 3:00 p.m. (New York time) on each Master
Servicer Remittance Date, the Master Servicer shall remit to the Distribution
Account an amount ("Compensating Interest") equal to the lesser of (A) the
aggregate of the Prepayment Interest Shortfalls for the related Distribution
Date resulting from Principal Prepayments during the related Prepayment Period
and (B) its aggregate Servicing Fee due in the related Due Period. The Master
Servicer shall not have the right to reimbursement for any amounts remitted to
the Trustee in respect of Compensating Interest. Such amounts so remitted shall
be included in the Available Funds and distributed therewith on the next
Distribution Date. The Master Servicer shall not be obligated to pay
Compensating Interest with respect to Relief Act Interest Shortfalls.

                  SECTION 4.05.     The Trustee Remittance Report.

                  (a) On each Trustee Reporting Date by noon New York time, the
Trustee shall furnish a report (the "Trustee Remittance Report") in the form
attached as Exhibit N to this Agreement (together with a statement containing
the information that is required to be included in the statement to be prepared
by the Trustee pursuant to Section 4.03) to the Guarantor and the NIMS Insurer
by electronic medium as agreed to by the Trustee, the Guarantor and the NIMS
Insurer.

                  (b) Subject to paragraph (d) below, if in any month the
Trustee fails to deliver the Trustee Remittance Report by noon New York time on
the related Trustee Reporting Date, the Guarantor shall use its best efforts to
determine the amount of any required Guarantor Payment. If on any Distribution
Date the Guarantor makes any Guarantor Payment as a result of such failure of
the Trustee to deliver the Trustee Remittance Report, the Trustee shall pay the
Guarantor from its own funds (not from the proceeds of the Trust Fund), not
later than the fourth Business Day following such Distribution Date, a $100 fee
plus an amount equal to the product of (i) the principal portion of such
Guarantor Payment, (ii) a percentage equal to (A) the Prime Rate plus 2.00%
divided by (B) 365 and (iii) the number of days between the Trustee Reporting
Date and the date on which the Guarantor received the Trustee Remittance Report.

                  (c) Subject to paragraph (d) below, if in any month the
Trustee fails to provide the Guarantor the Trustee Remittance Report on or prior
to the Trustee Reporting Date, the Trustee shall pay to the Guarantor the
following amounts: (i) upon the first such failure, $500; (ii) upon the second
such failure, $750; and (iii) upon the third such failure, $1,000; provided,
however, that the Trustee shall not be required to make any such payment upon
the first such failure during each successive two year period following the
Closing Date. The fourth consecutive such failure to provide a Trustee
Remittance Report to the Guarantor pursuant to Section 4.05(a) shall constitute
an event of default and permit the Guarantor to remove the Trustee for cause.

                  (d) The Trustee shall have no responsibility or liability
(including removal as Trustee) under paragraphs (b) and (c) of this Section 4.05
if the Trustee's failure to timely deliver the Trustee Remittance Report is due

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to the failure of the Master Servicer to furnish the Trustee with a report in
accordance with Section 4.04(a). If the Trustee's failure to timely deliver the
Trustee Remittance Report is due to the failure of the Master Servicer to
furnish the Trustee with a report in accordance with Section 4.04(a), the Master
Servicer shall pay to the Guarantor the amount set forth in Section 4.05(b)
above (i.e. the product of the amounts described in clauses (i), (ii) and (iii)
of Section 4.05(b) above) and the following additional amounts: (i) upon the
first such failure, $500; (ii) upon the second such failure, $750; and (iii)
upon the third such failure, $1,000; provided, however, that the Master Servicer
shall not be required to make any such payment upon the first such failure
during each successive two year period following the Closing Date. The fourth
consecutive such failure to provide the Trustee with a report in accordance with
Section 4.04(a) and thereby causing the Trustee's failure to timely deliver a
Trustee Remittance Report to the Guarantor pursuant to Section 4.05(a) shall
constitute an event of default and permit the Guarantor to remove the Master
Servicer for cause.

                  (e) On each Trustee Reporting Date by noon New York time, the
Trustee shall forward a Liquidation Report for the related Distribution Date (in
the form attached as Exhibit K to this Agreement) to the Guarantor and the NIMS
Insurer by electronic medium as agreed to by the Trustee, the Guarantor and the
NIMS Insurer, to the extent that the Trustee has received from the Master
Servicer such Liquidation Report.

                  SECTION 4.06.     Loan Data Remittance Report.

                  (a) On each Loan Data Reporting Date by noon Pacific Time, the
Master Servicer shall furnish a complete and accurate report (the "Loan Data
Remittance Report") in the form attached as Exhibit M to this Agreement to the
Guarantor and the NIMS Insurer by electronic medium as agreed to by the Master
Servicer, the NIMS Insurer and the Guarantor. In addition, the Master Servicer
shall (i) furnish to the Guarantor and the NIMS Insurer a report with respect to
the Mortgage Loans that have been voluntarily repurchased by the Master Servicer
pursuant to Section 3.16 during the related Prepayment Period indicating the
Mortgage Loan number, the date of repurchase and the Principal Balance of each
Mortgage Loan so repurchased and a report setting forth the Mortgage Loan number
of each PMI Mortgage Loan for which a claim made under the PMI Policy was
denied, curtailed, or for which coverage under the PMI Policy was canceled; (ii)
furnish to the Guarantor and the NIMS Insurer a Monthly Appraisal Defects Report
and a Monthly Quality Control Report, each in form and substance satisfactory to
the Guarantor and (iii) furnish to the NIMS Insurer a monthly report indicating
each Mortgage Loan number, Principal Balance, Prepayment Charges due, Prepayment
Charges collected, Servicer Prepayment Charges remitted and the reason for any
Prepayment Charge being waived.

                  (b) If in any month the Master Servicer fails to provide the
Guarantor the Loan Data Remittance Report on or prior to the Loan Data Reporting
Date or if such report is deemed to be materially incomplete or inaccurate by
the Guarantor, the Master Servicer shall pay to the Guarantor the following
amounts: (i) upon the first such failure, $500; (ii) upon the second such
failure, $750; and (iii) upon the third such failure, $1,000; provided, however,
that the Master Servicer shall not be required to make any such payment upon the
first such failure during each successive two year period following the Closing
Date. The fourth consecutive such failure to provide a Loan Data Remittance
Report to the Guarantor pursuant to Section 4.06(a) shall constitute an event of
default and permit the Guarantor to remove the Master Servicer for cause.

                  SECTION 4.07.     Compliance with Withholding.

                  Notwithstanding any other provision of this Agreement, the
Trustee shall comply with all federal withholding requirements respecting
payments to Certificateholders of interest or original issue discount that the
Trustee reasonably believes are applicable under the Code. The consent of
Certificateholders shall not be required for such withholding. In the event the
Trustee does withhold any amount from interest or original issue discount
payments or advances thereof to any Certificateholder pursuant to federal
withholding requirements, the Trustee shall indicate the amount withheld to such
Certificateholders.

                  SECTION 4.08.     Distributions on the Uncertificated REMIC
                                    Regular Interests.

                  REMIC 1.          On each Distribution Date, the Trustee shall
cause the Available Funds from the

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Distribution Account to make the following disbursements and transfers, in the
following order of priority, to be distributed by REMIC 1 to REMIC 2 on account
of the REMIC 1 Regular Interests or withdrawn from the Distribution Account and
distributed to the Holders of the Class R Certificates (in respect of the Class
R-1 Interest), as the case may be:

                  With respect to the Group I Mortgage Loans:

                  (1)(i) to the Holders of REMIC 1 Regular Interest LT1-A, REMIC
         1 Regular Interest LT1-B and REMIC 1 Regular Interest LT1-P in an
         amount equal to (A) the Uncertificated Accrued Interest for each REMIC
         1 Regular Interest for such Distribution Date, plus (B) any amounts in
         respect thereof remaining unpaid from previous Distribution Dates; and

                  (ii) to the Holders of REMIC 1 Regular Interest LT1-P, on the
         Distribution Date immediately following the expiration of the latest
         Prepayment Charge as identified on the Prepayment Charge Schedule or
         any Distribution Date thereafter until $100 has been distributed
         pursuant to this clause;

                  (2) to the Holders of REMIC 1 Regular Interest LT1-A and REMIC
         1 Regular Interest LT1-B, in an amount equal to the remainder of the
         Available Funds for such Distribution Date after the distributions made
         pursuant to clause (1) above, allocated as follows:

                           (a) to the Holders of REMIC 1 Regular Interest LT1-A,
                  until the Uncertificated Principal Balance of REMIC 1 Regular
                  Interest LT1-A is reduced to zero;

                           (b) to the Holders of REMIC 1 Regular Interest LT1-B,
                  until the Uncertificated Principal Balance of REMIC 1 Regular
                  Interest LT1-B is reduced to zero; and

                           (c) any remaining amount to the Holders of the Class
                  R Certificates (in respect of the Class R-1 Interest);

provided, however, that for the first two Distribution Dates, such amounts
relating to the Initial Group I Mortgage Loans shall be allocated to the REMIC 1
Regular Interests (other than REMIC 1 Regular Interest LT1-B) in the order and
priority described above and such amounts relating to the Subsequent Group I
Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1-B.

                  With respect to the Group II Mortgage Loans:

                  (1) to the Holders of REMIC 1 Regular Interest LT1-C and REMIC
         1 Regular Interest LT1-D in an amount equal to (A) the Uncertificated
         Accrued Interest for each REMIC 1 Regular Interest for such
         Distribution Date, plus (B) any amounts in respect thereof remaining
         unpaid from previous Distribution Dates;

                  (2) to the Holders of REMIC 1 Regular Interest LT1-C and REMIC
         1 Regular Interest LT1-D, in an amount equal to the remainder of the
         Available Funds for such Distribution Date after the distributions made
         pursuant to clause (1) above, allocated as follows:

                           (a) to the Holders of REMIC 1 Regular Interest LT1-C,
                  until the Uncertificated Principal Balance of REMIC 1 Regular
                  Interest LT1-C is reduced to zero;

                           (b) to the Holders of REMIC 1 Regular Interest LT1-D,
                  until the Uncertificated Principal Balance of REMIC 1 Regular
                  Interest LT1-D is reduced to zero; and

                           (c) any remaining amount to the Holders of the Class
                  R Certificates (in respect of the Class R-1 Interest);

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provided, however, that for the first two Distribution Dates, such amounts
relating to the Initial Group II Mortgage Loans shall be allocated to the REMIC
1 Regular Interests (other than REMIC 1 Regular Interest LT1-D) in the order and
priority described above and such amounts relating to the Subsequent Group II
Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1-D.

                  On each Distribution Date, all amounts representing Prepayment
Charges in respect of the Mortgage Loans received during the related Prepayment
Period will be distributed by REMIC 1 to the Holders of REMIC 1 Regular Interest
LT1-P. The payment of the foregoing amounts to the Holders of REMIC 1 Regular
Interest LT1-P shall not reduce the Uncertificated Principal Balance thereof.

                  REMIC 2. On each Distribution Date, the Trustee shall cause in
the following order of priority, the following amounts to be distributed by
REMIC 2 to REMIC 3 on account of the REMIC 2 Regular Interests or withdrawn from
the Distribution Account and distributed to the holders of the Class R
Certificates (in respect of the Class R-2 Interest), as the case may be:

                  (1)(i) first, to the Holders of REMIC 2 Regular Interest
         LT2-B, in an amount equal to (A) the Uncertificated Accrued Interest
         for such Distribution Date, plus (B) any amounts in respect thereof
         remaining unpaid from previous Distribution Dates and second, to
         Holders of REMIC 2 Regular Interest LT1-A and REMIC 2 Regular Interest
         LT2-P in an amount equal to (A) the Uncertificated Accrued Interest for
         such Distribution Date, plus (B) any amounts in respect thereof
         remaining unpaid from previous Distribution Dates; and

                  (ii) to the Holders of REMIC 2 Regular Interest LT2-P, on the
         Distribution Date immediately following the expiration of the latest
         Prepayment Charge as identified on the Prepayment Charge Schedule or
         any Distribution Date thereafter until $100 has been distributed
         pursuant to this clause;

                  (2) second, to the Holders of REMIC 2 Regular Interests, in an
         amount equal to the remainder of the Available Funds for such
         Distribution Date after the distributions made pursuant to clause (1)
         above, allocated as follows:

                           (a) to the Holders of REMIC 2 Regular Interest LT2-A,
                  until the Uncertificated Principal Balance of REMIC 2 Regular
                  Interest LT2-A is reduced to zero;

                           (b) to the Holders of REMIC 2 Regular Interest LT2-B,
                  until the Uncertificated Principal Balance of REMIC 2 Regular
                  Interest LT2-B is reduced to zero; and

                           (c) any remaining amount to the Holders of the Class
                  R Certificates (in respect of the Class R-2 Interest).

                  REMIC 3. On each Distribution Date, the Trustee shall cause in
the following order of priority, the following amounts to be distributed by
REMIC 3 to REMIC 4 on account of the REMIC 3 Regular Interests or withdrawn from
the Distribution Account and distributed to the holders of the Class R
Certificates (in respect of the Class R-3 Interest), as the case may be:

                  (i) first, to the extent of Available Funds, to the Holders of
         REMIC 3 Regular Interest LT3-S in an amount equal to (A) the
         Uncertificated Accrued Interest for such Distribution Date, plus (B)
         any amounts in respect thereof remaining unpaid from previous
         Distribution Dates and then to Holders of REMIC 3 Regular Interest
         LT3-AA, REMIC 3 Regular Interest LT3-AF1, REMIC 3 Regular Interest
         LT3-AV1, REMIC 3 Regular Interest LT3-M1, REMIC 3 Regular Interest
         LT3-M2, REMIC 3 Regular Interest LT3-ZZ and REMIC 3 Regular Interest
         LT3-P, PRO RATA, in an amount equal to (A) the Uncertificated Accrued
         Interest for such Distribution Date, plus (B) any amounts in respect
         thereof remaining unpaid from previous Distribution Dates; provided,
         however, that amounts payable as Uncertificated Accrued Interest in
         respect of REMIC 3 Regular Interest LT3-ZZ shall be reduced and
         deferred when the REMIC 3 Overcollateralized Amount is less than the

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         REMIC 3 Target Overcollateralized Amount, by the lesser of (x) the
         amount of such difference and (y) the Maximum LT3-ZZ Uncertificated
         Accrued Interest Deferral Amount; and

                  (ii) second, to the Holders of REMIC 3 Regular Interests, in
         an amount equal to the remainder of the Available Funds for such
         Distribution Date after the distributions made pursuant to clause (i)
         above, allocated as follows:

                           (a) to the Holders of REMIC 3 Regular Interest LT3-AA
                  and REMIC 3 Regular Interest LT3-P, 98.00% of such remainder,
                  calculated after payments pursuant to clause (d) below, until
                  the Uncertificated Principal Balance of such Uncertificated
                  REMIC 3 Regular Interest is reduced to zero; provided that
                  REMIC 3 Regular Interest LT3-P shall not be reduced until the
                  Distribution Date immediately following the expiration of the
                  latest Prepayment Charge as identified on the Prepayment
                  Charge Schedule or any Distribution Date thereafter, at which
                  point such amount shall be distributed to REMIC 3 Regular
                  Interest LT3-P, until $100 has been distributed pursuant to
                  this clause;

                           (b) to the Holders of REMIC 3 Regular Interest
                  LT3-AF1, REMIC 3 Regular Interest LT3-AV1, REMIC 3 Regular
                  Interest LT3-M1 and REMIC 3 Regular Interest LT3-M2, 1.00% of
                  such remainder, calculated after payments pursuant to clause
                  (d) below, in the same proportion as principal payments are
                  allocated to the Corresponding Certificate, until the
                  Uncertificated Principal Balances of such REMIC 3 Regular
                  Interests are reduced to zero;

                           (c) to the Holders of REMIC 3 Regular Interest
                  LT3-ZZ, 1.00% of such remainder, calculated after payments
                  pursuant to clause (d) below, until the Uncertificated
                  Principal Balance of such REMIC 3 Regular Interest is reduced
                  to zero; then

                           (d) any remaining amount to the Holders of the Class
                  R Certificates (in respect of the Class R-2 Interest);

provided, however, that (i) 98.00% and (ii) 2.00% of any principal payments that
are attributable to an Overcollateralization Release Amount shall be allocated
to Holders of (i) REMIC 3 Regular Interest LT3-AA and REMIC 3 Regular Interest
LT3-P, in that order and (ii) REMIC 3 Regular Interest LT3-ZZ, respectively;
provided that REMIC 3 Regular Interest LT3-P shall not be reduced until the
Distribution Date immediately following the expiration of the latest Prepayment
Charge as identified on the Prepayment Charge Schedule or any Distribution Date
thereafter, at which point such amount shall be distributed to REMIC 3 Regular
Interest LT3-P, until $100 has been distributed pursuant to this clause.

                  SECTION 4.09.     Allocation of Principal Losses.

                  (a) All Realized Losses on the Mortgage Loans shall be
allocated by the Trustee on each Distribution Date as follows: first, to Net
Monthly Excess Cashflow; second, to the Class CE Certificates, until the
Certificate Principal Balance thereof has been reduced to zero; third, to the
Class M-2 Certificates, until the Certificate Principal Balance thereof has been
reduced to zero and fourth, to the Class M-1 Certificates, until the Certificate
Principal Balance thereof has been reduced to zero. All Realized Losses to be
allocated to the Certificate Principal Balances of those Certificates on any
Distribution Date shall be so allocated after the actual distributions to be
made on such Distribution Date as provided above. All references above to the
Certificate Principal Balance of any Class of Certificates shall be to the
Certificate Principal Balance of such Class immediately prior to the relevant
Distribution Date, before reduction thereof by any Realized Losses, in each case
to be allocated to such Class of Certificates, on such Distribution Date.

                  Any allocation of Realized Losses to a Mezzanine Certificate
on any Distribution Date shall be made by reducing the Certificate Principal
Balance thereof by the amount so allocated; any allocation of Realized Losses to
a Class CE Certificate shall be made by reducing the amount otherwise payable in
respect thereof pursuant to Section 4.01(d)(x). No allocations of any Realized
Losses shall be made to the Certificate Principal Balances of the Class A

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Certificates or the Class P Certificates.

                  (b) All Realized Losses on the Group I Mortgage Loans shall be
allocated by the Trustee on each Distribution Date to the REMIC 1 Regular
Interest LT1-A and REMIC 1 Regular Interest LT1-B until the Uncertificated
Principal Balance of each such REMIC 1 Regular Interest has been reduced to
zero; provided however, with respect to the first two Distribution Dates, all
Realized Losses on the Initial Group I Mortgage Loans shall be allocated to
REMIC 1 Regular Interest LT1-A until the Uncertificated Principal Balance of
each such REMIC 1 Regular Interest has been reduced to zero, and all Realized
Losses on the Subsequent Group I Mortgage Loans shall be allocated to REMIC 1
Regular Interest LT1-B until the Uncertificated Principal Balance thereof has
been reduced to zero. All Realized Losses on the Group II Mortgage Loans shall
be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular
Interest LT1-C and REMIC 1 Regular Interest LT1-D until the Uncertificated
Principal Balance of each such REMIC 1 Regular Interest has been reduced to
zero; provided however, with respect to the first two Distribution Dates, all
Realized Losses on the Initial Group II Mortgage Loans shall be allocated to
REMIC 1 Regular Interest LT1-C until the Uncertificated Principal Balance of
each such REMIC 1 Regular Interest has been reduced to zero, and all Realized
Losses on the Subsequent Group II Mortgage Loans shall be allocated to REMIC 1
Regular Interest LT1-D until the Uncertificated Principal Balance thereof has
been reduced to zero.

                  (c) All Realized Losses on the Mortgage Loans shall be
allocated by the Trustee on each Distribution Date, first to REMIC 2 Regular
Interest LT2-A until the Uncertificated Principal Balance of such REMIC 2
Regular Interest has been reduced to zero and then to REMIC 2 Regular Interest
LT2-B, until the Uncertificated Principal Balance of such REMIC 2 Regular
Interest has been reduced to zero.

                  (d) All Realized Losses on the Mortgage Loans shall be
allocated by the Trustee on each Distribution Date to the following REMIC 3
Regular Interests in the specified percentages, as follows: first, to
Uncertificated Accrued Interest payable to the REMIC 3 Regular Interest LT3-AA
and REMIC 3 Regular Interest LT3- ZZ up to an aggregate amount equal to the
REMIC 3 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to
the Uncertificated Principal Balances of the REMIC 3 Regular Interest LT3-AA and
REMIC 3 Regular Interest LT3-ZZ up to an aggregate amount equal to the REMIC 3
Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the
Uncertificated Principal Balances of REMIC 3 Regular Interest LT3-AA, REMIC 3
Regular Interest LT3-M2 and REMIC 3 Regular Interest LT3-ZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC 3 Regular Interest
LT3-M2 has been reduced to zero; and fourth to the Uncertificated Principal
Balances of REMIC 3 Regular Interest LT3-AA, REMIC 3 Regular Interest LT3-M1 and
REMIC 3 Regular Interest LT3-ZZ, 98%, 1% and 1%, respectively, until the
Uncertificated Principal Balance of REMIC 3 Regular Interest LT3- M1 has been
reduced to zero.

                  SECTION 4.10.     Pre-Funding Accounts.

                  (a) No later than the Closing Date, the Trustee shall
establish and maintain two segregated trust accounts that are each Eligible
Accounts, which shall be titled, "Group I Pre-Funding Account, Deutsche Bank
National Trust Company, as Trustee, in trust for registered Holders of
Ameriquest Mortgage Securities Inc., Series 2002-D" (the "Group I Pre-Funding
Account") and "Group II Pre-Funding Account, Deutsche Bank National Trust
Company, as Trustee, in trust for registered Holders of Ameriquest Mortgage
Securities Inc., Series 2002-D" (the "Group II Pre- Funding Account"). The
Trustee shall, promptly upon receipt, deposit in the applicable Pre-Funding
Account and retain therein the Group I Original Pre-Funded Amount and the Group
II Original Pre-Funded Amount, as applicable, remitted on the Closing Date to
the Trustee by the Depositor. Funds deposited in the Pre-Funding Accounts shall
be held in trust by the Trustee for the Certificateholders for the uses and
purposes set forth herein.

                  (b) The Trustee will invest funds deposited in the Pre-Funding
Accounts as directed by the Master Servicer in Permitted Investments with a
maturity date (i) no later than the Business Day immediately preceding the date
on which such funds are required to be withdrawn from such account pursuant to
this Agreement, if a Person other than the Trustee or an Affiliate of the
Trustee manages or advises such investment, and (ii) no later than the date on
which such funds are required to be withdrawn from such account pursuant to this
Agreement, if the Trustee or an Affiliate of the Trustee manages or advises such
investment. For federal income tax purposes, the Depositor shall be the owner of

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the Pre-Funding Accounts and shall report all items of income, deduction, gain
or loss arising therefrom. All income and gain realized from investment of funds
deposited in the Group I Pre-Funding Account and the Group II Pre-Funding
Account shall be transferred to the Group I Interest Coverage Account and the
Group II Interest Coverage Account, as applicable, at the following times: (i)
on the Business Day immediately preceding each Distribution Date, if a Person
other than the Trustee or an Affiliate of the Trustee manages or advises such
investment, or on each Distribution Date, if the Trustee or an Affiliate of the
Trustee manages or advises such investment, (ii) on the Business Day immediately
preceding each Subsequent Transfer Date, if a Person other than the Trustee or
an Affiliate of the Trustee manages or advises such investment, or on each
Subsequent Transfer Date, if the Trustee or an Affiliate of the Trustee manages
or advises such investment or (iii) within one Business Day of the Trustee's
receipt thereof. The Master Servicer shall deposit in the Pre-Funding Accounts
the amount of any net loss incurred in respect of any such Permitted Investment
immediately upon realization of such loss without any right of reimbursement
therefor. At no time will the Pre-Funding Accounts be an asset of any Trust
REMIC.

                  (c) Amounts on deposit in the Pre-Funding Accounts shall be
withdrawn by the Trustee as follows:

                  (i) On any Subsequent Transfer Date, the Trustee shall
         withdraw from the Group I Pre-Funding Account or the Group II
         Pre-Funding Account, as applicable, an amount equal to 100% of the
         Principal Balances of the Subsequent Group I Mortgage Loans or the
         Subsequent Group II Mortgage Loans, as applicable, transferred and
         assigned to the Trustee for deposit in the Mortgage Pool on such
         Subsequent Transfer Date and pay such amount to or upon the order of
         the Depositor upon satisfaction of the conditions set forth in Section
         2.08 with respect to such transfer and assignment;

                  (ii) If the amount on deposit in the Pre-Funding Accounts
         (exclusive of any investment income) has not been reduced to zero
         during the Funding Period, on the day immediately following the
         termination of the Funding Period, the Trustee shall deposit into the
         Distribution Account any amount remaining in the Pre- Funding Accounts
         (exclusive of any investment income) for distribution in accordance
         with the terms hereof;

                  (iii) The Trustee shall withdraw any amount not required to be
         deposited in the Pre-Funding Accounts or deposited therein in error;
         and

                  (iv) The Trustee shall clear and terminate the Pre-Funding
         Accounts upon the earlier to occur of (A) the Distribution Date
         immediately following the end of the Funding Period and (B) the
         termination of this Agreement, with any amounts remaining on deposit
         therein being paid to the Holders of the Certificates then entitled to
         distributions in respect of principal.

                  Withdrawals pursuant to clauses (i), (ii) and (iv) shall be
treated as contributions of cash to REMIC 1 on the date of withdrawal.

                  SECTION 4.11.     Interest Coverage Accounts.

                  (a) No later than the Closing Date, the Trustee shall
establish and maintain two segregated trust accounts that are each Eligible
Accounts, which shall be titled, "Group I Interest Coverage Account, Deutsche
Bank National Trust Company, as Trustee, in trust for registered Holders of
Ameriquest Mortgage Securities Inc., Series 2002- D" (the "Group I Interest
Coverage Account") and "Group II Interest Coverage Account, Deutsche Bank
National Trust Company, as Trustee, in trust for registered Holders of
Ameriquest Mortgage Securities Inc., Series 2002-D" (the "Group II Interest
Coverage Account"). The Trustee shall, promptly upon receipt, deposit in the
Group I Interest Coverage Account and the Group II Interest Coverage Account,
and retain therein the Group I Interest Coverage Amount and the Group II
Interest Coverage Amount, respectively, remitted on the Closing Date to the
Trustee by the Depositor. Funds deposited in the Interest Coverage Accounts
shall be held in trust by the Trustee for the Certificateholders for the uses
and purposes set forth herein.

                  (b) For federal income tax purposes, the Master Servicer shall
be the owner of the Interest

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Coverage Accounts and shall report all items of income, deduction, gain or loss
arising therefrom. At no time will the Interest Coverage Accounts be an asset of
any Trust REMIC. All income and gain realized from investment of funds deposited
in the Interest Coverage Accounts shall be for the sole and exclusive benefit of
the Master Servicer and shall be remitted by the Trustee to the Master Servicer
no later than the first Business Day following receipt of such income and gain
by the Trustee. The Master Servicer shall deposit in the Interest Coverage
Accounts the amount of any net loss incurred in respect of any such Permitted
Investment immediately upon realization of such loss.

                  (c) On each Distribution Date during the Funding Period and on
the Distribution Date immediately following the end of the Funding Period, the
Trustee shall withdraw from the Group I Interest Coverage Account and the Group
II Interest Coverage Account and deposit in the Distribution Account an amount
equal to 30 days' interest on the excess, if any, of the Group I Original
Pre-Funded Amount or the Group II Original Pre-Funded Amount, as applicable,
over the aggregate Principal Balance of Subsequent Group I Mortgage Loans or
Subsequent Group II Mortgage Loans, as applicable, that both (i) had a Due Date
during the Due Period relating to such Distribution Date and (ii) had a
Subsequent Cut-off Date prior to the first day of the month in which such
Distribution Date occurs, at a per annum rate equal to (A) the Pass-Through Rate
of the Class A Certificates and the Mezzanine Certificates for such Distribution
Date plus (B) 0.6515% plus (C) the Guarantee Fee Rate applicable to the
Guaranteed Certificates, solely for the purposes of the foregoing calculation,
each being multiplied by a fraction, the numerator of which is the actual number
of days in the Accrual Period for such Class for such Distribution Date, and the
denominator of which is 30. Such withdrawal and deposit shall be treated as a
contribution of cash by the Master Servicer to REMIC 1, REMIC 2, REMIC 3 and
REMIC 4 on the date thereof with REMIC 4 receiving that portion of the
contribution, if any, to the extent that the rate of LIBOR used to calculate the
Pass-Through Rate on the Class A Certificates and the Mezzanine Certificates for
such Distribution Date exceeds LIBOR for the first Accrual Period. Immediately
following any such withdrawal and deposit, and immediately following the
conveyance of any Subsequent Mortgage Loans to the Trust on any Subsequent
Transfer Date, the Trustee shall withdraw from the Group I Interest Coverage
Account and the Group II Interest Coverage Account and remit to the Master
Servicer or its designee an amount equal to the excess, if any, of the amount
remaining in such Interest Coverage Account over the amount that would be
required to be withdrawn therefrom (assuming sufficient funds therein) pursuant
to the second preceding sentence on each subsequent Distribution Date, if any,
that will occur during the Funding Period or that will be the Distribution Date
immediately following the end of the Funding Period, if no Subsequent Group I
Mortgage Loans or Subsequent Group II Mortgage Loans, as applicable, were
acquired by the Trust Fund after the end of the Prepayment Period relating to
the current Distribution Date (assuming that LIBOR remains constant at the level
of LIBOR applicable to the calculation of the Pass-Through Rate for the Class A
Certificates and the Mezzanine Certificates for the current Distribution Date).

                  (d) Upon the earlier of (i) the Distribution Date immediately
following the end of the Funding Period, (ii) the reduction of the Certificate
Principal Balance of the Guaranteed Certificates to zero or (iii) the
termination of this Agreement in accordance with Section 10.01, any amount
remaining on deposit in the Interest Coverage Accounts after distributions
pursuant to paragraph (c) above shall be withdrawn by the Trustee and remitted
to the Master Servicer or its designee.

                  SECTION 4.12.     Net WAC Rate Carryover Reserve Account.

                  With respect to the Class A Certificates, the Mezzanine
Certificates and the Class S Certificates and no later than the Closing Date,
the Trustee shall establish and maintain with itself a separate, segregated
trust account titled, "Net WAC Rate Carryover Reserve Account, Deutsche Bank
National Trust Company, as Trustee, in trust for the registered
Certificateholders of Ameriquest Mortgage Securities Inc., Series 2002-D, Class
A, Class M-1, Class M-2 and Class S." On the Closing Date, the Depositor will
deposit, or cause to be deposited, into the Net WAC Rate Carryover Reserve
Account $1,000. In addition, the amount in the Net WAC Rate Carryover Reserve
Account shall include any payments received by the Trustee under the Cap
Contracts and deposited into the Net WAC Rate Carryover Reserve Account for the
benefit of the Mezzanine Certificates.

                  On each Distribution Date as to which there is a Net WAC Rate
Carryover Amount payable to the Class A Certificates, the Mezzanine Certificates
and/or the Class S Certificates, the Trustee has been directed by the Class CE
Certificateholders to, and therefore will, deposit into the Net WAC Rate
Carryover Reserve Account the

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amounts described in Section 4.01(d)(vi), rather than distributing such amounts
to the Class CE Certificateholders. On each such Distribution Date, the Trustee
shall hold all amounts on deposit in the Net WAC Rate Carryover Reserve Account
or deposited therein pursuant to Section 4.01(d)(vi) for the benefit of the
Class A Certificateholders, the Mezzanine Certificateholders and the Class S
Certificateholders, and will distribute such amounts to the Class A
Certificateholders, the Mezzanine Certificateholders and/or the Class S
Certificateholders, as applicable, pursuant to Section 4.01(d) to the extent of
any Net WAC Rate Carryover Amount for such Class for such Distribution Date. If
no Net WAC Rate Carryover Amount is payable to any Holders on a Distribution
Date, the Trustee shall deposit into the Net WAC Rate Carryover Reserve Account
on behalf of the Class CE Certificateholders, from amounts otherwise
distributable to the Class CE Certificateholders, an amount such that when added
to other amounts already on deposit in the Net WAC Rate Carryover Reserve
Account, the aggregate amount on deposit therein is equal to $1,000. For federal
and state income tax purposes, the Class CE Certificateholders will be deemed to
be the owners of the Net WAC Rate Carryover Reserve Account and all amounts
deposited into the Net WAC Rate Carryover Reserve Account (other than the
initial deposit therein of $1,000) shall be treated as amounts distributed by
REMIC 4 to the Holders of the Class CE Certificates. Upon the termination of the
Trust Fund, all amounts remaining on deposit in the Net WAC Rate Carryover
Reserve Account will be released by the Trustee and distributed to the Class CE
Certificateholders or their designees. The Net WAC Rate Carryover Reserve
Account will be part of the Trust Fund but not part of any Trust REMIC and any
payments to the Holders of the Class A Certificates, the Mezzanine Certificates
and the Class S Certificates of Net WAC Rate Carryover Amounts will not be
payments with respect to a "regular interest" in a REMIC within the meaning of
Code Section 860G(a)(1).

                  By accepting a Class CE Certificate, each Class CE
Certificateholder hereby agrees to direct the Trustee, and the Trustee hereby is
directed, to deposit into the Net WAC Rate Carryover Reserve Account the amounts
described above on each Distribution Date as to which there is any Net WAC Rate
Carryover Amount rather than distributing such amounts to the Class CE
Certificateholders. By accepting a Class CE Certificate, each Class CE
Certificateholder further agrees that such direction is given for good and
valuable consideration, the receipt and sufficiency of which is acknowledged by
such acceptance.

                  At the direction of the Holders of a majority in Percentage
Interest in the Class CE Certificates, the Trustee shall direct any depository
institution maintaining the Net WAC Rate Carryover Reserve Account to invest the
funds in such account in one or more Permitted Investments bearing interest or
sold at a discount, and maturing, unless payable on demand, (i) no later than
the Business Day immediately preceding the date on which such funds are required
to be withdrawn from such account pursuant to this Agreement, if a Person other
than the Trustee or an Affiliate manages or advises such investment and (ii) no
later than the date on which such funds are required to be withdrawn from such
account pursuant to this Agreement, if the Trustee or an Affiliate manages or
advises such investment. If no investment direction of the Holders of a majority
in Percentage Interest in the Class CE Certificates with respect to the Net WAC
Rate Carryover Reserve Account is received by the Trustee, the Trustee shall
invest the funds in the Deutsche Bank Institutional Cash Management Fund 541 so
long as it is a Permitted Investment. Interest earned on such investment shall
be deposited into the Net WAC Rate Carryover Reserve Account.

                  For federal tax return and information reporting, the right of
the Holders of the Class A Certificates, the Mezzanine Certificates and the
Class S Certificates to receive payments from the Net WAC Carryover Reserve
Account in respect of any Net WAC Rate Carryover Amount shall be assigned a
value of zero.

                  SECTION 4.13.     Excess Net WAC Rate Reserve Account.

                  No later than the Closing Date, the Trustee shall establish
and maintain with itself a separate, segregated trust account titled, "Excess
Net WAC Rate Reserve Account, Deutsche Bank National Trust Company, as Trustee,
in trust for the registered Certificateholders of Ameriquest Mortgage Securities
Inc., Series 2002-D, Class A."

                  On each Distribution Date as to which there is an Excess Group
Net WAC Rate Amount payable on the Class A Certificates or the Class CE
Certificates, the Trustee has been directed by the Class A Certificateholders
to, and therefore shall, deposit into the Excess Net WAC Rate Reserve Account,
the Excess Group Net WAC Rate Amount, rather than distributing such amounts to
the applicable Class A Certificateholders. On each such Distribution Date, the

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Trustee shall hold all such amounts for the benefit of the Holders of the
applicable Class A Certificates or the Class CE Certificates, and shall
distribute such amounts to the Holders of the applicable Class A Certificates
and/or the Class CE Certificates to the extent of the Excess Group Net WAC Rate
Amount.

                  For federal and state income tax purposes, the Class CE
Certificateholders will be deemed to be the owners of the Excess Net WAC Rate
Reserve Account and all amounts deposited into the Excess Net WAC Rate Reserve
Account shall be treated as amounts distributed by REMIC 4 to the Holders of the
Class CE Certificates. Upon the termination of the Trust Fund, or the payment in
full of the Class A Certificates, all amounts remaining on deposit in the Excess
Net WAC Rate Reserve Account shall be released by the Trust Fund and distributed
to the Class CE Certificateholders or their designees. The Excess Net WAC Rate
Reserve Account shall be part of the Trust Fund but not part of any Trust REMIC
and any payments to the Holders of the Class A Certificates or the Class CE
Certificates of Excess Group Net WAC Rate Amount will not be payments with
respect to a "regular interest" in a REMIC within the meaning of Code Section
860(G)(a)(1).

                  By accepting a Class A Certificate, such Certificateholders
hereby agree to direct the Trustee, and the Trustee hereby is directed, to
deposit into the Excess Net WAC Rate Reserve Account the amounts described above
on each Distribution Date as to which there is any Excess Pool Net WAC Rate
Amount rather than distributing such amounts to the Class A Certificateholders,
as applicable. By accepting a Class A Certificate, each such Certificateholder
further agrees that such direction is given for good and valuable consideration,
the receipt and sufficiency of which is acknowledged by such acceptance.

                  Amounts on deposit in the Excess Net WAC Rate Reserve Account
will remain uninvested.

                  For federal tax return and information reporting, the right of
the Class A Certificateholders and the Class CE Certificates to receive payments
from the Excess Net WAC Rate Reserve Account in respect of any Excess Group Net
WAC Pass-Through Rate Amount shall be assigned a value of zero.

                  SECTION 4.14.     Commission Reporting.

                  (a) The Trustee shall reasonably cooperate with the Depositor
in connection with the Trust's satisfying the reporting requirements under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Trustee
shall prepare on behalf of the Trust any Forms 8-K and 10-K customary for
similar securities as required by the Exchange Act and the Rules and Regulations
of the Securities and Exchange Commission thereunder, and the Depositor shall
sign (or shall cause another entity acceptable to the Securities and Exchange
Commission to sign) and the Trustee shall file (via the Securities and Exchange
Commission's Electronic Data Gathering and Retrieval System) such forms on
behalf of the Depositor (or such other entity). The Depositor hereby grants to
the Trustee a limited power of attorney to execute any Form 8-K and file each
such document on behalf of the Depositor. Such power of attorney shall continue
until the earlier of (i) receipt by the Trustee from the Depositor of written
termination of such power of attorney and (ii) the termination of the Trust.
Notwithstanding anything herein to the contrary, the Depositor, and not the
Trustee, shall be responsible for executing each Form 10-K filed on behalf of
the Trust.

                  (b) Each Form 8-K shall be filed by the Trustee within 15 days
after each Distribution Date, with a copy of the statement to the
Certificateholders for such Distribution Date as an exhibit thereto. Prior to
March 30th of each year (or such earlier date as may be required by the Exchange
Act and the Rules and Regulations of the Securities and Exchange Commission),
the Trustee shall file a Form 10-K, in substance as required by applicable law
or applicable Securities and Exchange Commission staff's interpretations. Such
Form 10-K shall include as exhibits the Master Servicer's annual statement of
compliance described under Section 3.19 and the accountant's report described
under Section 3.20, in each case to the extent they have been timely delivered
to the Trustee. If they are not so timely delivered, the Trustee shall file an
amended Form 10-K including such documents as exhibits reasonably promptly after
they are delivered to the Trustee. The Trustee shall have no liability with
respect to any failure to properly prepare or file such periodic reports
resulting from or relating to the Trustee's inability or failure to obtain any
information not resulting from its own negligence or willful misconduct. The
Form 10-K shall also include a certification in the form attached hereto as
Exhibit R-1 (the "Certification"), which shall be signed by the senior officer
of the Depositor in charge

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of securitization.

                  (c) In addition, the Trustee shall sign a certification (in
the form attached hereto as Exhibit R-2) for the benefit of the Depositor and
its officers, directors and Affiliates regarding certain aspects of items 1
through 3 of the Certification (provided, however, that the Trustee shall not
undertake an analysis of the accountant's report attached as an exhibit to the
Form 10-K). The Trustee's certification shall be delivered to the Depositor by
no later than March 18th of each year (or if such day is not a Business Day, the
immediately preceding Business Day) and the Depositor shall deliver the
Certification to the Trustee for filing no later than March 20th of each year
(or if such day is not a Business Day, the immediately preceding Business Day).

                  In addition, the Trustee shall indemnify and hold harmless the
Depositor and its officers, directors and Affiliates from and against any
losses, damages, penalties, fines, forfeitures, reasonable and necessary legal
fees and related costs, judgments and other costs and expenses arising out of or
based upon a breach of the Trustee's obligations under this Section 4.14 or the
Trustee's negligence, bad faith or willful misconduct in connection therewith.
The Depositor shall indemnify and hold harmless the Trustee and its officers,
directors and Affiliates from and against any losses, damages, penalties, fines,
forfeitures, reasonable and necessary legal fees and related costs, judgments
and other costs and expenses arising out of or based upon a breach of the
Depositor's obligations under this Section 4.14 or the Depositor's negligence,
bad faith or willful misconduct in connection therewith. If the indemnification
provided for herein is unavailable or insufficient to hold harmless the
Depositor or the Trustee, as applicable, then the other party, in connection
with a breach of its respective obligations under this Section 4.14 or its
respective negligence, bad faith or willful misconduct in connection therewith,
agrees that it shall contribute to the amount paid or payable by the other party
as a result of the losses, claims, damages or liabilities of the other party in
such proportion as is appropriate to reflect the relative fault of the Depositor
on the one hand and the Trustee on the other.

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

                  (e) Prior to January 30 of the first year in which the Trustee
is able to do so under applicable law, the Trustee shall file a Form 15
Suspension Notification with respect to the Trust.

                  (f) To the extent that, following the Closing Date, the
Depositor certifies that reports and certifications differing from those
required under this Section 4.14 comply with the reporting requirements under
the Exchange Act, the Trustee hereby agrees that it will reasonably cooperate to
amend the provisions of this Section 4.14 in order to comply with such amended
reporting requirements and such amendment of this Section 4.14. Any such
amendment may result in the reduction of the reports filed by the Depositor
under the Exchange Act. Notwithstanding the foregoing, the Trustee shall not be
obligated to enter into any amendment pursuant to this Section that adversely
affects its obligations and immunities under this Agreement.

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                                   ARTICLE V

                                THE CERTIFICATES

                  SECTION 5.01.     The Certificates.

                  (a) Each of the Class A, Class M-1, Class M-2, Class S, Class
CE, Class P and Class R Certificates shall be substantially in the forms annexed
hereto as exhibits, and shall, on original issue, be executed, authenticated and
delivered by the Trustee to or upon the order of the Depositor concurrently with
the sale and assignment to the Trustee of the Trust Fund. The Class A
Certificates, the Mezzanine Certificates and the Class S Certificates shall be
initially evidenced by one or more Certificates representing a Percentage
Interest with a minimum dollar denomination of $50,000 Certificate Principal
Balance (Notional Amount in the case of the Class S Certificates) and integral
dollar multiples of $1.00 Certificate Principal Balance (Notional Amount in the
case of the Class S Certificates) in excess thereof, except that one Certificate
of each such Class may be in a different denomination so that the sum of the
denominations of all outstanding Certificates of such Class shall equal the
Certificate Principal Balance (aggregate Notional Amount in the case of the
Class S Certificates) of such Class on the Closing Date. The Class CE
Certificates shall be initially evidenced by one or more Certificates
representing a Percentage Interest with a minimum dollar denomination of $50,000
Notional Amount and integral multiples of $1,000 Notional Amount in excess
thereof, except that one Certificate of such Class may be in a different
denomination so that the sum of the denominations of all outstanding
Certificates of such Class shall equal the aggregate Notional Amount of such
Class on the Closing Date. The Class P Certificates and the Class R Certificates
are issuable in any Percentage Interests; provided, however, that the sum of all
such percentages for each such Class totals 100%.

                  The Certificates shall be executed by manual or facsimile
signature on behalf of the Trustee by a Responsible Officer. Certificates
bearing the manual or facsimile signatures of individuals who were, at the time
when such signatures were affixed, authorized to sign on behalf of the Trustee
shall bind the Trust, notwithstanding that such individuals or any of them have
ceased to be so authorized prior to the authentication and delivery of such
Certificates or did not hold such offices at the date of such Certificate. No
Certificate shall be entitled to any benefit under this Agreement or be valid
for any purpose, unless such Certificate shall have been manually authenticated
by the Trustee substantially in the form provided for herein, and such
authentication upon any Certificate shall be conclusive evidence, and the only
evidence, that such Certificate has been duly authenticated and delivered
hereunder. All Certificates shall be dated the date of their authentication.

                  (b) The Mezzanine Certificates shall initially be issued as
one or more Certificates held by the Book-Entry Custodian or, if appointed to
hold such Certificates as provided below, the Depository and registered in the
name of the Depository or its nominee and, except as provided below,
registration of such Certificates may not be transferred by the Trustee except
to another Depository that agrees to hold such Certificates for the respective
Certificate Owners with Ownership Interests therein. The Certificate Owners
shall hold their respective Ownership Interests in and to such Certificates
through the book-entry facilities of the Depository and, except as provided
below, shall not be entitled to definitive, fully registered Certificates
("Definitive Certificates") in respect of such Ownership Interests. All
transfers by Certificate Owners of their respective Ownership Interests in the
Book-Entry Certificates shall be made in accordance with the procedures
established by the Depository Participant or brokerage firm representing such
Certificate Owner. Each Depository Participant shall only transfer the Ownership
Interests in the Book-Entry Certificates of Certificate Owners it represents or
of brokerage firms for which it acts as agent in accordance with the
Depository's normal procedures. The Trustee shall initially act as the
Book-Entry Custodian and hereby agrees to act as such in accordance herewith and
in accordance with the agreement that it has with the Depository authorizing it
to act as such. The Book-Entry Custodian may, and if it is no longer qualified
to act as such, the Book-Entry Custodian shall, appoint, by a written instrument
delivered to the Depositor, the Master Servicer, the Trustee (if the Trustee is
not the Book-Entry Custodian) and any other transfer agent (including the
Depository or any successor Depository) to act as Book-Entry Custodian under
such conditions as the predecessor Book-Entry Custodian and the Depository or
any successor Depository may prescribe, provided that the predecessor Book-Entry
Custodian shall not be relieved of any of its duties or responsibilities by
reason of any such appointment of other than the Depository. If the Trustee
resigns or is removed in accordance with the terms hereof, the Depository shall
immediately succeed to its predecessor's duties as Book-Entry

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Custodian. The Depositor shall have the right to inspect, and to obtain copies
of, any Certificates held as Book-Entry Certificates by the Book-Entry
Custodian.

                  The Trustee, the Master Servicer and the Depositor may for all
purposes (including the making of payments due on the Book-Entry Certificates)
deal with the Depository as the authorized representative of the Certificate
Owners with respect to the Book-Entry Certificates for the purposes of
exercising the rights of Certificateholders hereunder. The rights of Certificate
Owners with respect to the Book-Entry Certificates shall be limited to those
established by law and agreements between such Certificate Owners and the
Depository Participants and brokerage firms representing such Certificate
Owners. Multiple requests and directions from, and votes of, the Depository as
Holder of the Book-Entry Certificates with respect to any particular matter
shall not be deemed inconsistent if they are made with respect to different
Certificate Owners. The Trustee may establish a reasonable record date in
connection with solicitations of consents from or voting by Certificateholders
and shall give notice to the Depository of such record date.

                  If (i)(A) the Depositor advises the Trustee in writing that
the Depository is no longer willing or able to properly discharge its
responsibilities as Depository, and (B) the Depositor is unable to locate a
qualified successor, (ii) the Depositor at its option advises the Trustee in
writing that it elects to terminate the book-entry system through the Depository
or (iii) after the occurrence of a Master Servicer Event of Termination,
Certificate Owners representing in the aggregate not less than 51% of the
Ownership Interests of the Book-Entry Certificates advise the Trustee through
the Depository, in writing, that the continuation of a book-entry system through
the Depository is no longer in the best interests of the Certificate Owners, the
Trustee shall notify all Certificate Owners, through the Depository, of the
occurrence of any such event and of the availability of Definitive Certificates
to Certificate Owners requesting the same. Upon surrender to the Trustee of the
Book-Entry Certificates by the Book-Entry Custodian or the Depository, as
applicable, accompanied by registration instructions from the Depository for
registration of transfer, the Trustee shall issue the Definitive Certificates.
Such Definitive Certificates will be issued in minimum denominations of $50,000,
except that any beneficial ownership that was represented by a Book-Entry
Certificate in an amount less than $50,000 immediately prior to the issuance of
a Definitive Certificate shall be issued in a minimum denomination equal to the
amount represented by such Book-Entry Certificate. None of the Depositor, the
Master Servicer or the Trustee shall be liable for any delay in the delivery of
such instructions and may conclusively rely on, and shall be protected in
relying on, such instructions. Upon the issuance of Definitive Certificates all
references herein to obligations imposed upon or to be performed by the
Depository shall be deemed to be imposed upon and performed by the Trustee, to
the extent applicable with respect to such Definitive Certificates, and the
Trustee shall recognize the Holders of the Definitive Certificates as
Certificateholders hereunder.

                  SECTION 5.02.     Registration of Transfer and Exchange of
                                    Certificates.

                  (a) The Certificate Registrar shall cause to be kept at the
Corporate Trust Office a Certificate Register in which, subject to such
reasonable regulations as it may prescribe, the Certificate Registrar shall
provide for the registration of Certificates and of transfers and exchanges of
Certificates as herein provided. The Trustee shall initially serve as
Certificate Registrar for the purpose of registering Certificates and transfers
and exchanges of Certificates as herein provided.

                  Upon surrender for registration of transfer of any Certificate
at any office or agency of the Certificate Registrar maintained for such purpose
pursuant to the foregoing paragraph and, in the case of a Class R Certificate,
upon satisfaction of the conditions set forth below, the Trustee shall execute,
authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Certificates of the same aggregate Percentage
Interest.

                  At the option of the Certificateholders, Certificates may be
exchanged for other Certificates in authorized denominations and the same
aggregate Percentage Interests, upon surrender of the Certificates to be
exchanged at any such office or agency. Whenever any Certificates are so
surrendered for exchange, the Trustee shall execute and authenticate and deliver
the Certificates which the Certificateholder making the exchange is entitled to
receive. Every Certificate presented or surrendered for registration of transfer
or exchange shall (if so required by the Trustee or the Certificate Registrar)
be duly endorsed by, or be accompanied by a written instrument of transfer
satisfactory to the Trustee and the Certificate Registrar duly executed by, the
Holder thereof or his attorney duly

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authorized in writing. In addition, with respect to each Class R Certificate,
the Holder thereof may exchange, in the manner described above, such Class R
Certificate for four separate Certificates, each representing such Holder's
respective Percentage Interest in the Class R-1 Interest, the Class R-2 Interest
and the Class R-3 Interest, respectively, in each case that was evidenced by the
Class R Certificate being exchanged.

                  (b) No transfer, sale, pledge or other disposition of any
Class CE, Class P or Class R Certificate shall be made unless such disposition
is exempt from the registration requirements of the Securities Act of 1933, as
amended (the "1933 Act"), and any applicable state securities laws or is made in
accordance with the 1933 Act and laws. In the event of any such transfer, except
with respect to the initial transfer of the Class CE, Class P and Class R
Certificates by the Depositor, (i) the Trustee and the Depositor shall require a
written Opinion of Counsel (which may be in-house counsel) acceptable to and in
form and substance reasonably satisfactory to the Trustee and the Depositor that
such transfer may be made pursuant to an exemption, describing the applicable
exemption and the basis therefor, from the 1933 Act or is being made pursuant to
the 1933 Act, which Opinion of Counsel shall not be an expense of the Trustee or
the Depositor or (ii) the Trustee shall require the transferor to execute a
transferor certificate (in substantially the form attached hereto as Exhibit J)
and the transferee to execute an investment letter (in substantially the form
attached hereto as Exhibit H) acceptable to and in form and substance reasonably
satisfactory to the Depositor and the Trustee certifying to the Depositor and
the Trustee the facts surrounding such transfer, which investment letter shall
not be an expense of the Trustee or the Depositor. The Holder of a Class CE,
Class P or Class R Certificate desiring to effect such transfer shall, and does
hereby agree to, indemnify the Trustee and the Depositor against any liability
that may result if the transfer is not so exempt or is not made in accordance
with such federal and state laws.

                  Except with respect to the initial transfer of the ERISA
Restricted Certificates by the Depositor, no transfer of an ERISA Restricted
Certificate or any interest therein shall be made to any Plan subject to ERISA
or Section 4975 of the Code, any Person acting, directly or indirectly, on
behalf of any such Plan or any Person acquiring such Certificates with "Plan
Assets" of a Plan within the meaning of the Department of Labor regulation
promulgated at 29 C.F.R. ss. 2510.3-101 ("Plan Assets"), as certified by such
transferee in the form of Exhibit Q, unless the Depositor, the Trustee and the
Master Servicer are provided with an Opinion of Counsel which establishes to the
satisfaction of the Depositor, the Trustee and the Master Servicer that the
purchase of such Certificates is permissible under applicable law, will not
constitute or result in any prohibited transaction under ERISA or Section 4975
of the Code and will not subject the Depositor, the Master Servicer, the Trustee
or the Trust Fund to any obligation or liability (including obligations or
liabilities under ERISA or Section 4975 of the Code) in addition to those
undertaken in this Agreement, which Opinion of Counsel shall not be an expense
of the Depositor, the Master Servicer, the Trustee or the Trust Fund.

                  Each beneficial owner of a Mezzanine Certificates or any
interest therein shall be deemed to have represented, by virtue of its
acquisition or holding of that certificate or interest therein, that either (i)
it is not a Plan investor, (ii) it has acquired and is holding such Mezzanine
Certificates in reliance on the Underwriters' Exemption, and that it understands
that there are certain conditions to the availability of the Underwriters'
Exemption, including that the Mezzanine Certificates must be rated, at the time
of purchase, not lower than "BBB-" (or its equivalent) by Moody's, Fitch or S&P
or (iii) (1) it is an insurance company, (2) the source of funds used to acquire
or hold the certificate or interest therein is an "insurance company general
account," as such term is defined in PTCE 95-60, and (3) the conditions in
Sections I and III of PTCE 95-60 have been satisfied.

                  If any Class CE Certificate, Class P Certificate or Class R
Certificate or any interest therein is acquired or held in violation of the
provisions of the preceding paragraph, the next permitted beneficial owner will
be treated as the beneficial owner of that Certificate retroactive to the date
of transfer to the purported beneficial owner. Any purported beneficial owner
whose acquisition or holding of any such Certificate or interest therein was
effected in violation of the provisions of the preceding paragraph shall
indemnify and hold harmless the Depositor, the Master Servicer, the Guarantor,
the NIMS Insurer, the Trustee and the Trust from and against any and all
liabilities, claims, costs or expenses incurred by those parties as a result of
that acquisition or holding.

                  Each Person who has or who acquires any Ownership Interest in
a Class R Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions and to
have irrevocably appointed the Depositor or its designee as its attorney-in-fact
to negotiate the terms of any mandatory

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sale under clause (v) below and to execute all instruments of transfer and to do
all other things necessary in connection with any such sale, and the rights of
each Person acquiring any Ownership Interest in a Class R Certificate are
expressly subject to the following provisions:

                  (i) Each Person holding or acquiring any Ownership Interest in
         a Class R Certificate shall be a Permitted Transferee and shall
         promptly notify the Trustee of any change or impending change in its
         status as a Permitted Transferee.

                  (ii) No Person shall acquire an Ownership Interest in a Class
         R Certificate unless such Ownership Interest is a pro rata undivided
         interest.

                  (iii) In connection with any proposed transfer of any
         Ownership Interest in a Class R Certificate, the Trustee shall as a
         condition to registration of the transfer, require delivery to it, in
         form and substance satisfactory to it, of each of the following:

                           (A) an affidavit in the form of Exhibit I hereto from
                  the proposed transferee to the effect that such transferee is
                  a Permitted Transferee and that it is not acquiring its
                  Ownership Interest in the Class R Certificate that is the
                  subject of the proposed transfer as a nominee, trustee or
                  agent for any Person who is not a Permitted Transferee; and

                           (B) a covenant of the proposed transferee to the
                  effect that the proposed transferee agrees to be bound by and
                  to abide by the transfer restrictions applicable to the Class
                  R Certificates.

                  (iv) Any attempted or purported transfer of any Ownership
         Interest in a Class R Certificate in violation of the provisions of
         this Section shall be absolutely null and void and shall vest no rights
         in the purported transferee. If any purported transferee shall, in
         violation of the provisions of this Section, become a Holder of a Class
         R Certificate, then the prior Holder of such Class R Certificate that
         is a Permitted Transferee shall, upon discovery that the registration
         of transfer of such Class R Certificate was not in fact permitted by
         this Section, be restored to all rights as Holder thereof retroactive
         to the date of registration of transfer of such Class R Certificate.
         The Trustee shall be under no liability to any Person for any
         registration of transfer of a Class R Certificate that is in fact not
         permitted by this Section or for making any distributions due on such
         Class R Certificate to the Holder thereof or taking any other action
         with respect to such Holder under the provisions of this Agreement so
         long as the Trustee received the documents specified in clause (iii).
         The Trustee shall be entitled to recover from any Holder of a Class R
         Certificate that was in fact not a Permitted Transferee at the time
         such distributions were made all distributions made on such Class R
         Certificate. Any such distributions so recovered by the Trustee shall
         be distributed and delivered by the Trustee to the prior Holder of such
         Class R Certificate that is a Permitted Transferee.

                  (v) If any Person other than a Permitted Transferee acquires
         any Ownership Interest in a Class R Certificate in violation of the
         restrictions in this Section, then the Trustee shall have the right but
         not the obligation, without notice to the Holder of such Class R
         Certificate or any other Person having an Ownership Interest therein,
         to notify the Depositor to arrange for the sale of such Class R
         Certificate. The proceeds of such sale, net of commissions (which may
         include commissions payable to the Depositor or its affiliates in
         connection with such sale), expenses and taxes due, if any, will be
         remitted by the Trustee to the previous Holder of such Class R
         Certificate that is a Permitted Transferee, except that in the event
         that the Trustee determines that the Holder of such Class R Certificate
         may be liable for any amount due under this Section or any other
         provisions of this Agreement, the Trustee may withhold a corresponding
         amount from such remittance as security for such claim. The terms and
         conditions of any sale under this clause (v) shall be determined in the
         sole discretion of the Trustee and it shall not be liable to any Person
         having an Ownership Interest in a Class R Certificate as a result of
         its exercise of such discretion.

                  (vi) If any Person other than a Permitted Transferee acquires
         any Ownership Interest in a Class R Certificate in violation of the
         restrictions in this Section, then the Trustee will provide to the
         Internal Revenue

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         Service, and to the persons specified in Sections 860E(e)(3) and (6) of
         the Code, information needed to compute the tax imposed under Section
         860E(e)(5) of the Code on transfers of residual interests to
         disqualified organizations. The Trustee will be entitled to additional
         compensation from such person for the cost of providing such
         information, but the Trustee shall in all events be required to furnish
         such information.

                  The foregoing provisions of this Section shall cease to apply
to transfers occurring on or after the date on which there shall have been
delivered to the Trustee, the Guarantor and the NIMS Insurer, in form and
substance satisfactory to the Trustee, the Guarantor and the NIMS Insurer, an
Opinion of Counsel to the effect that such removal will not cause any Trust
REMIC hereunder to fail to qualify as a REMIC or have any adverse impact on such
REMIC.

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

                  All Certificates surrendered for registration of transfer or
exchange shall be canceled by the Certificate Registrar and disposed of pursuant
to its standard procedures.

                  SECTION 5.03.     Mutilated, Destroyed, Lost or Stolen
                                    Certificates.

                  If (i) any mutilated Certificate is surrendered to the
Certificate Registrar or the Certificate Registrar receives evidence to its
satisfaction of the destruction, loss or theft of any Certificate and (ii) there
is delivered to the Depositor, the Certificate Registrar and the Trustee (for
its own benefit and the benefit of the Trust and each Certificateholder) such
security or indemnity as may be required by them to save each of them, the Trust
and each Certificateholder, harmless, then, in the absence of notice to the
Trustee or the Certificate Registrar that such Certificate has been acquired by
a bona fide purchaser, the Trustee shall execute on behalf of the Trust,
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Certificate, a new Certificate of like tenor and
Percentage Interest. Upon the issuance of any new Certificate under this
Section, the Trustee or the Certificate Registrar may require the payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto and any other expenses (including the fees and expenses of
the Trustee and the Certificate Registrar) in connection therewith. Any
duplicate Certificate issued pursuant to this Section, shall constitute complete
and indefeasible evidence of ownership in the Trust, as if originally issued,
whether or not the lost, stolen or destroyed Certificate shall be found at any
time.

                  SECTION 5.04.     Persons Deemed Owners.

                  The Master Servicer, the Depositor, the Trustee, the
Certificate Registrar, any Paying Agent and any agent of the Master Servicer,
the Depositor, the Guarantor and the NIMS Insurer, the Certificate Registrar,
any Paying Agent or the Trustee may treat the Person, including a Depository, in
whose name any Certificate is registered as the owner of such Certificate for
the purpose of receiving distributions pursuant to Section 4.01 and for all
other purposes whatsoever, and none of the Master Servicer, the Trust, the
Guarantor, the NIMS Insurer, the Trustee nor any agent of any of them shall be
affected by notice to the contrary.

                  SECTION 5.05.     Appointment of Paying Agent.

                  (a) The Paying Agent shall make distributions to
Certificateholders from the Distribution Account pursuant to Section 4.01 and
shall report the amounts of such distributions to the Trustee. The duties of the
Paying Agent may include the obligation (i) to withdraw funds from the
Collection Account pursuant to Section 3.05 and for the purpose of making the
distributions referred to above and (ii) to distribute statements and provide
information to Certificateholders as required hereunder. The Paying Agent
hereunder shall at all times be an entity duly incorporated and validly existing
under the laws of the United States of America or any state thereof, authorized
under such laws to exercise corporate trust powers and subject to supervision or
examination by federal or state authorities. The Paying Agent shall initially be
the Trustee. The Trustee may appoint a successor to act as Paying Agent, which
appointment shall be reasonably satisfactory to the Guarantor.

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                  (b) The Trustee shall cause the Paying Agent (if other than
the Trustee) to execute and deliver to the Trustee an instrument in which such
Paying Agent shall agree with the Trustee that such Paying Agent shall hold all
sums, if any, held by it for payment to the Certificateholders in trust for the
benefit of the Certificateholders entitled thereto until such sums shall be paid
to such Certificateholders and shall agree that it shall comply with all
requirements of the Code regarding the withholding of payments in respect of
Federal income taxes due from Certificate Owners and otherwise comply with the
provisions of this Agreement applicable to it.

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                                   ARTICLE VI

                THE SELLER, THE MASTER SERVICER AND THE DEPOSITOR

                  SECTION 6.01.     Liability of the Seller, the Master Servicer
                                    and the Depositor.

                  The Seller and the Master Servicer shall be liable in
accordance herewith only to the extent of the obligations specifically imposed
upon and undertaken by the Seller or Master Servicer, as the case may be,
herein. The Depositor shall be liable in accordance herewith only to the extent
of the obligations specifically imposed upon and undertaken by the Depositor.

                  SECTION 6.02.     Merger or Consolidation of, or Assumption of
                                    the Obligations of, the Seller, the Master
                                    Servicer or the Depositor.

                  Any entity into which the Seller, the Master Servicer or
Depositor may be merged or consolidated, or any entity resulting from any
merger, conversion or consolidation to which the Seller, the Master Servicer or
the Depositor shall be a party, or any corporation succeeding to the business of
the Seller, the Master Servicer or the Depositor, shall be the successor of the
Seller, the Master Servicer or the Depositor, as the case may be, hereunder,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto, anything herein to the contrary notwithstanding;
provided, however, that the successor Master Servicer shall satisfy all the
requirements of Section 7.02 with respect to the qualifications of a successor
Master Servicer.

                  SECTION 6.03.     Limitation on Liability of the Master
                                    Servicer and Others; Indemnification.

                  Neither the Master Servicer nor any of the directors or
officers or employees or agents of the Master Servicer shall be under any
liability to the Trust Fund or the Certificateholders for any action taken or
for refraining from the taking of any action by the Master Servicer in good
faith pursuant to this Agreement, or for errors in judgment; provided, however,
that this provision shall not protect the Depositor, the Seller, the Master
Servicer or any such Person against any breach of warranties or representations
made herein, or against any specific liability imposed on the Master Servicer
for a breach of the Servicing Standard or against any liability which would
otherwise be imposed by reason of its respective willful misfeasance, bad faith,
fraud or negligence in the performance of its or by reason of its reckless
disregard of its respective obligations and duties hereunder; provided, further,
that this provision shall not be construed to entitle the Master Servicer to
indemnity in the event that amounts advanced by the Master Servicer to retire
any senior lien exceed Liquidation Proceeds (in excess of related liquidation
expenses) realized with respect to the related Mortgage Loan. The preceding
sentence shall not limit the obligations of the Seller pursuant to Section 8.05.

                  The Depositor, the Master Servicer, the Seller, the Trustee,
the Guarantor and any director or officer or employee or agent of the Depositor,
the Master Servicer, the Seller, the Trustee or the Guarantor may rely in good
faith on any document of any kind PRIMA FACIE properly executed and submitted by
any Person respecting any matters arising hereunder. The Depositor, the Master
Servicer, the Seller and any director or officer or employee or agent of the
Depositor, the Master Servicer or the Seller shall be indemnified by the Trust
Fund and held harmless against any loss, liability or expense incurred in
connection with any legal action relating to this Agreement or the Certificates,
other than any loss, liability or expense related to any specific Mortgage Loan
or Mortgage Loans (except as any such loss, liability or expense shall be
otherwise reimbursable pursuant to this Agreement) and any loss, liability or
expense incurred by reason of its willful misfeasance, bad faith, fraud or
negligence a breach of a representation or warranty hereunder or, in the case of
the Master Servicer, a breach of the Servicing Standard in the performance of
duties hereunder or by reason of its reckless disregard of obligations and
duties hereunder. None of the Depositor, the Master Servicer, the Seller or the
Trustee shall be under any obligation to appear in, prosecute or defend any
legal action unless such action is related to its respective duties under this
Agreement and in its opinion does not expose it to any expense or liability;
provided, however, that the Master Servicer may in its discretion undertake any
action related to its obligations hereunder which it may deem necessary or
desirable with respect to this Agreement and the rights and duties of the
parties hereto and the interests of the Certificateholders hereunder. In such
event, the reasonable legal expenses and costs of such action and any liability
resulting therefrom shall be expenses, costs and liabilities of the Trust Fund
and the Master Servicer shall

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be entitled to be reimbursed from the Collection Account as and to the extent
provided in Section 3.05(a)(viii), any such right of reimbursement being prior
to the rights of the Certificateholders to receive any amount in the Collection
Account. This paragraph shall apply to the Master Servicer solely in its
capacity as Master Servicer hereunder and in no other capacities. Any
indemnification from the Trust Fund, as contemplated above, shall be payable by
the Trust Fund in the manner set forth in Section 3.05(a)(viii).

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

                  SECTION 6.04.     Master Servicer Not to Resign.

                  Subject to the provisions of Section 7.01 and Section 6.02,
the Master Servicer shall not resign from the obligations and duties hereby
imposed on it except (i) upon determination that the performance of its
obligations or duties hereunder are no longer permissible under applicable law
or are in material conflict by reason of applicable law with any other
activities carried on by it or its subsidiaries or Affiliates, the other
activities of the Master Servicer so causing such a conflict being of a type and
nature carried on by the Master Servicer or its subsidiaries or Affiliates at
the date of this Agreement or (ii) if the Master Servicer has proposed a
successor Master Servicer to the Trustee and the Guarantor in writing and such
proposed successor Master Servicer is reasonably acceptable to the Trustee and
the Guarantor (in the case of the Guarantor, as evidenced by a letter to the
Trustee, after consulting with the NIMS Insurer); provided, however, that no
such resignation by the Master Servicer shall become effective until such
successor Master Servicer or, in the case of (i) above, the Trustee shall have
assumed the Master Servicer's responsibilities and obligations hereunder or the
Trustee shall have designated a successor Master Servicer in accordance with
Section 7.02. Any such resignation shall not relieve the Master Servicer of
responsibility for any of the obligations specified in Sections 7.01 and 7.02 as
obligations that survive the resignation or termination of the Master Servicer.
Any such determination permitting the resignation of the Master Servicer
pursuant to clause (i) above shall be evidenced by an Opinion of Counsel to such
effect delivered to the Trustee, the Guarantor and the NIMS Insurer.

                  SECTION 6.05.     Delegation of Duties.

                  In the ordinary course of business and only with the approval
of the Guarantor, the Master Servicer may delegate any of its duties hereunder
to any Person, including any of its Affiliates, who agrees to conduct such
duties in accordance with standards comparable to those set forth in Section
3.01; provided, however, that the Guarantor shall consult with the NIMS Insurer,
but the decision to approve such person shall be in the Guarantor's sole
discretion. Such delegation shall not relieve the Master Servicer of its
liabilities and responsibilities with respect to such duties and shall not
constitute a resignation within the meaning of Section 6.04. The Master Servicer
shall provide the Trustee, the NIMS Insurer and the Guarantor with 60 days prior
written notice prior to the delegation of any of its duties to any Person other
than any of the Master Servicer's Affiliates or their respective successors and
assigns.

                  SECTION 6.06.     Subservicing Agreements and Successor
                                    Subservicer.

                  (a) The Master Servicer may enter into subservicing agreements
for any servicing and administration of Mortgage Loans with any institution
which is pre-approved by the Guarantor and an approved Freddie

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Mac Seller/Master Servicer as indicated in writing, and which represents and
warrants that it is in compliance with the laws of each state necessary to
enable it to perform its obligations under such subservicing agreement;
provided, however, that in connection with such subservicing agreement, the
Guarantor shall consult with the NIMS Insurer, but the decision to approve such
subservicing agreement shall remain in the Guarantor's sole discretion. For this
purpose, subservicing shall not be deemed to include the use of a tax service,
or services for reconveyance, insurance or brokering REO Property. The Master
Servicer shall give prior notice to the Seller, the Guarantor, the NIMS Insurer
and the Trustee of the appointment of any subservicer and shall furnish to the
Seller, the NIMS Insurer and the Guarantor a copy of such subservicing
agreement. For purposes of this Agreement, the Master Servicer shall be deemed
to have received payments on Mortgage Loans when any subservicer has received
such payments. Any such subservicing agreement shall be consistent with and not
violate the provisions of this Agreement. Each subservicing agreement shall
provide that a successor Master Servicer shall have the option to terminate such
agreement without payment of any fees if the predecessor Master Servicer is
terminated or resigns. The Guarantor shall, after consultation with the NIMS
Insurer, have the right to direct the Master Servicer (at the Master Servicer's
expense) to terminate any subservicer that (i) having previously been an
approved Freddie Mac Seller/Master Servicer, no longer has such approval or (ii)
at the Guarantor's reasonable request.

                  (b) The Master Servicer may terminate any subservicing
agreement to which it is a party in accordance with the terms and conditions of
such subservicing agreement and either itself directly service the related
Mortgage Loans or enter into a subservicing agreement with a successor
subservicer that qualifies under Section 6.06(a).

                  SECTION 6.07.     Liability of the Master Servicer.

                  Notwithstanding any subservicing agreement or the provisions
of this Agreement relating to agreements or arrangements between the Master
Servicer and a subservicer or reference to actions taken through a subservicer
or otherwise, the Master Servicer shall remain obligated and primarily liable to
the Trustee, the Guarantor and the Certificateholders for the servicing and
administering of the Mortgage Loans in accordance with the provisions of Article
III without diminution of such obligation or liability by virtue of such
subservicing agreements or arrangements or by virtue of indemnification from the
subservicer and to the same extent and under the same terms and conditions as if
the Master Servicer alone were servicing and administering the Mortgage Loans.
The Master Servicer shall be entitled to enter into any agreement with a
subservicer for indemnification of the Master Servicer by such subservicer and
nothing contained in this Agreement shall be deemed to limit or modify such
indemnification.

                  SECTION 6.08.     Inspection.

                  Each of the Seller and the Master Servicer shall afford the
Guarantor, the NIMS Insurer and the Trustee, upon reasonable advance notice,
during normal business hours, access to all records maintained by the Seller and
the Master Servicer, respectively, in respect of its rights and obligations
hereunder and access to officers of the Master Servicer and the Seller
responsible for such obligations. Upon request, the Master Servicer and the
Seller, respectively, shall furnish to the Guarantor and the NIMS Insurer its
most recent publicly available financial statements and such other information
relating to its capacity to perform its obligations under this Agreement. The
Master Servicer also shall afford the Guarantor and the NIMS Insurer, upon
reasonable notice, during normal business hours, the right to audit the Master
Servicer's servicing practices.

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                                   ARTICLE VII

                                     DEFAULT

                  SECTION 7.01.     Master Servicer Events of Termination.

                  (a) If any one of the following events ("Master Servicer
Events of Termination") shall occur and be continuing:

                  (i) (A) The failure by the Master Servicer to make any
         Advance; or (B) any other failure by the Master Servicer to deposit in
         the Collection Account or Distribution Account any deposit required to
         be made under the terms of this Agreement which continues unremedied
         for a period of one Business Day after the date upon which written
         notice of such failure shall have been given to the Master Servicer by
         the Trustee or to the Trustee by the Guarantor, the NIMS Insurer or by
         any Holder of a Regular Certificate evidencing at least 25% of the
         Voting Rights; or

                  (ii) The failure by the Master Servicer to make any required
         Servicing Advance or to cover any Prepayment Interest Shortfall which
         failure continues unremedied for a period of 15 days, or the failure by
         the Master Servicer duly to observe or perform, in any material
         respect, any other covenants, obligations or agreements of the Master
         Servicer as set forth in this Agreement, which failure continues
         unremedied for a period of 15 days, after the date (A) on which written
         notice of such failure, requiring the same to be remedied, shall have
         been given to the Master Servicer by the Trustee or to the Trustee by
         the Guarantor, the NIMS Insurer or by any Holder of a Regular
         Certificate evidencing at least 25% of the Voting Rights or (B) actual
         knowledge of such failure by a Servicing Officer of the Master
         Servicer; or

                  (iii) The entry against the Master Servicer of a decree or
         order by a court or agency or supervisory authority having jurisdiction
         in the premises for the appointment of a trustee, conservator, receiver
         or liquidator in any insolvency, conservatorship, receivership,
         readjustment of debt, marshalling of assets and liabilities or similar
         proceedings, or for the winding up or liquidation of its affairs, and
         the continuance of any such decree or order unstayed and in effect for
         a period of 60 days; or

                  (iv) The Master Servicer shall voluntarily go into
         liquidation, consent to the appointment of a conservator or receiver or
         liquidator or similar person in any insolvency, readjustment of debt,
         marshalling of assets and liabilities or similar proceedings of or
         relating to the Master Servicer or of or relating to all or
         substantially all of its property; or a decree or order of a court or
         agency or supervisory authority having jurisdiction in the premises for
         the appointment of a conservator, receiver, liquidator or similar
         person in any insolvency, readjustment of debt, marshalling of assets
         and liabilities or similar proceedings, or for the winding- up or
         liquidation of its affairs, shall have been entered against the Master
         Servicer and such decree or order shall have remained in force
         undischarged, unbonded or unstayed for a period of 60 days; or the
         Master Servicer shall admit in writing its inability to pay its debts
         generally as they become due, file a petition to take advantage of any
         applicable insolvency or reorganization statute, make an assignment for
         the benefit of its creditors or voluntarily suspend payment of its
         obligations;

                  (v) A Cumulative Annual Loss Master Servicer Termination
         Trigger, a Cumulative Loss Master Servicer Termination Trigger or a
         Delinquency Master Servicer Termination Trigger has occurred and is
         continuing;

                  (vi) The Master Servicer shall fail to maintain a net worth of
         $20,000,000 or more;

                  (vii) The Master Servicer is no longer an approved servicer of
         Freddie Mac;

                  (viii) The Master Servicer's failure to comply with its
         reporting obligations under Section 4.04, if so provided in Section
         4.05(d) and Section 4.06(b); or

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                  (xi) An event of default shall occur under an Advance Facility
         consented to by Guarantor and NIMS Insurer pursuant to Section 3.23
         hereunder, loans under which facility are used by the Master Servicer
         to fund Advances and/or Servicing Advances made by the Master Servicer
         under this Agreement, as the term "event of default" is defined
         therein.

                  (b) then, and in each and every such case, so long as a Master
Servicer Event of Termination shall not have been remedied within the applicable
grace period, (x) with respect solely to clause (i)(A) above, if such Advance is
not made by 3:00 P.M. (New York time) on the Business Day immediately following
the day the Master Servicer receives notice of such failure, which notice the
Trustee shall give to the Master Servicer by 3:00 P.M. (New York time) on the
Master Servicer Remittance Date on which such Advance was required to be made,
then the Trustee shall at the direction of the Guarantor or may with the consent
of the Guarantor terminate all of the rights and obligations of the Master
Servicer under this Agreement and the Trustee, or a successor Master Servicer
appointed in accordance with Section 7.02, shall immediately make such Advance
and assume, pursuant to Section 7.02, the duties of a successor Master Servicer
and (y) in the case of (i)(B), (ii), (iii), (iv), (v), (vi), (ix) and (x) above,
the Trustee shall, at the direction of the Guarantor or the Holders of each
Class of Regular Certificates evidencing Percentage Interests aggregating not
less than 51% (with the consent of the Guarantor), by notice then given in
writing to the Master Servicer (and to the Trustee if given by Holders of
Certificates or the Guarantor), terminate all of the rights and obligations of
the Master Servicer as master servicer under this Agreement; provided, however,
that in connection with the termination of the Master Servicer hereunder, the
Guarantor shall consult with the NIMS Insurer, but the decision to terminate the
Master Servicer shall remain in the Guarantor's sole discretion; and, provided,
further, however, that in connection with the termination of the Master Servicer
under clause (v) above, the Guarantor agrees to visit the Master Servicer's
primary servicing site for a review prior to exercising its right to terminate
the Master Servicer hereunder, and such review shall be for the Guarantor to
determine in its sole discretion whether the Master Servicer should be
terminated hereunder. Such review may consist of, but is not limited to: a
process review, interviews with Master Servicer management and staff, file
reviews, and systems adequacy tests. No postponement of the enforcement of the
termination rights that may occur due to such a visit shall be construed as a
waiver of Guarantor's rights nor does it diminish Guarantor's rights to
terminate the Master Servicer at a future date. Any such notice to the Master
Servicer shall also be given to the NIMS Insurer, the Depositor and the Seller.
On or after the receipt by the Master Servicer (and by the Trustee if such
notice is given by the Holders or the Guarantor) of such written notice, all
authority and power of the Master Servicer under this Agreement, whether with
respect to the Certificates or the Mortgage Loans or otherwise, shall pass to
and be vested in the Trustee pursuant to and under this Section; and, without
limitation, and the Trustee is hereby authorized and empowered to execute and
deliver, on behalf of the Master Servicer, as attorney-in-fact or otherwise, any
and all documents and other instruments, and to do or accomplish all other acts
or things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement of each Mortgage
Loan and related documents or otherwise. The Master Servicer agrees to cooperate
with the Trustee (or the applicable successor Master Servicer) in effecting the
termination of the responsibilities and rights of the Master Servicer hereunder,
including, without limitation, the delivery to the Trustee of all documents and
records requested by it to enable it to assume the Master Servicer's functions
under this Agreement within ten Business Days subsequent to such notice, the
transfer within one Business Day subsequent to such notice to the Trustee (or
the applicable successor Master Servicer) and the Guarantor for the
administration by it of all cash amounts that shall at the time be held by the
Master Servicer and to be deposited by it in the Collection Account, the
Distribution Account, any REO Account or any Escrow Account or that have been
deposited by the Master Servicer in such accounts or thereafter received by the
Master Servicer with respect to the Mortgage Loans or any REO Property received
by the Master Servicer; provided however, that the Master Servicer shall
continue to be entitled to receive all amounts accrued or owing to it under this
Agreement on or prior to the date of such termination, whether in respect of
Advances and/or Servicing Advances or otherwise notwithstanding any such
termination, and shall continue to be entitled to the benefits of Section 6.03
with respect to events occurring prior to such termination. All reasonable costs
and expenses (including attorneys' fees) incurred in connection with
transferring the Mortgage Files to the successor Master Servicer and amending
this Agreement to reflect such succession as Master Servicer pursuant to this
Section shall be paid by the predecessor Master Servicer upon presentation of
reasonable documentation of such costs and expenses, and if such predecessor
Master Servicer defaults in its obligation to pay such costs and expenses, such
costs and expenses shall be paid by the successor Master Servicer or the Trustee
(in which case the successor Master Servicer or the Trustee, as applicable,
shall be entitled to reimbursement therefor from the assets of the Trust). Any
notice to the Master Servicer pursuant to this Section 7.01 may come from the
NIMS

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Insurer.

                  SECTION 7.02.     Trustee to Act; Appointment of Successor.

                  (a) Within 90 days of the time the Master Servicer (and the
Trustee, if notice is sent by the Holders) receives a notice of termination
pursuant to Section 7.01 or 6.04, the Trustee (or such other successor Master
Servicer as is acceptable to the Guarantor and approved in accordance with this
Agreement) shall be the successor in all respects to the Master Servicer in its
capacity as master servicer under this Agreement and the transactions set forth
or provided for herein and shall be subject to all the responsibilities, duties
and liabilities relating thereto placed on the Master Servicer by the terms and
provisions hereof arising on and after its succession. Notwithstanding the
foregoing, the parties hereto agree that the Trustee, in its capacity as
successor Master Servicer, immediately will assume all of the obligations of the
Master Servicer to make Advances. Notwithstanding the foregoing, the Trustee, in
its capacity as successor Master Servicer, shall not be responsible for the lack
of information and/or documents that it cannot obtain through reasonable
efforts. As compensation therefor, immediately upon assumption of the
obligations to make Advances, in its capacity as successor Master Servicer, the
Trustee (or such other successor Master Servicer) shall be entitled to such
compensation as the Master Servicer would have been entitled to hereunder if no
such notice of termination had been given. Notwithstanding the above, (i) if the
Trustee is unwilling to act as successor Master Servicer or (ii) if the Trustee
is legally unable so to act, the Trustee shall appoint or petition a court of
competent jurisdiction to appoint, any established housing and home finance
institution, bank or other mortgage loan or home equity loan master servicer
having a net worth of not less than $50,000,000 as the successor to the Master
Servicer hereunder in the assumption of all or any part of the responsibilities,
duties or liabilities of the Master Servicer hereunder; provided, that the
appointment of any such successor Master Servicer shall be approved by the
Guarantor, as evidenced by the Guarantor's prior written consent; provided
further, that in connection with the appointment of such successor Master
Servicer hereunder, the Guarantor shall consult with the NIMS Insurer, but the
decision to appoint a successor Master Servicer shall remain in the Guarantor's
sole discretion. Pending appointment of a successor to the Master Servicer
hereunder, unless the Trustee is prohibited by law from so acting, the Trustee
shall act in such capacity as hereinabove provided. In connection with such
appointment and assumption, the successor shall be entitled to receive
compensation out of payments on Mortgage Loans in an amount equal to the
compensation which the Master Servicer would otherwise have received pursuant to
Section 3.18 (or such other compensation as the Trustee and such successor shall
agree, not to exceed the Servicing Fee). The appointment of a successor Master
Servicer shall not affect any liability of the predecessor Master Servicer which
may have arisen under this Agreement prior to its termination as Master Servicer
to pay any deductible under an insurance policy pursuant to Section 3.10 or to
indemnify the Seller, the Depositor, the Trustee, the Guarantor, the NIMS
Insurer and each Certificateholder pursuant to Section 6.03, nor shall any
successor Master Servicer be liable for any acts or omissions of the predecessor
Master Servicer or for any breach by such Master Servicer of any of its
representations or warranties contained herein or in any related document or
agreement. The Trustee and such successor shall take such action, consistent
with this Agreement, as shall be necessary to effectuate any such succession.
All Servicing Transfer Costs shall be paid by the predecessor Master Servicer
upon presentation of reasonable documentation of such costs, and if such
predecessor Master Servicer defaults in its obligation to pay such costs, such
costs shall be paid by the successor Master Servicer or the Trustee (in which
case the successor Master Servicer or the Trustee, as applicable, shall be
entitled to reimbursement therefor from the assets of the Trust Fund). Any
indemnification from the Trust Fund, as contemplated above, shall be payable by
the Trust Fund in the manner set forth in Section 3.05(a)(ix); provided,
however, that the dollar limit set forth in such section shall not be applicable
if the appointment of a successor is made through a court proceeding or if the
predecessor master servicer is subject to any insolvency, bankruptcy,
reorganization, receivership or similar proceeding and the court having
jurisdiction over such a proceeding has determined that the "automatic stay"
provisions of section 362 of Title 11 of the U.S. Code or similar provisions are
applicable to this Agreement and has not appointed or approved a successor
master servicer or has ordered the Trustee to take action under this Agreement,
which will cause the Trustee to incur expenses, disbursements or advances under
this Agreement.

                  (b) Any successor, including the Trustee, to the Master
Servicer as master servicer shall during the term of its service as master
servicer continue to service and administer the Mortgage Loans for the benefit
of Certificateholders and the Guarantor, and maintain in force a policy or
policies of insurance covering errors and

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omissions in the performance of its obligations as Master Servicer hereunder and
a Fidelity Bond in respect of its officers, employees and agents to the same
extent as the Master Servicer is so required pursuant to Section 3.10.

                  (c) If the Master Servicer is terminated pursuant to Section
7.01, then the successor Master Servicer shall not be permitted to reimburse
itself directly for Advances or Servicing Advances under Section 3.05(a)(ii) or
Section 3.05(a)(iii) if the Master Servicer has not been fully reimbursed for
its Advances and Servicing Advances, but instead the successor Master Servicer
shall include such amounts in the applicable remittance to the Trustee made
pursuant to Section 3.04(g) to the extent of amounts on deposit in the
Collection Account on the related Master Servicer Remittance Date. The Trustee
is hereby authorized to pay to the terminated Master Servicer (or the related
Advancing Person in accordance with Section 3.23) and the successor Master
Servicer, as applicable, reimbursements for Advances and Servicing Advances from
the Distribution Account to the same extent each such Master Servicer would have
been permitted to reimburse itself for such Advances and/or Servicing Advances
in accordance with Section 3.05(a)(ii) or Section 3.05(a)(iii), as the case may
be. All Advances and Servicing Advances made pursuant to the terms of this
Agreement shall be deemed made and shall be reimbursed on a "first in-first out"
(FIFO) basis. At such time as the Master Servicer has been reimbursed for all
Advances and Servicing Advances made by it, the successor Master Servicer shall
no longer be required to remit in accordance with the first sentence of this
Section 7.02(c) and shall then be permitted to reimburse itself directly for
Advances and Servicing Advances in accordance with Section 3.05(a)(ii) or
Section 3.05(a)(iii).

                  SECTION 7.03.     Waiver of Defaults.

                  The Guarantor, after consultation with the NIMS Insurer, may
waive any events permitting removal of the Master Servicer as master servicer
pursuant to this Article VII. Upon any waiver of a past default, such default
shall cease to exist and any Master Servicer Event of Termination arising
therefrom shall be deemed to have been remedied for every purpose of this
Agreement. No such waiver shall extend to any subsequent or other default or
impair any right consequent thereto except to the extent expressly so waived.

                  SECTION 7.04.     Notification to Certificateholders.

                  (a) Upon any termination or appointment of a successor to the
Master Servicer pursuant to this Article VII or Section 6.04, the Trustee shall
give prompt written notice thereof to the Guarantor, the NIMS Insurer and the
Certificateholders at their respective addresses appearing in the Certificate
Register.

                  (b) No later than 60 days after the occurrence of any event
which constitutes or which, with notice or a lapse of time or both, would
constitute a Master Servicer Event of Termination for five Business Days after a
Responsible Officer of the Trustee becomes aware of the occurrence of such an
event, the Trustee shall transmit by mail to all Certificateholders notice of
such occurrence unless such default or Master Servicer Event of Termination
shall have been waived or cured. Such notice shall be given to the Guarantor and
the NIMS Insurer promptly after any such occurrence.

                  SECTION 7.05.     Survivability of Master Servicer
                                    Liabilities.

                  Notwithstanding anything herein to the contrary, upon
termination of the Master Servicer hereunder, any liabilities of the Master
Servicer which accrued prior to such termination shall survive such termination.

                  SECTION 7.06.     Rights of the Guarantor to Exercise Rights
                                    of Class A Certificateholders.

                  By accepting any ownership interest in its Certificate, each
Class A Certificateholder agrees that the Guarantor shall be deemed to be the
Certificateholder for all purposes (other than with respect to payment on the
Certificates) and shall have the right to exercise all rights of the Class A
Certificateholders under this Agreement and under each Class A Certificate
without any further consent of the Class A Certificateholders, including,
without limitation:

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                  (a) the right to require the Seller to repurchase Mortgage
         Loans pursuant to Section 2.03;

                  (b) the right to give notices of breach or to terminate the
         rights and obligations of the Master Servicer as master servicer
         pursuant to Section 7.01 and to consent to or direct waivers of Master
         Servicer defaults pursuant to Section 7.03;

                  (c) the right to direct the actions of the Trustee during the
         continuance of a Master Servicer default pursuant to Sections 7.01 and
         7.02;

                  (d) the right to institute proceedings against the Master
         Servicer pursuant to Section 7.01;

                  (e) the right to direct the Trustee to investigate certain
         matters pursuant to Section 8.02;

                  (f) the right to remove the Trustee pursuant to Section 8.07;

                  (g) the right to direct foreclosures upon the failure of the
         Master Servicer to do so in accordance with this Agreement;

                  (h) all Voting Rights; and

                  (i) any rights or remedies expressly given the Majority
         Certificateholders.

                  In addition, each Certificateholder agrees that the rights
specifically enumerated in this Agreement may be exercised by the
Certificateholders only with the prior written consent of the Guarantor.

                  SECTION 7.07.     Trustee to Act Solely with Consent of the
                                    Guarantor.

                  The Trustee shall not, without the Guarantor's consent or
unless directed by the Guarantor: (a) terminate the rights and obligations of
the Master Servicer as master servicer pursuant to Section 7.01; or (b) agree to
any amendment pursuant to Article XI; provided, however, that such consent shall
not be unreasonably withheld. The Guarantor may, in writing and in its sole
discretion renounce all or any of its rights under Section 7.06 or 7.07 or any
requirement for the Guarantor's consent for any period of time.

                  SECTION 7.08.     Mortgage Loans, Trust Fund and Accounts Held
                                    for Benefit of the Guarantor.

                  The Trustee shall hold the Trust Fund and the Mortgage Files
for the benefit of the Certificateholders and the Guarantor and all references
in this Agreement and in the Certificates to the benefit of Holders of the
Certificates shall be deemed to include the Guarantor. The Trustee shall
cooperate in all reasonable respects with any reasonable request by the
Guarantor for action to preserve or enforce the Guarantor's rights or interests
under this Agreement and the Certificates unless, as stated in an Opinion of
Counsel addressed to the Trustee and the Guarantor, such action is adverse to
the interests of the Certificateholders or diminishes the rights of the
Certificateholders or imposes additional burdens or restrictions on the
Certificateholders.

                  The Master Servicer hereby acknowledges and agrees that it
shall service the Mortgage Loans for the benefit of the Certificateholders and
for the benefit of the Guarantor, and all references in this Agreement to the
benefit of or actions on behalf of the Certificateholders shall be deemed to
include the Guarantor.

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                                  ARTICLE VIII

                                   THE TRUSTEE

                  SECTION 8.01.     Duties of Trustee.

                  The Trustee, prior to the occurrence of a Master Servicer
Event of Termination and after the curing of all Master Servicer Events of
Termination which may have occurred, undertakes to perform such duties and only
such duties as are specifically set forth in this Agreement. If a Master
Servicer Event of Termination has occurred (which has not been cured) of which a
Responsible Officer of the Trustee has actual knowledge as to which the Trustee
receives written notice, the Trustee shall exercise such of the rights and
powers vested in it by this Agreement, and use the same degree of care and skill
in their exercise, as a prudent man would exercise or use under the
circumstances in the conduct of his own affairs.

                  The Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to the Trustee which are specifically required to be furnished pursuant to any
provision of this Agreement, shall examine them to determine whether they
conform on their face to the requirements of this Agreement; provided, however,
that the Trustee will not be responsible for the accuracy or content of any such
resolutions, certificates, statements, opinions, reports, documents or other
instruments. If any such instrument is found not to conform to the requirements
of this Agreement in a material manner the Trustee shall take such action as it
deems appropriate to have the instrument corrected, and if the instrument is not
corrected to the Trustee's satisfaction, the Trustee will provide notice thereof
to the Guarantor and the NIMS Insurer and will, at the expense of the Seller,
which expense shall be reasonable given the scope and nature of the required
action, take such further action as directed by the Guarantor.

                  The Trustee's computer and other systems used in performing
its duties and obligations under this Agreement operate in a manner such that
(i) the Trustee can perform such duties and obligations in accordance with the
terms of this Agreement and (ii) the Trustee can operate its business in the
same manner as it is operating on the date hereof.

                  No provision of this Agreement shall be construed to relieve
the Trustee from liability for its own negligent action, its own negligent
failure to act or its own misconduct; provided, however, that:

                  (i) prior to the occurrence of a Master Servicer Event of
         Termination, and after the curing of all such Master Servicer Events of
         Termination which may have occurred, the duties and obligations of the
         Trustee shall be determined solely by the express provisions of this
         Agreement, the Trustee shall not be liable except for the performance
         of such duties and obligations as are specifically set forth in this
         Agreement, no implied covenants or obligations shall be read into this
         Agreement against the Trustee and, in the absence of bad faith on the
         part of the Trustee, the Trustee may conclusively rely, as to the truth
         of the statements and the correctness of the opinions expressed
         therein, upon any certificates or opinions furnished to the Trustee and
         conforming to the requirements of this Agreement;

                  (ii) the Trustee shall not be personally liable for an error
         of judgment made in good faith by a Responsible Officer of the Trustee,
         unless it shall be proved that the Trustee was negligent in
         ascertaining or investigating the facts related thereto;

                  (iii) the Trustee shall not be personally liable with respect
         to any action taken, suffered or omitted to be taken by it in good
         faith in accordance with the direction of the Guarantor or in
         accordance with the direction of the NIMS Insurer or the Majority
         Certificateholders (with the consent of the Guarantor, so long as no
         Guarantor Default exists) relating to the time, method and place of
         conducting any proceeding for any remedy available to the Trustee, or
         exercising or omitting to exercise any trust or power conferred upon
         the Trustee, under this Agreement; and

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                  (iv) the Trustee shall not be charged with knowledge of any
         failure by the Master Servicer to comply with the obligations of the
         Master Servicer referred to in clauses (i) and (ii) of Section 7.01(a)
         unless a Responsible Officer of the Trustee at the Corporate Trust
         Office obtains actual knowledge of such failure or the Trustee receives
         written notice of such failure from the Master Servicer, the Guarantor,
         the Majority Certificateholders or the NIMS Insurer.

                  The Depositor hereby directs the Trustee to execute agreements
with the NIMS Insurer or any other insurer in the form presented by the
Depositor or the Master Servicer. The Trustee shall not be required to expend or
risk its own funds or otherwise incur financial liability in the performance of
any of its duties hereunder, or in the exercise of any of its rights or powers,
if there is reasonable ground for believing that the repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured to
it, and none of the provisions contained in this Agreement shall in any event
require the Trustee to perform, or be responsible for the manner of performance
of, any of the obligations of the Master Servicer under this Agreement, except
during such time, if any, as the Trustee shall be the successor to, and be
vested with the rights, duties, powers and privileges of, the Master Servicer in
accordance with the terms of this Agreement. The Trustee is hereby directed by
the Depositor to execute and deliver the PMI Policy and the Cap Contracts on
behalf of the Trust Fund in the respective forms presented to it by the
Depositor.

                  SECTION 8.02.     Certain Matters Affecting the Trustee.

                  Except as otherwise provided in Section 8.01:

                  (i) the Trustee may request and rely upon, and shall be
         protected in acting or refraining from acting upon, any resolution,
         Officers' Certificate, certificate of auditors or any other
         certificate, statement, instrument, opinion, report, notice, request,
         consent, order, appraisal, bond or other paper or document reasonably
         believed by it to be genuine and to have been signed or presented by
         the proper party or parties, and the manner of obtaining consents
         evidencing the authorization of the execution thereof by
         Certificateholders shall be subject to such reasonable regulations as
         the Trustee may prescribe;

                  (ii) the Trustee may consult with counsel and any Opinion of
         Counsel shall be full and complete authorization and protection in
         respect of any action taken or suffered or omitted by it hereunder in
         good faith and in accordance with such Opinion of Counsel;

                  (iii) the Trustee shall be under no obligation to exercise any
         of the rights or powers vested in it by this Agreement, or to
         institute, conduct or defend any litigation hereunder or in relation
         hereto, at the request, order or direction of any of the
         Certificateholders or the Guarantor, pursuant to the provisions of this
         Agreement, unless such Certificateholders and the Guarantor shall have
         offered to the Trustee reasonable security or indemnity against the
         costs, expenses and liabilities which may be incurred therein or
         thereby; the right of the Trustee to perform any discretionary act
         enumerated in this Agreement shall not be construed as a duty, and the
         Trustee shall not be answerable for other than its negligence or
         willful misconduct in the performance of any such act;

                  (iv) the Trustee shall not be personally liable for any action
         taken, suffered or omitted by it in good faith and believed by it to be
         authorized or within the discretion or rights or powers conferred upon
         it by this Agreement;

                  (v) prior to the occurrence of a Master Servicer Event of
         Termination and after the curing of all Master Servicer Events of
         Termination which may have occurred, the Trustee shall not be bound to
         make any investigation into the facts or matters stated in any
         resolution, certificate, statement, instrument, opinion, report,
         notice, request, consent, order, approval, bond or other paper or
         documents, unless requested in writing to do so by the Guarantor, the
         NIMS Insurer or the Majority Certificateholder (with the consent of the
         Guarantor, so long as no Guarantor Default exists and is continuing);
         provided, however, that if the payment within a reasonable time to the
         Trustee of the costs, expenses or liabilities likely to be incurred by
         it in the making of such investigation is, in the opinion of the
         Trustee, not reasonably assured to the Trustee by the security

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         afforded to it by the terms of this Agreement, the Trustee may require
         reasonable indemnity against such cost, expense or liability as a
         condition to such proceeding. The reasonable expense of every such
         examination shall be paid by the Master Servicer or the NIMS Insurer
         (if requested by the NIMS Insurer) or, if paid by the Trustee, shall be
         reimbursed by the Master Servicer or the NIMS Insurer (if requested by
         the NIMS Insurer) upon demand (and if the Master Servicer or the NIMS
         Insurer, as applicable, defaults in its obligation to pay or reimburse
         the Trustee any amount as required under this clause (v), the Trustee
         shall be entitled to be paid or reimbursed such amount from the assets
         of the Trust Fund consisting of any amounts on deposit at any time in
         the Collection Account or the Distribution Account). Nothing in this
         clause (v) shall derogate from the obligation of the Master Servicer to
         observe any applicable law prohibiting disclosure of information
         regarding the Mortgagors;

                  (vi) the Trustee shall not be accountable, shall have no
         liability and makes no representation as to any acts or omissions
         hereunder of the Master Servicer until such time as the Trustee may be
         required to act as Master Servicer pursuant to Section 7.02 and
         thereupon only for the acts and omissions of the Trustee as successor
         Master Servicer;

                  (vii) the Trustee may execute any of the trusts or powers
         hereunder or perform any duties hereunder either directly or by or
         through agents or attorneys or a custodian; and

                  (viii) the right of the Trustee to perform any discretionary
         act enumerated in this Agreement shall not be construed as a duty, and
         the Trustee shall not be answerable for other than its negligence or
         willful misconduct in the performance of such act.

                  SECTION 8.03.     Trustee Not Liable for Certificates or
                                    Mortgage Loans.

                  The recitals contained herein and in the Certificates (other
than the authentication of the Trustee on the Certificates) shall be taken as
the statements of the Seller, and the Trustee assumes no responsibility for the
correctness of the same. The Trustee makes no representations as to the validity
or sufficiency of this Agreement or of the Certificates (other than the
signature and authentication of the Trustee on the Certificates) or of any
Mortgage Loan or related document. The Trustee shall not be accountable for the
use or application by the Master Servicer, or for the use or application of any
funds paid to the Master Servicer in respect of the Mortgage Loans or deposited
in or withdrawn from the Collection Account by the Master Servicer. The Trustee
shall at no time have any responsibility or liability for or with respect to the
legality, validity and enforceability of any Mortgage, any Assignment or any
Mortgage Loan, or the perfection and priority of any Mortgage (or any interest
therein) or the maintenance of any such perfection and priority, or for or with
respect to the sufficiency of the Trust Fund or its ability to generate the
payments to be distributed to Certificateholders under this Agreement,
including, without limitation: the existence, condition and ownership of any
Mortgaged Property; the existence and enforceability of any hazard insurance
thereon (other than if the Trustee shall assume the duties of the Master
Servicer pursuant to Section 7.02); the validity of the assignment of any
Mortgage Loan to the Trustee or of any intervening assignment; the completeness
of any Mortgage Loan; the performance or enforcement of any Mortgage Loan (other
than if the Trustee shall assume the duties of the Master Servicer pursuant to
Section 7.02); the compliance by the Depositor, the Seller or the Master
Servicer with any warranty or representation made under this Agreement or in any
related document or the accuracy of any such warranty or representation prior to
the Trustee's receipt of notice or other discovery of any non-compliance
therewith or any breach thereof; any investment of monies by or at the direction
of the Master Servicer or any loss resulting therefrom, it being understood that
the Trustee shall remain responsible for any Trust Fund property that it may
hold in its individual capacity; the acts or omissions of any of the Master
Servicer (other than if the Trustee shall assume the duties of the Master
Servicer pursuant to Section 7.02), any subservicer or any Mortgagor; any action
of the Master Servicer (other than if the Trustee shall assume the duties of the
Master Servicer pursuant to Section 7.02), or any subservicer taken in the name
of the Trustee; the failure of the Master Servicer or any subservicer to act or
perform any duties required of it as agent of the Trustee hereunder; or any
action by the Trustee taken at the instruction of the Master Servicer (other
than if the Trustee shall assume the duties of the Master Servicer pursuant to
Section 7.02); provided, however, that the foregoing shall not relieve the
Trustee of its obligation to perform its duties under this Agreement, including,
without limitation, the Trustee's duty to review the Mortgage Files pursuant to
Section 2.01. The Trustee shall have no responsibility for filing any financing
or continuation

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statement in any public office at any time or to otherwise perfect or maintain
the perfection of any security interest or lien granted to it hereunder (unless
the Trustee shall have become the successor Master Servicer).

                  SECTION 8.04.     Trustee May Own Certificates.

                  The Trustee in its individual or any other capacity may become
the owner or pledgee of Certificates with the same rights as it would have if it
were not Trustee and may transact any banking and trust business with the
Seller, the Master Servicer, the Depositor or their Affiliates.

                  SECTION 8.05.     Trustee Fees and Expenses.

                  Prior to disbursing the Available Funds, the Trustee shall
withdraw from the Distribution Account on each Distribution Date and pay to
itself the Trustee Fee. The Seller will pay or reimburse the Trustee upon its
request for all reasonable expenses and disbursements incurred or made by the
Trustee, in accordance with any of the provisions of this Agreement (including
the reasonable compensation and the expenses and disbursements of its counsel
and of all persons not regularly in its employ and any amounts paid by the
Trustee for the recording of Assignments pursuant to Section 2.01) except any
such expense or disbursement as may arise from its negligence or bad faith or
which is the responsibility of Certificateholders or the Trustee hereunder. In
addition, the Seller covenants and agrees to indemnify the Trustee and its
officers, directors, employees and agents from, and hold it harmless against,
any and all losses, liabilities, damages, claims or expenses incurred in
connection with any legal action relating to this Agreement or the Certificates,
other than any loss, liability or expense incurred by reason of willful
misfeasance, bad faith or negligence of the Trustee in the performance of its
duties hereunder or by reason of the Trustee's reckless disregard of obligations
and duties hereunder. This section shall survive termination of this Agreement
or the resignation or removal of any Trustee hereunder. If the Seller defaults
in its obligation to pay or reimburse the Trustee any amount as required under
this Section 8.05, the Trustee shall be entitled to be paid or reimbursed such
amount from the assets of the Trust Fund consisting of any amounts on deposit at
any time in the Collection Account or the Distribution Account. Any
indemnification from the Trust Fund, as contemplated above, shall be payable by
the Trust Fund in the manner set forth in Section 3.05(a)(ix); provided,
however, that the dollar limit set forth in such section shall not be applicable
in connection with any insolvency, bankruptcy, reorganization, receivership or
similar proceeding to which the Master Servicer is subject or in connection with
claims made in or through such proceeding and the court having jurisdiction over
such a proceeding has determined that the "automatic stay" provisions of section
362 of Title 11 of the U.S. Code or similar provisions are applicable to this
Agreement and has not appointed or approved a successor master servicer or has
ordered the Trustee to take action under this Agreement, which will cause the
Trustee to incur expenses, disbursements or advances under this Agreement.

                  SECTION 8.06.     Eligibility Requirements for Trustee.

                  The Trustee hereunder shall at all times be an entity duly
organized and validly existing under the laws of the United States of America or
any state thereof, authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus of at least $50,000,000 and a
minimum long-term debt rating of "Baa3" by Moody's, a long-term debt rating of
at least "A-" and a short-term debt rating of at least "A-1" by S&P, if rated by
S&P, and subject to supervision or examination by federal or state authority. If
such entity publishes reports of condition at least annually, pursuant to law or
to the requirements of the aforesaid supervising or examining authority, then
for the purposes of this Section 8.06, the combined capital and surplus of such
entity shall be deemed to be its combined capital and surplus as set forth in
its most recent report of condition so published. The principal office of the
Trustee (other than the initial Trustee) shall be in a state with respect to
which an Opinion of Counsel has been delivered to such Trustee and the NIMS
Insurer at the time such Trustee is appointed Trustee to the effect that the
Trust Fund will not incur tax under the laws of such state. In case at any time
the Trustee shall cease to be eligible in accordance with the provisions of this
Section 8.06, the Trustee shall resign immediately in the manner and with the
effect specified in Section 8.07.

                  SECTION 8.07.     Resignation or Removal of Trustee.

                  The Trustee may at any time resign and be discharged from the
trusts hereby created by giving written

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notice thereof to the Depositor, the Master Servicer, the Guarantor and the NIMS
Insurer. Upon receiving such notice of resignation, the Guarantor, upon
consultation with the NIMS Insurer, shall promptly appoint a successor Trustee
by written instrument, in duplicate, one copy of which instrument shall be
delivered to the resigning Trustee and one copy to the successor Trustee. If no
successor Trustee shall have been so appointed and having accepted appointment
within 30 days after the giving of such notice of resignation, the resigning
Trustee may petition any court of competent jurisdiction for the appointment of
a successor Trustee.

                  If at any time the Trustee (i) shall cease to be eligible in
accordance with the provisions of Section 8.06 or (ii) fails to comply with the
reporting obligations under Section 4.05(a), to the extent set forth in Section
4.05(c), and shall fail to resign after written request therefor by the
Guarantor or if at any time the Trustee shall be legally unable to act, or shall
be adjudged a bankrupt or insolvent, or a receiver of the Trustee or of its
property shall be appointed, or any public officer shall take charge or control
of the Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then the Guarantor, the NIMS Insurer or the Master
Servicer may remove the Trustee. If the Guarantor, the NIMS Insurer or the
Master Servicer removes the Trustee under the authority of the immediately
preceding sentence, the Guarantor shall promptly appoint a successor Trustee by
written instrument, in duplicate, one copy of which instrument shall be
delivered to the Trustee so removed and one copy to the successor trustee;
provided, however, that in connection with the appointment of a successor
Trustee under this paragraph, the Guarantor shall consult with the NIMS Insurer,
but the decision to appoint a successor Trustee under this paragraph shall
remain in the Guarantor's sole discretion.

                  The Majority Certificateholders may, with the prior written
consent of the Guarantor, at any time remove the Trustee by written instrument
or instruments delivered to the Master Servicer and the Trustee; the Guarantor
shall thereupon use its best efforts to appoint a successor trustee in
accordance with this Section; provided, however, that in connection with the
removal of the Trustee and appointment of a successor Trustee pursuant to this
paragraph, the Guarantor shall consult with the NIMS Insurer, but the decision
to remove the Trustee and appoint a successor Trustee in accordance with this
paragraph shall remain in the Guarantor's sole discretion.

                  Any resignation or removal of the Trustee and appointment of a
successor Trustee pursuant to any of the provisions of this Section 8.07 shall
not become effective until acceptance of appointment by the successor Trustee as
provided in Section 8.08.

                  Notwithstanding anything to the contrary contained herein the
Trustee may not be removed by the Depositor or the Certificateholders without
the prior written consent of the Guarantor, which consent shall not be
unreasonably withheld.

                  If the Trustee resigns or is removed, the Guarantor or the
NIMS Insurer may terminate any Custodian or Paying Agent; provided, however,
that any such termination of any Custodian or Paying Agent shall not become
effective until a successor Trustee (or a successor Custodian or Paying Agent,
as applicable, on its behalf) shall have assumed in writing the duties of the
terminated Custodian or Paying Agent, as applicable.

                  SECTION 8.08.     Successor Trustee.

                  Any successor Trustee appointed as provided in Section 8.07
shall execute, acknowledge and deliver to the Guarantor, the NIMS Insurer, the
Master Servicer and to its predecessor Trustee an instrument accepting such
appointment hereunder, and thereupon the resignation or removal of the
predecessor Trustee shall become effective, and such successor Trustee, without
any further act, deed or conveyance, shall become fully vested with all the
rights, powers, duties and obligations of its predecessor hereunder, with like
effect as if originally named as Trustee. The Master Servicer and the
predecessor Trustee shall execute and deliver such instruments and do such other
things as may reasonably be required for fully and certainly vesting and
confirming in the successor Trustee all such rights, powers, duties and
obligations.

                  No successor Trustee shall accept appointment as provided in
this Section 8.08 unless at the time of such acceptance such successor Trustee
shall be eligible under the provisions of Section 8.06.

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                  Upon acceptance of appointment by a successor Trustee as
provided in this Section 8.08, the successor Trustee shall mail notice of the
appointment of a successor Trustee hereunder to all Holders of Certificates at
their addresses as shown in the Certificate Register.

                  Notwithstanding anything to the contrary contained herein, the
appointment of any successor Trustee pursuant to any provision of this Agreement
will be subject to the prior written consent of the Guarantor, which consent
shall not be unreasonably withheld.

                  SECTION 8.09.     Merger or Consolidation of Trustee.

                  Any entity into which the Trustee may be merged or converted
or with which it may be consolidated, or any entity resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any entity
succeeding to the business of the Trustee, shall be the successor of the Trustee
hereunder, provided such entity shall be eligible under the provisions of
Section 8.06 and 8.08, without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.

                  SECTION 8.10.     Appointment of Co-Trustee or Separate
                                    Trustee.

                  Notwithstanding any other provisions of this Agreement, at any
time, for the purpose of meeting any legal requirements of any jurisdiction in
which any part of the Trust Fund or any Mortgaged Property may at the time be
located, the Depositor and the Trustee acting jointly shall have the power and
shall execute and deliver all instruments to appoint one or more Persons
approved by the Trustee, the NIMS Insurer and the Guarantor to act as co-trustee
or co- trustees, jointly with the Trustee, or separate trustee or separate
trustees, of all or any part of the Trust, and to vest in such Person or
Persons, in such capacity and for the benefit of the Certificateholders, such
title to the Trust, or any part thereof, and, subject to the other provisions of
this Section 8.10, such powers, duties, obligations, rights and trusts as the
Master Servicer and the Trustee may consider necessary or desirable. Any such
co-trustee or separate trustee shall be subject to the written approval of the
Master Servicer, the NIMS Insurer and the Guarantor (so long as no Guarantor
Default exists and is continuing). If the Master Servicer, the NIMS Insurer and
the Guarantor shall not have joined in such appointment within 15 days after the
receipt by it of a request so to do, or in the case a Master Servicer Event of
Termination shall have occurred and be continuing, the Trustee alone shall have
the power to make such appointment. No co-trustee or separate trustee hereunder
shall be required to meet the terms of eligibility as a successor trustee under
Section 8.06, and no notice to Certificateholders of the appointment of any
co-trustee or separate trustee shall be required under Section 8.08. The Master
Servicer shall be responsible for the fees of any co-trustee or separate trustee
appointed hereunder.

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

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

                  (ii) no trustee hereunder shall be held personally liable by
         reason of any act or omission of any other trustee hereunder; and

                  (iii) the Master Servicer and the Trustee, with the consent of
         the Guarantor and the NIMS Insurer, acting jointly may at any time
         accept the resignation of or remove any separate trustee or co-trustee
         except that

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         following the occurrence of a Master Servicer Event of Termination, the
         Trustee acting alone may accept the resignation or remove any separate
         trustee or co-trustee.

                  Any notice, request or other writing given to the Trustee
shall be deemed to have been given to each of the then separate trustees and
co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement and
the conditions of this Article VIII. Each separate trustee and co-trustee, upon
its acceptance of the trusts conferred, shall be vested with the estates or
property specified in its instrument of appointment, either jointly with the
Trustee or separately, as may be provided therein, subject to all the provisions
of this Agreement, specifically including every provision of this Agreement
relating to the conduct of, affecting the liability of, or affording protection
to, the Trustee. Every such instrument shall be filed with the Trustee and a
copy thereof given to the Depositor, the Guarantor, the NIMS Insurer and the
Master Servicer.

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

                  SECTION 8.11.     Limitation of Liability.

                  The Certificates are executed by the Trustee, not in its
individual capacity but solely as Trustee of the Trust, in the exercise of the
powers and authority conferred and vested in it by this Agreement. Each of the
undertakings and agreements made on the part of the Trustee in the Certificates
is made and intended not as a personal undertaking or agreement by the Trustee
but is made and intended as an undertaking or agreement by the Trustee as a
fiduciary of the Trust Fund.

                  SECTION 8.12.     Trustee May Enforce Claims Without
                                    Possession of Certificates.

                  (a) All rights of action and claims under this Agreement or
the Certificates may be prosecuted and enforced by the Trustee without the
possession of any of the Certificates or the production thereof in any
proceeding relating thereto, and such proceeding instituted by the Trustee shall
be brought in its own name or in its capacity as Trustee for the benefit of all
Holders of such Certificates, subject to the provisions of this Agreement. Any
recovery of judgment shall, after provision for the payment of the reasonable
compensation, expenses, disbursement and advances of the Trustee, its agents and
counsel, be for the ratable benefit of the Certificateholders and the Guarantor
in respect of which such judgment has been recovered.

                  (b) The Trustee shall afford the Seller, the Depositor, the
Master Servicer, the Guarantor, the NIMS Insurer and each Certificateholder upon
reasonable notice during normal business hours, access to all records maintained
by the Trustee in respect of its duties hereunder and access to officers of the
Trustee responsible for performing such duties. Upon request, the Trustee shall
furnish the Depositor, the Master Servicer, the NIMS Insurer, the Guarantor and
any requesting Certificateholder with its most recent financial statements. The
Trustee shall cooperate fully with the Seller, the Master Servicer, the
Depositor, the Guarantor, the NIMS Insurer and such Certificateholder and shall
make available to the Seller, the Master Servicer, the Depositor, the Guarantor,
the NIMS Insurer and such Certificateholder for review and copying such books,
documents or records as may be requested with respect to the Trustee's duties
hereunder. The Seller, the Depositor, the Master Servicer, the Guarantor and the
Certificateholders shall not have any responsibility or liability for any action
or failure to act by the Trustee and are not obligated to supervise the
performance of the Trustee under this Agreement or otherwise.

                  SECTION 8.13.     Suits for Enforcement.

                  In case a Master Servicer Event of Termination or other
default by the Master Servicer or the Depositor hereunder shall occur and be
continuing, the Trustee, shall, at the direction of the Guarantor, or may, with
the consent of the Guarantor, proceed to protect and enforce its rights and the
rights of the Certificateholders, the Guarantor or the

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NIMS Insurer under this Agreement by a suit, action or proceeding in equity or
at law or otherwise, whether for the specific performance of any covenant or
agreement contained in this Agreement or in aid of the execution of any power
granted in this Agreement or for the enforcement of any other legal, equitable
or other remedy, as the Trustee, being advised by counsel, and subject to the
foregoing, shall deem most effectual to protect and enforce any of the rights of
the Trustee, the Guarantor, the NIMS Insurer and the Certificateholders.

                  SECTION 8.14.     Waiver of Bond Requirement.

                  The Trustee shall be relieved of, and each Certificateholder
hereby waives, any requirement of any jurisdiction in which the Trust, or any
part thereof, may be located that the Trustee post a bond or other surety with
any court, agency or body whatsoever.

                  SECTION 8.15.     Waiver of Inventory, Accounting and
                                    Appraisal Requirement.

                  The Trustee shall be relieved of, and each Certificateholder
hereby waives, any requirement of any jurisdiction in which the Trust Fund, or
any part thereof, may be located that the Trustee file any inventory, accounting
or appraisal of the Trust Fund with any court, agency or body at any time or in
any manner whatsoever.

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                                   ARTICLE IX

                              REMIC ADMINISTRATION

                  SECTION 9.01.     REMIC Administration.

                  (a) A REMIC election shall be made by the Trustee on Form 1066
or other appropriate federal or state tax or information return with respect to
each Trust REMIC for the taxable year ending on the last day of the calendar
year in which the Certificates are issued. The Regular Interests and Residual
Interest in each Trust REMIC shall be as designated in the Preliminary
Statement.

                  (b) The Closing Date is hereby designated as the "Startup Day"
of each Trust REMIC within the meaning of section 860G(a)(9) of the Code.

                  (c) The Master Servicer shall pay any and all tax related
expenses (not including taxes) of each Trust REMIC, including but not limited to
any professional fees or expenses related to audits or any administrative or
judicial proceedings with respect to such Trust REMIC that involve the Internal
Revenue Service or state tax authorities, but only to the extent that (i) such
expenses are ordinary or routine expenses, including expenses of a routine audit
but not expenses of litigation (except as described in (ii)); or (ii) such
expenses or liabilities (including taxes and penalties) are attributable to the
negligence or willful misconduct of the Master Servicer in fulfilling its duties
hereunder. The Master Servicer shall be entitled to reimbursement of expenses to
the extent provided in clause (i) above from the Collection Account.

                  (d) The Trustee shall prepare, and the Trustee shall sign and
file, all of each Trust REMIC's federal and state tax and information returns as
such Trust REMIC's direct representative. The expenses of preparing and filing
such returns shall be borne by the Trustee.

                  (e) The Holder of the Class R Certificate at any time holding
the largest Percentage Interest thereof shall be the "tax matters person" as
defined in the REMIC Provisions (the "Tax Matters Person") with respect to each
Trust REMIC and shall act as Tax Matters Person for such REMICs. The Trustee, as
agent for the applicable Tax Matters Person, shall perform on behalf of each
Trust REMIC all reporting and other tax compliance duties that are the
responsibility of such REMIC under the Code, the REMIC Provisions, or other
compliance guidance issued by the Internal Revenue Service or any state or local
taxing authority. Among its other duties, if required by the Code, the REMIC
Provisions, or other such guidance, the Trustee, as agent for the applicable Tax
Matters Person, shall provide (at the Trustee's own expense without right of
reimbursement, in consideration of the compensation paid to the Trustee
hereunder, including any additional compensation accepted by the Trustee
pursuant Section 5.02(b)(vi) under the circumstances set forth in such subclause
(vi)) (i) to the Treasury or other governmental authority such information as is
necessary for the application of any tax relating to the transfer of a related
Class R Certificate to any disqualified person or organization and (ii) to the
Certificateholders such information or reports as are required by the Code or
REMIC Provisions. The Trustee shall represent each Trust REMIC in any
administrative or judicial proceedings relating to an examination or audit by
any governmental taxing authority, request an administrative adjustment as to
any taxable year of any Trust REMIC, enter into settlement agreements with any
government taxing agency, extend any statute of limitations relating to any item
of any Trust REMIC and otherwise act on behalf of any Trust REMIC in relation to
any tax matter involving the Trust, provided that to the extent that such
representation affects the Guarantor's obligations hereunder, the Trustee agrees
to consult with the Guarantor and accommodate the Guarantor's reasonable
requests.

                  (f) The Trustee, the Master Servicer and the Holders of
Certificates shall take any action or cause each Trust REMIC to take any action
necessary to create or maintain the status of such Trust REMIC as a REMIC under
the REMIC Provisions and shall assist each other as necessary to create or
maintain such status. Neither the Trustee, the Master Servicer nor the Holder of
any Class R Certificate shall take any action, cause any Trust REMIC to take any
action or fail to take (or fail to cause to be taken) any action that, under the
REMIC Provisions, if taken or not taken, as the case may be, could (i) endanger
the status of such Trust REMIC as a REMIC or (ii) result in the imposition of a
tax upon such Trust REMIC (including but not limited to the tax on prohibited
transactions as defined in Code Section

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860F(a)(2) and the tax on prohibited contributions set forth on Section 860G(d)
of the Code) (either such event, an "Adverse REMIC Event") unless the Trustee,
the Guarantor, the NIMS Insurer and the Master Servicer have received an Opinion
of Counsel (at the expense of the party seeking to take such action) to the
effect that the contemplated action will not endanger such status or result in
the imposition of such a tax. In addition, prior to taking any action with
respect to a Trust REMIC or the assets therein, or causing a Trust REMIC to take
any action, which is not expressly permitted under the terms of this Agreement,
any Holder of a related Class R Certificate will consult with the Trustee, the
Guarantor, the NIMS Insurer and the Master Servicer, or their respective
designees, in writing, with respect to whether such action could cause an
Adverse REMIC Event to occur with respect to such Trust REMIC, and no such
Person shall take any such action or cause a Trust REMIC to take any such action
as to which the Trustee, the Guarantor, the Master Servicer or the NIMS Insurer
has advised it in writing that an Adverse REMIC Event could occur.

                  (g) Each Holder of a Class R Certificate shall pay when due
any and all taxes imposed on the related Trust REMICs by federal or state
governmental authorities. To the extent that such REMIC taxes are not paid by a
Class R Certificateholder, the Trustee shall pay any remaining REMIC taxes out
of current or future amounts otherwise distributable to the Holder of the Class
R Certificate relating to the taxed Trust REMIC or, if no such amounts are
available, out of other amounts held in the Collection Account, and shall reduce
amounts otherwise payable to Holders of regular interests in the taxed Trust
REMIC, as the case may be. Subject to the foregoing, in the event that a Trust
REMIC incurs a state or local tax, including franchise taxes, by virtue of the
location of the Master Servicer (or any subservicer) or the Trustee, the Master
Servicer (if such tax was incurred by virtue of the location of the Master
Servicer (or any subservicer)) and the Trustee (if such tax was incurred by
virtue of the location of the Trustee) agree to pay on behalf of such Trust
REMIC when due, any and all state and local taxes imposed, in the event that the
Holder of the related Class R Certificate fails to pay such taxes, if any, when
imposed.

                  (h) The Trustee, as agent for the Tax Matters Person, shall,
for federal income tax purposes, maintain books and records with respect to each
Trust REMIC on a calendar year and on an accrual basis.

                  (i) No additional contributions of assets shall be made to a
Trust REMIC, except as expressly provided in this Agreement with respect to
eligible substitute mortgage loans and Subsequent Mortgage Loans.

                  (j) Neither the Trustee nor the Master Servicer shall enter
into any arrangement by which a Trust REMIC will receive a fee or other
compensation for services.

                  (k) On or before April 30th of each calendar year beginning in
2003, the Master Servicer shall deliver to the Trustee, the NIMS Insurer and the
Guarantor an Officers' Certificate stating the Master Servicer's compliance with
the provisions of this Section 9.01, which in the Master Servicer's discretion
may be included in the Annual Statement of Compliance provided by the Master
Servicer pursuant to Section 3.19.

                  (l) The Trustee will apply for an Employee Identification
Number from the Internal Revenue Service via a Form SS-4 or other acceptable
method for all tax entities and shall complete the Form 8811.

                  SECTION 9.02.     Prohibited Transactions and Activities.

                  Neither the Depositor, the Master Servicer nor the Trustee
shall sell, dispose of, or substitute for any of the Mortgage Loans, except in a
disposition pursuant to (i) the foreclosure of a Mortgage Loan, (ii) the
bankruptcy of the Trust Fund, (iii) the termination of a Trust REMIC pursuant to
Article X of this Agreement, (iv) a substitution pursuant to Article II of this
Agreement or (v) a repurchase of Mortgage Loans pursuant to Article II of this
Agreement, nor acquire any assets for a Trust REMIC, nor sell or dispose of any
investments in the Distribution Account for gain, nor accept any contributions
to a Trust REMIC after the Closing Date, unless it, the Guarantor and the NIMS
Insurer have received an Opinion of Counsel (at the expense of the party causing
such sale, disposition, or substitution) that such disposition, acquisition,
substitution, or acceptance will not (a) affect adversely the status of such
Trust REMIC as a REMIC, (b) affect the distribution of interest or principal on
the Certificates, (c) result in the encumbrance of the assets transferred or
assigned to the Trust Fund (except pursuant to the provisions of this Agreement)
or (d) cause such Trust REMIC to be subject to a tax, including a tax on
prohibited transactions or prohibited contributions pursuant to the

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REMIC Provisions.

                  SECTION 9.03.     Indemnification with Respect to Certain
                                    Taxes and Loss of REMIC Status.

                  (a) In the event that any Trust REMIC fails to qualify as a
REMIC, loses its status as a REMIC, or incurs federal, state or local taxes as a
result of a prohibited transaction or prohibited contribution under the REMIC
Provisions due to the negligent performance by the Master Servicer of its duties
and obligations set forth herein, the Master Servicer shall indemnify the
Trustee, the Guarantor, the NIMS Insurer and the Trust Fund against any and all
losses, claims, damages, liabilities or expenses ("Losses") resulting from such
negligence; provided, however, that the Master Servicer shall not be liable for
any such Losses attributable to the action or inaction of the Trustee, the
Depositor or the Holder of such Class R Certificate, as applicable, nor for any
such Losses resulting from misinformation provided by the Holder of such Class R
Certificate on which the Master Servicer has relied. The foregoing shall not be
deemed to limit or restrict the rights and remedies of the Holder of such Class
R Certificate now or hereafter existing at law or in equity. Notwithstanding the
foregoing, however, in no event shall the Master Servicer have any liability (1)
for any action or omission that is taken in accordance with and in compliance
with the express terms of, or which is expressly permitted by the terms of, this
Agreement, (2) for any Losses other than arising out of a negligent performance
by the Master Servicer of its duties and obligations set forth herein, and (3)
for any special or consequential damages to Certificateholders (in addition to
payment of principal and interest on the Certificates).

                  (b) In the event that any Trust REMIC fails to qualify as a
REMIC, loses its status as a REMIC, or incurs federal, state or local taxes as a
result of a prohibited transaction or prohibited contribution under the REMIC
Provisions due to the negligent performance by the Trustee of its duties and
obligations set forth herein, the Trustee shall indemnify the Trust Fund, the
Guarantor and the NIMS Insurer against any and all Losses resulting from such
negligence; provided, however, that the Trustee shall not be liable for any such
Losses attributable to the action or inaction of the Master Servicer, the
Depositor or the Holder of such Class R Certificate, as applicable, nor for any
such Losses resulting from misinformation provided by the Holder of such Class R
Certificate on which the Trustee has relied. The foregoing shall not be deemed
to limit or restrict the rights and remedies of the Holder of such Class R
Certificate now or hereafter existing at law or in equity. Notwithstanding the
foregoing, however, in no event shall the Trustee have any liability (1) for any
action or omission that is taken in accordance with and in compliance with the
express terms of, or which is expressly permitted by the terms of, this
Agreement, (2) for any Losses other than arising out of a negligent performance
by the Trustee of its duties and obligations set forth herein, and (3) for any
special or consequential damages to Certificateholders (in addition to payment
of principal and interest on the Certificates).

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                                    ARTICLE X

                                   TERMINATION

                  SECTION 10.01.        Termination.

                  (a) The respective obligations and responsibilities of the
Seller, the Guarantor, the Master Servicer, the Depositor and the Trustee
created hereby (other than the obligation of the Trustee to make certain
payments to Certificateholders after the final Distribution Date and the
obligation of the Master Servicer to send certain notices as hereinafter set
forth) shall terminate upon notice to the Trustee upon the later of (A) the
payment in full of all amounts owing to the Guarantor unless the Guarantor shall
otherwise consent and (B) the earliest of (i) the final payment or other
liquidation of the last Mortgage Loan in the Trust, (ii) the optional purchase
by the Master Servicer or the NIMS Insurer of the Mortgage Loans as described
below and (iii) the Distribution Date in July 2032. Notwithstanding the
foregoing, in no event shall the trust created hereby continue beyond the
expiration of 21 years from the death of the last survivor of the descendants of
Joseph P. Kennedy, the late ambassador of the United States to the Court of St.
James's, living on the date hereof.

                  The Master Servicer (or if the Master Servicer fails to
exercise such option, the NIMS Insurer) may, at its option, terminate REMIC 1 on
or after the Optional Termination Date by purchasing, on or after the Optional
Termination Date, all of the outstanding Mortgage Loans and REO Properties at a
price equal to the Termination Price.

                  With respect to REMIC 1, the "Termination Price" means the
fair market value (as determined by the Master Servicer, the Guarantor, the NIMS
Insurer, the majority Holder of the Class CE Certificates and, to the extent
that a Class of Mezzanine Certificates will not receive all amounts owed to it
as a result of the termination, in consultation with the Trustee, as of the
close of business on the third Business Day next preceding the date upon which
notice of any such Termination is furnished to the related Certificateholders
pursuant to Section 10.01(b)) of the outstanding Principal Balance of the
Mortgage Loans and REO Properties in REMIC 1 (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period), plus accrued and unpaid interest on the Principal
Balance of such Mortgage Loans and REO Properties (after giving effect to
scheduled payments of principal due during the related Due Period, to the extent
received or advanced, and unscheduled collections of principal received during
the related Prepayment Period) at the weighted average of the Mortgage Rates
thereon as of the end of the Due Period preceding the final Distribution Date
plus Unpaid Interest Shortfall Amounts, any related Net WAC Rate Carryover
Amount, unreimbursed Servicing Advances and Advances and any unpaid Servicing
Fees allocable to such Mortgage Loans and REO Properties; provided, however,
such option may only be exercised if (i) the Termination Price is sufficient to
pay any amount owed the Guarantor under this Agreement in respect of the
Guaranteed Certificates and (ii) the fair market value of the Mortgage Loans and
REO Properties described above is at least equal to the Principal Balance of the
Mortgage Loans (after giving effect to scheduled payments of principal due
during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period) and the appraised value of the REO Properties.

                  In connection with any such purchase pursuant to the preceding
paragraph, the Master Servicer or the NIMS Insurer, as applicable (in the
capacity as purchaser of assets from REMIC 1, the "Terminator"), shall deposit
in the Distribution Account all amounts then on deposit in the Collection
Account (less amounts permitted to be withdrawn by the Master Servicer pursuant
to Section 3.05(b)), which deposit shall be deemed to have occurred immediately
preceding such purchase.

                  Any such purchase shall be accomplished by deposit into the
Distribution Account on the Business Day before such Distribution Date of the
Termination Price and the delivery of an opinion of counsel in form and
substance acceptable to the Guarantor that such termination is a "Qualified
Liquidation", under Section 860F of the Code, of REMIC 1 and of each other Trust
REMIC. The Terminator shall indemnify the Guarantor for any claims under this
Agreement due to the Terminator's exercise of such option. In addition, the
Terminator shall reimburse the Trustee for the Trustee's out-of-pocket costs and
expenses incurred by the Trustee in connection with the Terminator's exercise

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of such option.

                  (b) Notice of the termination of the Trust REMICs, specifying
the Distribution Date (which shall be a date that would otherwise be a
Distribution Date) upon which the terminated Certificateholders may surrender
their Certificates to the Trustee for payment of the final distribution and
cancellation, shall be given promptly by the Trustee upon the Trustee receiving
notice of such date from the Terminator, by letter to the Guarantor, the NIMS
Insurer and the Certificateholders mailed not earlier than the 15th day and not
later than the 25th day of the month next preceding the month of such final
distribution specifying (1) the Distribution Date upon which final distribution
of the related Certificates will be made upon presentation and surrender of such
Certificates at the office or agency of the Trustee therein designated, (2) the
amount of any such final distribution and (3) that the Record Date otherwise
applicable to such Distribution Date is not applicable, distributions being made
only upon presentation and surrender of the applicable Certificates at the
office or agency of the Trustee therein specified.

                  (c) Upon presentation and surrender of the terminated
Certificates in connection with any termination under this Section 10.01, the
Trustee shall cause to be distributed to the Holders of such Certificates on the
Distribution Date for the final distribution thereon, in proportion to the
Percentage Interests of their respective Class and to the extent that funds are
available for such purpose, an amount equal to the amount required to be
distributed to such Holders in accordance with the provisions of Section 4.01
for such Distribution Date. With respect to the terminated Certificates, on the
final Distribution Date therefor, the Trustee will withdraw from the
Distribution Account and remit to the Guarantor the lesser of (x) the amount
available for distribution on such final Distribution Date, net of any portion
thereof necessary to pay Holders of the Guaranteed Certificates pursuant to
Section 4.01 and any amounts owing to the Trustee in respect of the Trustee Fee
(or any other amount payable or reimbursable to the Trustee pursuant to this
Agreement, including, but not limited to Section 7.02 and Section 8.05) and due
and unpaid Advances, Servicing Advances and Servicing Fees, (y) the unpaid
amounts due and owing to the Guarantor relating to the Guaranteed Certificates
pursuant to Sections 4.01 and 4.05. By acceptance of the Class R Certificates,
the Holders of the Class R Certificates agree, in connection with any
termination hereunder, to assign and transfer any amounts in excess of the par
value of the Mortgage Loans, and to the extent received in respect of such
termination, to pay any such amounts to the Holders of the Class CE
Certificates.

                  (d) In the event that all Certificateholders of terminated
Certificates shall not surrender their terminated Certificates for final payment
and cancellation on or before the final Distribution Date therefor, the Trustee
shall promptly following such date cause all funds in the Distribution Account
not distributed in final distribution to terminated Certificateholders to be
withdrawn therefrom and credited to the remaining terminated Certificateholders
by depositing such funds in a separate escrow account for the benefit of such
Certificateholders, and the Trustee shall give a second written notice to the
remaining such Certificateholders, to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within
nine months after the second notice all the terminated Certificates shall not
have been surrendered for cancellation, the Class R Certificateholders shall be
entitled to all unclaimed funds and other assets which remain subject hereto,
and the Trustee upon transfer of such funds shall be discharged of any
responsibility for such funds, and the Certificateholders shall look to the
Class R Certificateholders for payment.

                  SECTION 10.02.        Additional Termination Requirements.

                  (a) In the event that the Terminator exercises its purchase
option as provided in Section 10.01, REMIC 1 and each other Trust REMIC (such
REMICs as are terminated in connection with a termination by the Terminator
being referred to in this Section 10.02 as the "Terminated REMICs"), shall be
terminated in accordance with the following additional requirements, unless the
Trustee and the Guarantor shall have been furnished with an Opinion of Counsel
to the effect that the failure to comply with the requirements of this Section
will not (i) result in the imposition of taxes on the Trust Fund (or any Trust
REMIC), including a tax on "prohibited transactions" of the Trust Fund (or any
Trust REMIC) as defined in Section 860F of the Code or (ii) cause any Trust
REMIC to fail to qualify as a REMIC at any time that any Certificates are
outstanding:

                  (i) Within 90 days prior to the final Distribution Date, the
         Terminator shall prepare and the

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         Trustee shall adopt and sign a plan of complete liquidation of each
         Terminated REMIC meeting the requirements of a "Qualified Liquidation"
         under Section 860F of the Code and any regulations thereunder;

                  (ii) At or after the time of adoption of such a plan of
         complete liquidation and at or prior to the final Distribution Date,
         the Trustee shall sell all of the assets of the Terminated REMICs to
         the Terminator for cash pursuant to the terms of the plan of complete
         liquidation; and

                  (iii) At the time of the making of the final payment on the
         Certificates, the Trustee shall distribute or credit, or cause to be
         distributed or credited (A) to the Holders of the Class A Certificates,
         the Mezzanine Certificates, the Class CE Certificates and the Class P
         Certificates, the Certificate Principal Balance thereof, plus (in the
         case of the Class A Certificates and the Mezzanine Certificates) one
         month's interest thereon at the Pass-Through Rate therefor, any
         previously accrued but undistributed interest at the Pass-Through Rate
         and any Net WAC Rate Carryover Amount, (B) to the Holders of the Class
         S Certificates and the Class CE Certificates one month's interest on
         the Notional Amount thereof at the Pass-Through Rate therefor, any
         previously accrued but undistributed interest at the Pass-Through Rate
         and any Net WAC Rate Carryover Amount and (C) to the Guarantor, all
         amounts owing to the Guarantor under this Agreement, and the Terminated
         REMICs shall terminate at such time.

                  (b) By their acceptance of Certificates, the Holders thereof
hereby agree to appoint the Trustee as their attorney in fact to: (i) adopt such
a plan of complete liquidation (and the Certificateholders hereby appoint the
Trustee as their attorney in fact to sign such plan) as appropriate or upon the
written request of the Guarantor and (ii) to take such other action in
connection therewith as may be reasonably required to carry out such plan of
complete liquidation all in accordance with the terms hereof.

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                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

                  SECTION 11.01.        Amendment.

                  This Agreement may be amended from time to time by the Seller,
the Guarantor, the Depositor, the Master Servicer and the Trustee, with the
consent of the NIMS Insurer (which consent shall not be unreasonably withheld);
(i) to cure any ambiguity, (ii) to correct or supplement any provisions herein
which may be defective or inconsistent with any other provisions herein, (iii)
to amend the provisions of Section 4.14 or (iv) to make any other provisions
with respect to matters or questions arising under this Agreement, as the case
may be, which shall not be inconsistent with the provisions of this Agreement;
provided, however, that any such action listed in clauses (i), (ii) and (iv)
above shall not adversely affect in any respect the interests of any
Certificateholder, as evidenced by (i) an Opinion of Counsel delivered to the
Master Servicer and the Trustee or (ii) confirmation from the Rating Agencies
that such amendment will not result in the reduction or withdrawal of the rating
of any outstanding Class of Certificates (without regard to the Guarantee of the
Guarantor). Neither an Opinion of Counsel nor confirmation from the Rating
Agencies will be required in connection with an amendment to the provisions of
Section 4.14. If confirmation from the Rating Agencies is obtained with respect
to any amendment, such amendment shall be deemed not to adversely affect in any
material respect the interests of any Certificateholder. No amendment shall be
deemed to adversely affect in any material respect the interests of any
Certificateholder who shall have consented thereto, and no Opinion of Counsel
shall be required to address the effect of any such amendment on any such
consenting Certificateholder.

                  In addition, (i) this Agreement may be amended from time to
time by the Seller, the Depositor, the Master Servicer and the Trustee, with the
consent of the Guarantor and the NIMS Insurer (which consent shall not be
unreasonably withheld), and (ii) the Master Servicer, the Guarantor and the NIMS
Insurer may from time to time consent to the amendment of this Agreement, in
each case with the consent of the Majority Certificateholders for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Agreement or of modifying in any manner the rights of the
Holders of Certificates; provided, however, that no such amendment or waiver
shall (x) reduce in any manner the amount of, or delay the timing of, payments
on the Certificates or distributions or payments under this Agreement which are
required to be made on any Certificate without the consent of the Holder of such
Certificate, (y) adversely affect in any material respect the interests of the
Holders of any Class of Certificates in a manner other than as described in
clause (x) above ( as evidenced by (i) an Opinion of Counsel delivered to the
Master Servicer and the Trustee or (ii) confirmation from the Rating Agencies
that such amendment will not result in the reduction or withdrawal of the rating
of any outstanding Class of Certificates (without regard to the Guarantee of the
Guarantor), without the consent of the Holders of Certificates of such Class
evidencing at least a 66% Percentage Interest in such Class, or (z) reduce the
percentage of Voting Rights required by clause (y) above without the consent of
the Holders of all Certificates of such Class then outstanding.

                  Notwithstanding any provision of this Agreement to the
contrary, the Trustee shall not consent to any amendment to this Agreement
unless it shall have first received an Opinion of Counsel, delivered by (and at
the expense of) the Person seeking such Amendment, and satisfactory to the
Guarantor and the NIMS Insurer, to the effect that such amendment will not
result in the imposition of a tax on any Trust REMIC pursuant to the REMIC
Provisions or cause any Trust REMIC to fail to qualify as a REMIC at any time
that any Certificates are outstanding and that the amendment is being made in
accordance with the terms hereof.

                  Promptly after the execution of any such amendment the Trustee
shall furnish, at the expense of the Person that requested the amendment if such
Person is the Seller or the Master Servicer (but in no event at the expense of
the Trustee), otherwise at the expense of the Trust, a copy of such amendment
and the Opinion of Counsel referred to in the immediately preceding paragraph to
the Master Servicer, the NIMS Insurer and the Guarantor.

                  It shall not be necessary for the consent of
Certificateholders under this Section 11.01 to approve the particular form of
any proposed amendment; instead it shall be sufficient if such consent shall
approve the substance thereof. The manner of obtaining such consents and of
evidencing the authorization of the execution thereof by

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Certificateholders shall be subject to such reasonable regulations as the
Trustee may prescribe.

                  The Trustee may, but shall not be obligated to, enter into any
amendment pursuant to this Section 11.01 that affects its rights, duties and
immunities under this Agreement or otherwise.

                  SECTION 11.02.        Recordation of Agreement; Counterparts.

                  To the extent permitted by applicable law, this Agreement is
subject to recordation in all appropriate public offices for real property
records in all the counties or other comparable jurisdictions in which any or
all of the properties subject to the Mortgages are situated, and in any other
appropriate public recording office or elsewhere, such recordation to be
effected by the Master Servicer at the expense of the Trust, but only upon
direction of Certificateholders or the Guarantor accompanied by an Opinion of
Counsel to the effect that such recordation materially and beneficially affects
the interests of the Certificateholders.

                  For the purpose of facilitating the recordation of this
Agreement as herein provided and for other purposes, this Agreement may be
executed simultaneously in any number of counterparts, each of which
counterparts shall be deemed to be an original, and such counterparts shall
together constitute but one and the same instrument.

                  SECTION 11.03.        Limitation on Rights of
                                        Certificateholders.

                  The death or incapacity of any Certificateholder shall not (i)
operate to terminate this Agreement or the Trust, (ii) entitle such
Certificateholder's legal representatives or heirs to claim an accounting or to
take any action or proceeding in any court for a partition or winding up of the
Trust, or (iii) otherwise affect the rights, obligations and liabilities of the
parties hereto or any of them.

                  Except as expressly provided for herein, no Certificateholder
shall have any right to vote or in any manner otherwise control the operation
and management of the Trust, or the obligations of the parties hereto, nor shall
anything herein set forth or contained in the terms of the Certificates be
construed so as to constitute the Certificateholders from time to time as
partners or members of an association; nor shall any Certificateholder be under
any liability to any third person by reason of any action taken by the parties
to this Agreement pursuant to any provision hereof.

                  No Certificateholder shall have any right by virtue of any
provision of this Agreement to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Agreement, unless such
Holder previously shall have given to the Trustee a written notice of default
and of the continuance thereof, as hereinbefore provided, and unless also the
Holders of Certificates entitled to at least 25% of the Voting Rights shall have
made written request upon the Trustee to institute such action, suit or
proceeding in its own name as Trustee hereunder and shall have offered to the
Trustee such reasonable indemnity as it may require against the costs, expenses
and liabilities to be incurred therein or thereby, and the Trustee for 15 days
after its receipt of such notice, request and offer of indemnity, shall have
neglected or refused to institute any such action, suit or proceeding. It is
understood and intended, and expressly covenanted by each Certificateholder with
every other Certificateholder and the Trustee, that no one or more Holders of
Certificates shall have any right in any manner whatever by virtue of any
provision of this Agreement to affect, disturb or prejudice the rights of the
Holders of any other of such Certificates, or to obtain or seek to obtain
priority over or preference to any other such Holder, which priority or
preference is not otherwise provided for herein, or to enforce any right under
this Agreement, except in the manner herein provided and for the equal, ratable
and common benefit of all Certificateholders. For the protection and enforcement
of the provisions of this Section 11.03 each and every Certificateholder and the
Trustee shall be entitled to such relief as can be given either at law or in
equity.

                  SECTION 11.04.        Governing Law; Jurisdiction.

                  This Agreement shall be construed in accordance with the laws
of the State of New York, and the obligations, rights and remedies of the
parties hereunder shall be determined in accordance with such laws. With respect
to any claim arising out of this Agreement, each party irrevocably submits to
the exclusive jurisdiction of the courts of

                                       124

<PAGE>

the State of New York and the United States District Court located in the
Borough of Manhattan in The City of New York, and each party irrevocably waives
any objection which it may have at any time to the laying of venue of any suit,
action or proceeding arising out of or relating hereto brought in any such
courts, irrevocably waives any claim that any such suit, action or proceeding
brought in any such court has been brought in any inconvenient forum and further
irrevocably waives the right to object, with respect to such claim, suit, action
or proceeding brought in any such court, that such court does not have
jurisdiction over such party, provided that service of process has been made by
any lawful means.

                  SECTION 11.05.        Notices.

                  All directions, demands, requests, authorizations and notices
hereunder shall be in writing and shall be deemed to have been duly given if
personally delivered at or mailed by first class mail, postage prepaid, by
facsimile or by express delivery service, to (a) in the case of the Seller
and/or Master Servicer, Ameriquest Mortgage Company, 1100 Town & Country Road,
Suite 1100, Orange, California 92868, Attention: General Counsel, or such other
address or telecopy number as may hereafter be furnished to the Depositor, the
NIMS Insurer and the Trustee in writing by the Seller, (b) in the case of the
Trustee, Deutsche Bank National Trust Company, 1761 East St. Andrew Place, Santa
Ana, CA 92705-4934, Attention: Trust Administration - AQ020D, or such other
address or telecopy number as may hereafter be furnished to the Depositor, the
NIMS Insurer, the Seller and the Master Servicer in writing by the Trustee, (c)
in the case of the Depositor, Ameriquest Mortgage Securities Inc., 1100 Town &
Country Road, Suite 1100, Orange, California 92868, Attention: General Counsel,
or such other address or telecopy number as may be furnished to the Seller, the
Master Servicer, the NIMS Insurer and the Trustee in writing by the Depositor,
(d) in the case of the NIMS Insurer, such address furnished to the Depositor,
the Master Servicer, the Trustee and the Guarantor in writing by the NIMS
Insurer and (e) in the case of the Guarantor, 1551 Park Run Drive, McLean,
Virginia 22102, Attention: Director, Mortgage Security Operations--Funding and
Investments. Any notice required or permitted to be mailed to a
Certificateholder shall be given by first class mail, postage prepaid, at the
address of such Holder as shown in the Certificate Register. Notice of any
Master Servicer Default shall be given by telecopy and by certified mail. Any
notice so mailed within the time prescribed in this Agreement shall be
conclusively presumed to have duly been given when mailed, whether or not the
Certificateholder receives such notice. A copy of any notice required to be
telecopied hereunder shall also be mailed to the appropriate party in the manner
set forth above.

                  SECTION 11.06.        Severability of Provisions.

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

                  SECTION 11.07.        Article and Section References.

                  All article and section references used in this Agreement,
unless otherwise provided, are to articles and sections in this Agreement.

                  SECTION 11.08.        Reserved.

                  SECTION 11.09.        Further Assurances.

                  Notwithstanding any other provision of this Agreement, neither
the Regular Certificateholders nor the Trustee shall have any obligation to
consent to any amendment or modification of this Agreement unless they have been
provided reasonable security or indemnity against their out-of-pocket expenses
(including reasonable attorneys' fees) to be incurred in connection therewith.

                  SECTION 11.10.        Benefits of Agreement.

                                       125

<PAGE>

                  Except to the extent set forth in Section 11.12 hereof,
nothing in this Agreement or in the Certificates, expressed or implied, shall
give to any Person, other than the Certificateholders, the Guarantor and the
parties hereto and their successors hereunder, any benefit or any legal or
equitable right, remedy or claim under this Agreement.

                  SECTION 11.11.        Acts of Certificateholders.

                  (a) Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Agreement to be given or taken
by the Certificateholders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Certificateholders in
person or by agent duly appointed in writing, and such action shall become
effective when such instrument or instruments are delivered to the Trustee, the
Seller and the Master Servicer. Such instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the
"act" of the Certificateholders signing such instrument or instruments. Proof of
execution of any such instrument or of a writing appointing any such agent shall
be sufficient for any purpose of this Agreement and conclusive in favor of the
Trustee and the Trust, if made in the manner provided in this Section 11.11.

                  (b) The fact and date of the execution by any Person of any
such instrument or writing may be proved by the affidavit of a witness of such
execution or by the certificate of a notary public or other officer authorized
by law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Whenever
such execution is by a signer acting in a capacity other than his or her
individual capacity, such certificate or affidavit shall also constitute
sufficient proof of his authority.

                  (c) Any request, demand, authorization, direction, notice,
consent, waiver or other action by any Certificateholder shall bind every future
Holder of such Certificate and the Holder of every Certificate issued upon the
registration of transfer thereof or in exchange therefor or in lieu thereof, in
respect of anything done, omitted or suffered to be done by the Trustee in
reliance thereon, whether or not notation of such action is made upon such
Certificate.

                  SECTION 11.12.        Third Party Rights.

                  The NIMS Insurer shall be deemed a third-party beneficiary of
this Agreement to the same extent as if it were a party hereto, and shall have
the right to enforce the provisions of this Agreement.

                                       126

<PAGE>

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

                                         AMERIQUEST MORTGAGE SECURITIES INC.,
                                         as Depositor

                                         By: /s/ John P. Grazer
                                             --------------------------------
                                         Name:   John P. Grazer
                                         Title:  CFO

                                         AMERIQUEST MORTGAGE COMPANY,
                                         as Seller and Master Servicer

                                         By: /s/ John P. Grazer
                                             --------------------------------
                                         Name:   John P. Grazer
                                         Title:  CFO/EVP

                                         DEUTSCHE BANK NATIONAL TRUST COMPANY,
                                         as Trustee

                                         By: /s/ Ronaldo Reyes
                                             --------------------------------
                                         Name:   Ronaldo Reyes
                                         Title:  Associate

                                         By: /s/ James F. Noriega
                                             --------------------------------
                                         Name:   James F. Noriega
                                         Title:  Associate

                                         FEDERAL HOME LOAN MORTGAGE CORPORATION,
                                         as Guarantor

                                         By: /s/ Richard L. Cooperstein
                                             --------------------------------
                                         Name:   Richard L. Cooperstein
                                         Title:  VP- Structured Transactions

<PAGE>

STATE OF                   )
                           ) ss.:
COUNTY OF                  )

         On the __ day of December 2002 before me, a notary public in and for
said State, personally appeared ______________ known to me to be a
______________ of Ameriquest Mortgage Securities Inc., a Delaware corporation
that executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

                                  Notary Public

<PAGE>

STATE OF                   )
                           ) ss.:
COUNTY OF                  )

         On the __ day of December 2002 before me, a notary public in and for
said State, personally appeared ______________ known to me to be a
_______________________ of Ameriquest Mortgage Company, a ____________
corporation that executed the within instrument, and also known to me to be the
person who executed it on behalf of said corporation, and acknowledged to me
that such corporation executed the within instrument.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

                                  Notary Public

<PAGE>

STATE OF                   )
                           ) ss.:
COUNTY OF                  )

         On the __ day of December 2002 before me, a notary public in and for
said State, personally appeared ______________, known to me to be a
_______________ of Deutsche Bank National Trust Company, a national banking
association that executed the within instrument, and also known to me to be the
person who executed it on behalf of said association, and acknowledged to me
that such corporation executed the within instrument.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

                                  Notary Public

<PAGE>

STATE OF                   )
                           ) ss.:
COUNTY OF                  )

         On the __ day of December 2002 before me, a notary public in and for
said State, personally appeared ______________ known to me to be a Vice
President of the Federal Home Loan Mortgage Corporation, a corporate
instrumentality of the United States that executed the within instrument, and
also known to me to be the person who executed it on behalf of said corporation,
and acknowledged to me that such corporation executed the within instrument.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

                                  Notary Public

<PAGE>

                                   EXHIBIT A-1

                          FORM OF CLASS AF CERTIFICATES

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

<TABLE>
<CAPTION>
<S>                                                       <C>
Certificate No. 1                                         Initial Certificate Principal Balance of this
                                                          Certificate ("Denomination"):

Class: AF                                                 $ ___________________

Pass-Through Rate: As set forth herein                    Original Class Certificate Principal Balance of
                                                          this Class:
                                                          $ ___________________

Cut-off Date: December 1, 2002                            Final Maturity Date: [DATE]

First Distribution Date: January 27, 2003
</TABLE>

                                      A-1-1

<PAGE>

               Ameriquest Mortgage Securities Inc., Series 2002-D
                                    Class AF

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust

                AMERIQUEST MORTGAGE SECURITIES INC., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this
Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Certificate does
not evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Seller, the Originator, the Servicer, or the Trustee referred to
below or any of their respective affiliates.

         This certifies that the Federal Home Loan Mortgage Corporation is the
registered owner of the Percentage Interest evidenced by this Certificate
(obtained by dividing the Denomination of this Certificate by the Original Class
Certificate Principal Balance) in certain monthly distributions with respect to
a Trust consisting primarily of the Mortgage Loans deposited by Ameriquest
Mortgage Securities Inc. (the "Depositor"). The Trust was created pursuant to a
Pooling and Servicing Agreement dated as of December 1, 2002 (the "Agreement")
among the Depositor, Ameriquest Mortgage Company as originator and master
servicer (the "Originator" and "Master Servicer"), the Federal Home Loan
Mortgage Corporation, as guarantor of the Class A Certificates and Class S
Certificates (the "Guarantor") and Deutsche Bank National Trust Company, a
national banking association, as Trustee (the "Trustee"). To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound. In the event of a conflict between this Certificate and the
Agreement, the Agreement controls.

         The Pass-Through Rate for this Certificate and any Distribution Date is
the lesser of (x) [_____]% per annum and (y) the Pool Net WAC Rate for such
Distribution Date.

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized officer of the Trustee.

                                      * * *

                                      A-1-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: December __, 2002

                                    DEUTSCHE BANK NATIONAL TRUST
                                    COMPANY, not in its individual capacity, but
                                    solely as Trustee

                                    By:________________________________________

This is one of the Class of Certificates
referenced in the within-mentioned Agreement

By:_________________________________________
     Authorized Signatory of
     Deutsche Bank National Trust Company,
     as Trustee

<PAGE>

                        [Reverse of Class AF Certificate]

                      AMERIQUEST MORTGAGE SECURITIES INC.,
                                  Series 2002-D

         This Certificate is one of a duly authorized issue of Certificates
designated as Ameriquest Mortgage Securities Inc., Series 2002-D (herein
collectively called the "Certificates"), and representing a beneficial ownership
interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day then the
first Business Day following such Distribution Date (the "Distribution Date"),
commencing on the first Distribution Date specified on the face hereof, to the
Person in whose name this Certificate is registered at the close of business on
the applicable Record Date in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be distributed
to Holders of Certificates of the Class to which this Certificate belongs on
such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by wire transfer or
otherwise, as set forth in the Agreement. The final distribution on each
Certificate will be made in like manner, but only upon presentment and surrender
of such Certificate at the office or agency of the Trustee specified in the
notice to Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any
time, with the consent of the Guarantor and the NIMS Insurer, if any (which
consent shall not be unreasonably withheld), by the Depositor, the Originator,
the Master Servicer and the Trustee and of Holders of the requisite percentage
of the Percentage Interests of each Class of Certificates affected by such
amendment, as specified in the Agreement. Any such consent by the Holder of this
Certificate shall be conclusive and binding on such Holder and upon all future
Holders of this Certificate and of any Certificate issued upon the transfer
hereof or in exchange therefor or in lieu hereof whether or not notation of such
consent is made upon this Certificate. The Agreement also permits the amendment
thereof, in certain limited circumstances, without the consent of the Holders of
any of the Certificates, but with the consent of the NIMS Insurer, if any (which
consent shall not be unreasonably withheld).

                                      A-1-4

<PAGE>

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Trustee upon surrender of this Certificate for registration of
transfer at the office or agency maintained by the Trustee accompanied by a
written instrument of transfer in form satisfactory to the Trustee and the
Certificate Registrar duly executed by the holder hereof or such holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates in
denominations specified in the Agreement. As provided in the Agreement and
subject to certain limitations therein set forth, Certificates are exchangeable
for new Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest, as requested by the Holder
surrendering the same.

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

         The Master Servicer, the Depositor, the Trustee, the Certificate
Registrar, any Paying Agent and any agent of the Master Servicer, the Depositor,
the Guarantor, the NIMS Insurer, if any, the Certificate Registrar, any Paying
Agent or the Trustee may treat the Person, including a Depository, in whose name
any Certificate is registered as the owner hereof for all purposes of, and none
of the Master Servicer, the Trust, the Guarantor, the NIMS Insurer, if any, the
Trustee nor any agent of any of them shall be affected by notice to the
contrary.

         The Master Servicer or the NIMS Insurer, if any, may, at its option, on
the Optional Termination Date purchase, on such date, all of the outstanding
Mortgage Loans and REO Properties in the Mortgage Pool at a price equal to the
Termination Price. The obligations and responsibilities created by the Agreement
will terminate upon notice to the Trustee upon the later (A) the payment in full
of all amounts owing to the Guarantor unless the Guarantor shall otherwise
consent and (B) the earliest of (i) the final payment or other liquidation of
the last Mortgage Loan in the Trust, (ii) the optional purchase by the Master
Servicer or the NIMS Insurer, if any, of the Mortgage Loans and (iii) the
Distribution Date in [DATE]. In no event, however, will the trust created by the
Agreement continue beyond the expiration of 21 years from the death of the last
survivor of the descendants living at the date of the Agreement of a certain
person named in the Agreement.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                      A-1-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
                   (Please print or typewrite name and address
                     including postal zip code of assignee)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:

Dated:_______________________

                                         _______________________________________
                                         Signature by or on behalf of assignor

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to for the account of _____________________________,
account number _______________, or, if mailed by check, to ____________________.
Applicable statements should be mailed to __________________________________.

         This information is provided by the assignee named above, or as its
agent.

<PAGE>

                                   EXHIBIT A-2

                          FORM OF CLASS AV CERTIFICATES

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

<TABLE>
<CAPTION>
<S>                                                       <C>
Certificate No. 1                                         Initial Certificate Principal Balance of this
                                                          Certificate ("Denomination"):

Class: AV                                                 $_____________________

Pass-Through Rate: As set forth herein                    Original Class Certificate Principal Balance of
                                                          this Class:
                                                          $____________________

Cut-off Date: December 1, 2002                            Final Maturity Date: [DATE]

First Distribution Date: January 27, 2003
</TABLE>

                                      A-2-1

<PAGE>

               Ameriquest Mortgage Securities Inc., Series 2002-D
                                    Class AV

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust

                AMERIQUEST MORTGAGE SECURITIES INC., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this
Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Certificate does
not evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Seller, the Originator, the Master Servicer, or the Trustee
referred to below or any of their respective affiliates.

         This certifies that the Federal Home Loan Mortgage Corporation is the
registered owner of the Percentage Interest evidenced by this Certificate
(obtained by dividing the Denomination of this Certificate by the Original Class
Certificate Principal Balance) in certain monthly distributions with respect to
a Trust consisting primarily of the Mortgage Loans deposited by Ameriquest
Mortgage Securities Inc. (the "Depositor"). The Trust was created pursuant to a
Pooling and Servicing Agreement dated as of December 1, 2002 (the "Agreement")
among the Depositor, Ameriquest Mortgage Company as originator and master
servicer (the "Originator" and "Master Servicer"), the Federal Home Loan
Mortgage Corporation, as guarantor of the Class A Certificates and the Class S
Certificates (the "Guarantor") and Deutsche Bank National Trust Company, a
national banking association, as Trustee (the "Trustee"). To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound. In the event of a conflict between this Certificate and the
Agreement, the Agreement controls.

         The Pass-Through Rate for this Certificate and any Distribution Date is
the lesser of (x) the lesser of (i) LIBOR plus [____]% per annum on and prior to
the Optional Termination Date and LIBOR plus [_____]% per annum after the
Optional Termination Date and (ii) the Maximum Cap Rate and (y) the Pool Net WAC
Rate.

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized officer of the Trustee.

                                      * * *

                                      A-2-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: December __, 2002

                                   DEUTSCHE BANK NATIONAL TRUST
                                   COMPANY, not in its individual capacity, but
                                   solely as Trustee

                                   By:_________________________________________

This is one of the Class of the Certificates
referenced in the within-mentioned Agreement

By:________________________________________
      Authorized Signatory of
      Deutsche Bank National Trust Company,
      as Trustee

<PAGE>

                        [Reverse of Class AV Certificate]

                      AMERIQUEST MORTGAGE SECURITIES INC.,
                                  Series 2002-D

         This Certificate is one of a duly authorized issue of Certificates
designated as Ameriquest Mortgage Securities Inc., Series 2002-D (herein
collectively called the "Certificates"), and representing a beneficial ownership
interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day then the
first Business Day following such Distribution Date (the "Distribution Date"),
commencing on the first Distribution Date specified on the face hereof, to the
Person in whose name this Certificate is registered at the close of business on
the applicable Record Date in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be distributed
to Holders of Certificates of the Class to which this Certificate belongs on
such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by wire transfer or
otherwise, as set forth in the Agreement. The final distribution on each
Certificate will be made in like manner, but only upon presentment and surrender
of such Certificate at the office or agency of the Trustee specified in the
notice to Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any
time, with the consent of the Guarantor and the NIMS Insurer, if any (which
consent shall not be unreasonably withheld), by the Depositor, the Originator,
the Master Servicer and the Trustee and of Holders of the requisite percentage
of the Percentage Interests of each Class of Certificates affected by such
amendment, as specified in the Agreement. Any such consent by the Holder of this
Certificate shall be conclusive and binding on such Holder and upon all future
Holders of this Certificate and of any Certificate issued upon the transfer
hereof or in exchange therefor or in lieu hereof whether or not notation of such
consent is made upon this Certificate. The Agreement also permits the amendment
thereof, in certain limited circumstances, without the consent of the Holders of
any of the Certificates, but with the consent of the NIMS Insurer, if any (which
consent shall not be unreasonably withheld).

                                      A-2-4

<PAGE>

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Trustee upon surrender of this Certificate for registration of
transfer at the office or agency maintained by the Trustee accompanied by a
written instrument of transfer in form satisfactory to the Trustee and the
Certificate Registrar duly executed by the holder hereof or such holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates in
denominations specified in the Agreement. As provided in the Agreement and
subject to certain limitations therein set forth, Certificates are exchangeable
for new Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest, as requested by the Holder
surrendering the same.

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

         The Master Servicer, the Depositor, the Trustee, the Certificate
Registrar, any Paying Agent and any agent of the Master Servicer, the Depositor,
the Guarantor, the NIMS Insurer, if any, the Certificate Registrar, any Paying
Agent or the Trustee may treat the Person, including a Depository, in whose name
any Certificate is registered as the owner hereof for all purposes of, and none
of the Master Servicer, the Trust, the Guarantor, the NIMS Insurer, if any, the
Trustee nor any agent of any of them shall be affected by notice to the
contrary.

         The Master Servicer or the NIMS Insurer, if any, may, at its option, on
the Optional Termination Date purchase, on such date, all of the outstanding
Mortgage Loans and REO Properties in the Mortgage Pool at a price equal to the
Termination Price. The obligations and responsibilities created by the Agreement
will terminate upon notice to the Trustee upon the later (A) the payment in full
of all amounts owing to the Guarantor unless the Guarantor shall otherwise
consent and (B) the earliest of (i) the final payment or other liquidation of
the last Mortgage Loan in the Trust, (ii) the optional purchase by the Master
Servicer or the NIMS Insurer, if any, of the Mortgage Loans and (iii) the
Distribution Date in [DATE]. In no event, however, will the trust created by the
Agreement continue beyond the expiration of 21 years from the death of the last
survivor of the descendants living at the date of the Agreement of a certain
person named in the Agreement.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                      A-2-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
                   (Please print or typewrite name and address
                     including postal zip code of assignee)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:

Dated:_______________________

                                         _______________________________________
                                         Signature by or on behalf of assignor

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to for the account of _____________________________,
account number _______________, or, if mailed by check, to ____________________.
Applicable statements should be mailed to __________________________________.

         This information is provided by the assignee named above, or as its
agent.

<PAGE>

                                   EXHIBIT A-3

                          FORM OF CLASS S CERTIFICATES

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

<TABLE>
<CAPTION>
<S>                                                       <C>
Certificate No. 1                                         Initial Notional Amount of this Certificate
                                                          ("Denomination"):

Class: S                                                  $____________________

Pass-Through Rate: As set forth herein                    Original Notional Amount of this Class:
                                                          $____________________

Cut-off Date: December 1, 2002                            Final Maturity Date: [DATE]

First Distribution Date: January 27, 2002
</TABLE>

                                      A-8-1

<PAGE>

               Ameriquest Mortgage Securities Inc., Series 2002-D
                                     Class S

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust

                AMERIQUEST MORTGAGE SECURITIES INC, as Depositor

         This Certificate does not evidence an obligation of, or an interest in,
and is not guaranteed by the Depositor, the Seller, the Originator, the Master
Servicer, or the Trustee referred to below or any of their respective
affiliates.

         This certifies that the Federal Home Loan Mortgage Corporation is the
registered owner of the Percentage Interest evidenced by this Certificate
(obtained by dividing the Denomination of this Certificate by the Original
Notional Amount) in certain monthly distributions with respect to a Trust
consisting primarily of the Mortgage Loans deposited by Ameriquest Mortgage
Securities Inc. (the "Depositor"). The Trust was created pursuant to a Pooling
and Servicing Agreement dated as of December 1, 2002 (the "Agreement") among the
Depositor, Ameriquest Mortgage Company as originator and master servicer (the
"Originator" and "Master Servicer"), the Federal Home Loan Mortgage Corporation,
as guarantor of the Class A Certificates and Class S Certificates (the
"Guarantor") and Deutsche Bank National Trust Company, a national banking
association, as Trustee (the "Trustee"). To the extent not defined herein, the
capitalized terms used herein have the meanings assigned in the Agreement. This
Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound. In
the event of a conflict between this Certificate and the Agreement, the
Agreement controls.

         The Pass-Through Rate for this Certificate and any Distribution Date is
equal to the lesser of (A) ______% for the 1st Distribution Date through the
10th Distribution Date, _______% for the 11th Distribution Date through the 20th
Distribution Date, ________% for the 21st Distribution Date through the 30th
Distribution Date and ______% thereafter and (B) the related Net WAC Rate for
such Distribution Date.

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized officer of the Trustee.

                                      * * *

                                                       A-8-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: December __, 2002

                                   DEUTSCHE BANK NATIONAL TRUST
                                   COMPANY, not in its individual capacity, but
                                   solely as Trustee

                                   By:_________________________________________

This is one of the Class of the Certificates
referenced in the within-mentioned Agreement

By:________________________________________
      Authorized Signatory of
      Deutsche Bank National Trust Company,
      as Trustee

<PAGE>

                        [Reverse of Class S Certificate]

                      AMERIQUEST MORTGAGE SECURITIES INC.,
                                  Series 2002-D

         This Certificate is one of a duly authorized issue of Certificates
designated as Ameriquest Mortgage Securities Inc., Series 2002-D (herein
collectively called the "Certificates"), and representing a beneficial ownership
interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day then the
first Business Day following such Distribution Date (the "Distribution Date"),
commencing on the first Distribution Date specified on the face hereof, to the
Person in whose name this Certificate is registered at the close of business on
the applicable Record Date in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be distributed
to Holders of Certificates of the Class to which this Certificate belongs on
such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by wire transfer or
otherwise, as set forth in the Agreement. The final distribution on each
Certificate will be made in like manner, but only upon presentment and surrender
of such Certificate at the office or agency of the Trustee specified in the
notice to Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any
time, with the consent of the Guarantor and the NIMS Insurer, if any (which
consent shall not be unreasonably withheld), by the Depositor, the Originator,
the Master Servicer and the Trustee and of Holders of the requisite percentage
of the Percentage Interests of each Class of Certificates affected by such
amendment, as specified in the Agreement. Any such consent by the Holder of this
Certificate shall be conclusive and binding on such Holder and upon all future
Holders of this Certificate and of any Certificate issued upon the transfer
hereof or in exchange therefor or in lieu hereof whether or not notation of such
consent is made upon this Certificate. The Agreement also permits the amendment
thereof, in certain limited circumstances, without the consent of the Holders of
any of the Certificates, but with the consent of the NIMS Insurer, if any (which
consent shall not be unreasonably withheld).

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Trustee upon surrender of this

                                      A-8-4

<PAGE>

Certificate for registration of transfer at the office or agency maintained by
the Trustee accompanied by a written instrument of transfer in form satisfactory
to the Trustee and the Certificate Registrar duly executed by the holder hereof
or such holder's attorney duly authorized in writing, and thereupon one or more
new Certificates of the same Class in authorized denominations and evidencing
the same aggregate Percentage Interest in the Trust will be issued to the
designated transferee or transferees.

         The Certificates are issuable only as registered Certificates in
denominations specified in the Agreement. As provided in the Agreement and
subject to certain limitations therein set forth, Certificates are exchangeable
for new Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest, as requested by the Holder
surrendering the same.

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

         The Master Servicer, the Depositor, the Trustee, the Certificate
Registrar, any Paying Agent and any agent of the Master Servicer, the Depositor,
the Guarantor, the NIMS Insurer, if any, the Certificate Registrar, any Paying
Agent or the Trustee may treat the Person, including a Depository, in whose name
any Certificate is registered as the owner hereof for all purposes of, and none
of the Master Servicer, the Trust, the Guarantor, the NIMS Insurer, if any, the
Trustee nor any agent of any of them shall be affected by notice to the
contrary.

         The Master Servicer or the NIMS Insurer, if any, may, at its option, on
the Optional Termination Date purchase, on such date, all of the outstanding
Mortgage Loans and REO Properties in the Mortgage Pool at a price equal to the
Termination Price. The obligations and responsibilities created by the Agreement
will terminate upon notice to the Trustee upon the later (A) the payment in full
of all amounts owing to the Guarantor unless the Guarantor shall otherwise
consent and (B) the earliest of (i) the final payment or other liquidation of
the last Mortgage Loan in the Trust, (ii) the optional purchase by the Master
Servicer or the NIMS Insurer, if any, of the Mortgage Loans and (iii) the
Distribution Date in April 2005. In no event, however, will the trust created by
the Agreement continue beyond the expiration of 21 years from the death of the
last survivor of the descendants living at the date of the Agreement of a
certain person named in the Agreement.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                      A-8-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
                   (Please print or typewrite name and address
                     including postal zip code of assignee)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:

Dated:_______________________

                                         _______________________________________
                                         Signature by or on behalf of assignor

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to for the account of _____________________________,
account number _______________, or, if mailed by check, to ____________________.
Applicable statements should be mailed to __________________________________.

         This information is provided by the assignee named above, or as its
agent.

<PAGE>

                                   EXHIBIT A-4
                                   -----------

                         FORM OF CLASS M-1 CERTIFICATES

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THE CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES AND THE CLASS S
CERTIFICATES.

<TABLE>
<CAPTION>
<S>                                                       <C>
Certificate No. 1                                         Initial Certificate Principal Balance of this
                                                          Certificate ("Denomination"):

Class: M-1                                                $ ___________________

Pass-Through Rate: As set forth herein                    Original Class Certificate Principal Balance of
                                                          this Class:
                                                          $ ___________________

Cut-off Date: December 1, 2002                            Final Maturity Date: [DATE]

First Distribution Date: January 27, 2003
</TABLE>

                                      A-9-1

<PAGE>

               Ameriquest Mortgage Securities Inc., Series 2002-D
                                    Class M-1

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust

                AMERIQUEST MORTGAGE SECURITIES INC., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this
Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Certificate does
not evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Seller, the Originator, the Master Servicer, or the Trustee
referred to below or any of their respective affiliates.

         This certifies that the Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
Denomination of this Certificate by the Original Class Certificate Principal
Balance) in certain monthly distributions with respect to a Trust consisting
primarily of the Mortgage Loans deposited by Ameriquest Mortgage Securities Inc.
(the "Depositor"). The Trust was created pursuant to a Pooling and Servicing
Agreement dated as of December 1, 2002 (the "Agreement") among the Depositor,
Ameriquest Mortgage Company as originator and master servicer (the "Originator"
and "Master Servicer"), the Federal Home Loan Mortgage Corporation, as guarantor
of the Class A Certificates and the Class S Certificates (the "Guarantor") and
Deutsche Bank National Trust Company, a national banking association, as Trustee
(the "Trustee"). To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound. In the event of a conflict
between this Certificate and the Agreement, the Agreement controls.

         The Pass-Through Rate for this Certificate and any Distribution Date is
the lesser of (x) the lesser of (i) LIBOR plus _______% per annum on and prior
to the Optional Termination Date and LIBOR plus______% per annum after the
Optional Termination Date and (ii) the Maximum Cap Rateand (y) the Pool Net WAC
Rate.

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized officer of the Trustee.

                                      * * *

                                                       A-9-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: December __, 2002

                                   DEUTSCHE BANK NATIONAL TRUST
                                   COMPANY, not in its individual capacity, but
                                   solely as Trustee

                                   By:_________________________________________

This is one of the Class of the Certificates
referenced in the within-mentioned Agreement

By:________________________________________
      Authorized Signatory of
      Deutsche Bank National Trust Company,
      as Trustee

<PAGE>

                       [Reverse of Class M-1 Certificate]

                      AMERIQUEST MORTGAGE SECURITIES INC.,
                                  Series 2002-D

         This Certificate is one of a duly authorized issue of Certificates
designated as Ameriquest Mortgage Securities Inc., Series 2002-D (herein
collectively called the "Certificates"), and representing a beneficial ownership
interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day then the
first Business Day following such Distribution Date (the "Distribution Date"),
commencing on the first Distribution Date specified on the face hereof, to the
Person in whose name this Certificate is registered at the close of business on
the applicable Record Date in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be distributed
to Holders of Certificates of the Class to which this Certificate belongs on
such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by wire transfer or
otherwise, as set forth in the Agreement. The final distribution on each
Certificate will be made in like manner, but only upon presentment and surrender
of such Certificate at the office or agency of the Trustee specified in the
notice to Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any
time, with the consent of the Guarantor and the NIMS Insurer, if any (which
consent shall not be unreasonably withheld), by the Depositor, the Originator,
the Master Servicer and the Trustee and of Holders of the requisite percentage
of the Percentage Interests of each Class of Certificates affected by such
amendment, as specified in the Agreement. Any such consent by the Holder of this
Certificate shall be conclusive and binding on such Holder and upon all future
Holders of this Certificate and of any Certificate issued upon the transfer
hereof or in exchange therefor or in lieu hereof whether or not notation of such
consent is made upon this Certificate. The Agreement also permits the amendment
thereof, in certain limited circumstances, without the consent of the Holders of
any of the Certificates, but with the consent of the NIMS Insurer, if any (which
consent shall not be unreasonably withheld).

                                      A-9-4

<PAGE>

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Trustee upon surrender of this Certificate for registration of
transfer at the office or agency maintained by the Trustee accompanied by a
written instrument of transfer in form satisfactory to the Trustee and the
Certificate Registrar duly executed by the holder hereof or such holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates in
denominations specified in the Agreement. As provided in the Agreement and
subject to certain limitations therein set forth, Certificates are exchangeable
for new Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest, as requested by the Holder
surrendering the same.

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

         The Master Servicer, the Depositor, the Trustee, the Certificate
Registrar, any Paying Agent and any agent of the Master Servicer, the Depositor,
the Guarantor, the NIMS Insurer, if any, the Certificate Registrar, any Paying
Agent or the Trustee may treat the Person, including a Depository, in whose name
any Certificate is registered as the owner hereof for all purposes of, and none
of the Master Servicer, the Trust, the Guarantor, the NIMS Insurer, if any, the
Trustee nor any agent of any of them shall be affected by notice to the
contrary.

         The Master Servicer or the NIMS Insurer, if any, may, at its option, on
the Optional Termination Date purchase, on such date, all of the outstanding
Mortgage Loans and REO Properties in the Mortgage Pool at a price equal to the
Termination Price. The obligations and responsibilities created by the Agreement
will terminate upon notice to the Trustee upon the later (A) the payment in full
of all amounts owing to the Guarantor unless the Guarantor shall otherwise
consent and (B) the earliest of (i) the final payment or other liquidation of
the last Mortgage Loan in the Trust, (ii) the optional purchase by the Master
Servicer or the NIMS Insurer, if any, of the Mortgage Loans and (iii) the
Distribution Date in [DATE]. In no event, however, will the trust created by the
Agreement continue beyond the expiration of 21 years from the death of the last
survivor of the descendants living at the date of the Agreement of a certain
person named in the Agreement.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                      A-9-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
                   (Please print or typewrite name and address
                     including postal zip code of assignee)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:

Dated:_______________________

                                         _______________________________________
                                         Signature by or on behalf of assignor

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to for the account of _____________________________,
account number _______________, or, if mailed by check, to ____________________.
Applicable statements should be mailed to __________________________________.

         This information is provided by the assignee named above, or as its
agent.

<PAGE>

                                   EXHIBIT A-5

                         FORM OF CLASS M-2 CERTIFICATES

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THE CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES AND THE CLASS S
CERTIFICATES.

<TABLE>
<CAPTION>
<S>                                                       <C>
Certificate No. 1                                         Initial Certificate Principal Balance of this
                                                          Certificate ("Denomination"):

Class: M-2                                                $ __________________

Pass-Through Rate: As set forth herein                    Original Class Certificate Principal Balance of
                                                          this Class:
                                                          $ __________________

Cut-off Date: December 1, 2002                            Final Maturity Date: [DATE]

First Distribution Date: January 27, 2003
</TABLE>

                                     A-10-1

<PAGE>

               Ameriquest Mortgage Securities Inc., Series 2002-D
                                    Class M-2

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust

                AMERIQUEST MORTGAGE SECURITIES INC., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this
Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Certificate does
not evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Seller, the Originator, the Master Servicer, or the Trustee
referred to below or any of their respective affiliates.

         This certifies that the Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
Denomination of this Certificate by the Original Class Certificate Principal
Balance) in certain monthly distributions with respect to a Trust consisting
primarily of the Mortgage Loans deposited by Ameriquest Mortgage Securities Inc.
(the "Depositor"). The Trust was created pursuant to a Pooling and Servicing
Agreement dated as of December 1, 2002 (the "Agreement") among the Depositor,
Ameriquest Mortgage Company as originator and master servicer (the "Originator"
and "Master Servicer"), the Federal Home Loan Mortgage Corporation, as guarantor
of the Class A Certificates and the Class S Certificates (the "Guarantor") and
Deutsche Bank National Trust Company, a national banking association, as Trustee
(the "Trustee"). To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound. In the event of a conflict
between this Certificate and the Agreement, the Agreement controls.

         The Pass-Through Rate for this Certificate and any Distribution Date is
the lesser of (x) the lesser of (i) LIBOR plus [_____]% per annum on and prior
to the Optional Termination Date and LIBOR plus [_____% per annum after the
Optional Termination Date and (ii) the Maximum Cap Rate and (y) the Pool Net WAC
Rate.

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized officer of the Trustee.

                                      * * *

                                     A-10-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: December __, 2002

                                   DEUTSCHE BANK NATIONAL TRUST
                                   COMPANY, not in its individual capacity, but
                                   solely as Trustee

                                   By:_________________________________________

This is one of the Class of the Certificates
referenced in the within-mentioned Agreement

By:________________________________________
      Authorized Signatory of
      Deutsche Bank National Trust Company,
      as Trustee

<PAGE>

                       [Reverse of Class M-2 Certificate]

                      AMERIQUEST MORTGAGE SECURITIES INC.,
                                  Series 2002-D

         This Certificate is one of a duly authorized issue of Certificates
designated as Ameriquest Mortgage Securities Inc., Series 2002-D (herein
collectively called the "Certificates"), and representing a beneficial ownership
interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day then the
first Business Day following such Distribution Date (the "Distribution Date"),
commencing on the first Distribution Date specified on the face hereof, to the
Person in whose name this Certificate is registered at the close of business on
the applicable Record Date in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be distributed
to Holders of Certificates of the Class to which this Certificate belongs on
such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by wire transfer or
otherwise, as set forth in the Agreement. The final distribution on each
Certificate will be made in like manner, but only upon presentment and surrender
of such Certificate at the office or agency of the Trustee specified in the
notice to Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any
time, with the consent of the Guarantor and the NIMS Insurer, if any (which
consent shall not be unreasonably withheld), by the Depositor, the Originator,
the Master Servicer and the Trustee and of Holders of the requisite percentage
of the Percentage Interests of each Class of Certificates affected by such
amendment, as specified in the Agreement. Any such consent by the Holder of this
Certificate shall be conclusive and binding on such Holder and upon all future
Holders of this Certificate and of any Certificate issued upon the transfer
hereof or in exchange therefor or in lieu hereof whether or not notation of such
consent is made upon this Certificate. The Agreement also permits the amendment
thereof, in certain limited circumstances, without the consent of the Holders of
any of the Certificates, but with the consent of the NIMS Insurer, if any (which
consent shall not be unreasonably withheld).

                                     A-10-4

<PAGE>

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Trustee upon surrender of this Certificate for registration of
transfer at the office or agency maintained by the Trustee accompanied by a
written instrument of transfer in form satisfactory to the Trustee and the
Certificate Registrar duly executed by the holder hereof or such holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates in
denominations specified in the Agreement. As provided in the Agreement and
subject to certain limitations therein set forth, Certificates are exchangeable
for new Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest, as requested by the Holder
surrendering the same.

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

         The Master Servicer, the Depositor, the Trustee, the Certificate
Registrar, any Paying Agent and any agent of the Master Servicer, the Depositor,
the Guarantor, the NIMS Insurer, if any, the Certificate Registrar, any Paying
Agent or the Trustee may treat the Person, including a Depository, in whose name
any Certificate is registered as the owner hereof for all purposes of, and none
of the Master Servicer, the Trust, the Guarantor, the NIMS Insurer, if any, the
Trustee nor any agent of any of them shall be affected by notice to the
contrary.

         The Master Servicer or the NIMS Insurer, if any, may, at its option, on
the Optional Termination Date purchase, on such date, all of the outstanding
Mortgage Loans and REO Properties in the Mortgage Pool at a price equal to the
Termination Price. The obligations and responsibilities created by the Agreement
will terminate upon notice to the Trustee upon the later (A) the payment in full
of all amounts owing to the Guarantor unless the Guarantor shall otherwise
consent and (B) the earliest of (i) the final payment or other liquidation of
the last Mortgage Loan in the Trust, (ii) the optional purchase by the Master
Servicer or the NIMS Insurer, if any, of the Mortgage Loans and (iii) the
Distribution Date in [DATE]. In no event, however, will the trust created by the
Agreement continue beyond the expiration of 21 years from the death of the last
survivor of the descendants living at the date of the Agreement of a certain
person named in the Agreement.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                     A-10-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
                   (Please print or typewrite name and address
                     including postal zip code of assignee)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:

Dated:_______________________

                                         _______________________________________
                                         Signature by or on behalf of assignor

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to for the account of _____________________________,
account number _______________, or, if mailed by check, to ____________________.
Applicable statements should be mailed to __________________________________.

         This information is provided by the assignee named above, or as its
agent.

<PAGE>

                                   EXHIBIT A-6

                          FORM OF CLASS CE CERTIFICATES

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THIS CERTIFICATE MAY NOT BE TRANSFERRED EXCEPT IN ACCORDANCE WITH SECTION 5.02
OF THE POOLING AND SERVICING AGREEMENT.

THIS CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE.
ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE OR ANY INTEREST
HEREIN WITHOUT SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A
TRANSACTION WHICH DOES NOT REQUIRE SUCH REGISTRATION OR QUALIFICATION AND WHICH
IS IN ACCORDANCE WITH THE PROVISIONS OF THE POOLING AND SERVICING AGREEMENT
REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
PROCEDURES DESCRIBED HEREIN.

<TABLE>
<CAPTION>
<S>                                                       <C>
Certificate No. 1                                         Initial Certificate Principal Balance of this
                                                          Certificate ("Denomination"):

Class: CE                                                 $____________________

Initial Pass-Through Rate: Variable (As                   Original Class Certificate Principal Balance of
calculated in the Pooling and Servicing                   this Class:
Agreement)                                                $____________________

Cut-off Date: December 1, 2002                            Final Maturity Date: [DATE]

First Distribution Date: January 27, 2003
</TABLE>

                                     A-11-1

<PAGE>

               Ameriquest Mortgage Securities Inc., Series 2002-D
                                    Class CE

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above- referenced Class with respect to the
         Trust

                AMERIQUEST MORTGAGE SECURITIES INC., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this
Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Certificate does
not evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Seller, the Originator, the Master Servicer, or the Trustee
referred to below or any of their respective affiliates.

         This certifies that ___________________________ is the registered owner
of the Percentage Interest evidenced by this Certificate (obtained by dividing
the Denomination of this Certificate by the Original Class Certificate Principal
Balance) in certain monthly distributions with respect to a Trust consisting
primarily of the Mortgage Loans deposited by Ameriquest Mortgage Securities Inc.
(the "Depositor"). The Trust was created pursuant to a Pooling and Servicing
Agreement dated as of December 1, 2002 (the "Agreement") among the Depositor,
Ameriquest Mortgage Company as originator and master servicer (the "Originator'
and "Master Servicer"), the Federal Home Loan Mortgage Corporation, as guarantor
of the Class A Certificates and the Class S Certificates (the "Guarantor") and
Deutsche Bank National Trust Company, a national banking association, as Trustee
(the "Trustee"). To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound. In the event of a conflict
between this Certificate and the Agreement, the Agreement controls.

         No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the Act
and any applicable state securities laws or is exempt from the registration
requirements under said Act and such laws. In the event that a transfer is to be
made in reliance upon an exemption from the Act and such laws, in order to
assure compliance with the Act and such laws, the Certificateholder desiring to
effect such transfer and such Certificateholder's prospective transferee shall
each certify to the Trustee and the Depositor in writing the facts surrounding
the transfer. In the event of a transfer of this Certificate, there shall be
delivered to the Trustee and the Depositor (i) an Opinion of Counsel that such
transfer may be made pursuant to an exemption from the Act, which Opinion of
Counsel shall not be obtained at the expense of the Trustee or the Depositor; or
(ii) a transferor certificate by the transferor and an investment letter shall
be executed by the transferee. The Holder hereof desiring to effect such
transfer shall, and does hereby agree to, indemnify the Trustee and the
Depositor against any liability that may result if the transfer is not so exempt
or is not made in accordance with such federal and state laws.

                                     A-3-1

<PAGE>

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(b) of the Agreement.

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      * * *

                                      A-3-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: December __, 2002

                                   DEUTSCHE BANK NATIONAL TRUST
                                   COMPANY, not in its individual capacity, but
                                   solely as Trustee

                                   By:_________________________________________

This is one of the Class of the Certificates
referenced in the within-mentioned Agreement

By:________________________________________
      Authorized Signatory of
      Deutsche Bank National Trust Company,
      as Trustee

<PAGE>

                        [Reverse of Class CE Certificate]

                       AMERIQUEST MORTGAGE SECURITIES INC.
                                  Series 2002-D

         This Certificate is one of a duly authorized issue of Certificates
designated as Ameriquest Mortgage Securities Inc., Series 2002-D (herein
collectively called the "Certificates"), and representing a beneficial ownership
interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day then the
first Business Day following such Distribution Date (the "Distribution Date"),
commencing on the first Distribution Date specified on the face hereof, to the
Person in whose name this Certificate is registered at the close of business on
the applicable Record Date in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be distributed
to Holders of Certificates of the Class to which this Certificate belongs on
such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by wire transfer or
otherwise, as set forth in the Agreement. The final distribution on each
Certificate will be made in like manner, but only upon presentment and surrender
of such Certificate at the office or agency of the Trustee specified in the
notice to Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any
time, with the consent of the Guarantor and the NIMS Insurer, if any (which
consent shall not be unreasonably withheld), by the Depositor, the Originator,
the Master Servicer and the Trustee and of Holders of the requisite percentage
of the Percentage Interests of each Class of Certificates affected by such
amendment, as specified in the Agreement. Any such consent by the Holder of this
Certificate shall be conclusive and binding on such Holder and upon all future
Holders of this Certificate and of any Certificate issued upon the transfer
hereof or in exchange therefor or in lieu hereof whether or not notation of such
consent is made upon this Certificate. The Agreement also permits the amendment
thereof, in certain limited circumstances, without the consent of the Holders of
any of the Certificates, but with the consent of the NIMS Insurer, if any (which
consent shall not be unreasonably withheld).

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Trustee upon surrender of this

                                      A-3-4

<PAGE>

Certificate for registration of transfer at the office or agency maintained by
the Trustee accompanied by a written instrument of transfer in form satisfactory
to the Trustee and the Certificate Registrar duly executed by the holder hereof
or such holder's attorney duly authorized in writing, and thereupon one or more
new Certificates of the same Class in authorized denominations and evidencing
the same aggregate Percentage Interest in the Trust will be issued to the
designated transferee or transferees.

         The Certificates are issuable only as registered Certificates in
denominations specified in the Agreement. As provided in the Agreement and
subject to certain limitations therein set forth, Certificates are exchangeable
for new Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest, as requested by the Holder
surrendering the same.

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

         The Master Servicer, the Depositor, the Trustee, the Certificate
Registrar, any Paying Agent and any agent of the Master Servicer, the Depositor,
the Guarantor, the NIMS Insurer, if any, the Certificate Registrar, any Paying
Agent or the Trustee may treat the Person, including a Depository, in whose name
any Certificate is registered as the owner hereof for all purposes of, and none
of the Master Servicer, the Trust, the Guarantor, the NIMS Insurer, if any, the
Trustee nor any agent of any of them shall be affected by notice to the
contrary.

         The Master Servicer or the NIMS Insurer, if any, may, at its option, on
the Optional Termination Date purchase, on such date, all of the outstanding
Mortgage Loans and REO Properties in the Mortgage Pool at a price equal to the
Termination Price. The obligations and responsibilities created by the Agreement
will terminate upon notice to the Trustee upon the later (A) the payment in full
of all amounts owing to the Guarantor unless the Guarantor shall otherwise
consent and (B) the earliest of (i) the final payment or other liquidation of
the last Mortgage Loan in the Trust, (ii) the optional purchase by the Master
Servicer or the NIMS Insurer, if any, of the Mortgage Loans and (iii) the
Distribution Date in [DATE]. In no event, however, will the trust created by the
Agreement continue beyond the expiration of 21 years from the death of the last
survivor of the descendants living at the date of the Agreement of a certain
person named in the Agreement.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                      A-3-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
                   (Please print or typewrite name and address
                     including postal zip code of assignee)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:

Dated:_______________________

                                         _______________________________________
                                         Signature by or on behalf of assignor

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to for the account of _____________________________,
account number _______________, or, if mailed by check, to ____________________.
Applicable statements should be mailed to __________________________________.

         This information is provided by the assignee named above, or as its
agent.

<PAGE>

                                   EXHIBIT A-7

                          FORM OF CLASS P CERTIFICATES

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THIS CERTIFICATE MAY NOT BE TRANSFERRED EXCEPT IN ACCORDANCE WITH SECTION 5.02
OF THE POOLING AND SERVICING AGREEMENT.

THIS CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE.
ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE OR ANY INTEREST
HEREIN WITHOUT SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A
TRANSACTION WHICH DOES NOT REQUIRE SUCH REGISTRATION OR QUALIFICATION AND WHICH
IS IN ACCORDANCE WITH THE PROVISIONS OF THE POOLING AND SERVICING AGREEMENT
REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
PROCEDURES DESCRIBED HEREIN.

<TABLE>
<CAPTION>
<S>                                                       <C>
Certificate No. 1                                         Initial Certificate Principal Balance of this
                                                          Certificate ("Denomination"):

Class: P                                                  $100.00

Cut-off Date: December 1, 2002                            Original Class Certificate Principal Balance of
                                                          this Class:
                                                          $100.00

First Distribution Date: January 27, 2003                 Final Maturity Date: [DATE]
</TABLE>

                                     A-12-1

<PAGE>

                      Ameriquest Mortgage Securities Inc.,
                                  Series 2002-D
                                     Class P

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above- referenced Class with respect to the
         Trust

                AMERIQUEST MORTGAGE SECURITIES INC., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this
Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Certificate does
not evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Seller, the Originator, the Master Servicer, or the Trustee
referred to below or any of their respective affiliates.

         This certifies that _______________________ is the registered owner of
the Percentage Interest evidenced by this Certificate (obtained by dividing the
Denomination of this Certificate by the Original Class Certificate Principal
Balance) in certain monthly distributions with respect to a Trust consisting
primarily of the Mortgage Loans deposited by Ameriquest Mortgage Securities Inc.
(the "Depositor"). The Trust was created pursuant to a Pooling and Servicing
Agreement dated as of December 1, 2002 (the "Agreement") among the Depositor,
Ameriquest Mortgage Company as originator and master servicer (the "Originator'
and "Master Servicer"), the Federal Home Loan Mortgage Corporation, as guarantor
of the Class A Certificates and the Class S Certificates (the "Guarantor") and
Deutsche Bank National Trust Company, a national banking association, as Trustee
(the "Trustee"). To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound. In the event of a conflict
between this Certificate and the Agreement, the Agreement controls.

         No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the Act
and any applicable state securities laws or is exempt from the registration
requirements under said Act and such laws. In the event that a transfer is to be
made in reliance upon an exemption from the Act and such laws, in order to
assure compliance with the Act and such laws, the Certificateholder desiring to
effect such transfer and such Certificateholder's prospective transferee shall
each certify to the Trustee and the Depositor in writing the facts surrounding
the transfer. In the event of a transfer of this Certificate, there shall be
delivered to the Trustee and the Depositor (i) an Opinion of Counsel that such
transfer may be made pursuant to an exemption from the Act, which Opinion of
Counsel shall not be obtained at the expense of the Trustee or the Depositor; or
(ii) a transferor certificate by the transferor and an investment letter shall
be executed by the transferee. The Holder hereof desiring to effect such
transfer shall, and does hereby agree to, indemnify the Trustee and the
Depositor against any liability that may result if the transfer is not so exempt
or is not made in accordance with such federal and state laws.

                                     A-12-2

<PAGE>

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(b) of the Agreement.

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      * * *

                                     A-12-3

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: December __, 2002

                                   DEUTSCHE BANK NATIONAL TRUST
                                   COMPANY, not in its individual capacity, but
                                   solely as Trustee

                                   By:_________________________________________

This is one of the Class of the Certificates
referenced in the within-mentioned Agreement

By:________________________________________
      Authorized Signatory of
      Deutsche Bank National Trust Company,
      as Trustee

<PAGE>

                        [Reverse of Class P Certificate]

                      AMERIQUEST MORTGAGE SECURITIES INC.,
                                  Series 2002-D

         This Certificate is one of a duly authorized issue of Certificates
designated as Ameriquest Mortgage Securities Inc., Series 2002-D (herein
collectively called the "Certificates"), and representing a beneficial ownership
interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day then the
first Business Day following such Distribution Date (the "Distribution Date"),
commencing on the first Distribution Date specified on the face hereof, to the
Person in whose name this Certificate is registered at the close of business on
the applicable Record Date in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be distributed
to Holders of Certificates of the Class to which this Certificate belongs on
such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by wire transfer or
otherwise, as set forth in the Agreement. The final distribution on each
Certificate will be made in like manner, but only upon presentment and surrender
of such Certificate at the office or agency of the Trustee specified in the
notice to Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any
time, with the consent of the Guarantor and the NIMS Insurer, if any (which
consent shall not be unreasonably withheld), by the Depositor, the Originator,
the Master Servicer and the Trustee and of Holders of the requisite percentage
of the Percentage Interests of each Class of Certificates affected by such
amendment, as specified in the Agreement. Any such consent by the Holder of this
Certificate shall be conclusive and binding on such Holder and upon all future
Holders of this Certificate and of any Certificate issued upon the transfer
hereof or in exchange therefor or in lieu hereof whether or not notation of such
consent is made upon this Certificate. The Agreement also permits the amendment
thereof, in certain limited circumstances, without the consent of the Holders of
any of the Certificates, but with the consent of the NIMS Insurer, if any (which
consent shall not be unreasonably withheld).

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Trustee upon surrender of this

                                     A-12-5

<PAGE>

Certificate for registration of transfer at the office or agency maintained by
the Trustee accompanied by a written instrument of transfer in form satisfactory
to the Trustee and the Certificate Registrar duly executed by the holder hereof
or such holder's attorney duly authorized in writing, and thereupon one or more
new Certificates of the same Class in authorized denominations and evidencing
the same aggregate Percentage Interest in the Trust will be issued to the
designated transferee or transferees.

         The Certificates are issuable only as registered Certificates in
denominations specified in the Agreement. As provided in the Agreement and
subject to certain limitations therein set forth, Certificates are exchangeable
for new Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest, as requested by the Holder
surrendering the same.

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

         The Master Servicer, the Depositor, the Trustee, the Certificate
Registrar, any Paying Agent and any agent of the Master Servicer, the Depositor,
the Guarantor, the NIMS Insurer, if any, the Certificate Registrar, any Paying
Agent or the Trustee may treat the Person, including a Depository, in whose name
any Certificate is registered as the owner hereof for all purposes of, and none
of the Master Servicer, the Trust, the Guarantor, the NIMS Insurer, if any, the
Trustee nor any agent of any of them shall be affected by notice to the
contrary.

         The Master Servicer or the NIMS Insurer, if any, may, at its option, on
the Optional Termination Date purchase, on such date, all of the outstanding
Mortgage Loans and REO Properties in the Mortgage Pool at a price equal to the
Termination Price. The obligations and responsibilities created by the Agreement
will terminate upon notice to the Trustee upon the later (A) the payment in full
of all amounts owing to the Guarantor unless the Guarantor shall otherwise
consent and (B) the earliest of (i) the final payment or other liquidation of
the last Mortgage Loan in the Trust, (ii) the optional purchase by the Master
Servicer or the NIMS Insurer, if any, of the Mortgage Loans and (iii) the
Distribution Date in [DATE]. In no event, however, will the trust created by the
Agreement continue beyond the expiration of 21 years from the death of the last
survivor of the descendants living at the date of the Agreement of a certain
person named in the Agreement.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                     A-12-6

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
                   (Please print or typewrite name and address
                     including postal zip code of assignee)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:

Dated:_______________________

                                         _______________________________________
                                         Signature by or on behalf of assignor

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to for the account of _____________________________,
account number _______________, or, if mailed by check, to ____________________.
Applicable statements should be mailed to __________________________________.

         This information is provided by the assignee named above, or as its
agent.

<PAGE>

                                   EXHIBIT A-8

                          FORM OF CLASS R CERTIFICATES

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "RESIDUAL
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT
REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED
FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

THIS CERTIFICATE HAS NO PRINCIPAL BALANCE, DOES NOT BEAR INTEREST AND WILL NOT
RECEIVE ANY DISTRIBUTIONS EXCEPT AS PROVIDED HEREIN.

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
PROPOSED TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN ACCORDANCE
WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
PROCEDURES DESCRIBED HEREIN.

Certificate No. ___

Percentage Interest:       _______%

                                     A-13-1

<PAGE>

                      AMERIQUEST MORTGAGE SECURITIES INC.,
                                  Series 2002-D
                                     Class R

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above- referenced Class with respect to the
         Trust

                AMERIQUEST MORTGAGE SECURITIES INC., as Depositor

         This Certificate does not evidence an obligation of, or an interest in,
and is not guaranteed by the Depositor, the Seller, the Originator, the Master
Servicer or the Trustee referred to below or any of their respective affiliates.

         This certifies that______________________________________ is the
registered owner of the Percentage Interest evidenced by this Certificate
specified above in the interest represented by all Certificates of the Class to
which this Certificate belongs in a Trust consisting primarily of the Mortgage
Loans deposited by Ameriquest Mortgage Securities Inc. (the "Depositor"). The
Trust was created pursuant to a Pooling and Servicing Agreement dated as of
December 1, 2002 (the "Agreement") among the Depositor, Ameriquest Mortgage
Company, as originator and master servicer (the "Originator" and "Master
Servicer"), the Federal Home Loan Mortgage Corporation, as guarantor of the
Class A Certificates and the Class S Certificates (the "Guarantor") and Deutsche
Bank National Trust Company, a national banking association, as trustee (the
"Trustee"). To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound. In the event of a conflict
between this Certificate and the Agreement, the Agreement controls.

         This Certificate does not have a principal balance or pass-through rate
and will be entitled to distributions only to the extent set forth in the
Agreement. In addition, any distribution of the proceeds of any remaining assets
of the Trust will be made only upon presentment and surrender of this
Certificate at the office or agency of the Trustee specified in the notice to
Certificateholders of such distribution.

         No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the Act
and any applicable state securities laws or is exempt from the registration
requirements under said Act and such laws. In the event that a transfer is to be
made in reliance upon an exemption from the Act and such laws, in order to
assure compliance with the Act and such laws, the Certificateholder desiring to
effect such transfer and such Certificateholder's prospective transferee shall
each certify to the Trustee and the Depositor in writing the facts surrounding
the transfer. In the event of a transfer, there shall be delivered to the
Trustee and the Depositor (i) an Opinion of Counsel that such transfer may be
made pursuant to an exemption from the Act, which Opinion of Counsel shall not
be obtained at the expense of the Trustee or the Depositor; or (ii) a transferor
certificate by the transferor and an investment letter shall be executed by the
transferee. The Holder hereof desiring to effect such transfer shall, and does

                                     A-13-2

<PAGE>

hereby agree to, indemnify the Trustee and the Depositor against any liability
that may result if the transfer is not so exempt or is not made in accordance
with such federal and state laws.

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(b) of the Agreement.

         Each Holder of this Certificate will be deemed to have agreed to be
bound by the restrictions of the Agreement, including but not limited to the
restrictions that (i) each person holding or acquiring any Ownership Interest in
this Certificate must be a Permitted Transferee, (ii) no Ownership Interest in
this Certificate may be transferred without delivery to the Trustee of (a) a
transfer affidavit of the proposed transferee and (b) a transfer certificate of
the transferor, each of such documents to be in the form described in the
Agreement, (iii) each person holding or acquiring any Ownership Interest in this
Certificate must agree to require a transfer affidavit and to deliver a transfer
certificate to the Trustee as required pursuant to the Agreement, (iv) each
person holding or acquiring an Ownership Interest in this Certificate must agree
not to transfer an Ownership Interest in this Certificate if it has actual
knowledge that the proposed transferee is not a Permitted Transferee and (v) any
attempted or purported transfer of any Ownership Interest in this Certificate in
violation of such restrictions will be absolutely null and void and will vest no
rights in the purported transferee. The Trustee will, pursuant to the Agreement,
provide the Internal Revenue Service and any pertinent persons with the
information needed to compute the tax imposed under the applicable tax laws on
transfers of residual interests to disqualified organizations, if any person
other than a Permitted Transferee acquires an Ownership Interest in this
Certificate in violation of the restrictions mentioned above.

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized officer of the Trustee.

                                      * * *

                                     A-13-3

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: December __, 2002

                                   DEUTSCHE BANK NATIONAL TRUST
                                   COMPANY, not in its individual capacity, but
                                   solely as Trustee

                                   By:_________________________________________

This is one of the Class of the Certificates
referenced in the within-mentioned Agreement

By:________________________________________
      Authorized Signatory of
      Deutsche Bank National Trust Company,
      as Trustee

<PAGE>

                        [Reverse of Class R Certificate]

                      AMERIQUEST MORTGAGE SECURITIES INC.,
                                  Series 2002-D

         This Certificate is one of a duly authorized issue of Certificates
designated as Ameriquest Mortgage Securities Inc., Series 2002-D (herein
collectively called the "Certificates"), and representing a beneficial ownership
interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day then the
first Business Day following such Distribution Date (the "Distribution Date"),
commencing on the first Distribution Date specified on the face hereof, to the
Person in whose name this Certificate is registered at the close of business on
the applicable Record Date in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be distributed
to Holders of Certificates of the Class to which this Certificate belongs on
such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by wire transfer or
otherwise, as set forth in the Agreement. The final distribution on each
Certificate will be made in like manner, but only upon presentment and surrender
of such Certificate at the office or agency of the Trustee specified in the
notice to Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any
time, with the consent of the Guarantor and the NIMS Insurer, if any (which
consent shall not be unreasonably withheld), by the Depositor, the Originator,
the Master Servicer and the Trustee and of Holders of the requisite percentage
of the Percentage Interests of each Class of Certificates affected by such
amendment, as specified in the Agreement. Any such consent by the Holder of this
Certificate shall be conclusive and binding on such Holder and upon all future
Holders of this Certificate and of any Certificate issued upon the transfer
hereof or in exchange therefor or in lieu hereof whether or not notation of such
consent is made upon this Certificate. The Agreement also permits the amendment
thereof, in certain limited circumstances, without the consent of the Holders of
any of the Certificates, but with the consent of the NIMS Insurer, if any (which
consent shall not be unreasonably withheld).

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Trustee upon surrender of this

                                     A-13-5

<PAGE>

Certificate for registration of transfer at the office or agency maintained by
the Trustee accompanied by a written instrument of transfer in form satisfactory
to the Trustee and the Certificate Registrar duly executed by the holder hereof
or such holder's attorney duly authorized in writing, and thereupon one or more
new Certificates of the same Class in authorized denominations and evidencing
the same aggregate Percentage Interest in the Trust will be issued to the
designated transferee or transferees.

         The Certificates are issuable only as registered Certificates in
denominations specified in the Agreement. As provided in the Agreement and
subject to certain limitations therein set forth, Certificates are exchangeable
for new Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest, as requested by the Holder
surrendering the same.

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

         The Master Servicer, the Depositor, the Trustee, the Certificate
Registrar, any Paying Agent and any agent of the Master Servicer, the Depositor,
the Guarantor, the NIMS Insurer, if any, the Certificate Registrar, any Paying
Agent or the Trustee may treat the Person, including a Depository, in whose name
any Certificate is registered as the owner hereof for all purposes of, and none
of the Master Servicer, the Trust, the Guarantor, the NIMS Insurer, if any, the
Trustee nor any agent of any of them shall be affected by notice to the
contrary.

         The Master Servicer or the NIMS Insurer, if any, may, at its option, on
the Optional Termination Date purchase, on such date, all of the outstanding
Mortgage Loans and REO Properties in the Mortgage Pool at a price equal to the
Termination Price. The obligations and responsibilities created by the Agreement
will terminate upon notice to the Trustee upon the later (A) the payment in full
of all amounts owing to the Guarantor unless the Guarantor shall otherwise
consent and (B) the earliest of (i) the final payment or other liquidation of
the last Mortgage Loan in the Trust, (ii) the optional purchase by the Master
Servicer or the NIMS Insurer, if any, of the Mortgage Loans and (iii) the
Distribution Date in [DATE]. In no event, however, will the trust created by the
Agreement continue beyond the expiration of 21 years from the death of the last
survivor of the descendants living at the date of the Agreement of a certain
person named in the Agreement.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                     A-13-6

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
                   (Please print or typewrite name and address
                     including postal zip code of assignee)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:

Dated:_______________________

                                         _______________________________________
                                         Signature by or on behalf of assignor

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to for the account of _____________________________,
account number _______________, or, if mailed by check, to ____________________.
Applicable statements should be mailed to __________________________________.

         This information is provided by the assignee named above, or as its
agent.

<PAGE>

                                    EXHIBIT B

                                   [RESERVED]

                                       B-1

<PAGE>

                                    EXHIBIT C

                        REQUEST FOR RELEASE OF DOCUMENTS

         To:      Deutsche Bank National Trust Company,
                  1761 East St. Andrew Place
                  Santa Ana, CA 92705-4934
                  Attn: Trust Administration - AQ020D

Re:               Pooling and Servicing Agreement dated as of December 1, 2002
                  among Ameriquest Mortgage Securities Inc., as Depositor,
                  Ameriquest Mortgage Company, as Originator and Master
                  Servicer, the Federal Home Loan Mortgage Corporation, as
                  Guarantor and Deutsche Bank National Trust Company, as Trustee

                  In connection with the administration of the Mortgage Loans
                  held by you as Trustee pursuant to the above-captioned Trustee
                  Agreement, we request the release, and hereby acknowledge
                  receipt, of the Trustee's Mortgage File for the Mortgage Loan
                  described below, for the reason indicated.

Mortgage Loan Number:
--------------------

Mortgagor Name. Address & Zip Code:
----------------------------------

Reason for Requesting Documents (check one):
-------------------------------------------

_________1.  Mortgage Paid in Full

_________2.  Foreclosure

_________3.  Substitution

_________4.  Other Liquidation (Repurchases, etc.)

_________5.  Nonliquidation                          Reason:__________________

Address to which Trustee should deliver
the Trustee's Mortgage File:
________________________________________________________________________________
________________________________________________________________________________

                                       C-1

<PAGE>

                                                By:_____________________________
                                                      (authorized signer)

                                                Issuer:_________________________
                                                Address:________________________
                                                Date:___________________________

Trustee
-------

Deutsche Bank National Trust Company

         Please acknowledge the execution of the above request by your signature
and date below:

         ________________________                    ________________________
         Signature                                   Date

         Documents returned to Trustee:

         ________________________                    ________________________
         Trustee                                     Date

                                       C-2

<PAGE>

                                   EXHIBIT D-1

                     FORM OF TRUSTEE'S INITIAL CERTIFICATION

                                                    __________________
                                                          [Date]

Ameriquest Mortgage Securities Inc.         Ameriquest Mortgage Company
1100 Town & Country Road, Suite 1100        1100 Town & Country Road, Suite 1100
Orange, California 92868-4653               Orange, California 92868-4653

Freddie Mac
8200 Jones Branch Drive
McLean, Virginia 22102

         Re:      Pooling and Servicing Agreement (the "POOLING AND SERVICING
                  AGREEMENT"), dated as of December 1, 2002 among Ameriquest
                  Mortgage Securities Inc., as Depositor, Ameriquest Mortgage
                  Company, as Originator and Master Servicer, the Federal Home
                  Loan Mortgage Corporation, as Guarantor and Deutsche Bank
                  National Trust Company, as Trustee with respect to Ameriquest
                  Mortgage Securities Inc., Series 2002-D
                  -------------------------------------------------------------

Ladies and Gentlemen:

         In accordance with Section 2.02 of the Pooling and Servicing Agreement,
subject to review of the contents thereof, the undersigned, as Trustee, hereby
certifies that it (or the Custodian) has received the documents listed in
Section 2.01 of the Pooling and Servicing Agreement for each Mortgage File
pertaining to each Mortgage Loan listed on the Mortgage Loan Schedule, to the
Pooling and Servicing Agreement, and as to each Mortgage Loan listed in the
Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any
Mortgage Loan specifically identified in the exception report annexed thereto as
not being covered by such certification), (i) all documents constituting part of
such Mortgage File (other than such documents described in Section 2.01(vi),
unless applicable) required to be delivered to it pursuant to the Pooling and
Servicing Agreement are in its possession, (ii) such documents have been
reviewed by it or the Custodian and are not mutilated, torn or defaced unless
initialed by the related Mortgagor and relate to such Mortgage Loan and (iii)
based on its or the Custodian's examination and only as to the foregoing, the
information set forth in the Mortgage Loan Schedule that corresponds to items
(1), (2), (3), (7), (8), (9), (10), (18) and (20) of the Mortgage Loan Schedule
accurately reflects information set forth in the Mortgage File.
         Capitalized words and phrases used herein and not otherwise defined
herein shall have the respective meanings assigned to them in the Pooling and
Servicing Agreement.

                                     DEUTSCHE BANK NATIONAL TRUST COMPANY, as
                                     Trustee

                                     By:___________________________________
                                     Name:
                                     Title:

                                      D-1-1

<PAGE>

                                   EXHIBIT D-2

                      FORM OF TRUSTEE'S FINAL CERTIFICATION

                                                      __________________________
                                                                [Date]

Ameriquest Mortgage Securities Inc.         Ameriquest Mortgage Company
1100 Town & Country Road, Suite 1100        1100 Town & Country Road, Suite 1100
Orange, California 92868-4653               Orange, California 92868-4653

Freddie Mac
8200 Jones Branch Drive
McLean, Virginia 22102

         Re:      Pooling and Servicing Agreement (the "POOLING AND SERVICING
                  AGREEMENT"), dated as of December 1, 2002 among Ameriquest
                  Mortgage Securities Inc., as Depositor, Ameriquest Mortgage
                  Company, as Originator and Master Servicer, the Federal Home
                  Loan Mortgage Corporation, as Guarantor and Deutsche Bank
                  National Trust Company, as Trustee with respect to Ameriquest
                  Mortgage Securities Inc., Series 2002-D
                  -------------------------------------------------------------

Ladies and Gentlemen:

         In accordance with Section 2.02 of the Pooling and Servicing Agreement,
the undersigned, as Trustee, hereby certifies that as to each Mortgage Loan
listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full
or listed on Schedule I hereto) it (or the Custodian) has received the
applicable documents listed in Section 2.01 of the Pooling and Servicing
Agreement.

         The undersigned hereby certifies that as to each Mortgage Loan
identified on the Mortgage Loan Schedule, other than any Mortgage Loan listed on
Schedule I hereto, it has reviewed the documents listed above and has determined
that each such document appears to be complete and, based on an examination of
such documents, the information set forth in the Mortgage Loan Schedule is
correct.

         Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement. This
Certificate is qualified in all respects by the terms of said Pooling and
Servicing Agreement.

                                     DEUTSCHE BANK NATIONAL TRUST COMPANY, as
                                     Trustee

                                     By:_____________________________________
                                     Name:
                                     Title:

                                      D-2-2

<PAGE>

                                   EXHIBIT D-3

                        FORM OF RECEIPT OF MORTGAGE NOTE

Ameriquest Mortgage Securities Inc.
1100 Town & Country Road, Suite 1100
Orange, California 92868-4653

                  Re:      Ameriquest Mortgage Securities Inc., Series 2002-D
                           --------------------------------------------------

Ladies and Gentlemen:

         Pursuant to Section 2.01 of the Pooling and Servicing Agreement, dated
as of December 1, 2002, among Ameriquest Mortgage Securities Inc. as Depositor,
Ameriquest Mortgage Company, as Originator (the "Originator' and "Master
Servicer"), the Federal Home Loan Mortgage Corporation, as Guarantor and
Deutsche Bank National Trust Company, as Trustee (the "Trustee"), we hereby
acknowledge the receipt of the original Mortgage Note for each Mortgage Loan
with any exceptions thereto listed on Exhibit 2.

Capitalized terms used but not defined herein shall have the meanings assigned
to them in the Pooling and Servicing Agreement.

                                     DEUTSCHE BANK NATIONAL TRUST COMPANY, as
                                     Trustee

                                     By:_____________________________________
                                     Name:
                                     Title:

                                      D-3-1

<PAGE>

                                    EXHIBIT E

                    FORM OF MORTGAGE LOAN PURCHASE AGREEMENT

                                       E-1

<PAGE>

                        MORTGAGE LOAN PURCHASE AGREEMENT

                  This is a Mortgage Loan Purchase Agreement (the "Agreement"),
dated November 22, 2002, between Ameriquest Mortgage Company, a Delaware
corporation (the "Seller") and Ameriquest Mortgage Securities Inc., a Delaware
corporation (the "Purchaser").

                                   WITNESSETH
                                   ----------

                  WHEREAS, the Seller is the owner of (i) the notes or other
evidence of indebtedness (the "Mortgage Notes") so indicated on Schedule I
hereto referred to below, and the other documents or instruments constituting
the Mortgage File (collectively, the "Mortgage Loans"); and

                  WHEREAS, the Seller, as of the date hereof, owns the mortgages
(the "Mortgages") on the properties (the "Mortgaged Properties") securing such
Mortgage Loans, including rights to (a) any property acquired by foreclosure or
deed in lieu of foreclosure or otherwise and (b) the proceeds of any insurance
policies covering the Mortgage Loans or the Mortgaged Properties or the obligors
on the Mortgage Loans; and

                  WHEREAS, the parties hereto desire that the Seller sell the
Mortgage Loans to the Purchaser pursuant to the terms of this Agreement; and

                  WHEREAS, pursuant to the terms of a Pooling and Servicing
Agreement dated as of December 1, 2002 (the "Pooling and Servicing Agreement")
among the Purchaser as depositor, the Seller as seller and master servicer, the
Federal Home Loan Mortgage Corporation, as guarantor of the Class A Certificates
and the Class S Certificates and Deutsche Bank National Trust Company as trustee
(the "Trustee"), the Purchaser will convey the Mortgage Loans to Ameriquest
Mortgage Securities Inc., Series 2002-D (the "Trust"); and

                  WHEREAS, the Seller is obligated, in connection with the
transactions contemplated by this Agreement, to make certain representations,
warranties and covenants with respect to itself and the Mortgage Loans.

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

                                   ARTICLE I.

                                   DEFINITIONS

         Section 1.01 DEFINITIONS. All capitalized terms used but not defined
herein shall have the meanings assigned thereto in the Pooling and Servicing
Agreement.

                                        1

<PAGE>

                                   ARTICLE II.

               SALE OF MORTGAGE LOANS; PAYMENT OF PURCHASE PRICE

                  Section 2.01 SALE OF MORTGAGE LOANS.

                  (a) The Seller, concurrently with the execution and delivery
of this Agreement, does hereby sell, assign, set over, and otherwise convey to
the Purchaser, without recourse, (i) all of its right, title and interest in and
to each Mortgage Loan, including the related Cut-off Date Principal Balance, all
interest accruing thereon on or after the Cut-off Date and all collections in
respect of interest and principal due after the Cut-off Date; (ii) property
which secured such Mortgage Loan and which has been acquired by foreclosure or
deed in lieu of foreclosure; (iii) its interest in any insurance policies in
respect of the Mortgage Loans and (iv) all proceeds of any of the foregoing.

                  (b) In connection with the transactions contemplated by
Section 2.08 of the Pooling and Servicing Agreement, the Seller hereby agrees
that the Depositor shall be under no obligation to purchase any Subsequent
Mortgage Loans unless (i) the conditions precedent contained in Section 2.08 of
the Pooling and Servicing Agreement and the Subsequent Transfer Instrument,
substantially in the form of Exhibit P thereto, are satisfied and (ii) each
Subsequent Mortgage Loan satisfies the representations and warranties contained
in Section 3.01 of this Agreement. The sale of Subsequent Mortgage Loans by the
Seller to the Depositor shall be effected in accordance with the terms of
Section 2.08 of the Pooling and Servicing Agreement pursuant to a Subsequent
Mortgage Loan Purchase Agreement substantially in the form of this Agreement.

                  Section 2.02 OBLIGATIONS OF SELLER UPON SALE. In connection
with any transfer pursuant to Section 2.01 hereof, the Seller agrees, at its own
expense on or prior to the Closing Date, (i) to cause its books and records to
indicate that the Mortgage Loans have been sold to the Purchaser pursuant to
this Agreement and (ii) to deliver to the Purchaser, the Guarantor and the
Trustee a computer file containing a true and complete list of all such Mortgage
Loans specifying for each such Mortgage Loan, as of the Cut-off Date, (A) its
account number and (B) the Cut-off Date Principal Balance. Such file, which
forms a part of Exhibit B to the Pooling and Servicing Agreement, shall also be
marked as Schedule I to this Agreement and is hereby incorporated into and made
a part of this Agreement.

                  In connection with any conveyance by the Seller, the Seller
shall on behalf of the Purchaser deliver to, and deposit with the Trustee, as
assignee of the Purchaser, on or before the Closing Date, the following
documents or instruments with respect to each Mortgage Loan:

                  (a) the original Mortgage Note, bearing all intervening
         endorsements showing a complete chain of endorsement from the
         originator to the last endorsee, endorsed either (A) in blank, without
         recourse or (B) in the following form: "Pay to the order of Deutsche
         Bank National Trust Company, as Trustee for registered Holders of
         Ameriquest Mortgage Securities Inc., Series 2002-D, without recourse",
         or with respect to any lost Mortgage Note, an original Lost Note
         Affidavit; PROVIDED, HOWEVER, that such substitutions of Lost Note
         Affidavits for original Mortgage Notes may occur only with respect to
         Mortgage Loans, the

                                        2

<PAGE>

         aggregate Cut-off Date Principal Balance of which is less than or equal
         to 1.00% of the Pool Balance as of the Cut-off Date;

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

                  (c) an original Assignment, in form and substance acceptable
         for recording. The Mortgage shall be assigned either (A) in blank,
         without recourse, or (B) to "Deutsche Bank National Trust Company, as
         Trustee for registered Holders of Ameriquest Mortgage Securities Inc.,
         Series 2002-D, without recourse";

                  (d) an original copy of any intervening Assignment showing a
         complete chain of Assignments from the applicable originator to the
         last endorsee with evidence of recording thereon, or the original
         unrecorded intervening Assignment, in form and substance acceptable for
         recording;

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

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

                  The Seller hereby confirms to the Purchaser and the Trustee
that it has caused the appropriate entries to be made in its general accounting
records, to indicate that such Mortgage Loans have been transferred to the
Trustee and constitute part of the Trust in accordance with the terms of the
Pooling and Servicing Agreement.

                  If any of the documents referred to in Section 2.02(b), (c) or
(d) above has as of the Closing Date been submitted for recording but either (x)
has not been returned from the applicable public recording office or (y) has
been lost or such public recording office has retained the original of such
document, the obligations of the Seller to deliver such documents shall be
deemed to be satisfied upon (1) delivery to the Trustee or the Custodian no
later than the Closing Date of a copy of each such document certified by the
Seller in the case of (x) above or the applicable public recording office in the
case of (y) above to be a true and complete copy of the original that was
submitted for recording and (2) if such copy is certified by the Seller,
delivery to the Trustee or the Custodian, promptly upon receipt thereof of
either the original or a copy of such document certified by the applicable
public recording office to be a true and complete copy of the original. If the
original lender's title insurance policy, or a certified copy thereof, was not
delivered pursuant to Section 2.02(e) above, the Seller shall deliver or cause
to be delivered to the Trustee or the Custodian, the original or a copy of a
written commitment or interim binder or preliminary report of title issued by
the title insurance or escrow company, with the original or a certified copy
thereof to be delivered to the Trustee or the Custodian, promptly upon receipt
thereof. The Seller shall deliver or cause to

                                        3

<PAGE>

be delivered to the Trustee or the Custodian promptly upon receipt thereof any
other documents constituting a part of a Mortgage File received with respect to
any Mortgage Loan, including, but not limited to, any original documents
evidencing an assumption or modification of any Mortgage Loan.

                  The Seller shall promptly (and in no event later than thirty
(30) Business Days, subject to extension upon a mutual agreement among the
Seller, the Master Servicer, the Trustee and the Guarantor, following the later
of (i) the Closing Date, (ii) the date on which the Seller receives the original
Assignment from the Custodian and (iii) the date on which the Seller receives
the related Mortgage recordation information from the applicable recorder's
office) submit or cause to be submitted for recording, at no expense to the
Purchaser, in the appropriate office for real property records, each Assignment
referred to in Sections 2.02(c) and (d) above and shall execute each original
Assignment referred to in section 2.02(c) above in the following form: "Deutsche
Bank National Trust Company, as Trustee for registered Holders of Ameriquest
Mortgage Securities Inc., Series 2002-D, without recourse." In the event that
any such Assignment is lost or returned unrecorded because of a defect therein,
the Seller shall promptly prepare or cause to be prepared a substitute
Assignment or cure or cause to be cured such defect, as the case may be, and
thereafter cause each such Assignment to be duly recorded.

                  Notwithstanding the foregoing, however, for administrative
convenience and facilitation of servicing and to reduce closing costs, the
Assignments of the Mortgages shall not be required to be completed and submitted
for recording with respect to any Mortgage Loan only if the NIMS Insurer, the
Guarantor, the Trustee and each Rating Agency has received an Opinion of
Counsel, satisfactory in form and substance to the Trustee, the NIMS Insurer and
the Guarantor on or before the Closing Date, to the effect that the recordation
of such Assignment is not necessary to protect the Purchaser's interest in the
related Mortgage Loan; PROVIDED, FURTHER, HOWEVER, notwithstanding the delivery
of any Opinion of Counsel, each Assignment shall be submitted for recording by
the Seller in the manner described above, at no expense to the Purchaser, upon
the earliest to occur of: (i) direction by Holders of Certificates entitled to
at least 25% of the Voting Rights, (ii) the occurrence of a Master Servicer
Event of Termination, (iii) the occurrence of a bankruptcy, insolvency or
foreclosure relating to the Seller, (iv) the occurrence of a servicing transfer
as described in Section 7.02 of the Pooling and Servicing Agreement and (v) if
the Seller is not the Master Servicer and with respect to any one Assignment,
the occurrence of a bankruptcy of the Mortgagor under the related Mortgage or a
foreclosure of the related Mortgage.

                  In the event that any Mortgage Note is endorsed in blank as of
the Closing Date, promptly following the Closing Date and in no event later than
45 days after the Closing Date, the Seller shall cause to be completed such
endorsements "Pay to the order of Deutsche Bank National Trust Company, as
Trustee for registered Holders of Ameriquest Mortgage Securities Inc., Series
2002-D, without recourse."

                  Upon discovery or receipt of notice of any materially
defective document in, or that a document is missing from, a Mortgage File, the
Seller shall have 90 days to cure such defect or deliver such missing document
to the Purchaser. If the Seller does not cure such defect or deliver such
missing document within such time period, the Seller shall either repurchase or
substitute for such Mortgage Loan in accordance with Section 2.03 of the Pooling
and Servicing Agreement.

                                        4

<PAGE>

                  The Purchaser hereby acknowledges its acceptance of all right,
title and interest to the Mortgage Loans and other property, now existing and
hereafter created, conveyed to it pursuant to Section 2.01.

                  The parties hereto intend that the transaction set forth
herein be a sale by the Seller to the Purchaser of all the Seller's right, title
and interest in and to the Mortgage Loans and other property described above. In
the event the transaction set forth herein is deemed not to be a sale, the
Seller hereby grants to the Purchaser a security interest in all of the Seller's
right, title and interest in, to and under the Mortgage Loans and other property
described above, whether now existing or hereafter created, to secure all of the
Seller's obligations hereunder; and this Agreement shall constitute a security
agreement under applicable law.

                  Section 2.03 PAYMENT OF PURCHASE PRICE FOR THE MORTGAGE LOANS.

                  In consideration of the sale of the Mortgage Loans from the
Seller to the Purchaser on the Closing Date, the Purchaser agrees to (i) pay to
or upon the order of the Seller in immediately available funds an amount (the
"Purchase Price") equal to the net sale proceeds of the Class A Certificates,
the Class S Certificates and the Mezzanine Certificates and (ii) deliver to
Ameriquest Securities L.L.C., upon the order of the Seller, the Class CE
Certificates, the Class P Certificates and the Class R Certificates (the
"Ameriquest L.L.C. Certificates"). The Seller shall pay, and be billed directly
for, all expenses incurred by the Purchaser in connection with the issuance of
the Certificates, including, without limitation, printing fees incurred in
connection with the Information Circular and the Prospectus Supplement relating
to the Certificates, fees and expenses of Purchaser's counsel, accountant's fees
and expenses and the fees and expenses of the Trustee and other out-of- pocket
costs, if any.

                                  ARTICLE III.

               REPRESENTATIONS AND WARRANTIES; REMEDIES FOR BREACH

                  Section 3.01 SELLER REPRESENTATIONS AND WARRANTIES RELATING TO
THE MORTGAGE LOANS. The Seller hereby makes representations and warranties set
forth in Exhibit A to the Purchaser with respect to the Mortgage Loans as of the
Closing Date or as of such other date specifically provided herein.

                  Section 3.02 SELLER REPRESENTATIONS AND WARRANTIES RELATING TO
THE SELLER. The Seller represents, warrants and covenants to the Purchaser as of
the Closing Date or as of such other date specifically provided herein:

                  (a) The Seller is a corporation duly organized, validly
         existing and in good standing under the laws of the State of Delaware
         and is duly authorized and qualified to transact any and all business
         contemplated by this Agreement to be conducted by the Seller in any
         state in which a Mortgaged Property is located or is otherwise not
         required under applicable law to effect such qualification and, in any
         event, is in compliance with the doing business laws of any such State,
         to the extent necessary to ensure its ability to enforce each

                                        5

<PAGE>

         Mortgage Loan and to service the Mortgage Loans in accordance with the
         terms of the Pooling and Servicing Agreement;

                  (b) The Seller had the full corporate power and authority to
         originate, hold and sell each Mortgage Loan and has the full corporate
         power and authority to service each Mortgage Loan, and to execute,
         deliver and perform, and to enter into and consummate the transactions
         contemplated by this Agreement and has duly authorized by all necessary
         corporate action on the part of the Seller the execution, delivery and
         performance of this Agreement; and this Agreement, assuming the due
         authorization, execution and delivery thereof by the Purchaser,
         constitutes a legal, valid and binding obligation of the Seller,
         enforceable against the Seller in accordance with its terms, except to
         the extent that (a) the enforceability thereof may be limited by
         bankruptcy, insolvency, moratorium, receivership and other similar laws
         relating to creditors' rights generally and (b) the remedy of specific
         performance and injunctive and other forms of equitable relief may be
         subject to the equitable defenses and to the discretion of the court
         before which any proceeding therefor may be brought;

                  (c) The execution and delivery of this Agreement by the
         Seller, the servicing of the Mortgage Loans by the Seller under the
         Pooling and Servicing Agreement, the consummation of any of the
         transactions herein contemplated, and its performance of and compliance
         with the terms hereof are in the ordinary course of business of the
         Seller and will not (A) result in a breach of any term or provision of
         the charter or by-laws of the Seller or (B) conflict with, result in a
         breach, violation or acceleration of, or result in a default under, the
         terms of any other material agreement or instrument to which the Seller
         is a party or by which it may be bound or which may be applicable to
         its assets, or any statute, order or regulation applicable to the
         Seller of any court, regulatory body, administrative agency or
         governmental body having jurisdiction over the Seller or its assets;
         and the Seller is not a party to, bound by, or in breach or violation
         of any indenture or other agreement or instrument, or subject to or in
         violation of any statute, order or regulation of any court, regulatory
         body, administrative agency or governmental body having jurisdiction
         over it or its assets, which materially and adversely affects or would
         in the future materially and adversely affect, (x) the ability of the
         Seller to perform its obligations under this Agreement or (y) the
         business, operations, financial condition, properties or assets of the
         Seller taken as a whole;

                  (d) The Seller holds all necessary licenses, certificates and
         permits from all governmental authorities necessary for conducting its
         business as it is presently conducted. It is not required to obtain the
         consent of any other party or any consent, license, approval or
         authorization from, or registration or declaration with, any
         governmental authority, bureau or agency in connection with the
         execution, delivery, performance, validity or enforceability of this
         Agreement, except for such consents, licenses, approvals or
         authorizations, or registrations or declarations as shall have been
         obtained or filed, as the case may be, prior to the Closing Date.

                  (e) The Seller is an approved Seller/Servicer for Fannie Mae
         or Freddie Mac in good standing and is a HUD approved mortgagee
         pursuant to Section 203 and Section 211

                                        6

<PAGE>

         of the National Housing Act. No event has occurred, including but not
         limited to a change in insurance coverage, which would make the Seller
         unable to comply with HUD eligibility requirements or which would
         require notification to HUD;

                  (f) Except as otherwise disclosed in the Information Circular
         and the Prospectus Supplement, no litigation is pending against the
         Seller that would materially and adversely affect the execution,
         delivery, validity or enforceability of this Agreement or the ability
         of the Seller to service the Mortgage Loans or to perform any of its
         other obligations hereunder in accordance with the terms hereof;

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

                  (h) The consummation of the transactions contemplated by this
         Agreement are in the ordinary course of business of the Seller. The
         sale of the Mortgage Loans was in the ordinary course of business of
         the Seller and the assignment and conveyance of the Mortgage Notes and
         the Mortgages by the Seller are not subject to the bulk transfer or any
         similar statutory provisions;

                  (i) The information delivered by the Seller to the Purchaser
         with respect to the Seller's loan loss, foreclosure and delinquency
         experience on mortgage loans underwritten to similar standards as the
         Mortgage Loans and covering mortgaged properties similar to the
         Mortgaged Properties, is true and correct in all material respects as
         of the date of such report;

                  (j) This Agreement does not contain any untrue statement of
         material fact or omit to state a material fact necessary to make the
         statements contained herein not misleading. The written statements,
         reports and other documents prepared and furnished or to be prepared
         and furnished by the Seller pursuant to this Agreement or in connection
         with the transactions contemplated hereby taken in the aggregate do not
         contain any untrue statement of material fact or omit to state a
         material fact necessary to make the statements contained therein not
         misleading;

                  (k) The Seller has not transferred the Mortgage Loans with any
         intent to hinder, delay or defraud any of its creditors;

                  (l) Immediately prior to the payment of the Purchase Price for
         each Mortgage Loan, the Seller was the owner of the related Mortgage
         and the indebtedness evidenced by the related Mortgage Note and upon
         the payment of the Purchase Price by the Purchaser, in the event that
         the Seller retains record title, the Seller shall retain such record
         title to each Mortgage, each related Mortgage Note and the related
         Mortgage Files with respect thereto in trust for the Purchaser as the
         owner thereof;

                  (m) The Seller acquired title to the Mortgage Loans in good
         faith, and except with respect to liens released immediately prior to
         the transfer herein contemplated, each Mortgage Note and related
         Mortgage have not been assigned or pledged and immediately prior to the
         transfer and assignment herein contemplated, the Seller held good,
         marketable

                                        7

<PAGE>

         and indefeasible title to, and was the sole owner and holder of, each
         Mortgage Loan subject to no liens, charges, mortgages, claims,
         participation interests, equities, pledges or security interests of any
         nature, encumbrances or rights of others (collectively, a "Lien"); the
         Seller has full right and authority under all governmental and
         regulatory bodies having jurisdiction over the Seller, subject to no
         interest or participation of, or agreement with, any party, to sell and
         assign the same pursuant to this Agreement; and immediately upon the
         transfers and assignments herein contemplated, the Seller shall have
         transferred all of its right, title and interest in and to each
         Mortgage Loan and the Trustee will hold good, marketable and
         indefeasible title to, and be the sole owner of, each Mortgage Loan
         subject to no Liens;

                  (n) The Seller is not insolvent, nor is the Seller aware of
         any pending insolvency and the Seller will not be made insolvent by the
         transfer of the Mortgage Loans to the Depositor, nor is the Seller
         aware of any pending insolvency of the Depositor; and

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

                  Section 3.03 REMEDIES FOR BREACH OF REPRESENTATIONS AND
WARRANTIES. It is understood and agreed that the representations and warranties
set forth in Subsections 3.01 and 3.02 shall survive the sale of the Mortgage
Loans to the Purchaser and shall inure to the benefit of the Purchaser,
notwithstanding any restrictive or qualified endorsement on any Mortgage Note or
Assignment or the examination or lack of examination of any Mortgage File. With
respect to the representations and warranties contained herein that are made to
the knowledge or the best knowledge of the Seller or as to which the Seller has
no knowledge, if it is discovered that the substance of any such representation
and warranty is inaccurate and the inaccuracy materially and adversely affects
the value of the related Mortgage Loan, or the interest therein of the Purchaser
or the Purchaser's assignee, designee or transferee, then notwithstanding the
Seller's lack of knowledge with respect to the substance of such representation
and warranty being inaccurate at the time the representation and warranty was
made, the Seller shall take such action described in the following paragraphs of
this Section 3.03 in respect of such Mortgage Loan. Upon discovery by either the
Seller or the Purchaser of a breach of any of the foregoing representations and
warranties that materially and adversely affects the value of the Mortgage Loans
or the interest of the Purchaser (or which materially and adversely affects the
interests 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 shall give prompt written notice to the others.

                  Within 90 days of the earlier of either discovery by or notice
to the Seller of any breach of a representation or warranty made by the Seller
that materially and adversely affects the value of a Mortgage Loan or the
Mortgage Loans or the interest therein of the Purchaser, the Seller shall use
its best efforts promptly to cure such breach in all material respects and, if
such breach cannot be cured, the Seller shall, at the Purchaser's option,
repurchase such Mortgage Loan at the

                                        8

<PAGE>

Purchase Price. In the event that a breach shall involve any representation or
warranty set forth in Section 3.02 and such breach cannot be cured within 90
days of the earlier of either discovery by or notice to the Seller of such
breach, all of the Mortgage Loans affected by such breach shall, at the
Purchaser's option, be repurchased by the Seller at the Purchase Price. The
Seller may, assuming the Seller has a Qualified Substitute Mortgage Loan, rather
than repurchase a deficient Mortgage Loan as provided above, remove such
Mortgage Loan and substitute in its place a Qualified Substitute Mortgage Loan
or Loans. If the Seller does not provide a Qualified Substitute Mortgage Loan or
Loans, it shall repurchase the deficient Mortgage Loan. Any repurchase of a
Mortgage Loan(s) pursuant to the foregoing provisions of this Section 3.03 shall
occur on a date designated by the Purchaser and shall be accomplished by deposit
in accordance with Section 2.03 of the Pooling and Servicing Agreement. Any
repurchase or substitution required by this Section shall be made in a manner
consistent with Section 2.03 of the Pooling and Servicing Agreement.

                  At the time of substitution or repurchase of any deficient
Mortgage Loan, the Purchaser and the Seller shall arrange for the reassignment
of the repurchased or substituted Mortgage Loan to the Seller and the delivery
to the Seller of any documents held by the Purchaser relating to the deficient
or repurchased Mortgage Loan. In the event the Purchase Price is deposited in
the Collection Account, the Seller shall, simultaneously with such deposit, give
written notice to the Purchaser that such deposit has taken place. Upon such
repurchase, the Mortgage Loan Schedule shall be amended to reflect the
withdrawal of the repurchased Mortgage Loan from this Agreement.

                  As to any Deleted Mortgage Loan for which the Seller
substitutes a Qualified Substitute Mortgage Loan or Loans, the Seller shall
effect such substitution by delivering to the Purchaser or its designee for such
Qualified Substitute Mortgage Loan or Loans the Mortgage Note, the Mortgage, the
Assignment and such other documents and agreements as are required by the
Pooling and Servicing Agreement, with the Mortgage Note endorsed as required
therein. The Seller shall deposit in the Collection Account the Monthly Payment
less the Servicing Fee due on such Qualified Substitute Mortgage Loan or Loans
in the month following the date of such substitution. Monthly Payments due with
respect to Qualified Substitute Mortgage Loans in the month of substitution will
be retained by the Seller. For the month of substitution, distributions to the
Purchaser will include the Monthly Payment due on such Deleted Mortgage Loan in
the month of substitution, and the Seller shall thereafter be entitled to retain
all amounts subsequently received by the Seller in respect of such Deleted
Mortgage Loan. Upon such substitution, the Qualified Substitute Mortgage Loans
shall be subject to the terms of this Agreement in all respects, and the Seller
shall be deemed to have made with respect to such Qualified Substitute Mortgage
Loan or Loans as of the date of substitution, the covenants, representations and
warranties set forth in Sections 3.01 and 3.02.

                  It is understood and agreed that the representations and
warranties set forth in Section 3.01 shall survive delivery of the respective
Mortgage Files to the Trustee on behalf of the Purchaser.

                  It is understood and agreed that the obligations of the Seller
set forth in Section 3.03 to cure, repurchase and substitute for a defective
Mortgage Loan and to indemnify the Purchaser as provided in Section 5.01
constitute the sole remedies of the Purchaser respecting a missing or defective
document or a breach of the representations and warranties contained in Section
3.01 or 3.02.

                                        9

<PAGE>

                                   ARTICLE IV.

                               SELLER'S COVENANTS

                  Section 4.01 COVENANTS OF THE SELLER. The Seller hereby
covenants that except for the transfer hereunder, the Seller will not sell,
pledge, assign or transfer to any other Person, or grant, create, incur, assume
or suffer to exist any Lien on any Mortgage Loan, or any interest therein; the
Seller will notify the Trustee, as assignee of the Purchaser, of the existence
of any Lien on any Mortgage Loan immediately upon discovery thereof, and the
Seller will defend the right, title and interest of the Trust, as assignee of
the Purchaser, in, to and under the Mortgage Loans, against all claims of third
parties claiming through or under the Seller; PROVIDED, HOWEVER, that nothing in
this Section 4.01 shall prevent or be deemed to prohibit the Seller from
suffering to exist upon any of the Mortgage Loans any Liens for municipal or
other local taxes and other governmental charges if such taxes or governmental
charges shall not at the time be due and payable or if the Seller shall
currently be contesting the validity thereof in good faith by appropriate
proceedings and shall have set aside on its books adequate reserves with respect
thereto.

                                   ARTICLE V.

               INDEMNIFICATION WITH RESPECT TO THE MORTGAGE LOANS

                  Section 5.01 INDEMNIFICATION.

                  (a) The Seller agrees to indemnify and to hold each of the
Purchaser, the Trustee, each of the officers and directors of each such entity
and each person or entity who controls each such entity or person and each
Certificateholder harmless against any and all third party claims, losses,
penalties, fines, forfeitures, legal fees and related costs, judgments, and any
other costs, fees and expenses that the Purchaser, the Trustee, or any such
person or entity and any Certificateholder may sustain in any way (i) related to
the failure of the Seller to perform its duties in compliance with the terms of
this Agreement, (ii) arising from a breach by the Seller of its representations
and warranties in Section 3.01 or 3.02 of this Agreement or (iii) related to the
origination or prior servicing of the Mortgage Loans by reason of any acts,
omissions, or alleged acts or omissions of the Seller or any servicer. The
Seller shall immediately notify the Purchaser, the Trustee and each
Certificateholder if a claim is made by a third party with respect to this
Agreement. The Seller shall assume the defense of any such claim and pay all
expenses in connection therewith, including reasonable counsel fees, and
promptly pay, discharge and satisfy any judgment or decree which may be entered
against the Purchaser, the Trustee, the Guarantor, the NIMs Insurer or any such
person or entity and/or any Certificateholder in respect of such claim.

                  (b) Promptly after receipt by any indemnified party under this
Article V of notice of any claim or the commencement of any third party action,
such indemnified party shall, if a claim in respect thereof is to be made
against any indemnifying party under this Article V, notify the indemnifying
party in writing of the claim or the commencement of that action; PROVIDED,
HOWEVER, that the failure to notify an indemnifying party shall not relieve it
from any liability which it may have under this Article V except to the extent
it has been materially prejudiced by such failure and,

                                       10

<PAGE>

provided further, that the failure to notify any indemnifying party shall not
relieve it from any liability which it may have to any indemnified party
otherwise than under this Article V.

                  If any such claim or action shall be brought against an
indemnified party, and it shall notify the indemnifying party thereof, the
indemnifying party shall be entitled to participate therein and, to the extent
that it wishes, jointly with any other similarly notified indemnifying party, to
assume the defense thereof with counsel reasonably satisfactory to the
indemnified party. After notice from the indemnifying party to the indemnified
party of its election to assume the defense of such claim or action, the
indemnifying party shall not be liable to the indemnified party under this
Article V for any legal or other expenses subsequently incurred by the
indemnified party in connection with the defense thereof other than reasonable
costs of investigation.

                  Any indemnified party shall have the right to employ separate
counsel in any such action and to participate in the defense thereof, but the
fees and expenses of such counsel shall be at the expense of such indemnified
party unless: (i) the employment thereof has been specifically authorized by the
indemnifying party in writing; (ii) such indemnified party shall have been
advised in writing by such counsel that there may be one or more legal defenses
available to it which are different from or additional to those available to the
indemnifying party and in the reasonable judgment of such counsel it is
advisable for such indemnified party to employ separate counsel; or (iii) the
indemnifying party has failed to assume the defense of such action and employ
counsel reasonably satisfactory to the indemnified party, in which case, if such
indemnified party notifies the indemnifying party in writing that it elects to
employ separate counsel at the expense of the indemnifying party, the
indemnifying party shall not have the right to assume the defense of such action
on behalf of such indemnified party, it being understood, however, the
indemnifying party shall not, in connection with any one such action or separate
but substantially similar or related actions in the same jurisdiction arising
out of the same general allegations or circumstances, be liable for the
reasonable fees and expenses of more than one separate firm of attorneys (in
addition to local counsel) at any time for all such indemnified parties, which
firm shall be designated in writing by the Purchaser, if the indemnified parties
under this Article V consist of the Purchaser or by the Seller, if the
indemnified parties under this Article V consist of the Seller.

                  Each indemnified party, as a condition of the indemnity
agreements, shall use its best efforts to cooperate with the indemnifying party
in the defense of any such action or claim. No indemnifying party shall be
liable for any settlement of any such action effected without its written
consent (which consent shall not be unreasonably withheld), but if settled with
its written consent or if there be a final judgment for the plaintiff in any
such action, the indemnifying party agrees to indemnify and hold harmless any
indemnified party from and against any loss or liability by reason of such
settlement or judgment. Notwithstanding the foregoing sentence, if at any time
an indemnified party shall have requested an indemnifying party to consent to a
settlement of any action, the indemnifying party agrees that it shall be liable
for any settlement of any proceeding effected without its written consent if
such settlement is entered into more than 30 days after receipt by such
indemnifying party of the aforesaid request and the indemnifying party has not
previously provided the indemnified party with written notice of its objection
to such settlement. No indemnifying party shall effect any settlement of any
pending or threatened proceeding in respect of which an indemnified party is or
could have been a party and indemnity is or could have been sought hereunder,
without the written consent of such indemnified party, unless settlement
includes an

                                       11

<PAGE>

unconditional release of such indemnified party from all liability and claims
that are the subject matter of such proceeding.

                                   ARTICLE VI.

                                   TERMINATION

                  Section 6.01 TERMINATION. The respective obligations and
responsibilities of the Seller and the Purchaser created hereby shall terminate,
except for the Seller's indemnity obligations as provided herein upon the
termination of the Trust as provided in Article X of the Pooling and Servicing
Agreement.

                                  ARTICLE VII.

                            MISCELLANEOUS PROVISIONS

                  Section 7.01 AMENDMENT. This Agreement may be amended from
time to time by the Seller and the Purchaser, by written agreement signed by the
Seller and the Purchaser.

                  Section 7.02 GOVERNING LAW. This Agreement shall be governed
by and 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 7.03 NOTICES. All demands, notices and communications
hereunder shall be in writing and shall be deemed to have been duly given if
personally delivered at or mailed by registered mail, postage prepaid, addressed
as follows: (i) if to the Seller: Ameriquest Mortgage Company, 1100 Town &
Country Road, Suite 1100, Orange, California 92868, Facsimile: (714) 564- 9639,
Attention: General Counsel, or such other address as may hereafter be furnished
to the Purchaser in writing by the Seller; and (ii) if to the Purchaser:
Ameriquest Mortgage Securities Inc., 1100 Town & Country Road, Suite 1100,
Orange, California 92868, Facsimile: (714) 564-9639, Attention: General Counsel,
or such other address as may hereafter be furnished to the Seller in writing by
the Purchaser.

                  Section 7.04 SEVERABILITY OF PROVISIONS. If any one or more of
the covenants, agreements, provisions of terms of this Agreement shall be held
invalid for any reason whatsoever, then such covenants, agreements, provisions
or terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity of
enforceability of the other provisions of this Agreement.

                  Section 7.05 COUNTERPARTS. This Agreement may be executed in
one or more counterparts and by the different parties hereto on separate
counterparts, each of which, when so executed, shall be deemed to be an original
and such counterparts, together, shall constitute one and the same agreement.

                                       12

<PAGE>

                  Section 7.06 FURTHER AGREEMENTS. The Purchaser and the Seller
each agree to execute and deliver to the other such additional documents,
instruments or agreements as may be necessary or reasonable and appropriate to
effectuate the purposes of this Agreement or in connection with the issuance of
any Series of Certificates representing interests in the Mortgage Loans.

                  Without limiting the generality of the foregoing, as a further
inducement for the Purchaser to purchase the Mortgage Loans from the Seller, the
Seller will cooperate with the Purchaser in connection with the sale of any of
the securities representing interests in the Mortgage Loans. In that connection,
the Seller will provide to the Purchaser any and all information and appropriate
verification of information, whether through letters of its auditors and counsel
or otherwise, as the Purchaser shall reasonably request and will provide to the
Purchaser such additional representations and warranties, covenants, opinions of
counsel, letters from auditors, and certificates of public officials or officers
of the Seller as are reasonably required in connection with such transactions
and the offering of investment grade securities rated by the Rating Agencies.

                  Section 7.07 INTENTION OF THE PARTIES. It is the intention of
the parties that the Purchaser is purchasing, and the Seller is selling, the
Mortgage Loans rather than pledging the Mortgage Loans to secure a loan by the
Purchaser to the Seller. Accordingly, the parties hereto each intend to treat
the transaction for federal income tax purposes and all other purposes as a sale
by the Seller, and a purchase by the Purchaser, of the Mortgage Loans. The
Purchaser will have the right to review the Mortgage Loans and the related
Mortgage Files to determine the characteristics of the Mortgage Loans which will
affect the federal income tax consequences of owning the Mortgage Loans and the
Seller will cooperate with all reasonable requests made by the Purchaser in the
course of such review.

                  Section 7.08 SUCCESSORS AND ASSIGNS: ASSIGNMENT OF PURCHASE
AGREEMENT. This Agreement shall bind and inure to the benefit of and be
enforceable by the Seller, the Purchaser, the Trustee, the Guarantor and the
NIMs Insurer. The Guarantor and the NIMs Insurer shall be third party
beneficiaries hereof and may enforce the terms hereof as if a party hereto. The
obligations of the Seller under this Agreement cannot be assigned or delegated
by the Seller to a third party without the consent of the Purchaser which
consent shall be at the Purchaser's sole discretion, except that the Purchaser
acknowledges and agrees that the Seller may assign its obligations hereunder to
any Person into which the Seller is merged or any corporation resulting from any
merger, conversion or consolidation to which the Seller is a party or any Person
succeeding to the business of the Seller. The parties hereto acknowledge that
the Purchaser is acquiring the Mortgage Loans for the purpose of contributing
them to a trust that will issue a Series of Certificates representing undivided
interests in such Mortgage Loans. As an inducement to the Purchaser to purchase
the Mortgage Loans, the Seller acknowledges and consents to the assignment by
the Purchaser to the Trustee of all of the Purchaser's rights against the Seller
pursuant to this Agreement insofar as such rights relate to Mortgage Loans
transferred to the Trustee and to the enforcement or exercise of any right or
remedy against the Seller pursuant to this Agreement by the Trustee. Such
enforcement of a right or remedy by the Trustee shall have the same force and
effect as if the right or remedy had been enforced or exercised by the Purchaser
directly.

                                       13

<PAGE>

                  Section 7.09 SURVIVAL. The representations and warranties set
forth in Sections 3.01 and 3.02 and the provisions of Article V hereof shall
survive the purchase of the Mortgage Loans hereunder.

                                       14

<PAGE>

                  IN WITNESS WHEREOF, the Seller and the Purchaser have caused
their names to be signed to this Mortgage Loan Purchase Agreement by their
respective officers thereunto duly authorized as of the day and year first above
written.

                                           AMERIQUEST MORTGAGE  SECURITIES
                                           INC., as Purchaser

                                           By:__________________________________
                                           Name:
                                           Title:

                                           AMERIQUEST MORTGAGE COMPANY,
                                           as Seller

                                           By:__________________________________
                                           Name:
                                           Title:

<PAGE>

                                                                      SCHEDULE I

                                 MORTGAGE LOANS
                                 --------------

                             Available Upon Request

                                       16

<PAGE>

                                                                       EXHIBIT A

REPRESENTATIONS AND WARRANTIES OF THE SELLER REGARDING THE MORTGAGE LOANS.
-------------------------------------------------------------------------

                  The Seller represents and warrants to the Purchaser, as of the
Closing Date unless specifically stated otherwise in such representation and
warranty, as follows:

                  (i) No misrepresentation of a material fact or fraud in
         respect of the origination, modification or amendment of any Mortgage
         Loan has taken place on the part of any person, including, without
         limitation, the related mortgagor, any appraiser, any builder or
         developer or any party involved in the origination of such Mortgage
         Loan;

                  (ii) As of the last calendar day of November 2002 and with
         respect to any Initial Mortgage Loan that had a payment due on or
         before November 1, 2002, the Monthly Payment due on November 1, 2002
         has been received. In addition, (a) none of the Initial Mortgage Loans
         have been 30 or more days delinquent more than once in the last 12
         months and (b) none of the Initial Mortgage Loans have been 30 or more
         days delinquent for two payment periods since the date of origination;

                  (iii) Each Mortgage Loan, as of the Closing Date, is an
         adjustable rate or fixed rate Mortgage Loan having an original term to
         maturity from the date on which the first monthly payment is due of not
         more than 30 years. Each Mortgage Note with respect to the Mortgage
         Loans will provide for a schedule of substantially level and equal
         Monthly Payments which are sufficient to amortize fully the principal
         balance of such Mortgage Loan over a period of time equal to the
         amortization period of such Mortgage Note. None of the Mortgage Loans
         are second lien Mortgage Loans;

                  (iv) No more than 59.02% of the Initial Group I Mortgage Loans
         and 54.82% of the Initial Group II Mortgage Loans, by aggregate Cut-off
         Date Principal Balance of the Initial Mortgage Loans in the related
         Loan Group, had Loan-to-Value Ratios at origination exceeding 80%. All
         Initial Mortgage Loans had Loan-to-Value Ratios at origination of less
         than or equal to 95%;

                  (v) Each Mortgage Loan was originated substantially in
         accordance with the Seller's underwriting criteria, which are at least
         as stringent as the underwriting criteria set forth in the Information
         Circular and the Prospectus Supplement. Each Mortgage Loan is currently
         being serviced by the Seller and has been serviced by the Seller since
         the date of origination or purchase of such Mortgage Loan;

                  (vi) No Mortgage Loan is the subject of foreclosure
         proceedings and no obligor of any of the Mortgage Loans has filed for
         bankruptcy protection;

                  (vii) As of the Cut-off Date, no more than .262% of the
         Initial Group I Mortgage Loans and .292% of the Initial Group II
         Mortgage Loans, by aggregate Cut-off Date Principal Balance of the
         Initial Mortgage Loans in the related Loan Group, are secured by
         manufactured housing and none of the Initial Mortgage Loans are secured
         by mobile homes;

                                       17

<PAGE>

                  (viii) Each Mortgage transferred to the Trustee is a valid
         first lien on the Mortgaged Property subject only to (a) the lien of
         current real property taxes and assessments, (b) covenants, conditions
         and restriction, rights of way, easements and other matters of public
         record as of the date of recording of such mortgage, such exceptions
         appearing of record being acceptable to mortgage lending institutions
         generally or specifically reflected in the appraisal made in connection
         with the origination of the related mortgage loan and (c) other matters
         to which like properties are commonly subject which do not materially
         interfere with the benefits of the security intended to be provided by
         such Mortgage;

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

                  (x) There are no mechanics' liens or claims for work, labor or
         material affecting any Mortgaged Property which are or may be a lien
         prior to, or equal with, the lien of such Mortgage except those which
         are insured against by the title insurance policy referred to in the
         Pooling and Servicing Agreement;

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

                  (xii) None of the Mortgage Loans are cooperative share
         Mortgages;

                  (xiii) If the improvements securing a Mortgage Loan were in a
         federally designated special flood hazard area as of the date of
         origination, flood insurance in the amount described in the Pooling and
         Servicing Agreement (and to the extent required by the Pooling and
         Servicing Agreement) covers the related Mortgaged Property (either by
         coverage under the federal flood insurance program or by coverage by
         private insurers);

                  (xiv) A lender's policy of title insurance or a commitment
         (binder) to issue the same or an attorney's certificate or opinion of
         title was effective on the date of the origination of each Mortgage
         Loan and each such policy or certificate or opinion of title is valid
         and remains in full force and effect;

                  (xv) [Reserved];

                  (xvi) Each appraisal of a Mortgage Loan that was used to
         determine the appraised value of the related Mortgaged Property was
         conducted generally in accordance with the Seller's Underwriting
         Guidelines as described in the Information Circular and the Prospectus
         Supplement and included an assessment of the fair market value of the
         related Mortgaged Property at the time of the appraisal. The Mortgage
         File contains an appraisal of the applicable Mortgaged Property;

                                       18

<PAGE>

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

                  (xviii) Each Mortgage Loan constitutes a qualified mortgage
         under Section 860G(a)(3)(A) of the Code and Treasury Regulations
         Section 1.860G-2(a)(1) and (3);

                  (xix) Each Mortgage and Mortgage Note is the legal, valid and
         binding obligation of the related Mortgagor and is enforceable by the
         Trustee or any co-trustee appointed hereunder against the Mortgagor in
         accordance with its terms, except only as such enforcement may be
         limited by bankruptcy, insolvency, reorganization, moratorium or other
         similar laws affecting the enforcement of creditors' rights generally
         and by law, and all parties to each Mortgage Loan and the Mortgagor had
         full legal capacity to execute all Mortgage Loan documents and to
         convey the estate therein purported to be conveyed; and the Mortgage
         and each Mortgage Note have been duly and validly executed by such
         parties;

                  (xx) All individual insurance policies contain a standard
         mortgagee clause naming the Seller, its successors and assigns, as
         mortgagee. All premiums thereon previously coming due have been paid.
         Each Mortgage obligates the Mortgagor thereunder to maintain all such
         insurance at the Mortgagor's cost and expense, and upon the Mortgagor's
         failure to do so, subject to the restrictions of applicable law,
         authorizes the holder of the Mortgage to obtain and maintain such
         insurance at the Mortgagor's cost and expense and to seek reimbursement
         therefor from the Mortgagor;

                  (xxi) Any advances made after the date of origination of a
         Mortgage Loan but prior to the Cut-off Date 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 reflected on the Mortgage Loan Schedule.
         The consolidated principal amount does not exceed the original
         principal amount of the related Mortgage Loan;

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

                  (xxiii) No improvement located on or being part of any
         Mortgaged Property is in violation of any applicable zoning law or
         regulation. All inspections, licenses and certificates required to be
         made or issued with respect to all occupied portions of each Mortgaged

                                       19

<PAGE>

         Property and, with respect to the occupancy of the same, including but
         not limited to certificates of occupancy and fire underwriting
         certificates, have been made or obtained from the appropriate
         authorities and such Mortgaged Property is lawfully occupied under the
         applicable law;

                  (xxiv) Excluding any Mortgage Loan subject to an escrow
         withhold, the proceeds of each Mortgage Loan have been fully disbursed
         and there is no obligation on the part of the mortgagee to make future
         advances thereunder and any and all requirements as to completion of
         any on-site or off-site improvements and as to disbursement of any
         escrow funds therefor have been complied with. All costs, fees and
         expenses incurred in making, closing or recording the Mortgage Loans
         were paid and the Mortgagor is not entitled to any refund of amounts
         paid or due under the Mortgage Note;

                  (xxv) There is no obligation on the part of the Seller or any
         other party to make payments in addition to those made by the
         Mortgagor;

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

                  (xxvii) Each Mortgage contains customary and enforceable
         provisions which render the rights and remedies of the holder thereof
         adequate for the realization against the related Mortgaged Property of
         the benefits of the security, including, (i) in the case of a Mortgage
         designated as a deed of trust, by trustee's sale and (ii) otherwise by
         judicial or non-judicial foreclosure. There is no homestead or other
         exemption available to the related 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 subject to the applicable
         federal and state laws and judicial precedent with respect to
         bankruptcy and rights of redemption. 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 merchantable title to the
         property;

                  (xxviii) The Seller has not transferred the Mortgage Loans to
         the Depositor with any intent to hinder, delay or defraud any of its
         creditors;

                  (xxix) All parties which have had any interest in the Mortgage
         Loans, whether as originator, mortgagee, assignee, pledgee or
         otherwise, are (or, during the period in which they held and disposed
         of such interest, were): (A) organized under the laws of such state, or
         (B) qualified to do business in such state, or (C) federal savings and
         loan associations or national banks, or (D) not doing business in such
         state so as to require qualification or licensing, or (E) not otherwise
         required to be licensed in such state. All parties which have had any
         interest in the Mortgage Loans were in compliance with any and all
         applicable licensing requirements of the laws of the state wherein the
         Mortgaged Property is located or were not required to be licensed in
         such state;

                  (xxx) Each document or instrument in the related Mortgage
         Files is in a form generally acceptable to prudent mortgage lenders
         that regularly originate or purchase

                                       20

<PAGE>

         mortgage loans comparable to the Mortgage Loans for sale to prudent
         investors in the secondary market that invest in mortgage loans such as
         the Mortgage Loans;

                  (xxxi) Each Mortgaged Property is improved by a single (one-
         to four-) family residential dwelling, including, without limitation,
         condominiums, townhouses, planned unit developments and manufactured
         homes. No Mortgaged Property is improved by a mobile home. Each
         manufactured home constituting any portion of any Mortgaged Property
         constitutes real property under applicable state law; and each
         manufactured home constituting any portion of any Mortgaged Property is
         a "single-family residence" as defined in Section 25(e)(10) of the
         Code;

                  (xxxii) Except with respect to liens released immediately
         prior to the transfer herein contemplated, each Mortgage Note and
         related Mortgage have not been assigned or pledged and immediately
         prior to the transfer and assignment herein contemplated, the Seller
         held good, marketable and indefeasible title to, and was the sole owner
         and holder of, each Mortgage Loan subject to no liens, charges,
         mortgages, claims, participation interests, equities, pledges or
         security interests of any nature, encumbrances or rights of others
         (collectively, a "Lien"); the Seller has full right and authority under
         all governmental and regulatory bodies having jurisdiction over the
         Seller, subject to no interest or participation of, or agreement with,
         any party, to sell and assign the same pursuant to this Agreement; and
         immediately upon the transfers and assignments herein contemplated, the
         Seller shall have transferred all of its right, title and interest in
         and to each Mortgage Loan and the Trustee will hold good, marketable
         and indefeasible title to, and be the sole owner of, each Mortgage Loan
         subject to no Liens;

                  (xxxiii) No Mortgage Loan is subject to any valid right of
         rescission, set-off, counterclaim or defense, including the defense of
         usury, nor will the operation of any of the terms of any Mortgage Note
         or Mortgage, or the exercise of any right thereunder, render either the
         Mortgage Note or the Mortgage unenforceable in whole or in part, or
         subject to any valid right of rescission, set-off, counterclaim or
         defense, including the defense of usury, and no such right of
         rescission, set-off, counterclaim or defense has been asserted with
         respect thereto;

                  (xxxiv) The improvements upon each Mortgaged Property are
         covered by a valid and existing hazard insurance policy with a
         generally acceptable carrier that provides for fire and extended
         coverage representing coverage described in the Pooling and Servicing
         Agreement;

                  (xxxv) The terms of each Mortgage Note and related Mortgage
         have not been impaired, altered or modified in any material respect,
         except by a written instrument which has been recorded or is in the
         process of being recorded, if necessary, to protect the interests of
         the Certificateholders and which has been or will be delivered to the
         Custodian on behalf of the Trustee;

                  (xxxvi) Each original Mortgage was recorded and all subsequent
         Assignments (other than the Assignment to the Trustee) have been
         recorded in the appropriate jurisdictions wherein such recordation is
         necessary to perfect the lien thereof as against creditors of the

                                       21

<PAGE>

         Seller, or is in the process of being recorded or upon receipt of the
         related Mortgage recordation information and return of the original
         intervening Assignment will be submitted for recording;

                  (xxxvii) There is no proceeding pending or threatened for the
         total or partial condemnation of any Mortgaged Property, nor is such a
         proceeding currently occurring, and such property is undamaged by
         waste, fire, earthquake or earth movement, windstorm, flood, tornado or
         other casualty, so as to affect materially and adversely the value of
         the Mortgaged Property as security for the Mortgage Loan or the use for
         which the premises were intended;

                  (xxxviii) No Mortgage Loan was originated under a buydown
         plan;

                  (xxxix) No Mortgage Loan is subject to the requirements of the
         Home Ownership and Equity Protection Act of 1994 ("HOEPA") and no
         Mortgage Loan is in violation of any state law or ordinance similar to
         HOEPA;

                  (xl) The Seller 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 its
         borrower credit files to each of the Credit Repositories on a monthly
         basis;

                  (xli) No proceeds from any Mortgage Loan were used to purchase
         single premium credit insurance policies as part of the origination of,
         or as a condition to closing, such Mortgage Loan;

                  (xlii) No Mortgage Loan originated before October 1, 2002 has
         a Prepayment Charge term longer than five years after its origination
         and no Mortgage Loan originated on or after October 1, 2002 has a
         Prepayment Charge term longer than three years after its origination;

                  (xliii) Except for Mortgage Loans that are delinquent for a
         time period less than that set forth in (ii) above, there is no
         default, breach, violation or event of acceleration existing under any
         Mortgage or the related Mortgage Note and 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; and neither the Seller, nor any other entity involved in
         originating or servicing a Mortgage Loan, has waived any default,
         breach, violation or event of acceleration;

                  (xliv) Each Mortgage Loan conforms, and all Mortgage Loans in
         the aggregate conform, in all material respects, to the description
         thereof set forth in the Information Circular and the Prospectus
         Supplement;

                  (xlv) Each Initial Mortgage Loan was originated on or after
         May 2, 2002;

                  (xlvi) The Seller represents and warrants that the Seller
         currently operates or actively participates in an on-going business (A)
         to originate single family mortgage loans

                                       22

<PAGE>

         ("Loans"), and/or (B) to make periodic purchases of Loans from
         originators or sellers, and/or (C) to issue and/or purchase securities
         or bonds supported by the Loans, a portion of which Loans are made to
         borrowers who are:

                  (a) low-income families (families with incomes of 80% or less
         of area median income) living in low-income areas (a census tract or
         block numbering area in which the median income does not exceed 80% of
         the area median income); or

                  (b) very low-income families (families with incomes of 60% or
         less of area median income).

                  (xlvii) Subject to the restrictions of applicable law, each
         Mortgage contains a provision for the acceleration of the payment of
         the unpaid Principal Balance of the related Mortgage Loan in the event
         the related Mortgaged Property is sold without the prior consent of the
         mortgagee thereunder;

                  (xlviii) With respect to each Mortgage Loan secured by a
         manufactured home: (a) the manufactured home meets the applicable
         building codes and state laws for permanent affixation and treatment
         under state law as real property, (b) the Mortgage Loan is covered
         under a standard real estate title insurance policy or attorney's title
         opinion or certificate that identified the manufactured home as part of
         the real property and insurers or indemnifies against any loss if the
         manufactured home is determined not to be part of the real property and
         (c) meets any other conditions required by Freddie Mac Single Family
         Sellers/Servicers Guide;

                  (xlix) The pool of Mortgage Loans backing the Certificates
         does not contain Mortgage Loans relating to a single Mortgaged Property
         if the aggregate original Principal Balance of such Mortgage Loans
         exceeds Freddie Mac's loan limits. The pool of Mortgage Loans backing
         the Certificates will not result in a violation of Freddie Mac's loan
         limitations;

                  (l) No Mortgage Loan has been previously rejected by Freddie
         Mac;

                  (li) None of the Mortgage Loans were originated while the
         borrower was in bankruptcy or if foreclosure proceedings have begun.

                  (lii) The Mortgage Loans were not intentionally selected by
         the Seller in a manner intended to adversely affect the Purchaser, the
         Trust or the Guarantor;

                  (liii) Each Mortgage Note is comprised of one original
         promissory note and each such promissory note constitutes an
         "instrument" for purposes of section 9-102(a)(65) of the UCC;

                  (liv) The Initial Mortgage Loans are not subject to any
         pending Legal Actions as of the Cut-off Date; and

                                       23

<PAGE>

                  (lv) All escrow agreements are voluntary agreements (subject
         to termination by the Mortgagor at any time) and only provide for the
         escrowing of taxes and/or insurance payments (in each instance as
         directed by the Mortgagor).

                  (lvi) With respect to the Group I Mortgage Loans and the Group
         II Mortgage Loans, no such Mortgage Loans originated on or after
         October 1, 2002 are secured by property located in the State of
         Georgia.

                  (lvii) No Mortgagor has currently requested any relief under
         the Soldiers and Sailors Civil Relief Act of 1940 or similar state
         laws.

                                       24

<PAGE>

                                    EXHIBIT F

                           FORM OF LOST NOTE AFFIDAVIT
                           ---------------------------

         Personally appeared before me the undersigned authority to administer
oaths, _____________________ who first being duly sworn deposes and says:
Deponent is ___________________ of __________________, successor by merger to
_______________________ ("Seller") and who has personal knowledge of the facts
set out in this affidavit.

         On _____________________________, _________________________________ did
execute and deliver a promissory note in the principal amount of $_____________.

         That said note has been misplaced or lost through causes unknown and is
presently lost and unavailable after diligent search has been made. Seller's
records show that an amount of principal and interest on said note is still
presently outstanding, due, and unpaid, and Seller is still owner and holder in
due course of said lost note.

         Seller executes this Affidavit for the purpose of inducing Deutsche
Bank National Trust Company, as trustee on behalf of Ameriquest Mortgage
Securities Inc., Floating Rate Mortgage Pass- Through Certificates, to accept
the transfer of the above described loan from Seller.

         Seller agrees to indemnify Deutsche Bank National Trust Company,
Ameriquest Mortgage Securities Inc. and Ameriquest Mortgage Company harmless for
any losses incurred by such parties resulting from the above described
promissory note has been lost or misplaced.

By:     ___________________________
        ___________________________

STATE OF                )
                        )       SS:
COUNTY OF               )

         On this ____ day of 20__, before me, a Notary Public, in and for said
County and State, appeared , who acknowledged the extension of the foregoing and
who, having been duly sworn, states that any representations therein contained
are true.

         Witness my hand and Notarial Seal this ____ day of _____ 20__.

____________________
____________________

My commission expires _________________

                                       F-1

<PAGE>

                                    EXHIBIT G

                           LOSS MITIGATION ACTION PLAN
                           ---------------------------

<TABLE>
<CAPTION>
DEFAULT MITIGATION ACTION                                  SUPPORTING STANDARDS
<S>                                                        <C>

FORBEARANCE WORKOUt                                        Borrower  documents a temporary financial hardship
Defer any of the following:                                resulting in request for a forbearance
1.accrued interest                                         Borrower documents financial ability to pay under the
2.past due principal                                       proposed forbearance terms
3.escrow advances                                          Borrower expresses a willingness to perform.
4.corporate advances                                       Current monthly payments  are scheduled to  be made
5.ancillary fees                                           prior to late charge date during the forbearance term
6.any combination of the above

LOAN MODIFICATION WORKOUT                                  Borrower documents a  non-temporary financial
Any of the following:                                      hardship resulting in the request for  a loan
1.waive accrued interest                                   modification
2.waive past due principal                                 Borrower documents financial ability to pay under the
3.waive corporate advances                                 proposed loan modification terms
4.waive ancillary fees                                     Borrower does not have the ability to pay under the
5.reduce principal                                         original loan terms
6.reduce interest rate                                     Borrower expresses a willingness to perform
7.any combination of the above items                       No waiver of escrow advances (taxes and insurance) is
8.any combination with the Forbearance items               allowed

SHORT SALE DISPOSAL                                        Sale to a third party
Waive or negotiate a reduced amount of any of the          Independent appraisal supports sale price
following:                                                 No cash to seller (borrower), excluding costs necessary
1.accrued interest                                         to close
2.principal                                                Borrower does not have the ability and/or willingness
3.escrow advances                                          to pay
4.corporate advances                                       Borrower no longer wants property
5.ancillary fees
6.prepayment charges
7.any combination of the above items

Short pay-off Disposal                                     Refinance by independent third party Lender
Waive or negotiate a reduced amount of any of the          Independent appraisal supports new loan amount
following:                                                 New loan is no cash out (i.e. no cash to borrower
1.accrued interest                                         excluding costs necessary to close)
2.principal                                                Borrower  has expressed his/her unwillingness to pay
3.escrow advances                                          Anticipated refinance time frame is less than
4.corporate advances                                       anticipated foreclosure time frame
5.ancillary fees
6.prepayment charges
7.any combination of the above items

                                       G-1

<PAGE>

DEED-IN-LIEU DISPOSAL                                      Borrower has already  or will abandon the property or
                                                           is willing to vacate the property (in a broom sweep
                                                           condition) on a mutually agreeable date
                                                           Borrower does not have the ability and/or willingness
                                                           to pay
                                                           Independent appraisal confirms property  has a value
                                                           Title is clean
                                                           Property appears to be resalable based on condition
                                                           and value shown in independent appraisal
                                                           Property does not appear to have any environmental or
                                                           hazardous conditions (or such conditions appear to be
                                                           curable)

FORECLOSURE DISPOSAL                                       Borrower has already  or will abandon the property
                                                           (which may be by an eviction proceeding or mutual
                                                           agreement)
                                                           Borrower does not have the ability and/or willingness
                                                           to pay
                                                           Independent appraisal confirms property has a value
                                                           Property appears to be resalable based on condition
                                                           and value shown in independent appraisal
                                                           Property does not appear to have any environmental or
                                                           hazardous conditions (or such conditions appear to be
                                                           curable)
</TABLE>

Workouts in the form of either a Forbearance or Loan Modification require that
the Borrower document the existence of a financial hardship leading to the
payment delinquency and document the ability to make the payments required under
the proposed Forbearance or Loan Modification. If the Borrower fails to meet
both of these conditions or the Borrower is uncooperative, a Disposal Loss
Mitigation Action will be employed to liquidate the delinquent loan, assuming
the Borrower does not otherwise cure the existing default. Each of the Default
Mitigation Actions and Supporting Standards may not be applicable to each and
every loan subject to a default in its monthly payments and in those cases where
a Default Mitigation Action or Supporting Standard may be applicable, each is
subject to amendment and/or waiver on an individual basis pursuant to applicable
federal, state and local laws, decisional authorities, court orders,
instructions of regulatory and/or other governmental authorities, the advice of
legal counsel, instructions from the Trustee and changes in the loan servicing
standards.

                                       G-2

<PAGE>

                                    EXHIBIT H

                    FORM OF INVESTMENT LETTER [NON-RULE 144A]

                                                     [DATE]

Ameriquest Mortgage Securities Inc.         Deutsche Bank National Trust Company
1100 Town & Country Road, Suite 1100        1761 East St. Andrew Place
Orange, California 92868-4653               Santa Ana, California 92705-4934

         Re:      Ameriquest Mortgage Securities Inc., Series 2002-D
                  --------------------------------------------------

Ladies and Gentlemen:

         In connection with our acquisition of the above-captioned Certificates,
we certify that (a) we understand that the Certificates are not being registered
under the Securities Act of 1933, as amended (the "Act"), or any state
securities laws and are being transferred to us in a transaction that is exempt
from the registration requirements of the Act and any such laws, (b) we are an
"accredited investor," as defined in Regulation D under the Act, and have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) we are not an employee benefit plan that is
subject to the Employee Retirement Income Security Act of 1974, as amended, or a
plan that is subject to Section 4975 of the Internal Revenue Code of 1986, as
amended, nor are we acting on behalf of any such plan, (e) we are acquiring the
Certificates for investment for our own account and not with a view to any
distribution of such Certificates (but without prejudice to our right at all
times to sell or otherwise dispose of the Certificates in accordance with clause
(g) below), (f) we have not offered or sold any Certificates to, or solicited
offers to buy any Certificates from, any person, or otherwise approached or
negotiated with any person with respect thereto, or taken any other action which
would result in a violation of Section 5 of the Act, and (g) we will not sell,
transfer or otherwise dispose of any Certificates unless (1) such sale, transfer
or other disposition is made pursuant to an effective registration statement
under the Act or is exempt from such registration requirements, and if
requested, we will at our expense provide an opinion of counsel satisfactory to
the addresses of this Certificate that such sale, transfer or other disposition
may be made pursuant to an exemption from the Act, (2) the purchaser or
transferee of such Certificate has executed and delivered to you a certificate
to substantially the same effect as this certificate, and (3) the purchaser or
transferee has otherwise complied with any conditions for transfer set forth in
the Pooling and Servicing Agreement.

                                                     Very truly yours,
                                                     [NAME OF TRANSFEREE]

                                                     By:________________________
                                                     Authorized Officer

                                       H-1

<PAGE>

                       FORM OF RULE 144A INVESTMENT LETTER

                                                       [DATE]

Ameriquest Mortgage Securities Inc.         Deutsche Bank National Trust Company
1100 Town & Country Road, Suite 1100        1761 East St. Andrew Place
Orange, California 92868-4653               Santa Ana, California 92705-4934

         Re:      Ameriquest Mortgage Securities Inc., Series 2002-D
                  --------------------------------------------------

Ladies and Gentlemen:

         In connection with our acquisition of the above Certificates we certify
that (a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we have had the
opportunity to ask questions of and receive answers from the Depositor
concerning the purchase of the Certificates and all matters relating thereto or
any additional information deemed necessary to our decision to purchase the
Certificates, (c) we are not an employee benefit plan that is subject to the
Employee Retirement Income Security Act of 1974, as amended, or a plan that is
subject to Section 4975 of the Internal Revenue Code of 1986, as amended, nor
are we acting on behalf of any such plan, (d) we have not, nor has anyone acting
on our behalf offered, transferred, pledged, sold or otherwise disposed of the
Certificates, any interest in the Certificates or any other similar security to,
or solicited any offer to buy or accept a transfer, pledge or other disposition
of the Certificates, any interest in the Certificates or any other similar
security from, or otherwise approached or negotiated with respect to the
Certificates, any interest in the Certificates or any other similar security
with, any person in any manner, or made any general solicitation by means of
general advertising or in any other manner, or taken any other action, that
would constitute a distribution of the Certificates under the Act or that would
render the disposition of the Certificates a violation of Section 5 of the Act
or require registration pursuant thereto, nor will act, nor has authorized or
will authorize any person to act, in such manner with respect to the
Certificates, (e) we are a "qualified institutional buyer" as that term is
defined in Rule 144A under the Act and have completed either of the forms of
certification to that effect attached hereto as Annex 1 or Annex 2. We are aware
that the sale to us is being made in reliance on Rule 144A. We are acquiring the
Certificates for our own account or for resale pursuant to Rule 144A and
further, understand that such Certificates may be resold, pledged or transferred
only (i) to a person reasonably believed to be a qualified institutional buyer
that purchases for its own account or for the account of a qualified
institutional buyer to whom notice is given that the resale, pledge or transfer
is being made in reliance on Rule 144A, or (ii) pursuant to another exemption
from registration under the Act.

                                                 Very truly yours,
                                                 [NAME OF TRANSFEREE]

                                                 By:____________________________
                                                 Authorized Officer

                                       H-2

<PAGE>

                                                            ANNEX I TO EXHIBIT H
                                                            --------------------

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

          [For Transferees Other Than Registered Investment Companies]

                  The undersigned (the "Buyer") hereby certifies as follows to
the parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:

                  i. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

                  ii. In connection with purchases by the Buyer, the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("Rule 144A") because (i) the Buyer owned
and/or invested on a discretionary basis $_________1 in securities (except for
the excluded securities referred to below) as of the end of the Buyer's most
recent fiscal year (such amount being calculated in accordance with Rule 144A
and (ii) the Buyer satisfies the criteria in the category marked below.

                           ___ Corporation, etc. The Buyer is a corporation
                  (other than a bank, savings and loan association or similar
                  institution), Massachusetts or similar business trust,
                  partnership, or charitable organization described in Section
                  501 (c) (3) of the Internal Revenue Code of 1986, as amended.

                           ___ Bank. The Buyer (a) is a national bank or banking
                  institution organized under the laws of any State, territory
                  or the District of Columbia, the business of which is
                  substantially confined to banking and is supervised by the
                  State or territorial banking commission or similar official or
                  is a foreign bank or equivalent institution, and (b) has an
                  audited net worth of at least $25,000,000 as demonstrated in
                  its latest annual financial statements, a copy of which is
                  attached hereto.

                           ___ Savings and Loan. The Buyer (a) is a savings and
                  loan association, building and loan association, cooperative
                  bank, homestead association or similar institution, which is
                  supervised and examined by a State or Federal authority having
                  supervision over any such institutions or is a foreign savings
                  and loan association or equivalent institution and (b) has an
                  audited net worth of at least $25,000,000 as demonstrated in
                  its latest annual financial statements, a copy of which is
                  attached hereto.

--------

         1Buyer must own and/or invest on a discretionary basis at least
$100,000,000 in securities unless Buyer is a dealer, and, in that case, Buyer
must own and/or invest on a discretionary basis at least $10,000,000 in
securities.

                                       H-3

<PAGE>

                           ___ Broker-dealer. The Buyer is a dealer registered
                  pursuant to Section 15 of the Securities Exchange Act of 1934.

                           ___ Insurance Company. The Buyer is an insurance
                  company whose primary and predominant business activity is the
                  writing of insurance or the reinsuring of risks underwritten
                  by insurance companies and which is subject to supervision by
                  the insurance commissioner or a similar official or agency of
                  a State, territory or the District of Columbia.

                           ___ State or Local Plan. The Buyer is a plan
                  established and maintained by a State, its political
                  subdivisions, or any agency or instrumentality of the State or
                  its political subdivisions, for the benefit of its employees.

                           ___ ERISA Plan. The Buyer is an employee benefit plan
                  within the meaning of Title I of the Employee Retirement
                  Income Security Act of 1974.

                           ___ Investment Advisor. The Buyer is an investment
                  advisor registered under the Investment Advisors Act of 1940.

                           ___ Small Business Investment Company. Buyer is a
                  small business investment company licensed by the U.S. Small
                  Business Administration under Section 301(c) or (d) of the
                  Small Business Investment Act of 1958.

                           ___ Business Development Company. Buyer is a business
                  development company as defined in Section 202(a)(22) of the
                  Investment Advisors Act of 1940.

                  iii. The term "SECURITIES" as used herein DOES NOT INCLUDE (i)
securities of issuers that are affiliated with the Buyer, (ii) securities that
are part of an unsold allotment to or subscription by the Buyer, if the Buyer is
a dealer, (iii) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iv) bank deposit notes and certificates of deposit,
(v) loan participations, (vi) repurchase agreements, (vii) securities owned but
subject to a repurchase agreement and (viii) currency, interest rate
andcommodity swaps.

                  iv. For purposes of determining the aggregate amount of
securities owned and/or invested on a discretionary basis by the Buyer, the
Buyer used the cost of such securities to the Buyer and did not include any of
the securities referred to in the preceding paragraph, except (i) where the
Buyer reports its securities holdings in its financial statements on the basis
of their market value, and (ii) no current information with respect to the cost
of those securities has been published. If clause (ii) in the preceding sentence
applies, the securities may be valued at market. Further, in determining such
aggregate amount, the Buyer may have included securities owned by subsidiaries
of the Buyer, but only if such subsidiaries are consolidated with the Buyer in
its financial statements prepared in accordance with generally accepted
accounting principles and if the investments of such subsidiaries are managed
under the Buyer's direction. However, such securities were not included if the
Buyer is a majority-owned, consolidated subsidiary of another enterprise and the
Buyer is not itself a reporting company under the Securities Exchange Act of
1934, as amended.

                                       H-4

<PAGE>

                  v. The Buyer acknowledges that it is familiar with Rule 144A
and understands that the seller to it and other parties related to the
Certificates are relying and will continue to rely on the statements made herein
because one or more sales to the Buyer may be in reliance on Rule 144A.

                  vi. Until the date of purchase of the Rule 144A Securities,
the Buyer will notify each of the parties to which this certification is made of
any changes in the information and conclusions herein. Until such notice is
given, the Buyer's purchase of the Certificates will constitute a reaffirmation
of this certification as of the date of such purchase. In addition, if the Buyer
is a bank or savings and loan as provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                                ________________________________
                                                Print Name of Buyer

                                                By______________________________
                                                  Name:
                                                  Title:

                                                Date:___________________________

                                       H-5

<PAGE>

                                                            ANNEX 2 TO EXHIBIT H
                                                            --------------------

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

           [For Transferees That are Registered Investment Companies]

                  The undersigned (the "Buyer") hereby certifies as follows to
the parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:

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

                  2. In connection with purchases by Buyer, the Buyer is a
"qualified institutional buyer" as defined in SEC Rule 144A because (i) the
Buyer is an investment company registered under the Investment Company Act of
1940, as amended and (ii) as marked below, the Buyer alone, or the Buyer's
Family of Investment Companies, owned at least $100,000,000 in securities (other
than the excluded securities referred to below) as of the end of the Buyer's
most recent fiscal year. For purposes of determining the amount of securities
owned by the Buyer or the Buyer's Family of Investment Companies, the cost of
such securities was used, except (i) where the Buyer or the Buyer's Family of
Investment Companies reports its securities holdings in its financial statements
on the basis of their market value, and (ii) no current information with respect
to the cost of those securities has been published. If clause (ii) in the
preceding sentence applies, the securities may be valued at market.

                           ___ The Buyer owned $_________ in securities (other
                  than the excluded securities referred to below) as of the end
                  of the Buyer's most recent fiscal year (such amount being
                  calculated in accordance with Rule 144A).

                           ___ The Buyer is part of a Family of Investment
                  Companies which owned in the aggregate $ in securities (other
                  than the excluded securities referred to below) as of the end
                  of the Buyer's most recent fiscal year (such amount being
                  calculated in accordance with Rule 144A).

                  3. The term "FAMILY OF INVESTMENT COMPANIES" as used herein
means two or more registered investment companies (or series thereof) that have
the same investment adviser or investment advisers that are affiliated (by
virtue of being majority owned subsidiaries of the same parent or because one
investment adviser is a majority owned subsidiary of the other).

                  4. The term "SECURITIES" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) securities issued or guaranteed by
the U.S. or any instrumentality thereof, (iii) bank deposit notes and
certificates of deposit, (iv) loan participations, (v) repurchase agreements,
(vi) securities owned but subject to a repurchase agreement and (vii) currency,
interest rate and commodity swaps.

                                       H-6

<PAGE>

                  5. The Buyer is familiar with Rule 144A and understands that
the parties listed in the Rule 144A Transferee Certificate to which this
certification relates are relying and will continue to rely on the statements
made herein because one or more sales to the Buyer will be in reliance on Rule
144A. In addition, the Buyer will only purchase for the Buyer's own account.

                  6. Until the date of purchase of the Certificates, the
undersigned will notify the parties listed in the Rule 144A Transferee
Certificate to which this certification relates of any changes in the
information and conclusions herein. Until such notice is given, the Buyer's
purchase of the Certificates will constitute a reaffirmation of this
certification by the undersigned as of the date of such purchase.

                                                ________________________________
                                                Print Name of Buyer or Adviser

                                                By______________________________
                                                  Name:
                                                  Title:

                                                IF AN ADVISER:

                                                ________________________________
                                                Print Name of Buyer

                                                Date:___________________________

                                       H-7

<PAGE>

                                    EXHIBIT I

                 AFFIDAVIT OF TRANSFER OF RESIDUAL CERTIFICATES
                           PURSUANT TO SECTION 5.02(b)

                       AMERIQUEST MORTGAGE SECURITIES INC.
                                  SERIES 2002-D

STATE OF        )
                )ss..
COUNTY OF       )

         The undersigned, being first duly sworn, deposes and says as follows:

         1. The undersigned is an officer of , the proposed Transferee of an
Ownership Interest in a Class R Certificate (the "Certificate") issued pursuant
to the Pooling and Servicing Agreement (the "Agreement"), relating to the
above-referenced Certificates, among Ameriquest Mortgage Securities Inc., as
Depositor, Ameriquest Mortgage Company, as Originator and Master Servicer (the
"Originator" and "Master Servicer"), Federal Home Loan Mortgage Corporation, as
Guarantor and Deutsche Bank National Trust Company, as Trustee (the "Trustee").
Capitalized terms used, but not defined herein, shall have the meanings ascribed
to such terms in the Agreement. The Transferee has authorized the undersigned to
make this affidavit on behalf of the Transferee.

         2. The Transferee is, as of the date hereof, and will be, as of the
date of the Transfer, a Permitted Transferee. The Transferee is acquiring its
Ownership Interest in the Certificate either (i) for its own account or (ii) as
nominee, trustee or agent for another Person and has attached hereto an
affidavit from such Person in substantially the same form as this affidavit. The
Transferee has no knowledge that any such affidavit is false.

         3. The Transferee has been advised of, and understands that (i) a tax
will be imposed on Transfers of the Certificate to Persons that are not
Permitted Transferees; (ii) such tax will be imposed on the transferor, or, if
such Transfer is through an agent (which includes a broker, nominee or
middleman) for a Person that is not a Permitted Transferee, on the agent; and
(iii) the Person otherwise liable for the tax shall be relieved of liability for
the tax if the subsequent Transferee furnished to such Person an affidavit that
such subsequent Transferee is a Permitted Transferee and, at the time of
Transfer, such Person does not have actual knowledge that the affidavit is
false.

         4. The Transferee has been advised of, and understands that a tax will
be imposed on a "pass-through entity" holding the Certificate if at any time
during the taxable year of the pass-through entity a Person that is not a
Permitted Transferee is the record holder of an interest in such entity. The
Transferee understands that such tax will not be imposed for any period with
respect to which the record holder furnishes to the pass-through entity an
affidavit that such record holder is a Permitted Transferee and the pass-through
entity does not have actual knowledge that such affidavit is false. (For this
purpose, a "pass- through entity" includes a regulated investment

                                       I-1

<PAGE>

company, a real estate investment trust or common trust fund, a partnership,
trust or estate, and certain cooperatives and, except as may be provided in
Treasury Regulations, persons holding interests in pass-through entities as a
nominee for another Person.)

         5. The Transferee has reviewed the provisions of Section 5.02(b) of the
Agreement and understands the legal consequences of the acquisition of an
Ownership Interest in the Certificate including, without limitation, the
restrictions on subsequent Transfers and the provisions regarding voiding the
Transfer and mandatory sales. The Transferee expressly agrees to be bound by and
to abide by the provisions of Section 5.02(b) of the Agreement and the
restrictions noted on the face of the Certificate. The Transferee understands
and agrees that any breach of any of the representations included herein shall
render the Transfer to the Transferee contemplated hereby null and void.

         6. The Transferee agrees to require a Transfer Affidavit from any
Person to whom the Transferee attempts to Transfer its Ownership Interest in the
Certificate, and in connection with any Transfer by a Person for whom the
Transferee is acting as nominee, trustee or agent, and the Transferee will not
Transfer its Ownership Interest or cause any Ownership Interest to be
Transferred to any Person that the Transferee knows is not a Permitted
Transferee. In connection with any such Transfer by the Transferee, the
Transferee agrees to deliver to the Trustee a certificate substantially in the
form set forth as Exhibit J to the Agreement (a "Transferor Certificate") to the
effect that such Transferee has no actual knowledge that the Person to which the
Transfer is to be made is not a Permitted Transferee.

         7. The Transferee does not have the intention to impede the assessment
or collection of any tax legally required to be paid with respect to the
Certificate. If the Certificate is a "noneconomic residual interest," Transferee
understands that, as the holder of the noneconomic residual, the Transferee may
incur tax liabilities in excess of any cash flows generated by the interest and
that the Transferee intends to pay taxes associated with holding the residual
interest as they become due.

         8. The Transferee's taxpayer identification number is .

         9. The Transferee is a U.S. Person as defined in Code Section
7701(a)(30).

         10. The Transferee is aware that the Certificate may be a "noneconomic
residual interest" within the meaning of proposed Treasury regulations
promulgated pursuant to the Code and that the transferor of a noneconomic
residual interest will remain liable for any taxes due with respect to the
income on such residual interest, unless no significant purpose of the transfer
was to impede the assessment or collection of tax.

         11. The Transferee is not an employee benefit plan that is subject to
ERISA or a plan that is subject to Section 4975 of the Code; nor is it acting on
behalf of such a plan.

                                       I-2

<PAGE>

         IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
duly authorized officer and its corporate seal to be hereunto affixed, duly
attested, this ____ day of __________, ____.

                                         [NAME OF TRANSFEREE]

                                         By:__________________________________
                                         Name:
                                         Title:

[Corporate Seal]

ATTEST:

____________________________
[Assistant] Secretary

         Personally appeared before me the above-named , known or proved to me
to be the same person who executed the foregoing instrument and to be the of the
Transferee, and acknowledged that he executed the same as his free act and deed
and the free act and deed of the Transferee.

         Subscribed and sworn before me this____ day of __________, ____.

                   ____________________________________
                              NOTARY PUBLIC

                         My Commission expires the ____ day of _____. ____.

                                       I-3

<PAGE>

                                    EXHIBIT J

                         FORM OF TRANSFEROR CERTIFICATE

                                     [DATE]

Deutsche Bank National Trust Company
1761 East St. Andrew Place
Santa Ana, CA 92705-4934
Ameriquest Mortgage Securities Inc.
1100 Town & Country Road, Suite 1100
Orange, California 92868-4653

                  Re:      Ameriquest Mortgage Securities Inc., Series 2002-D
                           --------------------------------------------------

Ladies and Gentlemen:

         In connection with our disposition of the above Certificates we certify
that (a) we understand that the Certificates have not been registered under the
Securities Act of 1933, as amended (the "Act"), and are being disposed by us in
a transaction that is exempt from the registration requirements of the Act, (b)
we have not offered or sold any Certificates to, or solicited offers to buy any
Certificates from, any person, or otherwise approached or negotiated with any
person with respect thereto, in a manner that would be deemed, or taken any
other action which would result in, a violation of Section 5 of the Act, (c) to
the extent we are disposing of a Class __ Certificate, we have no knowledge the
Transferee is not a Permitted Transferee and (d) no purpose of the proposed
disposition of a Class ___ Certificate is to impede the assessment or collection
of tax.

                                        Very truly yours,

                                        [NAME OF TRANSFEROR]

                                        By:___________________________________

                                       J-1

<PAGE>

                                    EXHIBIT K

                           FORM OF LIQUIDATION REPORT

Customer Name:

Account Number:

Original Principal Balance:

1        Type of Liquidation (REO disposition/charge-off/short pay-off)
         Date last paid
         Date of foreclosure
         Date of REO
         Date of REO Disposition
         Property Sale Price/Estimated Market Value at disposition

2.       Liquidation Proceeds
         Principal Prepayment $__________________
         Property Sale Proceeds _________________
         Insurance Proceeds _____________________
         Other (itemize) ________________________
         Total Proceeds $________________________

3.       Liquidation Expenses
         Servicing Advances $____________________
         Delinquency Advances ___________________
         Monthly Advances _______________________
         Servicing Fees _________________________
         Other Servicing Compensation ___________
         Total Advance $___________

4.       Net Liquidation Proceeds $__________

5.       (Item 2 minus Item 3)

6.       Principal Balance of Mortgage Loan $__________________

7.       Loss, if any (Item 5 minus Item 4) $__________________

                                       K-1

<PAGE>

                                    EXHIBIT L

                           AMERIQUEST MORTGAGE COMPANY
                             UNDERWRITING GUIDELINES

                             Available Upon Request

                                       L-1

<PAGE>

                                    EXHIBIT M

                       FORM OF LOAN DATA REMITTANCE REPORT

LOAN LEVEL REPORTING - LNS FILE FORMAT
                       ---

DO NOT INCLUDE HEADER OR TRAILER RECORDS IN FILES

DETAIL RECORD FIELDS:                                    FILE NAME: T0NNMMYY.LNS

<TABLE>
<CAPTION>
         DATA:             FIELD         FORMAT              FIELD                         DEFINITION
      T0NNMMYY.LNS          NBR                            POSITION
<S>                      <C>       <C>                 <C>               <C>
Blank                              9(X)                001-009           Filler data - Blank filled

Blank                    1         1(x)                010

MASTER SERVICER                    13(X)               011-023           UNIQUE LOAN NUMBER ASSIGNED TO THE
LOAN NO.                                                                 MORTGAGE BY THE SELLER/MASTER SERVICER

Blank                    2         1(x)                024               Due date of last full payment received from
Due Date of Last                   YYYYMMDD            025-0342          the borrower.
Paid                                                                     (Data is when payment was due)
Installment
(DDLPI)

Blank                    3         1(x)                033               Date of the last fully paid monthly
Last Payment                       YYYYMMDD            034-041           installment of principal, interest, and escrow
Received Date                                                            (if any) that was received from the borrower.
(LPRD)                                                                   Note: Dates of partial payments should not
                                                                         be entered here. (Data is when payment was
                                                                         actually received from the borrower) IF THIS
                                                                         INFORMATION IS NOT AVAILABLE, THEN POPULATE
                                                                         THE FIELD WITH THE DEFAULT VALUE OF 19000101.

Blank                    4         1(x)                042               Unpaid Principal balance should be reported
Unpaid Principal                   13.2                043-055           as follows:
Balance (UPB)                                                            * For loans in the REMIC trust, the mortgage
100%                                                                     UPB reduced by normal principal reduction,
                                                                         principal advances or prepayments.
                                                                         * FOR LOANS THAT ARE PAID IN FULL BY THE
                                                                         MORTGAGOR, REPURCHASED FROM THE REMIC TRUST,
                                                                         OR LIQUIDATED, REPORT THE UPB AS ZERO.

Blank                    5         1(x)                056               Gross/Coupon Interest

Interest Paid                      13.2                057-069

Blank                    6         1(x)                070               Total principal paid on the mortgage,
Principal Paid                     13.2                071-083           including any losses or advances. If the loan
                                                                         is repurchased or liquidated from the trust,
                                                                         it should be equivalent to the full remaining
                                                                         loan balance.

                                                          M-1

<PAGE>

         DATA:             FIELD         FORMAT              FIELD                         DEFINITION
      T0NNMMYY.LNS          NBR                            POSITION

Blank                    7         (1x)                084               This field should contain an exception code
Exception Code                     2(x)                085-086           only when exception activity occurs for that
                                                                         period, otherwise this field should contain a
                                                                         0. DEFAULT VALUE IS 0. 40 Inactivate loan 60
                                                                         Payoff - mortgage matured 61 Payoff - mortgage
                                                                         prepaid 65 Payoff - mortgage repurchased 69
                                                                         Payoff - mortgage liquidated 70 Transfer to
                                                                         REO 72 Foreclosure 80 Substituted Loan - Loan
                                                                         is added as a substitute for another loan 81
                                                                         Reinstated Loan - Loan was previously
                                                                         delinquent, but the borrower has brought it
                                                                         current 90 Loan Modified - This is an
                                                                         exceptional activity code which is reserved
                                                                         for future use. Modifications typically
                                                                         require repurchase 8 from the trust prior to
                                                                         modifying the loan.

Blank                    8         1(x)                087               Date the exception occurred.  If an exception
Exception Date                     YYYYMMDD            088-095           has not occurred, this field should contain
                                                                         the default value of 1900101.

Blank                              13.2                096-108           Filler - Blank filled

Blank                    9         1(X)                109               Filler - Blank filled
Mortgage Note Rate                 6.3                 110-115
                                                                         Rate associated with the borrower's schedule
                                                                         payment.

Blank                    10        1(x)                116
Mortgage P&I                       13.2                117-129           Principal and intrest portion of the borrowers
Amount                                                                   scheduled installment,  Note:  100% of the
                                                                         principal and interest amount should be
                                                                         entered in this field, including servicing and
                                                                         guarantee fees.

Blank                              1(x)                130

Realized Losses          11        13.2                131-143           Amount of realized losses for that period.

Blank                    12        1(x)                144               Total principal payments advanced by the
Cumulative                         13.2                145-157           Master Servicer and not repaid by the
Principal                                                                borrower.
Advances

Blank                    13        1(x)                158               Amount of interest payment advanced by the
Interest Advances                  13.2                159-171           Master Servicer for that period.

                                                        M-2

<PAGE>

         DATA:             FIELD         FORMAT              FIELD                         DEFINITION
      T0NNMMYY.LNS          NBR                            POSITION

Blank                              1(x)                172               Pertains to activity in the prior reporting
Loan Status              14        1(X)                173               cycle.
                                                                         0 - Active
                                                                         4 - Foreclosure
                                                                         5-REO
                                                                         6 - Closed (PAYOFFS &
                                                                         REPURCHASES)
                                                                         9 - Bankruptcy (OVERRIDES ACTIVE
                                                                         STATUS)

                                                                         Note: 30,60 & 90 day delinquency status will
                                                                         be derived from the DDLPI field.

Blank                              1(x)                174

Blank                              1(x)                174

Subservicer No.          15        6                   175-180           Subservicer ID# - #S/S# assigned by Freddie
Blank                              1(x)                181               Mac - 6 digits
Actual Loan              16        13.2                182-194
Balance                                                                  Actual loan balance outstanding from the
                                                                         borrower and does not include advances made by
                                                                         the servicer.

Blank                    17        (1x)                195               Applies only to ARM loans and reflects the
Next Interest Rate                 YYYYMMDD            196-203           next pending interest rate adjustment date.
Change Date                                                              DEFAULT IS 190000101.

Blank                    18        (1x)                204               Applies only to payment capped ARM loans
Next Interest                      YYYYMMDD            209-212           and reflects the next pending payment
Payment                                                                  adjustment date.  DEFAULT IS 190000101.
Change Date

Blank                    19        1(x)                213
Index Value at                     6.3                 214-219           The index rate used in determining the ARM
Reset                                                                    coupon.
Date                                                                     DEFAULT VALUE IS 0.

Blank                    20        1(x)                220               Should be populated in advance of the rate
Next Mortgage Rate                 6.3                 221-226           adjustment.  DEFAULT VALUE IS 0.
expected at reset
date

Blank                              1(x)                227

Collateral Group         21        2                   228-229           This is a collateral grouping number for
No. #                                                                    whole loan directed collateral deals.  DEFAULT
                                                                         VALUE IS 0.

Blank                              1(x)                230

                                                        M-3

<PAGE>

         DATA:             FIELD         FORMAT              FIELD                         DEFINITION
      T0NNMMYY.LNS          NBR                            POSITION

Current Arrearage        22        13.2                231-243           The current amount of cashflow applied to
Paid                                                                     the arrearage balance.  Applies to loans that
                                                                         have been or are currently in default.
                                                                         DEFAULT VALUE IS 0.

Blank                              1(x)                244

Outstanding              23        13.2                245-257           The total amount of outstanding interest
Arrearage Balance                                                        accrued under forbearance period, after
                                                                         current arrearage payment.  DEFAULT VALUE IS
                                                                         0.

Blank                              1(x)                258

FREDDIE MAC LOAN         24        13(X)               259-271           UNIQUE & PERMANENT LOAN NUMBER
NUMBER                                                                   ASSIGNED TO THE MORTGAGE BY FREDDIE MAC.
                                                                         USED FOR DISCLOSURE.

PREPAYMENT               25        13.2                272-274           THE BORROWERS PENALTY PAYMENT FOR
PREMIUM AMOUNT                                                           PREPAYING HIS MORTGAGE.  THIS AMOUNT IS
                                                                         ALLOCATED IN AGGREGATE AS A DIRECTED
                                                                         COLLATERAL AMOUNT TO A SPECIFIC BOND.
</TABLE>

                                                        M-4

<PAGE>

                                   EXHIBIT N

              FORM OF TRUSTEE'S REMITTANCE REPORT - BND FILE FORMAT
       (NOTE: THIS INFORMATION IS LOADED TO ASDB EVERY MONTH BY TOM HARTY)

DETAIL RECORD FIELDS:                                   FILE NAME:  TONNMMYY.BND

<TABLE>
<CAPTION>
                                     FLD                   FIELD
           FIELD NOTE                NBR       FORMA      POSITION                        DEFINITION
<S>                               <C>       <C>         <C>           <C>
Series# (Deal Identifier)         1         10(x)       001-010       As defined by issuer or as assigned - Tonn

Blank                                       1(x)        011

Class #                           2         (2x)        012-013       As assigned or determined by issuer.  Input
                                                                      default value if not applicable.

Blank                                       5(x)        014-018

CUSIP #                           3         9(x)        019-027       If not available, input default value.  Freddie
                                                                      Mac may provide dummy numbers, if CUSIP
                                                                      numbers are not assigned by the issuer.

Blank                                       1(x)        028

Coupon-- Current Pass-            4         6.3         029-034       Bond Coupon Rate
through Rate

Blank                                       1(x)        035

Original Face Value               5         13.2        035-          Par Value, original issue amount, of Class
                                                        048

Blank                                       1(x)        049

Beginning Unpaid Principal        6         13.2        050-062       Beginning Class UPB as of beginning of cycle
Balance

Blank                                       1(x)        063

Principal payment amount          7         13.2        064-076       Dollar amount of class principal payment

Blank                                       1(x)        077

Interest payment amount           8         13.2        078-090       Dollar amount of class interest payment

Blank                                       1(x)        091

Total Distribution                9         13.2        092-104       Dollar amount of principal & interest payment

Blank                                       1(x)        105

Deferred Interest                 10        13.2        106-118       Dollar amount of overcollateralization
                                                                      (Difference between security principal and
                                                                      mortgage principal balances applied this period.
                                                                      This can include non-cash allocations)

Blank                                       1(x)        119

                                                        N-1

<PAGE>

                                     FLD                   FIELD
           FIELD NOTE                NBR       FORMA      POSITION                        DEFINITION

Principal Loss                    11        1.32        120-132       Dollar amount of principal losses applied this
                                                                      period

Blank                                       1(x)        133

Interest Loss                     12        13.2        134-146       Dollar amount of interest losses applied this
                                                                      period

Blank                                       1(x)        147

Ending Unpaid Principal           13        13.2        148-160       Ending Class UPB as of beginning of cycle
Balance

Blank                                       1(x)        161

Principal Distribution Factor     14        9.7         162-170       Factor representing the principal payment
                                                                      divided by the Original UPB of the class.

Blank                                       1(x)        171

Interest Distribution Factor      15        9.7         172-180       Factor representing the interest payment divided
                                                                      by the Beginning UPB of the class.

Blank                                       1(x)        181

Prepayment Interest Shortfall     16        9.7         182-190       If loans were prepaid and an interest shortfall
                                                                      arose in this period, it should be entered in this
                                                                      field.  If not applicable, a zero should be used.

Blank                                       1(x)        191

Total Distribution Factor         17        9.7         192-200       Factor representing the combined principal and
                                                                      interest payment divided by the Original UPB of
                                                                      the class.

Blank                                       1(x)        201

Deferred Interest Factor          18        9.7         202-210       Factor representing any increase in residual
                                                                      class due to credit enhancement requirements.
                                                                      This is determined by dividing the increase
                                                                      amount by the original UPB.

Blank                                       1(x)        211

Ending Principal Balance          19        9.7         212-220       Ending UPB divided by original UPB.
Factor

Blank                                       1(x)        221

Remaining Unpaid Interest         20        13.2        222-234       If interest should be due, but not received on a
                                                                      given amount, then that amount should be
                                                                      entered.
</TABLE>

                                                        N-2

<PAGE>

                                    EXHIBIT O

                             FORM OF ADDITION NOTICE

                                                   ___________, 2002
Deutsche Bank National Trust Company
1761 East St. Andrew Place
Santa Ana, California 92705-4934

         Re:      Pooling and Servicing Agreement (the "POOLING AND SERVICING
                  AGREEMENT"), dated as of December 1, 2002 among Ameriquest
                  Mortgage Securities Inc., as Depositor, Ameriquest Mortgage
                  Company, as Originator and Master Servicer, the Federal Home
                  Loan Mortgage Corporation, as Guarantor and Deutsche Bank
                  National Trust Company, as Trustee with respect to Ameriquest
                  Mortgage Securities Inc., Series 2002-D
                  -------------------------------------------------------------

Ladies and Gentlemen:

         Pursuant to Section 2.08 of the referenced Pooling and Servicing
Agreement, Ameriquest Mortgage Securities Inc. has designated Subsequent
Mortgage Loans to be sold to the Trust on , 2002, with an aggregate principal
balance of $ . Capitalized terms not otherwise defined herein have the meaning
set forth in the Pooling and Servicing Agreement.

         Please acknowledge your receipt of this notice by countersigning the
enclosed copy in the space indicated below and returning it to the attention of
the undersigned.

                                        Very truly yours,

                                        AMERIQUEST MORTGAGE SECURITIES INC.

                                        By:________________________________
                                        Name:
                                        Title:

Acknowledged and Agreed:

DEUTSCHE BANK NATIONAL TRUST COMPANY

By:_________________________________
Name:
Title:

                                       O-1

<PAGE>

                                    EXHIBIT P

                     FORM OF SUBSEQUENT TRANSFER INSTRUMENT

                  Pursuant to this Subsequent Transfer Instrument, dated , 2002
(the "Instrument"), between Ameriquest Mortgage Securities Inc. as seller (the
"Depositor"), and Deutsche Bank National Trust Company, as trustee of the
Ameriquest Mortgage Securities Inc., Series 2002-D, as purchaser (the
"Trustee"), and pursuant to the Pooling and Servicing Agreement, dated as of
December 1, 2002 (the "Pooling and Servicing Agreement"), among the Depositor as
depositor, Ameriquest Mortgage Company as originator and master servicer, the
Trustee as trustee and Federal Home Loan Mortgage Corporation as guarantor with
respect to the Class A and Class S Certificates, the Depositor and the Trustee
agree to the sale by the Depositor and the purchase by the Trustee, on behalf of
the Trust, of the Mortgage Loans listed on the attached Schedule of Subsequent
Mortgage Loans (the "Subsequent Mortgage Loans").

                  Capitalized terms used but not otherwise defined herein shall
have the meanings set forth in the Pooling and Servicing Agreement.

                  Section 1.        CONVEYANCE OF SUBSEQUENT MORTGAGE LOANS.

                  (a) The Depositor does hereby sell, transfer, assign, set over
and convey to the Trustee, on behalf of the Trust, without recourse, all of its
right, title and interest in and to the Subsequent Mortgage Loans, and including
all amounts due on the Subsequent Mortgage Loans after the related Subsequent
Cut-off Date, and all items with respect to the Subsequent Mortgage Loans to be
delivered pursuant to Section 2.01 of the Pooling and Servicing Agreement;
provided, however that the Depositor reserves and retains all right, title and
interest in and to amounts due on the Subsequent Mortgage Loans on or prior to
the related Subsequent Cut-off Date. The Depositor, contemporaneously with the
delivery of this Agreement, has delivered or caused to be delivered to the
Trustee each item set forth in Section 2.01 of the Pooling and Servicing
Agreement. The transfer to the Trustee by the Depositor of the Subsequent
Mortgage Loans identified on the Subsequent Mortgage Loan Schedule shall be
absolute and is intended by the Depositor, the Master Servicer, the Trustee and
the Certificateholders to constitute and to be treated as a sale by the
Depositor to the Trust Fund.

                  (b) The Depositor, concurrently with the execution and
delivery hereof, does hereby transfer, assign, set over and otherwise convey to
the Trustee without recourse for the benefit of the Certificateholders all the
right, title and interest of the Depositor, in, to and under the Subsequent
Mortgage Loan Purchase Agreement, dated the date hereof, between the Depositor
as purchaser and the Master Servicer as seller, to the extent of the Subsequent
Mortgage Loans.

                  (c) Additional terms of the sale are set forth on Attachment A
hereto.

                  Section 2.        REPRESENTATIONS AND WARRANTIES; CONDITIONS
                                    PRECEDENT.

                  (a) The Depositor hereby confirms that each of the conditions
precedent set forth in Section 2.08 of the Pooling and Servicing Agreement are
satisfied as of the date hereof.

                                       P-1

<PAGE>

                  (b) All terms and conditions of the Pooling and Servicing
Agreement are hereby ratified and confirmed; provided, however, that in the
event of any conflict, the provisions of this Instrument shall control over the
conflicting provisions of the Pooling and Servicing Agreement.

                  Section 3.        RECORDATION OF INSTRUMENT.

                  To the extent permitted by applicable law, this Instrument, or
a memorandum thereof if permitted under applicable law, is subject to
recordation in all appropriate public offices for real property records in all
of the counties or other comparable jurisdictions in which any or all of the
properties subject to the Mortgages are situated, and in any other appropriate
public recording office or elsewhere, such recordation to be effected by the
Master Servicer at the Certificateholders'expense on direction of the related
Certificateholders, but only when accompanied by an Opinion of Counsel to the
effect that such recordation materially and beneficially affects the interests
of the Certificateholders or is necessary for the administration or servicing of
the Mortgage Loans.

                  Section 4         GOVERNING LAW.

                  This Instrument shall be construed in accordance with the laws
of the State of New York and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws, without giving
effect to principles of conflicts of law.

                  Section 5.        COUNTERPARTS.

                  This Instrument may be executed in one or more counterparts
and by the different parties hereto on separate counterparts, each of which,
when so executed, shall be deemed to be an original; such counterparts,
together, shall constitute one and the same instrument.

                                       P-2

<PAGE>

                  Section 6.        SUCCESSORS AND ASSIGNS.

                  This Instrument shall inure to the benefit of and be binding
upon the Depositor and the Trustee and their respective successors and assigns.

                                        AMERIQUEST MORTGAGE SECURITIES INC.

                                        By:________________________________
                                        Name:
                                        Title:

                                        DEUTSCHE BANK NATIONAL TRUST COMPANY, as
                                        Trustee

                                        By:________________________________
                                        Name:
                                        Title:

Attachments
-----------

A.       Additional terms of sale.
B.       Schedule of Subsequent Mortgage Loans.

                                       P-3

<PAGE>

                                  ATTACHMENT A
                                  ------------

                            ADDITIONAL TERMS OF SALE

         A.       General

                  1.       Subsequent Cut-off Date: ___________________, 2002
                  2.       Subsequent Transfer Date: __________________, 2002
                  3.       Aggregate Principal Balance of the Subsequent
                           Mortgage Loans as of the Subsequent Cut-off Date: $
                  4.       Purchase Price: 100.00%

         B. The following representations and warranties with respect to each
Subsequent Mortgage Loan determined as of the Subsequent Cut-off Date are true
and correct: (i) such Subsequent Mortgage Loan may not be 30 or more days
delinquent as of the related Subsequent Cut-off Date and such Subsequent
Mortgage Loan may not have been 30 or more days delinquent since origination;
(ii) the original term to stated maturity of such Subsequent Mortgage Loan will
not be less than _____ months and will not exceed 360 months; (iii) such
Subsequent Mortgage Loan will not have a Loan-to-Value ratio greater than
_____%; (iv) all such Subsequent Mortgage Loans will have, as of the applicable
Cut-off Date, a weighted average term since origination not in excess of 2
months; (v) such Subsequent Mortgage Loan will have an adjustable Mortgage Rate
that is not less than _____% per annum; (vi) such Subsequent Mortgage Loan will
have a Gross Margin not less than _____%; (vii) such Subsequent Mortgage Loan
must have a Maximum Mortgage Rate not less than _____%; (viii) such Subsequent
Mortgage Loan must have a Minimum Rate not less than %; (ix) such Subsequent
Mortgage Loan may not provide for negative amortization; (xi) such Subsequent
Mortgage Loan shall have been serviced by the Master Servicer since originated
or purchased by the Depositor; (xii) such Subsequent Mortgage Loan must have a
first payment date occurring on or before [month/year] and (xiii) such
Subsequent Mortgage Loan shall have been underwritten in accordance with the
Originator's underwriting criteria as described in the Information Circular.

         C. Following the purchase of any Subsequent Mortgage Loan by the Trust
all of the Mortgage Loans (including such Subsequent Mortgage Loans) as of the
Subsequent Cut-off Date: (i) will have a weighted average original term to
stated maturity of not more than 360 months, (ii) will have a weighted average
term since origination not in excess of - months; (iii) will have a weighted
average Mortgage Rate of not less than _____%, (iv) will have a weighted average
Loan-to-Value Ratio of not more than _____%, (v) will have a weighted average
Gross Margin that is not less than approximately _____%, (vi) will have a
weighted average Maximum Mortgage Rate of not less than %, (vii) will have a
weighted average Minimum Mortgage Rate of not less than _____%, (viii) will have
no Mortgage Loan with a Principal Balance that does not conform to Freddie Mac
guidelines, (ix) will be secured by Mortgaged Properties in any one state
representing no more than_____ % of the aggregate Principal Balance thereof, (x)
will be secured by Mortgaged Properties in any one zip code representing no more
than _____% of the aggregate Principal Balance thereof, (xi) will be secured by
non-owner-occupied Mortgaged Properties representing no more than _____% of the
aggregate Principal Balance thereof, (xii) will be secured by two- to
four-family Mortgaged Properties representing no more than _____% of the
aggregate Principal Balance thereof,

                                       P-4

<PAGE>

(xiii) will have a weighted average FICO score of the related mortgagor of not
less than ______, (xiv) will have a cash-out refinance loan purpose representing
no more than _____% of the aggregate Principal Balance of all of the Mortgage
Loans, (xv) will have Prepayment Charge provisions representing no less than
_____% of the aggregate Principal Balance of all of the Mortgage Loans, (xvi)
will have an Originator's risk grade of CC representing no more than _____% of
the aggregate Principal Balance of all of the Mortgage Loans, (xvii) will have
Mortgage Loans with an Originators risk grade of C representing no more than
_____% of the aggregate Principal Balance thereof, (xviii) will have Mortgage
Loans with an Originators risk grade of B representing no more than _____% of
the aggregate Principal Balance thereof, (xix) will have Mortgage Loans with a
Loan-to-Value Ratio at origination of 80.00% representing no more than _____% of
the aggregate Principal Balance thereof, (xx) will have Mortgage Loans with a
Loan-to-Value Ratio at origination in excess of 80.00% representing no more than
_____% of the aggregate Principal Balance thereof, (xxi) will have Mortgage
Loans with a Loan-to-Value Ratio at origination in excess of 90.00% representing
no more than % of the aggregate Principal Balance thereof, (xxii) will have
Mortgage Loans with a Loan-to-Value Ratio at origination in excess of 95.00%
representing no more than _____% of the aggregate Principal Balance thereof,
(xxiii) will have been underwritten in accordance with the Originators Full
Documentation Program representing not less than _____% of the aggregate
Principal Balance thereof, (xxiv) will have been underwritten in accordance with
the Originators Stated Income Documentation Program representing not more than %
of the aggregate Principal Balance thereof, (xxv) will have been underwritten in
accordance with the Originators Mortgage Credit Only Program representing not
more than _____% of the aggregate Principal Balance thereof, in each case, as
applicable, by aggregate Stated Principal Balance of the Mortgage Loans as of
the applicable Subsequent Cut-off Date, (xxvi) no more than _____% of the
aggregate Principal Balance thereof will have their first adjustment six months
following their date of origination, no less than _____% and no more than _____%
of the aggregate Principal Balance thereof will have their first adjustment 2
years following their date of origination and the remainder of the Mortgage
Loans will have their first adjustment 3 years following their date of
origination and (xviii) will have an average prepayment period of approximately
_____ months.

         D. In the sole discretion of the Guarantor, Subsequent Mortgage Loans
with characteristics varying from those set forth above may be purchased by the
Trust; provided, however that the addition of such Mortgage Loans will not
materially affect the aggregate characteristics of the Mortgage Pool.

                                       P-5

<PAGE>

                                  ATTACHMENT B

                      SCHEDULE OF SUBSEQUENT MORTGAGE LOANS

                                       P-6

<PAGE>

                                    EXHIBIT Q

                       FORM OF ERISA REPRESENTATION LETTER

                                           _____________, 200__

Ameriquest Mortgage Securities Inc.       Deutsche Bank National Trust Company
1100 Town & Country Road                  1761 East St. Andrew Place
Orange, California 92868                  Santa Ana, California 92705-4934

Ameriquest Mortgage Company
1100 Town & Country Road
Orange, California 92868

         Re:      Ameriquest Mortgage Securities Inc. Asset-Backed Pass-Through
                  Certificates, Series 2002-D, Class [CE], [P], [R] Dear Ladies
                  and Gentlemen:
                  -------------------------------------------------------------

                  __________________________________ (the "Transferee") intends
to acquire from _____________________ (the "Transferor") $____________ Initial
Certificate Principal Balance of Ameriquest Mortgage Securities Inc.,
Asset-Backed Pass-Through Certificates, Series 2002-D, Class ___ (the
"Certificates"), issued pursuant to a Pooling and Servicing Agreement (the
"Pooling and Servicing Agreement") dated as of December 1, 2002 among Ameriquest
Mortgage Securities Inc. as depositor (the "Depositor"), Ameriquest Mortgage
Company as master servicer (the "Master Servicer"), Deutsche Bank National Trust
Company as trustee (the "Trustee") and Federal Home Loan Mortgage Corporation as
guarantor with respect to the Class A and Class S Certificates (the
"Guarantor"). Capitalized terms used herein and not otherwise defined shall have
the meanings assigned thereto in the Pooling and Servicing Agreement. The
Transferee hereby certifies, represents and warrants to, and covenants with the
Depositor, the Trustee, the Guarantor and the Master Servicer that the following
statements are accurate:

                  The Certificates (i) are not being acquired by, and will not
be transferred to, any employee benefit plan within the meaning of section 3(3)
of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), or
other retirement arrangement, including individual retirement accounts and
annuities, Keogh plans and bank collective investment funds and insurance
company general or separate accounts in which such plans, accounts or
arrangements are invested, that is subject to Section 406 of ERISA or Section
4975 of the Internal Revenue Code of 1986 (the "Code") (any of the foregoing, a
"Plan"), (ii) are not being acquired with "plan assets" of a Plan within the
meaning of the Department of Labor ("DOL") regulation, 29 C.F.R. ss. 2510.3-101,
and (iii) will not be transferred to any entity that is deemed to be investing
in plan assets within the meaning of the DOL regulation at 29
C.F.R.ss.2510.3-101.

                                             Very truly yours,

                                             By: ______________________________
                                             Name:
                                             Title:

                                      Q-1

<PAGE>

                                   EXHIBIT R-1

        FORM CERTIFICATION TO BE PROVIDED BY THE DEPOSITOR WITH FORM 10-K

           Re:      Ameriquest Mortgage Securities Inc., Series 2002-D
                    Asset-Backed Certificates, Series 2002-D

                  I, John Grazer, the senior officer of Ameriquest Mortgage
Securities Inc. (the "Registrant") in charge of securitizations, certify that:

                  l. I have reviewed this annual report on Form 10-K, and all
reports on Form 8-K containing distribution and servicing reports filed in
respect of periods included in the year covered by this annual report, of
Registrant;

                  2. Based on my knowledge, the information in these reports,
taken as a whole, does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of
the circumstances under which such statements were made, not misleading as of
the last day of the period covered by this annual report;

                  3. Based on my knowledge, the distribution information and the
servicing information required to be provided to the Trustee by the Master
Servicer under the Pooling and Servicing Agreement is included in these reports;

                  4. I am responsible for reviewing the activities performed by
the Master Servicer under the Pooling and Servicing Agreement and based upon the
review required under the Pooling and Servicing Agreement, and except as
disclosed in the report, the Master Servicer has fulfilled its obligations under
the Pooling and Servicing Agreement; and

                  5. I have disclosed to the Registrant's certified public
accountants all significant deficiencies relating to the Master Servicer's
compliance with the minimum servicing standards in accordance with a review
conducted in compliance with the Uniform Single Attestation Program for Mortgage
Bankers or similar standard as set forth in the Pooling and Servicing Agreement.

                                      R-1-1

<PAGE>

                  Capitalized terms used but not defined herein have the
meanings ascribed to them in the Pooling and Servicing Agreement, dated December
1, 2002 (the "Pooling and Servicing Agreement"), among the Registrant as
depositor, Ameriquest Mortgage Company as master servicer, Federal Home Loan
Mortgage Corporation, as guarantor of the Class A Certificates and the Class S
Certificates and Deutsche Bank National Trust Company as trustee.

                                         AMERIQUEST MORTGAGE SECURITIES INC.

                                         By:____________________________________
                                         Name:
                                         Title:
                                         Date:

                                      R-1-2

<PAGE>

                                   EXHIBIT R-2

                            FORM CERTIFICATION TO BE
                      PROVIDED TO DEPOSITOR BY THE TRUSTEE

           Re:      Ameriquest Mortgage Securities Inc., Series 2002-D
                    Asset-Backed Certificates, Series 2002-D

                  I, [identify the certifying individual], a [title] of Deutsche
Bank National Trust Company, as Trustee, hereby certify to Ameriquest Mortgage
Securities Inc. (the "Depositor"), and its officers, directors and affiliates,
and with the knowledge and intent that they will rely upon this certification,
that:

                  1. I have reviewed the annual report on Form 10-K for the
fiscal year [___], and all reports on Form 8-K containing distribution reports
filed in respect of periods included in the year covered by that annual report,
of the Depositor relating to the above-referenced trust;

                  2. Based on my knowledge, the information in these
distribution reports prepared by the Trustee, taken as a whole, does not contain
any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under which
such statements were made, not misleading as of the last day of the period
covered by that annual report; and

                  3. Based on my knowledge, the distribution information
required to be provided by the Trustee under the Pooling and Servicing Agreement
is included in these distribution reports.

                  Capitalized terms used but not defined herein have the
meanings ascribed to them in the Pooling and Servicing Agreement, dated December
1, 2002 (the "Pooling and Servicing Agreement"), among the Registrant as
depositor, Ameriquest Mortgage Company as master servicer, Federal Home Loan
Mortgage Corporation, as guarantor of the Class A Certificates and the Class S
Certificates and Deutsche Bank National Trust Company as trustee.

                                   DEUTSCHE BANK NATIONAL TRUST
                                   COMPANY, as Trustee

                                   By:__________________________________
                                   Name:
                                   Title:
                                   Date:

                                      R-2-1

<PAGE>

                                    EXHIBIT S

                     FORM OF NOTICE FOR LOCATION OF ACCOUNTS

                                              December ___, 2002

Ameriquest Mortgage Securities Inc.
1100 Town & Country Road, Suite 1100
Orange, California 92868
Attn: General Counsel

Freddie Mac
8200 Jones Branch Drive
McLean, Virginia 22102

[NIMS INSURER]

         Re:      Pooling and Servicing Agreement (the "Pooling and Servicing
                  Agreement"), dated as of December 1, 2002 among Ameriquest
                  Mortgage Securities Inc., as Depositor, Ameriquest Mortgage
                  Company, as Seller and Master Servicer, the Federal Home Loan
                  Mortgage Corporation, as Guarantor of the Class A Certificates
                  and the Class S Certificates and Deutsche Bank National Trust
                  Company, as Trustee, with respect to Ameriquest Mortgage
                  Securities Inc., Series 2002-D
                  --------------------------------------------------------------

Dear Sirs:

                  Pursuant to Section 3.04(i) of the above referenced Pooling
and Servicing Agreement you are hereby notified of the location and the date of
establishment of the following accounts:

                  [Distribution Account
                  Initial Deposit Account
                  Interest Coverage Account
                  Net WAC Rate Carryover Reserve Account
                  Excess Net WAC Rate Reserve Fund
                  Pre-Funding Account]

                  The accounts were established on____________________, 2002,
are held at Deutsche Bank National Trust Company in New York, New York, and are
maintained by Deutsche Bank National Trust Company at 1761 East St. Andrew
Place, Santa Ana, California 92705.

S-1

<PAGE>

                  If you should have any questions, please feel free to contact
me at (714) 247-_______.

                                        Very truly yours,

                                        DEUTSCHE BANK NATIONAL TRUST
                                        COMPANY

                                        By:_______________________________
                                        Name:
                                        Title:

                                       S-2

<PAGE>

                     FORM OF NOTICE FOR LOCATION OF ACCOUNTS

                                               December __, 2002

Freddie Mac
8200 Jones Branch Drive
McLean, Virginia 22102

Deutsche Bank National Trust Company
1761 East St. Andrew Place
Santa Ana, California 92705

[NIMS INSURER]

         Re:      Pooling and Servicing Agreement (the "Pooling and Servicing
                  Agreement"), dated as of December 1, 2002 among Ameriquest
                  Mortgage Securities Inc., as Depositor, Ameriquest Mortgage
                  Company, as Seller and Master Servicer, the Federal Home Loan
                  Mortgage Corporation, as Guarantor of the Class A Certificates
                  and the Class S Certificates and Deutsche Bank National Trust
                  Company, as Trustee, with respect to Ameriquest Mortgage
                  Securities Inc., Series 2002-D
                  --------------------------------------------------------------

Dear Sirs:

                  Pursuant to Section 3.04(i) of the above referenced Pooling
and Servicing Agreement you are hereby notified of the location and the date of
establishment of the following account:

                  Collection Account

                  The accounts were established on____________________, 2002,
are held at Ameriquest Mortgage Company in Orange, California, and are
maintained by Ameriquest Mortgage Company at 1100 Town & Country Road, Suite
1100.

                                       S-3

<PAGE>

                  If you should have any questions, please feel free to contact
me at (714) 564-____.

                                              Very truly yours,

                                              AMERIQUEST MORTGAGE COMPANY

                                              By:_______________________________
                                              Name:
                                              Title:

                                       S-4

<PAGE>

                                   SCHEDULE I

                             MORTGAGE LOAN SCHEDULE

                                 Filed By Paper

<PAGE>

                                   SCHEDULE II

                           PREPAYMENT CHARGE SCHEDULE

                             Available Upon Request

<PAGE>

                                  SCHEDULE III

                               PMI MORTGAGE LOANS

                             Available Upon RequestAMERIQUEST MORTGAGE SECURITIES INC.

                                    Depositor

                           AMERIQUEST MORTGAGE COMPANY

                                 Master Servicer

                                       and

                      DEUTSCHE BANK NATIONAL TRUST COMPANY

                                     Trustee

                   ___________________________________________

                         POOLING AND SERVICING AGREEMENT
                          Dated as of December 1, 2002
                    _________________________________________

                     Asset-Backed Pass-Through Certificates

                                  Series 2002-5

<PAGE>

                                TABLE OF CONTENTS
                                -----------------

SECTION                                                                     PAGE
-------                                                                     ----

                                    ARTICLE I

                                   DEFINITIONS

1.01.   Defined Terms..........................................................6
1.02.   Allocation of Certain Interest Shortfalls.............................60
1.03    Rights of the NIMS Insurer............................................61

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                        ORIGINAL ISSUANCE OF CERTIFICATES

2.01.   Conveyance of Mortgage Loans..........................................63
2.02.   Acceptance of REMIC I by the Trustee..................................65
2.03.   Repurchase or Substitution of Mortgage Loans by the Originator
        or the Depositor; Payment of Prepayment Charge Payment Amounts........66
2.04.   [Reserved]............................................................70
2.05.   Representations, Warranties and Covenants of the Master Servicer......70
2.06.   Issuance of the REMIC I Regular Interests and the Class R-I Interest..73
2.07.   Conveyance of the REMIC I Regular Interests; Acceptance of
        REMIC II by the Trustee...............................................73
2.08.   Conveyance of the REMIC II Regular Interests; Acceptance of
        REMIC III by the Trustee..............................................73
2.09.   Issuance of Class R Certificates......................................74
2.10.   Conveyance of the Subsequent Mortgage Loans...........................74

                                   ARTICLE III

                          ADMINISTRATION AND SERVICING
                              OF THE MORTGAGE LOANS

w3.01.   Master Servicer to Act as Master Servicer............................78
3.02.   Collection of Certain Mortgage Loan Payments..........................80
3.03.   [Reserved]............................................................81
3.04.   Collection Account, Escrow Account and Distribution Account...........81
3.05.   Permitted Withdrawals From the Collection Account, Escrow Account
                 and Distribution Account.....................................85
3.06.   Investment of Funds in the Collection Account, the Escrow Account,
        the REO Account and the Distribution Account..........................88
3.07.   Payment of Taxes, Insurance and Other Charges.........................89
3.08.   Maintenance of Hazard Insurance.......................................90

                                       ii

<PAGE>

SECTION                                                                     PAGE
-------                                                                     ----

3.09.   Maintenance of Mortgage Blanket Insurance.............................90
3.10.   Fidelity Bond; Errors and Omissions Insurance.........................91
3.11.   Enforcement of Due-On-Sale Clauses; Assumption Agreements.............91
3.12.   Realization Upon Defaulted Mortgage Loans.............................92
3.13.   Title, Management and Disposition of REO Property.....................94
3.14.   [Reserved]............................................................97
3.15.   Reports of Foreclosure and Abandonment of Mortgaged Properties........97
3.16.   Optional Purchase of Defaulted Mortgage Loans.........................97
3.17.   Trustee to Cooperate; Release of Mortgage Files.......................98
3.18.   Servicing Compensation................................................99
3.19.   Statement as to Compliance...........................................100
3.20.   Independent Public Accountants' Servicing Report.....................100
3.21.   Access to Certain Documentation......................................101
3.22.   [Reserved]...........................................................101
3.23.   Advance Facility.....................................................101
3.24.   PMI Policy; Claims Under the PMI Policy..............................102

                                   ARTICLE IV

                         PAYMENTS TO CERTIFICATEHOLDERS

4.01.   Distributions........................................................103
4.02.   Statements to Certificateholders.....................................111
4.03.   Remittance Reports and Other Reports to the Trustee; Advances........115
4.04.   Allocation of Realized Losses........................................117
4.05.   Compliance with Withholding Requirements.............................119
4.06.   Commission Reporting.................................................119
4.07.   Pre-Funding Accounts.................................................122
4.08.   Interest Coverage Accounts...........................................122
4.09.   Net WAC Rate Carryover Reserve Account...............................123

                                    ARTICLE V

                                THE CERTIFICATES

5.01.   The Certificates.....................................................127
5.02.   Registration of Transfer and Exchange of Certificates................129
5.03.   Mutilated, Destroyed, Lost or Stolen Certificates....................134
5.04.   Persons Deemed Owners................................................134
5.05.   Certain Available Information........................................134

                                   ARTICLE VI

                                      iii

<PAGE>

SECTION                                                                     PAGE
-------                                                                     ----

                      THE DEPOSITOR AND THE MASTER SERVICER

6.01.   Liability of the Depositor and the Master Servicer...................136
6.02.   Merger or Consolidation of the Depositor or the Master Servicer......136
6.03.   Limitation on Liability of the Depositor, the Master Servicer
        and Others...........................................................136
6.04.   Limitation on Resignation of the Master Servicer.....................137
6.05.   Rights of the Depositor in Respect of the Master Servicer............138
6.06.   Sub-Servicing Agreements Between the Master Servicer and
        Sub-Servicers........................................................138
6.07.   Successor Sub-Servicers..............................................140
6.08.   Liability of the Master Servicer.....................................140
6.09.   No Contractual Relationship Between Sub-Servicers and the NIMS
        Insurer, the Trustee or Certificateholders...........................140
6.10.   Assumption or Termination of Sub-Servicing Agreements by Trustee.....141
6.11.   Sub-Servicing Accounts...............................................141

                                   ARTICLE VII

                                     DEFAULT

7.01.   Master Servicer Events of Default....................................142
7.02.   Trustee to Act; Appointment of Successor.............................144
7.03.   Notification to Certificateholders...................................146
7.04.   Waiver of Master Servicer Events of Default..........................146

                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

8.01.   Duties of Trustee....................................................148
8.02.   Certain Matters Affecting the Trustee................................149
8.03.   Trustee Not Liable for Certificates or Mortgage Loans................150
8.04.   Trustee May Own Certificates.........................................150
8.05.   Trustee's Fees and Expenses..........................................151
8.06.   Eligibility Requirements for Trustee.................................151
8.07.   Resignation and Removal of the Trustee...............................152
8.08.   Successor Trustee....................................................152
8.09.   Merger or Consolidation of Trustee...................................153
8.10.   Appointment of Co-Trustee or Separate Trustee........................153
8.11.   Appointment of Custodians............................................154
8.12.   Appointment of Office or Agency......................................155
8.13.   Representations and Warranties of the Trustee........................155

                                   ARTICLE IX

                                       iv
<PAGE>

SECTION                                                                     PAGE
-------                                                                     ----

                                   TERMINATION

9.01    Termination Upon Repurchase or Liquidation of All Mortgage Loans.....157
9.02    Additional Termination Requirements..................................159

                                    ARTICLE X

                                REMIC PROVISIONS

10.01.  REMIC Administration.................................................160
10.02.  Prohibited Transactions and Activities...............................162
10.03.  Master Servicer and Trustee Indemnification..........................163

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

11.01.  Amendment............................................................164
11.02.  Recordation of Agreement; Counterparts...............................165
11.03.  Limitation on Rights of Certificateholders...........................165
11.04.  Governing Law........................................................166
11.05.  Notices..............................................................166
11.06.  Severability of Provisions...........................................167
11.07.  Notice to Rating Agencies and the NIMS Insurer.......................167
11.08.  Article and Section References.......................................168
11.09.  Grant of Security Interest...........................................168
11.10   Third Party Rights...................................................169
11.11   NIMS Insurer's Rights................................................169

                                        v

<PAGE>

EXHIBITS

Exhibit A-1    Form of Class AF-1 Certificate
Exhibit A-2    Form of Class AF-2 Certificate
Exhibit A-3    Form of Class AF-3 Certificate
Exhibit A-4    Form of Class AF-4 Certificate
Exhibit A-5    Form of Class AV-1 Certificate
Exhibit A-6    Form of Class AV-2 Certificate
Exhibit A-7    Form of Class AV-3 Certificate
Exhibit A-8    Form of Class M-1 Certificate
Exhibit A-9    Form of Class M-2 Certificate
Exhibit A-10   Form of Class M-3 Certificate
Exhibit A-11   Form of Class CE Certificate
Exhibit A-12   Form of Class P Certificate
Exhibit A-13   Form of Class S Certificate
Exhibit A-14   Form of Class R Certificate
Exhibit B      Form of Lost Note Affidavit
Exhibit C-1    Form of Trustee's Initial Certification
Exhibit C-2    Form of Trustee "s Final Certification
Exhibit C-3    Form of Trustee's Receipt of Mortgage Note
Exhibit D      Form of Mortgage Loan Purchase Agreement
Exhibit E      Request for Release
Exhibit F-1    Form of Transferor Representation Letter and Form of Transferee
               Representation Letter in Connection with Transfer of Class CE and
               Class P Certificates Pursuant to Rule 144A Under the 1933 Act
Exhibit F-2    Form of Transfer Affidavit and Agreement and Form of Transferor
               Affidavit in Connection with Transfer of Residual Certificates
Exhibit G      Form of Certification with respect to ERISA and the Code Exhibit
               H Loss Mitigation Action Plan Exhibit I Form of Addition Notice
               Exhibit J Form of Subsequent Transfer Instrument Exhibit K Form
               of Notice for Location of Accounts
Exhibit L-1    Form of Certification to Be Provided by the Depositor with
               Form 10-K
Exhibit L-2    Form of Certification to Be Provided to Depositor by the Trustee

Schedule 1     Mortgage Loan Schedule
Schedule 2     Prepayment Charge Schedule
Schedule 3     PMI Mortgage Loans

                                       vi

<PAGE>

          This Pooling and Servicing Agreement, is dated and effective as of
December 1, 2002, among AMERIQUEST MORTGAGE SECURITIES INC., as Depositor,
AMERIQUEST MORTGAGE COMPANY, as Master Servicer and DEUTSCHE BANK NATIONAL TRUST
COMPANY, as Trustee.

                             PRELIMINARY STATEMENT:

          The Depositor intends to sell pass-through certificates (collectively,
the "Certificates"), to be issued hereunder in multiple classes, which in the
aggregate will evidence the entire beneficial ownership interest in each REMIC
(as defined herein) created hereunder. The Trust Fund will consist of a
segregated pool of assets consisting of the Mortgage Loans and certain other
related assets subject to this Agreement.

          As provided herein, the Trustee will elect to treat the segregated
pool of assets consisting of the Mortgage Loans and certain other related assets
(other than any Master Servicer Prepayment Charge Payment Amounts, the
Pre-Funding Accounts, the Interest Coverage Accounts, the Net WAC Rate Carryover
Reserve Account and any Subsequent Mortgage Loan Interest) subject to this
Agreement as a REMIC for federal income tax purposes, and such segregated pool
of assets will be designated as "REMIC I." The Class R-I Interest will be the
sole class of "residual interests" in REMIC I for purposes of the REMIC
Provisions (as defined herein). The following table irrevocably sets forth the
designation, the REMIC I Remittance Rate, the initial Uncertificated Balance
and, solely for purposes of satisfying Treasury regulation section
1.860G-1(a)(4)(iii), the "latest possible maturity date" for each of the REMIC I
Regular Interests (as defined herein). None of the REMIC I Regular Interests
will be certificated.

                     REMIC I                Initial            Latest Possible
Designation      Remittance Rate    Uncertificated Balance    Maturity Date(1)
-----------      ---------------    ----------------------    ----------------
   I-LT1           Variable(2)          $135,441,392.25       February 25, 2033
  I-LT1PF          Variable(2)          $ 41,763,216.49       February 25, 2033
   I-LT2           Variable(2)          $216,146,718.24       February 25, 2033
  I-LT2PF          Variable(2)          $ 66,648,573.02       February 25, 2033
   I-LTP           Variable(2)          $        100.00       February 25, 2033
_______________
(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date immediately following the maturity date
     for the Mortgage Loan with the latest maturity date has been designated as
     the "latest possible maturity date" for each REMIC I Regular Interest.
(2)  Calculated in accordance with the definition of "REMIC I Remittance Rate"
     herein.

<PAGE>

                                    REMIC II
                                    --------

          As provided herein, the Trustee will elect to treat the segregated
pool of assets consisting of the REMIC I Regular Interests as a REMIC for
federal income tax purposes, and such segregated pool of assets will be
designated as "REMIC II". The Class R-II Interest will be the sole class of
"residual interests" in REMIC II for purposes of the REMIC Provisions (as
defined herein). The following table irrevocably sets forth the designation, the
REMIC II Remittance Rate, the initial Uncertificated Balance and, solely for
purposes of satisfying Treasury regulation Section 1.860G- 1(a)(4)(iii), the
"latest possible maturity date" for each of the REMIC II Regular Interests (as
defined herein). None of the REMIC II Regular Interests will be certificated.

                   REMIC II              Initial               Latest Possible
Designation    Remittance Rate    Uncertificated Balance       Maturity Date(1)
-----------    ---------------    ----------------------       ----------------
  II-LT1         Variable(2)         $435,849,900.00          February 25, 2033
  II-LTS         Variable(2)         $ 24,150,000.00          February 25, 2033
  II-LTP         Variable(2)         $        100.00          February 25, 2033
________________
(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date immediately following the maturity date
     for the Mortgage Loan with the latest maturity date has been designated as
     the "latest possible maturity date" for each REMIC II Regular Interest.
(2)  Calculated in accordance with the definition of "REMIC II Remittance Rate"
     herein.

                                        2

<PAGE>

                                    REMIC III

          As provided herein, the Trustee will elect to treat the segregated
pool of assets consisting of the REMIC II Regular Interests as a REMIC for
federal income tax purposes, and such segregated pool of assets will be
designated as "REMIC III". The Class R-III Interest will be the sole class of
"residual interests" in REMIC III for purposes of the REMIC Provisions (as
defined herein). The following table irrevocably sets forth the designation, the
REMIC III Remittance Rate, the initial Uncertificated Balance and, solely for
purposes of satisfying Treasury regulation Section 1.860G- 1(a)(4)(iii), the
"latest possible maturity date" for each of the REMIC III Regular Interests (as
defined herein). None of the REMIC III Regular Interests will be certificated.

                    REMIC III              Initial              Latest Possible
Designation      Remittance Rate    Uncertificated Balance      Maturity Date(1)
-----------      ---------------    ----------------------     -----------------
 III-LTAA          Variable(2)         $450,799,902.00         February 25, 2033
 III-LTAF1         Variable(2)         $    363,000.00         February 25, 2033
 III-LTAF2         Variable(2)         $    248,000.00         February 25, 2033
 III-LTAF3         Variable(2)         $    117,640.00         February 25, 2033
 III-LTAF4         Variable(2)         $     80,960.00         February 25, 2033
 III-LTAV1         Variable(2)         $  1,688,400.00         February 25, 2033
 III-LTAV2         Variable(2)         $    850,000.00         February 25, 2033
 III-LTAV3         Variable(2)         $    700,000.00         February 25, 2033
 III-LTM1          Variable(2)         $    211,600.00         February 25, 2033
 III-LTM2          Variable(2)         $    161,000.00         February 25, 2033
 III-LTM3          Variable(2)         $    138,000.00         February 25, 2033
 III-LTZZ          Variable(2)         $  4,641,398.00         February 25, 2033
  III-LTS          Variable(2)              N/A(3)             February 25, 2033
  III-LTP          Variable(2)         $        100.00         February 25, 2033
________________
(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date immediately following the maturity date
     for the Mortgage Loan with the latest maturity date has been designated as
     the "latest possible maturity date" for each REMIC III Regular Interest.
(2)  Calculated in accordance with the definition of "REMIC III Remittance Rate"
     herein.
(3)  REMIC III Regular Interest III-LTS will not have an Uncertificated Balance,
     but will accrue interest on its Uncertificated Notional Amount outstanding
     from time to time which shall equal the aggregate Uncertificated Balances
     of REMIC II Interest II-LTS.

                                        3

<PAGE>

                                    REMIC IV
                                    --------

          As provided herein, the Trustee will elect to treat the segregated
pool of assets consisting of the REMIC III Regular Interests as a REMIC for
federal income tax purposes, and such segregated pool of assets will be
designated as "REMIC IV." The Class R-IV Interest will evidence the sole class
of "residual interests" in REMIC IV for purposes of the REMIC Provisions under
federal income tax law. The following table irrevocably sets forth the
designation, the Pass-Through Rate, the initial aggregate Certificate Principal
Balance and, solely for purposes of satisfying Treasury regulation section
1.860G-1(a)(4)(iii), the "latest possible maturity date" for the indicated
Classes of Certificates.

                                     Initial Aggregate
                                        Certificate           Latest Possible
Designation   Pass-Through Rate      Principal Balance        Maturity Date(1)
-----------   -----------------      -----------------       -----------------
Class AF-1      Variable(2)           $ 36,300,000.00        February 25, 2033
Class AF-2      Variable(2)           $ 24,800,000.00        February 25, 2033
Class AF-3      Variable(2)           $ 11,764,000.00        February 25, 2033
Class AF-4      Variable(2)           $  8,096,000.00        February 25, 2033
Class AV-1      Variable(2)           $168,840,000.00        February 25, 2033
Class AV-2      Variable(2)           $ 85,000,000.00        February 25, 2033
Class AV-3      Variable(2)           $ 70,000,000.00        February 25, 2033
 Class M-1      Variable(2)           $ 21,160,000.00        February 25, 2033
 Class M-2      Variable(2)           $ 16,100,000.00        February 25, 2033
 Class M-3      Variable(2)           $ 13,800,000.00        February 25, 2033
  Class S       Variable(2)                N/A(3)            February 25, 2033
 Class CE       Variable(3)           $  4,139,900.00        February 25, 2033
  Class P          N/A(4)             $        100.00        February 25, 2033
________________
(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date immediately following the maturity date
     for the Mortgage Loans with the latest maturity date has been designated as
     the "latest possible maturity date" for each Class of Certificates.
(2)  Calculated in accordance with the definition of "Pass-Through Rate" herein.
(3)  The Class S Certificates will not have a Certificate Principal Balance, but
     will receive all amounts distributed to REMIC III Regular Interest III-LTS.
(4)  The Class CE Certificates will accrue interest at their variable
     Pass-Through Rate on the Notional Amount of the Class CE Certificates
     outstanding from time to time which shall equal the Uncertificated Balance
     of the REMIC III Regular Interests. The Class CE Certificates will not
     accrue interest on their Certificate Principal Balance. The Class CE
     Certificates will also be entitled to Subsequent Mortgage Loan Interest, as
     a right with respect to a component of the Class CE Certificates that will
     not be treated as a REMIC regular interest but rather as separate interest
     strips from the Subsequent Mortgage Loans for a specified period of time.
(5)  The Class P Certificates will not accrue interest.

                                        4

<PAGE>

          As of the Cut-off Date, the Group I Mortgage Loans had an aggregate
Scheduled Principal Balance equal to $135,441,492.25 and the Group II Mortgage
Loans had an aggregate Scheduled Principal Balance equal to $216,146,718.24. The
amount deposited by the Depositor in the Group I Pre-Funding Account on the
Closing Date is the Original Group I Pre-Funded Amount and the amount deposited
by the Depositor in the Group II Pre-Funding Account on the Closing Date is the
Original Group II Pre-Funded Amount.

          In consideration of the mutual agreements herein contained, the
Depositor, the Master Servicer and the Trustee agree as follows:

                                        5

<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

          SECTION 1.01. Defined Terms.

          Whenever used in this Agreement, including, without limitation, in the
Preliminary Statement hereto, the following words and phrases, unless the
context otherwise requires, shall have the meanings specified in this Article.
Unless otherwise specified, all calculations described herein shall be made on
the basis of a 360-day year consisting of twelve 30-day months and all
calculations on each Regular Interest shall be made on the basis of a 360-day
year and the actual number of days in the month.

          "Accrued Certificate Interest": With respect to any Class of
Certificates (other than the Class P Certificates and the Residual Certificates)
and each Distribution Date, interest accrued during the related Interest Accrual
Period at the Pass-Through Rate for such Certificate for such Distribution Date
on the Certificate Principal Balance, in the case of the Class A Certificates
and the Mezzanine Certificates, or on the Notional Amount, in the case of the
Class S Certificates and the Class CE Certificates, of such Certificate
immediately prior to such Distribution Date. The Class P Certificates are not
entitled to distributions in respect of interest and, accordingly, will not
accrue interest. All distributions of interest on the Class AV Certificates and
the Mezzanine Certificates will be calculated on the basis of a 360-day year and
the actual number of days in the applicable Interest Accrual Period. All
distributions of interest on the Class AF Certificates, the Class S Certificates
and the Class CE Certificates will be based on a 360-day year consisting of
twelve 30- day months. Accrued Certificate Interest with respect to each
Distribution Date, as to any Class A Certificate, Mezzanine Certificate, Class S
Certificate or Class CE Certificate, shall be reduced by an amount equal to the
portion allocable to such Certificate pursuant to Section 1.02 hereof of the sum
of (a) the aggregate Prepayment Interest Shortfall, if any, for such
Distribution Date to the extent not covered by payments pursuant to Section
4.03(e) or allocated to the Class CE Certificates and (b) the aggregate amount
of any Relief Act Interest Shortfall, if any, for such Distribution Date. In
addition, Accrued Certificate Interest with respect to each Distribution Date,
as to any Class CE Certificate, shall be reduced by an amount equal to the
portion allocable to such Class CE Certificate of Realized Losses, if any,
pursuant to Section 4.04 hereof. Notwithstanding the foregoing, for federal
income tax purposes and under the REMIC Provisions, the Accrued Certificate
Interest for the Class S Certificates and any Distribution Date will be deemed
to be 100% of the Uncertificated Interest for REMIC III Regular Interest III-LTS
for such Distribution Date.

          "Addition Notice": With respect to the transfer of Subsequent Mortgage
Loans to the Trust Fund pursuant to Section 2.10, a notice of the Depositor's
designation of the Subsequent Mortgage Loans to be sold to the Trust Fund and
the aggregate Principal Balance of such Subsequent Mortgage Loans as of the
related Subsequent Cut-off Date. The Addition Notice shall be given not later
than three Business Days prior to the related Subsequent Transfer Date and shall
be substantially in the form of Exhibit I.

          "Adjustment Date": With respect to each Group II Mortgage Loan, the
first day of the month in which the Mortgage Rate of such Mortgage Loan changes
pursuant to the related

                                        6

<PAGE>

Mortgage Note. The first Adjustment Date following the Cut-off Date as to each
Group II Mortgage Loan is set forth in the Mortgage Loan Schedule.

          "Advance": As to any Mortgage Loan or REO Property, any advance made
by the Master Servicer in respect of any Distribution Date representing the
aggregate of all payments of principal and interest, net of the Servicing Fee,
that were due during the related Due Period on the Mortgage Loans and that were
delinquent on the related Determination Date, plus certain amounts representing
assumed payments not covered by any current net income on the Mortgaged
Properties acquired by foreclosure or deed in lieu of foreclosure as determined
pursuant to Section 4.03.

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

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

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

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

          "Available Funds": With respect to any Distribution Date, an amount
equal to (1) the sum of (a) the aggregate of the amounts on deposit in the
Collection Account and Distribution Account as of the close of business on the
related Determination Date, (b) the aggregate of any amounts received in respect
of an REO Property withdrawn from any REO Account and deposited in the
Distribution Account for such Distribution Date pursuant to Section 3.13, (c)
the aggregate of any amounts deposited in the Distribution Account by the Master
Servicer in respect of Prepayment Interest Shortfalls for such Distribution Date
pursuant to Section 4.03(e), (d) the aggregate of any Advances made by the
Master Servicer for such Distribution Date pursuant to Section 4.03, (e) the
aggregate of any advances made by the Trustee for such Distribution Date
pursuant to Section 7.02(b), (f) with respect to the Distribution Date
immediately following the end of the Funding Period, any amounts in the
Pre-Funding Accounts after giving effect to any purchase of Subsequent Mortgage
Loans, and (g) with respect to each Distribution Date during the Funding Period
and on the Distribution Date immediately following the end of the Funding
Period, any amounts withdrawn by the Trustee from the Interest Coverage Accounts
for distribution on the Certificates, reduced (to not less than zero) by (2) the
sum of (x) the portion of the amount described in clause (1)(a) above that
represents (i) Monthly Payments on the Mortgage Loans received from a Mortgagor
on or prior to the Determination Date but due during any Due Period subsequent
to the

                                        7

<PAGE>

related Due Period, (ii) Principal Prepayments on the Mortgage Loans received
after the related Prepayment Period (together with any interest payments
received with such Principal Prepayments to the extent they represent the
payment of interest accrued on the Mortgage Loans during a period subsequent to
the related Prepayment Period), (iii) Liquidation Proceeds and Insurance
Proceeds received in respect of the Mortgage Loans after the related Prepayment
Period, (iv) amounts reimbursable or payable to the Depositor, the Master
Servicer, the Trustee, the Originator or any Sub-Servicer pursuant to Section
3.05 or Section 3.06 or otherwise payable in respect of Extraordinary Trust Fund
Expenses, (v) Stayed Funds, (vi) the Trustee Fee payable from the Distribution
Account pursuant to Section 8.05, (vii) the PMI Insurer Fee payable to the PMI
Insurer from the Collection Account, (viii) amounts deposited in the Collection
Account or the Distribution Account in error and (ix) the amount of any
Prepayment Charges collected by the Master Servicer and the amount of any Master
Servicer Prepayment Charge Payment Amounts and (y) amounts reimbursable to the
Trustee for an advance made pursuant to Section 7.02(b) which advance the
Trustee has determined to be nonrecoverable from the Stayed Funds in respect of
which it was made.

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

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

          "Book-Entry Certificate": Any Certificate registered in the name of
the Depository or its nominee. Initially, the Book-Entry Certificates will be
the Class A Certificates and the Mezzanine Certificates.

          "Book-Entry Custodian": The custodian appointed pursuant to Section
5.01.

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

          "Cap Contracts": The Cap Contracts between the Trustee and the
counterparty thereunder, for the benefit of the Holders of the Class AV
Certificates and the Mezzanine Certificates.

          "Certificate": Any one of the Depositor's Asset-Backed Pass-Through
Certificates, Series 2002-5, Class AF-1, Class AF-2, Class AF-3, Class AF-4,
Class AV-1, Class AV-2, Class AV-3, Class M-1, Class M-2, Class M-3, Class S,
Class CE, Class P and Class R, issued under this Agreement.

          "Certificate Factor": With respect to any Class of Regular
Certificates as of any Distribution Date, a fraction, expressed as a decimal
carried to six places, the numerator of which is the aggregate Certificate
Principal Balance (or the Notional Amount, in the case of the Class S
Certificates and the Class CE Certificates) of such Class of Certificates on
such Distribution Date (after giving effect to any distributions of principal
and allocations of Realized Losses in reduction

                                        8

<PAGE>

of the Certificate Principal Balance (or the Notional Amount, in the case of the
Class S Certificates and the Class CE Certificates) of such Class of
Certificates to be made on such Distribution Date, and the denominator of which
is the initial aggregate Certificate Principal Balance (or the Notional Amount,
in the case of the Class S Certificates and the Class CE Certificates) of such
Class of Certificates as of the Closing Date.

          "Certificateholder" or "Holder": The Person in whose name a
Certificate is registered in the Certificate Register, except that a
Disqualified Organization or a Non-United States Person shall not be a Holder of
a Residual Certificate for any purposes hereof and, solely for the purposes of
giving any consent pursuant to this Agreement, any Certificate registered in the
name of the Depositor or the Master Servicer or any Affiliate thereof shall be
deemed not to be outstanding and the Voting Rights to which it is entitled shall
not be taken into account in determining whether the requisite percentage of
Voting Rights necessary to effect any such consent has been obtained, except as
otherwise provided in Section 11.01. The Trustee and the NIMS Insurer may
conclusively rely upon a certificate of the Depositor or the Master Servicer in
determining whether a Certificate is held by an Affiliate thereof. All
references herein to "Holders" or "Certificateholders" shall reflect the rights
of Certificate Owners as they may indirectly exercise such rights through the
Depository and participating members thereof, except as otherwise specified
herein; provided, however, that the Trustee and the NIMS Insurer shall be
required to recognize as a "Holder" or "Certificateholder" only the Person in
whose name a Certificate is registered in the Certificate Register.

          "Certificate Margin": With respect to the Class AV-1 Certificates and,
for purposes of the Marker Rate, REMIC III Regular Interest III-LTAV1, 0.52% in
the case of each Distribution Date through and including the first Distribution
Date on which the aggregate Stated Principal Balance of the Mortgage Loans (and
properties acquired in respect thereof) remaining in the Trust Fund is reduced
to less than 10% of the sum of the aggregate Principal Balance of the Initial
Mortgage Loans as of the Cut-off Date and the Original Pre-Funded Amounts, or
1.04%, in the case of any Distribution Date thereafter.

          With respect to the Class AV-2 Certificates and, for purposes of the
Marker Rate, REMIC III Regular Interest III-LTAV2, 0.20% in the case of any
Distribution Date.

          With respect to the Class AV-3 Certificates and, for purposes of the
Marker Rate, REMIC III Regular Interest III-LTAV3, 0.47% in the case of each
Distribution Date through and including the first Distribution Date on which the
aggregate Stated Principal Balance of the Mortgage Loans (and properties
acquired in respect thereof) remaining in the Trust Fund is reduced to less than
10% of the sum of the aggregate Principal Balance of the Initial Mortgage Loans
as of the Cut-off Date and the Original Pre-Funded Amounts, or 0.94%, in the
case of any Distribution Date thereafter.

          With respect to the Class M-1 Certificates and, for purposes of the
Marker Rate, REMIC III Regular Interest III-LTM1, 1.05% in the case of each
Distribution Date through and including the first Distribution Date on which the
aggregate Principal Balance of the Mortgage Loans (and properties acquired in
respect thereof) remaining in the Trust Fund is reduced to less than 10% of the
sum of the aggregate Principal Balance of the Initial Mortgage Loans as of the
Cut-off Date and the Original Pre-Funded Amounts, or 1.575%, in the case of any
Distribution Date thereafter.

                                        9

<PAGE>

          With respect to the Class M-2 Certificates and, for purposes of the
Marker Rate, REMIC III Regular Interest III-LTM2, 2.50% in the case of each
Distribution Date through and including the first Distribution Date on which the
aggregate Principal Balance of the Mortgage Loans (and properties acquired in
respect thereof) remaining in the Trust Fund is reduced to less than 10% of the
sum of the aggregate Principal Balance of the Initial Mortgage Loans as of the
Cut-off Date and the Original Pre-Funded Amounts, or 3.75%, in the case of any
Distribution Date thereafter.

          With respect to the Class M-3 Certificates and, for purposes of the
Marker Rate, REMIC III Regular Interest III-LTM3, 3.50% in the case of each
Distribution Date through and including the first Distribution Date on which the
aggregate Stated Principal Balance of the Mortgage Loans (and properties
acquired in respect thereof) remaining in the Trust Fund is reduced to less than
10% of the sum of the aggregate Principal Balance of the Initial Mortgage Loans
as of the Cut-off Date and the Original Pre-Funded Amounts, or 5.25%, in the
case of any Distribution Date thereafter.

          "Certificate Owner": With respect to a Book-Entry Certificate, the
Person who is the beneficial owner of such Certificate as reflected on the books
of the Depository or on the books of a Depository Participant or on the books of
an indirect participating brokerage firm for which a Depository Participant acts
as agent.

          "Certificate Principal Balance": With respect to each Class A
Certificate, Mezzanine Certificate or Class P Certificate as of any date of
determination, the Certificate Principal Balance of such Certificate on the
Distribution Date immediately prior to such date of determination, minus all
distributions allocable to principal made thereon and in the case of a Mezzanine
Certificate, Realized Losses allocated thereto on such immediately prior
Distribution Date (or, in the case of any date of determination up to and
including the first Distribution Date, the initial Certificate Principal Balance
of such Certificate, as stated on the face thereof). With respect to each Class
CE Certificate as of any date of determination, an amount equal to the
Percentage Interest evidenced by such Certificate times the excess, if any, of
(A) the then aggregate Uncertificated Balances of the REMIC III Regular
Interests over (B) the then aggregate Certificate Principal Balances of the
Class A Certificates, the Mezzanine Certificates and the Class P Certificates
then outstanding.

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

          "Class": Collectively, all of the Certificates bearing the same class
designation.

          "Class A Certificate": Any one of the Class AF Certificates or the
Class AV Certificates.

          "Class A Principal Distribution Amount": With respect to any
Distribution Date and the Class A Certificates, the excess of (x) the aggregate
Certificate Principal Balance of the Class A Certificates immediately prior to
such Distribution Date over (y) the lesser of (A) the product of (i) 76.00% and
(ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last
day of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal

                                       10

<PAGE>

received during the related Prepayment Period) and (B) the aggregate Stated
Principal Balance of the Mortgage Loans as of the last day of the related Due
Period (after giving effect to scheduled payments of principal due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) minus
$2,300,000.

          "Class AF Allocation Percentage": With respect to the Class AF
Certificates and any Distribution Date, the percentage equivalent of a fraction,
the numerator of which is (x) the aggregate Certificate Principal Balance of the
Class AF Certificates immediately prior to such Distribution Date and the
denominator of which is (y) the aggregate Certificate Principal Balance of the
Class AF Certificates and the Class AV Certificates immediately prior to such
Distribution Date.

          "Class AF Certificates": The Class AF-1 Certificates, the Class AF-2
Certificates, the Class AF-3 Certificates and the Class AF-4 Certificates.

          "Class AF-1 Certificate": Any one of the Class AF-1 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-1 and
evidencing a Regular Interest in REMIC IV for purposes of the REMIC Provisions.

          "Class AF-2 Certificate": Any one of the Class AF-2 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-2 and
evidencing a Regular Interest in REMIC IV for purposes of the REMIC Provisions.

          "Class AF-3 Certificate": Any one of the Class AF-3 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-3 and
evidencing a Regular Interest in REMIC IV for purposes of the REMIC Provisions.

          "Class AF-4 Certificate": Any one of the Class AF-4 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-4 and
evidencing a Regular Interest in REMIC IV for purposes of the REMIC Provisions.

          "Class AV Allocation Percentage": With respect to the Class AV
Certificates and any Distribution Date, the percentage equivalent of a fraction,
the numerator of which is (x) the aggregate Certificate Principal Balance of the
Class AV Certificates immediately prior to such Distribution Date and the
denominator of which is (y) the aggregate Certificate Principal Balance of the
Class AF Certificates and the Class AV Certificates immediately prior to such
Distribution Date.

          "Class AV Certificates": The Class AV-1 Certificates, the Class AV-2
Certificates and the Class AV-3 Certificates.

          "Class AV-1 Allocation Percentage": With respect to the Class AV-1
Certificates and any Distribution Date, the percentage equivalent of a fraction,
the numerator of which is (x) the

                                       11

<PAGE>

Certificate Principal Balance of the Class AV-1 Certificates immediately prior
to such Distribution Date and the denominator of which is (y) the aggregate
Certificate Principal Balance of the Class AV Certificates immediately prior to
such Distribution Date.

          "Class AV-2/3 Allocation Percentage": With respect to the Class AV-2
Certificates and the Class AV-3 Certificates and any Distribution Date, the
percentage equivalent of a fraction, the numerator of which is (x) the aggregate
Certificate Principal Balance of the Class AV-2 Certificates and the Class AV-3
Certificates immediately prior to such Distribution Date and the denominator of
which is (y) the aggregate Certificate Principal Balance of the Class AV
Certificates immediately prior to such Distribution Date.

          "Class AV-1 Certificates": Any one of the Class AV-1 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-5 and
evidencing a Regular Interest in REMIC IV for purposes of the REMIC Provisions.

          "Class AV-2 Certificates": Any one of the Class AV-2 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-6 and
evidencing a Regular Interest in REMIC IV for purposes of the REMIC Provisions.

          "Class AV-3 Certificates": Any one of the Class AV-3 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-7 and
evidencing a Regular Interest in REMIC IV for purposes of the REMIC Provisions.

          "Class CE Certificate": Any one of the Class CE Certificates executed
by the Trustee, and authenticated and delivered by the Certificate Registrar,
substantially in the form annexed hereto as Exhibit A-11 and evidencing a
Regular Interest in REMIC IV for purposes of the REMIC Provisions.

          "Class Exemption": A class exemption granted by the DOL, which
provides relief from certain of the prohibited transaction provisions of ERISA
and the related excise tax provisions of the Code.

          "Class M-1 Certificate": Any one of the Class M-1 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-8 and
evidencing a Regular Interest in REMIC IV for purposes of the REMIC Provisions.

          "Class M-1 Principal Distribution Amount": With respect to any
Distribution Date, the excess of (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account the
payment of the Class A Principal Distribution Amount on such Distribution Date),
and (ii) the Certificate Principal Balance of the Class M-1 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 85.20% and (ii) the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due

                                       12

<PAGE>

Period (after giving effect to scheduled payments of principal due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) and (B)
the aggregate Stated Principal Balance of the Mortgage Loans as of the last day
of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) minus $2,300,000.

          "Class M-2 Certificate": Any one of the Class M-2 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-9 and
evidencing a Regular Interest in REMIC IV for purposes of the REMIC Provisions.

          "Class M-2 Principal Distribution Amount": With respect to any
Distribution Date, the excess of (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account the
payment of the Class A Principal Distribution Amount on such Distribution Date),
(ii) the Certificate Principal Balance of the Class M-1 Certificates (after
taking into account the payment of the Class M-1 Principal Distribution Amount
on such Distribution Date) and (iii) the Certificate Principal Balance of the
Class M-2 Certificates immediately prior to such Distribution Date over (y) the
lesser of (A) the product of (i) 92.20% and (ii) the aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period) and (B) the aggregate
Stated Principal Balance of the Mortgage Loans as of the last day of the related
Due Period (after giving effect to scheduled payments of principal due during
the related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) minus
$2,300,000.

          "Class M-3 Certificate": Any one of the Class M-3 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-10 and
evidencing a Regular Interest in REMIC IV for purposes of the REMIC Provisions.

          "Class M-3 Principal Distribution Amount": With respect to any
Distribution Date, the excess of (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account the
payment of the Class A Principal Distribution Amount on such Distribution Date),
(ii) the Certificate Principal Balance of the Class M-1 Certificates (after
taking into account the payment of the Class M-1 Principal Distribution Amount
on such Distribution Date), (iii) the Certificate Principal Balance of the Class
M-2 Certificates (after taking into account the payment of the Class M-1
Principal Distribution Amount on such Distribution Date) and (iv) the
Certificate Principal Balance of the Class M-3 Certificates immediately prior to
such Distribution Date over (y) the lesser of (A) the product of (i) 98.20% and
(ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last
day of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as
of the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period,

                                       13

<PAGE>

to the extent received or advanced, and unscheduled collections of principal
received during the related Prepayment Period) minus $2,300,000.

          "Class P Certificate": Any one of the Class P Certificates executed by
the Trustee, and authenticated and delivered by the Certificate Registrar,
substantially in the form annexed hereto as Exhibit A-12, representing the right
to distributions as set forth herein and therein and evidencing a regular
interest in REMIC IV.

          "Class R Certificate": Any one of the Class R Certificates executed by
the Trustee, and authenticated and delivered by the Certificate Registrar,
substantially in the form annexed hereto as Exhibit A-14 and evidencing the
ownership of the Class R-I Interest, the Class R-II Interest, the Class R-III
Interest and the Class R-IV Interest.

          "Class R-I Interest": The uncertificated Residual Interest in REMIC I.

          "Class R-II Interest": The uncertificated Residual Interest in REMIC
II.

          "Class R-III Interest": The uncertificated Residual Interest in REMIC
III.

          "Class R-IV Interest": The uncertificated Residual Interest in REMIC
IV.

          "Class S Certificates": Any one of the Class S Certificates executed
by the Trustee, and authenticated and delivered by the Certificate Registrar,
substantially in the form annexed hereto as Exhibit A-13 and evidencing a
Regular Interest in REMIC IV for purposes of the REMIC Provisions.

          "Class S Rate": With respect to the Class S Certificates, (A) in the
case of the 1st Distribution Date through the 30th Distribution Date, a per
annum rate equal to the excess of (i) the REMIC II Remittance Rate for REMIC II
Regular Interest II-LTS over (ii) the excess (but not less than zero) of (x) the
REMIC II Remittance Rate for REMIC II Regular Interest II-LTS over (y) 6.00% per
annum; and (B) in the case of each Distribution Date thereafter, 0.00% per
annum.

          "Closing Date": December 5, 2002.

          "Code": The Internal Revenue Code of 1986.

          "Collection Account": The account or accounts created and maintained
by the Master Servicer pursuant to Section 3.04(a), which shall be entitled
"Ameriquest Mortgage Company, as Master Servicer for Deutsche Bank National
Trust Company, as Trustee, in trust for the registered holders of Ameriquest
Mortgage Securities Inc., Asset-Backed Pass-Through Certificates, Series
2002-5." The Collection Account must be an Eligible Account.

          "Commission": The Securities and Exchange Commission.

          "Compensating Interest": As defined in Section 4.03(e) hereof.

                                       14

<PAGE>

          "Corporate Trust Office": The principal corporate trust office of the
Trustee at which at any particular time its corporate trust business in
connection with this Agreement shall be administered, which office, at the date
of the execution of this instrument is located at 1761 East St. Andrew Place,
Santa Ana, CA 92705-4934, or at such other address as the Trustee may designate
from time to time by notice to the Certificateholders, the Depositor and the
Master Servicer.

          "Corresponding Certificate": With respect to (A)(i) REMIC III Regular
Interest III- LTAF1, (ii) REMIC III Regular Interest III-LTAF2, (iii) REMIC III
Regular Interest III-LTAF3, (iv) REMIC III Regular Interest III-LTAF4, (v) REMIC
III Regular Interest III-LTAV1, (vi) REMIC III Regular Interest III-LTAV2, (vii)
REMIC III Regular Interest III-LTAV3, (viii) REMIC III Regular Interest
III-LTM1, (ix) REMIC III Regular Interest III-LTM2, (x) REMIC III Regular
Interest III- LTM3, (xi) REMIC III Regular Interest III-LTS and (xii) REMIC III
Regular Interest III-LTP, (B)(i) the Class AF-1 Certificates, (ii) the Class
AF-2 Certificates, (iii) the Class AF-3 Certificates, (iv) the Class AF-4
Certificates, (v) the Class AV-1 Certificates, (vi) the Class AV-2 Certificates,
(vii) the Class AV-3 Certificates, (viii) the Class M-1 Certificates, (ix) the
Class M-2 Certificates, (x) the Class M-3 Certificates, (xi) the Class S
Certificates and (xii) Class P Certificates, respectively.

          "Credit Enhancement Percentage": For any Distribution Date, the
percentage equivalent of a fraction, calculated after taking into account
distributions of principal on the Mortgage Loans and distribution of the
Principal Distribution Amount to the Certificates then entitled to distributions
of principal on such Distribution Date, the numerator of which is the sum of the
aggregate Certificate Principal Balances of the Mezzanine Certificates and the
Class CE Certificates, and the denominator of which is the sum of (i) the
aggregate Stated Principal Balance of the Mortgage Loans as of the last day of
the related Due Period (after giving effect to scheduled payments of principal
due during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period) and (ii) the amount on deposit in the Pre-Funding Accounts, exclusive of
investment earnings therein.

          "Cumulative Loss Percentage": With respect to any Distribution Date,
the percentage equivalent of a fraction, the numerator of which is the aggregate
amount of Realized Losses incurred from the Cut-off Date to the last day of the
preceding calendar month and the denominator of which is the sum of (i) the
aggregate Stated Principal Balance of the Initial Mortgage Loans as of the Cut-
off Date and (ii) the Original Pre-Funded Amounts.

          "Custodian": A Custodian, which shall initially be Deutsche Bank
National Trust Company.

          "Cut-off Date": With respect to any Initial Mortgage Loan, the close
of business on the later of (i) the date of origination of such Mortgage Loan or
(ii) December 1, 2002. With respect to all Qualified Substitute Mortgage Loans,
their respective dates of substitution. References herein to the "Cut-off Date,"
when used with respect to more than one Mortgage Loan, shall be to the
respective Cut-off Dates for such Mortgage Loans.

          "Debt Service Reduction": With respect to any Mortgage Loan, a
reduction in the scheduled Monthly Payment for such Mortgage Loan by a court of
competent jurisdiction in a

                                       15

<PAGE>

proceeding under the Bankruptcy Code, except such a reduction resulting from a
Deficient Valuation.

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

          "Definitive Certificates": As defined in Section 5.01(b).

          "Deleted Mortgage Loan": A Mortgage Loan replaced or to be replaced by
a Qualified Substitute Mortgage Loan.

          "Delinquency Percentage": With respect to any Distribution Date, the
percentage equivalent of a fraction, the numerator of which is the aggregate
Stated Principal Balance of all Mortgage Loans as of the last day of the
previous calendar month that, as of such last day of the previous calendar
month, are 60 or more days delinquent (measured under the OTS delinquency
calculation methodology), are in foreclosure, have been converted to REO
Properties or have related borrowers that are the subject of bankruptcy
proceedings, and the denominator of which is the sum of (i) the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties as of the last day of
the previous calendar month and (ii) any amounts remaining on deposit in the
Pre- Funding Accounts; provided, however, that any Mortgage Loan purchased by
the Master Servicer or the NIMS Insurer pursuant to Section 3.16 shall not be
included in either the numerator or the denominator for purposes of calculating
the Delinquency Percentage.

          "Depositor": Ameriquest Mortgage Securities Inc., a Delaware
corporation, or its successor in interest.

          "Depository": The Depository Trust Company, or any successor
Depository hereafter named. The nominee of the initial Depository, for purposes
of registering those Certificates that are to be Book-Entry Certificates, is
CEDE & Co. The Depository shall at all times be a "clearing corporation" as
defined in Section 8-102(3) of the Uniform Commercial Code of the State of New
York and a "clearing agency" registered pursuant to the provisions of Section
17A of the Securities Exchange Act of 1934, as amended.

          "Depository Institution": Any depository institution or trust company,
including the Trustee, that (a) is incorporated under the laws of the United
States of America or any State thereof, (b) is subject to supervision and
examination by federal or state banking authorities and (c) has outstanding
unsecured commercial paper or other short-term unsecured debt obligations that
are rated P-1 by Moody's, F-1 by Fitch and A-1 by S&P (or comparable ratings if
Moody's, Fitch and S&P are not the Rating Agencies).

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

                                       16

<PAGE>

          "Determination Date": With respect to each Distribution Date, the 10th
day of the calendar month in which such Distribution Date occurs or, if such
10th day is not a Business Day, the Business Day immediately preceding such 10th
day.

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

          "Disqualified Organization": Any of the following: (i) the United
States, any State or political subdivision thereof, any possession of the United
States, or any agency or instrumentality of any of the foregoing (other than an
instrumentality which is a corporation if all of its activities are subject to
tax and, except for Freddie Mac, a majority of its board of directors is not
selected by such governmental unit), (ii) any foreign government, any
international organization, or any agency or instrumentality of any of the
foregoing, (iii) any organization (other than certain farmers' cooperatives
described in Section 521 of the Code) which is exempt from the tax imposed by
Chapter 1 of the Code (including the tax imposed by Section 511 of the Code on
unrelated business taxable income), (iv) rural electric and telephone
cooperatives described in Section 1381(a)(2)(C) of the Code, (v) an "electing
large partnership" and (vi) any other Person so designated by the Trustee based
upon an Opinion of Counsel that the holding of an Ownership Interest in a
Residual Certificate by such Person may cause any Trust REMIC or any Person
having an Ownership Interest in any Class of Certificates (other than such
Person) to incur a liability for any federal tax imposed under the Code that
would not otherwise be imposed but for the Transfer of an Ownership Interest in
a Residual Certificate to such Person. The terms "United States," "State" and
"international organization" shall have the meanings set forth in Section 7701
of the Code or successor provisions.

          "Distribution Account": The trust account or accounts created and
maintained by the Trustee pursuant to Section 3.04(e) which shall be entitled
"Deutsche Bank National Trust Company, as Trustee, in trust for the registered
holders of Ameriquest Mortgage Securities Inc., Asset-Backed Pass-Through
Certificates, Series 2002-5." The Distribution Account must be an Eligible
Account.

          "Distribution Date": The 25th day of any month, or if such 25th day is
not a Business Day, the next succeeding Business Day, commencing in January
2003.

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

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

                                       17

<PAGE>

          "Eligible Account": Any of (i) an account or accounts maintained with
a Depository Institution or trust company the short-term unsecured debt
obligations of which are rated P-1 by Moody's, F-1 by Fitch and A-1+ by S&P (or
comparable ratings if Moody's, Fitch and S&P are not the Rating Agencies) at the
time any amounts are held on deposit therein, (ii) an account or accounts the
deposits in which are fully insured by the FDIC or (iii) a trust account or
accounts maintained with the corporate trust department of a federal or state
chartered depository institution or trust company acting in its fiduciary
capacity. Eligible Accounts may bear interest.

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

          "Escrow Account": The account or accounts created and maintained
pursuant to Section 3.04(c).

          "Escrow Payments": The amounts constituting taxes, and/or fire and
hazard insurance premiums escrowed by the Mortgagor with the mortgagee pursuant
to a voluntary escrow agreement related to any Mortgage Loan.

          "Estate in Real Property": A fee simple estate or leasehold estate in
a parcel of land.

          "Excess Overcollateralized Amount": With respect to the Class A
Certificates and the Mezzanine Certificates and any Distribution Date, the
excess, if any, of (i) the Overcollateralized Amount for such Distribution Date
(calculated for this purpose only after assuming that 100% of the Principal
Remittance Amount on such Distribution Date has been distributed) over (ii) the
Overcollateralization Target Amount for such Distribution Date.

          "Expense Adjusted Maximum Mortgage Rate": With respect to any Mortgage
Loan (or the related REO Property), as of any date of determination, a per annum
rate of interest equal to the applicable Mortgage Rate (in the case of any Group
I Mortgage Loan) or Maximum Mortgage Rate (in the case of any Group II Mortgage
Loan) thereon as of the first day of the month preceding the month in which the
Distribution Date occurs minus the sum of (i) the Trustee Fee Rate, (ii) the
Servicing Fee Rate and (iii) the PMI Insurer Fee Rate, if applicable.

          "Expense Adjusted Net Mortgage Rate": With respect to any Mortgage
Loan (or the related REO Property), as of any date of determination, a per annum
rate of interest equal to the applicable Mortgage Rate thereon as of the first
day of the month preceding the month in which the Distribution Date occurs minus
the sum of (i) the Trustee Fee Rate, (ii) the Servicing Fee Rate and (iii) the
PMI Insurer Fee Rate, if applicable.

          "Extraordinary Trust Fund Expense": Any amounts reimbursable to the
Trustee, or any director, officer, employee or agent of the Trustee, from the
Trust Fund pursuant to Section 8.05, any amounts payable from the Distribution
Account in respect of taxes pursuant to Section 10.01(g)(iii) and any amounts
payable by the Trustee for the recording of the assignments of mortgage pursuant
to Section 2.01.

          "Fannie Mae": Fannie Mae, formally known as the Federal National
Mortgage Association, or any successor thereto.

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<PAGE>

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

          "Final Recovery Determination": With respect to any defaulted Mortgage
Loan or any REO Property (other than a Mortgage Loan or REO Property purchased
by the Originator, the Depositor or the Master Servicer pursuant to or as
contemplated by Section 2.03, Section 3.16(a) or Section 9.01), a determination
made by the Master Servicer that all Insurance Proceeds, Liquidation Proceeds
and other payments or recoveries which the Master Servicer, in its reasonable
good faith judgment, expects to be finally recoverable in respect thereof have
been so recovered. The Master Servicer shall maintain records, prepared by a
Servicing Officer, of each Final Recovery Determination made thereby.

          "Fitch": Fitch Ratings, or its successor in interest.

          "Formula Rate": For any Distribution Date and the Class AV
Certificates and the Mezzanine Certificates, the lesser of (i) LIBOR plus the
related Certificate Margin and (ii) the Maximum Cap Rate.

          "Freddie Mac": Freddie Mac, formally known as the Federal Home Loan
Mortgage Corporation, or any successor thereto.

          "Funding Period": The period beginning on the Closing Date and ending
on the earlier of the date on which (a) the amount on deposit in the Pre-Funding
Accounts is reduced to zero or (b) 2:00 p.m., New York City time, on February
10, 2003.

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

          "Group I Interest Coverage Account": The account established and
maintained pursuant to Section 4.08.

          "Group I Mortgage Loan": A first lien Mortgage Loan which provides for
a fixed Mortgage Rate payable with respect thereto. The Group I Mortgage Loans
are identified as such on the Mortgage Loan Schedule.

          "Group I Pre-Funding Account": The account established and maintained
pursuant to Section 4.07.

          "Group II Interest Coverage Account": The account established and
maintained pursuant to Section 4.08.

          "Group II Mortgage Loan": Each of the Mortgage Loans identified in the
Mortgage Loan Schedule as having a Mortgage Rate that is subject to adjustment.
The Group II Mortgage Loans are identified as such on the Mortgage Loan
Schedule.

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<PAGE>

          "Group II Pre-Funding Account": The account established and maintained
pursuant to Section 4.07.

          "Indenture": An indenture relating to the issuance of notes which may
or may not be guaranteed by the NIMS Insurer.

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

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

          "Index": With respect to each Group II Mortgage Loan and each related
Adjustment Date, the average of the interbank offered rates for six-month United
States dollar deposits in the London market as published in THE WALL STREET
JOURNAL and as most recently available as of the first business day 45 days or
more prior to such Adjustment Date, as specified in the related Mortgage Note.

          "Initial Mortgage Loan": Any of the Mortgage Loans included in REMIC I
as of the Closing Date.

          "Insurance Proceeds": Proceeds of any title policy, hazard policy or
other insurance policy, including the PMI Policy, covering a Mortgage Loan, to
the extent such proceeds are not to be applied to the restoration of the related
Mortgaged Property or released to the Mortgagor in accordance with the
procedures that the Master Servicer would follow in servicing mortgage loans

                                       20

<PAGE>

held for its own account, subject to the terms and conditions of the related
Mortgage Note and Mortgage.

          "Interest Accrual Period": With respect to any Distribution Date and
the Class AV Certificates and the Mezzanine Certificates, the period commencing
on the Distribution Date in the month immediately preceding the month in which
such Distribution Date occurs (or, in the case of the first Distribution Date,
commencing on the Closing Date) and ending on the day preceding such
Distribution Date. With respect to any Distribution Date and the Class AF
Certificates, the Class S Certificates, the Class CE Certificates, the REMIC III
Regular Interests, the REMIC II Regular Interests and the REMIC I Regular
Interests, the one-month period ending on the last day of the calendar month
preceding the month in which such Distribution Date occurs.

          "Interest Carry Forward Amount": With respect to any Distribution Date
and any Class of Class A Certificates, Class S Certificates or Mezzanine
Certificates, the sum of (i) the amount, if any, by which (a) the Interest
Distribution Amount for such Class of Certificates as of the immediately
preceding Distribution Date exceeded (b) the actual amount distributed on such
Class of Certificates in respect of interest on such immediately preceding
Distribution Date and (ii) the amount of any Interest Carry Forward Amount for
such Class of Certificates remaining unpaid from the previous Distribution Date,
plus accrued interest on such sum calculated at the related Pass- Through Rate
for the most recently ended Interest Accrual Period.

          "Interest Coverage Accounts": The Group I Interest Coverage Account
and the Group II Interest Coverage Account.

          "Interest Coverage Amounts": The amount to be paid by the Depositor to
the Trustee for deposit into the Interest Coverage Account on the Closing Date
pursuant to Section 4.08, which amount, with respect to the Group I Mortgage
Loans is $424,285.20 and with respect to the Group II Mortgage Loans is
$731,468.84. . "Interest Determination Date": With respect to the Class AV
Certificates, the Mezzanine Certificates, and solely for purposes of calculating
the Marker Rate REMIC III Regular Interest III-LTAV1, REMIC III Regular Interest
III-LTAV2, REMIC III Regular Interest III-LTAV3, REMIC III Regular Interest
III-LTM1, REMIC III Regular Interest III-LTM2 and REMIC III Regular Interest
III-LTM3 and any Interest Accrual Period therefor, the second London Business
Day preceding the commencement of such Interest Accrual Period.

          "Interest Distribution Amount": With respect to any Distribution Date
and any Class A Certificate, any Mezzanine Certificate, any Class S Certificate
and any Class CE Certificate, the aggregate Accrued Certificate Interest on the
Certificates of such Class for such Distribution Date.

          "Interest Remittance Amount": With respect to any Distribution Date,
that portion of the Available Funds for such Distribution Date allocable to
interest on the Mortgage Loans.

          "Late Collections": With respect to any Mortgage Loan and any Due
Period, all amounts received subsequent to the Determination Date immediately
following such Due Period, whether as late payments of Monthly Payments or as
Insurance Proceeds, Liquidation Proceeds or

                                       21

<PAGE>

otherwise, which represent late payments or collections of principal and/or
interest due (without regard to any acceleration of payments under the related
Mortgage and Mortgage Note) but delinquent for such Due Period and not
previously recovered.

          "Liquidation Event": With respect to any Mortgage Loan, any of the
following events: (i) such Mortgage Loan is paid in full; (ii) a Final Recovery
Determination is made as to such Mortgage Loan; or (iii) such Mortgage Loan is
removed from REMIC I by reason of its being purchased, sold or replaced pursuant
to or as contemplated by Section 2.03, Section 3.16(a) or Section 9.01. With
respect to any REO Property, either of the following events: (i) a Final
Recovery Determination is made as to such REO Property; or (ii) such REO
Property is removed from REMIC I by reason of its being purchased pursuant to
Section 9.01.

          "Liquidation Proceeds": The amount (other than Insurance Proceeds or
amounts received in respect of the rental of any REO Property prior to REO
Disposition) received by the Master Servicer in connection with (i) the taking
of all or a part of a Mortgaged Property by exercise of the power of eminent
domain or condemnation, (ii) the liquidation of a defaulted Mortgage Loan
through a trustee's sale, foreclosure sale or otherwise, or (iii) the
repurchase, substitution or sale of a Mortgage Loan or an REO Property pursuant
to or as contemplated by Section 2.03, Section 3.13, Section 3.16(a) or Section
9.01.

          "Loan Group": Loan Group I or Loan Group II, as the context requires.

          "Loan Group I": The group of Mortgage Loans identified in the Mortgage
Loan Schedule as having been assigned to Loan Group I.

          "Loan Group II": The group of Mortgage Loans identified in the
Mortgage Loan Schedule as having been assigned to Loan Group II.

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

          "Lockout Certificate Percentage": With respect to the Class AF-4
Certificates and any Distribution Date, the percentage equal to the aggregate
Certificate Principal Balance of the Class AF-4 Certificates immediately prior
to such Distribution Date divided by the aggregate Certificate Principal
Balances of the Class AF Certificates immediately prior to such Distribution
Date.

          "Lockout Distribution Percentage": With respect to the Class AF-4
Certificates and any Distribution Date, the indicated percentage of the Lockout
Certificate Percentage for such Distribution Date:

  DISTRIBUTION DATE OCCURRING IN              PERCENTAGE
----------------------------------         ----------------
January 2003 through December 2005                0%
January 2006 through December 2007               45%
January 2008 through December 2008               80%

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<PAGE>

January 2009 through December 2009              100%
January 2010 and thereafter                     300%

          "London Business Day": Any day on which banks in the City of London
are open and conducting transactions in United States dollars.

          "Loss Mitigation Action Plan": The policies and procedures set forth
in Exhibit H hereto relating to the realization on delinquent Mortgage Loans,
which are incorporated by reference into this Agreement shall be deemed a part
hereof.

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

          "Marker Rate": With respect to the Class CE Certificates and any
Distribution Date, a per annum rate equal to two (2) times the weighted average
of the REMIC III Remittance Rate for each of the REMIC III Regular Interests
(other than REMIC III Regular Interest III-LTAA, REMIC III Regular Interest
III-LTS and REMIC III Regular Interest III-LTP), with the rate on each REMIC III
Regular Interest subject to a cap equal to the Pass-Through Rate (in the case of
REMIC III Regular Interest III-LTAF1, REMIC III Regular Interest III-LTAF2,
REMIC III Regular Interest III- LTAF3 and REMIC III Regular Interest III-LTAF4)
or the related Formula Rate (in the case of REMIC III Regular Interest
III-LTAV1, REMIC III Regular Interest III-LTAV2, REMIC III Regular Interest
III-LTAV3, REMIC III Regular Interest III-LTM1, REMIC III Regular Interest
III-LTM2 and REMIC III Regular Interest III-LTM3) for the purpose of this
calculation for such Distribution Date and with the rate on REMIC III Regular
Interest III-LTZZ subject to a cap of zero for the purpose of this calculation:
provided, however, that solely for this purpose, calculations of the REMIC III
Remittance Rate and the related caps with respect to REMIC III Regular Interest
III-LTAV1, REMIC III Regular Interest III-LTAV2, REMIC III Regular Interest
III-LTAV3, REMIC III Regular Interest III-LTM1, REMIC III Regular Interest
III-LTM2 and REMIC III Regular Interest III-LTM3 shall be multiplied by a
fraction, the numerator of which is the actual number of days in the Interest
Accrual Period and the denominator of which is 30.

          "Master Servicer": Ameriquest Mortgage Company or any successor master
servicer appointed as herein provided, in its capacity as Master Servicer
hereunder.

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

          "Master Servicer Prepayment Charge Payment Amount": The amounts
payable by the Master Servicer pursuant to Section 2.03(b) in respect of any
waived (or, with respect to subsequent changes of law, any unenforceable)
Prepayment Charges.

                                       23

<PAGE>

          "Master Servicer Remittance Date": With respect to any Distribution
Date, 3:00 p.m. New York time on the last Business Day preceding the related
Distribution Date.

          "Master Servicer Reporting Date": With respect to any Distribution
Date, 3:00 p.m. New York time on the 18th day of the calendar month in which
such Distribution Date occurs or, if such 18th day is not a Business Day, the
Business Day immediately succeeding such 18th day.

          "Master Servicer Termination Test": With respect to any Distribution
Date, the Master Servicer Termination Test will be failed if the Cumulative Loss
Percentage exceeds 4.00%.

          "Maximum Cap Rate": For any Distribution Date with respect to the
Class AV Certificates and the Mezzanine Certificates, a per annum rate equal to
the product of (x)(A) the weighted average of the Expense Adjusted Maximum
Mortgage Rates of the Mortgage Loans, weighted on the basis of the outstanding
Stated Principal Balances of the Mortgage Loans as of the first day of the month
preceding the month of such Distribution Date less (B) the Pass-Through Rate for
the Class S Certificates for such Distribution Date multiplied by a fraction,
the numerator of which is the Notional Amount for the Class S Certificates
immediately prior to such Distribution Date and the denominator of which is the
aggregate outstanding Stated Principal Balance of the Mortgage Loans as of the
first day of the month preceding the month of such Distribution Date and any
amounts remaining in the Pre-Funding Accounts (exclusive of any investment
income therein) and (y) a fraction, the numerator of which is 30 and the
denominator of which is the actual number of days elapsed in the related
Interest Accrual Period.

          "Maximum II-LTZZ Uncertificated Interest Deferral Amount": With
respect to any Distribution Date, the excess of (i) accrued interest at the
REMIC III Remittance Rate applicable to REMIC III Regular Interest III-LTZZ for
such Distribution Date on a balance equal to the Uncertificated Balance of REMIC
III Regular Interest III-LTZZ minus the REMIC III Overcollateralization Amount,
in each case for such Distribution Date, over (ii) Uncertificated Interest on
REMIC III Regular Interest III-LTAF1, REMIC III Regular Interest III-LTAF2,
REMIC III Regular Interest III-LTAF3, REMIC III Regular Interest III-LTAF4,
REMIC III Regular Interest III-LTAV1, REMIC III Regular Interest III-LTAV2,
REMIC III Regular Interest III-LTAV3, REMIC III Regular Interest III-LTM1, REMIC
III Regular Interest III-LTM2 and REMIC III Regular Interest III-LTM3 for such
Distribution Date, with the rate on each such REMIC III Regular Interest subject
to a cap equal to the Pass-Through Rate (in the case of REMIC III Regular
Interest III-LTAF1, REMIC III Regular Interest III-LTAF2, REMIC III Regular
Interest III-LTAF3 and REMIC III Regular Interest III-LTAF4) or the related
Formula Rate (in the case of REMIC III Regular Interest III-LTAV1, REMIC III
Regular Interest III-LTAV2, REMIC III Regular Interest III-LTAV3, REMIC III
Regular Interest III-LTM1, REMIC III Regular Interest III-LTM2 and REMIC III
Regular Interest III-LTM3), provided, however, that solely for this purpose,
calculations of the REMIC III Remittance Rate and the related caps with respect
to REMIC III Regular Interest III-LTAV1, REMIC III Regular Interest III-LTAV2,
REMIC III Regular Interest III-LTAV3, REMIC III Regular Interest III-LTM1, REMIC
III Regular Interest III-LTM2 and REMIC III Regular Interest III-LTM3 shall be
multiplied by a fraction, the numerator of which is the actual number of days in
the Interest Accrual Period and the denominator of which is 30.

                                       24

<PAGE>

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

          "Mezzanine Certificate": Any Class M-1 Certificates, Class M-2
Certificates or Class M-3 Certificates.

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

          "Monthly Payment": With respect to any Mortgage Loan, the scheduled
monthly payment of principal and interest on such Mortgage Loan which is payable
by the related Mortgagor from time to time under the related Mortgage Note,
determined: (a) after giving effect to (i) any Deficient Valuation and/or Debt
Service Reduction with respect to such Mortgage Loan and (ii) any reduction in
the amount of interest collectible from the related Mortgagor pursuant to the
Relief Act; (b) without giving effect to any extension granted or agreed to by
the Master Servicer pursuant to Section 3.02; and (c) on the assumption that all
other amounts, if any, due under such Mortgage Loan are paid when due.

          "Moody's": Moody's Investors Service, or its successor in interest.

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

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

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

          "Mortgage Loan Purchase Agreement": The agreement between the
Originator and the Depositor, regarding the transfer of the Mortgage Loans by
the Originator to or at the direction of the Depositor, substantially in the
form of Exhibit D annexed hereto.

          "Mortgage Loan Schedule": As of any date, the list of Mortgage Loans
included in REMIC I on such date, separately identifying the Group I Mortgage
Loans and the Group II Mortgage Loans, attached hereto as Schedule 1 as
supplemented by each schedule of Subsequent Mortgage Loans attached to a
Subsequent Transfer Instrument. The Mortgage Loan Schedule shall set forth the
following information with respect to each Mortgage Loan:

          (1) the Originator's Mortgage Loan identifying number;

          (2) the Mortgagor's name;

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

                                       25

<PAGE>

          (4) a code indicating whether the Mortgaged Property is
     owner-occupied;

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

          (6) the original months to maturity;

          (7) the Loan-to-Value Ratio at origination;

          (8) the Mortgage Rate in effect immediately following the Cut-off Date
     (or the Subsequent Cut-off Date, with respect to a Subsequent Mortgage
     Loan);

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

          (10) the stated maturity date;

          (11) the amount of the Monthly Payment due on the first Due Date after
     the Cut-off Date (or the Subsequent Cut-off Date, with respect to a
     Subsequent Mortgage Loan);

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

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

          (14) the Scheduled Principal Balance of the Mortgage Loan as of the
     close of business on the Cut-off Date (or the Subsequent Cut-off Date, with
     respect to a Subsequent Mortgage Loan);

          (15) with respect to each Group II Mortgage Loan, the Gross Margin;

          (16) a code indicating the purpose of the Mortgage Loan (I.E.,
     purchase, refinance debt consolidation cashout, or refinance debt
     consolidation no cashout);

          (17) with respect to each Group II Mortgage Loan, the Maximum Mortgage
     Rate;

          (18) with respect to each Group II Mortgage Loan, the Minimum Mortgage
     Rate;

          (19) the Mortgage Rate at origination;

          (20) with respect to each Group II Mortgage Loan, the Periodic Rate
     Cap and the maximum first Adjustment Date Mortgage Rate adjustment;

          (21) a code indicating the documentation program (I.E., Full
     Documentation, Limited Documentation or Stated Income);

          (22) with respect to each Group II Mortgage Loan, the first Adjustment
     Date immediately following the Cut-off Date;

                                       26

<PAGE>

          (23) the risk grade;

          (24) the Value of the Mortgaged Property;

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

          (26) the FICO score of the primary Mortgagor; and

          (27) whether the Mortgage Loan is covered under the PMI Policy.

          The Mortgage Loan Schedule shall set forth the following information
with respect to the Mortgage Loans in the aggregate as of the Cut-off Date (or
the Subsequent Cut-off Date, with respect to a Subsequent Mortgage Loan): (1)
the number of Mortgage Loans; (2) the current Principal Balance of the Mortgage
Loans; (3) the weighted average Mortgage Rate of the Mortgage Loans; and (4) the
weighted average maturity of the Mortgage Loans. The Mortgage Loan Schedule
shall be amended from time to time by the Depositor in accordance with the
provisions of this Agreement. With respect to any Qualified Substitute Mortgage
Loan, the Cut-off Date shall refer to the related Cut-off Date for such Mortgage
Loan, determined in accordance with the definition of Cut-off Date herein.

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

          "Mortgage Pool": The pool of Mortgage Loans, identified on Schedule 1
from time to time, and any REO Properties acquired in respect thereof.

          "Mortgage Rate": With respect to each Mortgage Loan, the annual rate
at which interest accrues on such Mortgage Loan from time to time in accordance
with the provisions of the related Mortgage Note, which rate (i) with respect to
each Group I Mortgage Loan shall remain constant at the rate set forth in the
Mortgage Loan Schedule as the Mortgage Rate in effect immediately following the
Cut-off Date (or the Subsequent Cut-off Date, with respect to a Subsequent
Mortgage Loan) and (ii) with respect to each Group II Mortgage Loan, (A) as of
any date of determination until the first Adjustment Date following the Cut-off
Date (or the Subsequent Cut- off Date, with respect to a Subsequent Mortgage
Loan) shall be the rate set forth in the Mortgage Loan Schedule as the Mortgage
Rate in effect immediately following the Cut-off Date (or the Subsequent Cut-off
Date, with respect to a Subsequent Mortgage Loan) and (B) as of any date of
determination thereafter shall be the rate as adjusted on the most recent
Adjustment Date equal to the sum, rounded to the nearest 0.125% as provided in
the Mortgage Note, of the Index, as most recently available as of a date prior
to the Adjustment Date as set forth in the related Mortgage Note, plus the
related Gross Margin; provided that the Mortgage Rate on such Group II Mortgage
Loan on any Adjustment Date shall never be more than the lesser of (i) the sum
of the Mortgage Rate in effect immediately prior to the Adjustment Date plus the
related Periodic Rate Cap, if any, and (ii) the related Maximum Mortgage Rate,
and shall never be less than the greater of (i) the Mortgage Rate in effect
immediately prior to the Adjustment Date less the Periodic Rate Cap, if any, and
(ii) the related Minimum Mortgage Rate. With respect to each Mortgage Loan that
becomes an REO

                                       27

<PAGE>

Property, as of any date of determination, the annual rate determined in
accordance with the immediately preceding sentence as of the date such Mortgage
Loan became an REO Property.

          "Mortgaged Property": The underlying property identified in the
related Mortgage as securing a Mortgage Loan, including any REO Property,
consisting of an Estate in Real Property improved by a Residential Dwelling
(excluding for purposes of construing the representations or warranties made in
the Mortgage Loan Purchase Agreement, any improvements thereupon not considered
by the appraiser in determining the value of such Mortgaged Property).

          "Mortgagor": The obligor on a Mortgage Note.

          "Net Monthly Excess Cashflow": With respect to any Distribution Date,
the sum of (i) any Overcollateralization Reduction Amount for such Distribution
Date and (ii) the excess of (x) the Available Funds for such Distribution Date
over (y) the sum for such Distribution Date of (A) the Senior Interest
Distribution Amount payable to the holders of the Class A Certificates and the
Class S Certificates and the Interest Distribution Amounts payable to the
Mezzanine Certificates and (B) the Principal Remittance Amount.

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

          "Net WAC Pass-Through Rate": With respect to the Class A Certificates
and the Mezzanine Certificates and any Distribution Date, a per annum rate equal
to (A) the weighted average of the Expense Adjusted Net Mortgage Rates of the
Mortgage Loans weighted on the basis of the outstanding Stated Principal
Balances of the Mortgage Loans as of the first day of the month preceding the
month of such Distribution Date less (B) the Pass-Through Rate for the Class S
Certificates for such Distribution Date multiplied by a fraction, the numerator
of which is the Notional Amount for the Class S Certificates immediately prior
to such Distribution Date and the denominator of which is the sum of the
aggregate outstanding Stated Principal Balance of the Mortgage Loans as of the
first day of the month preceding the month of such Distribution Date and any
amounts remaining in the Pre-Funding Accounts (exclusive of any investment
income therein) and in the case of the Class AV Certificates and the Mezzanine
Certificates multiplied by a fraction, the numerator of which is 30 and the
denominator of which is the actual number of days elapsed in the related
Interest Accrual Period.

          With respect to the Class S Certificates and any Distribution Date, a
per annum rate equal to the weighted average of the Expense Adjusted Net
Mortgage Rates of the Mortgage Loans weighted on the basis of the outstanding
Stated Principal Balances of the Mortgage Loans as of the first day of the month
preceding the month of such Distribution Date.

          "Net WAC Rate Carryover Amount": With respect to the Class A
Certificates, the Mezzanine Certificates and the Class S Certificates and any
Distribution Date, the sum of the excess of (i) the amount of interest such
Certificates would have accrued for such Distribution Date had such Pass-Through
Rate been calculated at the Formula Rate (in the case of the Class AV
Certificates and the Mezzanine Certificates), or the applicable fixed rate (in
the case of the Class AF

                                       28

<PAGE>

Certificates and the Class S Certificates), over (ii) the amount of interest
such Class of Certificates accrued at the related Net WAC Pass-Through Rate for
such Distribution Date and (B) the related Net WAC Rate Carryover Amount for the
previous Distribution Date not previously paid, together with interest thereon
at a rate equal to the Formula Rate (in the case of the Class AV Certificates
and the Mezzanine Certificates) or the applicable fixed rate (in the case of the
Class AF Certificates and the Class S Certificates), as the case may be, in each
case for the Interest Accrual Period for the current Distribution Date.

          "Net WAC Rate Carryover Reserve Account": The Net WAC Rate Carryover
Reserve Account established and maintained pursuant to Section 4.09.

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

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

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

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

          "Non-United States Person": Any Person other than a United States
Person.

          "Notional Amount": With respect to the Class CE Certificates and any
Distribution Date, the aggregate Uncertificated Balances of the REMIC III
Regular Interests immediately prior to such Distribution Date. With respect to
the Class S Certificates, an amount equal to the Uncertificated Notional Amount
for REMIC III Regular Interest III-LTS, immediately prior to such Distribution
Date.

          "Officers' Certificate": With respect to the Depositor, a certificate
signed by the Chairman of the Board, the Vice Chairman of the Board, the
President or a vice president (however denominated), and by the Treasurer, the
Secretary, or one of the assistant treasurers or assistant secretaries. With
respect to the Master Servicer, any officer who is authorized to act for the
Master Servicer in matters relating to this Agreement, and whose action is
binding upon the Master Servicer, initially including those individuals whose
names appear on the list of authorized officers delivered at the closing.

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<PAGE>

          "Offered Certificate": Any one of the Class A Certificates, the
Mezzanine Certificates and the Class S Certificates, issued under this
Agreement.

          "One-Month LIBOR": With respect to the Class AV Certificates, the
Mezzanine Certificates, REMIC III Regular Interest III-LTAV1, REMIC III Regular
Interest III-LTAV2, REMIC III Regular Interest III-LTAV3, REMIC III Regular
Interest III-LTA2, REMIC III Regular Interest III-LTM1, REMIC III Regular
Interest III-LTM2 and REMIC III Regular Interest III-LTM3 and any Interest
Accrual Period therefor, the rate determined by the Trustee on the related
Interest Determination Date on the basis of the offered rate for one-month U.S.
dollar deposits, as such rate appears on Telerate Page 3750 as of 11:00 a.m.
(London time) on such Interest Determination Date; provided that if such rate
does not appear on Telerate Page 3750, the rate for such date will be determined
on the basis of the offered rates of the Reference Banks for one-month U.S.
dollar deposits, as of 11:00 a.m. (London time) on such Interest Determination
Date. In such event, the Trustee will request the principal London office of
each of the Reference Banks to provide a quotation of its rate. If on such
Interest Determination Date, two or more Reference Banks provide such offered
quotations, One-Month LIBOR for the related Interest Accrual Period shall be the
arithmetic mean of such offered quotations (rounded upwards if necessary to the
nearest whole multiple of 1/16%). If on such Interest Determination Date, fewer
than two Reference Banks provide such offered quotations, One-Month LIBOR for
the related Interest Accrual Period shall be the higher of (i) LIBOR as
determined on the previous Interest Determination Date and (ii) the Reserve
Interest Rate. Notwithstanding the foregoing, if, under the priorities described
above, LIBOR for an Interest Determination Date would be based on LIBOR for the
previous Interest Determination Date for the third consecutive Interest
Determination Date, the Trustee shall select, after consultation with the NIMS
Insurer, an alternative comparable index (over which the Trustee has no
control), used for determining one-month Eurodollar lending rates that is
calculated and published (or otherwise made available) by an independent party.

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

          "Original Group I Pre-Funded Amount": The amount deposited by the
Depositor in the Group I Pre-Funding Account on the Closing Date, which amount
is $41,763,216.49.

          "Original Group II Pre-Funded Amount": The amount deposited by the
Depositor in the Group II Pre-Funding Account on the Closing Date, which amount
is $66,648,573.02.

          "Original Pre-Funded Amounts": The Original Group I Pre-Funded Amount
and the Original Group II Pre-Funded Amount.

          "Originator": Ameriquest Mortgage Company, or its successor in
interest, in its capacity as originator under the Mortgage Loan Purchase
Agreement.

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<PAGE>

          "Overcollateralized Amount": With respect to any Distribution Date,
the excess, if any, of (a) the sum of the aggregate Stated Principal Balances of
the Mortgage Loans and REO Properties immediately following such Distribution
Date (after giving effect to scheduled payments of principal due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) and the
amount on deposit in the Pre-Funding Accounts as of the last day of the related
Due Period over (b) the sum of the aggregate Certificate Principal Balances of
the Class A Certificates, the Mezzanine Certificates and the Class P
Certificates as of such Distribution Date (after giving effect to distributions
to be made on such Distribution Date).

          "Overcollateralization Deficiency Amount": With respect to any
Distribution Date, the excess, if any, of (a) the Overcollateralization Target
Amount applicable to such Distribution Date over (b) the Overcollateralized
Amount applicable to such Distribution Date (calculated for this purpose only,
after taking into account the distributions to be made of the Principal
Remittance Amount on such Distribution Date).

          "Overcollateralization Increase Amount": With respect to any
Distribution Date, the lesser of (a) the Overcollateralization Deficiency Amount
as of such Distribution Date (after taking into account the payment of the
Principal Distribution Amount on such Distribution Date, exclusive of the
payment of any Overcollateralization Increase Amount) and (b) the amount of
Accrued Certificate Interest payable on the Class CE Certificates on such
Distribution Date as reduced by Realized Losses allocated thereto with respect
to such Distribution Date pursuant to Section 4.04.

          "Overcollateralization Reduction Amount": With respect to any
Distribution Date, an amount equal to the lesser of (a) the Excess
Overcollateralized Amount and (b) the Principal Remittance Amount.

          "Overcollateralization Target Amount": With respect to any
Distribution Date (i) prior to the Stepdown Date, $4,140,000, (ii) on or after
the Stepdown Date provided a Trigger Event is not in effect, the greater of (x)
1.80% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
last day of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (y) $2,300,000, (iii) on or after the Stepdown Date and if a Trigger
Event is in effect, the Overcollateralization Target Amount for the immediately
preceding Distribution Date.

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

          "Pass-Through Rate": With respect to the Class AF-1 Certificates and
any Distribution Date, the lesser of (x) 2.60% per annum and (y) the Net WAC
Pass-Through Rate for such class for such Distribution Date.

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<PAGE>

          With respect to the Class AF-2 Certificates and any Distribution Date,
the lesser of (x) 4.08% per annum and (y) the Net WAC Pass-Through Rate for such
class for such Distribution Date.

          With respect to the Class AF-3 Certificates and any Distribution Date,
the lesser of (x) 5.66% per annum in the case of each Distribution Date through
and including the first Distribution Date on which the aggregate Principal
Balance of the Mortgage Loans (and properties acquired in respect thereof)
remaining in the Trust Fund is reduced to less than 10% of the sum of the
aggregate Principal Balance of the Initial Mortgage Loans as of the Cut-off Date
and the Original Pre-Funded Amounts, or 6.16% per annum, in the case of any
Distribution Date thereafter and (y) the Net WAC Pass-Through Rate for such
class for such Distribution Date.

          With respect to the Class AF-4 Certificates and any Distribution Date,
the lesser of (x) 4.94% per annum in the case of each Distribution Date through
and including the first Distribution Date on which the aggregate Principal
Balance of the Mortgage Loans (and properties acquired in respect thereof)
remaining in the Trust Fund is reduced to less than 10% of the sum of the
aggregate Principal Balance of the Initial Mortgage Loans as of the Cut-off Date
and the Original Pre-Funded Amounts, or 5.44% per annum, in the case of any
Distribution Date thereafter and (y) the Net WAC Pass-Through Rate for such
class for such Distribution Date.

          With respect to the Class AV Certificates and the Mezzanine
Certificates and any Distribution Date, the lesser of (x) the related Formula
Rate for such Distribution Date and (y) the related Net WAC Pass-Through Rate
for such Distribution Date.

          With respect to the Class S Certificates and any Distribution Date,
the lesser of (x) 6.00% per annum for each Accrual Period for the 1st
Distribution Date through the 30th Distribution Date and (y) the related Net WAC
Pass-Through Rate for such Distribution Date.

          With respect to the Class CE Certificates and any Distribution Date, a
rate per annum equal to the percentage equivalent of a fraction, the numerator
of which is the sum of the amounts calculated pursuant to clauses (A) through
(M) below, and the denominator of which is the Uncertificated Balance of the
REMIC III Regular Interests. For purposes of calculating the Pass- Through Rate
for the Class CE Certificates, the numerator is equal to the sum of the
following components:

          (A) the REMIC III Remittance Rate for REMIC III Regular Interest
     III-LTAA minus the Marker Rate, applied to an amount equal to the
     Uncertificated Balance of REMIC III Regular Interest III-LTAA;

          (B) the REMIC III Remittance Rate for REMIC III Regular Interest
     III-LTAF1 minus the Marker Rate, applied to an amount equal to the
     Uncertificated Balance of REMIC III Regular Interest III-LTAF1;

          (C) the REMIC III Remittance Rate for REMIC III Regular Interest
     III-LTAF2 minus the Marker Rate, applied to an amount equal to the
     Uncertificated Balance of REMIC III Regular Interest III-LTAF2;

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<PAGE>

          (D) the REMIC III Remittance Rate for REMIC III Regular Interest
     III-LTAF3 minus the Marker Rate, applied to an amount equal to the
     Uncertificated Balance of REMIC III Regular Interest III-LTAF3;

          (E) the REMIC III Remittance Rate for REMIC III Regular Interest
     III-LTAF4 minus the Marker Rate, applied to an amount equal to the
     Uncertificated Balance of REMIC III Regular Interest III-LTAF4;

          (F) the REMIC III Remittance Rate for REMIC III Regular Interest
     III-LTAV1 minus the Marker Rate, applied to an amount equal to the
     Uncertificated Balance of REMIC III Regular Interest III-LTAV1;

          (G) the REMIC III Remittance Rate for REMIC III Regular Interest
     III-LTAV2 minus the Marker Rate, applied to an amount equal to the
     Uncertificated Balance of REMIC III Regular Interest III-LTAV2;

          (H) the REMIC III Remittance Rate for REMIC III Regular Interest
     III-LTAV3 minus the Marker Rate, applied to an amount equal to the
     Uncertificated Balance of REMIC III Regular Interest III-LTAV3;

          (I) the REMIC III Remittance Rate for REMIC III Regular Interest
     III-LTM1 minus the Marker Rate, applied to an amount equal to the
     Uncertificated Balance of REMIC III Regular Interest III-LTM1;

          (J) the REMIC III Remittance Rate for REMIC III Regular Interest
     III-LTM2 minus the Marker Rate, applied to an amount equal to the
     Uncertificated Balance of REMIC III Regular Interest III-LTM2;

          (K) the REMIC III Remittance Rate for REMIC III Regular Interest
     III-LTM3 minus the Marker Rate, applied to an amount equal to the
     Uncertificated Balance of REMIC III Regular Interest III-LTM3;

          (L) the REMIC III Remittance Rate for REMIC III Regular Interest
     III-LTZZ minus the Marker Rate, applied to an amount equal to the
     Uncertificated Balance of REMIC III Regular Interest III-LTZZ; and

          (M) 100% of the interest on REMIC III Regular Interest III-LTP

          "Percentage Interest": With respect to any Class of Certificates
(other than the Residual Certificates), the undivided percentage ownership in
such Class evidenced by such Certificate, expressed as a percentage, the
numerator of which is the initial Certificate Principal Balance represented by
such Certificate and the denominator of which is the aggregate initial
Certificate Principal Balance of all of the Certificates of such Class. The
Class A Certificates and the Mezzanine Certificates are issuable only in minimum
Percentage Interests corresponding to minimum initial Certificate Principal
Balances of $25,000 and integral multiples of $1.00 in excess thereof. The Class
S Certificates are issuable only in minimum Percentage Interests corresponding

                                       33

<PAGE>

to minimum initial Notional Amounts of $25,000 and integral multiples of $1.00
in excess thereof. The Class P Certificates are issuable only in minimum
Percentage Interests corresponding to minimum initial Certificate Principal
Balances of $20 and integral multiples thereof. The Class CE Certificates are
issuable only in minimum Percentage Interests corresponding to minimum initial
Certificate Principal Balances of $10,000 and integral multiples of $1.00 in
excess thereof; provided, however, that a single Certificate of such Class of
Certificates may be issued having a Percentage Interest corresponding to the
remainder of the aggregate initial Certificate Principal Balance of such Class
or to an otherwise authorized denomination for such Class plus such remainder.
With respect to any Residual Certificate, the undivided percentage ownership in
such Class evidenced by such Certificate, as set forth on the face of such
Certificate. The Residual Certificates are issuable in Percentage Interests of
20% and multiples thereof.

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

          "Permitted Investments": Any one or more of the following obligations
or securities acquired at a purchase price of not greater than par, regardless
of whether issued by the Depositor, the Master Servicer, the NIMS Insurer, the
Trustee or any of their respective Affiliates:

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

          (ii) demand and time deposits in, certificates of deposit of, or
     bankers' acceptances (which shall each have an original maturity of not
     more than 90 days and, in the case of bankers' acceptances, shall in no
     event have an original maturity of more than 365 days or a remaining
     maturity of more than 30 days) denominated in United States dollars and
     issued by, any Depository Institution;

          (iii) repurchase obligations with respect to any security described in
     clause (i) above entered into with a Depository Institution (acting as
     principal);

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

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

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<PAGE>

          (vi) units of money market funds, including money market funds advised
     by the Trustee or an Affiliate thereof, that have been rated "Aaa" by
     Moody's, "AAA" by Fitch and "AAA" by S&P; and

          (viii) if previously confirmed in writing to the Trustee and consented
     to by the NIMS Insurer, any other demand, money market or time deposit, or
     any other obligation, security or investment, as may be acceptable to the
     Rating Agencies as a permitted investment of funds backing securities
     having ratings equivalent to its highest initial rating of the Class A
     Certificates;

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

          "Permitted Transferee": Any Transferee of a Residual Certificate other
than a Disqualified Organization or Non-United States Person.

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

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

          "PMI Insurer": Mortgage Guaranty Insurance Corporation, a Wisconsin
stock insurance corporation, or its successors in interest.

          "PMI Insurer Fee": The amount payable to the PMI Insurer on each
Distribution Date, which amount shall equal the PMI Insurer Fee Rate accrued on
the aggregate Stated Principal Balance of the PMI Mortgage Loans and any related
REO Properties as of the first day of the related Due Period (after giving
effect to scheduled payments of principal due during the Due Period relating to
the previous Distribution Date, to the extent received or advanced) plus any
applicable premium taxes on PMI Mortgage Loans located in West Virginia and
Kentucky.

          "PMI Insurer Fee Rate": 1.29% per annum.

          "PMI Mortgage Loans": The list of Mortgage Loans insured by the PMI
Insurer attached hereto as Schedule 3.

          "PMI Policy": The Mortgage Guaranty Master Policy (#71-70035 (10/96))
with respect to the PMI Mortgage Loans, including all endorsements thereto dated
the Closing Date,

                                       35

<PAGE>

issued by the PMI Insurer and the Terms Letter, dated December 2, 2002, among
the PMI Insurer, the Master Servicer and the Trustee.

          "Pool Net WAC Pass-Through Rate": A per annum rate (not less than
zero) equal to the weighted average of:

          (a) the REMIC I Remittance Rate with respect to REMIC I Regular
     Interest I-LT1 for such Distribution Date weighted on the basis of the
     Uncertificated Balance of REMIC I Regular Interest I-LT1;

          (b) the REMIC I Remittance Rate with respect to REMIC I Regular
     Interest I- LT1PF for such Distribution Date weighted on the basis of the
     Uncertificated Balance of REMIC I Regular Interest I-LT1PF;

          (c) the REMIC I Remittance Rate with respect to REMIC I Regular
     Interest I-LT2 for such Distribution Date weighted on the basis of the
     Uncertificated Balance of REMIC I Regular Interest I-LT2;

          (d) the REMIC I Remittance Rate with respect to REMIC I Regular
     Interest I- LT2PF for such Distribution Date weighted on the basis of the
     Uncertificated Balance of REMIC I Regular Interest I-LT2PF;

          (e) the REMIC I Remittance Rate with respect to REMIC I Regular
     Interest I- LTP for such Distribution Date weighted on the basis of the
     Uncertificated Balance of REMIC I Regular Interest I-LTP.

          "Pre-Funding Accounts": The Group I Pre-Funding Account and the Group
II Pre- Funding Account.

          "Prepayment Assumption": As defined in the Prospectus Supplement.

          "Prepayment Charge": With respect to any Prepayment Period, any
prepayment premium, fee or charge payable by the a Mortgagor in connection with
any Principal Prepayment pursuant to the terms of the related Mortgage Note as
from time to time held as a part of the Trust Fund, the Prepayment Charges so
held being identified in the Prepayment Charge Schedule (other than any Master
Servicer Prepayment Charge Payment Amount).

          "Prepayment Charge Schedule": As of any date, the list of Prepayment
Charges included in the Trust Fund on such date, attached hereto as Schedule 2
(including the prepayment charge summary attached thereto). The Prepayment
Charge Schedule shall set forth the following information with respect to each
Prepayment Charge:

          (i) the Master Servicer's Mortgage Loan identifying number;

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

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<PAGE>

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

          (iv) the term of the related Prepayment Charge;

          (v) the original Principal Balance of the related Mortgage Loan;

          (vi) the Principal Balance of the related Mortgage Loan as of the
     Cut-off Date (or the related Subsequent Cut-off Date, with respect to a
     Subsequent Mortgage Loan);

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

          "Prepayment Interest Excess": With respect to any Distribution Date,
for each Mortgage Loan that was the subject of a Principal Prepayment in full
during the portion of the related Prepayment Period occurring between the first
day of the calendar month in which such Distribution Date occurs and the
Determination Date of the calendar month in which such Distribution Date occurs,
an amount equal to interest (to the extent received) at the applicable Net
Mortgage Rate on the amount of such Principal Prepayment for the number of days
commencing on the first day of the calendar month in which such Distribution
Date occurs and ending on the last date through which interest is collected from
the related Mortgagor. The Master Servicer may withdraw such Prepayment Interest
Excess from the Collection Account in accordance with Section 3.05(a)(iv).

          "Prepayment Interest Shortfall": With respect to any Distribution
Date, for each Mortgage Loan that was the subject of a Principal Prepayment in
full during the portion of the related Prepayment Period occurring between the
first day of the related Prepayment Period and the last day of the calendar
month preceding the month in which such Distribution Date occurs, an amount
equal to interest at the applicable Net Mortgage Rate on the amount of such
Principal Prepayment for the number of days commencing on the day after the last
date on which interest is collected from the related Mortgagor and ending on the
last day of the calendar month preceding such Distribution Date. The obligations
of the Master Servicer in respect of any Prepayment Interest Shortfall are set
forth in Section 4.03(e).

          "Prepayment Period": With respect to any Distribution Date, the period
commencing on the day after the Determination Date in the calendar month
preceding the calendar month in which such Distribution Date occurs (or, in the
case of the first Distribution Date, commencing on December 1, 2002) and ending
on the Determination Date of the calendar month in which such Distribution Date
occurs.

          "Principal Balance": With respect to any Mortgage Loan and any day,
the Stated Principal Balance of such Mortgage Loan.

          "Principal Distribution Amount": With respect to any Distribution
Date, the sum of (i) the principal portion of each Monthly Payment on the
Mortgage Loans due during the related Due Period, whether or not received on or
prior to the related Determination Date; (ii) the Stated Principal

                                       37

<PAGE>

Balance of any Mortgage Loan that was purchased during the related Prepayment
Period pursuant to or as contemplated by Section 2.03, Section 3.16(a) or
Section 9.01 and the amount of any shortfall deposited in the Collection Account
in connection with the substitution of a Deleted Mortgage Loan pursuant to
Section 2.03 during the related Prepayment Period; (iii) the principal portion
of all other unscheduled collections (including, without limitation, Principal
Prepayments, Insurance Proceeds, Liquidation Proceeds and REO Principal
Amortization) received during the related Prepayment Period on the Mortgage
Loans, net of any portion thereof that represents a recovery of principal for
which an advance was made by the Master Servicer pursuant to Section 4.03 in
respect of a preceding Distribution Date; (iv) with respect to the Distribution
Date immediately following the end of the Funding Period, any amounts in the
Pre-Funding Accounts after giving effect to the purchase of any Subsequent
Mortgage Loans and (v) the amount of any Overcollateralization Increase Amount
for such Distribution Date MINUS (vi) the amount of any Overcollateralization
Reduction Amount for such Distribution Date.

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

          "Principal Remittance Amount": With respect to any Distribution Date,
the sum of the amounts set forth in clauses (i) through (iv) of the definition
of Principal Distribution Amount.

          "Prospectus Supplement": The Prospectus Supplement, dated November 26,
2002, relating to the public offering of the Offered Certificates.

          "PTCE": A Prohibited Transaction Class Exemption.

          "Purchase Price": With respect to any Mortgage Loan or REO Property to
be purchased pursuant to or as contemplated by Section 2.03, Section 3.16(a) or
Section 9.01, and as confirmed by an Officers' Certificate from the Master
Servicer to the Trustee, an amount equal to the sum of (i) 100% of the Stated
Principal Balance thereof as of the date of purchase (or such other price as
provided in Section 9.01), (ii) in the case of (x) a Mortgage Loan, accrued
interest on such Stated Principal Balance at the applicable Net Mortgage Rate in
effect from time to time from the Due Date as to which interest was last covered
by a payment by the Mortgagor or an advance by the Master Servicer, which
payment or advance had as of the date of purchase been distributed pursuant to
Section 4.01, through the end of the calendar month in which the purchase is to
be effected and (y) an REO Property, the sum of (1) accrued interest on such
Stated Principal Balance at the applicable Net Mortgage Rate in effect from time
to time from the Due Date as to which interest was last covered by a payment by
the Mortgagor or an advance by the Master Servicer through the end of the
calendar month immediately preceding the calendar month in which such REO
Property was acquired, plus (2) REO Imputed Interest for such REO Property for
each calendar month commencing with the calendar month in which such REO
Property was acquired and ending with the calendar month in which such purchase
is to be effected, net of the total of all net rental income, Insurance
Proceeds, Liquidation Proceeds and Advances that as of the date of purchase had
been distributed as or to cover REO Imputed Interest pursuant to Section 4.01,
(iii) any unreimbursed Servicing Advances and Advances and any unpaid Servicing
Fees allocable to such Mortgage Loan

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<PAGE>

or REO Property, (iv) any amounts previously withdrawn from the Collection
Account in respect of such Mortgage Loan or REO Property pursuant to Sections
3.05(a)(v) and 3.16(a), and (v) in the case of a Mortgage Loan required to be
purchased pursuant to Section 2.03, expenses reasonably incurred or to be
incurred by the Master Servicer, the NIMS Insurer or the Trustee in respect of
the breach or defect giving rise to the purchase obligation.

          "Qualified Substitute Mortgage Loan": A mortgage loan substituted for
a Deleted Mortgage Loan pursuant to the terms of this Agreement which must, on
the date of such substitution, (i) have an outstanding Principal Balance, after
application of all scheduled payments of principal and interest due during or
prior to the month of substitution, not in excess of the Scheduled Principal
Balance of the Deleted Mortgage Loan as of the Due Date in the calendar month
during which the substitution occurs, (ii) have a Mortgage Rate not less than
(and not more than one percentage point in excess of) the Mortgage Rate of the
Deleted Mortgage Loan, (iii) with respect to any Group II Mortgage Loan, have a
Maximum Mortgage Rate not less than the Maximum Mortgage Rate on the Deleted
Mortgage Loan, (iv) with respect to any Group II Mortgage Loan, have a Minimum
Mortgage Rate not less than the Minimum Mortgage Rate of the Deleted Mortgage
Loan, (v) with respect to any Group II Mortgage Loan, have a Gross Margin not
less than the Gross Margin of the Deleted Mortgage Loan, (vi) with respect to
any Group II Mortgage Loan, have a next Adjustment Date not more than two months
later than the next Adjustment Date on the Deleted Mortgage Loan, (vii) have a
remaining term to maturity not greater than (and not more than one year less
than) that of the Deleted Mortgage Loan, (viii) have the same Due Date as the
Due Date on the Deleted Mortgage Loan, (ix) have an original Loan-to-Value Ratio
as of the date of substitution equal to or lower than the original Loan-to-Value
Ratio of the Deleted Mortgage Loan as of such date, (x) have a risk grading
determined by the Originator at least equal to the risk grading assigned on the
Deleted Mortgage Loan, (xi) have been underwritten or reunderwritten by the
Originator in accordance with the same underwriting criteria and guidelines as
the Deleted Mortgage Loan, (xii) have a Prepayment Charge at least equal to the
Prepayment Charge of the Deleted Mortgage Loan, (xiii) be covered by the PMI
Policy if the Deleted Mortgage Loan was covered by the PMI Policy, and (xiv)
conform to each representation and warranty set forth in Section 6 of the
Mortgage Loan Purchase Agreement applicable to the Deleted Mortgage Loan. In the
event that one or more mortgage loans are substituted for one or more Deleted
Mortgage Loans, the amounts described in clause (i) hereof shall be determined
on the basis of aggregate Principal Balances, the Mortgage Rates described in
clause (ii) hereof shall be determined on the basis of weighted average Mortgage
Rates, the risk gradings described in clause (x) hereof shall be satisfied as to
each such mortgage loan, the terms described in clause (vii) hereof shall be
determined on the basis of weighted average remaining terms to maturity, the
original Loan-to-Value Ratios described in clause (ix) hereof shall be satisfied
as to each such mortgage loan and, except to the extent otherwise provided in
this sentence, the representations and warranties described in clause (xi)
hereof must be satisfied as to each Qualified Substitute Mortgage Loan or in the
aggregate, as the case may be.

          "Rating Agency or Rating Agencies": Moody's, Fitch and S&P or their
successors. If such agencies or their successors are no longer in existence,
"Rating Agencies" shall be such nationally recognized statistical rating
agencies, or other comparable Persons, designated by the Depositor, notice of
which designation shall be given to the Trustee and the Master Servicer.

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<PAGE>

          "Realized Loss": With respect to each Mortgage Loan as to which a
Final Recovery Determination has been made, an amount (not less than zero) equal
to (i) the unpaid Principal Balance of such Mortgage Loan as of the commencement
of the calendar month in which the Final Recovery Determination was made, plus
(ii) accrued interest from the Due Date as to which interest was last paid by
the Mortgagor through the end of the calendar month in which such Final Recovery
Determination was made, calculated in the case of each calendar month during
such period (A) at an annual rate equal to the annual rate at which interest was
then accruing on such Mortgage Loan and (B) on a principal amount equal to the
Stated Principal Balance of such Mortgage Loan as of the close of business on
the Distribution Date during such calendar month, plus (iii) any amounts
previously withdrawn from the Collection Account in respect of such Mortgage
Loan pursuant to Section 3.05(a)(v) and Section 3.12(c), minus (iv) the
proceeds, if any, received in respect of such Mortgage Loan during the calendar
month in which such Final Recovery Determination was made, net of amounts that
are payable therefrom to the Master Servicer with respect to such Mortgage Loan
pursuant to Section 3.05(a)(ii).

          With respect to any REO Property as to which a Final Recovery
Determination has been made, an amount (not less than zero) equal to (i) the
unpaid Principal Balance of the related Mortgage Loan as of the date of
acquisition of such REO Property on behalf of REMIC I, plus (ii) accrued
interest from the Due Date as to which interest was last paid by the Mortgagor
in respect of the related Mortgage Loan through the end of the calendar month
immediately preceding the calendar month in which such REO Property was
acquired, calculated in the case of each calendar month during such period (A)
at an annual rate equal to the annual rate at which interest was then accruing
on the related Mortgage Loan and (B) on a principal amount equal to the Stated
Principal Balance of the related Mortgage Loan as of the close of business on
the Distribution Date during such calendar month, plus (iii) REO Imputed
Interest for such REO Property for each calendar month commencing with the
calendar month in which such REO Property was acquired and ending with the
calendar month in which such Final Recovery Determination was made, plus (iv)
any amounts previously withdrawn from the Collection Account in respect of the
related Mortgage Loan pursuant to Section 3.05(a)(v) and Section 3.12(c), minus
(v) the aggregate of all Advances made by the Master Servicer in respect of such
REO Property or the related Mortgage Loan for which the Master Servicer has been
or, in connection with such Final Recovery Determination, will be reimbursed
pursuant to Section 3.13 out of rental income, Insurance Proceeds and
Liquidation Proceeds received in respect of such REO Property, minus (vi) the
total of all net rental income, Insurance Proceeds and Liquidation Proceeds
received in respect of such REO Property that has been, or in connection with
such Final Recovery Determination, will be transferred to the Distribution
Account pursuant to Section 3.13.

          With respect to each Mortgage Loan which has become the subject of a
Deficient Valuation, the difference between the Principal Balance of the
Mortgage Loan outstanding immediately prior to such Deficient Valuation and the
Principal Balance of the Mortgage Loan as reduced by the Deficient Valuation.

          With respect to each Mortgage Loan which has become the subject of a
Debt Service Reduction, the portion, if any, of the reduction in each affected
Monthly Payment attributable to a reduction in the Mortgage Rate imposed by a
court of competent jurisdiction. Each such Realized Loss shall be deemed to have
been incurred on the Due Date for each affected Monthly Payment.

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<PAGE>

          "Record Date": With respect to each Distribution Date and any
Book-Entry Certificate (other than the Class AF Certificates and the Class S
Certificates), the Business Day immediately preceding such Distribution Date.
With respect to each Distribution Date and any other Class of Certificates,
including any Definitive Certificates, the last Business Day of the month
immediately preceding the month in which such Distribution Date occurs.

          "Reference Banks": Barclay's Bank PLC, The Tokyo Mitsubishi Bank and
National Westminster Bank PLC and their successors in interest; provided,
however, that if any of the foregoing banks are not suitable to serve as a
Reference Bank, then any leading banks selected by the Trustee (after
consultation with the NIMS Insurer) which are engaged in transactions in
Eurodollar deposits in the international Eurocurrency market (i) with an
established place of business in London, (ii) not controlling, under the control
of or under common control with the Depositor or any Affiliate thereof and (iii)
which have been designated as such by the Trustee.

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

          "Regular Certificate": Any Class A Certificate, Mezzanine Certificate,
Class S Certificate, Class P Certificate or Class CE Certificate.

          "Regular Interest": A "regular interest" in a REMIC within the meaning
of Section 860G(a)(1) of the Code.

          "Relief Act": The Soldiers' and Sailors' Civil Relief Act of 1940, as
amended or any applicable state law providing similar relief.

          "Relief Act Interest Shortfall": With respect to any Distribution Date
and any Mortgage Loan, any reduction in the amount of interest collectible on
such Mortgage Loan for the most recently ended calendar month as a result of the
application of the Relief Act.

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

          "REMIC I": The segregated pool of assets subject hereto, constituting
the primary trust created hereby and to be administered hereunder, with respect
to which a REMIC election is to be made, consisting of: (i) such Mortgage Loans
and Prepayment Charges as from time to time are subject to this Agreement,
together with the Mortgage Files relating thereto, and together with all
collections thereon and proceeds thereof, (ii) any REO Property, together with
all collections thereon and proceeds thereof, (iii) the Trustee's rights with
respect to the Mortgage Loans under all insurance policies, including the PMI
Policy, required to be maintained pursuant to this Agreement and any proceeds
thereof, (iv) the Depositor's rights under the Mortgage Loan Purchase Agreement
(including any security interest created thereby) to the extent conveyed
pursuant to Section 2.01 and (v) the Collection Account (other than any amounts
representing any Master Servicer Prepayment Charge Payment Amounts), the
Distribution Account (other than any amounts representing any Master Servicer
Prepayment Charge Payment Amounts) and any REO Account and such assets that are
deposited therein from time to time and any investments thereof, together with
any and all

                                       41

<PAGE>

income, proceeds and payments with respect thereto. Notwithstanding the
foregoing, however, REMIC I specifically excludes any Master Servicer Prepayment
Charge Payment Amounts, the Pre- Funding Accounts, the Interest Coverage
Accounts, the Net WAC Rate Carryover Reserve Account, any Subsequent Mortgage
Loan Interest, all payments and other collections of principal and interest due
on the Mortgage Loans on or before the Cut-off Date and all Prepayment Charges
payable in connection with Principal Prepayments made before the Cut-off Date.

          "REMIC I Regular Interest": Any of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
"regular interest" in REMIC I. Each REMIC I Regular Interest shall accrue
interest at the related REMIC I Remittance Rate in effect from time to time, and
shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto. The designations for
the respective REMIC I Regular Interests are set forth in the Preliminary
Statement hereto.

          "REMIC I Regular Interest I-LT1": One of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
Regular Interest in REMIC I. REMIC I Regular Interest I-LT1 shall accrue
interest at the related REMIC I Remittance Rate in effect from time to time, and
shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.

          "REMIC I Regular Interest I-LT1PF": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LT1PF
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

          "REMIC I Regular Interest I-LT2": One of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
Regular Interest in REMIC I. REMIC I Regular Interest I-LT2 shall accrue
interest at the related REMIC I Remittance Rate in effect from time to time, and
shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.

          "REMIC I Regular Interest I-LT2PF": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LT2PF
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

          "REMIC I Regular Interest I-LT3": One of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
Regular Interest in REMIC I. REMIC I Regular Interest I-LT3 shall accrue
interest at the related REMIC I Remittance Rate in

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<PAGE>

effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

          "REMIC I Regular Interest I-LT3PF": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LT3PF
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

          "REMIC I Regular Interest I-LTP": One of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
Regular Interest in REMIC I. REMIC I Regular Interest I-LTP shall accrue
interest at the related REMIC I Remittance Rate in effect from time to time and
shall be entitled to any Prepayment Charges collected by the Master Servicer and
to a distribution of principal, subject to the terms and conditions hereof, in
an aggregate amount equal to its initial Uncertificated Balance as set forth in
the Preliminary Statement hereto.

          "REMIC I Remittance Rate": With respect to REMIC I Regular Interest
I-LT1 and REMIC I Regular Interest I-LTP, the weighted average of the Expense
Adjusted Net Mortgage Rates of the Group I Mortgage Loans. With respect to REMIC
I Regular Interest I-LT2, the weighted average of the Expense Adjusted Net
Mortgage Rates of the Group II Mortgage Loans. With respect to REMIC I Regular
Interest I-LT1PF and (i) the first two Distribution Dates, 6.0986% and (ii)
thereafter, the weighted average of the Expense Adjusted Net Mortgage Rates of
the Group I Mortgage Loans. With respect to REMIC I Regular Interest I-LT2PF and
(i) the first two Distribution Dates, 6.5879% and (ii) thereafter, the weighted
average of the Expense Adjusted Net Mortgage Rates of the Group II Mortgage
Loans.

          "REMIC II": The segregated pool of assets consisting of all of the
REMIC I Regular Interests conveyed in trust to the Trustee for the benefit of
the REMIC III Certificateholders pursuant to Section 2.08, and all amounts
deposited therein, with respect to which a separate REMIC election is to be
made.

          "REMIC II Regular Interest": Any of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
"regular interest" in REMIC II. Each REMIC I Regular Interest shall accrue
interest at the related REMIC II Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto. The designations for
the respective REMIC II Regular Interests are set forth in the Preliminary
Statement hereto.

          "REMIC II Regular Interest II-LT1": One of the separate
non-certificated beneficial ownership interests in REMIC II issued hereunder and
designated as a Regular Interest in REMIC II. REMIC II Regular Interest II-LT1
shall accrue interest at the related REMIC II Remittance Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and

                                       43

<PAGE>

conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.

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

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

          "REMIC II Remittance Rate": With respect to the REMIC II Regular
Interests, the weighted average of the REMIC I Remittance Rates on the REMIC I
Regular Interests, weighted on the basis of their respective Uncertificated
Balances.

          "REMIC III Interest Loss Allocation Amount": With respect to any
Distribution Date, an amount (subject to adjustment based on the actual number
of days elapsed in the respective Interest Accrual Periods for the indicated
Regular Interests for such Distribution Date) equal to (a) the product of (i)
the aggregate Stated Principal Balance of the Mortgage Loans and REO Properties
then outstanding (plus any amounts in the Pre-Funding Accounts) and (ii) the
REMIC III Remittance Rate for REMIC III Regular Interest III-LTAA minus the
Marker Rate, divided by (b) 12.

          "REMIC III Overcollateralized Amount": With respect to any date of
determination, (i) 1% of the aggregate Uncertificated Balances of the REMIC III
Regular Interests minus (ii) the aggregate of the Uncertificated Balances of
REMIC III Regular Interest III-LTAF1, REMIC III Regular Interest III-LTAF2,
REMIC III Regular Interest III-LTAF3, REMIC III Regular Interest III- LTAF4,
REMIC III Regular Interest III-LTAV1, REMIC III Regular Interest III-LTAV2,
REMIC III Regular Interest III-LTAV3, REMIC III Regular Interest III-LTM1, REMIC
III Regular Interest III-LTM2 and REMIC III Regular Interest III-LTM3, in each
case as of such date of determination.

          "REMIC III Principal Loss Allocation Amount": With respect to any
Distribution Date, an amount equal to the product of (i) the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties outstanding (plus any
amounts in the Pre-Funding Accounts) and (ii) 1 minus a fraction, the numerator
of which is two times the aggregate of the Uncertificated Balances of REMIC III
Regular Interest III-LTAF1, REMIC III Regular Interest III-LTAF2, REMIC III
Regular Interest III-LTAF3, REMIC III Regular Interest III-LTAF4, REMIC III
Regular Interest III- LTAV1, REMIC III Regular Interest III-LTAV2, REMIC III
Regular Interest III-LTAV3, REMIC III Regular Interest III-LTM1, REMIC III
Regular Interest III-LTM2 and REMIC III Regular Interest III-LTM3 and the
denominator of which is the aggregate of the Uncertificated Balances of REMIC
III Regular Interest III-LTAF1, REMIC III Regular Interest III-LTAF2, REMIC III
Regular Interest

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<PAGE>

III-LTAF3, REMIC III Regular Interest III-LTAF4, REMIC III Regular Interest
III-LTAV1, REMIC III Regular Interest III-LTAV2, REMIC III Regular Interest
III-LTAV3, REMIC III Regular Interest III-LTM1, REMIC III Regular Interest
III-LTM2 and REMIC III Regular Interest III-LTM3 and REMIC III Regular Interest
III-LTZZ.

          "REMIC III Regular Interest": Any of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
"regular interest" in REMIC III. Each REMIC III Regular Interest shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time or
shall otherwise be entitled to interest as set forth herein, and shall be
entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Balance as
set forth in the Preliminary Statement hereto. The designations for the
respective REMIC III Regular Interests are set forth in the Preliminary
Statement hereto.

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

          "REMIC III Regular Interest III-LTAF1": One of the separate
non-certificated beneficial ownership interests in REMIC III issued hereunder
and designated as a Regular Interest in REMIC III. REMIC III Regular Interest
III-LTAF1 shall accrue interest at the related REMIC III Remittance Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

          "REMIC III Regular Interest III-LTAF2": One of the separate
non-certificated beneficial ownership interests in REMIC III issued hereunder
and designated as a Regular Interest in REMIC III. REMIC III Regular Interest
III-LTAF1 shall accrue interest at the related REMIC III Remittance Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

          "REMIC III Regular Interest III-LTAF3": One of the separate
non-certificated beneficial ownership interests in REMIC III issued hereunder
and designated as a Regular Interest in REMIC III. REMIC III Regular Interest
III-LTAF1 shall accrue interest at the related REMIC III Remittance Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

          "REMIC III Regular Interest III-LTAF4": One of the separate
non-certificated beneficial ownership interests in REMIC III issued hereunder
and designated as a Regular Interest in REMIC III. REMIC III Regular Interest
III-LTAF1 shall accrue interest at the related REMIC III Remittance Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject

                                       45

<PAGE>

to the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

          "REMIC III Regular Interest III-LTAV1": One of the separate
non-certificated beneficial ownership interests in REMIC III issued hereunder
and designated as a Regular Interest in REMIC III. REMIC III Regular Interest
III-LTAV1 shall accrue interest at the related REMIC III Remittance Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

          "REMIC III Regular Interest III-LTAV2": One of the separate
non-certificated beneficial ownership interests in REMIC III issued hereunder
and designated as a Regular Interest in REMIC III. REMIC III Regular Interest
III-LTAV2 shall accrue interest at the related REMIC III Remittance Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

          "REMIC III Regular Interest III-LTAV3": One of the separate
non-certificated beneficial ownership interests in REMIC III issued hereunder
and designated as a Regular Interest in REMIC III. REMIC III Regular Interest
III-LTAV3 shall accrue interest at the related REMIC III Remittance Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

          "REMIC III Regular Interest III-LTM1": One of the separate
non-certificated beneficial ownership interests in REMIC III issued hereunder
and designated as a Regular Interest in REMIC III. REMIC III Regular Interest
III-LTM1 shall accrue interest at the related REMIC III Remittance Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

          "REMIC III Regular Interest III-LTM2": One of the separate
non-certificated beneficial ownership interests in REMIC III issued hereunder
and designated as a Regular Interest in REMIC III. REMIC III Regular Interest
III-LTM2 shall accrue interest at the related REMIC III Remittance Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

          "REMIC III Regular Interest III-LTM3": One of the separate
non-certificated beneficial ownership interests in REMIC IIII issued hereunder
and designated as a Regular Interest in REMIC III. REMIC III Regular Interest
III-LTM3 shall accrue interest at the related REMIC III Remittance Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

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<PAGE>

          "REMIC III Regular Interest III-LTP": One of the separate
non-certificated beneficial ownership interests in REMIC III issued hereunder
and designated as a Regular Interest in REMIC III. REMIC III Regular Interest
III-LTP shall be entitled to any Prepayment Charges collected by the Master
Servicer and to a distribution of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Balance as
set forth in the Preliminary Statement hereto.

          "REMIC III Regular Interest III-LTS": One of the separate
non-certificated beneficial ownership interests in REMIC III issued hereunder
and designated as a Regular Interest in REMIC III. REMIC III Regular Interest
III-LTS shall accrue interest at the related REMIC III Remittance Rate on its
Uncertificated Notional Amount, as in effect from time to time. REMIC III
Regular Interest III-LTS has no Principal Balance and is not entitled to
distributions of principal.

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

          "REMIC III Remittance Rate": With respect to each REMIC III Regular
Interest (other than REMIC III Regular Interest III-LTS) and each Distribution
Date, a per annum rate equal to the weighted average of (x) the REMIC II
Remittance Rate with respect to REMIC II Regular Interest II-LT1 and REMIC I
Regular Interest II-LTP for such Distribution Date and (y) the excess, if any,
of (i) the REMIC II Remittance Rate with respect to REMIC II Regular Interest
II-LTS for such Distribution Date over (ii) the applicable Class S Rate,
weighted on the basis of the Uncertificated Balance of (x) REMIC II Regular
Interest II-LT1 and REMIC II Regular Interest II- LTP and (y) REMIC II Regular
Interest II-LTS.

          With respect to REMIC II Regular Interest II-LTS, the applicable Class
S Rate.

          "REMIC III Overcollateralization Target Amount": 1% of the
Overcollateralization Target Amount.

          "REMIC IV": The segregated pool of assets consisting of all of the
REMIC III Regular Interests conveyed in trust to the Trustee, for the benefit of
the REMIC IV Certificateholders pursuant to Section 2.09, and all amounts
deposited therein, with respect to which a separate REMIC election is to be
made.

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

          "REMIC IV Certificateholder": The Holder of any REMIC IV Certificate.

          "REMIC Provisions": Provisions of the federal income tax law relating
to real estate mortgage investment conduits, which appear at Section 860A
through 860G of the Code, and related

                                       47

<PAGE>

provisions, and proposed, temporary and final regulations and published rulings,
notices and announcements promulgated thereunder, as the foregoing may be in
effect from time to time.

          "Remittance Report": A report in form and substance that is acceptable
to the Trustee and the NIMS Insurer on a magnetic disk or tape prepared by the
Master Servicer pursuant to Section 4.03 with such additions, deletions and
modifications as agreed to by the Trustee and the Master Servicer.

          "Rents from Real Property": With respect to any REO Property, gross
income of the character described in Section 856(d) of the Code as being
included in the term "rents from real property."

          "REO Account": Each of the accounts maintained by the Master Servicer
in respect of an REO Property pursuant to Section 3.13 which account may be the
Collection Account subject to Section 3.13.

          "REO Disposition": The sale or other disposition of an REO Property on
behalf of REMIC I.

          "REO Imputed Interest": As to any REO Property, for any calendar month
during which such REO Property was at any time part of REMIC I, one month's
interest at the applicable Net Mortgage Rate on the Stated Principal Balance of
such REO Property (or, in the case of the first such calendar month, of the
related Mortgage Loan, if appropriate) as of the close of business on the
Distribution Date in such calendar month.

          "REO Principal Amortization": With respect to any REO Property, for
any calendar month, the excess, if any, of (a) the aggregate of all amounts
received in respect of such REO Property during such calendar month, whether in
the form of rental income, sale proceeds (including, without limitation, that
portion of the Termination Price paid in connection with a purchase of all of
the Mortgage Loans and REO Properties pursuant to Section 9.01 that is allocable
to such REO Property) or otherwise, net of any portion of such amounts (i)
payable pursuant to Section 3.13(c) in respect of the proper operation,
management and maintenance of such REO Property or (ii) payable or reimbursable
to the Master Servicer pursuant to Section 3.13(d) for unpaid Servicing Fees in
respect of the related Mortgage Loan and unreimbursed Servicing Advances and
Advances in respect of such REO Property or the related Mortgage Loan, over (b)
the REO Imputed Interest in respect of such REO Property for such calendar
month.

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

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

          "Reserve Interest Rate": With respect to any Interest Determination
Date, the rate per annum that the Trustee determines to be either (i) the
arithmetic mean (rounded upwards if necessary to the nearest whole multiple of
1/16%) of the one-month U.S. dollar lending rates which

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New York City banks selected by the Trustee are quoting on the relevant Interest
Determination Date to the principal London offices of leading banks in the
London interbank market or (ii) in the event that the Trustee can determine no
such arithmetic mean, the lowest one-month U.S. dollar lending rate which New
York City banks selected by the Trustee are quoting on such Interest
Determination Date to leading European banks.

          "Residential Dwelling": Any one of the following: (i) an attached or
detached one- family dwelling, (ii) a detached two- to four-family dwelling,
(iii) a one-family dwelling unit in a condominium project or (iv) a detached or
attached one-family dwelling in a planned unit development, none of which is a
co-operative, mobile or manufactured home (unless such mobile or manufactured
home is defined as real property under applicable state law).

          "Residual Certificate": Any one of the Class R Certificates.

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

          "Responsible Officer": When used with respect to the Trustee, any
director, any vice president, any assistant vice president, any associate, any
assistant secretary, any trust officer or any other officer of the Trustee
customarily performing functions similar to those performed by any of the above
designated officers and, with respect to a particular matter, to whom such
matter is referred because of such officer's knowledge of and familiarity with
the particular subject.

          "Scheduled Principal Balance": With respect to any Mortgage Loan: (a)
as of the Cut-off Date (or the related Subsequent Cut-off Date, with respect to
a Subsequent Mortgage Loan), the outstanding Principal Balance of such Mortgage
Loan as of such date, net of the principal portion of all unpaid Monthly
Payments, if any, due on or before such date; (b) as of any Due Date subsequent
to the Cut-off Date up to and including the Due Date in the calendar month in
which a Liquidation Event occurs with respect to such Mortgage Loan, the
Scheduled Principal Balance of such Mortgage Loan as of the Cut-off Date, minus
the sum of (i) the principal portion of each Monthly Payment due on or before
such Due Date but subsequent to the Cut-off Date, whether or not received, (ii)
all Principal Prepayments received before such Due Date but after the Cut-off
Date, (iii) the principal portion of all Liquidation Proceeds and Insurance
Proceeds received before such Due Date but after the Cut-off Date, net of any
portion thereof that represents principal due (without regard to any
acceleration of payments under the related Mortgage and Mortgage Note) on a Due
Date occurring on or before the date on which such proceeds were received and
(iv) any Realized Loss incurred with respect thereto as a result of a Deficient
Valuation occurring before such Due Date, but only to the extent such Realized
Loss represents a reduction in the portion of principal of such Mortgage Loan
not yet due (without regard to any acceleration of payments under the related
Mortgage and Mortgage Note) as of the date of such Deficient Valuation; and (c)
as of any Due Date subsequent to the occurrence of a Liquidation Event with
respect to such Mortgage Loan, zero. With respect to any REO Property: (a) as of
any Due Date subsequent to the date of its acquisition on behalf of the Trust
Fund up to and including the Due Date in the calendar month in which a
Liquidation Event occurs with respect to such REO Property, an amount (not less
than zero) equal to the Scheduled Principal Balance of the related Mortgage Loan
as of the Due Date in the calendar month in which such REO Property was
acquired, minus the aggregate amount of REO Principal

                                       49

<PAGE>

Amortization, if any, in respect of such REO Property for all previously ended
calendar months; and (b) as of any Due Date subsequent to the occurrence of a
Liquidation Event with respect to such REO Property, zero.

          "Senior Interest Distribution Amount": With respect to any
Distribution Date, an amount equal to the sum of (i) the Interest Distribution
Amount for such Distribution Date for the Class A Certificates and the Class S
Certificates and (ii) the Interest Carry Forward Amount with respect to the
Class A Certificates and the Class S Certificates.

          "Servicing Advances": The reasonable "out-of-pocket" costs and
expenses incurred by the Master Servicer in connection with a default,
delinquency or other unanticipated event by the Master Servicer in the
performance of its servicing obligations, including, but not limited to, the
cost of (i) the preservation, restoration and protection of a Mortgaged
Property, (ii) any enforcement or judicial proceedings, including foreclosures,
in respect of a particular Mortgage Loan, (iii) the management (including
reasonable fees in connection therewith) and liquidation of any REO Property and
(iv) the performance of its obligations under Section 3.01, Section 3.04(d),
Section 3.08, Section 3.12 and Section 3.13. The Master Servicer shall not be
required to make any Servicing Advance in respect of a Mortgage Loan or REO
Property that, in the good faith business judgment of the Master Servicer, would
not be ultimately recoverable from related Insurance Proceeds or Liquidation
Proceeds on such Mortgage Loan or REO Property as provided herein.

          "Servicing Fee": With respect to each Mortgage Loan and for any
calendar month, an amount equal to one month's interest (or in the event of any
payment of interest which accompanies a Principal Prepayment in full made by the
Mortgagor during such calendar month, interest for the number of days covered by
such payment of interest) at the applicable Servicing Fee Rate on the same
principal amount on which interest on such Mortgage Loan accrues for such
calendar month. A portion of such Servicing Fee may be retained by any
Sub-Servicer as its servicing compensation.

          "Servicing Fee Rate": 0.50% per annum.

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

          "Servicing Standard": The standards set forth in the first paragraph
of Section 3.01.

          "Single Certificate": With respect to any Class of Certificates (other
than the Class P Certificates and the Residual Certificates), a hypothetical
Certificate of such Class evidencing a Percentage Interest for such Class
corresponding to an initial Certificate Principal Balance or Notional Amount of
$1,000. With respect to the Class P Certificates and the Residual Certificates,
a hypothetical Certificate of such Class evidencing a 20% Percentage Interest in
such Class.

          "S&P": Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc., or its successor in interest.

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          "Startup Day": With respect to each Trust REMIC, the day designated as
such pursuant to Section 10.01(b) hereof.

          "Stated Principal Balance": With respect to any Mortgage Loan: (a) as
of any date of determination up to but not including the Distribution Date on
which the proceeds, if any, of a Liquidation Event with respect to such Mortgage
Loan would be distributed, the Scheduled Principal Balance of such Mortgage Loan
as of the Cut-off Date (or the related Subsequent Cut-off Date, with respect to
a Subsequent Mortgage Loan), as shown in the Mortgage Loan Schedule, minus the
sum of (i) the principal portion of each Monthly Payment due on a Due Date
subsequent to the Cut-off Date, to the extent received from the Mortgagor or
advanced by the Master Servicer and distributed pursuant to Section 4.01 on or
before such date of determination, (ii) all Principal Prepayments received after
the Cut-off Date, to the extent distributed pursuant to Section 4.01 on or
before such date of determination, (iii) all Liquidation Proceeds and Insurance
Proceeds applied by the Master Servicer as recoveries of principal in accordance
with the provisions of Section 3.12, to the extent distributed pursuant to
Section 4.01 on or before such date of determination and (iv) any Realized Loss
incurred with respect thereto as a result of a Deficient Valuation made during
or prior to the Prepayment Period for the most recent Distribution Date
coinciding with or preceding such date of determination; and (b) as of any date
of determination coinciding with or subsequent to the Distribution Date on which
the proceeds, if any, of a Liquidation Event with respect to such Mortgage Loan
would be distributed, zero. With respect to any REO Property: (a) as of any date
of determination up to but not including the Distribution Date on which the
proceeds, if any, of a Liquidation Event with respect to such REO Property would
be distributed, an amount (not less than zero) equal to the Stated Principal
Balance of the related Mortgage Loan as of the date on which such REO Property
was acquired on behalf of REMIC I, minus the sum of (i) if such REO Property was
acquired before the Distribution Date in any calendar month, the principal
portion of the Monthly Payment due on the Due Date in the calendar month of
acquisition, to the extent advanced by the Master Servicer and distributed
pursuant to Section 4.01 on or before such date of determination, and (ii) the
aggregate amount of REO Principal Amortization in respect of such REO Property
for all previously ended calendar months, to the extent distributed pursuant to
Section 4.01 on or before such date of determination; and (b) as of any date of
determination coinciding with or subsequent to the Distribution Date on which
the proceeds, if any, of a Liquidation Event with respect to such REO Property
would be distributed, zero.

          "Stayed Funds": If the Master Servicer is the subject of a proceeding
under the federal Bankruptcy Code and the making of a Remittance (as defined in
Section 7.02(b)) is prohibited by Section 362 of the federal Bankruptcy Code,
funds that are in the custody of the Master Servicer, a trustee in bankruptcy or
a federal bankruptcy court and should have been the subject of such Remittance
absent such prohibition.

          "Stepdown Date": The earlier to occur of (i) the first Distribution
Date on which the aggregate Certificate Principal Balance of the Class A
Certificates has been reduced to zero and (ii) the later to occur of (a) the
Distribution Date occurring in January 2006 and (b) the first Distribution Date
on which the Credit Enhancement Percentage (calculated for this purpose only
after taking into account distributions of principal on the Mortgage Loans but
prior to any distribution of the Principal Distribution Amount on the
Certificates then entitled to distributions of principal on such Distribution
Date) is equal to or greater than 24.00%.

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<PAGE>

          "Sub-Servicer": Any Person with which the Master Servicer has entered
into a Sub- Servicing Agreement and which meets the qualifications of a
Sub-Servicer pursuant to Section 6.06.

          "Sub-Servicing Account": An account established by a Sub-Servicer
which meets the requirements set forth in Section 6.11 and is otherwise
acceptable to the Master Servicer.

          "Sub-Servicing Agreement": The written contract between the Master
Servicer and a Sub-Servicer relating to servicing and administration of certain
Mortgage Loans as provided in Section 6.06.

          "Subsequent Cut-off Date": With respect to those Subsequent Mortgage
Loans sold to the Trust Fund pursuant to a Subsequent Transfer Instrument, the
first day of the month in which the related Subsequent Transfer Date occurs.

          "Subsequent Group I Mortgage Loan": A Subsequent Mortgage Loan to be
included in Loan Group I.

          "Subsequent Group II Mortgage Loan": A Subsequent Mortgage Loan to be
included in Loan Group II.

          "Subsequent Mortgage Loan": A Mortgage Loan sold by the Depositor to
the Trust Fund pursuant to Section 2.10, such Mortgage Loan being identified on
the Mortgage Loan Schedule attached to a Subsequent Transfer Instrument.

          "Subsequent Mortgage Loan Interest": Any amount constituting (i) a
monthly payment of interest received or advanced at the Net Mortgage Rate with
respect to a Subsequent Group I Mortgage Loan during the Due Periods relating to
the first two Distribution Dates in excess of 6.0986% per annum and (ii) a
monthly payment of interest received or advanced at the Net Mortgage Rate with
respect to a Subsequent Group II Mortgage Loan during the Due Periods relating
to the first two Distribution Dates in excess of 6.5879% per annum. The
Subsequent Mortgage Loan Interest shall be distributable to the Class CE
Certificates. The Subsequent Mortgage Loan Interest shall not be an asset of any
Trust REMIC.

          "Subsequent Mortgage Loan Purchase Agreement": The agreement between
the Depositor and the Seller regarding the transfer of the Subsequent Mortgage
Loans by the Seller to the Depositor.

          "Subsequent Transfer Date": With respect to each Subsequent Transfer
Instrument, the date on which the related Subsequent Mortgage Loans are sold to
the Trust Fund.

          "Subsequent Transfer Instrument": Each subsequent transfer instrument,
dated as of a Subsequent Transfer Date, executed by the Trustee and the
Depositor substantially in the form of Exhibit J, by which Subsequent Mortgage
Loans are sold to the Trust Fund.

          "Substitution Shortfall Amount": As defined in Section 2.03(d).

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<PAGE>

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

          "Telerate Page 3750": The display designated as page "3750" on the Dow
Jones Telerate Capital Markets Report (or such other page as may replace page
3750 on that report for the purpose of displaying London interbank offered rates
of major banks).

          "Termination Price": As defined in Section 9.01.

          "Terminator": As defined in Section 9.01.

          "Transfer": Any direct or indirect transfer, sale, pledge,
hypothecation, or other form of assignment of any Ownership Interest in a
Certificate.

          "Transferee": Any Person who is acquiring by Transfer any Ownership
Interest in a Certificate.

          "Transferor": Any Person who is disposing by Transfer of any Ownership
Interest in a Certificate.

          "Trigger Event": A Trigger Event has occurred with respect to a
Distribution Date if (i) the Delinquency Percentage exceeds 16.75% or (ii) the
percentage equivalent of a fraction, the numerator of which is the aggregate
amount of Realized Losses incurred from the Cut-off Date to the last day of the
related Due Period and the denominator of which is the aggregate Stated
Principal Balance of the Initial Mortgage Loans as of the Cut-off Date and the
Original Pre-Funded Amounts exceeds the applicable percentages set forth below
with respect to such Distribution Date:

                  DISTRIBUTION DATE OCCURRING IN        PERCENTAGE
                ----------------------------------      ----------
                January 2006 through December 2006         1.75%
                January 2007 through December 2007         3.00%
                January 2008 through December 2008         3.75%
                January 2009 and thereafter                4.50%

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

          "Trustee Fee": The amount payable to the Trustee on each Distribution
Date pursuant to Section 8.05 as compensation for all services rendered by it in
the execution of the trust hereby created and in the exercise and performance of
any of the powers and duties of the Trustee

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<PAGE>

hereunder, which amount shall equal the Trustee Fee Rate accrued for one month
multiplied by the sum of (i) the aggregate Scheduled Principal Balance of the
Mortgage Loans and any REO Properties as of the second preceding Due Date (or,
in the case of the initial Distribution Date, as of the Cut-off Date),
calculated on the basis of a 360-day year consisting of twelve 30-day months and
(ii) the aggregate of the amounts on deposit in the Pre-Funding Accounts as of
the second preceding Due Date.

          "Trustee Fee Rate": 0.0065% per annum.

          "Trust Fund": Collectively, all of the assets of each Trust REMIC, any
Master Servicer Prepayment Charge Payment Amounts, the Pre-Funding Accounts, the
Interest Coverage Accounts, the Net WAC Rate Carryover Reserve Account and any
Subsequent Mortgage Loan Interest.

          "Trust REMIC": Each of REMIC I, REMIC II, REMIC III and REMIC IV.

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

          "Uncertificated Balance": The amount of any REMIC I Regular Interest,
REMIC II Regular Interest or REMIC III Regular Interest (other than REMIC II
Regular Interest II-LTS and REMIC III Regular Interest III-LTS) outstanding as
of any date of determination. As of the Closing Date, the Uncertificated Balance
of each REMIC I Regular Interest, each REMIC II Regular Interest and each REMIC
III Regular Interest (other than REMIC II Regular Interest II-LTS and REMIC III
Regular Interest III-LTS) shall equal the amount set forth in the Preliminary
Statement hereto as its initial uncertificated balance. On each Distribution
Date, the Uncertificated Balance of each REMIC I Regular Interest, each REMIC II
Regular Interest and each REMIC III Regular Interest (other than REMIC II
Regular Interest II-LTS and REMIC III Regular Interest III-LTS) shall be reduced
by all distributions of principal made on such REMIC I Regular Interest, such
REMIC II Regular Interest or such REMIC III Regular Interest on such
Distribution Date pursuant to Section 4.01 and, if and to the extent necessary
and appropriate, shall be further reduced on such Distribution Date by Realized
Losses as provided in Section 4.04. The Uncertificated Balance of REMIC III
Regular Interest III-LTZZ shall be increased by interest deferrals as provided
in Section 4.01(a)(1)(C)(i). The Uncertificated Balance of each REMIC I Regular
Interest, each REMIC II Regular Interest and each REMIC III Regular Interest
shall never be less than zero.

          "Uncertificated Interest": With respect to any REMIC I Regular
Interest for any Distribution Date, one month's interest at the REMIC I
Remittance Rate applicable to such REMIC I Regular Interest for such
Distribution Date, accrued on the Uncertificated Balance thereof immediately
prior to such Distribution Date. With respect to any REMIC II Regular Interest
for any Distribution Date, one month's interest at the REMIC II Remittance Rate
applicable to such REMIC II Regular Interest for such Distribution Date, accrued
on the Uncertificated Balance or Uncertificated Notional Amount thereof
immediately prior to such Distribution Date. With respect to any REMIC III
Regular Interest for any Distribution Date, one month's interest at the REMIC
III Remittance Rate applicable to such REMIC III Regular Interest for such
Distribution Date, accrued on the Uncertificated Balance or Uncertificated
Notional Amount thereof immediately prior to such

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<PAGE>

Distribution Date. Uncertificated Interest in respect of any REMIC I Regular
Interest, REMIC II Regular Interest or REMIC III Regular Interest, shall accrue
on the basis of a 360-day year consisting of twelve 30-day months.
Uncertificated Interest with respect to each Distribution Date, as to any REMIC
I Regular Interest, REMIC II Regular Interest or REMIC III Regular Interest,
shall be reduced by an amount equal to the sum of (a) the aggregate Prepayment
Interest Shortfall, if any, for such Distribution Date to the extent not covered
by payments pursuant to Section 4.03(e) and (b) the aggregate amount of any
Relief Act Interest Shortfall, if any allocated, in each case, to such REMIC I
Regular Interest, REMIC II Regular Interest or REMIC III Regular Interest
pursuant to Section 1.02. In addition, Uncertificated Interest with respect to
each Distribution Date, as to any REMIC I Regular Interest, REMIC II Regular
Interest or REMIC III Regular Interest shall be reduced by Realized Losses, if
any, allocated to such REMIC I Regular Interest, REMIC II Regular Interest or
REMIC III Regular Interest pursuant to Section 1.02 and Section 4.04.

          "Uncertificated Notional Amount": With respect to REMIC III Regular
Interest III- LTS and the 1st Distribution Date through the 30th Distribution
Date, the Uncertificated Balance of REMIC II Regular Interest II-LTS.

          "Underwriters' Exemption": An individual exemption issued by the
United States Department of Labor to Deutsche Bank Securities Inc. in Prohibited
Transaction Exemption ("PTE") April 18, 1991 as PTE 91-23 at 56 F. R. 15,936 and
amended on July 21, 1997 as PTE 97-34 at 62 F. R. 39021, further amended on
November 13, 2000 by PTE 2000-58 at 65 F. R. 67765 and on August 22, 2002 by PTE
2001-41, 67 Fed. Reg. 54487, which generally provides an exemption for offerings
in which Deutsche Bank Securities Inc. or any person directly or indirectly,
through one or more intermediaries, controlling, controlled by or under common
control with Deutsche Bank Securities Inc. is an underwriter, placement agent or
a manager or co-manager of the underwriting syndicate or selling group where the
entity and the offered securities meet specified conditions. The Underwriters'
Exemption, as amended, provides a partial exemption from section 406 of ERISA
and section 4975 of the Code for transactions involving securities representing
an interest in certain types of entities and entitling the holder to payments
with respect to the entity's assets.

          "Uninsured Cause": Any cause of damage to a Mortgaged Property such
that the complete restoration of such property is not fully reimbursable by the
hazard insurance policies required to be maintained pursuant to Section 3.08.

          "United States Person": A citizen or resident of the United States, a
corporation, partnership or other entity created or organized in, or under the
laws of, the United States, any state thereof or the District of Columbia
(except, in the case of a partnership, to the extent provided in regulations)
provided that, solely for purposes of the restrictions on the transfer of Class
R Certificates, no partnership or other entity treated as a partnership for
United States federal income tax purposes shall be treated as a United States
Person unless all persons that own an interest in such partnership either
directly or through any entity that is not a corporation for United States
federal income tax purposes are required by the applicable operative agreement
to be United States Persons, or an estate whose income is subject to United
States federal income tax regardless of its source, or a trust if a court within
the United States is able to exercise primary supervision over the
administration of the trust and one or more United States persons have the
authority to control all substantial decisions of the trust. To the extent
prescribed in regulations by the Secretary of the

                                       55

<PAGE>

Treasury, which have not yet been issued, a trust which was in existence on
August 20, 1996 (other than a trust treated as owned by the grantor under
subpart E of part I of subchapter J of chapter 1 of the Code), and which was
treated as a United States person on August 20, 1996 may elect to continue to be
treated as a United States person notwithstanding the previous sentence. The
term "United States" shall have the meaning set forth in Section 7701 of the
Code.

          "Value": With respect to any Mortgaged Property, the lesser of (i) the
value thereof as determined by an appraisal made for the originator of the
Mortgage Loan at the time of origination of the Mortgage Loan by an appraiser
who met the minimum requirements of the Financial Institutions Reform, Recovery
and Enforcement Act of 1989, and (ii) the purchase price paid for the related
Mortgaged Property by the Mortgagor with the proceeds of the Mortgage Loan,
provided, however, in the case of a Refinanced Mortgage Loan, such value of the
Mortgaged Property is based solely upon the value determined by an appraisal
made for the originator of such Refinanced Mortgage Loan at the time of
origination of such Refinanced Mortgage Loan by an appraiser who met the minimum
requirements of the Financial Institutions Reform, Recovery and Enforcement Act
of 1989.

          "Voting Rights": The portion of the voting rights of all of the
Certificates which is allocated to any Certificate. With respect to any date of
determination, 97% of all Voting Rights will be allocated among the holders of
the Class A Certificates, the Mezzanine Certificates and the Class CE
Certificates in proportion to the then outstanding Certificate Principal
Balances of their respective Certificates, 1% of all Voting Rights will be
allocated to the holders of the Class S Certificates in proportion to the then
outstanding Notional Amount of their Certificates, 1% of all Voting Rights will
be allocated to the holders of the Class P Certificates and 1% of all Voting
Rights will be allocated among the holders of the Residual Certificates. The
Voting Rights allocated to each Class of Certificate shall be allocated among
Holders of each such Class in accordance with their respective Percentage
Interests as of the most recent Record Date.

          SECTION 1.02. Allocation of Certain Interest Shortfalls.

          For purposes of calculating the amount of Accrued Certificate Interest
and the amount of the Interest Distribution Amount for the Class A Certificates,
the Mezzanine Certificates, the Class S Certificates and the Class CE
Certificates for any Distribution Date, (1) the aggregate amount of any
Prepayment Interest Shortfalls (to the extent not covered by payments by the
Master Servicer pursuant to Section 4.03(e)) and any Relief Act Interest
Shortfall incurred in respect of the Mortgage Loans for any Distribution Date
shall be allocated first, among the Class CE Certificates on a PRO RATA basis
based on, and to the extent of, one month's interest at the then applicable
respective Pass-Through Rate on the respective Notional Amount of each such
Certificate and thereafter, among the Class A Certificates, the Mezzanine
Certificates and the Class S Certificates on a PRO RATA basis based on, and to
the extent of, one month's interest at the then applicable respective
Pass-Through Rate on the respective Certificate Principal Balance or Notional
Amount of each such Certificate and (2) the aggregate amount of any Realized
Losses incurred for any Distribution Date and Net WAC Rate Carryover Amounts
incurred for any Distribution Date shall be allocated among the Class CE
Certificates on a PRO RATA basis based on, and to the extent of, one month's
interest at the then applicable respective Pass-Through Rate on the respective
Notional Amount of each such Certificate.

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<PAGE>

          For purposes of calculating the amount of Uncertificated Interest for
the REMIC I Regular Interests for any Distribution Date, the aggregate amount of
any Prepayment Interest Shortfalls (to the extent not covered by payments by the
Master Servicer pursuant to Section 4.03(e)) and Relief Act Interest Shortfalls
incurred in respect of the Mortgage Loans for any Distribution Date shall be
allocated first, (a) with respect to the Group I Mortgage Loans, to REMIC I
Regular Interest I-LT1 and REMIC I Regular Interest I-LT1PF, in each case to the
extent of one month's interest at the then applicable respective REMIC I
Remittance Rate on the respective Uncertificated Balance of each such REMIC I
Regular Interest; provided, however, with respect to the first two Distribution
Dates, such amounts relating to the Initial Group I Mortgage Loans shall be
allocated to REMIC I Regular Interest I-LT1 and such amounts relating to the
Subsequent Group I Mortgage Loans shall be allocated to REMIC I Regular Interest
I-LT1PF and (b) with respect to the Group II Mortgage Loans, to REMIC I Regular
Interest I-LT2 and REMIC I Regular Interest I-LT2PF, in each case to the extent
of one month's interest at the then applicable respective REMIC I Remittance
Rate on the respective Uncertificated Balance of each such REMIC I Regular
Interest; provided, however, with respect to the first two Distribution Dates,
such amounts relating to the Initial Group I Mortgage Loans shall be allocated
to REMIC I Regular Interest I-LT2 and such amounts relating to the Subsequent
Group I Mortgage Loans shall be allocated to REMIC I Regular Interest I-LT2PF.

          For purposes of calculating the amount of Uncertificated Interest for
the REMIC II Regular Interests for any Distribution Date, the aggregate amount
of any Prepayment Interest Shortfalls (to the extent not covered by payments by
the Master Servicer pursuant to Section 4.03(e)) and Relief Act Interest
Shortfalls incurred in respect of the Mortgage Loans for any Distribution Date
shall be allocated first, to REMIC II Regular Interest II-LT1 and REMIC II
Regular Interest II-LTP and then, to REMIC II Regular Interest II-LTS, in each
case to the extent of one month's interest at the then applicable respective
REMIC II Remittance Rate on the respective Uncertificated Balance of each such
REMIC II Regular Interest.

          For purposes of calculating the amount of Uncertificated Interest for
the REMIC III Regular Interests for any Distribution Date, the aggregate amount
of any Prepayment Interest Shortfalls (to the extent not covered by payments by
the Master Servicer pursuant to Section 4.03(e)) and Relief Act Interest
Shortfalls incurred in respect of the Mortgage Loans for any Distribution Date
shall be allocated first, to Uncertificated Interest payable to REMIC III
Regular Interest III-LTAA and REMIC III Regular Interest III-LTZZ up to an
aggregate amount equal to the REMIC III Interest Loss Allocation Amount, 98% and
2%, respectively, and thereafter among REMIC III Regular Interest III-LTAF1,
REMIC III Regular Interest III-LTAF2, REMIC III Regular Interest III-LTAF3,
REMIC III Regular Interest III-LTAF4, REMIC III Regular Interest III-LTAV1,
REMIC III Regular Interest III-LTAV2, REMIC III Regular Interest III-LTAV3,
REMIC III Regular Interest III-LTM1, REMIC III Regular Interest III-LTM2, REMIC
III Regular Interest III-LTM3 and REMIC III Regular Interest III-LTZZ PRO RATA
based on, and to the extent of, one month's interest at the then applicable
respective Pass-Through Rate on the respective Uncertificated Balance of each
such REMIC II Regular Interest.

          SECTION 1.03 Rights of the NIMS Insurer.

          Each of the rights of the NIMS Insurer set forth in this Agreement
shall exist so long as (i) the NIMS Insurer has undertaken to guarantee certain
payments of notes issued pursuant to an

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<PAGE>

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

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<PAGE>

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                        ORIGINAL ISSUANCE OF CERTIFICATES

          SECTION 2.01. Conveyance of Mortgage Loans.

          The Depositor, concurrently with the execution and delivery hereof,
does hereby transfer, assign, set over and otherwise convey to the Trustee
without recourse for the benefit of the Certificateholders all the right, title
and interest of the Depositor, including any security interest therein for the
benefit of the Depositor, in and to the Mortgage Loans identified on the
Mortgage Loan Schedule, the rights of the Depositor under the Mortgage Loan
Purchase Agreement, and all other assets included or to be included in REMIC I.
Such assignment includes all interest and principal received by the Depositor or
the Master Servicer on or with respect to the Mortgage Loans (other than
payments of principal and interest due on such Mortgage Loans on or before the
Cut-off Date). The Depositor herewith delivers to the Trustee an executed copy
of the Mortgage Loan Purchase Agreement, the PMI Policy, the Original Pre-Funded
Amounts and the required deposits to the Interest Coverage Accounts and the
Trustee, on behalf of the Certificateholders, acknowledges receipt of the same.

          In connection with such transfer and assignment, the Depositor does
hereby deliver to, and deposit with, the Trustee, the following documents or
instruments with respect to each Initial Mortgage Loan so transferred and
assigned, and the Depositor shall, in accordance with Section 2.10, deliver or
cause to be delivered to the Trustee, with respect to each Subsequent Mortgage
Loan, the following documents or instruments (a "Mortgage File"):

          (i) the original Mortgage Note, endorsed in blank, without recourse,
     or in the following form: "Pay to the order of Deutsche Bank National Trust
     Company, as Trustee under the applicable agreement, without recourse," with
     all prior and intervening endorsements showing a complete chain of
     endorsement from the originator to the Person so endorsing to the Trustee,
     or with respect to any lost Mortgage Note, an original Lost Note Affidavit;
     provided however, that such substitutions of Lost Note Affidavits for
     original Mortgage Notes may occur only with respect to Mortgage Loans, the
     aggregate Cut-off Date Principal Balance of which is less than or equal to
     2.00% of the Pool Balance as of the Cut- off Date;

          (ii) the original Mortgage with evidence of recording thereon, and a
     copy, certified by the appropriate recording office, of the recorded power
     of attorney, if the Mortgage was executed pursuant to a power of attorney,
     with evidence of recording thereon;

          (iii) an original Assignment of the Mortgage assigned in blank,
     without recourse;

          (iv) the original recorded intervening Assignment or Assignments of
     the Mortgage showing a complete chain of assignment from the originator to
     the Person assigning the Mortgage to the Trustee as contemplated by the
     immediately preceding clause (iii) or the original unrecorded intervening
     Assignments;

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

          (vi) the original lenders's title insurance policy or an attorney's
     opinion of title or similar guarantee of title acceptable to mortgage
     lenders generally in the jurisdiction where the Mortgaged Property is
     located, together with all endorsements or riders which were issued with or
     subsequent to the issuance of such policy, or in the event such original
     title policy is unavailable, a written commitment or uniform binder or
     preliminary report of title issued by the title insurance or escrow
     company.

          If any of the documents referred to in Sections 2.01(ii), (iii) or
(iv) above has as of the Closing Date (or the related Subsequent Transfer Date,
with respect to the Subsequent Mortgage Loans) been submitted for recording but
either (x) has not been returned from the applicable public recording office or
(y) has been lost or such public recording office has retained the original of
such document, the obligations of the Depositor to deliver such documents shall
be deemed to be satisfied upon (1) delivery to the Trustee, or to the
appropriate Custodian on behalf of the Trustee, of a copy of each such document
certified by the Originator in the case of (x) above or the applicable public
recording office in the case of (y) above to be a true and complete copy of the
original that was submitted for recording and (2) if such copy is certified by
the Originator, delivery to the Trustee, or to the appropriate Custodian on
behalf of the Trustee, promptly upon receipt thereof of either the original or a
copy of such document certified by the applicable public recording office to be
a true and complete copy of the original. If the original lender's title
insurance policy was not delivered pursuant to Section 2.01(vi) above, the
Depositor shall deliver or cause to be delivered to the Trustee, or to the
appropriate Custodian on behalf of the Trustee, promptly after receipt thereof,
the original lender's title insurance policy. The Depositor shall deliver or
cause to be delivered to the Trustee, or to the appropriate Custodian on behalf
of the Trustee, promptly upon receipt thereof any other original documents
constituting a part of a Mortgage File received with respect to any Mortgage
Loan, including, but not limited to, any original documents evidencing an
assumption or modification of any Mortgage Loan.

          The Master Servicer (in its capacity as Originator) shall promptly
(and in no event later than thirty (30) Business Days, subject to extension upon
a mutual agreement between the Master Servicer and the Trustee, following the
later of (i) the Closing Date (or the related Subsequent Transfer Date, with
respect to the Subsequent Mortgage Loans), (ii) the date on which the Originator
receives the Assignment from the Custodian and (iii) the date of receipt by the
Master Servicer of the recording information for a Mortgage) submit or cause to
be submitted for recording, at no expense to the Trust Fund or the Trustee, in
the appropriate public office for real property records, each Assignment
referred to in Sections 2.01(iii) and (iv) above and shall execute each original
Assignment referred to in section 2.01(iii) above in the following form:
"Deutsche Bank National Trust Company, as Trustee under the applicable
agreement." In the event that any such Assignment is lost or returned unrecorded
because of a defect therein, the Master Servicer (in its capacity as Originator)
shall promptly prepare or cause to be prepared a substitute Assignment or cure
or cause to be cured such defect, as the case may be, and thereafter cause each
such Assignment to be duly recorded. Notwithstanding the foregoing, however, for
administrative convenience and facilitation of servicing and to reduce closing
costs, the Assignments of Mortgage shall not be required to be submitted for
recording (except with respect to any Mortgage Loan located in

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Maryland) unless such failure to record would result in a withdrawal or a
downgrading by any Rating Agency of the rating on any Class of Certificates;
provided further, however, each Assignment of Mortgage shall be submitted for
recording by the Master Servicer (in its capacity as Originator) in the manner
described above, at no expense to the Trust Fund or the Trustee, upon the
earliest to occur of: (i) reasonable direction by Holders of Certificates
entitled to at least 25% of the Voting Rights, (ii) failure of the Master
Servicer Termination Test, (iii) the occurrence of a bankruptcy, insolvency or
foreclosure relating to the Originator, (iv) the occurrence of a servicing
transfer as described in Section 7.02 hereof and (v) if the Originator is not
the Master Servicer and with respect to any one assignment of Mortgage, the
occurrence of a bankruptcy, insolvency or foreclosure relating to the Mortgagor
under the related Mortgage. Notwithstanding the foregoing, if the Master
Servicer is unable to pay the cost of recording the Assignments of Mortgage,
such expense will be paid by the Trustee and shall be reimbursable to the
Trustee as an Extraordinary Trust Fund Expense.

          All original documents relating to the Mortgage Loans that are not
delivered to the Trustee, or to the appropriate Custodian on behalf of the
Trustee, are and shall be held by or on behalf of the Originator, the Depositor
or the Master Servicer, as the case may be, in trust for the benefit of the
Trustee on behalf of the Certificateholders. In the event that any such original
document is required pursuant to the terms of this Section to be a part of a
Mortgage File, such document shall be delivered promptly to the Trustee, or to
the appropriate Custodian on behalf of the Trustee. Any such original document
delivered to or held by the Depositor that is not required pursuant to the terms
of this Section to be a part of a Mortgage File, shall be delivered promptly to
the Master Servicer.

          SECTION 2.02. Acceptance of REMIC I by the Trustee.

          Subject to the provisions of Section 2.01 and subject to any
exceptions noted on the exception report described in the next paragraph below,
the Trustee acknowledges receipt (or, with respect to Mortgage Loans subject to
a Custodial Agreement, receipt by the respective Custodian as the duly appointed
agent of the Trustee) of the documents referred to in Section 2.01 (other than
such documents described in Section 2.01(v)) above and all interests and all
other assets included in the definition of "REMIC I" under clauses (i), (iii),
(iv) and (v) (to the extent of amounts deposited into the Distribution Account)
and declares that it, or such Custodian as its agent, holds and will hold such
documents and the other documents delivered to it constituting a Mortgage File,
and that it holds or will hold all such assets and such other assets included in
the definition of "REMIC I" in trust for the exclusive use and benefit of all
present and future Certificateholders.

          On or prior to the Closing Date, the Trustee agrees, for the benefit
of the Certificateholders, to execute and deliver (or cause the Custodian to
execute and deliver) to the Depositor and the NIMS Insurer an acknowledgment of
receipt of the Mortgage Note (with any exceptions noted), substantially in the
form attached as Exhibit C-3 hereto.

          The Trustee agrees, for the benefit of the Certificateholders, to
review (or cause a Custodian on its behalf to review) each Mortgage Note within
45 days of the Closing Date (or the related Subsequent Transfer Date, with
respect to the Subsequent Mortgage Loans) and to certify in substantially the
form attached hereto as Exhibit C-1 (or cause the Custodian to certify in the
form of the Initial Certification attached to the Custodial Agreement) that, as
to each Mortgage Loan listed

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in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any
Mortgage Loan specifically identified in the exception report annexed thereto as
not being covered by such certification), (i) all documents constituting part of
such Mortgage File (other than such documents described in Section 2.01(v))
required to be delivered to it pursuant to this Agreement are in its possession,
(ii) such documents have been reviewed by it or such Custodian and are not
mutilated, torn or defaced unless initialed by the related borrower and relate
to such Mortgage Loan, (iii) based on its or the Custodian's examination and
only as to the foregoing, the information set forth in the Mortgage Loan
Schedule that corresponds to items (1) through (3), (6), (9), (10), (13), (15)
and (19) of the definition of "Mortgage Loan Schedule" accurately reflects
information set forth in the Mortgage File. It is herein acknowledged that, in
conducting such review, the Trustee or such Custodian was under no duty or
obligation (i) to inspect, review or examine any such documents, instruments,
certificates or other papers to determine whether they are genuine, enforceable,
or appropriate for the represented purpose or whether they have actually been
recorded or that they are other than what they purport to be on their face or
(ii) to determine whether any Mortgage File should include any of the documents
specified in clause (v) of Section 2.01.

          Prior to the first anniversary date of this Agreement the Trustee
shall deliver to the Depositor, the Master Servicer and the NIMS Insurer a final
certification in the form annexed hereto as Exhibit C-2 (or shall cause the
Custodian to deliver to the Trustee, the Depositor, the Master Servicer and the
NIMS Insurer a final certification in the form attached to the Custodial
Agreement) evidencing the completeness of the Mortgage Files, with any
applicable exceptions noted thereon, with respect to all of the Initial Mortgage
Loans and the Subsequent Mortgage Loans. Upon the request of the Master
Servicer, any exception report related to the final certification shall be
provided in an electronic computer readable format as mutually agreed upon by
the Master Servicer and the Trustee.

          If in the process of reviewing the Mortgage Files and making or
preparing, as the case may be, the certifications referred to above, the Trustee
or any Custodian finds any document or documents constituting a part of a
Mortgage File to be missing, mutilated, torn or defaced or does not conform to
the requirements identified above, at the conclusion of its review the Trustee
(or a Custodian on behalf of the Trustee) shall so notify the Depositor, the
NIMS Insurer, the Trustee and the Master Servicer. In addition, upon the
discovery by the Depositor, the NIMS Insurer, the Master Servicer or the Trustee
of a breach of any of the representations and warranties made by the Originator
in the Mortgage Loan Purchase Agreement in respect of any Mortgage Loan which
materially adversely affects such Mortgage Loan or the interests of the related
Certificateholders in such Mortgage Loan, the party discovering such breach
shall give prompt written notice to the other parties.

          The Trustee (or a Custodian on behalf of the Trustee) shall, at the
written request and expense of any Certificateholder, provide a written report
to such Certificateholder, of all Mortgage Files released to the Master Servicer
for servicing purposes.

          SECTION 2.03. Repurchase or Substitution of Mortgage Loans by the
                        Originator or the Depositor; Payment of Prepayment
                        Charge Payment Amounts.

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          (a) Upon discovery or receipt of notice (including notice under
Section 2.02) of any materially defective document in, or that a document is
missing from, the Mortgage File or of the breach by the Originator of any
representation, warranty or covenant under the Mortgage Loan Purchase Agreement
in respect of any Mortgage Loan which materially adversely affects the value of
such Mortgage Loan or the interest therein of the Certificateholders, the
Trustee shall promptly notify the Originator, the NIMS Insurer and the Master
Servicer of such defect, missing document or breach and request that the
Originator deliver such missing document or cure such defect or breach within 90
days from the date the Originator was notified of such missing document, defect
or breach, and if the Originator does not deliver such missing document or cure
such defect or breach in all material respects during such period, the Master
Servicer (or, in accordance with Section 6.06(b), the Trustee) shall enforce the
obligations of the Originator under the Mortgage Loan Purchase Agreement to
repurchase such Mortgage Loan from REMIC I at the Purchase Price within 90 days
after the date on which the Originator was notified (subject to Section 2.03(d))
of such missing document, defect or breach, if and to the extent that the
Originator is obligated to do so under the Mortgage Loan Purchase Agreement. The
Purchase Price for the repurchased Mortgage Loan shall be deposited in the
Collection Account, and the Trustee, upon receipt of written certification from
the Master Servicer of such deposit, shall release to the Originator the related
Mortgage File and shall execute and deliver such instruments of transfer or
assignment, in each case without recourse, as the Originator shall furnish to it
and as shall be necessary to vest in the Originator any Mortgage Loan released
pursuant hereto, and the Trustee shall not have any further responsibility with
regard to such Mortgage File. In lieu of repurchasing any such Mortgage Loan as
provided above, if so provided in the Mortgage Loan Purchase Agreement, the
Originator may cause such Mortgage Loan to be removed from REMIC I (in which
case it shall become a Deleted Mortgage Loan) and substitute one or more
Qualified Substitute Mortgage Loans in the manner and subject to the limitations
set forth in Section 2.03(c). It is understood and agreed that the obligation of
the Originator to cure or to repurchase (or to substitute for) any Mortgage Loan
as to which a document is missing, a material defect in a document exists or as
to which such a breach has occurred and is continuing shall constitute the sole
remedy respecting such omission, defect or breach available to the Trustee on
behalf of the Certificateholders.

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

          (ii) Notwithstanding the provisions of Section 2.03(b)(i) above,

          (A) on the later of (x) the Master Servicer Remittance Date next
     following the earlier of discovery by the Master Servicer or receipt of
     notice by the Master Servicer of the breach of the representation made by
     the Master Servicer in Section 2.05(vii), which breach materially and
     adversely affects the interests of the Holders of the Class P Certificates
     to any Prepayment Charge and (y) the Master Servicer Remittance Date next
     following the Prepayment Period relating to such a breach, the Master
     Servicer shall deposit into the Collection Account the amount of the
     scheduled Prepayment Charge, less any amount

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     collected and deposited by the Master Servicer into the Collection Account
     in respect of such Prepayment Charge; and

          (B) on the later of (x) the Master Servicer Remittance Date next
     following the earlier of discovery by the Master Servicer or receipt of
     notice by the Master Servicer of the breach of the covenant made by the
     Master Servicer in Section 2.05(viii), which breach materially and
     adversely affects the interests of the Holders of the Class P Certificates
     to any Prepayment Charge and (y) the Master Servicer Remittance Date next
     following the Prepayment Period relating to such a breach, the Master
     Servicer shall deposit into the Collection Account, as a Master Servicer
     Prepayment Charge Payment Amount, the amount of the waived Prepayment
     Charge, but only to the extent required under Section 2.03(b)(iii) below.

          (iii) If with respect to any Prepayment Period,

          (A) the dollar amount of Prepayment Charges that are the subject of
     breaches by the Master Servicer of the covenant made by the Master Servicer
     in Section 2.05(viii), which breaches materially and adversely affects the
     interests of the Holders of the Class P Certificates to such Prepayment
     Charges, exceeds

          (B) 5% of the total dollar amount of Prepayment Charges payable by
     Mortgagors in connection with Principal Prepayments on the related Mortgage
     Loans that occurred during such Prepayment Period,

then the amount required to be paid by the Master Servicer pursuant to Section
2.03(b)(ii)(B) above shall be limited to an amount, that when added to the
amount of Prepayment Charges actually collected by the Master Servicer in
respect of Prepayment Charges relating to Principal Prepayments on the related
Mortgage Loans that occurred during such Prepayment Period, will yield a sum
equal to 95% of the total dollar amount of Prepayment Charges (exclusive of (A)
Prepayment Charges not enforced or collected upon because (i) the enforceability
thereof shall have been limited by bankruptcy, insolvency, moratorium,
receivership and other similar laws relating to creditors' rights generally or
(ii) the collectability thereof shall have been limited due to acceleration in
connection with a foreclosure or other involuntary payment and (B) Prepayment
Charges waived by the Master Servicer when such waiver does not breach the
covenant set forth in Section 2.05(viii)) payable by Mortgagors in connection
with Principal Prepayments on the related Mortgage Loans that occurred during
such Prepayment Period.

          (c) Any substitution of Qualified Substitute Mortgage Loans for
Deleted Mortgage Loans made pursuant to Section 2.03(a), in the case of the
Originator, or Section 2.03(b), in the case of the Depositor, must be effected
prior to the date which is two years after the Startup Day for REMIC I.

          As to any Deleted Mortgage Loan for which the Originator or the
Depositor substitutes a Qualified Substitute Mortgage Loan or Loans, such
substitution shall be effected by the Originator or the Depositor, as the case
may be, delivering to the Trustee (or a Custodian on behalf of the Trustee), for
such Qualified Substitute Mortgage Loan or Loans, the Mortgage Note, the

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Mortgage, the Assignment to the Trustee, and such other documents and
agreements, with all necessary endorsements thereon, as are required by Section
2.01, together with an Officers' Certificate providing that each such Qualified
Substitute Mortgage Loan satisfies the definition thereof and specifying the
Substitution Shortfall Amount (as described below), if any, in connection with
such substitution. The Trustee (or a Custodian on behalf of the Trustee) shall
acknowledge receipt for such Qualified Substitute Mortgage Loan or Loans and,
within ten Business Days thereafter, review such documents as specified in
Section 2.02 and deliver to the Depositor, the NIMS Insurer, the Trustee and the
Master Servicer, with respect to such Qualified Substitute Mortgage Loan or
Loans, a certification substantially in the form attached hereto as Exhibit C-1,
with any applicable exceptions noted thereon. Within one year of the date of
substitution, the Trustee shall deliver to the Depositor, the NIMS Insurer and
the Master Servicer a certification substantially in the form of Exhibit C-2
hereto with respect to such Qualified Substitute Mortgage Loan or Loans, with
any applicable exceptions noted thereon. Monthly Payments due with respect to
Qualified Substitute Mortgage Loans in the month of substitution are not part of
REMIC I and will be retained by the Depositor or the Originator, as the case may
be. For the month of substitution, distributions to Certificateholders will
reflect the Monthly Payment due on such Deleted Mortgage Loan on or before the
Due Date in the month of substitution, and the Depositor or the Originator, as
the case may be, shall thereafter be entitled to retain all amounts subsequently
received in respect of such Deleted Mortgage Loan. The Depositor shall give or
cause to be given written notice to the Certificateholders and the NIMS Insurer
that such substitution has taken place, shall amend the Mortgage Loan Schedule
to reflect the removal of such Deleted Mortgage Loan from the terms of this
Agreement and the substitution of the Qualified Substitute Mortgage Loan or
Loans and shall deliver a copy of such amended Mortgage Loan Schedule to the
Trustee and the NIMS Insurer. Upon such substitution, such Qualified Substitute
Mortgage Loan or Loans shall constitute part of the Mortgage Pool and shall be
subject in all respects to the terms of this Agreement and, in the case of a
substitution effected by the Originator, the Mortgage Loan Purchase Agreement,
including all applicable representations and warranties thereof.

          For any month in which the Depositor or the Originator substitutes one
or more Qualified Substitute Mortgage Loans for one or more Deleted Mortgage
Loans, the Master Servicer will determine the amount (the "Substitution
Shortfall Amount"), if any, by which the aggregate Purchase Price of all such
Deleted Mortgage Loans exceeds the aggregate of, as to each such Qualified
Substitute Mortgage Loan, the Scheduled Principal Balance thereof as of the date
of substitution, together with one month's interest on such Scheduled Principal
Balance at the applicable Net Mortgage Rate. On the date of such substitution,
the Depositor or the Originator, as the case may be, will deliver or cause to be
delivered to the Master Servicer for deposit in the Collection Account an amount
equal to the Substitution Shortfall Amount, if any, and the Trustee, upon
receipt of the related Qualified Substitute Mortgage Loan or Loans and
certification by the Master Servicer of such deposit, shall release to the
Depositor or the Originator, as the case may be, the related Mortgage File or
Files and shall execute and deliver such instruments of transfer or assignment,
in each case without recourse, as the Depositor or the Originator, as the case
may be, shall deliver to it and as shall be necessary to vest therein any
Deleted Mortgage Loan released pursuant hereto.

          In addition, the Depositor or the Originator, as the case may be,
shall obtain at its own expense and deliver to the Trustee and the NIMS Insurer
an Opinion of Counsel to the effect that

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such substitution will not cause (a) any federal tax to be imposed on any Trust
REMIC, including without limitation, any federal tax imposed on "prohibited
transactions" under Section 860F(a)(1) of the Code or on "contributions after
the startup date" under Section 860G(d)(1) of the Code, or (b) any Trust REMIC
to fail to qualify as a REMIC at any time that any Certificate is outstanding.

          (d) Upon discovery by the Depositor, the NIMS Insurer, the Originator,
the Master Servicer or the Trustee that any Mortgage Loan does not constitute a
"qualified mortgage" within the meaning of Section 860G(a)(3) of the Code, the
party discovering such fact shall within two Business Days give written notice
thereof to the other parties. In connection therewith, the Originator or the
Depositor shall repurchase or, subject to the limitations set forth in Section
2.03(c), substitute one or more Qualified Substitute Mortgage Loans for the
affected Mortgage Loan within 90 days of the earlier of discovery or receipt of
such notice with respect to such affected Mortgage Loan. Such repurchase or
substitution shall be made by the Originator. Any such repurchase or
substitution shall be made in the same manner as set forth in Section 2.03(a).
The Trustee shall reconvey to the Depositor or the Originator, as the case may
be, the Mortgage Loan to be released pursuant hereto in the same manner, and on
the same terms and conditions, as it would a Mortgage Loan repurchased for
breach of a representation or warranty.

          SECTION 2.04. [Reserved].

          SECTION 2.05. Representations, Warranties and Covenants of the Master
                        Servicer.

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

          (i) The Master Servicer is a corporation duly organized, validly
     existing and in good standing under the laws of the State of Delaware and
     is duly authorized and qualified to transact any and all business
     contemplated by this Agreement to be conducted by the Master Servicer in
     any state in which a Mortgaged Property is located or is otherwise not
     required under applicable law to effect such qualification and, in any
     event, is in compliance with the doing business laws of any such State, to
     the extent necessary to ensure its ability to enforce each Mortgage Loan
     and to service the Mortgage Loans in accordance with the terms of this
     Agreement;

          (ii) The Master Servicer has the full corporate power and authority to
     service each Mortgage Loan, and to execute, deliver and perform, and to
     enter into and consummate the transactions contemplated by this Agreement
     and has duly authorized by all necessary corporate action on the part of
     the Master Servicer the execution, delivery and performance of this
     Agreement; and this Agreement, assuming the due authorization, execution
     and delivery thereof by the Depositor and the Trustee, constitutes a legal,
     valid and binding obligation of the Master Servicer, enforceable against
     the Master Servicer in accordance with its terms, except to the extent that
     (a) the enforceability thereof may be limited by bankruptcy, insolvency,
     moratorium, receivership and other similar laws relating to creditors'
     rights generally and (b) the remedy of specific performance and injunctive
     and other forms

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<PAGE>

     of equitable relief may be subject to the equitable defenses and to the
     discretion of the court before which any proceeding therefor may be
     brought;

          (iii) The execution and delivery of this Agreement by the Master
     Servicer, the servicing of the Mortgage Loans by the Master Servicer
     hereunder, the consummation of any other of the transactions herein
     contemplated, and the fulfillment of or compliance with the terms hereof
     are in the ordinary course of business of the Master Servicer and will not
     (A) result in a breach of any term or provision of the charter or by-laws
     of the Master Servicer or (B) conflict with, result in a breach, violation
     or acceleration of, or result in a default under, the terms of any other
     material agreement or instrument to which the Master Servicer is a party or
     by which it may be bound, or any statute, order or regulation applicable to
     the Master Servicer of any court, regulatory body, administrative agency or
     governmental body having jurisdiction over the Master Servicer; and the
     Master Servicer is not a party to, bound by, or in breach or violation of
     any indenture or other agreement or instrument, or subject to or in
     violation of any statute, order or regulation of any court, regulatory
     body, administrative agency or governmental body having jurisdiction over
     it, which materially and adversely affects or, to the Master Servicer's
     knowledge, would in the future materially and adversely affect, (x) the
     ability of the Master Servicer to perform its obligations under this
     Agreement or (y) the business, operations, financial condition, properties
     or assets of the Master Servicer taken as a whole;

          (iv) The Master Servicer is an approved seller/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;

          (v) Except as disclosed in the Prospectus Supplement, no litigation is
     pending against the Master Servicer that would materially and adversely
     affect the execution, delivery or enforceability of this Agreement or the
     ability of the Master Servicer to service the Mortgage Loans or to perform
     any of its other obligations hereunder in accordance with the terms hereof;

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

          (vii) The information set forth in the Prepayment Charge Schedule
     attached hereto as Schedule 2 (including the prepayment charge summary
     attached thereto) is complete, true and correct in all material respects at
     the date or dates respecting which such information is furnished and each
     Prepayment Charge is permissible and enforceable in accordance with its
     terms (except to the extent 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
     collectability thereof may be limited due to acceleration in connection
     with a foreclosure or other involuntary payment;

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          (viii) The Master Servicer will not waive any Prepayment Charge or
     part of a Prepayment Charge unless, (i) the enforceability thereof shall
     have been limited by bankruptcy, insolvency, moratorium, receivership and
     other similar laws relating to creditors' rights generally or (ii) the
     collectability thereof shall have been limited due to acceleration in
     connection with a foreclosure or other involuntary payment or (iii) in the
     Master Servicer's reasonable judgment as described in Section 3.01 hereof,
     (x) such waiver relates to a default or a reasonably foreseeable default,
     (y) such waiver would maximize recovery of total proceeds taking into
     account the value of such Prepayment Charge and related Mortgage Loan and
     (z) doing so is standard and customary in servicing similar Mortgage Loans
     (including any waiver of a Prepayment Charge in connection with a
     refinancing of a Mortgage Loan that is related to a default or a reasonably
     foreseeable default). In no event will the Master Servicer waive a
     Prepayment Charge in connection with a refinancing of a Mortgage Loan that
     is not related to a default or a reasonably foreseeable default;

          (ix) The information set forth in the "monthly tape" provided to the
     Trustee or any of its affiliates is true and correct in all material
     respects;

          (x) With respect to each Mortgage Loan, the Assignment is in
     recordable form; (except that the name of the assignee and the recording
     information with respect to such Mortgage Loan is blank) and each Mortgage
     Loan was originated in the name of the Master Servicer or an affiliate
     thereof; and

          (xi) The Master Servicer 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 on
     a monthly basis.

          It is understood and agreed that the representations, warranties and
covenants set forth in this Section 2.05 shall survive delivery of the Mortgage
Files to the Trustee or to a Custodian, as the case may be, and shall inure to
the benefit of the Trustee, the Depositor and the Certificateholders. Upon
discovery by any of the Depositor, the NIMS Insurer, the Master Servicer or the
Trustee of a breach of any of the foregoing representations, warranties and
covenants which materially and adversely affects the value of any Mortgage Loan,
Prepayment Charge or the interests therein of the Certificateholders, the party
discovering such breach shall give prompt written notice (but in no event later
than two Business Days following such discovery) to the NIMS Insurer and the
Trustee. Subject to Section 7.01, the obligation of the Master Servicer set
forth in Section 2.03(b) to cure breaches (or in the case of the
representations, warranties and covenants set forth in Section 2.05(vii) and
Section 2.05(viii) above, to otherwise remedy such breaches pursuant to Section
2.03(b)) shall constitute the sole remedies against the Master Servicer
available to the Certificateholders, the Depositor or the Trustee on behalf of
the Certificateholders respecting a breach of the representations, warranties
and covenants contained in this Section 2.05. The preceding sentence shall not,
however, limit any remedies available to the Certificateholders, the Depositor
or the Trustee on behalf of the Certificateholders (other than in the case of
the representations, warranties and covenants set forth in Section 2.05(vii) and
Section 2.05(viii) above) pursuant to the Mortgage Loan Purchase Agreement
signed by the Master Servicer in its capacity as

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Originator, respecting a breach of the representations, warranties and covenants
of the Master Servicer in its capacity as Originator contained in such Mortgage
Loan Purchase Agreement.

          SECTION 2.06. Issuance of the REMIC I Regular Interests and the Class
                        R-I Interest.

          The Trustee acknowledges the assignment to it of the Mortgage Loans
and the delivery to it of the Mortgage Files, subject to the provisions of
Section 2.01 and Section 2.02, together with the assignment to it of all other
assets included in REMIC I, the receipt of which is hereby acknowledged.
Concurrently with such assignment and delivery and in exchange therefor, the
Trustee pursuant to the written request of the Depositor executed by an officer
of the Depositor, has executed, authenticated and delivered to or upon the order
of the Depositor, the Class R-I Interest in authorized denominations. The
interests evidenced by the Class R-I Interest, together with the REMIC I Regular
Interests, constitute the entire beneficial ownership interest in REMIC I. The
rights of the Class R-I Certificateholders and REMIC II (as holder of the REMIC
I Regular Interests) to receive distributions from the proceeds of REMIC I in
respect of the Class R-I Interest and the REMIC I Regular Interests,
respectively, and all ownership interests evidenced or constituted by the Class
R-I Interest and the REMIC I Regular Interests, shall be as set forth in this
Agreement.

          SECTION 2.07. Conveyance of the REMIC I Regular Interests; Acceptance
                        of REMIC II by the Trustee.

          The Depositor, concurrently with the execution and delivery hereof,
does hereby transfer, assign, set over and otherwise convey to the Trustee,
without recourse all the right, title and interest of the Depositor in and to
the REMIC I Regular Interests for the benefit of the Class R Certificateholders
(as holder of the Class R-I Interest and Class R-II Interest) and REMIC II (as
holder of the REMIC I Regular Interest). The Trustee acknowledges receipt of the
REMIC I Regular Interests and declares that it holds and will hold the same in
trust for the exclusive use and benefit of all present and future Class R
Certificateholders (as holder of the Class R-I Interest and Class R-II Interest)
and REMIC II (as holder of the REMIC I Regular Interests). The rights of the
Class R Certificateholders (as holder of the Class R-I Interest and Class R-II
Interest) and REMIC II (as holder of the REMIC I Regular Interest) to receive
distributions from the proceeds of REMIC II in respect of the Class R-II
Interest and REMIC II Regular Interests, respectively, and all ownership
interests evidenced or constituted by the Class R-II Interest and the REMIC I
Regular Interests, shall be as set forth in this Agreement.

          SECTION 2.08. Conveyance of the REMIC II Regular Interests; Acceptance
                        of REMIC III by the Trustee.

          The Depositor, concurrently with the execution and delivery hereof,
does hereby transfer, assign, set over and otherwise convey to the Trustee,
without recourse all the right, title and interest of the Depositor in and to
the REMIC II Regular Interests for the benefit of the Class R-
Certificateholders and REMIC III (as holder of the REMIC II Regular Interests).
The Trustee acknowledges receipt of the REMIC II Regular Interests and declares
that it holds and will hold the same in trust for the exclusive use and benefit
of all present and future Class R Certificateholders and REMIC III (as holder of
the REMIC II Regular Interests). The rights of the Class R

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Certificateholders and REMIC III (as holder of the REMIC II Regular Interests)
to receive distributions from the proceeds of REMIC III in respect of the Class
R Certificates and REMIC III Certificates, respectively, and all ownership
interests evidenced or constituted by the Class R Certificates and the REMIC III
Certificates, shall be as set forth in this Agreement.

          SECTION 2.09. Conveyance of the REMIC III Regular Interests;
                        Acceptance of REMIC IV by the Trustee.

          The Depositor, concurrently with the execution and delivery hereof,
does hereby transfer, assign, set over and otherwise convey to the Trustee,
without recourse all the right, title and interest of the Depositor in and to
the REMIC III Regular Interests for the benefit of the Class R-
Certificateholders and REMIC IV (as holder of the REMIC III Regular Interests).
The Trustee acknowledges receipt of the REMIC III Regular Interests and declares
that it holds and will hold the same in trust for the exclusive use and benefit
of all present and future Class R Certificateholders and REMIC IV (as holder of
the REMIC III Regular Interests). The rights of the Class R Certificateholders
and REMIC IV (as holder of the REMIC III Regular Interests) to receive
distributions from the proceeds of REMIC IV in respect of the Class R
Certificates and REMIC IV Certificates, respectively, and all ownership
interests evidenced or constituted by the Class R Certificates and the REMIC IV
Certificates, shall be as set forth in this Agreement.

          SECTION 2.09. Issuance of Class R Certificates.

          The Trustee acknowledges the assignment to it of the REMIC III Regular
Interests and, concurrently therewith and in exchange therefor, pursuant to the
written request of the Depositor executed by an officer of the Depositor or the
Trustee has executed, authenticated and delivered to or upon the order of the
Depositor, the Class R Certificates in authorized denominations. The interests
evidenced by the Class R Certificates, together with the REMIC IV Certificates,
constitute the entire beneficial ownership interest in REMIC IV.

          SECTION 2.10. Conveyance of the Subsequent Mortgage Loans.

          (a) Subject to the conditions set forth in paragraph (b) below, in
consideration of the Trustee's delivery on the Subsequent Transfer Dates to or
upon the order of the Depositor of all or a portion of the balance of funds in
the Pre-Funding Accounts, the Depositor shall on any Subsequent Transfer Date
sell, transfer, assign, set over and convey without recourse to the Trustee for
the benefit of the Trust Fund but subject to the other terms and provisions of
this Agreement all of the right, title and interest of the Depositor in and to
(i) the Subsequent Mortgage Loans identified on the Mortgage Loan Schedule
attached to the related Subsequent Transfer Instrument delivered by the
Depositor on such Subsequent Transfer Date, (ii) principal due and interest
accruing on the Subsequent Mortgage Loans after the related Subsequent Cut-off
Date and (iii) all items with respect to such Subsequent Mortgage Loans to be
delivered pursuant to Section 2.01 and the other items in the related Mortgage
Files; PROVIDED, HOWEVER, that the Depositor reserves and retains all right,
title and interest in and to principal due and interest accruing on the
Subsequent Mortgage Loans prior to the related Subsequent Cut-off Date. The
transfer and delivery to the Trustee for deposit in the Mortgage Pool by the
Depositor of the Subsequent Mortgage Loans identified on the Mortgage Loan
Schedule attached to the related Subsequent Transfer Agreement shall be absolute
and is intended

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by the Depositor, the Master Servicer, the Trustee and the Certificateholders to
constitute and to be treated as a sale of the Subsequent Mortgage Loans by the
Depositor to the Trust Fund. The related Mortgage File for each Subsequent
Mortgage Loan shall be delivered to the Trustee or the Custodian at least three
Business Days prior to the related Subsequent Transfer Date.

          The purchase price paid by the Trustee from amounts released from the
Group I Pre- Funding Account and the Group II Pre-Funding Account, as
applicable, shall be one-hundred percent (100%) of the aggregate Stated
Principal Balance of the Subsequent Mortgage Loans so transferred (as identified
on the Mortgage Loan Schedule provided by the Depositor). This Agreement shall
constitute a fixed-price purchase contract in accordance with Section
860G(a)(3)(A)(ii) of the Code.

          (b) The Depositor shall transfer and deliver to the Trustee for
deposit in the Trust the Subsequent Mortgage Loans and the other property and
rights related thereto as described in paragraph (a) above, and the Trustee
shall release funds from the Group I Pre-Funding Account or the Group II
Pre-Funding Account, as applicable, only upon the satisfaction of each of the
following conditions on or prior to the related Subsequent Transfer Date:

          (i) the Depositor shall have provided the Trustee and the NIMS Insurer
     with a timely Addition Notice;

          (ii) the Depositor shall have delivered to the Trustee and the NIMS
     Insurer a duly executed Subsequent Transfer Instrument, which shall include
     a Mortgage Loan Schedule listing the Subsequent Mortgage Loans, and the
     Master Servicer, in its capacity as Originator, shall have delivered a
     computer file containing such Mortgage Loan Schedule to the Trustee and
     each Rating Agency at least three Business Days prior to the related
     Subsequent Transfer Date;

          (iii) as of each Subsequent Transfer Date, as evidenced by delivery of
     the Subsequent Transfer Instrument, substantially in the form of Exhibit J,
     the Depositor shall not be insolvent nor shall it have been rendered
     insolvent by such transfer nor shall it be aware of any pending insolvency;

          (iv) such sale and transfer shall not result in a material adverse tax
     consequence to the Trust Fund or the Certificateholders;

          (v) the Funding Period shall not have terminated;

          (vi) the Depositor shall not have selected the Subsequent Mortgage
     Loans in a manner that it believed to be adverse to the interests of the
     Certificateholders;

          (vii) the Depositor shall have delivered to the Trustee and the NIMS
     Insurer a Subsequent Transfer Instrument confirming the satisfaction of the
     conditions precedent specified in this Section 2.10 and, pursuant to the
     Subsequent Transfer Instrument, assigned to the Trustee without recourse
     for the benefit of the Certificateholders all the right, title and interest
     of the Depositor, in, to and under the Subsequent Mortgage Loan Purchase
     Agreement, to the extent of the Subsequent Mortgage Loans;

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          (viii) the Depositor shall have delivered to the Trustee and the NIMS
     Insurer an Opinion of Counsel addressed to the Trustee and the Rating
     Agencies with respect to the transfer of the Subsequent Mortgage Loans
     substantially in the form of the Opinion of Counsel delivered to the
     Trustee on the Closing Date regarding the true sale of the Mortgage Loans;
     and

          (ix) the Depositor shall have delivered to the Trustee the consent of
     the NIMS Insurer to the transfer of such Subsequent Mortgage Loans.

          (c) The obligation of the Trust Fund to purchase a Subsequent Mortgage
Loan on any Subsequent Transfer Date is subject to the satisfaction of the
conditions set forth in paragraph (d) below and the accuracy of the following
representations and warranties with respect to such Subsequent Mortgage Loan
determined as of the related Subsequent Cut-off Date: (i) the Subsequent
Mortgage Loan may not be 30 or more days delinquent as of the related Subsequent
Cut-off Date; (ii) the remaining term to stated maturity of the Subsequent
Mortgage Loan will not be less than 174 months and will not exceed 360 months
from its first payment date; (iii) the Subsequent Mortgage Loan may not provide
for negative amortization; (iv) the Subsequent Mortgage Loan will not have a
Loan-to-Value Ratio greater than 95.00%; (v) the Subsequent Mortgage Loans will
have, as of the Subsequent Cut-off Date, a weighted average term since
origination not in excess of 2 months; (vi) no Subsequent Mortgage Loan shall
have a Mortgage Rate less than 5.800% or greater than 12.500%; (vii) the
Subsequent Mortgage Loan shall have been serviced by the Master Servicer since
origination or purchased by the Originator in accordance with its underwriting
guidelines; (viii) the Subsequent Mortgage Loan must have a first payment date
occurring on or before March 1, 2003 and (ix) the Subsequent Mortgage Loan shall
have been underwritten in accordance with the criteria set forth under the
section "The Mortgage Pool--Underwriting Standards; Representations" in the
Prospectus Supplement.

          (d) Following the purchase of the Subsequent Group I Mortgage Loans,
the Group I Mortgage Loans (including the related Subsequent Group I Mortgage
Loans) will, as of the related Subsequent Cut-off Date: (i) have a weighted
average original term to stated maturity of not more than 360 months from the
first payment date thereon; (ii) have a weighted average Mortgage Rate of not
less than 7.440% and not more than 7.590%; (iii) have a weighted average
Loan-to-Value Ratio of not more than 80.68%, (iv) consist of Mortgage Loans
covered by the PMI Policy representing no less than approximately 68.73% of the
Group I Mortgage Loans, (v) have no Mortgage Loan with a Principal Balance in
excess of $600,000 and (vi) consist of Mortgage Loans with Prepayment Charges
representing no less than approximately 80.71% of the Group I Mortgage Loans, in
each case, measured by aggregate Principal Balance of the Group I Mortgage Loans
as of the related Cut-off Date.

          Following the purchase of the Subsequent Group II Mortgage Loans, the
Group II Mortgage Loans (including the related Subsequent Group II Mortgage
Loans) will, as of the related Subsequent Cut-off Date: (i) have a weighted
average original term to stated maturity of not more than 360 months from the
first payment date thereon; (ii) have a weighted average Mortgage Rate of not
less than 7.730% and not more than 7.880%; (iii) have a weighted average
Loan-to-Value Ratio of not more than 82.69%; (iv) have no Mortgage Loan with a
Principal Balance in excess of $750,000 (v) consist of Mortgage Loans covered by
the PMI Policy representing no less than

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approximately 54.47% of the Group II Mortgage Loans; (vi) consist of Mortgage
Loans with Prepayment Charges representing no less than approximately 71.58% of
the Group II Mortgage Loans; and (v) have a weighted average Gross Margin of not
less than 6.24%, in each case, measured by aggregate Principal Balance of the
Group II Mortgage Loans as of the related Cut-off Date.

          (e) Notwithstanding the foregoing, any Subsequent Mortgage Loan may be
rejected by the NIMS Insurer or any Rating Agency if the inclusion of any such
Subsequent Mortgage Loan would adversely affect the ratings of any class of
Certificates. At least one Business Day prior to the related Subsequent Transfer
Date, the Depositor shall obtain confirmation from each Rating Agency which
Subsequent Mortgage Loans, if any, shall not be included in the transfer on the
related Subsequent Transfer Date and deliver such confirmation to the Trustee
and the Master Servicer; provided, however, that the Master Servicer, in its
capacity as Originator, shall have delivered to each Rating Agency at least
three Business Days prior to such Subsequent Transfer Date a computer file
reasonably acceptable to each Rating Agency describing the characteristics
specified in paragraphs (c) and (d) above.

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                                   ARTICLE III

                          ADMINISTRATION AND SERVICING
                              OF THE MORTGAGE LOANS

          SECTION 3.01. Master Servicer to Act as Master Servicer.

          The Master Servicer shall service and administer the Mortgage Loans on
behalf of the Trustee and in the best interests of and for the benefit of the
Certificateholders (as determined by the Master Servicer in its reasonable
judgment) in accordance with (i) the terms of the respective Mortgage Loans and
any insurance policies related thereto, (ii) all Applicable Regulations, (iii)
the terms of this Agreement, (iv) the Loss Mitigation Action Plan, if
applicable, and (v) to the extent consistent with the preceding requirements, in
the same manner in which it services and administers similar mortgage loans for
its own portfolio, giving due consideration to customary and usual standards of
practice of prudent mortgage lenders and loan servicers administering similar
mortgage loans but without regard to:

          (i) any relationship that the Master Servicer, any Sub-Servicer or any
     Affiliate of the Master Servicer or any Sub-Servicer may have with the
     related Mortgagor;

          (ii) the ownership of any Certificate by the Master Servicer or any
     Affiliate of the Master Servicer;

          (iii) the Master Servicer's obligation to make Advances or Servicing
     Advances; or

          (iv) the Master Servicer's or any Sub-Servicer's right to receive
     compensation for its services hereunder or with respect to any particular
     transaction (the "Servicing Standard").

          Subject only to the above-described servicing standards and the terms
of this Agreement and of the respective Mortgage Loans, the Master Servicer
shall have full power and authority, acting alone or through Sub-Servicers as
provided in Section 6.06, to do or cause to be done any and all things in
connection with such servicing and administration which it may deem necessary or
desirable. Without limiting the generality of the foregoing, the Master Servicer
in its own name or in the name of a Sub-Servicer is hereby authorized and
empowered by the Trustee, in accordance with the servicing standards set forth
above, (i) to execute and deliver, on behalf of the Certificateholders and the
Trustee, any and all instruments of satisfaction or cancellation, or of partial
or full release or discharge, or of forbearance, or of modification and all
other comparable instruments, with respect to the Mortgage Loans and the
Mortgaged Properties, (ii) to institute foreclosure proceedings or obtain a
deed-in-lieu of foreclosure to convert the ownership of such properties, and to
hold or cause to be held title to such properties, in the name of the Trust
Fund, on behalf of the Trustee and the Certificateholders, (iii) to market, sell
and transfer title of REO Properties held in the name of the Trust Fund to third
party purchasers upon terms and conditions the Master Servicer deems reasonable
under the Servicing Standard, (4) to bring or respond to civil actions or
complaints (in its own name or that of the Trust Fund or the Trustee on behalf
of the Trust Fund) related to any Mortgage Loan, Mortgaged Property or REO
Property held by the Trust Fund

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and (5) execute any other document necessary or appropriate to enable the Master
Servicer to carry out its servicing and administrative duties hereunder
consistent with the Servicing Standard.

          At the written request of the Master Servicer, the Trustee shall
execute and furnish to the Master Servicer such documents as are necessary or
appropriate to enable the Master Servicer to carry out its servicing and
administrative duties hereunder. By execution of this Agreement, the Trustee, on
behalf of the Trust Fund, hereby grants to the Master Servicer a power of
attorney to execute any and all documents necessary to carry out any and all
servicing duties described in this Agreement (including the taking of and
transferring title of REO Properties to third parties held in the name of the
Trustee for the benefit of the Trust) and expressly confirms that this paragraph
along with the face page and a copy of the signature page (duly executed) to
this Agreement shall constitute the power of attorney for evidentiary and/or
recording purposes. The Trustee shall not be liable for the actions of the
Master Servicer or any Sub-Servicers under such powers of attorney.

          Subject to Section 3.04(d) hereof, in accordance with the Servicing
Standard, the Master Servicer shall advance or cause to be advanced funds as
necessary for the purpose of effecting the timely payment of taxes and
assessments on the Mortgaged Properties, which advances shall be Servicing
Advances reimbursable in the first instance from related collections from the
Mortgagors pursuant to Section 3.04(d), and further as provided in Section
3.05(a). Any cost incurred by the Master Servicer or by Sub-Servicers in
effecting the timely payment of taxes and assessments on a Mortgaged Property
shall not, for the purpose of calculating distributions to Certificateholders,
be added to the unpaid Principal Balance of the related Mortgage Loan,
notwithstanding that the terms of such Mortgage Loan so permit.

          Consistent with the terms of this Agreement, the Master Servicer may
waive, modify or vary any term of any Mortgage Loan or consent to the
postponement of strict compliance with any such term or in any manner grant
indulgence to any Mortgagor if such waiver, modification, postponement or
indulgence is in conformity with the Servicing Standard; PROVIDED, HOWEVER,
that:

          (A) the Master Servicer, shall not make future advances (except as
     provided in Section 4.03);

          (B) the Master Servicer shall not permit any modification with respect
     to any Mortgage Loan that would change the Mortgage Rate, defer or forgive
     the payment of any principal or interest payments, reduce the outstanding
     Principal Balance (except for reductions resulting from actual payments of
     principal) or extend the final maturity date on such Mortgage Loan (unless
     as provided in Section 3.02, (i) the Mortgagor is in default with respect
     to the Mortgage Loan or (ii) such default is, in the judgment of the Master
     Servicer, reasonably foreseeable); and

          (C) the Master Servicer shall not consent to (i) partial releases of
     Mortgages, (ii) alterations, (iii) removal, demolition or division of
     properties subject to Mortgages, (iv) modification or (v) second mortgage
     subordination agreements with respect to any Mortgage Loan that would: (i)
     affect adversely the status of any Trust REMIC as a REMIC,(ii) cause any
     Trust REMIC to be subject to a tax on "prohibited transactions" or
     "contributions" pursuant to the REMIC Provisions, or (iii) both (x) effect
     an exchange or reissuance of such

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<PAGE>

     Mortgage Loan under Section 1001 of the Code (or Treasury regulations
     promulgated thereunder) and (y) cause any Trust REMIC constituting part of
     the Trust Fund to fail to qualify as a REMIC under the Code or the
     imposition of any tax on "prohibited transactions" or "contributions" after
     the Startup Day under the REMIC Provisions.

          To the extent consistent with the terms of this Agreement, including
Section 2.03 and Section 2.05, the Master Servicer may waive (or permit a
Sub-Servicer to waive) a Prepayment Charge only under the following
circumstances: (i) such waiver is standard and customary in servicing similar
Mortgage Loans and (ii) such waiver relates to a default or a reasonably
foreseeable default and would, in the reasonable judgment of the Master
Servicer, maximize recovery of total proceeds taking into account the value of
such Prepayment Charge and the related Mortgage Loan.

          The Master Servicer may delegate its responsibilities under this
Agreement; provided, however, that no such delegation shall release the Master
Servicer from the responsibilities or liabilities arising under this Agreement.
All references to Master Servicer in this Agreement shall be deemed to include
any Sub-Servicer duly appointed by the Master Servicer pursuant to this
Agreement.

          SECTION 3.02. Collection of Certain Mortgage Loan Payments.

          The Master Servicer shall make reasonable efforts to collect all
payments called for under the terms and provisions of the Mortgage Loans, and
shall, to the extent such procedures shall be consistent with this Agreement and
the terms and provisions of any applicable insurance policies, follow such
collection procedures as it would follow with respect to mortgage loans
comparable to the Mortgage Loans and held for its own account. Consistent with
the foregoing, the Master Servicer may in its discretion (i) waive any late
payment charge or, if applicable, penalty interest, or (ii) extend the due dates
for the Monthly Payments due on a Mortgage Note for a period of not greater than
180 days; provided that any extension pursuant to clause (ii) above shall not
affect the amortization schedule of any Mortgage Loan for purposes of any
computation hereunder. The NIMS Insurer's prior written consent shall be
required for any modification, waiver or amendment if the amendment if the
aggregate number of outstanding Mortgage Loans which have been modified, waived
or amended exceeds 5% of the number of Mortgage Loans as of the Cut-off Date and
any Subsequent Cut-off Date. In the event of any such arrangement pursuant to
clause (ii) above, the Master Servicer shall make timely advances on such
Mortgage Loan during such extension pursuant to Section 4.03 and in accordance
with the amortization schedule of such Mortgage Loan without modification
thereof by reason of such arrangements.

          Notwithstanding the foregoing, in the event that any Mortgage Loan is
in default or, in the judgment of the Master Servicer, such default is
reasonably foreseeable, the Master Servicer, consistent with the Servicing
Standard, may also waive, modify or vary any term of such Mortgage Loan
(including modifications that would change the Mortgage Rate, forgive the
payment of principal or interest or extend the final maturity date of such
Mortgage Loan), accept payment from the related Mortgagor of an amount less than
the Stated Principal Balance in final satisfaction of such Mortgage Loan, or
consent to the postponement of strict compliance with any such term or otherwise
grant indulgence to any Mortgagor (any and all such waivers, modifications,
variances, forgiveness of principal or interest, postponements, or indulgences
collectively referred to herein as

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"forbearance"), PROVIDED, HOWEVER, that in determining which course of action
permitted by this sentence it shall pursue, the Master Servicer shall adhere to
the Loss Mitigation Action Plan. The Master Servicer's analysis supporting any
forbearance and the conclusion that any forbearance meets the standards of
Section 3.01 and the Loss Mitigation Action Plan shall be reflected in writing
in the Mortgage File.

          In the event that a shortfall in any collection on or liability with
respect to any Mortgage Loan results from or is attributable to adjustments to
Mortgage Rates, Monthly Payments or Stated Principal Balances that were made by
the Master Servicer in a manner not consistent with the terms of the related
Mortgage Note and this Agreement, the Master Servicer, upon discovery or receipt
of notice thereof, immediately shall deliver to the Trustee for deposit in the
Distribution Account from its own funds the amount of any such shortfall and
shall indemnify and hold harmless the Trust Fund, the Trustee, the Depositor and
any successor master servicer in respect of any such liability. Such indemnities
shall survive the termination or discharge of this Agreement.

          SECTION 3.03. [Reserved].

          SECTION 3.04. Collection Account, Escrow Account and Distribution
                        Account.

          (a) COLLECTION ACCOUNT. On behalf of the Trust Fund, the Master
Servicer shall segregate and hold all funds collected and received pursuant to
each Mortgage Loan separate and apart from any of its own funds and general
assets and shall establish and maintain in the name of the Trustee one or more
accounts (such account or accounts, the "Collection Account") in accordance with
this Section 3.04, held in trust for the benefit of the Trustee and the
Certificateholders.

          (b) DEPOSITS TO THE COLLECTION ACCOUNT. On behalf of the Trust Fund,
the Master Servicer shall deposit or cause to be deposited in the clearing
account (which account must be an Eligible Account) in which it customarily
deposits payments and collections on mortgage loans in connection with its
mortgage loan servicing activities on a daily basis, and in no event more than
one Business Day after the Master Servicer's receipt thereof, and shall
thereafter deposit in the Collection Account, in no event more than two Business
Days after the deposit of such funds into the clearing account, as and when
received or as otherwise required hereunder, and retain therein, the following
payments and collections received or made by it subsequent to the Cut-off Date
with respect to the Initial Mortgage Loans, or the related Subsequent Cut-off
Date with respect to the Subsequent Mortgage Loans, or payments (other than
Principal Prepayments) received by it on or prior to the Cut-off Date but
allocable to a Due Period subsequent thereto:

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

          (ii) all payments on account of interest on the Mortgage Loans and REO
     Properties adjusted to the Net Mortgage Rate;

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          (iii) all Insurance Proceeds and Liquidation Proceeds (other than
     proceeds to be held in the Escrow Account and applied to the restoration or
     repair of the Mortgaged Property or released to the Mortgagor in accordance
     with the Servicing Standard) and any amounts received in respect of the
     rental of any REO Property prior to REO Disposition;

          (iv) all proceeds related to the purchase, substitution or repurchase
     of any Mortgage Loan or REO Property in accordance with Section 2.03;

          (v) any amounts required to be deposited by the Master Servicer
     pursuant to Section 3.09 in connection with the deductible clause in any
     blanket hazard insurance policy, such deposit being made from the Master
     Servicer's own funds, without reimbursement therefor;

          (vi) any amounts required to be deposited by the Master Servicer
     pursuant to Section 3.06 in connection with any losses realized on
     Permitted Investments with respect to funds held in the Collection Account;

          (vii) all amounts required to be deposited in connection with
     shortfalls in principal amount of Qualified Substitute Mortgage Loans
     pursuant to Section 2.03 (for purposes of this clause (vii), the Cut-off
     Date with respect to any Qualified Substitute Mortgage Loan shall be deemed
     to be the date of substitution);

          (viii) all Prepayment Charges collected by the Master Servicer, all
     Prepayment Charges payable by the Master Servicer pursuant to Section
     2.03(b)(ii)(A) and all Master Servicer Prepayment Charge Payment Amounts
     payable by the Master Servicer pursuant to Section 2.03(b)(ii)(B) as
     limited by Section 2.03(b)(iii); and

          (ix) without duplication, all payments of claims under the PMI Policy.

          The foregoing requirements for deposit to the Collection Account shall
be exclusive, it being understood and agreed that, without limiting the
generality of the foregoing, payments in the nature of late payment charges,
assumption fees, insufficient funds charges, modification fees and other
ancillary fees (but not Prepayment Charges) need not be deposited by the Master
Servicer in the Collection Account and shall upon collection, belong to the
Master Servicer as additional compensation for its servicing activities. In the
event the Master Servicer shall deposit in the Collection Account any amount not
required to be deposited therein, it may at any time withdraw such amount from
the Collection Account, any provision herein to the contrary notwithstanding.

          (c) ESCROW ACCOUNT. The Master Servicer shall segregate and hold all
funds collected and received pursuant to each Mortgage Loan which constitute
Escrow Payments separate and apart from any of its own funds and general assets
and shall establish and maintain in the name of the Trustee one or more accounts
(such account or accounts, the "Escrow Account") held in trust for the benefit
of the Certificateholders and the Trustee.

          (d) DEPOSITS TO THE ESCROW ACCOUNT. The Master Servicer shall deposit
or cause to be deposited in the clearing account (which account must be an
Eligible Account) in which it

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customarily deposits payments and collections on mortgage loans in connection
with its mortgage loan servicing activities on a daily basis, and in no event
more than one Business Day after the Master Servicer's receipt thereof, and
shall thereafter deposit in the Escrow Account, in no event more than two
Business Days after the deposit of such funds into the clearing account, as and
when received or as otherwise required hereunder, and retain therein:

          (i) all Escrow Payments collected on account of the Mortgage Loans,
     for the purpose of effecting timely payment of any such items as required
     under the terms of this Agreement; and

          (ii) all Insurance Proceeds which are to be applied to the restoration
     or repair of any Mortgaged Property.

          (e) DISTRIBUTION ACCOUNT. On behalf of the Trust Fund, the Trustee
shall segregate and hold all funds collected and received pursuant to this
Agreement separate and apart from any of its own funds and general assets and
shall establish and maintain in the name of the Trust Fund one or more
segregated accounts (such account or accounts, the "Distribution Account"), held
in trust for the benefit of the Certificateholders.

          (f) TRUSTEE DEPOSITS TO THE DISTRIBUTION ACCOUNT. Upon receipt, the
Trustee shall deposit or cause to be deposited into the Distribution Account all
payments of any nature received from the Master Servicer in accordance with this
Agreement. The Trustee shall deposit in the Distribution Account any amounts
required to be deposited pursuant to Section 3.06 in connection with losses
realized on Permitted Investments with respect to funds held in the Distribution
Account. Furthermore, promptly upon receipt of any Stayed Funds, whether from
the Master Servicer, a trustee in bankruptcy, or federal bankruptcy court or
other source, the Trustee shall deposit such funds in the Distribution Account,
subject to withdrawal thereof pursuant to Section 7.02(b) or as otherwise
permitted hereunder.

          (g) MASTER SERVICER TRANSFER OF FUNDS TO THE DISTRIBUTION ACCOUNT. On
behalf of the Trust Fund, the Master Servicer shall deliver to the Trustee in
immediately available funds for deposit in the Distribution Account by 3:00 p.m.
(New York time) on the Master Servicer Remittance Date, (i) that portion of
Available Funds (calculated without regard to the references in clause (2) of
the definition thereof to amounts that may be withdrawn from the Distribution
Account) for the related Distribution Date then on deposit in the Collection
Account, (ii) without duplication, the amount of all Prepayment Charges
collected by the Master Servicer, all Prepayment Charges payable by the Master
Servicer pursuant to Section 2.03(b)(ii)(A) and all Master Servicer Prepayment
Charge Payment Amounts payable by the Master Servicer pursuant to Section
2.03(b)(ii)(B), subject to Section 2.03(b)(iii) (in each case to the extent not
related to Principal Prepayments occurring after the related Prepayment Period)
and (iii) any amounts reimbursable to an Advancing Person pursuant to Section
3.23.

          In addition, the Master Servicer shall deliver to the Trustee from
time to time as required by this Agreement, for deposit and the Trustee shall so
deposit, in the Distribution Account:

          (i) any Advances, as required pursuant to Section 4.03;

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          (ii) any amounts required to be deposited pursuant to Section 3.13 in
     connection with any REO Property;

          (iii) any amounts to be paid in connection with a purchase of Mortgage
     Loans and REO Properties pursuant to Section 3.16 and Section 9.01;

          (iv) any Compensating Interest as required pursuant to Section
     4.03(e);

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

          (vi) any amounts required to be paid by the Master Servicer pursuant
     to Section 3.06 in connection with any losses realized on Permitted
     Investments with respect to funds held in the Collection Account; and

          (v) any amounts required to be paid to the Trustee from the assets of
     the Trust Fund on deposit in the Collection Account pursuant to this
     Agreement, including but not limited to amounts required to be paid to the
     Trustee pursuant to Section 7.02 and Section 8.05.

          Funds held in the Collection Account pursuant to Section 3.04(b) may
at any time be delivered by the Master Servicer to the Trustee for deposit into
the Distribution Account and for all purposes of this Agreement shall be deemed
to be a part of the Collection Account until the Business Day prior to the
Distribution Date; provided, however, that the Trustee shall have the sole
authority to withdraw any funds held pursuant to this paragraph. In the event
the Master Servicer shall deliver to the Trustee for deposit in the Distribution
Account any amount not required to be deposited therein, it may at any time
request that the Trustee withdraw such amount from the Distribution Account and
remit to it any such amount, any provision herein to the contrary
notwithstanding.

          (h) INVESTMENT OF ACCOUNT FUNDS. Funds in on deposit in the Collection
Account, the Distribution Account, any REO Account and any Escrow Account may be
invested in Permitted Investments in accordance with the provisions set forth in
Section 3.06. Any investment earnings or interest paid on funds deposited in the
Collection Account, any REO Account and any Escrow Account (subject to Section
3.05(b)) shall accrue to the benefit of the Master Servicer and the Master
Servicer shall be entitled to retain and withdraw such interest from each such
account on a daily basis. Any investment earnings or interest paid on funds
deposited in the Distribution Account, shall accrue to the benefit of the
Trustee and the Trustee shall be entitled to retain and withdraw such interest
from each such account on a daily basis.

          Funds on deposit in the Pre-Funding Accounts, the Interest Coverage
Accounts and the Net WAC Rate Reserve Carryover Account may be invested in
Permitted Investments in accordance with Section 3.06 subject to any limitations
set forth in Section 4.07 (with respect to the Pre-Funding Accounts), Section
4.08 (with respect to the Interest Coverage Accounts) and Section 4.09 (with
respect to the Net WAC Rate Carryover Reserve Account) and any investment
earnings or interest paid shall accrue to the benefit of the party designated in
such section.

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          (i) CREATION, LOCATION AND SUBSEQUENT TRANSFERS OF ACCOUNTS. Each
account created pursuant to this Agreement must be an Eligible Account. On or
prior to the Closing Date, the Master Servicer and the Trustee shall give notice
in the form of Exhibit K, to each other, the NIMS Insurer and the Depositor of
the location of the any account created by it pursuant to this Agreement. From
time to time, the Master Servicer and the Trustee may each transfer any account
created by it to a different depository institution provided that upon such
transfer the written notice is provided to all other parties listed in the
preceding sentence.

          SECTION 3.05. Permitted Withdrawals From the Collection Account,
                        Escrow Account and Distribution Account.

          (a) COLLECTION ACCOUNT. The Master Servicer may, from time to time,
withdraw from the Collection Account for the following purposes or as described
in Section 4.03:

          (i) to remit to the Trustee for deposit in the Distribution Account
     the amounts required to be so remitted pursuant to Section 3.04(g) or
     permitted to be so remitted pursuant to the last paragraph of Section
     3.04(g);

          (ii) subject to Section 3.12(c), to reimburse itself for (a) any
     unpaid Servicing Fees, (b) any unreimbursed Servicing Advances and (c) any
     unreimbursed Advances, the Master Servicer's right to reimburse itself
     pursuant to this subclause (ii) being limited to any Late Collections,
     Liquidation Proceeds, and Insurance Proceeds received on the related
     Mortgage Loan and any amounts received in respect of the rental of the
     related REO Property prior to an REO Disposition that represent payments of
     principal and/or interest respecting which any such advance was made;

          (iii) to reimburse itself for (a) any unpaid Servicing Fees to the
     extent not recoverable under Section 3.05(a)(ii) and (b) any unpaid
     Advances or Servicing Advances that have been deemed Nonrecoverable
     Advances or Nonrecoverable Servicing Advances;

          (iv) to pay to itself any Prepayment Interest Excess;

          (v) to reimburse itself for any amounts paid pursuant to Section
     3.12(b) (and not otherwise previously reimbursed);

          (vi) to pay to itself as servicing compensation any interest earned on
     funds in the Collection Account;

          (vii) subject to Section 4.03(b), to reimburse the Master Servicer in
     respect of any unreimbursed Advances to the extent of funds held in the
     Collection Account for future distribution that were not included in
     Available Funds for the preceding Distribution Date;

          (viii) to reimburse the Master Servicer or the Depositor for expenses
     incurred by or reimbursable to the Master Servicer or the Depositor, as the
     case may be, pursuant to Section 6.03;

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          (ix) to remit to the Trustee any amounts that the Trustee is permitted
     to be paid or reimbursed from the assets of the Trust Fund pursuant to the
     terms of this Agreement, including the terms of Section 7.02(a) and Section
     8.05 of this Agreement;

          (x) to reimburse the NIMS Insurer, the Master Servicer (if the Master
     Servicer is not an Affiliate of the Seller) or the Trustee, as the case may
     be, for enforcement expenses reasonably incurred in respect of the breach
     or defect giving rise to the purchase obligation under Section 2.03 of this
     Agreement that were included in the Purchase Price of the Mortgage Loan,
     including any expenses arising out of the enforcement of the purchase
     obligation;

          (xi) to pay to the Master Servicer, the Depositor or the Originator,
     as the case may be, with respect to each Mortgage Loan that has previously
     been purchased or replaced pursuant to Section 2.03 or Section 3.16(a) all
     amounts received thereon subsequent to the date of purchase or
     substitution, as the case may be;

          (xi) to transfer funds in the Collection Account maintained at a
     particular depository to the Collection Account maintained at a different
     depository, pursuant to Section 3.04(i);

          (xii) to pay the PMI Insurer the PMI Insurer Fee; and

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

          On each Business Day as of the commencement of which the balance on
deposit in the Collection Account exceeds $75,000 following any withdrawals
pursuant to the next succeeding sentence, the amount of such excess shall be
remitted to the Trustee, but only if the Collection Account constitutes an
Eligible Account solely pursuant to clause (ii) of the definition of "Eligible
Account." If the balance on deposit in the Collection Account exceeds $75,000 as
of the commencement of business on any Business Day and the Collection Account
constitutes an Eligible Account solely pursuant to clause (ii) of the definition
of "Eligible Account," the Master Servicer shall, on or before 3:00 p.m. New
York time on such Business Day, withdraw from the Collection Account any and all
amounts payable or reimbursable to the Depositor, the Master Servicer, the
Trustee or any Sub-Servicer pursuant to Section 3.05 and shall pay such amounts
to the Persons entitled thereto.

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

          The Master Servicer shall keep and maintain separate accounting, on a
Mortgage Loan by Mortgage Loan basis, for the purpose of justifying any
withdrawal from the Collection Account, to the extent held by or on behalf of
it, pursuant to subclauses (ii), (iii), (iv), (v), (vi), (vii), (viii) and (xi)
above. The Master Servicer shall provide written notification to the Trustee and
the

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NIMS Insurer on or prior to the next succeeding Master Servicer Reporting Date,
upon making any withdrawals from the Collection Account pursuant to subclause
(viii) above.

          (b) ESCROW ACCOUNT. The Master Servicer may, from time to time,
withdraw from the Escrow Account for the following purposes:

          (i) to effect payments of ground rents, taxes, assessments, water
     rates, hazard insurance premiums and comparable items;

          (ii) to reimburse the Master Servicer for any Servicing Advance made
     by the Master Servicer with respect to a related Mortgage Loan but only
     from amounts received on the related Mortgage Loan which represent late
     payments or Late Collections of Escrow Payments thereunder;

          (iii) to refund to the Mortgagor any funds as may be determined to be
     overages;

          (iv) for transfer to the Collection Account in accordance with the
     terms of this Agreement;

          (v) for application to restoration or repair of the Mortgaged
     Property;

          (vi) to pay to the Master Servicer, or to the Mortgagor to the extent
     required by the related Mortgage Loan or Applicable Regulations, any
     interest paid on the funds deposited in the Escrow Account;

          (vii) to clear and terminate the Escrow Account on the termination of
     this Agreement; and

          (viii) to transfer to the Collection Account any Insurance Proceeds.

          In the event the Master Servicer shall deposit in an Escrow Account
any amount not required to be deposited therein, it may at any time withdraw
such amount from such Escrow Account, any provision herein to the contrary
notwithstanding. As part of its servicing duties, the Master Servicer shall pay
to the Mortgagor interest on funds in the Escrow Account, to the extent required
by the related Mortgage Loan or Applicable Regulations, and to the extent that
interest earned on funds in the Escrow Account is insufficient, shall pay such
interest from its own funds, without any reimbursement therefor. The Master
Servicer may pay to itself any excess interest on funds in the Escrow Account,
to the extent such action is in conformity with the Servicing Standard, is
permitted by law and such amounts are not required to be paid to Mortgagors or
used for any of the other purposes set forth above.

          (c) DISTRIBUTION ACCOUNT. The Trustee shall, from time to time, make
withdrawals from the Distribution Account, for any of the following purposes:

          (i) to make distributions to Certificateholders in accordance with
     Section 4.01;

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          (ii) to pay to itself and the Trustee amounts to which it is entitled
     pursuant to Section 8.05;

          (iii) to pay itself any interest income earned on funds deposited in
     the Distribution Account pursuant to Section 3.06;

          (iv) to reimburse itself pursuant to Section 7.01 and Section 7.02(b);

          (v) to pay any amounts in respect of taxes pursuant to Section
     10.01(g)(iii); and

          (vi) to clear and terminate the Distribution Account pursuant to
     Section 9.01.

          SECTION 3.06. Investment of Funds in the Collection Account, the
                        Escrow Account, the REO Account and the Distribution
                        Account.

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

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

          (ii) demand payment of all amounts due thereunder promptly upon
     determination by a Responsible Officer of the Trustee that such Permitted
     Investment would not constitute a Permitted Investment in respect of funds
     thereafter on deposit in the Investment Account.

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          (b) All income in the nature of interest from the investment of funds
in the Collection Account, the Escrow Account (subject to Section 3.05(b)) and
the REO Account shall be for the benefit of the Master Servicer as compensation
for the Master Servicer's services pursuant to this Agreement. The Master
Servicer shall deposit in the Collection Account, the Escrow Account, and the
REO Account from its own funds the amount of any loss incurred in respect of any
such Permitted Investment made with funds in such account immediately upon
realization of such loss.

          (c) All income in the nature of interest or earnings from the
investment of funds in the Distribution Account shall be for the benefit of the
Trustee as compensation for the Trustee's services pursuant to this Agreement.
The Trustee shall deposit in the Distribution Account from its own funds the
amount of any loss incurred on Permitted Investments in the Distribution
Account.

          (d) Funds on deposit in the Pre-Funding Accounts, the Interest
Coverage Accounts and the Net WAC Rate Carryover Reserve Account may be invested
in Permitted Investments in accordance with this Section 3.06 subject to any
limitations set forth in Section 4.07 (with respect to the Pre-Funding
Accounts), Section 4.08 (with respect to the Interest Coverage Accounts) and
Section 4.09 (with respect to the Net WAC Rate Carryover Reserve Account) and
any investment earnings or interest paid shall accrue to the benefit of the
party designated in such section and the party so designated shall deposit in
the related account from its own funds the amount of any loss incurred on
Permitted Investments in such account.

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

          SECTION 3.07. Payment of Taxes, Insurance and Other Charges.

          With respect to each Mortgage Loan, the Master Servicer shall maintain
accurate records reflecting the status of ground rents, taxes, assessments,
water rates and other charges which are or may become a lien upon the Mortgaged
Property and the status of fire and hazard insurance coverage and, as to those
Mortgage Loans subject to a voluntary escrow agreement, shall obtain, from time
to time, all bills for the payment of such charges (including renewal premiums)
and shall effect payment thereof prior to the applicable penalty or termination
date and at a time appropriate for securing maximum discounts allowable,
employing for such purpose deposits of the Mortgagor in the Escrow Account which
shall have been estimated and accumulated by the Master Servicer in amounts
sufficient for such purposes, as allowed under the terms of the Mortgage or
Applicable Regulations. The Master Servicer assumes full responsibility for the
timely payment of all such bills and shall effect timely payments of all such
bills irrespective of the Mortgagor's faithful performance in the payment of
same or the making of the Escrow Payments and shall make Servicing Advances from
its own funds to effect such payments. To the extent that the Mortgage does not
provide for Escrow Payments, the Master Servicer shall use reasonable efforts
consistent with the Servicing

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Standard to determine that any such payments are made by the Mortgagor at the
time they first become due and shall ensure that the Mortgaged Property is not
lost to a tax lien as a result of nonpayment and that such Mortgaged Property is
not left uninsured.

          SECTION 3.08. Maintenance of Hazard Insurance.

          The Master Servicer shall cause to be maintained for each Mortgage
Loan fire insurance with extended coverage on the related Mortgaged Property in
an amount which is at least equal to the least of (i) the current Principal
Balance of such Mortgage Loan, (ii) the amount necessary to fully compensate for
any damage or loss to the improvements that are a part of such property on a
replacement cost basis and (iii) the maximum insurable value of the improvements
which are a part of such Mortgaged Property, in each case in an amount not less
than such amount as is necessary to avoid the application of any coinsurance
clause contained in the related hazard insurance policy. The Master Servicer
shall also cause to be maintained fire insurance with extended coverage on each
REO Property in an amount which is at least equal to the lesser of (i) the
maximum insurable value of the improvements which are a part of such property
and (ii) the outstanding Principal Balance of the related Mortgage Loan, plus
accrued interest at the Mortgage Rate and related Servicing Advances (each
measured at the time it became an REO Property). The Master Servicer will comply
in the performance of this Agreement with all reasonable rules and requirements
of each insurer under any such hazard policies. Any amounts to be collected by
the Master Servicer under any such policies (other than amounts to be applied to
the restoration or repair of the property subject to the related Mortgage or
amounts to be released to the Mortgagor in accordance with the procedures that
the Master Servicer would follow in servicing loans held for its own account,
subject to the terms and conditions of the related Mortgage and Mortgage Note)
shall be deposited in the Collection Account, subject to withdrawal pursuant to
Section 3.05, if received in respect of a Mortgage Loan, or in the REO Account,
subject to withdrawal pursuant to Section 3.13, if received in respect of an REO
Property. Any cost incurred by the Master Servicer in maintaining any such
insurance shall not, for the purpose of calculating distributions to
Certificateholders, be added to the unpaid Principal Balance of the related
Mortgage Loan, notwithstanding that the terms of such Mortgage Loan so permit.
It is understood and agreed that no earthquake or other additional insurance is
to be required of any Mortgagor other than pursuant to such applicable laws and
regulations as shall at any time be in force and as shall require such
additional insurance. If the Mortgaged Property or REO Property is at any time
in an area identified in the Federal Register by the Federal Emergency
Management Agency as having special flood hazards, the Master Servicer will
cause to be maintained a flood insurance policy in respect thereof. Such flood
insurance shall be in an amount equal to the lesser of (i) the unpaid Principal
Balance of the related Mortgage Loan; (ii) the maximum amount of such insurance
available for the related Mortgaged Property under the national flood insurance
program (assuming that the area in which such Mortgaged Property is located is
participating in such program) and (iii) the maximum insurable value of the
improvements which are part of the related Mortgaged Property.

          SECTION 3.09. Maintenance of Mortgage Blanket Insurance.

          In the event that the Master Servicer shall obtain and maintain a
blanket policy with an insurer having a General Policy Rating of A:V or better
in Best's Key Rating Guide (or such other rating that is comparable to such
rating) insuring against hazard losses on all of the Mortgage Loans,

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it shall conclusively be deemed to have satisfied its obligations as set forth
in the first two sentences of Section 3.08, it being understood and agreed that
such policy may contain a deductible clause, in which case the Master Servicer
shall, in the event that there shall not have been maintained on the related
Mortgaged Property or REO Property a policy complying with the first two
sentences of Section 3.08, and there shall have been one or more losses which
would have been covered by such policy, deposit to the Collection Account from
its own funds the amount not otherwise payable under the blanket policy because
of such deductible clause. In connection with its activities as administrator
and servicer of the Mortgage Loans, the Master Servicer agrees to prepare and
present, on behalf of itself, the Trustee and Certificateholders, claims under
any such blanket policy in a timely fashion in accordance with the terms of such
policy.

          SECTION 3.10. Fidelity Bond; Errors and Omissions Insurance.

          The Master Servicer shall keep in force during the term of this
Agreement a policy or policies of insurance covering errors and omissions for
failure in the performance of the Master Servicer's obligations under this
Agreement, which policy or policies shall be in such form and amount that would
meet the requirements of Fannie Mae or Freddie Mac if it were the purchaser of
the Mortgage Loans, unless the Master Servicer has obtained a waiver of such
requirements from Fannie Mae or Freddie Mac. The Master Servicer shall also
maintain a fidelity bond in the form and amount that would meet the requirements
of Fannie Mae or Freddie Mac, unless the Master Servicer has obtained a waiver
of such requirements from Fannie Mae or Freddie Mac. The Master Servicer shall
provide the Trustee and the NIMS Insurer (upon reasonable request) with copies
of any such insurance policies and fidelity bond. The Master Servicer shall be
deemed to have complied with this provision if an Affiliate of the Master
Servicer has such errors and omissions and fidelity bond coverage and, by the
terms of such insurance policy or fidelity bond, the coverage afforded
thereunder extends to the Master Servicer. Any such errors and omissions policy
and fidelity bond shall by its terms not be cancelable without thirty days'
prior written notice to the Trustee. The Master Servicer shall also cause each
Sub-Servicer to maintain a policy of insurance covering errors and omissions and
a fidelity bond which would meet such requirements.

          SECTION 3.11. Enforcement of Due-On-Sale Clauses; Assumption
                        Agreements.

          The Master Servicer will, to the extent it has knowledge of any
conveyance or prospective conveyance of any Mortgaged Property by any Mortgagor
(whether by absolute conveyance or by contract of sale, and whether or not the
Mortgagor remains or is to remain liable under the Mortgage Note and/or the
Mortgage), exercise its rights to accelerate the maturity of such Mortgage Loan
under the "due-on-sale" clause, if any, applicable thereto; provided, however,
that the Master Servicer shall not exercise any such rights if prohibited by law
from doing so. If the Master Servicer reasonably believes it is unable under
applicable law to enforce such "due-on-sale" clause, or if any of the other
conditions set forth in the proviso to the preceding sentence apply, the Master
Servicer is authorized to enter into an assumption and modification agreement
from or with the person to whom such property has been conveyed or is proposed
to be conveyed, pursuant to which such person becomes liable under the Mortgage
Note and, to the extent permitted by applicable state law, the Mortgagor remains
liable thereon. The Master Servicer is also authorized to enter into a
substitution of liability agreement with such person, pursuant to which the
original

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Mortgagor is released from liability and such person is substituted as the
Mortgagor and becomes liable under the Mortgage Note, provided that no such
substitution shall be effective unless such person satisfies the underwriting
criteria of the Master Servicer. In connection with any assumption or
substitution, the Master Servicer shall apply such underwriting standards and
follow such practices and procedures as shall be normal and usual in its general
mortgage servicing activities and as it applies to other mortgage loans owned
solely by it. The Master Servicer shall not take or enter into any assumption
and modification agreement, however, unless (to the extent practicable in the
circumstances) it shall have received confirmation, in writing, of the continued
effectiveness of any applicable hazard insurance policy, or a new policy meeting
the requirements of this Section is obtained. Any fee collected by the Master
Servicer in respect of an assumption or substitution of liability agreement will
be retained by the Master Servicer as additional servicing compensation. In
connection with any such assumption, no material term of the Mortgage Note
(including but not limited to the related Mortgage Rate and the amount of the
Monthly Payment) may be amended or modified, except as otherwise required
pursuant to the terms thereof or otherwise permitted under Section 3.01. The
Master Servicer shall notify the Trustee and any respective Custodian that any
such substitution or assumption agreement has been completed by forwarding to
the Trustee or to such Custodian, as the case may be, the executed original of
such substitution or assumption agreement, which document shall be added to the
related Mortgage File and shall, for all purposes, be considered a part of such
Mortgage File to the same extent as all other documents and instruments
constituting a part thereof.

          Notwithstanding the foregoing paragraph or any other provision of this
Agreement, the Master Servicer shall not be deemed to be in default, breach or
any other violation of its obligations hereunder by reason of any assumption of
a Mortgage Loan by operation of law or by the terms of the Mortgage Note or any
assumption which the Master Servicer may be restricted by law from preventing,
for any reason whatever. For purposes of this Section 3.11, the term
"assumption" is deemed to also include a sale (of the Mortgaged Property)
subject to the Mortgage that is not accompanied by an assumption or substitution
of liability agreement.

          SECTION 3.12. Realization Upon Defaulted Mortgage Loans.

          (a) The Master Servicer shall, consistent with the Servicing Standard
and the Loss Mitigation Action Plan, foreclose upon or otherwise comparably
convert the ownership of properties securing such of the Mortgage Loans as come
into and continue in default and as to which no satisfactory arrangements can be
made for collection of delinquent payments pursuant to Section 3.02. The Master
Servicer shall be responsible for all costs and expenses incurred by it in any
such proceedings; provided, however, that such costs and expenses will be
recoverable as Servicing Advances by the Master Servicer as contemplated in
Section 3.05 and Section 3.13. The foregoing is subject to the provision that,
in any case in which Mortgaged Property shall have suffered damage from an
Uninsured Cause, the Master Servicer shall not be required to expend its own
funds toward the restoration of such property unless it shall determine in its
discretion that such restoration will increase the proceeds of liquidation of
the related Mortgage Loan after reimbursement to itself for such expenses.

          (b) Notwithstanding the foregoing provisions of this Section 3.12 or
any other provision of this Agreement, with respect to any Mortgage Loan as to
which the Master Servicer has

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received actual notice of, or has actual knowledge of, the presence of any toxic
or hazardous substance on the related Mortgaged Property, the Master Servicer
shall not, on behalf of the Trustee, either (i) obtain title to such Mortgaged
Property as a result of or in lieu of foreclosure or otherwise or (ii) otherwise
acquire possession of, or take any other action with respect to, such Mortgaged
Property, if, as a result of any such action, the Trustee, the Trust Fund or the
Certificateholders would be considered to hold title to, to be a
"mortgagee-in-possession" of, or to be an "owner" or "operator" of such
Mortgaged Property within the meaning of the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended from time to time,
or any comparable law, unless the Master Servicer has also previously
determined, based on its reasonable judgment and a report prepared by a Person
who regularly conducts environmental audits using customary industry standards,
that:

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

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

          Notwithstanding the foregoing, if such environmental audit reveals, or
if the Master Servicer has actual knowledge or notice, that such Mortgaged
Property contains such toxic or hazardous wastes or substances, the Master
Servicer shall not foreclose or accept a deed in lieu of foreclosure without the
prior written consent of the NIMS Insurer.

          The cost of the environmental audit report contemplated by this
Section 3.12 shall be advanced by the Master Servicer, subject to the Master
Servicer's right to be reimbursed therefor from the Collection Account as
provided in Section 3.05(a)(v), such right of reimbursement being prior to the
rights of Certificateholders to receive any amount in the Collection Account
received in respect of the affected Mortgage Loan or other Mortgage Loans.

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

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          (c) Proceeds received in connection with any Final Recovery
Determination, as well as any recovery resulting from a partial collection of
Insurance Proceeds or Liquidation Proceeds, in respect of any Mortgage Loan,
will be applied in the following order of priority: FIRST, to reimburse the
Master Servicer or any Sub-Servicer for any related unreimbursed Servicing
Advances and Advances, pursuant to Section 3.05(a)(ii); SECOND, to accrued and
unpaid interest on the Mortgage Loan, to the date of the Final Recovery
Determination, or to the Due Date prior to the Distribution Date on which such
amounts are to be distributed if not in connection with a Final Recovery
Determination; and THIRD, as a recovery of principal of the Mortgage Loan. If
the amount of the recovery so allocated to interest is less than the full amount
of accrued and unpaid interest due on such Mortgage Loan, the amount of such
recovery will be allocated by the Master Servicer as follows: FIRST, to unpaid
Servicing Fees; and SECOND, to the balance of the interest then due and owing.
The portion of the recovery so allocated to unpaid Servicing Fees shall be
reimbursed to the Master Servicer or any Sub-Servicer pursuant to Section
3.05(a)(ii).

          SECTION 3.13. Title, Management and Disposition of REO Property.

          (a) The deed or certificate of sale of any REO Property shall be taken
in the name of the Trustee, or its nominee, in trust for the benefit of the
Certificateholders. Pursuant to the power of attorney granted in Section 3.01,
the Master Servicer is hereby authorized to transfer the title of any REO
Property taken in the name of the Trustee to a third party purchaser pursuant to
this Section 3.13 without further documentation of its authority as
attorney-in-fact for the Trustee on behalf of the Trust. The Master Servicer, on
behalf of REMIC I (and on behalf of the Trustee for the benefit of the
Certificateholders), shall either sell any REO Property before the close of the
third taxable year after the year REMIC I acquires ownership of such REO
Property for purposes of Section 860G(a)(8) of the Code or request from the
Internal Revenue Service, no later than 60 days before the day on which the
three-year grace period would otherwise expire, an extension of the three-year
grace period, unless the Master Servicer shall have delivered to the Trustee,
the NIMS Insurer and the Depositor an Opinion of Counsel, addressed to the
Trustee, the NIMS Insurer and the Depositor, to the effect that the holding by
REMIC I of such REO Property subsequent to three years after its acquisition
will not result in the imposition on any Trust REMIC of taxes on "prohibited
transactions" thereof, as defined in Section 860F of the Code, or cause any
Trust REMIC to fail to qualify as a REMIC under Federal law at any time that any
Certificates are outstanding. The Master Servicer shall manage, conserve,
protect and operate each REO Property for the benefit of the Certificateholders
and solely for the purpose of its prompt disposition and sale in a manner which
does not cause such REO Property to fail to qualify as "foreclosure property"
within the meaning of Section 860G(a)(8) of the Code or result in the receipt by
any Trust REMIC of any "income from non-permitted assets" within the meaning of
Section 860F(a)(2)(B) of the Code, or any "net income from foreclosure property"
which is subject to taxation under the REMIC Provisions.

          (b) The Master Servicer shall segregate and hold all funds collected
and received in connection with the operation of any REO Property separate and
apart from its own funds and general assets and shall establish and maintain
with respect to REO Properties an account held in trust for the Trustee for the
benefit of the Certificateholders (the "REO Account"), which shall be an
Eligible Account. The Master Servicer shall be permitted to allow the Collection
Account to serve as the REO Account, subject to separate ledgers for each REO
Property. The Master Servicer

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shall be entitled to retain or withdraw any interest income paid on funds
deposited in the REO Account.

          (c) The Master Servicer shall have full power and authority, subject
only to the specific requirements and prohibitions of this Agreement (including
the Loss Mitigation Action Plan), to do any and all things in connection with
any REO Property as are consistent with the manner in which the Master Servicer
manages and operates similar property owned by the Master Servicer or any of its
Affiliates, all on such terms and for such period as the Master Servicer deems
to be in the best interests of Certificateholders and appropriate to effect the
prompt disposition and sale of the REO Property. In connection therewith, the
Master Servicer shall deposit, or cause to be deposited in the clearing account
(which account must be an Eligible Account) in which it customarily deposits
payments and collections on mortgage loans in connection with its mortgage loan
servicing activities on a daily basis, and in no event more than one Business
Day after the Master Servicer's receipt thereof, and shall thereafter deposit in
the REO Account, in no event more than two Business Days after the deposit of
such funds into the clearing account, all revenues received by it with respect
to an REO Property and shall withdraw therefrom funds necessary for the proper
operation, management and maintenance of such REO Property including, without
limitation:

          (i) all insurance premiums due and payable in respect of such REO
     Property;

          (ii) all real estate taxes and assessments in respect of such REO
     Property that may result in the imposition of a lien thereon; and

          (iii) all costs and expenses necessary to maintain such REO Property.

          To the extent that amounts on deposit in the REO Account with respect
to an REO Property are insufficient for the purposes set forth in clauses (i)
through (iii) above with respect to such REO Property, the Master Servicer shall
advance from its own funds such amount as is necessary for such purposes if, but
only if, the Master Servicer would make such advances if the Master Servicer
owned the REO Property and if in the Master Servicer's judgment, the payment of
such amounts will be recoverable from the rental or sale of the REO Property.

          Notwithstanding the Master Servicer's obligation to the
Certificateholders to manage and operate (including the collection of rents from
existing tenants and management of any leases acquired with the REO property to
the extent applicable) the REO Property from the date of acquisition until the
date of sale, none of the Master Servicer or the Trustee shall knowingly:

          (i) authorize the Trust Fund to enter into, renew or extend any New
     Lease with respect to any REO Property, if the New Lease by its terms will
     give rise to any income that does not constitute Rents from Real Property;

          (ii) authorize any amount to be received or accrued under any New
     Lease other than amounts that will constitute Rents from Real Property;

          (iii) authorize any construction on any REO Property, other than the
     completion of a building or other improvement thereon, and then only if
     more than ten percent of the

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     construction of such building or other improvement was completed before
     default on the related Mortgage Loan became imminent, all within the
     meaning of Section 856(e)(4)(B) of the Code; or

          (iv) authorize any Person to Directly Operate any REO Property on any
     date more than 90 days after its date of acquisition by the Trust Fund;

unless, in any such case, the Master Servicer has obtained an Opinion of
Counsel, provided to the Trustee and the NIMS Insurer, to the effect that such
action will not cause such REO Property to fail to qualify as "foreclosure
property" within the meaning of Section 860G(a)(8) of the Code at any time that
it is held by REMIC I, and (B) the Master Servicer has received written notice
from the Trustee that it has received written consent from the NIMS Insurer that
the specific action may be taken.

          The Master Servicer may contract with any Independent Contractor for
the operation and management of any REO Property, provided that:

          (i) the terms and conditions of any such contract shall not be
     inconsistent herewith;

          (ii) any such contract shall require, or shall be administered to
     require, that the Independent Contractor pay all costs and expenses
     incurred in connection with the operation and management of such REO
     Property, including those listed above and remit all related revenues (net
     of such costs and expenses) to the Master Servicer as soon as practicable,
     but in no event later than thirty days following the receipt thereof by
     such Independent Contractor;

          (iii) none of the provisions of this Section 3.13(c) relating to any
     such contract or to actions taken through any such Independent Contractor
     shall be deemed to relieve the Master Servicer of any of its duties and
     obligations to the Trustee on behalf of the Certificateholders with respect
     to the operation and management of any such REO Property; and

          (iv) the Master Servicer shall be obligated with respect thereto to
     the same extent as if it alone were performing all duties and obligations
     in connection with the operation and management of such REO Property.

          The Master Servicer shall be entitled to enter into any agreement with
any Independent Contractor performing services for it related to its duties and
obligations hereunder for indemnification of the Master Servicer by such
Independent Contractor, and nothing in this Agreement shall be deemed to limit
or modify such indemnification. The Master Servicer shall be solely liable for
all fees owed by it to any such Independent Contractor, irrespective of whether
the Master Servicer's compensation pursuant to Section 3.18 is sufficient to pay
such fees. The Master Servicer shall not engage an Independent Contractor to
engage in any activities that the Master Servicer would not be permitted to
engage in itself in accordance with the other provisions of this Agreement
(including the Loss Mitigation Action Plan).

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          (d) In addition to the withdrawals permitted under Section 3.13(c),
the Master Servicer may from time to time make withdrawals from the REO Account
for any REO Property: (i) to pay itself or any Sub-Servicer unpaid Servicing
Fees in respect of the related Mortgage Loan; and (ii) to reimburse itself or
any Sub-Servicer for unreimbursed Servicing Advances and Advances made in
respect of such REO Property or the related Mortgage Loan. On the Master
Servicer Remittance Date, the Master Servicer shall withdraw from each REO
Account maintained by it and deposit into the Distribution Account in accordance
with Section 3.04(g)(ii), for distribution on the related Distribution Date in
accordance with Section 4.01, the income from the related REO Property received
during the prior calendar month, net of any withdrawals made pursuant to Section
3.13(c) or this Section 3.13(d).

          (e) Subject to the time constraints set forth in Section 3.13(a),
(including the constraint that the Master Servicer hold and manage each REO
Property "solely for the purpose of its prompt disposition") each REO
disposition shall be carried out by the Master Servicer at such price and upon
such terms and conditions as shall be in conformity with the requirements of the
Loss Mitigation Action Plan and as shall be normal and usual in its general
servicing activities for similar properties.

          (f) The proceeds from the REO Disposition, net of any amount required
by law to be remitted to the Mortgagor under the related Mortgage Loan and net
of any payment or reimbursement to the Master Servicer or any Sub-Servicer as
provided above, shall be deposited in the Distribution Account in accordance
with Section 3.04(g)(ii) on the Master Servicer Remittance Date in the month
following the receipt thereof for distribution on the related Distribution Date
in accordance with Section 4.01. Any REO Disposition shall be for cash only
(unless changes in the REMIC Provisions made subsequent to the Startup Day allow
a sale for other consideration).

          SECTION 3.14. [Reserved].

          SECTION 3.15. Reports of Foreclosure and Abandonment of Mortgaged
                        Properties.

          The Master Servicer shall file information returns with respect to the
receipt of mortgage interest received in a trade or business, reports of
foreclosures and abandonments of any Mortgaged Property and cancellation of
indebtedness income with respect to any Mortgaged Property as required by
Sections 6050H, 6050J and 6050P of the Code, respectively. Such reports shall be
in form and substance sufficient to meet the reporting requirements imposed by
such Sections 6050H, 6050J and 6050P of the Code.

          SECTION 3.16. Optional Purchase of Defaulted Mortgage Loans.

          (a)(i) The NIMS Insurer may, at its option, purchase a Mortgage Loan
which has become 90 or more days delinquent or for which the Master Servicer has
accepted a deed in lieu of foreclosure. Prior to purchase pursuant to this
Section 3.16(a)(i), the Master Servicer shall be required to continue to make
Advances pursuant to Section 4.03. The NIMS Insurer shall not use any procedure
in selecting Mortgage Loans to be repurchased which is materially adverse to the
interests of the Certificateholders. The NIMS Insurer shall purchase such
delinquent Mortgage Loan

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at a price equal to the Purchase Price of such Mortgage Loan. Any such purchase
of a Mortgage Loan pursuant to this Section 3.16(a)(i) shall be accomplished by
remittance to the Master Servicer for deposit in the Collection Account of the
amount of the Purchase Price. The Trustee shall effectuate the conveyance of
such delinquent Mortgage Loan to the NIMS Insurer to the extent necessary, as
requested, and the Trustee shall promptly deliver all documentation to the NIMS
Insurer.

          (ii) During the first full calender month (but excluding the last
Business Day thereof) following a Mortgage Loan or related REO Property becoming
90 days or more delinquent, the Master Servicer shall have the option, but not
the obligation to purchase from the Trust Fund any such Mortgage Loan or related
REO Property that is then still 90 days or more delinquent, which the Master
Servicer determines in good faith will otherwise become subject to foreclosure
proceedings (evidence of such determination to be delivered in writing to the
Trustee prior to purchase), at a price equal to the Purchase Price. The Purchase
Price for any Mortgage Loan or related REO Property purchased hereunder shall be
deposited in the Collection Account, and the Trustee, upon written certification
of such deposit, shall release or cause to be released to the Master Servicer
the related Mortgage File and shall execute and deliver such instruments of
transfer or assignment, in each case without recourse, as the Master Servicer
shall furnish and as shall be necessary to vest in the Master Servicer title to
any Mortgage Loan or related REO Property released pursuant hereto.

          (b) If with respect to any delinquent Mortgage Loan or related REO
Property, the option of the Master Servicer set forth in the preceding paragraph
shall have arisen but the Master Servicer shall have failed to exercise such
option on or before the Business Day preceding the last Business Day of the
calender month following the calender month during which such Mortgage Loan or
related REO Property first became 90 days or more delinquent, then such option
shall automatically expire; provided, however, that if any such Mortgage Loan or
related REO Property shall cease to be 90 days or more delinquent but then
subsequently shall again become 90 days or more delinquent, then the Master
Servicer shall be entitled to another repurchase option with respect to such
Mortgage Loan or REO Property as provided in the preceding paragraph.

          SECTION 3.17. Trustee to Cooperate; Release of Mortgage Files.

          (a) Upon the payment in full of any Mortgage Loan, or the receipt by
the Master Servicer of a notification that payment in full shall be escrowed in
a manner customary for such purposes, the Master Servicer will promptly notify
the Trustee and any related Custodian by a certification in the form of Exhibit
E or such other form supplied by the Master Servicer provided that it does not
differ from the substantive content of Exhibit E (which certification shall
include a statement to the effect that all amounts received or to be received in
connection with such payment which are required to be deposited in the
Collection Account pursuant to Section 3.04(b) have been or will be so
deposited) of a Servicing Officer and shall request delivery to it of the
Mortgage File. Upon receipt of such certification and request, the Trustee or
such Custodian, as the case may be, shall promptly release (and in no event more
than three (3) Business Days thereafter) the related Mortgage File to the Master
Servicer. No expenses incurred in connection with any instrument of satisfaction
or deed of reconveyance shall be chargeable to the Collection Account or the
Distribution Account.

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          (b) From time to time and as appropriate for the servicing or
foreclosure of any Mortgage Loan, including, for this purpose, collection under
any insurance policy relating to the Mortgage Loans, the Trustee and any related
Custodian shall, upon request of the Master Servicer and delivery to the
Trustee, the Trustee or such Custodian, as the case may be, of a Request for
Release in the form of Exhibit E or such other form supplied by the Master
Servicer provided that it does not differ from the substantive content of
Exhibit E, release the related Mortgage File to the Master Servicer, and the
Trustee shall, at the direction of the Master Servicer, execute such documents
as shall be necessary to the prosecution of any such proceedings and the Master
Servicer shall retain such Mortgage File in trust for the benefit of the
Certificateholders. Such Request for Release shall obligate the Master Servicer
to return each and every document previously requested from the Mortgage File to
the Trustee or to such Custodian when the need therefor by the Master Servicer
no longer exists, unless the Mortgage Loan has been liquidated and the
Liquidation Proceeds relating to the Mortgage Loan have been deposited in the
Collection Account or the Mortgage File or such document has been delivered to
an attorney, or to a public trustee or other public official as required by law,
for purposes of initiating or pursuing legal action or other proceedings for the
foreclosure of the Mortgaged Property either judicially or non-judicially, and
the Master Servicer has delivered to the Trustee a certificate of a Servicing
Officer certifying as to the name and address of the Person to which such
Mortgage File or such document was delivered and the purpose or purposes of such
delivery. Upon receipt of a certificate of a Servicing Officer stating that such
Mortgage Loan was liquidated and that all amounts received or to be received in
connection with such liquidation that are required to be deposited into the
Collection Account have been so deposited, or that such Mortgage Loan has become
an REO Property, upon request, a copy of the Request for Release shall be
released by the Trustee or such Custodian to the Master Servicer.

          (c) Upon written certification of a Servicing Officer, the Trustee
shall execute and deliver to the Master Servicer any court pleadings, requests
for trustee's sale or other documents reasonably necessary to the foreclosure or
trustee's sale in respect of a Mortgaged Property or to any legal action brought
to obtain judgment against any Mortgagor on the Mortgage Note or Mortgage or to
obtain a deficiency judgment, or to enforce any other remedies or rights
provided by the Mortgage Note or Mortgage or otherwise available at law or in
equity. Each such certification shall include a request that such pleadings or
documents be executed by the Trustee and a statement as to the reason such
documents or pleadings are required and that the execution and delivery thereof
by the Trustee will not invalidate or otherwise affect the lien of the Mortgage,
except for the termination of such a lien upon completion of the foreclosure or
trustee's sale.

          (d) The Trustee and the Master Servicer may mutually agree on policies
and procedures (commercially reasonable in nature) to allow the submission of
any and all requests for the release of a Mortgage Loan file electronically with
a digital signature or other identifier to designate the Servicing Officer of
the Master Servicer requesting such collateral.

          SECTION 3.18. Servicing Compensation.

          As compensation for the activities of the Master Servicer hereunder,
the Master Servicer shall be entitled to the Servicing Fee with respect to each
Mortgage Loan payable solely from payments of interest in respect of such
Mortgage Loan, subject to Section 4.03(e). In addition, the Master Servicer
shall be entitled to recover unpaid Servicing Fees out of Insurance Proceeds or

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Liquidation Proceeds to the extent permitted by Section 3.05(a)(ii), out of
general funds in the Collection Account to the extent permitted by Section
3.05(a) and out of amounts derived from the operation and sale of an REO
Property to the extent permitted by Section 3.13. The right to receive the
Servicing Fee may not be transferred in whole or in part except in connection
with the transfer of all of the Master Servicer's responsibilities and
obligations under this Agreement.

          Additional servicing compensation in the form of assumption fees, late
payment charges, insufficient funds fees, reconveyance fees and other similar
fees and charges (other than Prepayment Charges) shall be retained by the Master
Servicer only to the extent such fees or charges are received by the Master
Servicer. The Master Servicer shall also be entitled pursuant to Section
3.05(a)(vi) to withdraw from the Collection Account, pursuant to Section 3.04(h)
to withdraw from any Escrow Account and pursuant to Section 3.13(b) to withdraw
from any REO Account, as additional servicing compensation, interest or other
income earned on deposits therein, subject to Section 3.06. The Master Servicer
shall be required to pay all expenses incurred by it in connection with its
servicing activities hereunder (including premiums for the insurance required by
Section 3.08, Section 3.09 and Section 3.10, to the extent such premiums are not
paid by the related Mortgagors or by a Sub-Servicer, servicing compensation of
each Sub-Servicer, and to the extent provided in Section 8.05, the fees and
expenses of the Trustee) and shall not be entitled to reimbursement therefor
except as specifically provided herein.

          SECTION 3.19. Statement as to Compliance.

          The Master Servicer will deliver to the Trustee, the NIMS Insurer, the
Depositor and each Rating Agency on or before March 15th of each calendar year
commencing in 2003, an Officers' Certificate stating, as to each signatory
thereof, that (i) a review of the activities of the Master Servicer during the
preceding year and of performance under this Agreement has been made under such
officers' supervision and (ii) to the best of such officers' knowledge, based on
such review, the Master Servicer has fulfilled all of its obligations under this
Agreement throughout such year, or, if there has been a default in the
fulfillment of any such obligation, specifying each such default known to such
officer and the nature and status thereof. Copies of any such statement shall be
provided by the Trustee to any Certificateholder and to any Person identified to
the Trustee as a prospective transferee of a Certificate, upon the request and
at the expense of the requesting party, provided that such statement is
delivered by the Master Servicer to the Trustee.

          SECTION 3.20. Independent Public Accountants' Servicing Report.

          Not later than March 15th of each calendar year commencing in 2003,
the Master Servicer, at its expense, shall cause a nationally recognized firm of
independent certified public accountants to furnish to the Master Servicer a
report stating that (i) it has obtained a letter of representation regarding
certain matters from the management of the Master Servicer which includes an
assertion that the Master Servicer has complied with certain minimum residential
mortgage loan servicing standards, identified in the Uniform Single Attestation
Program for Mortgage Bankers established by the Mortgage Bankers Association of
America, with respect to the servicing of residential mortgage loans during the
most recently completed fiscal year and (ii) on the basis of an examination
conducted by such firm in accordance with standards established by the American
Institute of Certified Public Accountants, such representation is fairly stated
in all material respects,

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subject to such exceptions and other qualifications that may be appropriate. In
rendering its report such firm may rely, as to matters relating to the direct
servicing of residential mortgage loans by Sub- Servicers, upon comparable
reports of firms of independent certified public accountants rendered on the
basis of examinations conducted in accordance with the same standards (rendered
within one year of such report) with respect to those Sub-Servicers. Immediately
upon receipt of such report, the Master Servicer shall furnish a copy of such
report to the Trustee, the NIMS Insurer and each Rating Agency. Copies of such
statement shall be provided by the Trustee to any Certificateholder upon request
at the Master Servicer's expense, provided that such statement is delivered by
the Master Servicer to the Trustee. In the event such firm of independent
certified public accountants requires the Trustee to agree to the procedures
performed by such firm, the Master Servicer shall direct the Trustee in writing
to so agree; it being understood and agreed that the Trustee will deliver such
letter of agreement in conclusive reliance upon the direction of the Master
Servicer, and the Trustee has not made any independent inquiry or investigation
as to, and shall have no obligation or liability in respect of, the sufficiency,
validity or correctness of such procedures.

          SECTION 3.21. Access to Certain Documentation.

          The Master Servicer shall provide to the Office of Thrift Supervision,
the FDIC, and any other federal or state banking or insurance regulatory
authority that may exercise authority over any Certificateholder, access to the
documentation regarding the Mortgage Loans required by applicable laws and
regulations. Such access shall be afforded without charge, but only upon
reasonable request and during normal business hours at the offices of the Master
Servicer designated by it. In addition, access to the documentation regarding
the Mortgage Loans will be provided to any Certificateholder, the Trustee, the
NIMS Insurer and to any Person identified to the Master Servicer as a
prospective transferee of a Certificate, upon reasonable request during normal
business hours at the offices of the Master Servicer designated by it at the
expense of the Person requesting such access. In each case, access to any
documentation regarding the Mortgage Loans may be conditioned upon the
requesting party's acknowledgment in writing of a confidentiality agreement
regarding any information that is required to remain confidential under the
Gramm-Leach-Bliley Act of 1999.

          SECTION 3.22. [Reserved]

          SECTION 3.23. Advance Facility.

          (a) The Master Servicer and/or the Trustee on behalf of the Trust
Fund, in either case, with the consent of the NIMS Insurer, is hereby authorized
to enter into a facility with any Person which provides that such Person (an
"Advancing Person") may fund Advances and/or Servicing Advances under this
Agreement, although no such facility shall reduce or otherwise affect the Master
Servicer's obligation to fund such Advances and/or Servicing Advances. If the
Master Servicer enters into such an Advance Facility pursuant to this Section
3.23, upon reasonable request of the Advancing Person, the Trustee shall execute
a letter of acknowledgment, confirming its receipt of notice of the existence of
such Advance Facility. To the extent that an Advancing Person funds any Advance
or any Servicing Advance and provides the Trustee with notice acknowledged by
the Master Servicer that such Advancing Person is entitled to reimbursement
directly from the Trustee pursuant to the terms of the Advance Facility, such
Advancing Person shall be entitled to receive reimbursement pursuant to this
Agreement for such amount to the extent provided in Section 3.23(b).

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Such notice from the Advancing Person must specify the amount of the
reimbursement, the Section of this Agreement that permits the applicable Advance
or Servicing Advance to be reimbursed and the section(s) of the Advance Facility
that entitle the Advancing Person to request reimbursement from the Trustee,
rather than the Master Servicer, and include the Master Servicer's
acknowledgment thereto or proof of an Event of Default under the Advance
Facility. The Trustee 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 rely without independent investigation on the Advancing Person's
notice provided pursuant to this Section 3.23. An Advancing Person whose
obligations hereunder are limited to the funding of Advances and/or Servicing
Advances shall not be required to meet the qualifications of a Sub-Servicer
pursuant to Section 6.06 hereof. If the terms of a facility proposed to be
entered into with an Advancing Servicer by the Trust Fund would not materially
and adversely affect the interests of any Certificateholder, then the NIMS
Insurer shall not withhold its consent to the Trust Fund's entering such
facility.

          (b) If an Advancing Person is entitled to reimbursement for any
particular Advance or Servicing Advance as set forth in Section 3.23(a), then
the Master Servicer shall not be permitted to reimburse itself therefor under
Section 3.05(a)(ii), Section 3.05(a)(iii), Section 3.05(a)(v) or Section
3.05(a)(vii), but instead the Master Servicer shall include such amounts in the
applicable remittance to the Trustee made pursuant to Section 3.04(g) to the
extent of amounts on deposit in the Collection Account on the related Master
Servicer Remittance Date. The Trustee is hereby authorized to pay to an
Advancing Person reimbursements for Advances and Servicing Advances from the
Distribution Account to the same extent the Master Servicer would have been
permitted to reimburse itself for such Advances and/or Servicing Advances in
accordance with Section 3.05(a)(ii), Section 3.05(a)(iii), Section 3.05(a)(v) or
Section 3.05(a)(vii), as the case may be, had the Master Servicer made such
Advance or Servicing Advance.

          (c) All Advances and Servicing Advances made pursuant to the terms of
this Agreement shall be deemed made and shall be reimbursed on a "first in first
out" (FIFO) basis.

          (d) In the event the Master Servicer is terminated pursuant to Section
7.01, the Advancing Person shall succeed to the terminated Master Servicer's
right of reimbursement set forth in Section 7.02(c) to the extent of such
Advancing Person's financing of Advances or Servicing Advances hereunder then
remaining unreimbursed.

          SECTION 3.24. PMI Policy; Claims Under the PMI Policy.

          Notwithstanding anything to the contrary elsewhere in this Article
III, the Master Servicer shall not agree to any modification or assumption of a
PMI Mortgage Loan or take any other action with respect to a PMI Mortgage Loan
that could result in denial of coverage under the PMI Policy. The Master
Servicer shall notify the PMI Insurer that the Trustee, on behalf of the
Certificateholders, is the Insured, as that term is defined in the PMI Policy,
of each PMI Mortgage Loan. The Master Servicer shall, on behalf of the Trustee,
prepare and file on a timely basis with the PMI Insurer, with a copy to the
Trustee, all claims which may be made under the PMI Policy with respect to the
PMI Mortgage Loans. Consistent with all rights and obligations hereunder, the
Master Servicer shall take all actions required under the PMI Policy as a
condition to the payment of any such claim. Any amount received from the PMI
Insurer with respect to any such PMI

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Mortgage Loan shall be deposited by the Master Servicer into the Collection
Account in accordance with Section 3.04(b).

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                                   ARTICLE IV

                         PAYMENTS TO CERTIFICATEHOLDERS

          SECTION 4.01. Distributions.

          (a)(1)(A) On each Distribution Date, the following amounts, in the
following order of priority, shall be distributed by REMIC I to REMIC II on
account of the REMIC I Regular Interests or withdrawn from the Distribution
Account and distributed to the holders of the Class R Certificates (in respect
of the Class R-I Interest), as the case may be:

          With respect to the Group I Mortgage Loans:

          (i)(a) to the Holders of REMIC Regular Interest I-LT1, REMIC I Regular
     Interest I-LT1PF and REMIC I Regular Interest I-LTP in an amount equal to
     (A) the Uncertificated Interest for each REMIC I Regular Interest for such
     Distribution Date, plus (B) any amounts in respect thereof remaining unpaid
     from previous Distribution Dates; and

          (b) to the Holders of REMIC I Regular Interest I-LTP, on the
     Distribution Date immediately following the expiration of the latest
     Prepayment Charge as identified on the Prepayment Charge Schedule or any
     Distribution Date thereafter until $100 has been distributed pursuant to
     this clause;

          (ii) to the Holders of REMIC I Regular Interest I-LT1 and REMIC I
     Regular Interest I-LT1PF, in an amount equal to the remainder of the
     Available Funds for such Distribution Date after the distributions made
     pursuant to clause (1) above, allocated as follows:

          (a) to the Holders of REMIC I Regular Interest I-LT1, until the
     Uncertificated Balance of REMIC I Regular Interest I-LT1 is reduced to
     zero;

          (b) to the Holders of REMIC I Regular Interest I-LT1PF, until the
     Uncertificated Balance of REMIC I Regular Interest I-LT1PF is reduced to
     zero; and

          (c) any remaining amount to the Holders of the Class R Certificates
     (in respect of the Class R-1 Interest).

provided, however, that for the first two Distribution Dates, such amounts
relating to the Initial Group I Mortgage Loans shall be allocated to the REMIC I
Regular Interests (other than REMIC I Regular Interest I-LT1PF) in the order and
priority described above and such amounts relating to the Subsequent Group I
Mortgage Loans shall be allocated to REMIC I Regular Interest I-LT1PF.

          With respect to the Group II Mortgage Loans:

          (i) to the Holders of REMIC Regular Interest I-LT2, REMIC I Regular
     Interest I-LT2PF in an amount equal to (A) the Uncertificated Interest for
     each REMIC I Regular

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     Interest for such Distribution Date, plus (B) any amounts in respect
     thereof remaining unpaid from previous Distribution Dates;

          (ii) to the Holders of REMIC I Regular Interest I-LT2 and REMIC I
     Regular Interest I-LT2PF, in an amount equal to the remainder of the
     Available Funds for such Distribution Date after the distributions made
     pursuant to clause (1) above, allocated as follows:

          (a) to the Holders of REMIC I Regular Interest I-LT2, until the
     Uncertificated Balance of REMIC I Regular Interest I-LT1 is reduced to
     zero;

          (b) to the Holders of REMIC I Regular Interest I-LT2PF, until the
     Uncertificated Balance of REMIC I Regular Interest I-LT1PF is reduced to
     zero; and

          (c) any remaining amount to the Holders of the Class R Certificates
     (in respect of the Class R-1 Interest).

provided, however, that for the first two Distribution Dates, such amounts
relating to the Initial Group II Mortgage Loans shall be allocated to the REMIC
I Regular Interests (other than REMIC I Regular Interest I-LT2PF) in the order
and priority described above and such amounts relating to the Subsequent Group
II Mortgage Loans shall be allocated to REMIC I Regular Interest I-LT2PF.

          On each Distribution Date, all amounts representing Prepayment Charges
in respect of the Mortgage Loans received during the related Prepayment Period
will be distributed by REMIC I to the Holders of REMIC I Regular Interest I-LTP.
The payment of the foregoing amounts to the Holders of REMIC I Regular Interest
I-LTP shall not reduce the Uncertificated Balance thereof.

          (B) On each Distribution Date, the following amounts, in the following
order of priority, shall be distributed by REMIC II to REMIC III on account of
the REMIC II Regular Interests or withdrawn from the Distribution Account and
distributed to the holders of the Class R Certificates (in respect of the Class
R-II Interest), as the case may be:

          (i)(a) first, to the Holders of REMIC II Regular Interest II-LTS, in
     an amount equal to (A) the Uncertificated Interest for such Distribution
     Date, plus (B) any amounts in respect thereof remaining unpaid from
     previous Distribution Dates and second, to Holders of REMIC II Regular
     Interest II-LT1 and REMIC II Regular Interest II-LTP in an amount equal to
     (A) the Uncertificated Interest for such Distribution Date, plus (B) any
     amounts in respect thereof remaining unpaid from previous Distribution
     Dates; and

          (b) to the Holders of REMIC II Regular Interest II-LTP, on the
     Distribution Date immediately following the expiration of the latest
     Prepayment Charge as identified on the Prepayment Charge Schedule or any
     Distribution Date thereafter until $100 has been distributed pursuant to
     this clause;

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          (ii) second, to the Holders of REMIC II Regular Interests, in an
     amount equal to the remainder of the Available Funds for such Distribution
     Date after the distributions made pursuant to clause (1) above, allocated
     as follows:

          (a) to the Holders of REMIC II Regular Interest II-LT1, until the
     Uncertificated Balance of REMIC II Regular Interest II-LT1 is reduced to
     zero;

          (b) to the Holders of REMIC II Regular Interest II-LTS, until the
     Uncertificated Balance of REMIC II Regular Interest II-LTS is reduced to
     zero; and

          (c) any remaining amount to the Holders of the Class R Certificates
     (in respect of the Class R-II Interest).

          (C) On each Distribution Date, the Trustee shall cause in the
following order of priority, the following amounts to be distributed by REMIC
III to REMIC IV on account of the REMIC III Regular Interests or withdrawn from
the Distribution Account and distributed to the holders of the Class R
Certificates (in respect of the Class R-III Interest), as the case may be:

          (i) first, to the extent of Available Funds, to the Holders of REMIC
     III Regular Interest III-LTS in an amount equal to (A) the Uncertificated
     Interest for such Distribution Date, plus (B) any amounts in respect
     thereof remaining unpaid from previous Distribution Dates and then to
     Holders of REMIC III Regular Interest III-LTAA, REMIC III Regular Interest
     III-LTAF1, REMIC III Regular Interest III-LTAF2, REMIC III Regular Interest
     III- LTAF3, REMIC III Regular Interest III-LTAF4, REMIC III Regular
     Interest III-LTAV1, REMIC III Regular Interest III-LTAV2, REMIC III Regular
     Interest III-LTAV3, REMIC III Regular Interest III-LTM1, REMIC III Regular
     Interest III-LTM2, REMIC III Regular Interest III-LTM3, REMIC III Regular
     Interest III-LTZZ and REMIC III Regular Interest III- LTP, PRO RATA, in an
     amount equal to (A) the accrued interest for such Distribution Date, plus
     (B) any amounts in respect thereof remaining unpaid from previous
     Distribution Dates; provided, however, that amounts payable as accrued
     interest in respect of REMIC III Regular Interest III-LTZZ shall be reduced
     and deferred when the REMIC III Overcollateralized Amount is less than the
     REMIC III Overcollateralization Target Amount, by the lesser of (x) the
     amount of such difference and (y) the Maximum III-LTZZ Uncertificated
     Accrued Interest Deferral Amount; and

          (ii) second, to the Holders of REMIC III Regular Interests, in an
     amount equal to the remainder of the Available Funds for such Distribution
     Date after the distributions made pursuant to clause (i) above, allocated
     as follows:

          (a) to the Holders of REMIC III Regular Interest III-LTAA and REMIC
     III Regular Interest III-LTP, 98.00% of such remainder, calculated after
     payments pursuant to clause (d) below, until the Uncertificated Balance of
     such REMIC III Regular Interest is reduced to zero; provided that REMIC III
     Regular Interest III-LTP shall not be reduced until the Distribution Date
     immediately following the expiration of the latest Prepayment Charge as
     identified on the Prepayment Charge Schedule or any Distribution Date
     thereafter, at

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     which point such amount shall be distributed to REMIC III Regular Interest
     III-LTP, until $100 has been distributed pursuant to this clause;

          (b) to the Holders of REMIC III Regular Interest III-LTAF1, REMIC III
     Regular Interest III-LTAF2, REMIC III Regular Interest III-LTAF3, REMIC III
     Regular Interest III- LTAF4, REMIC III Regular Interest III-LTAV1, REMIC
     III Regular Interest III-LTAV2, REMIC III Regular Interest III-LTAV3, REMIC
     III Regular Interest III-LTM1, REMIC III Regular Interest III-LTM2 and
     REMIC III Regular Interest III-LTM3 1.00% of such remainder, calculated
     after payments pursuant to clause (d) below, in the same proportion as
     principal payments are allocated to the Corresponding Certificate, until
     the Uncertificated Balances of such REMIC III Regular Interests are reduced
     to zero;

          (c) to the Holders of REMIC III Regular Interest III-LTZZ, 1.00% of
     such remainder, calculated after payments pursuant to clause (d) below,
     until the Uncertificated Balance of such REMIC III Regular Interest is
     reduced to zero; then

          (d) any remaining amount to the Holders of the Class R Certificates
     (in respect of the Class R-III Interest);

provided, however, that (i) 98.00% and (ii) 2.00% of any principal payments that
are attributable to an Overcollateralization Release Amount shall be allocated
to Holders of (i) REMIC III Regular Interest III-LTAA and REMIC III Regular
Interest III-LTP, in that order and (ii) REMIC III Regular Interest III-LTZZ,
respectively; provided that REMIC III Regular Interest III-LTP shall not be
reduced until the Distribution Date immediately following the expiration of the
latest Prepayment Charge as identified on the Prepayment Charge Schedule or any
Distribution Date thereafter, at which point such amount shall be distributed to
REMIC III Regular Interest III-LTP, until $100 has been distributed pursuant to
this clause.

          (2) On each Distribution Date, the Trustee shall withdraw from the
Distribution Account an amount equal to the Interest Remittance Amount and
distribute to the Certificateholders the following amounts, in the following
order of priority:

          (i) concurrently to the Holders of the Class A Certificates and the
     Holders of the Class S Certificates, an amount equal to the Senior Interest
     Distribution Amount allocable to such Certificates, on a PRO RATA basis
     based on the entitlement of each such Class;

          (ii) to the Holders of the Class M-1 Certificates, an amount equal to
     the Interest Distribution Amount allocable to the Class M-1 Certificates;

          (iii) to the Holders of the Class M-2 Certificates, an amount equal to
     the Interest Distribution Amount allocable to the Class M-2 Certificates;
     and

          (iv) to the Holders of the Class M-3 Certificates, an amount equal to
     the Interest Distribution Amount allocable to the Class M-3 Certificates.

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          (3)(a) On each Distribution Date, (a) prior to the Stepdown Date or
(b) on which a Trigger Event is in effect, the Principal Distribution Amount
shall be distributed by the Trustee in the following order of priority:

          (i) to the Holders of the Class A Certificates, allocated between the
     Classes of Class A Certificates and in the priority as set forth below,
     until the Certificate Principal Balance of each such Class has been reduced
     to zero;

          (ii) to the Holders of the Class M-1 Certificates, until the
     Certificate Principal Balance of such Class has been reduced to zero;

          (iii) to the Holders of the Class M-2 Certificates, until the
     Certificate Principal Balance of such Class has been reduced to zero; and

          (iv) to the Holders of the Class M-3 Certificates, until the
     Certificate Principal Balance of such Class has been reduced to zero.

          (b) On each Distribution Date (a) on or after the Stepdown Date and
     (b) on which a Trigger Event is not in effect, the Principal Distribution
     Amount shall be distributed by the Trustee in the following order of
     priority:

          (i) to the Holders of the Class A Certificates, the Class A Principal
     Distribution Amount, allocated among the Classes of Class A Certificates
     and in the priority set forth below, until the Certificate Principal
     Balance of each such Class has been reduced to zero;

          (ii) to the holders of the Class M-1 Certificates, the Class M-1
     Principal Distribution Amount until the Certificate Principal Balance
     thereof has been reduced to zero;

          (iii) to the holders of the Class M-2 Certificates, the Class M-2
     Principal Distribution Amount until the Certificate Principal Balance
     thereof has been reduced to zero; and

          (iv) to the holders of the Class M-3 Certificates, the Class M-3
     Principal Distribution Amount until the Certificate Principal Balance
     thereof has been reduced to zero.

          All principal distributions of the Principal Distribution Amount or
the Class A Principal Distribution Amount to the Holders of the Class A
Certificates on any Distribution Date will be allocated between the Class AF
Certificates and the Class AV Certificates on a PRO RATA basis based on the
Class AF Allocation Percentage and the Class AV Allocation Percentage for each
such Class for such Distribution Date. Notwithstanding the foregoing, if the
aggregate Certificate Principal Balance of the Class AF Certificates or the
Class AV Certificates is reduced to zero, then the remaining amount of principal
distributions distributable to the Holders of such Class A Certificates on such
Distribution Date, and the amount of principal distributions distributable to
the Holders of such Class A Certificates on subsequent Distribution Dates, will
be distributed to the holders of the Class of Class A Certificates remaining
outstanding, until the Certificate Principal Balance of such Class of Class A
Certificates remaining outstanding has been reduced to zero.

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<PAGE>

          With respect to the Class AF Certificates, all principal distributions
of the Class AF Allocation Percentage of the Principal Distribution Amount or
the Class A Principal Distribution Amount will be distributed as follows: first,
to the Holders of the Class AF-4 Certificates, the Lockout Distribution
Percentage of the Class AF Allocation Percentage of the Principal Distribution
Amount or the Class A Principal Distribution Amount, as applicable, until the
Certificate Principal Balance of the Class AF-4 Certificates has been reduced to
zero; second, to the Holders of the Class AF-1 Certificates, until the
Certificate Principal Balance of the Class AF-1 Certificates has been reduced to
zero; third, to the Holders of the Class AF-2 Certificates, until the
Certificate Principal Balance of the Class AF-2 Certificates has been reduced to
zero; fourth, to the Holders of the Class AF-3 Certificates, until the
Certificate Principal Balance of the Class AF-3 Certificates has been reduced to
zero; and fifth, to the Holders of the Class AF-4 Certificates, until the
Certificate Principal Balance of the Class AF-4 Certificates has been reduced to
zero.

          With respect to the Class AV Certificates, all principal distributions
of the Class AV Allocation Percentage of the Principal Distribution Amount or
the Class A Principal Distribution Amount will be distributed as follows:

          first, to the Holders of the Class AV-1 Certificates, the Class AV-1
Allocation Percentage of such amount and to the Holders of the Class AV-2
Certificates, the Class AV-2/3 Allocation Percentage of such amount, in each
case, until the Certificate Principal Balances of the Class AV-1 Certificates
and the Class AV-2 Certificates have been reduced to zero; and

          second, to the Holders of the Class AV-3 Certificates, the Class
AV-2/3 Allocation Percentage, until the Certificate Principal Balance of the
Class AV-3 Certificates has been reduced to zero.

          (4) On each Distribution Date, the Net Monthly Excess Cashflow shall
be distributed as follows:

          (i) to the Holders of the Class or Classes of Certificates then
     entitled to receive distributions in respect of principal, in an amount
     equal to the Overcollateralization Increase Amount, distributable as part
     of the Principal Distribution Amount;

          (ii) to the Holders of the Class M-1 Certificates, in an amount equal
     to the Interest Carry Forward Amount allocable to such Class of
     Certificates;

          (iii) to the Holders of the Class M-2 Certificates, in an amount equal
     to the Interest Carry Forward Amount allocable to such Class of
     Certificates;

          (iv) to the Holders of the Class M-3 Certificates, in an amount equal
     to the Interest Carry Forward Amount allocable to such Class of
     Certificates;

          (v) to the Net WAC Rate Carryover Reserve Account, the amount required
     by Section 4.07(b), after taking into account amounts received under the
     Cap Contracts;

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          (vi) to the Holders of the Class CE Certificates the Interest
     Distribution Amount and any remaining Overcollateralization Reduction
     Amount and any Subsequent Mortgage Loan Interest for such Distribution
     Date; and

          (vii) to the Holders of the Class R Certificates, any remaining
     amounts; provided that if such Distribution Date is the Distribution Date
     immediately following the expiration of the latest Prepayment Charge term
     as identified on the Mortgage Loan Schedule or any Distribution Date
     thereafter, then any such remaining amounts will be distributed first, to
     the Holders of the Class P Certificates, until the Certificate Principal
     Balance thereof has been reduced to zero; and second, to the Holders of the
     Class R Certificates.

          (b) On each Distribution Date, after making the distributions of the
Available Funds as set forth above, the Trustee shall FIRST, withdraw from the
Net WAC Rate Carryover Reserve Account all income from the investment of funds
in the Net WAC Rate Carryover Reserve Account and distribute such amount to the
Holders of the Class CE Certificates, and SECOND, withdraw from the Net WAC Rate
Carryover Reserve Account, to the extent of amounts remaining on deposit
therein, the amount of any Net WAC Rate Carryover Amount for such Distribution
Date and distribute such amount FIRST, concurrently, to the Class A Certificates
and the Class S Certificates on a PRO RATA basis based on the respective Net WAC
Rate Carryover Amounts for such Classes of Certificates, until each such amount
has been paid in full; SECOND, to the Class M-1 Certificates, THIRD, to the
Class M-2 Certificates, and FOURTH, to the Class M-3 Certificates, in each case
to the extent the Net WAC Carryover Amount is allocable to each such Class.

          On each Distribution Date, the Trustee shall withdraw any amounts then
on deposit in the Distribution Account that represent Prepayment Charges
collected by the Master Servicer, Prepayment Charges payable by the Master
Servicer pursuant to Section 2.03(b)(ii)(A) and Master Servicer Prepayment
Charge Payment Amounts payable by the Master servicer pursuant to Section
2.03(b)(ii)(B), subject to Section 2.03(b)(iii), in each case to the extent not
related to Principal Prepayments occurring after the related Prepayment Period,
and the Trustee shall distribute such amounts to the Holders of the Class P
Certificates. Such distributions shall not be applied to reduce the Certificate
Principal Balance of the Class P Certificates.

          (c) All distributions made with respect to each Class of Certificates
on each Distribution Date shall be allocated PRO RATA among the outstanding
Certificates in such Class based on their respective Percentage Interests.
Payments in respect of each Class of Certificates on each Distribution Date
shall be made to the Holders of the respective Class of record on the related
Record Date (except as otherwise provided in Section 4.01(e) or Section 9.01
respecting the final distribution on such Class), based on the aggregate
Percentage Interest represented by their respective Certificates, and shall be
made by wire transfer of immediately available funds to the account of any such
Holder at a bank or other entity having appropriate facilities therefor, if such
Holder shall have so notified the Trustee in writing at least five Business Days
prior to the Record Date immediately prior to such Distribution Date, or
otherwise by check mailed by first class mail to the address of such Holder
appearing in the Certificate Register. The final distribution on each
Certificate shall be made in like manner, but only upon presentment and
surrender of such Certificate at the office of the Trustee maintained for such
purpose pursuant to Section 8.12 or such other location specified in the notice
to Certificateholders of such final distribution.

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          Each distribution with respect to a Book-Entry Certificate shall be
paid to the Depository, as Holder thereof, and the Depository shall be
responsible for crediting the amount of such distribution to the accounts of its
Depository Participants in accordance with its normal procedures. Each
Depository Participant shall be responsible for disbursing such distribution to
the Certificate Owners that it represents and to each indirect participating
brokerage firm (a "brokerage firm" or "indirect participating firm") for which
it acts as agent. Each brokerage firm shall be responsible for disbursing funds
to the Certificate Owners that it represents. None of the Trustee, the Trustee,
the Certificate Registrar, the Depositor or the Master Servicer shall have any
responsibility therefor except as otherwise provided by this Agreement or
applicable law.

          (d) The rights of the Certificateholders to receive distributions in
respect of the Certificates, and all interests of the Certificateholders in such
distributions, shall be as set forth in this Agreement. None of the Holders of
any Class of Certificates, the Trustee or the Master Servicer shall in any way
be responsible or liable to the Holders of any other Class of Certificates in
respect of amounts properly previously distributed on the Certificates.

          (e) Except as otherwise provided in Section 9.01, whenever the Trustee
expects that the final distribution with respect to any Class of Certificates
will be made on the next Distribution Date, the Trustee shall, no later than
five (5) days after the related Determination Date, mail to each Holder on such
date of such Class of Certificates a notice to the effect that:

          (i) the Trustee expects that the final distribution with respect to
     such Class of Certificates will be made on such Distribution Date, but only
     upon presentation and surrender of such Certificates at the office of the
     Trustee therein specified or its agent, and

          (ii) no interest shall accrue on such Certificates from and after the
     end of the related Interest Accrual Period.

          Any funds not distributed to any Holder or Holders of Certificates of
such Class on such Distribution Date because of the failure of such Holder or
Holders to tender their Certificates shall, on such date, be set aside and held
in trust by the Trustee and credited to the account of the appropriate
non-tendering Holder or Holders. If any Certificates as to which notice has been
given pursuant to this Section 4.01(e) shall not have been surrendered for
cancellation within six months after the time specified in such notice, the
Trustee shall mail a second notice to the remaining non- tendering
Certificateholders to surrender their Certificates for cancellation in order to
receive the final distribution with respect thereto. If within one year after
the second notice all such Certificates shall not have been surrendered for
cancellation, the Trustee shall, directly or through an agent, mail a final
notice to remaining non-tendering Certificateholders concerning surrender of
their Certificates but shall continue to hold any remaining funds for the
benefit of non-tendering Certificateholders. The costs and expenses of
maintaining the funds in trust and of contacting such Certificateholders shall
be paid out of the assets remaining in such trust fund. If within one year after
the final notice any such Certificates shall not have been surrendered for
cancellation, the Trustee shall pay to Deutsche Bank Securities Inc. all such
amounts, and all rights of non-tendering Certificateholders in or to such
amounts shall thereupon cease. No interest shall accrue or be payable to any
Certificateholder on any amount held in trust by the Trustee as a result of such
Certificateholder's

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<PAGE>

failure to surrender its Certificate(s) for final payment thereof in accordance
with this Section 4.01(e).

          (f) Notwithstanding anything to the contrary herein, (i) in no event
shall the Certificate Principal Balance of a Class A Certificate or a Mezzanine
Certificate be reduced more than once in respect of any particular amount both
(a) allocated to such Certificate in respect of Realized Losses pursuant to
Section 4.04 and (b) distributed to the Holder of such Certificate in reduction
of the Certificate Principal Balance thereof pursuant to this Section 4.01 from
Net Monthly Excess Cashflow and (ii) in no event shall the Uncertificated
Balance of a REMIC I Regular Interest or REMIC II Regular Interest to be reduced
more than once in respect of any particular amount both (a) allocated to such
REMIC I Regular Interest or REMIC II Regular Interest in respect of Realized
Losses pursuant to Section 4.04 and (b) distributed on such REMIC I Regular
Interest or REMIC II Regular Interest in reduction of the Uncertificated Balance
thereof pursuant to this Section 4.01.

          SECTION 4.02. Statements to Certificateholders.

          On each Distribution Date, the Trustee shall prepare and make
available to each Holder of the Regular Certificates and the NIMS Insurer, a
statement as to the distributions made on such Distribution Date setting forth:

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

          (ii) the amount of the distribution made on such Distribution Date to
     the Holders of the Certificates of each Class allocable to interest;

          (iii) the aggregate Servicing Fee received by the Master Servicer
     during the related Due Period and such other customary information as the
     Trustee deems necessary or desirable, or which a Certificateholder
     reasonably requests, to enable Certificateholders to prepare their tax
     returns;

          (iv) the aggregate amount of Advances for such Distribution Date;

          (v) the aggregate Stated Principal Balance of the Mortgage Loans and
     any REO Properties as of the close of business on such Distribution Date;

          (vi) the number, aggregate Principal Balance, weighted average
     remaining term to maturity and weighted average Mortgage Rate of the
     Mortgage Loans as of the related Due Date and the number and aggregate
     Principal Balance of all Subsequent Mortgage Loans added during the
     preceding Due Period;

          (vii) the number and aggregate unpaid Principal Balance of Mortgage
     Loans (a) delinquent 30-59 days, (b) delinquent 60-89 days, (c) delinquent
     90 or more days in each case, as of the last day of the preceding calendar
     month, (d) as to which foreclosure

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     proceedings have been commenced and (e) with respect to which the related
     Mortgagor has filed for protection under applicable bankruptcy laws, with
     respect to whom bankruptcy proceedings are pending or with respect to whom
     bankruptcy protection is in force;

          (viii) with respect to any Mortgage Loan that became an REO Property
     during the preceding calendar month, the loan number of such Mortgage Loan,
     the unpaid Principal Balance and the Stated Principal Balance of such
     Mortgage Loan as of the date it became an REO Property;

          (ix) the book value and the Stated Principal Balance of any REO
     Property as of the close of business on the last Business Day of the
     calendar month preceding the Distribution Date;

          (x) the aggregate amount of Principal Prepayments made during the
     related Prepayment Period;

          (xi) the aggregate amount of Realized Losses incurred during the
     related Prepayment Period (or, in the case of Bankruptcy Losses allocable
     to interest, during the related Due Period), separately identifying whether
     such Realized Losses constituted Bankruptcy Losses and the aggregate amount
     of Realized Losses incurred since the Closing Date;

          (xii) the aggregate amount of Extraordinary Trust Fund Expenses
     withdrawn from the Collection Account or the Distribution Account for such
     Distribution Date;

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

          (xiv) the Certificate Factor for each such Class of Certificates
     applicable to such Distribution Date;

          (xv) the Interest Distribution Amount in respect of the Class A
     Certificates, the Class S Certificates, the Mezzanine Certificates and the
     Class CE Certificates for such Distribution Date and the Interest Carry
     Forward Amount, if any, with respect to the Class A Certificates, the Class
     S Certificates, the Mezzanine Certificates and the Class S Certificates on
     such Distribution Date, and in the case of the Class A Certificates, the
     Mezzanine Certificates, the Class S Certificates and the Class CE
     Certificates, separately identifying any reduction thereof due to
     allocations of Realized Losses, Prepayment Interest Shortfalls and Relief
     Act Interest Shortfalls;

          (xvi) the aggregate amount of any Prepayment Interest Shortfall for
     such Distribution Date, to the extent not covered by payments by the Master
     Servicer pursuant to Section 4.03(e) or allocated to the Class CE
     Certificates;

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          (xvii) the aggregate amount of Relief Act Interest Shortfalls for such
     Distribution Date;

          (xviii) the Overcollateralization Target Amount and the Credit
     Enhancement Percentage for such Distribution Date;

          (xix) the Overcollateralization Increase Amount, if any, for such
     Distribution Date;

          (xx) the Overcollateralization Reduction Amount, if any, for such
     Distribution Date;

          (xxi) with respect to any Mortgage Loan as to which foreclosure
     proceedings have been concluded, the loan number and unpaid Principal
     Balance of such Mortgage Loan as of the date of such conclusion of
     foreclosure proceedings;

          (xxii) with respect to Mortgage Loans as to which a Final Liquidation
     has occurred, the number of Mortgage Loans, the unpaid Principal Balance of
     such Mortgage Loans as of the date of such Final Liquidation and the amount
     of proceeds (including Liquidation Proceeds and Insurance Proceeds)
     collected in respect of such Mortgage Loans;

          (xxiii) the respective Pass-Through Rates applicable to the Class A
     Certificates, the Mezzanine Certificates, the Class S Certificates and the
     Class CE Certificates for such Distribution Date and the Pass-Through Rate
     applicable to the Class AV Certificates and the Mezzanine Certificates for
     the immediately succeeding Distribution Date;

          (xxiv) the amount on deposit in the Pre-Funding Accounts, the Interest
     Coverage Accounts and the Net WAC Rate Carryover Reserve Account as of the
     Determination Date;

          (xxv) the Net WAC Rate Carryover Amount for the Class A Certificates,
     the Class S Certificates and the Mezzanine Certificates, if any, for such
     Distribution Date, the amount remaining unpaid after reimbursements
     therefor on such Distribution Date and any amounts received under the Cap
     Contracts;

          (xxvi) for the distribution occurring on the Distribution Date
     immediately following the end of the Funding Period, the current balance on
     deposit in the Pre-Funding Accounts that has not been used to purchase
     Subsequent Mortgage Loans and that is being distributed to the related
     Class A Certificateholders as a mandatory prepayment of principal, if any,
     on such Distribution Date;

          (xxvii) (A) the amount of payments received from the Master Servicer
     related to claims under the PMI Policy during the related Prepayment Period
     (and the number of Mortgage Loans to which such payments related) and (B)
     the cumulative amount of payments received related to claims under the PMI
     Policy since the Closing Date (and the number of Mortgage Loans to which
     such payments related); and

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          (xxviii) (A) the dollar amount of claims made under the PMI Policy
     that were denied (as identified by the Master Servicer) during the
     Prepayment Period (and the number of Mortgage Loans to which such denials
     related) and (B) the dollar amount of the cumulative claims made under the
     PMI Policy that were denied since the Closing Date (and the number of
     Mortgage Loans to which such denials related).

          The Trustee shall make such statement (and, at its option, any
additional files containing the same information in an alternative format)
available each month to Certificateholders, the NIMS Insurer, the Master
Servicer, the Trustee and the Rating Agencies via the Trustee's internet
website. The Trustee's internet website shall initially be located at
http:\\www.corporatetrust.db.com and assistance in using the website can be
obtained by calling the Trustee's customer service desk at 1-800-735-7777.
Parties that are unable to use the above distribution options are entitled to
have a paper copy mailed to them via first class mail by calling the customer
service desk and indicating such. The Trustee shall have the right to change the
way such statements are distributed in order to make such distribution more
convenient and/or more accessible to the above parties and the Trustee shall
provide timely and adequate notification to all above parties regarding any such
changes.

          In the case of information furnished pursuant to subclauses (i)
through (iii) above, the amounts shall be expressed as a dollar amount per
Single Certificate of the relevant Class.

          Within a reasonable period of time after the end of each calendar
year, the Trustee shall furnish to the NIMS Insurer and each Person who at any
time during the calendar year was a Holder of a Regular Certificate a statement
containing the information set forth in subclauses (i) through (iii) above,
aggregated for such calendar year or applicable portion thereof during which
such person was a Certificateholder. Such obligation of the Trustee shall be
deemed to have been satisfied to the extent that substantially comparable
information shall be provided by the Trustee pursuant to any requirements of the
Code as from time to time are in force.

          Within a reasonable period of time after the end of each calendar
year, the Trustee shall furnish to the NIMS Insurer and each Person who at any
time during the calendar year was a Holder of a Residual Certificate a statement
setting forth the amount, if any, actually distributed with respect to the
Residual Certificates, as appropriate, aggregated for such calendar year or
applicable portion thereof during which such Person was a Certificateholder.
Such obligation of the Trustee shall be deemed to have been satisfied to the
extent that substantially comparable information shall be prepared by the
Trustee and furnished to such Holders pursuant to the rules and regulations of
the Code as are in force from time to time.

          The Trustee shall, upon request, furnish to each Certificateholder and
the NIMS Insurer, during the term of this Agreement, such periodic, special, or
other reports or information, whether or not provided for herein, as shall be
reasonable with respect to the Certificateholder, or otherwise with respect to
the purposes of this Agreement, all such reports or information to be provided
at the expense of the Certificateholder in accordance with such reasonable and
explicit instructions and directions as the Certificateholder may provide. For
purposes of this Section 4.02, the Trustee's duties are limited to the extent
that the Trustee receives timely reports as required from the Master Servicer.

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          On each Distribution Date the Trustee shall provide Bloomberg
Financial Markets, L.P. ("Bloomberg") CUSIP level factors for each class of
Certificates as of such Distribution Date, using a format and media mutually
acceptable to the Trustee and Bloomberg.

          SECTION 4.03. Remittance Reports and Other Reports to the Trustee;
                        Advances; Payments in Respect of Prepayment Interest
                        Shortfalls.

          (a) On the Master Servicer Reporting Date, the Master Servicer shall
deliver to the Trustee and the NIMS Insurer by telecopy (or by such other means
as the Master Servicer, the Trustee and the NIMS Insurer may agree from time to
time) a Remittance Report with respect to the related Distribution Date. Such
Remittance Report will include (i) the amount of Advances to be made by the
Master Servicer in respect of the related Distribution Date, the aggregate
amount of Advances outstanding after giving effect to such Advances, and the
aggregate amount of Nonrecoverable Advances in respect of such Distribution Date
and (ii) such other information with respect to the Mortgage Loans as the
Trustee may reasonably require to perform the calculations necessary to make the
distributions contemplated by Section 4.01 and to prepare the statements to
Certificateholders contemplated by Section 4.02. The Trustee shall not be
responsible to recompute, recalculate or verify any information provided to it
by the Master Servicer.

          Not later than fifteen days after each Distribution Date, the Master
Servicer shall forward to the Trustee, the NIMS Insurer and the Depositor a
statement prepared by the Master Servicer setting forth the status of the
Collection Account as of the close of business on such Distribution Date and
showing, for the period covered by such statement, the aggregate amount of
deposits into and withdrawals from the Collection Account of each category of
deposit specified in Section 3.04(b) and each category of withdrawal specified
in Section 3.05. Such statement may be in the form of the then current Fannie
Mae Monthly Accounting Report for its Guaranteed Mortgage Pass-Through Program
with appropriate additions and changes, and shall also include information as to
the aggregate of the outstanding Principal Balances of all of the Mortgage Loans
as of the last day of the calendar month immediately preceding such Distribution
Date. Copies of such statement shall be provided by the Trustee to any
Certificateholder and to any Person identified to the Trustee as a prospective
transferee of a Certificate, upon request at the expense of the requesting
party, provided such statement is delivered by the Master Servicer to the
Trustee.

          (b) The amount of Advances to be made by the Master Servicer for any
Distribution Date shall equal, subject to Section 4.03(d), the sum of (i) the
aggregate amount of Monthly Payments (with each interest portion thereof net of
the related Servicing Fee), due on the related Due Date in respect of the
Mortgage Loans, which Monthly Payments were delinquent as of the close of
business on the related Determination Date and (ii) with respect to each REO
Property, which REO Property was acquired during or prior to the related
Prepayment Period and as to which such REO Property an REO Disposition did not
occur during the related Prepayment Period, an amount equal to the excess, if
any, of the Monthly Payments (with each interest portion thereof net of the
related Servicing Fee) that would have been due on the related Due Date in
respect of the related Mortgage Loans, over the net income from such REO
Property transferred to the Distribution Account pursuant to Section 3.13 for
distribution on such Distribution Date.

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          On or before 3:00 p.m. New York time on the Master Servicer Remittance
Date, the Master Servicer shall remit in immediately available funds to the
Trustee for deposit in the Distribution Account an amount equal to the aggregate
amount of Advances, if any, to be made in respect of the Mortgage Loans and REO
Properties for the related Distribution Date either (i) from its own funds or
(ii) from the Collection Account, to the extent of funds held therein for future
distribution (in which case, it will cause to be made an appropriate entry in
the records of Collection Account that amounts held for future distribution have
been, as permitted by this Section 4.03, used by the Master Servicer in
discharge of any such Advance) or (iii) in the form of any combination of (i)
and (ii) aggregating the total amount of Advances to be made by the Master
Servicer with respect to the Mortgage Loans and REO Properties. Any amounts held
for future distribution used by the Master Servicer to make a Advance as
permitted in the preceding sentence or withdrawn by the Master Servicer as
permitted in Section 3.05(a)(vii) in reimbursement of Advances previously made
shall be appropriately reflected in the Master Servicer's records and replaced
by the Master Servicer by deposit in the Collection Account on or before any
future Master Servicer Remittance Date to the extent that the Available Funds
for the related Distribution Date (determined without regard to Advances to be
made on the Master Servicer Remittance Date) shall be less than the total amount
that would be distributed to the Classes of Certificateholders pursuant to
Section 4.01 on such Distribution Date if such amounts held for future
distributions had not been so used to make Advances. The Trustee will provide
notice to the Master Servicer and the NIMS Insurer by telecopy by the close of
business on any Master Servicer Remittance Date in the event that the amount
remitted by the Master Servicer to the Trustee on such date is less than the
Advances required to be made by the Master Servicer for the related Distribution
Date.

          (c) The obligation of the Master Servicer to make such Advances is
mandatory, notwithstanding any other provision of this Agreement but subject to
(d) below, and, with respect to any Mortgage Loan or REO Property, shall
continue until a Final Recovery Determination in connection therewith or the
removal thereof from REMIC I pursuant to any applicable provision of this
Agreement, except as otherwise provided in this Section.

          (d) Notwithstanding anything herein to the contrary, no Advance or
Servicing Advance shall be required to be made hereunder by the Master Servicer
if such Advance or Servicing Advance would, if made, constitute a Nonrecoverable
Advance or Nonrecoverable Servicing Advance. The determination by the Master
Servicer that it has made a Nonrecoverable Advance or a Nonrecoverable Servicing
Advance or that any proposed Advance or Servicing Advance, if made, would
constitute a Nonrecoverable Advance or Nonrecoverable Servicing Advance,
respectively, shall be evidenced by an Officers' Certificate of the Master
Servicer delivered to the Trustee and the NIMS Insurer.

          (e) The Master Servicer shall deliver to the Trustee for deposit into
the Distribution Account on or before 3:00 p.m. New York time on the Master
Servicer Remittance Date from its own funds an amount ("Compensating Interest")
equal to the lesser of (i) the aggregate of the Prepayment Interest Shortfalls
for the related Distribution Date resulting solely from Principal Prepayments
during the related Prepayment Period and (ii) the amount of its aggregate
Servicing Fee for the most recently ended calendar month. The Master Servicer
shall not have the right to reimbursement for any amounts remitted to the
Trustee in respect of Prepayment Interest Shortfalls. Such amounts so remitted
shall be included in the Available Funds and distributed therewith on the

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next Distribution Date. The Master Servicer shall not be obligated to pay any
amounts with respect to Relief Act Interest Shortfalls.

          SECTION 4.04. Allocation of Realized Losses.

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

          (b) All Realized Losses on the Mortgage Loans shall be allocated by
the Trustee on each Distribution Date as follows: first, to Net Monthly Excess
Cashflow; second, to the Class CE Certificates, until the Certificate Principal
Balance thereof has been reduced to zero; third, to the Class M-3 Certificates,
until the Certificate Principal Balance thereof has been reduced to zero;
fourth, to the Class M-2 Certificates, until the Certificate Principal Balance
thereof has been reduced to zero; and fifth, to the Class M-1 Certificates,
until the Certificate Principal Balance thereof has been reduced to zero. All
Realized Losses to be allocated to the Certificate Principal Balances of all
Classes on any Distribution Date shall be so allocated after the actual
distributions to be made on such date as provided above. All references above to
the Certificate Principal Balance of any Class of Certificates shall be to the
Certificate Principal Balance of such Class immediately prior to the relevant
Distribution Date, before reduction thereof by any Realized Losses, in each case
to be allocated to such Class of Certificates, on such Distribution Date.

          Any allocation of Realized Losses to a Mezzanine Certificate on any
Distribution Date shall be made by reducing the Certificate Principal Balance
thereof by the amount so allocated; any allocation of Realized Losses to a Class
CE Certificate shall be made by reducing the amount otherwise payable in respect
thereof pursuant to Section 4.01(a)(4)(vii). No allocations of any Realized
Losses shall be made to the Certificate Principal Balances of the Class A
Certificates or the Class P Certificates.

          As used herein, an allocation of a Realized Loss on a "PRO RATA basis"
among two or more specified Classes of Certificates means an allocation on a PRO
RATA basis, among the various Classes so specified, to each such Class of
Certificates on the basis of their then outstanding Certificate Principal
Balances prior to giving effect to distributions to be made on such Distribution
Date. All Realized Losses and all other losses allocated to a Class of
Certificates hereunder will be

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allocated among the Certificates of such Class in proportion to the Percentage
Interests evidenced thereby.

          (c) All Realized Losses on the Group I Mortgage Loans shall be
allocated by the Trustee on each Distribution Date, first to REMIC I Regular
Interest I-LT1 and REMIC I Regular Interest I-LT1PF, until the Uncertificated
Balance of each such REMIC I Regular Interest has been reduced to zero; provided
however, with respect to the first two Distribution Dates, all Realized Losses
on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular
Interest I-LT1, until the Uncertificated Balance thereof has been reduced to
zero, and all Realized Losses on the Subsequent Group I Mortgage Loans shall be
allocated to REMIC I Regular Interest I-LT1PF until the Uncertificated Principal
Balance thereof has been reduced to zero. All Realized Losses on the Group II
Mortgage Loans shall be allocated by the Trustee on each Distribution Date,
first to REMIC I Regular Interest I-LT2 and REMIC I Regular Interest I-LT2PF,
until the Uncertificated Balance of each such REMIC I Regular Interest has been
reduced to zero; provided however, with respect to the first two Distribution
Dates, all Realized Losses on the Initial Group II Mortgage Loans shall be
allocated to REMIC I Regular Interest I-LT2, until the Uncertificated Balance
thereof has been reduced to zero, and all Realized Losses on the Subsequent
Group II Mortgage Loans shall be allocated to REMIC I Regular Interest I-LT2PF
until the Uncertificated Principal Balance thereof has been reduced to zero.

          (d) All Realized Losses on the Mortgage Loans shall be allocated by
the Trustee on each Distribution Date, first to REMIC II Regular Interest II-LT1
until the Uncertificated Balance thereof has been reduced to zero and then to
REMIC II Regular Interest II-LTS, until the Uncertificated Balance thereof has
been reduced to zero.

          (e) All Realized Losses on the Mortgage Loans shall be allocated by
the Trustee on each Distribution Date to the following REMIC III Regular
Interests in the specified percentages, as follows: first, to Uncertificated
Interest payable to the REMIC III Regular Interest III-LTAA and REMIC III
Regular Interest III-LTZZ up to an aggregate amount equal to the REMIC III
Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the
Uncertificated Balances of the REMIC III Regular Interest III-LTAA and REMIC III
Regular Interest III-LTZZ up to an aggregate amount equal to the REMIC III
Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the
Uncertificated Balances of REMIC III Regular Interest III-LTAA, REMIC III
Regular Interest III- LTM3 and REMIC III Regular Interest III-LTZZ, 98%, 1% and
1%, respectively, until the Uncertificated Balance of REMIC III Regular Interest
III-LTM3 has been reduced to zero; fourth to the Uncertificated Balances of
REMIC III Regular Interest III-LTAA, REMIC III Regular Interest III-LTM2 and
REMIC III Regular Interest III-LTZZ, 98%, 1% and 1%, respectively, until the
Uncertificated Balance of REMIC III Regular Interest III-LTM2 has been reduced
to zero; and fifth to the Uncertificated Balances of REMIC III Regular Interest
III-LTAA, REMIC III Regular Interest III-LTM1 and REMIC III Regular Interest
III-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of
REMIC III Regular Interest III-LTM1 has been reduced to zero.

          SECTION 4.05. Compliance with Withholding Requirements.

          Notwithstanding any other provision of this Agreement, the Trustee
shall comply with all federal withholding requirements respecting payments to
Certificateholders of interest or original

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issue discount that the Trustee reasonably believes are applicable under the
Code. The consent of Certificateholders shall not be required for such
withholding. In the event the Trustee does withhold any amount from interest or
original issue discount payments or advances thereof to any Certificateholder
pursuant to federal withholding requirements, the Trustee shall indicate the
amount withheld to such Certificateholders.

          SECTION 4.06. Commission Reporting.

          (a) The Trustee shall reasonably cooperate with the Depositor in
connection with the Trust's satisfying the reporting requirements under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Trustee
shall prepare on behalf of the Trust any Forms 8-K and 10-K customary for
similar securities as required by the Exchange Act and the Rules and Regulations
of the Securities and Exchange Commission thereunder, and the Depositor shall
sign (or shall cause another entity acceptable to the Securities and Exchange
Commission to sign) and the Trustee shall file (via the Securities and Exchange
Commission's Electronic Data Gathering and Retrieval System) such forms on
behalf of the Depositor (or such other entity). The Depositor hereby grants to
the Trustee a limited power of attorney to execute any Form 8-K and file each
such document on behalf of the Depositor. Such power of attorney shall continue
until the earlier of (i) receipt by the Trustee from the Depositor of written
termination of such power of attorney and (ii) the termination of the Trust.
Notwithstanding anything herein to the contrary, the Depositor, and not the
Trustee, shall be responsible for executing each Form 10-K filed on behalf of
the Trust.

          (b) Each Form 8-K shall be filed by the Trustee within 15 days after
each Distribution Date, with a copy of the statement to the Certificateholders
for such Distribution Date as an exhibit thereto. Prior to March 30th of each
year (or such earlier date as may be required by the Exchange Act and the Rules
and Regulations of the Securities and Exchange Commission), the Trustee shall
file a Form 10-K, in substance as required by applicable law or applicable
Securities and Exchange Commission staff's interpretations. Such Form 10-K shall
include as exhibits the Master Servicer's annual statement of compliance
described under Section 3.19 and the accountant's report described under Section
3.20, in each case to the extent they have been timely delivered to the Trustee.
If they are not so timely delivered, the Trustee shall file an amended Form 10-K
including such documents as exhibits reasonably promptly after they are
delivered to the Trustee. The Trustee shall have no liability with respect to
any failure to properly prepare or file such periodic reports resulting from or
relating to the Trustee's inability or failure to obtain any information not
resulting from its own negligence or willful misconduct. The Form 10-K shall
also include a certification in the form attached hereto as Exhibit L-1 (the
"Certification"), which shall be signed by the senior officer of the Depositor
in charge of securitization.

          (c) In addition, the Trustee shall sign a certification (in the form
attached hereto as Exhibit L-2) for the benefit of the Depositor and its
officers, directors and Affiliates regarding certain aspects of items 1 through
3 of the Certification (provided, however, that the Trustee shall not undertake
an analysis of the accountant's report attached as an exhibit to the Form 10-K).
The Trustee's certification shall be delivered to the Depositor by no later than
March 18th of each year (or if such day is not a Business Day, the immediately
preceding Business Day) and the Depositor shall deliver the Certification to the
Trustee for filing no later than March 20th of each year (or if such day is not
a Business Day, the immediately preceding Business Day).

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          In addition, the Trustee shall indemnify and hold harmless the
Depositor and its officers, directors and Affiliates from and against any
losses, damages, penalties, fines, forfeitures, reasonable and necessary legal
fees and related costs, judgments and other costs and expenses arising out of or
based upon a breach of the Trustee's obligations under this Section 4.06 or the
Trustee's negligence, bad faith or willful misconduct in connection therewith.
The Depositor shall indemnify and hold harmless the Trustee and its officers,
directors and Affiliates from and against any losses, damages, penalties, fines,
forfeitures, reasonable and necessary legal fees and related costs, judgments
and other costs and expenses arising out of or based upon a breach of the
Depositor's obligations under this Section 4.06 or the Depositor's negligence,
bad faith or willful misconduct in connection therewith. If the indemnification
provided for herein is unavailable or insufficient to hold harmless the
Depositor or the Trustee, as applicable, then the other party, in connection
with a breach of its respective obligations under this Section 4.06 or its
respective negligence, bad faith or willful misconduct in connection therewith,
agrees that it shall contribute to the amount paid or payable by the other party
as a result of the losses, claims, damages or liabilities of the other party in
such proportion as is appropriate to reflect the relative fault of the Depositor
on the one hand and the Trustee on the other.

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

          (e) Prior to January 30 of the first year in which the Trustee is able
to do so under applicable law, the Trustee shall file a Form 15 Suspension
Notification with respect to the Trust.

          (f) To the extent that, following the Closing Date, the Depositor
certifies that reports and certifications differing from those required under
this Section 4.06 comply with the reporting requirements under the Exchange Act,
the Trustee hereby agrees that it will reasonably cooperate to amend the
provisions of this Section 4.06 (in accordance with Section 11.01) in order to
comply with such amended reporting requirements and such amendment of this
Section 4.06. Any such amendment may result in the reduction of the reports
filed by the Depositor under the Exchange Act. Notwithstanding the foregoing,
the Trustee shall not be obligated to enter into any amendment pursuant to this
Section that adversely affects its obligations and immunities under this
Agreement.

          SECTION 4.07. Pre-Funding Accounts.

          (a) No later than the Closing Date, the Trustee shall establish and
maintain two segregated trust accounts that are each Eligible Accounts, which
shall be titled "Group I Pre-Funding Account, Deutsche Bank National Trust
Company, as Trustee for the registered holders of Ameriquest Mortgage Securities
Inc., Asset-Backed Pass-Through Certificates, Series 2002-5" (the "Group I
Pre-Funding Account") and "Group II Pre-Funding Account, Deutsche Bank National
Trust Company, as Trustee for the registered holders of Ameriquest Mortgage
Securities Inc., Asset- Backed Pass-Through Certificates, Series 2002-5" (the
"Group II Pre-Funding Account"). The Trustee shall, promptly upon receipt,
deposit in the applicable Pre-Funding Account and retain therein the Original
Group I Pre-Funded Amount and the Original Group II Pre-Funding Account, as
applicable, remitted on the Closing Date to the Trustee by the Depositor. Funds
deposited in the Pre-Funding Accounts shall be held in trust by the Trustee for
the Certificateholders for the uses and purposes set forth herein.

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          (b) The Trustee shall invest funds deposited in the Pre-Funding
Accounts in Permitted Investments of the kind described in clauses (i), (v) or
(vi) of the definition of Permitted Investments, as directed by the Master
Servicer, with a maturity date no later than the second Business Day preceding
each Distribution Date. For federal income tax purposes, the holder of the
largest Percentage Interest of the Residual Certificates shall be the owner of
the Pre-Funding Accounts and shall report all items of income, deduction, gain
or loss arising therefrom. All income and gain realized from investment of funds
deposited in the Pre-Funding Accounts shall be transferred to the applicable
Interest Coverage Account (as specified in Section 4.08) on the Business Day
immediately preceding each Distribution Date. The Master Servicer shall deposit
in the Pre- Funding Accounts the amount of any net loss incurred in respect of
any such Permitted Investment immediately upon realization of such loss without
any right of reimbursement therefor. The Pre- Funding Accounts will not be an
asset of any Trust REMIC.

          (c) Amounts on deposit in the Pre-Funding Accounts shall be withdrawn
by the Trustee as follows:

          (i) On any Subsequent Transfer Date, the Trustee shall withdraw from
     the related Pre-Funding Account an amount equal to 100% of the Stated
     Principal Balances of the Subsequent Mortgage Loans transferred and
     assigned to the Trustee for deposit in the Mortgage Pool on such Subsequent
     Transfer Date and pay such amount to or upon the order of the Depositor
     upon satisfaction of the conditions set forth in Section 2.10 with respect
     to such transfer and assignment;

          (ii) if the amount on deposit in the related Pre-Funding Account has
     not been reduced to zero during the Funding Period, on the day immediately
     following the termination of the Funding Period, the Trustee shall deposit
     into the Distribution Account any amounts remaining in the related
     Pre-Funding Account, net of any gain realized from the investment of funds
     on deposit therein to the extent not previously paid to the related
     Interest Coverage Account, for distribution in accordance with the terms
     hereof;

          (iii) to withdraw any amount not required to be deposited in the
     Pre-Funding Accounts or deposited therein in error;

          (iv) to distribute to the Group I Interest Coverage Account or the
     Group II Interest Coverage Account, as applicable, any income and gain
     realized from the investment of funds in the Group I Pre-Funding Account or
     the Group II Pre-Funding Account, as applicable; and

          (v) to clear and terminate the Pre-Funding Accounts upon the earlier
     to occur of (A) the day immediately following the end of the Funding Period
     and (B) the termination of this Agreement, with any amounts remaining on
     deposit therein being paid to the Holders of the Certificates then entitled
     to distributions in respect of principal.

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          SECTION 4.08. Interest Coverage Accounts.

          (a) No later than the Closing Date, the Trustee shall establish and
maintain two segregated trust accounts that are Eligible Accounts, which shall
be titled "Group I Interest Coverage Account, Deutsche Bank National Trust
Company, as Trustee for the registered holders of Ameriquest Mortgage Securities
Inc., Asset-Backed Pass-Through Certificates, Series 2002-5" (the "Group I
Interest Coverage Account") and "Group II Interest Coverage Account, Deutsche
Bank National Trust Company, as Trustee for the registered holders of Ameriquest
Mortgage Securities Inc., Asset-Backed Pass-Through Certificates, Series 2002-5"
(the "Group II Interest Coverage Account"). The Trustee shall, promptly upon
receipt, deposit in the applicable Interest Coverage Account and retain therein
the Group I Interest Coverage Amount and the Group II Interest Coverage Amount,
as applicable, remitted on the Closing Date to the Trustee by the Depositor.
Funds deposited in the Interest Coverage Accounts shall be held in trust by the
Trustee for the Certificateholders for the uses and purposes set forth herein

          (b) The Trustee shall invest funds deposited in the Interest Coverage
Accounts in Permitted Investments of the kind described in clauses (i), (v) or
(vi) of the definition of Permitted Investments, as directed by the Master
Servicer, with a maturity date no later than the second Business Day preceding
each Distribution Date. For federal income tax purposes, the holder of the
largest Percentage Interest of the Residual Certificates shall be the owner of
the Interest Coverage Accounts and shall report all items of income, deduction,
gain or loss arising therefrom. At no time will the Interest Coverage Accounts
be an asset of any Trust REMIC. All income and gain realized from investment of
funds deposited in the Interest Coverage Accounts shall be for the sole and
exclusive benefit of the Master Servicer and shall be remitted by the Trustee to
the Master Servicer on the first Business Day following each Distribution Date.
The Master Servicer shall deposit in the Interest Coverage Accounts the amount
of any net loss incurred in respect of any such Permitted Investment immediately
upon realization of such loss.

          (c) On each Distribution Date during the Funding Period and on the
Distribution Date immediately following the end of the Funding Period, the
Trustee shall withdraw from the Interest Coverage Accounts and deposit in the
Distribution Account an amount equal to 30 days' interest on the excess, if any,
of the Group I Original Pre-Funded Amount or Group II Original Pre- Funded
Amount, as applicable, over the aggregate Principal Balance of Subsequent Group
I Mortgage Loans or Subsequent Group II Mortgage Loans, as applicable, that both
(i) had a Due Date during the Due Period relating to such Distribution Date and
(ii) had a Subsequent Cut-off Date prior to the first day of the month in which
such Distribution Date occurs, at a per annum rate equal to the Pass-Through
Rate of the Offered Certificates for such Distribution Date, with the
Pass-Through Rate on the Class AV Certificates and the Mezzanine Certificates,
solely for the purposes of the foregoing calculation, each being multiplied by a
fraction, the numerator of which is the actual number of days in the Accrual
Period for such Class for such Distribution Date, and the denominator of which
is 30. Such withdrawal and deposit shall be treated as a contribution of cash by
the Master Servicer to REMIC I. Immediately following any such withdrawal and
deposit, and immediately following the conveyance of any Subsequent Mortgage
Loans to the Trust on any Subsequent Transfer Date, the Trustee shall withdraw
from the Interest Coverage Accounts and remit to the Master Servicer or its
designee an amount equal to the excess, if any, of the amount remaining in the
Interest Coverage Accounts over the amount that would be required to be
withdrawn therefrom

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(assuming sufficient funds therein) pursuant to the second preceding sentence on
each subsequent Distribution Date, if any, that will occur during the Funding
Period or that will be the Distribution Date immediately following the end of
the Funding Period, if no Subsequent Mortgage Loans were acquired by the Trust
Fund after the end of the Prepayment Period relating to the current Distribution
Date (assuming that LIBOR remains constant at the level of LIBOR applicable to
the calculation of the Pass-Through Rate for the Class AV Certificates and the
Mezzanine Certificates for the current Distribution Date).

          (d) Upon the earlier of (i) the Distribution Date immediately
following the end of the Funding Period, (ii) the reduction of the Certificate
Principal Balance of the Class A Certificates and the Mezzanine Certificates to
zero or (iii) the termination of this Agreement in accordance with Section 9.01,
any amount remaining on deposit in the Interest Coverage Accounts after
distributions pursuant to paragraph (c) and (d) above shall be withdrawn by the
Trustee and paid to the Depositor or its designee.

          SECTION 4.09. Net WAC Rate Carryover Reserve Account.

          (a) No later than the Closing Date, the Trustee shall establish and
maintain with itself, as agent for the Trustee, a separate, segregated trust
account titled, "Net WAC Rate Carryover Reserve Account, Deutsche Bank National
Trust Company, as Trustee, in trust for the registered holders of Ameriquest
Mortgage Securities Inc., Asset-Backed Pass-Through Certificates, Series
2002-5." On the Closing Date, the Depositor will deposit, or cause to be
deposited, into the Net WAC Rate Carryover Reserve Account $1,000. In addition,
the amount in the Net WAC Rate Carryover Reserve Account shall include by any
payments received by the Trustee under the Cap Contracts and deposited into the
Net WAC Rate Carryover Reserve Account for the benefit of the Class AV
Certificates and the Mezzanine Certificates..

          (b) On each Distribution Date as to which there is a Net WAC Rate
Carryover Amount payable to the Class A Certificates, the Class S Certificates
or the Mezzanine Certificates, the Trustee has been directed by the Class CE
Certificateholders to, and therefore will, deposit into the Net WAC Rate
Carryover Reserve Account the amount of such Net WAC Rate Carryover Amount,
rather than distributing such amounts to the Class CE Certificateholders. On
each such Distribution Date, the Trustee shall hold all such amounts for the
benefit of the Holders of the Class A Certificates, the Class S Certificates and
the Mezzanine Certificates, and will distribute such amounts to the Holders of
the Class A Certificates, the Class S Certificates and the Mezzanine
Certificates in the amounts and priorities set forth in Section 4.01(a). If no
Net WAC Rate Carryover Amounts are payable on a Distribution Date, the Trustee
shall deposit into the Net WAC Rate Carryover Reserve Account on behalf of the
Class CE Certificateholders, from amounts otherwise distributable to the Class
CE Certificateholders, an amount such that when added to other amounts already
on deposit in the Net WAC Rate Carryover Reserve Account, the aggregate amount
on deposit therein is equal to $1,000.

          (c) For federal and state income tax purposes, the Class CE
Certificateholders will be deemed to be the owners of the Net WAC Rate Carryover
Reserve Account and all amounts deposited into the Net WAC Rate Carryover
Reserve Account (other than the initial deposit therein of $1,000) shall be
treated as amounts distributed by REMIC III to the Holders of the Class CE

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Certificates. Upon the termination of the Trust, or the payment in full of the
Class A Certificates, the Class S Certificates and the Mezzanine Certificates,
all amounts remaining on deposit in the Net WAC Rate Carryover Reserve Account
will be released by the Trust and distributed to the Class CE Certificateholders
or their designees. The Net WAC Rate Carryover Reserve Account will be part of
the Trust but not part of any REMIC and any payments to the Holders of the Class
A Certificates, the Class S Certificates or the Mezzanine Certificates of Net
WAC Rate Carryover Amounts will not be payments with respect to a "regular
interest" in a REMIC within the meaning of Code Section 860(G)(a)(1).

          (d) By accepting a Class CE Certificate, each Class CE
Certificateholder hereby agrees to direct the Trustee, and the Trustee hereby is
directed, to deposit into the Net WAC Rate Carryover Reserve Account the amounts
described above on each Distribution Date as to which there is any Net WAC Rate
Carryover Amount rather than distributing such amounts to the Class CE
Certificateholders. By accepting a Class CE Certificate, each Class CE
Certificateholder further agrees that such direction is given for good and
valuable consideration, the receipt and sufficiency of which is acknowledged by
such acceptance.

          (e) At the written direction of the Holders of a majority in
Percentage Interest in the Class CE Certificates, the Trustee shall direct any
depository institution maintaining the Net WAC Rate Carryover Reserve Account to
invest the funds in such account in one or more Permitted Investments bearing
interest or sold at a discount, and maturing, unless payable on demand, (i) no
later than the Business Day immediately preceding the date on which such funds
are required to be withdrawn from such account pursuant to this Agreement, if a
Person other than the Trustee or an Affiliate manages or advises such
investment, and (ii) no later than the date on which such funds are required to
be withdrawn from such account pursuant to this Agreement, if the Trustee or an
Affiliate manages or advises such investment. If no investment direction of the
Holders of a majority in Percentage Interest in the Class CE Certificates with
respect to the Net WAC Rate Carryover Reserve Account is received by the
Trustee, the Trustee shall invest the funds in the Deutsche Cash Management Fund
541 so long as it is a Permitted Investment. Interest earned on such investment
shall be deposited into the Net WAC Rate Carryover Reserve Account.

          (f) For federal tax return and information reporting, the right of the
Holders of the Class A Certificates, the Class S Certificates and the Mezzanine
Certificates to receive payments from the Net WAC Rate Carryover Reserve Account
in respect of any Net Wac Rate Carryover Amount shall be assigned a value of
zero.

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                                    ARTICLE V

                                THE CERTIFICATES

          SECTION 5.01. The Certificates.

          (a) The Certificates in the aggregate will represent the entire
beneficial ownership interest in the Mortgage Loans and all other assets
included in REMIC I. At the Closing Date, the aggregate Certificate Principal
Balance of the Certificates will equal the aggregate Stated Principal Balance of
the Mortgage Loans.

          The Certificates will be substantially in the forms annexed hereto as
Exhibits A-1 through A-12. The Certificates of each Class will be issuable in
registered form only, in denominations of authorized Percentage Interests as
described in the definition thereof. Each Certificate will share ratably in all
rights of the related Class.

          Upon original issue, the Certificates shall be executed and delivered
by the Trustee, and the Trustee shall cause the Certificates to be authenticated
by the Certificate Registrar to or upon the order of the Depositor. The
Certificates shall be executed and attested by manual or facsimile signature on
behalf of the Trustee by an authorized signatory. Certificates bearing the
manual or facsimile signatures of individuals who were at any time the proper
officers of the Trustee shall bind the Trustee notwithstanding that such
individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Certificates or did not hold such offices at
the date of such Certificates. No Certificate shall be entitled to any benefit
under this Agreement or be valid for any purpose, unless there appears on such
Certificate a certificate of authentication substantially in the form provided
herein executed by the Certificate Registrar by manual signature, and such
certificate of authentication shall be conclusive evidence, and the only
evidence, that such Certificate has been duly authenticated and delivered
hereunder. All Certificates shall be dated the date of their authentication.

          (b) The Offered Certificates shall initially be issued as one or more
Certificates held by the Book-Entry Custodian or, if appointed to hold such
Certificates as provided below, the Depository and registered in the name of the
Depository or its nominee and, except as provided below, registration of such
Certificates may not be transferred by the Trustee except to another Depository
that agrees to hold such Certificates for the respective Certificate Owners with
Ownership Interests therein. The Certificate Owners shall hold their respective
Ownership Interests in and to such Certificates through the book-entry
facilities of the Depository and, except as provided below, shall not be
entitled to definitive, fully registered Certificates ("Definitive
Certificates") in respect of such Ownership Interests. All transfers by
Certificate Owners of their respective Ownership Interests in the Book-Entry
Certificates shall be made in accordance with the procedures established by the
Depository Participant or brokerage firm representing such Certificate Owner.
Each Depository Participant shall only transfer the Ownership Interests in the
Book-Entry Certificates of Certificate Owners it represents or of brokerage
firms for which it acts as agent in accordance with the Depository's normal
procedures. The Trustee is hereby initially appointed as the Book-Entry
Custodian and hereby agrees to act as such in accordance herewith and in
accordance with the agreement that it has with the Depository authorizing it to
act as such. The Book-Entry

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Custodian may, and if it is no longer qualified to act as such, the Book-Entry
Custodian shall, appoint, by a written instrument delivered to the Depositor,
the Master Servicer, the Trustee (if the Trustee is not the Book-Entry
Custodian) and any other transfer agent (including the Depository or any
successor Depository) to act as Book-Entry Custodian under such conditions as
the predecessor Book-Entry Custodian and the Depository or any successor
Depository may prescribe, provided that the predecessor Book-Entry Custodian
shall not be relieved of any of its duties or responsibilities by reason of any
such appointment of other than the Depository. If the Trustee resigns or is
removed in accordance with the terms hereof, the Trustee or, if it so elects,
the Depository shall immediately succeed to its predecessor's duties as
Book-Entry Custodian. The Depositor shall have the right to inspect, and to
obtain copies of, any Certificates held as Book-Entry Certificates by the
Book-Entry Custodian.

          The Trustee, the Master Servicer and the Depositor may for all
purposes (including the making of payments due on the Book-Entry Certificates)
deal with the Depository as the authorized representative of the Certificate
Owners with respect to the Book-Entry Certificates for the purposes of
exercising the rights of Certificateholders hereunder. The rights of Certificate
Owners with respect to the Book-Entry Certificates shall be limited to those
established by law and agreements between such Certificate Owners and the
Depository Participants and brokerage firms representing such Certificate
Owners. Multiple requests and directions from, and votes of, the Depository as
Holder of the Book-Entry Certificates with respect to any particular matter
shall not be deemed inconsistent if they are made with respect to different
Certificate Owners. The Trustee may establish a reasonable record date in
connection with solicitations of consents from or voting by Certificateholders
and shall give notice to the Depository of such record date.

          If (i)(A) the Depositor advises the Trustee in writing that the
Depository is no longer willing or able to properly discharge its
responsibilities as Depository, and (B) the Depositor is unable to locate a
qualified successor, (ii) the Depositor at its option advises the Trustee in
writing that it elects to terminate the book-entry system through the Depository
or (iii) after the occurrence of a Master Servicer Event of Default, Certificate
Owners representing in the aggregate not less than 51% of the Ownership
Interests of the Book-Entry Certificates advise the Trustee through the
Depository, in writing, that the continuation of a book-entry system through the
Depository is no longer in the best interests of the Certificate Owners, the
Trustee shall notify all Certificate Owners, through the Depository, of the
occurrence of any such event and of the availability of Definitive Certificates
to Certificate Owners requesting the same. Upon surrender to the Trustee of the
Book- Entry Certificates by the Book-Entry Custodian or the Depository, as
applicable, accompanied by registration instructions from the Depository for
registration of transfer, the Trustee shall issue the Definitive Certificates.
Such Definitive Certificates will be issued in minimum denominations of $25,000,
except that any beneficial ownership that was represented by a Book-Entry
Certificate in an amount less than $25,000 immediately prior to the issuance of
a Definitive Certificate shall be issued in a minimum denomination equal to the
amount represented by such Book-Entry Certificate. None of the Depositor, the
Master Servicer or the Trustee shall be liable for any delay in the delivery of
such instructions and may conclusively rely on, and shall be protected in
relying on, such instructions. Upon the issuance of Definitive Certificates all
references herein to obligations imposed upon or to be performed by the
Depository shall be deemed to be imposed upon and performed by the Trustee, to
the extent applicable with respect to such Definitive Certificates, and the
Trustee shall recognize the Holders of the Definitive Certificates as
Certificateholders hereunder.

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          SECTION 5.02. Registration of Transfer and Exchange of Certificates.

          (a) The Trustee shall cause to be kept at one of the offices or
agencies to be appointed by the Trustee in accordance with the provisions of
Section 8.12 a Certificate Register for the Certificates in which, subject to
such reasonable regulations as it may prescribe, the Trustee shall provide for
the registration of Certificates and of transfers and exchanges of Certificates
as herein provided. The Trustee will initially serve as Certificate Registrar
for the purpose of registering Certificates and transfers and exchanges of
Certificates as herein provided. The Certificate Registrar may appoint, by a
written instrument delivered to the Master Servicer and the Depositor, any other
bank or trust company to act as Certificate Registrar under such conditions as
the predecessor Certificate Registrar may prescribe, provided that the
predecessor Certificate Registrar shall not be relieved of any of its duties or
responsibilities hereunder by reason of such appointment. If the Trustee shall
at any time not be the Certificate Registrar, the Trustee shall have and
maintain the right to inspect the Certificate Register or to obtain a copy
thereof at all reasonable times, and to rely conclusively upon a certificate of
the Certificate Registrar as to the information set forth in the Certificate
Register.

          (b) No transfer of any Class CE Certificate, Class P Certificate or
Residual Certificate shall be made unless that transfer is made pursuant to an
effective registration statement under the Securities Act of 1933, as amended
(the "1933 Act"), and an effective registration or qualification under
applicable state securities laws, or is made in a transaction that does not
require such registration or qualification. In the event that such a transfer of
a Class CE Certificate, Class P Certificate or Residual Certificate is to be
made without registration or qualification (other than in connection with the
initial transfer of any such Certificate by the Depositor to an affiliate of the
Depositor), the Trustee and the Certificate Registrar shall each require receipt
of: (i) if such transfer is purportedly being made in reliance upon Rule 144A
under the 1933 Act, written certifications from the Certificateholder desiring
to effect the transfer and from such Certificateholder's prospective transferee,
substantially in the forms attached hereto as Exhibit F-1; and (ii) in all other
cases, an Opinion of Counsel satisfactory to it that such transfer may be made
without such registration (which Opinion of Counsel shall not be an expense of
the Depositor, the Trustee, the Master Servicer, in its capacity as such, or the
Trust Fund), together with copies of the written certification(s) of the
Certificateholder desiring to effect the transfer and/or such
Certificateholder's prospective transferee upon which such Opinion of Counsel is
based, if any. None of the Depositor, the Certificate Registrar or the Trustee
is obligated to register or qualify the Class CE Certificates, the Class P
Certificates or the Residual Certificates under the 1933 Act or any other
securities laws or to take any action not otherwise required under this
Agreement to permit the transfer of such Certificates without registration or
qualification. Any Certificateholder desiring to effect the transfer of a Class
CE Certificate, a Class P Certificate or a Residual Certificate shall, and does
hereby agree to, indemnify the Trustee, the Depositor, the Certificate Registrar
and the Master Servicer against any liability that may result if the transfer is
not so exempt or is not made in accordance with such federal and state laws.

          (c) No transfer of a Class CE Certificate, Class P Certificate or
Residual Certificate or any interest therein shall be made to any Plan subject
to ERISA or Section 4975 of the Code, any Person acting, directly or indirectly,
on behalf of any such Plan or any Person acquiring such Certificates with "Plan
Assets" of a Plan within the meaning of the Department of Labor

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regulation promulgated at 29 C.F.R. ss. 2510.3-101 ("Plan Assets"), as certified
by such transferee in the form of Exhibit G, unless the Depositor, the Trustee
and the Master Servicer are provided with an Opinion of Counsel which
establishes to the satisfaction of the Depositor, the Trustee and the Master
Servicer that the purchase of such Certificates is permissible under applicable
law, will not constitute or result in any prohibited transaction under ERISA or
Section 4975 of the Code and will not subject the Depositor, the Master
Servicer, the NIMS Insurer, the Trustee or the Trust Fund to any obligation or
liability (including obligations or liabilities under ERISA or Section 4975 of
the Code) in addition to those undertaken in this Agreement, which Opinion of
Counsel shall not be an expense of the Depositor, the Master Servicer, the NIMS
Insurer, the Trustee or the Trust Fund. Neither an Opinion of Counsel nor any
certification will be required in connection with the initial transfer of any
such Certificate by the Depositor to an affiliate of the Depositor (in which
case, the Depositor or any affiliate thereof shall have deemed to have
represented that such affiliate is not a Plan or a Person investing Plan Assets)
and the Trustee shall be entitled to conclusively rely upon a representation
(which, upon the request of the Trustee, shall be a written representation) from
the Depositor of the status of such transferee as an affiliate of the Depositor.

          Each beneficial owner of a Mezzanine Certificates or any interest
therein shall be deemed to have represented, by virtue of its acquisition or
holding of that certificate or interest therein, that either (i) it is not a
Plan investor, (ii) it has acquired and is holding such Mezzanine Certificates
in reliance on the Underwriters' Exemption, and that it understands that there
are certain conditions to the availability of the Underwriters' Exemption,
including that the Mezzanine Certificates must be rated, at the time of
purchase, not lower than "BBB-" (or its equivalent) by Moody's, Fitch or S&P or
(iii) (1) it is an insurance company, (2) the source of funds used to acquire or
hold the certificate or interest therein is an "insurance company general
account," as such term is defined in PTCE 95-60, and (3) the conditions in
Sections I and III of PTCE 95-60 have been satisfied.

          If any Class CE Certificate, Class P Certificate or Residual
Certificate or any interest therein is acquired or held in violation of the
provisions of the preceding paragraph, the next preceding permitted beneficial
owner will be treated as the beneficial owner of that Certificate retroactive to
the date of transfer to the purported beneficial owner. Any purported beneficial
owner whose acquisition or holding of any such Certificate or interest therein
was effected in violation of the provisions of the preceding paragraph shall
indemnify and hold harmless the Depositor, the Master Servicer, the Trustee, the
NIMS Insurer and the Trust Fund from and against any and all liabilities,
claims, costs or expenses incurred by those parties as a result of that
acquisition or holding.

          (d)(i) Each Person who has or who acquires any Ownership Interest in a
Residual Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions and to
have irrevocably authorized the Certificate Registrar or its designee under
clause (iii)(A) below to deliver payments to a Person other than such Person and
to negotiate the terms of any mandatory sale under clause (iii)(B) below and to
execute all instruments of Transfer and to do all other things necessary in
connection with any such sale. The rights of each Person acquiring any Ownership
Interest in a Residual Certificate are expressly subject to the following
provisions:

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          (A) Each Person holding or acquiring any Ownership Interest in a
     Residual Certificate shall be a Permitted Transferee and shall promptly
     notify the Certificate Registrar of any change or impending change in its
     status as a Permitted Transferee.

          (B) In connection with any proposed Transfer of any Ownership Interest
     in a Residual Certificate, the Certificate Registrar shall require delivery
     to it and shall not register the Transfer of any Residual Certificate until
     its receipt of an affidavit and agreement (a "Transfer Affidavit and
     Agreement"), in the form attached hereto as Exhibit F-2 from the proposed
     Transferee, in form and substance satisfactory to the Certificate
     Registrar, representing and warranting, among other things, that such
     Transferee is a Permitted Transferee, that it is not acquiring its
     Ownership Interest in the Residual Certificate that is the subject of the
     proposed Transfer as a nominee, trustee or agent for any Person that is not
     a Permitted Transferee, that for so long as it retains its Ownership
     Interest in a Residual Certificate, it will endeavor to remain a Permitted
     Transferee, and that it has reviewed the provisions of this Section 5.02(d)
     and agrees to be bound by them.

          (C) Notwithstanding the delivery of a Transfer Affidavit and Agreement
     by a proposed Transferee under clause (B) above, if a Responsible Officer
     of the Certificate Registrar who is assigned to this transaction has actual
     knowledge that the proposed Transferee is not a Permitted Transferee, no
     Transfer of an Ownership Interest in a Residual Certificate to such
     proposed Transferee shall be effected.

          (D) Each Person holding or acquiring any Ownership Interest in a
     Residual Certificate shall agree (x) to require a Transfer Affidavit and
     Agreement from any other Person to whom such Person attempts to transfer
     its Ownership Interest in a Residual Certificate and (y) not to transfer
     its Ownership Interest unless it provides a Transferor Affidavit (in the
     form attached hereto as Exhibit F-2), to the Certificate Registrar stating
     that, among other things, it has no actual knowledge that such other Person
     is not a Permitted Transferee.

          (E) Each Person holding or acquiring an Ownership Interest in a
     Residual Certificate, by purchasing an Ownership Interest in such
     Certificate, agrees to give the Certificate Registrar written notice that
     it is a "pass-through interest holder" within the meaning of temporary
     Treasury regulation Section 1.67-3T(a)(2)(i)(A) immediately upon acquiring
     an Ownership Interest in a Residual Certificate, if it is, or is holding an
     Ownership Interest in a Residual Certificate on behalf of, a "pass-through
     interest holder."

          (ii) The Certificate Registrar will register the Transfer of any
Residual Certificate only if it shall have received the Transfer Affidavit and
Agreement and all of such other documents as shall have been reasonably required
by the Certificate Registrar as a condition to such registration. In addition,
no Transfer of a Residual Certificate shall be made unless the Certificate
Registrar shall have received a representation letter from the Transferee of
such Certificate to the effect that such Transferee is a Permitted Transferee.

          (iii)(A) If any purported Transferee shall become a Holder of a
Residual Certificate in violation of the provisions of this Section 5.02(d),
then the last preceding Permitted Transferee

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shall be restored, to the extent permitted by law, to all rights as holder
thereof retroactive to the date of registration of such Transfer of such
Residual Certificate. The Certificate Registrar shall be under no liability to
any Person for any registration of Transfer of a Residual Certificate that is in
fact not permitted by this Section 5.02(d) or for making any payments due on
such Certificate to the holder thereof or for taking any other action with
respect to such holder under the provisions of this Agreement.

          (B) If any purported Transferee shall become a holder of a Residual
     Certificate in violation of the restrictions in this Section 5.02(d) and to
     the extent that the retroactive restoration of the rights of the holder of
     such Residual Certificate as described in clause (iii)(A) above shall be
     invalid, illegal or unenforceable, then the Certificate Registrar shall
     have the right, without notice to the holder or any prior holder of such
     Residual Certificate, to sell such Residual Certificate to a purchaser
     selected by the Certificate Registrar on such terms as the Certificate
     Registrar may choose. Such purported Transferee shall promptly endorse and
     deliver each Residual Certificate in accordance with the instructions of
     the Certificate Registrar. Such purchaser may be the Certificate Registrar
     itself or any Affiliate of the Certificate Registrar. The proceeds of such
     sale, net of the commissions (which may include commissions payable to the
     Certificate Registrar or its Affiliates), expenses and taxes due, if any,
     will be remitted by the Certificate Registrar to such purported Transferee.
     The terms and conditions of any sale under this clause (iii)(B) shall be
     determined in the sole discretion of the Certificate Registrar, and the
     Certificate Registrar shall not be liable to any Person having an Ownership
     Interest in a Residual Certificate as a result of its exercise of such
     discretion.

          (iv) The Trustee shall make available to the Internal Revenue Service
and those Persons specified by the REMIC Provisions all information necessary to
compute any tax imposed (A) as a result of the Transfer of an Ownership Interest
in a Residual Certificate to any Person who is a Disqualified Organization,
including the information described in Treasury regulations sections
1.860D-1(b)(5) and 1.860E-2(a)(5) with respect to the "excess inclusions" of
such Residual Certificate and (B) as a result of any regulated investment
company, real estate investment trust, common trust fund, partnership, trust,
estate or organization described in Section 1381 of the Code that holds an
Ownership Interest in a Residual Certificate having as among its record holders
at any time any Person which is a Disqualified Organization. Reasonable
compensation for providing such information may be accepted by the Trustee.

          (v) The provisions of this Section 5.02(d) set forth prior to this
subsection (v) may be modified, added to or eliminated, provided that there
shall have been delivered to the Trustee at the expense of the party seeking to
modify, add to or eliminate any such provision the following:

          (A) written notification from each Rating Agency to the effect that
     the modification, addition to or elimination of such provisions will not
     cause such Rating Agency to downgrade its then-current ratings of any Class
     of Certificates; and

          (B) an Opinion of Counsel, in form and substance satisfactory to the
     Trustee, to the effect that such modification of, addition to or
     elimination of such provisions will not cause any Trust REMIC to cease to
     qualify as a REMIC and will not cause any Trust

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     REMIC, as the case may be, to be subject to an entity-level tax caused by
     the Transfer of any Residual Certificate to a Person that is not a
     Permitted Transferee or (y) a Person other than the prospective transferee
     to be subject to a REMIC-tax caused by the Transfer of a Residual
     Certificate to a Person that is not a Permitted Transferee.

          The Trustee shall forward to the NIMS Insurer a copy of the items
delivered to it pursuant to (A) and (B) above.

          (e) Subject to the preceding subsections, upon surrender for
registration of transfer of any Certificate at any office or agency of the
Trustee maintained for such purpose pursuant to Section 8.12, the Trustee shall
execute and the Certificate Registrar shall authenticate and deliver, in the
name of the designated Transferee or Transferees, one or more new Certificates
of the same Class of a like aggregate Percentage Interest.

          (f) At the option of the Holder thereof, any Certificate may be
exchanged for other Certificates of the same Class with authorized denominations
and a like aggregate Percentage Interest, upon surrender of such Certificate to
be exchanged at any office or agency of the Trustee maintained for such purpose
pursuant to Section 8.12. Whenever any Certificates are so surrendered for
exchange the Trustee shall execute and cause the Certificate Registrar to
authenticate and deliver the Certificates which the Certificateholder making the
exchange is entitled to receive. Every Certificate presented or surrendered for
transfer or exchange shall (if so required by the Trustee) be duly endorsed by,
or be accompanied by a written instrument of transfer in the form satisfactory
to the Trustee and the Certificate Registrar duly executed by, the Holder
thereof or his attorney duly authorized in writing. In addition, with respect to
each Class R Certificate, the Holder thereof may exchange, in the manner
described above, such Class R Certificate for three separate Certificates, each
representing such Holder's respective Percentage Interest in the Class R-1
Interest, the Class R-2 Interest and the Class R-3 Interest, respectively, in
each case that was evidenced by the Class R Certificate being exchanged.

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

          (h) All Certificates surrendered for transfer and exchange shall be
canceled and destroyed by the Certificate Registrar in accordance with its
customary procedures.

          (i) The Trustee will cause the Certificate Registrar (unless the
Trustee is acting as Certificate Registrar) to provide notice to the Trustee of
each transfer of a Certificate and to provide the Trustee with an updated copy
of the Certificate Register on the first Business Day in January and June of
each year, commencing in June 2003.

          (j) Any attempted or purported transfer of any Certificate in
violation of the provisions of Section 5.02(c) hereof shall be void ab initio
and such Certificate shall be considered to have been held continuously by the
prior permitted Holder.

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          SECTION 5.03. Mutilated, Destroyed, Lost or Stolen Certificates.

          If (i) any mutilated Certificate is surrendered to the Trustee or the
Certificate Registrar, or the Trustee and the Certificate Registrar receive
evidence to their satisfaction of the destruction, loss or theft of any
Certificate, and (ii) there is delivered to the Trustee, the NIMS Insurer and
the Certificate Registrar such security or indemnity as may be required by them
to save each of them harmless, then, in the absence of actual knowledge by the
Trustee or the Certificate Registrar that such Certificate has been acquired by
a bona fide purchaser, the Trustee shall execute and deliver, in exchange for or
in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
Certificate of the same Class and of like denomination and Percentage Interest.
Upon the issuance of any new Certificate under this Section, the Trustee may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including
the fees and expenses of the Certificate Registrar) connected therewith. Any
replacement Certificate issued pursuant to this Section shall constitute
complete and indefeasible evidence of ownership in the applicable REMIC created
hereunder, as if originally issued, whether or not the lost, stolen or destroyed
Certificate shall be found at any time.

          SECTION 5.04. Persons Deemed Owners.

          The Depositor, the Master Servicer, the Trustee, the NIMS Insurer, the
Certificate Registrar and any agent of any of them may treat the Person in whose
name any Certificate is registered as the owner of such Certificate for the
purpose of receiving distributions pursuant to Section 4.01 and for all other
purposes whatsoever, and none of the Depositor, the Master Servicer, the
Trustee, the Certificate Registrar, the NIMS Insurer for any agent of any of
them shall be affected by notice to the contrary.

          SECTION 5.05. Certain Available Information.

          On or prior to the date of the first sale of any Class CE Certificate,
Class P Certificate or Residual Certificate to an Independent third party, the
Depositor shall provide to the Trustee ten copies of any private placement
memorandum or other disclosure document used by the Depositor in connection with
the offer and sale of the Class CE Certificates, Class P Certificates or the
Residual Certificates. In addition, if any such private placement memorandum or
disclosure document is revised, amended or supplemented at any time following
the delivery thereof to the Trustee, the Depositor promptly shall inform the
Trustee of such event and shall deliver to the Trustee ten copies of the private
placement memorandum or disclosure document, as revised, amended or
supplemented. The Trustee shall maintain at its Corporate Trust Office and shall
make available free of charge during normal business hours for review by any
Holder of a Certificate or any Person identified to the Trustee as a prospective
transferee of a Certificate, originals or copies of the following items: (i) in
the case of a Holder or prospective transferee of a Class CE Certificate, a
Class P Certificate or a Residual Certificate, the private placement memorandum
or other disclosure document relating to such Certificates, if any, in the form
most recently provided to the Trustee; and (ii) in all cases, (A) this Agreement
and any amendments hereof entered into pursuant to Section 11.01, (B) all
monthly statements required to be delivered to Certificateholders of the
relevant Class pursuant to Section 4.02 since the Closing Date, and all other
notices, reports, statements and written communications delivered to the
Certificateholders of the relevant Class

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pursuant to this Agreement since the Closing Date, (C) all certifications
delivered by a Responsible Officer of the Trustee since the Closing Date
pursuant to Section 10.01(h), (D) any and all Officers' Certificates delivered
to the Trustee by the Master Servicer since the Closing Date to evidence the
Master Servicer's determination that any Advance or Servicing Advance was, or if
made, would be a Nonrecoverable Advance or Nonrecoverable Servicing Advance,
respectively, and (E) any and all Officers' Certificates delivered to the
Trustee by the Master Servicer since the Closing Date pursuant to Section
4.04(a). Copies and mailing of any and all of the foregoing items will be
available from the Trustee upon request at the expense of the person requesting
the same.

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                                   ARTICLE VI

                      THE DEPOSITOR AND THE MASTER SERVICER

          SECTION 6.01. Liability of the Depositor and the Master Servicer.

          The Depositor and the Master Servicer each shall be liable in
accordance herewith only to the extent of the obligations specifically imposed
by this Agreement and undertaken hereunder by the Depositor and the Master
Servicer herein.

          SECTION 6.02. Merger or Consolidation of the Depositor or the Master
                        Servicer.

          Subject to the following paragraph, the Depositor will keep in full
effect its existence, rights and franchises as a corporation under the laws of
the jurisdiction of its incorporation. Subject to the following paragraph, the
Master Servicer will keep in full effect its existence, rights and franchises as
a corporation under the laws of the jurisdiction of its incorporation and its
qualification as an approved conventional seller/servicer for Fannie Mae or
Freddie Mac in good standing. The Depositor and the Master Servicer each will
obtain and preserve its qualification to do business as a foreign corporation in
each jurisdiction in which such qualification is or shall be necessary to
protect the validity and enforceability of this Agreement, the Certificates or
any of the Mortgage Loans and to perform its respective duties under this
Agreement.

          The Depositor or the Master Servicer may be merged or consolidated
with or into any Person, or transfer all or substantially all of its assets to
any Person, in which case any Person resulting from any merger or consolidation
to which the Depositor or the Master Servicer shall be a party, or any Person
succeeding to the business of the Depositor or the Master Servicer, shall be the
successor of the Depositor or the Master Servicer, as the case may be,
hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding; provided, however, that the successor or surviving Person to
the Master Servicer shall be qualified to service mortgage loans on behalf of
Fannie Mae or Freddie Mac; and provided further that the Rating Agencies'
ratings of the Class A Certificates, the Class S Certificates and the Mezzanine
Certificates in effect immediately prior to such merger or consolidation will
not be qualified, reduced or withdrawn as a result thereof (as evidenced by a
letter to such effect from the Rating Agencies).

          SECTION 6.03. Limitation on Liability of the Depositor, the Master
                        Servicer and Others.

          None of the Depositor, the NIMS Insurer, the Master Servicer or any of
the directors, officers, employees or agents of the Depositor or the Master
Servicer shall be under any liability to the Trust Fund or the
Certificateholders for any action taken or for refraining from the taking of any
action in good faith pursuant to this Agreement, or for errors in judgment;
provided, however, that this provision shall not protect the Depositor, the NIMS
Insurer, the Master Servicer or any such person against any breach of
warranties, representations or covenants made herein, or against any specific
liability imposed on the Master Servicer pursuant hereto, or against any
liability which

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would otherwise be imposed by reason of willful misfeasance, bad faith or
negligence in the performance of duties or by reason of reckless disregard of
obligations and duties hereunder. The Depositor, the NIMS Insurer, the Master
Servicer or the Trustee and any director, officer, employee or agent of the
Depositor, the NIMS Insurer, the Master Servicer or the Trustee may rely in good
faith on any document of any kind which, PRIMA FACIE, is properly executed and
submitted by any Person respecting any matters arising hereunder.

          The Depositor, the NIMS Insurer, the Master Servicer and any director,
officer, employee or agent of the Depositor, the NIMS Insurer or the Master
Servicer shall be indemnified and held harmless by the Trust Fund against any
loss, liability or expense incurred in connection with any legal action relating
to this Agreement or the Certificates, other than any loss, liability or expense
relating to any specific Mortgage Loan or Mortgage Loans (except as any such
loss, liability or expense shall be otherwise reimbursable pursuant to this
Agreement) or any loss, liability or expense incurred by reason of willful
misfeasance, bad faith or negligence in the performance of duties hereunder or
by reason of reckless disregard of obligations and duties hereunder. Neither the
Depositor, the NIMS Insurer nor the Master Servicer shall be under any
obligation to appear in, prosecute or defend any legal action unless such action
is related to its respective duties under this Agreement and, in its opinion,
does not involve it in any expense or liability; provided, however, that each of
the Depositor, the NIMS Insurer and the Master Servicer may in its discretion
undertake any such action which it may deem necessary or desirable with respect
to this Agreement and the rights and duties of the parties hereto and the
interests of the Certificateholders hereunder. In such event, unless the
Depositor or the Master Servicer acts without the consent of Holders of
Certificates entitled to at least 51% of the Voting Rights (which consent shall
not be necessary in the case of litigation or other legal action by either to
enforce their respective rights or defend themselves hereunder), the legal
expenses and costs of such action and any liability resulting therefrom (except
any loss, liability or expense incurred by reason of willful misfeasance, bad
faith or negligence in the performance of duties hereunder or by reason of
reckless disregard of obligations and duties hereunder) shall be expenses, costs
and liabilities of the Trust Fund, and the Depositor, the NIMS Insurer and the
Master Servicer shall be entitled to be reimbursed therefor from the Collection
Account as and to the extent provided in Section 3.05, any such right of
reimbursement being prior to the rights of the Certificateholders to receive any
amount in the Collection Account.

          SECTION 6.04. Limitation on Resignation of the Master Servicer.

          The Master Servicer shall not resign from the obligations and duties
hereby imposed on it except (i) upon determination that its duties hereunder are
no longer permissible under applicable law or (ii) with the written consent of
the Trustee, the NIMS Insurer and written confirmation from each Rating Agency
(which confirmation shall be furnished to the Depositor, the NIMS Insurer and
the Trustee) that such resignation will not cause such Rating Agency to reduce
the then current rating of the Class A Certificates, the Class S Certificates or
the Mezzanine Certificates. Any such determination pursuant to clause (i) of the
preceding sentence permitting the resignation of the Master Servicer shall be
evidenced by an Opinion of Counsel to such effect obtained at the expense of the
Master Servicer and delivered to the Trustee and the NIMS Insurer. No
resignation of the Master Servicer shall become effective until the Trustee or a
successor servicer acceptable to the NIMS Insurer shall have assumed the Master
Servicer's responsibilities, duties,

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liabilities (other than those liabilities arising prior to the appointment of
such successor) and obligations under this Agreement.

          Except as expressly provided herein, the Master Servicer shall not
assign or transfer any of its rights, benefits or privileges hereunder to any
other Person, nor delegate to or subcontract with, nor authorize or appoint any
other Person to perform any of the duties, covenants or obligations to be
performed by the Master Servicer hereunder. If, pursuant to any provision
hereof, the duties of the Master Servicer are transferred to a successor master
servicer, the entire amount of the Servicing Fee and other compensation payable
to the Master Servicer pursuant hereto shall thereafter be payable to such
successor master servicer.

          SECTION 6.05. Rights of the Depositor in Respect of the Master
                        Servicer.

          The Master Servicer shall afford (and any Sub-Servicing Agreement
shall provide that each Sub-Servicer shall afford) the Depositor, the NIMS
Insurer and the Trustee, upon reasonable notice, during normal business hours,
access to all records maintained by the Master Servicer (and any such
Sub-Servicer) in respect of the Master Servicer's rights and obligations
hereunder and access to officers of the Master Servicer (and those of any such
Sub-Servicer) responsible for such obligations. Upon request, the Master
Servicer shall furnish to the Depositor, the NIMS Insurer and the Trustee its
(and any such Sub-Servicer's) most recent financial statements and such other
information relating to the Master Servicer's capacity to perform its
obligations under this Agreement that it possesses. To the extent such
information is not otherwise available to the public, the Depositor, the NIMS
Insurer and the Trustee shall not disseminate any information obtained pursuant
to the preceding two sentences without the Master Servicer's (or any such
Sub-Servicer's) written consent, except as required pursuant to this Agreement
or to the extent that it is appropriate to do so (i) in working with legal
counsel, auditors, taxing authorities or other governmental agencies, rating
agencies or reinsurers or (ii) pursuant to any law, rule, regulation, order,
judgment, writ, injunction or decree of any court or governmental authority
having jurisdiction over the Depositor, the Trustee or the Trust Fund, and in
either case, the Depositor, the NIMS Insurer or the Trustee, as the case may be,
shall use its best efforts to assure the confidentiality of any such
disseminated non-public information. The Depositor may, but is not obligated to,
enforce the obligations of the Master Servicer under this Agreement and may, but
is not obligated to, perform, or cause a designee to perform, any defaulted
obligation of the Master Servicer under this Agreement or exercise the rights of
the Master Servicer under this Agreement; provided that the Master Servicer
shall not be relieved of any of its obligations under this Agreement by virtue
of such performance by the Depositor or its designee. The Depositor shall not
have any responsibility or liability for any action or failure to act by the
Master Servicer and is not obligated to supervise the performance of the Master
Servicer under this Agreement or otherwise.

          SECTION 6.06. Sub-Servicing Agreements Between the Master Servicer and
                        Sub-Servicers.

          (a) The Master Servicer may enter into Sub-Servicing Agreements
(provided that such agreements would not result in a withdrawal or a downgrading
by any Rating Agency of the ratings on any Class of Certificates and the NIMS
Insurer shall have consented to such Sub-Servicing Agreement) with
Sub-Servicers, for the servicing and administration of the Mortgage Loans.

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          Each Sub-Servicer shall be (i) authorized to transact business in the
state or states in which the related Mortgaged Properties it is to service are
situated, if and to the extent required by applicable law to enable the
Sub-Servicer to perform its obligations hereunder and under the Sub- Servicing
Agreement, (ii) an institution approved as a mortgage loan originator by the
Federal Housing Administration or an institution the deposit accounts in which
are insured by the FDIC and (iii) a Freddie Mac or Fannie Mae approved mortgage
servicer. Each Sub-Servicing Agreement must impose on the Sub-Servicer
requirements conforming to the provisions set forth in Section 6.11 and provide
for servicing of the Mortgage Loans consistent with the terms of this Agreement.
The Master Servicer will examine each Sub-Servicing Agreement and will be
familiar with the terms thereof. The terms of any Sub-Servicing Agreement will
not be inconsistent with any of the provisions of this Agreement. The Master
Servicer and the Sub-Servicers may enter into and make amendments to the
Sub-Servicing Agreements or enter into different forms of Sub-Servicing
Agreements; provided, however, that any such amendments or different forms shall
be consistent with and not violate the provisions of this Agreement, and that no
such amendment or different form shall be made or entered into which could be
reasonably expected to be materially adverse to the interests of the
Certificateholders, without the consent of the Holders of Certificates entitled
to at least 66% of the Voting Rights. Any variation without the consent of the
Holders of Certificates entitled to at least 66% of the Voting Rights from the
provisions set forth in Section 6.11 relating to insurance or priority
requirements of Sub-Servicing Accounts, or credits and charges to the Sub-
Servicing Accounts or the timing and amount of remittances by the Sub-Servicers
to the Master Servicer, are conclusively deemed to be inconsistent with this
Agreement and therefore prohibited. The Master Servicer shall deliver to the
Trustee and the NIMS Insurer copies of all Sub-Servicing Agreements, and any
amendments or modifications thereof, promptly upon the Master Servicer's
execution and delivery of such instruments.

          (b) As part of its servicing activities hereunder, the Master Servicer
(except as otherwise provided in the last sentence of this paragraph), for the
benefit of the Trustee and the Certificateholders, shall enforce the obligations
of each Sub-Servicer under the related Sub-Servicing Agreement and of the
Originator under the Mortgage Loan Purchase Agreement, including, without
limitation, any obligation to make advances in respect of delinquent payments as
required by a Sub- Servicing Agreement, or to purchase a Mortgage Loan on
account of missing or defective documentation or on account of a breach of a
representation, warranty or covenant, as described in Section 2.03(a). Such
enforcement, including, without limitation, the legal prosecution of claims,
termination of Sub-Servicing Agreements, and the pursuit of other appropriate
remedies, shall be in such form and carried out to such an extent and at such
time as the Master Servicer, in its good faith business judgment, would require
were it the owner of the related Mortgage Loans. The Master Servicer shall pay
the costs of such enforcement at its own expense, and shall be reimbursed
therefor only (i) from a general recovery resulting from such enforcement, to
the extent, if any, that such recovery exceeds all amounts due in respect of the
related Mortgage Loans or (ii) from a specific recovery of costs, expenses or
attorneys' fees against the party against whom such enforcement is directed.
Enforcement of the Mortgage Loan Purchase Agreement against the Originator shall
be effected by the Master Servicer to the extent it is not the Originator, and
otherwise by the Trustee, in accordance with the foregoing provisions of this
paragraph.

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          SECTION 6.07. Successor Sub-Servicers.

          The Master Servicer, with the consent of the NIMS Insurer, shall be
entitled to terminate any Sub-Servicing Agreement and the rights and obligations
of any Sub-Servicer pursuant to any Sub-Servicing Agreement in accordance with
the terms and conditions of such Sub-Servicing Agreement. In the event of
termination of any Sub-Servicer, all servicing obligations of such Sub- Servicer
shall be assumed simultaneously by the Master Servicer without any act or deed
on the part of such Sub-Servicer or the Master Servicer, and the Master Servicer
either shall service directly the related Mortgage Loans or shall enter into a
Sub-Servicing Agreement with a successor Sub-Servicer which qualifies under
Section 6.06.

          Any Sub-Servicing Agreement shall include the provision that such
agreement may be immediately terminated by the Trustee without fee, in
accordance with the terms of this Agreement, in the event that the Master
Servicer shall, for any reason, no longer be the Master Servicer (including
termination due to a Master Servicer Event of Default).

          SECTION 6.08. Liability of the Master Servicer.

          Notwithstanding any Sub-Servicing Agreement, any of the provisions of
this Agreement relating to agreements or arrangements between the Master
Servicer and a Sub-Servicer or reference to actions taken through a Sub-Servicer
or otherwise, the Master Servicer shall remain obligated and primarily liable to
the Trustee and the Certificateholders for the servicing and administering of
the Mortgage Loans in accordance with the provisions of Section 3.01 without
diminution of such obligation or liability by virtue of such Sub-Servicing
Agreements or arrangements or by virtue of indemnification from the Sub-Servicer
and to the same extent and under the same terms and conditions as if the Master
Servicer alone were servicing and administering the Mortgage Loans. The Master
Servicer shall be entitled to enter into any agreement with a Sub- Servicer for
indemnification of the Master Servicer by such Sub-Servicer and nothing
contained in this Agreement shall be deemed to limit or modify such
indemnification.

          SECTION 6.09. No Contractual Relationship Between Sub-Servicers and
                        the NIMS Insurer, the Trustee or Certificateholders.

          Any Sub-Servicing Agreement that may be entered into and any
transactions or services relating to the Mortgage Loans involving a Sub-Servicer
in its capacity as such shall be deemed to be between the Sub-Servicer and the
Master Servicer alone, and the NIMS Insurer, the Trustee and Certificateholders
shall not be deemed parties thereto and shall have no claims, rights,
obligations, duties or liabilities with respect to the Sub-Servicer except as
set forth in Section 6.10. The Master Servicer shall be solely liable for all
fees owed by it to any Sub-Servicer, irrespective of whether the Master
Servicer's compensation pursuant to this Agreement is sufficient to pay such
fees.

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          SECTION 6.10. Assumption or Termination of Sub-Servicing Agreements by
                        Trustee.

          In the event the Master Servicer shall for any reason no longer be the
master servicer (including termination due to a Master Servicer Event of
Default), the Trustee or its designee shall thereupon assume (or cause its
designee or the successor master servicer for the Trustee appointed pursuant to
Section 7.02 to assume) all of the rights and obligations of the Master Servicer
under each Sub-Servicing Agreement that the Master Servicer may have entered
into, unless the Trustee elects to terminate any Sub-Servicing Agreement in
accordance with its terms as provided in Section 6.07. Upon such assumption, the
Trustee, its designee or the successor servicer for the Trustee appointed
pursuant to Section 7.02 shall be deemed, subject to Section 6.07, to have
assumed all of the Master Servicer's interest therein and to have replaced the
Master Servicer as a party to each Sub-Servicing Agreement to the same extent as
if each Sub-Servicing Agreement had been assigned to the assuming party, except
that (i) the Master Servicer shall not thereby be relieved of any liability or
obligations under any Sub-Servicing Agreement and (ii) none of the Trustee, its
designee or any successor Master Servicer shall be deemed to have assumed any
liability or obligation of the Master Servicer that arose before it ceased to be
the Master Servicer.

          The Master Servicer at its expense shall, upon request of the Trustee,
deliver to the assuming party all documents and records relating to each
Sub-Servicing Agreement and the Mortgage Loans then being serviced and an
accounting of amounts collected and held by or on behalf of it, and otherwise
use its best efforts to effect the orderly and efficient transfer of the Sub-
Servicing Agreements to the assuming party.

          SECTION 6.11. Sub-Servicing Accounts.

          In those cases where a Sub-Servicer is servicing a Mortgage Loan
pursuant to a Sub- Servicing Agreement, the Sub-Servicer will be required to
establish and maintain one or more accounts (collectively, the "Sub-Servicing
Account"). The Sub-Servicing Account shall be an Eligible Account. The
Sub-Servicer shall deposit in the clearing account (which account must be an
Eligible Account) in which it customarily deposits payments and collections on
mortgage loans in connection with its mortgage loan servicing activities on a
daily basis, and in no event more than one Business Day after the Sub-Servicer's
receipt thereof, all proceeds of Mortgage Loans received by the Sub-Servicer
less its servicing compensation to the extent permitted by the Sub-Servicing
Agreement, and shall thereafter deposit such amounts in the Sub-Servicing
Account, in no event more than two Business Days after the deposit of such funds
into the clearing account. The Sub- Servicer shall thereafter deposit such
proceeds in the Collection Account or remit such proceeds to the Master Servicer
for deposit in the Collection Account not later than two Business Days after the
deposit of such amounts in the Sub-Servicing Account. For purposes of this
Agreement, the Master Servicer shall be deemed to have received payments on the
Mortgage Loans when the Sub-Servicer receives such payments.

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                                   ARTICLE VII

                                     DEFAULT

          SECTION 7.01. Master Servicer Events of Default.

          "Master Servicer Event of Default," wherever used herein, means any
one of the following events:

          (i) any failure by the Master Servicer to remit to the Trustee for
     distribution to the Certificateholders any payment (other than a Advance
     required to be made from its own funds on any Master Servicer Remittance
     Date pursuant to Section 4.03) required to be made under the terms of the
     Certificates and this Agreement which continues unremedied for a period of
     one Business Day after the date upon which written notice of such failure,
     requiring the same to be remedied, shall have been given to the Master
     Servicer by the Depositor or the Trustee (in which case notice shall be
     provided by telecopy), or to the Master Servicer, the Depositor and the
     Trustee by the NIMS Insurer or the Holders of Certificates entitled to at
     least 25% of the Voting Rights; or

          (ii) any failure on the part of the Master Servicer duly to observe or
     perform in any material respect any of the covenants or agreements on the
     part of the Master Servicer contained in the Certificates or in this
     Agreement (or, if the Master Servicer is the Originator, the failure of the
     Originator to repurchase a Mortgage Loan as to which a breach has been
     established that requires a repurchase pursuant to the terms of Section 7
     of the Mortgage Loan Purchase Agreement) which continues unremedied for a
     period of 45 days after the earlier of (i) the date on which written notice
     of such failure, requiring the same to be remedied, shall have been given
     to the Master Servicer by the Depositor or the Trustee, or to the Master
     Servicer, the Depositor and the Trustee by the NIMS Insurer or the Holders
     of Certificates entitled to at least 25% of the Voting Rights and (ii)
     actual knowledge of such failure by a Servicing Officer of the Master
     Servicer; or

          (iii) a decree or order of a court or agency or supervisory authority
     having jurisdiction in the premises in an involuntary case under any
     present or future federal or state bankruptcy, insolvency or similar law or
     the appointment of a conservator or receiver or liquidator in any
     insolvency, readjustment of debt, marshalling of assets and liabilities or
     similar proceeding, or for the winding-up or liquidation of its affairs,
     shall have been entered against the Master Servicer and if such proceeding
     is being contested by the Master Servicer in good faith, such decree or
     order shall have remained in force undischarged or unstayed for a period of
     60 days or results in the entry of an order for relief or any such
     adjudication or appointment; or

          (iv) the Master Servicer shall consent to the appointment of a
     conservator or receiver or liquidator in any insolvency, readjustment of
     debt, marshalling of assets and liabilities or similar proceedings of or
     relating to the Master Servicer or of or relating to all or substantially
     all of its property; or

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

          (vi) any failure by the Master Servicer of the Master Servicer
     Termination Test; or

          (vii) any failure of the Master Servicer to make any Advance on any
     Master Servicer Remittance Date required to be made from its own funds
     pursuant to Section 4.03 which continues unremedied until 3:00 p.m. New
     York time on the Business Day immediately following the Master Servicer
     Remittance Date.

          If a Master Servicer Event of Default described in clauses (i) through
(vi) of this Section shall occur, then, and in each and every such case, so long
as such Master Servicer Event of Default shall not have been remedied, the
Depositor, the NIMS Insurer or the Trustee may, and at the written direction of
the Holders of Certificates entitled to at least 51% of Voting Rights or at the
direction of the NIMS Insurer, the Trustee shall, by notice in writing to the
Master Servicer (and to the Depositor if given by the Trustee or to the Trustee
if given by the Depositor), terminate all of the rights and obligations of the
Master Servicer in its capacity as Master Servicer under this Agreement, to the
extent permitted by law, and in and to the Mortgage Loans and the proceeds
thereof. If a Master Servicer Event of Default described in clause (vii) hereof
shall occur, the Trustee shall, by notice in writing to the Master Servicer and
the Depositor, terminate all of the rights and obligations of the Master
Servicer in its capacity as Master Servicer under this Agreement and in and to
the Mortgage Loans and the proceeds thereof and the Trustee, or a successor
Master Servicer appointed in accordance with Section 7.02, shall immediately
make such Advance and assume, pursuant to Section 7.02, the duties of a
successor Master Servicer. On or after the receipt by the Master Servicer of
such written notice, all authority and power of the Master Servicer under this
Agreement, whether with respect to the Certificates (other than as a Holder of
any Certificate) or the Mortgage Loans or otherwise, shall pass to and be vested
in the Trustee pursuant to and under this Section and, without limitation, the
Trustee is hereby authorized and empowered, as attorney-in- fact or otherwise,
to execute and deliver on behalf of and at the expense of the Master Servicer,
any and all documents and other instruments and to do or accomplish all other
acts or things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement or assignment of
the Mortgage Loans and related documents, or otherwise. The Master Servicer
agrees, at its sole cost and expense, promptly (and in any event no later than
ten Business Days subsequent to such notice) to provide the Trustee with all
documents and records requested by it to enable it to assume the Master
Servicer's functions under this Agreement, and to cooperate with the Trustee in
effecting the termination of the Master Servicer's responsibilities and rights
under this Agreement, including, without limitation, the transfer within one
Business Day to the Trustee for administration by it of all cash amounts which
at the time shall be or should have been credited by the Master Servicer to the
Collection Account held by or on behalf of the Master Servicer, the Distribution
Account or any REO Account or Servicing Account held by or on behalf of the
Master Servicer or thereafter be received with respect to the Mortgage Loans or
any REO Property serviced by the Master Servicer (provided, however, that the
Master Servicer shall continue to be entitled to receive all amounts accrued or
owing to it under this Agreement on or prior to the date of such termination,
whether in respect of Advances or otherwise, and shall continue to be

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entitled to the benefits of Section 6.03, notwithstanding any such termination,
with respect to events occurring prior to such termination). For purposes of
this Section 7.01, the Trustee shall not be deemed to have knowledge of a Master
Servicer Event of Default unless a Responsible Officer of the Trustee assigned
to and working in the Trustee's Corporate Trust Office has actual knowledge
thereof or unless written notice is received by the Trustee of any such event
and such notice references the Certificates, REMIC I or this Agreement.

          The Trustee shall be entitled to be reimbursed by the Master Servicer
(or by the Trust Fund if the Master Servicer is unable to fulfill its
obligations hereunder) for all costs associated with the transfer of servicing
from the predecessor servicer, including without limitation, any costs or
expenses associated with the complete transfer of all servicing data and the
completion, correction or manipulation of such servicing data as may be required
by the Trustee to correct any errors or insufficiencies in the servicing data or
otherwise to enable the Trustee to service the Mortgage Loans properly and
effectively.

          SECTION 7.02. Trustee to Act; Appointment of Successor.

          (a) On and after the time the Master Servicer receives a notice of
termination, the Trustee shall be the successor in all respects to the Master
Servicer in its capacity as Master Servicer under this Agreement and the
transactions set forth or provided for herein and shall be subject to all the
responsibilities, duties and liabilities relating thereto and arising thereafter
placed on the Master Servicer (except for any representations or warranties of
the Master Servicer under this Agreement, the responsibilities, duties and
liabilities contained in Section 2.03(c) and its obligation to deposit amounts
in respect of losses pursuant to Section 3.06) by the terms and provisions
hereof including, without limitation, the Master Servicer's obligations to make
Advances pursuant to Section 4.03; provided, however, that if the Trustee is
prohibited by law or regulation from obligating itself to make advances
regarding delinquent mortgage loans, then the Trustee shall not be obligated to
make Advances pursuant to Section 4.03; and provided further, that any failure
to perform such duties or responsibilities caused by the Master Servicer's
failure to provide information required by Section 7.01 shall not be considered
a default by the Trustee as successor to the Master Servicer hereunder;
provided, however, it is understood and acknowledged by the parties that there
will be a period of transition (not to exceed 90 days) before the servicing
transfer is fully effected. As compensation therefor, effective from and after
the time the Master Servicer receives a notice of termination or immediately
upon assumption of the obligations to make Advances, the Trustee shall be
entitled to the Servicing Fee and all funds relating to the Mortgage Loans to
which the Master Servicer would have been entitled if it had continued to act
hereunder (other than amounts which were due or would become due to the Master
Servicer prior to its termination or resignation). Notwithstanding the above and
subject to the next paragraph, the Trustee may, if it shall be unwilling to so
act, or shall, if it is unable to so act or if it is prohibited by law from
making advances regarding delinquent mortgage loans, or if the Holders of
Certificates entitled to at least 51% of the Voting Rights or the NIMS Insurer
so request in writing to the Trustee promptly appoint or petition a court of
competent jurisdiction to appoint, an established mortgage loan servicing
institution acceptable to each Rating Agency and the NIMS Insurer and having a
net worth of not less than $15,000,000 as the successor to the Master Servicer
under this Agreement in the assumption of all or any part of the
responsibilities, duties or liabilities of the Master Servicer under this
Agreement. No appointment of a successor to the Master Servicer under this
Agreement shall be effective until the assumption by the successor of all of the
Master Servicer's responsibilities, duties and liabilities hereunder. In

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connection with such appointment and assumption described herein, the Trustee
may make such arrangements for the compensation of such successor out of
payments on Mortgage Loans as it and such successor shall agree; provided,
however, that no such compensation shall be in excess of that permitted the
Master Servicer as such hereunder. The Depositor, the Trustee and such successor
shall take such action, consistent with this Agreement, as shall be necessary to
effectuate any such succession. Pending appointment of a successor to the Master
Servicer under this Agreement, the Trustee shall act in such capacity as
hereinabove provided.

          Upon removal or resignation of the Master Servicer, the Trustee, with
the cooperation of the Depositor, (x) shall solicit bids for a successor Master
Servicer as described below and (y) pending the appointment of a successor
Master Servicer as a result of soliciting such bids, shall serve as Master
Servicer of the Mortgage Loans serviced by such predecessor Master Servicer. The
Trustee shall solicit, by public announcement, bids from housing and home
finance institutions, banks and mortgage servicing institutions meeting the
qualifications set forth above (including the Trustee or any affiliate thereof)
(including that such mortgage loan servicing institution be acceptable to each
Rating Agency and the NIMS Insurer). Such public announcement shall specify that
the successor Master Servicer shall be entitled to the servicing compensation
agreed upon between the Trustee, the successor Master Servicer and the
Depositor; provided, however, that no such fee shall exceed the Servicing Fee.
Within thirty days after any such public announcement, the Trustee, with the
cooperation of the Depositor, shall negotiate in good faith and effect the sale,
transfer and assignment of the servicing rights and responsibilities hereunder
to the qualified party submitting the highest satisfactory bid as to the price
they will pay to obtain such servicing. The Trustee upon receipt of the purchase
price shall pay such purchase price to the Master Servicer being so removed,
after deducting from any sum received by the Trustee from the successor to the
Master Servicer in respect of such sale, transfer and assignment all costs and
expenses of any public announcement and of any sale, transfer and assignment of
the servicing rights and responsibilities reasonably incurred hereunder. After
such deductions, the remainder of such sum shall be paid by the Trustee to the
Master Servicer at the time of such sale.

          (b) If the Master Servicer fails to remit to the Trustee for
distribution to the Certificateholders any payment required to be made under the
terms of the Certificates and this Agreement (for purposes of this Section
7.02(b), a "Remittance") because the Master Servicer is the subject of a
proceeding under the federal Bankruptcy Code and the making of such Remittance
is prohibited by Section 362 of the federal Bankruptcy Code, the Trustee shall
upon notice of such prohibition, regardless of whether it has received a notice
of termination under Section 7.01, advance the amount of such Remittance by
depositing such amount in the Distribution Account on the related Distribution
Date. The Trustee shall be obligated to make such advance only if (i) such
advance, in the good faith judgment of the Trustee can reasonably be expected to
be ultimately recoverable from Stayed Funds and (ii) the Trustee is not
prohibited by law from making such advance or obligating itself to do so. Upon
remittance of the Stayed Funds to the Trustee or the deposit thereof in the
Distribution Account by the Master Servicer, a trustee in bankruptcy or a
federal bankruptcy court, the Trustee may recover the amount so advanced,
without interest, by withdrawing such amount from the Distribution Account;
however, nothing in this Agreement shall be deemed to affect the Trustee's
rights to recover from the Master Servicer's own funds interest on the amount of
any such advance. If the Trustee at any time makes an advance under this
Subsection which it later determines in its good faith judgment will not be
ultimately recoverable from the Stayed Funds with respect to which such advance
was made, the Trustee shall be entitled to reimburse itself for such

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advance, without interest, by withdrawing from the Distribution Account, out of
amounts on deposit therein, an amount equal to the portion of such advance
attributable to the Stayed Funds.

          (c) If the Master Servicer is terminated pursuant to Section 7.01,
then the successor Master Servicer shall not be permitted to reimburse itself
directly for Advances or Servicing Advances under Section 3.05(a)(ii), Section
3.05(a)(iii), Section 3.05(a)(v) or Section 3.05(a)(vii) if the Master Servicer
has not been fully reimbursed for its Advances and Servicing Advances, but
instead the successor Master Servicer shall include such amounts in the
applicable remittance to the Trustee made pursuant to Section 3.04(g) to the
extent of amounts on deposit in the Collection Account on the related Master
Servicer Remittance Date. The Trustee is hereby authorized to pay to the
terminated Master Servicer (or the related Advancing Person in accordance with
Section 3.23) and the successor Master Servicer, as applicable, reimbursements
for Advances and Servicing Advances from the Distribution Account to the same
extent each such Master Servicer would have been permitted to reimburse itself
for such Advances and/or Servicing Advances in accordance with Section
3.05(a)(ii), Section 3.05(a)(iii), Section 3.05(a)(v) or Section 3.05(a)(vii),
as the case may be. All Advances and Servicing Advances made pursuant to the
terms of this Agreement shall be deemed made and shall be reimbursed on a "first
in-first out" (FIFO) basis. At such time as the Master Servicer (or related
Advancing Person) has been reimbursed for all Advances and Servicing Advances
made by it, the successor Master Servicer shall no longer be required to remit
in accordance with the first sentence of this Section 7.02(c) and shall then be
permitted to reimburse itself directly for Advances and Servicing Advances in
accordance with Section 3.05(a)(ii), Section 3.05(a)(iii), Section 3.05(a)(v) or
Section 3.05(a)(vii).

          SECTION 7.03. Notification to Certificateholders.

          (a) Upon any termination of the Master Servicer pursuant to Section
7.01 above or any appointment of a successor to the Master Servicer pursuant to
Section 7.02 above, the Trustee shall give prompt written notice thereof to
Certificateholders and the NIMS Insurer at their respective addresses appearing
in the Certificate Register.

          (b) Not later than the later of 60 days after the occurrence of any
event, which constitutes or which, with notice or lapse of time or both, would
constitute a Master Servicer Event of Default or five days after a Responsible
Officer of the Trustee becomes aware of the occurrence of such an event, the
Trustee shall transmit by mail to the NIMS Insurer and to all Holders of
Certificates notice of each such occurrence, unless such default or Master
Servicer Event of Default shall have been cured or waived.

          SECTION 7.04. Waiver of Master Servicer Events of Default.

          The Holders representing at least 66% of the Voting Rights (with the
consent of the NIMS Insurer) evidenced by all Classes of Certificates affected
by any default or Master Servicer Event of Default hereunder may waive such
default or Master Servicer Event of Default; PROVIDED, HOWEVER, that a default
or Master Servicer Event of Default under clause (i) or (vii) of Section 7.01
may be waived only by all of the Holders of the Regular Certificates (with the
consent of the NIMS Insurer). Upon any such waiver of a default or Master
Servicer Event of Default, such default or Master Servicer Event of Default
shall cease to exist and shall be deemed to have been remedied for every purpose
hereunder. No such waiver shall extend to any subsequent or other default or
Master

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Servicer Event of Default or impair any right consequent thereon except to the
extent expressly so waived.

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                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

          SECTION 8.01. Duties of Trustee.

          The Trustee, prior to the occurrence of a Master Servicer Event of
Default and after the curing of all Master Servicer Events of Default which may
have occurred, undertakes to perform such duties and only such duties as are
specifically set forth in this Agreement. During a Master Servicer Event of
Default, the Trustee shall exercise such of the rights and powers vested in it
by this Agreement, and use the same degree of care and skill in their exercise
as a prudent person would exercise or use under the circumstances in the conduct
of such person's own affairs. Any permissive right of the Trustee enumerated in
this Agreement shall not be construed as a duty.

          The Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to the Trustee which are specifically required to be furnished pursuant to any
provision of this Agreement, shall examine them to determine whether they
conform on their face to the requirements of this Agreement. If any such
instrument is found not to conform on its face to the requirements of this
Agreement in a material manner, the Trustee shall take such action as it deems
appropriate to have the instrument corrected, and if the instrument is not
corrected to its respective satisfaction, such dissatisfied party will provide
notice thereof to the Certificateholders and the NIMS Insurer.

          No provision of this Agreement shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act or its own misconduct; provided, however, that:

          (i) Prior to the occurrence of a Master Servicer Event of Default, and
     after the curing of all such Master Servicer Events of Default which may
     have occurred, the duties and obligations of the Trustee shall be
     determined solely by the express provisions of this Agreement, the Trustee
     shall not be liable except for the performance of such duties and
     obligations as are specifically set forth in this Agreement, no implied
     covenants or obligations shall be read into this Agreement against the
     Trustee and, in the absence of bad faith on the part of the Trustee, the
     Trustee may conclusively rely, as to the truth of the statements and the
     correctness of the opinions expressed therein, upon any certificates or
     opinions furnished to the Trustee that conform to the requirements of this
     Agreement;

          (ii) The Trustee shall not be personally liable for an error of
     judgment made in good faith by a Responsible Officer or Responsible
     Officers of the Trustee unless it shall be proved that the Trustee was
     negligent in ascertaining the pertinent facts; and

          (iii) The Trustee shall not be personally liable with respect to any
     action taken, suffered or omitted to be taken by it in good faith in
     accordance with the direction of the NIMS Insurer or the Holders of
     Certificates entitled to at least 25% of the Voting Rights relating to the
     time, method and place of conducting any proceeding for any remedy
     available to the Trustee or exercising any trust or power conferred upon
     it, under this Agreement.

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          The Trustee shall not be required to expend or risk its own funds or
otherwise incur financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if there is
reasonable ground for believing that the repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it, and
none of the provisions contained in this Agreement shall in any event require it
to perform, or be responsible for the manner of performance of, any of the
obligations of the Master Servicer under this Agreement, except during such
time, if any, as the Trustee shall be the successor to, and be vested with the
rights, duties, powers and privileges of, the Master Servicer in accordance with
the terms of this Agreement.

          SECTION 8.02. Certain Matters Affecting the Trustee.

          (a) Except as otherwise provided in Section 8.01:

          (i) The Trustee may request and rely upon and shall be protected in
     acting or refraining from acting upon any resolution, Officers'
     Certificate, certificate of auditors or any other certificate, statement,
     instrument, opinion, report, notice, request, consent, order, appraisal,
     bond or other paper or document reasonably believed by it to be genuine and
     to have been signed or presented by the proper party or parties;

          (ii) The Trustee may consult with counsel and any Opinion of Counsel
     shall be full and complete authorization and protection in respect of any
     action taken or suffered or omitted by it hereunder in good faith and in
     accordance with such Opinion of Counsel;

          (iii) The Trustee shall not be under any obligation to exercise any of
     the trusts or powers vested in it by this Agreement or to institute,
     conduct or defend any litigation hereunder or in relation hereto at the
     request, order or direction of any of the Certificateholders or the NIMS
     Insurer, pursuant to the provisions of this Agreement, unless such
     Certificateholders or the NIMS Insurer, as applicable, shall have offered
     to the Trustee security or indemnity reasonably satisfactory to it against
     the costs, expenses and liabilities which may be incurred therein or
     thereby; nothing contained herein shall, however, relieve the Trustee of
     the obligation, upon the occurrence of a Master Servicer Event of Default
     (which has not been cured or waived), to exercise such of the rights and
     powers vested in it by this Agreement, and to use the same degree of care
     and skill in their exercise as a prudent person would exercise or use under
     the circumstances in the conduct of such person's own affairs;

          (iv) The Trustee shall not be personally liable for any action taken,
     suffered or omitted by it in good faith and believed by it to be authorized
     or within the discretion or rights or powers conferred upon it by this
     Agreement;

          (v) Prior to the occurrence of a Master Servicer Event of Default
     hereunder and after the curing of all Master Servicer Events of Default
     which may have occurred, the Trustee shall not be bound to make any
     investigation into the facts or matters stated in any resolution,
     certificate, statement, instrument, opinion, report, notice, request,
     consent, order, approval, bond or other paper or document, unless requested
     in writing to do so by the NIMS Insurer or the Holders of Certificates
     entitled to at least 25% of the Voting Rights; provided, however, that if
     the payment within a reasonable time to the Trustee of the costs, expenses

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     or liabilities likely to be incurred by it in the making of such
     investigation is, in the opinion of the Trustee not reasonably assured to
     the Trustee by such Certificateholders, the Trustee may require reasonable
     indemnity against such expense, or liability from such Certificateholders
     or the NIMS Insurer as a condition to taking any such action;

          (vi) The Trustee may execute any of the trusts or powers hereunder or
     perform any duties hereunder either directly or by or through agents or
     attorneys; and

          (vii) The Trustee shall not be personally liable for any loss
     resulting from the investment of funds held in the Collection Account, the
     Escrow Account or the REO Account made at the direction of the Master
     Servicer pursuant to Section 3.06.

          (b) All rights of action under this Agreement or under any of the
Certificates, enforceable by the Trustee, may be enforced by it without the
possession of any of the Certificates, or the production thereof at the trial or
other proceeding relating thereto, and any such suit, action or proceeding
instituted by the Trustee shall be brought in the name of the Trustee for the
benefit of all the Holders of such Certificates, subject to the provisions of
this Agreement.

          (c) The Trustee is hereby directed by the Depositor to execute and
deliver the PMI Policy and the Cap Contracts on behalf of the Trust Fund in the
respective forms presented to it by the Depositor.

          SECTION 8.03. Trustee Not Liable for Certificates or Mortgage Loans.

          The recitals contained herein and in the Certificates (other than the
signature of the Trustee, the authentication of the Certificate Registrar on the
Certificates, the acknowledgments of the Trustee contained in Article II and the
representations and warranties of the Trustee in Section 8.13) shall be taken as
the statements of the Depositor and the Trustee assumes no responsibility for
their correctness. The Trustee makes no representations or warranties as to the
validity or sufficiency of this Agreement (other than as specifically set forth
with respect to such party in Section 8.13) or of the Certificates (other than
the signature of the Trustee and authentication of the Certificate Registrar on
the Certificates) or of any Mortgage Loan or related document. The Trustee shall
not be accountable for the use or application by the Depositor of any of the
Certificates or of the proceeds of such Certificates, or for the use or
application of any funds paid to the Depositor or the Master Servicer in respect
of the Mortgage Loans or deposited in or withdrawn from the Collection Account
by the Master Servicer, other than any funds held by or on behalf of the Trustee
and any amounts held by or on behalf of the Trustee in accordance with Section
3.04.

          SECTION 8.04. Trustee May Own Certificates.

          The Trustee in its individual capacity or any other capacity may
become the owner or pledgee of Certificates with the same rights it would have
if it were not Trustee.

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          SECTION 8.05. Trustee's Fees and Expenses.

          (a) The Trustee shall withdraw from the Distribution Account on each
Distribution Date and pay to itself the Trustee Fee and, to the extent that the
funds therein are at any time insufficient for such purpose, the Depositor shall
pay such fees. The Trustee, or any director, officer, employee or agent of the
Trustee shall be indemnified by REMIC I and held harmless against any loss,
liability or expense (not including expenses, disbursements and advances
incurred or made by the Trustee including the compensation and the expenses and
disbursements of its agents and counsel, in the ordinary course of the Trustee's
performance in accordance with the provisions of this Agreement) incurred by the
Trustee in connection with any claim or legal action or any pending or
threatened claim or legal action arising out of or in connection with the
acceptance or administration of its obligations and duties under this Agreement,
other than any loss, liability or expense (i) resulting from a breach of the
Master Servicer's obligations and duties under this Agreement and the Mortgage
Loans (for which the Master Servicer shall indemnify pursuant to Section
8.05(b)), (ii) that constitutes a specific liability of the Trustee pursuant to
Section 10.01(c) or (iii) any loss, liability or expense incurred by reason of
its respective willful misfeasance, bad faith or negligence in the performance
of its respective duties hereunder or by reason of reckless disregard of its
respective obligations and duties hereunder or as a result of a breach of its
respective obligations under Article X hereof. Any amounts payable to the
Trustee, or any director, officer, employee or agent of the Trustee in respect
of the indemnification provided by this paragraph (a), or pursuant to any other
right of reimbursement from the Trust Fund that the Trustee, or any director,
officer, employee or agent of the Trustee, may have hereunder in its capacity as
such, may be withdrawn by the Trustee from the Distribution Account at any time.

          (b) The Master Servicer agrees to indemnify the Trustee from, and hold
it harmless against, any loss, liability or expense resulting from a breach of
the Master Servicer's obligations and duties under this Agreement. Such
indemnity shall survive the termination or discharge of this Agreement and the
resignation or removal of the Trustee. Any payment hereunder made by the Master
Servicer to the Trustee shall be from the Master Servicer's own funds, without
reimbursement from the Trust Fund therefor.

          (c) The Master Servicer shall pay any annual rating agency fees of the
Rating Agencies for ongoing surveillance from its own funds without right of
reimbursement.

          SECTION 8.06. Eligibility Requirements for Trustee.

          The Trustee hereunder shall at all times be a corporation or an
association (other than the Depositor, the Originator, the Master Servicer or
any Affiliate of the foregoing) organized and doing business under the laws of
any state or the United States of America, authorized under such laws to
exercise corporate trust powers, having a combined capital and surplus of at
least $50,000,000 and subject to supervision or examination by federal or state
authority. If such corporation or association publishes reports of conditions at
least annually, pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then for the purposes of this Section the
combined capital and surplus of such corporation or association shall be deemed
to be its combined capital and surplus as set forth in its most recent report of
conditions so published. In case at any time the Trustee shall cease to be
eligible in accordance with the provisions of this

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Section, the Trustee shall resign immediately in the manner and with the effect
specified in Section 8.07.

          SECTION 8.07. Resignation and Removal of the Trustee.

          The Trustee may at any time resign and be discharged from the trust
hereby created by giving written notice thereof to the Depositor, the NIMS
Insurer, the Master Servicer and the Certificateholders. Upon receiving such
notice of resignation of the Trustee, the Depositor shall promptly appoint a
successor trustee acceptable to the NIMS Insurer by written instrument, in
duplicate, which instrument shall be delivered to the resigning Trustee and to
the successor trustee. A copy of such instrument shall be delivered to the
Certificateholders, the Trustee and the Master Servicer by the Depositor. If no
successor trustee shall have been so appointed and have accepted appointment
within 30 days after the giving of such notice of resignation, the resigning
Trustee may petition any court of competent jurisdiction for the appointment of
a successor trustee.

          If at any time the Trustee shall cease to be eligible in accordance
with the provisions of Section 8.06 and shall fail to resign after written
request therefor by the Depositor or the NIMS Insurer, or if at any time the
Trustee shall become incapable of acting, or shall be adjudged bankrupt or
insolvent, or a receiver of the Trustee or of its respective property shall be
appointed, or any public officer shall take charge or control of the Trustee or
of its respective property or affairs for the purpose of rehabilitation,
conservation or liquidation, then the Depositor or the NIMS Insurer may remove
the Trustee and appoint a successor trustee acceptable to the NIMS Insurer by
written instrument, in duplicate, which instrument shall be delivered to the
Trustee so removed and to the successor trustee. A copy of such instrument shall
be delivered to the Certificateholders and the Master Servicer by the Depositor.

          The Holders of Certificates entitled to at least 51% of the Voting
Rights (or the NIMS Insurer upon failure of the Trustee to perform its
obligations hereunder) may at any time remove the Trustee and appoint a
successor trustee acceptable to the NIMS Insurer by written instrument or
instruments, in triplicate, signed by such Holders or their attorneys-in-fact
duly authorized, one complete set of which instruments shall be delivered to the
Depositor, one complete set to the Trustee so removed and one complete set to
the successor so appointed. A copy of such instrument shall be delivered to the
Certificateholders and the Master Servicer by the Depositor.

          Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section shall not
become effective until acceptance of appointment by the successor trustee as
provided in Section 8.08.

          SECTION 8.08. Successor Trustee.

          Any successor trustee appointed as provided in Section 8.07 shall
execute, acknowledge and deliver to the Depositor, the NIMS Insurer, the Trustee
and to its predecessor trustee an instrument accepting such appointment
hereunder, and thereupon the resignation or removal of the predecessor trustee
shall become effective and such successor trustee without any further act, deed
or conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with the like effect as if originally
named as trustee herein. The predecessor trustee shall deliver to the successor
trustee all Mortgage Files and related

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documents and statements, as well as all moneys, held by it hereunder (other
than any Mortgage Files at the time held by a Custodian, which Custodian shall
become the agent of any successor trustee hereunder), and the Depositor and the
predecessor trustee shall execute and deliver such instruments and do such other
things as may reasonably be required for more fully and certainly vesting and
confirming in the successor trustee all such rights, powers, duties and
obligations.

          No successor trustee shall accept appointment as provided in this
Section unless at the time of such acceptance such successor trustee shall be
eligible under the provisions of Section 8.06 and the appointment of such
successor trustee shall not result in a downgrading of any Class of Certificates
by either Rating Agency, as evidenced by a letter from each Rating Agency.

          Upon acceptance of appointment by a successor trustee as provided in
this Section, the Depositor shall mail notice of the succession of such trustee
hereunder to all Holders of Certificates at their addresses as shown in the
Certificate Register. If the Depositor fails to mail such notice within 10 days
after acceptance of appointment by the successor trustee, the successor trustee
shall cause such notice to be mailed at the expense of the Depositor.

          SECTION 8.09. Merger or Consolidation of Trustee.

          Any corporation or association into which the Trustee may be merged or
converted or with which it may be consolidated or any corporation or association
resulting from any merger, conversion or consolidation to which the Trustee
shall be a party, or any corporation or association succeeding to the business
of the Trustee shall be the successor of the Trustee hereunder, provided such
corporation or association shall be eligible under the provisions of Section
8.06, without the execution or filing of any paper or any further act on the
part of any of the parties hereto, anything herein to the contrary
notwithstanding.

          SECTION 8.10. Appointment of Co-Trustee or Separate Trustee.

          Notwithstanding any other provisions hereof, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of REMIC I or property securing the same may at the time be located, the Master
Servicer and the Trustee acting jointly shall have the power and shall execute
and deliver all instruments to appoint one or more Persons approved by the
Trustee and the NIMS Insurer to act as co-trustee or co-trustees, jointly with
the Trustee, or separate trustee or separate trustees, of all or any part of
REMIC I, and to vest in such Person or Persons, in such capacity, such title to
REMIC I, or any part thereof, and, subject to the other provisions of this
Section 8.10, such powers, duties, obligations, rights and trusts as the Master
Servicer and the Trustee may consider necessary or desirable. Any such
co-trustee or separate trustee shall be subject to the written approval of the
Master Servicer and the NIMS Insurer. If the Master Servicer and the NIMS
Insurer shall not have joined in such appointment within 15 days after the
receipt by it of a request so to do, or in case a Master Servicer Event of
Default shall have occurred and be continuing, the Trustee alone shall have the
power to make such appointment. No co-trustee or separate trustee hereunder
shall be required to meet the terms of eligibility as a successor trustee under
Section 8.06 hereunder and no notice to Holders of Certificates of the
appointment of co-trustee(s) or separate trustee(s) shall be required under
Section 8.08 hereof.

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          In the case of any appointment of a co-trustee or separate trustee
pursuant to this Section 8.10 all rights, powers, duties and obligations
conferred or imposed upon the Trustee shall be conferred or imposed upon and
exercised or performed by the Trustee and such separate trustee or co-trustee
jointly, except to the extent that under any law of any jurisdiction in which
any particular act or acts are to be performed by the Trustee (whether as
Trustee hereunder or as successor to the Master Servicer hereunder), the Trustee
shall be incompetent or unqualified to perform such act or acts, in which event
such rights, powers, duties and obligations (including the holding of title to
REMIC I or any portion thereof in any such jurisdiction) shall be exercised and
performed by such separate trustee or co-trustee at the direction of the
Trustee.

          Any notice, request or other writing given to the Trustee shall be
deemed to have been given to each of the then separate trustees and co-trustees,
as effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Agreement and the conditions
of this Article VIII. Each separate trustee and co-trustee, upon its acceptance
of the trust conferred, shall be vested with the estates or property specified
in its instrument of appointment, either jointly with the Trustee or separately,
as may be provided therein, subject to all the provisions of this Agreement,
specifically including every provision of this Agreement relating to the conduct
of, affecting the liability of, or affording protection to, the Trustee. Every
such instrument shall be filed with the Trustee and a copy thereof given to the
Depositor, the Master Servicer and the NIMS Insurer.

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

          SECTION 8.11. Appointment of Custodians.

          The Trustee may, with the consent of the Depositor and the Master
Servicer, appoint one or more Custodians to hold all or a portion of the
Mortgage Files as agent for the Trustee, by entering into a Custodial Agreement.
The appointment of any Custodian may at any time be terminated and a substitute
Custodian appointed therefor upon the reasonable request of the Master Servicer
to the Trustee, the consent to which shall not be unreasonably withheld. The
Trustee shall pay any and all fees and expenses of any Custodian in accordance
with each Custodial Agreement (provided that if expenses of the kind that would
be reimbursable to the Trustee pursuant to Section 8.05 if incurred by the
Trustee are incurred by the Custodian, the Trustee shall be entitled to
reimbursement under Section 8.05 for such kind of expenses to the extent the
Trustee has paid such expenses on behalf of the Custodian or for which the
Trustee has reimbursed the Custodian). The Trustee initially appoints the
Custodian as Custodian, and the Depositor and the Master Servicer consent to
such appointment. Subject to Article VIII hereof, the Trustee agrees to comply
with the terms of each Custodial Agreement and to enforce the terms and
provisions thereof against the Custodian for the benefit of the
Certificateholders having an interest in any Mortgage File held by such
Custodian. Each Custodian shall be a depository institution or trust company
subject to supervision by federal or state authority, shall have combined
capital and surplus of at least $10,000,000 and shall be qualified to do
business in the jurisdiction in which it holds any Mortgage

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File. Each Custodial Agreement may be amended only as provided in Section 11.01.
In no event shall the appointment of any Custodian pursuant to a Custodial
Agreement diminish the obligations of the Trustee hereunder.

          SECTION 8.12. Appointment of Office or Agency.

          The Trustee will designate an office or agency in the City of New York
where the Certificates may be surrendered for registration of transfer or
exchange, and presented for final distribution, and where notices and demands to
or upon the Trustee in respect of the Certificates and this Agreement may be
delivered. As of the Closing Date, the Trustee designates the office of its
agent located c/o DTC Transfer Agent Services, 55 Water Street, Jeanette Park
Entrance, New York, NY 10041 for such purposes.

          SECTION 8.13. Representations and Warranties of the Trustee.

          The Trustee hereby represents and warrants, solely as to itself, to
the Master Servicer and the Depositor, as of the Closing Date, that:

          (i) It is a national banking association duly organized, validly
     existing and in good standing under the laws of the United States.

          (ii) The execution and delivery of this Agreement by it, and the
     performance and compliance with the terms of this Agreement by it, will not
     violate its charter or bylaws or constitute a default (or an event which,
     with notice or lapse of time, or both, would constitute a default) under,
     or result in the breach of, any material agreement or other instrument to
     which it is a party or which is applicable to it or any of its assets.

          (iii) It has the full power and authority to enter into and consummate
     all transactions contemplated by this Agreement, has duly authorized the
     execution, delivery and performance of this Agreement, and has duly
     executed and delivered this Agreement.

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

          (v) It is not in violation of, and its execution and delivery of this
     Agreement and its performance and compliance with the terms of this
     Agreement will not constitute a violation of, any law, any order or decree
     of any court or arbiter, or any order, regulation or demand of any federal,
     state or local governmental or regulatory authority, which violation, in
     its good faith and reasonable judgment, is likely to affect materially and
     adversely either the ability of it to perform its obligations under this
     Agreement or its financial condition.

          (vi) No litigation is pending or, to the best knowledge, threatened
     against it which would prohibit it from entering into this Agreement or, in
     its good faith reasonable judgment,

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     is likely to materially and adversely affect either its ability to perform
     its obligations under this Agreement or its financial condition.

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                                   ARTICLE IX

                                   TERMINATION

          SECTION 9.01 Termination Upon Repurchase or Liquidation of All
                       Mortgage Loans.

          (a) Subject to Section 9.02, the respective obligations and
responsibilities under this Agreement of the Depositor, the Master Servicer and
the Trustee (other than the obligations of the Master Servicer to the Trustee
pursuant to Section 8.05 and of the Master Servicer to provide for and the
Trustee to make payments in respect of the REMIC I Regular Interests, the REMIC
II Regular Interests or the Classes of Certificates as hereinafter set forth)
shall terminate upon payment to the Certificateholders and the deposit of all
amounts held by or on behalf of the Trustee and required hereunder to be so paid
or deposited on the Distribution Date coinciding with or following the earlier
to occur of (i) the purchase by the Terminator (as defined below) of all
Mortgage Loans and each REO Property remaining in REMIC I and (ii) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan or REO Property remaining in REMIC I; provided, however, that in
no event shall the trust created hereby continue beyond the expiration of 21
years from the death of the last survivor of the descendants of Joseph P.
Kennedy, the late ambassador of the United States to the Court of St. James,
living on the date hereof. The purchase by the Terminator of all Mortgage Loans
and each REO Property remaining in REMIC I shall be at a price (the "Termination
Price") equal to the aggregate fair market value of all of the assets of REMIC I
(as determined by the Terminator and the Trustee, as of the close of business on
the third Business Day next preceding the date upon which notice of any such
termination is furnished to Certificateholders pursuant to the third paragraph
of this Section 9.01); provided, however, such option may only be exercised if
(a) the Termination Price is sufficient to pay all interest accrued on, as well
as amounts necessary to retire the principal balance of, each class of notes
issued pursuant to the Indenture and any amounts owed to the NIMS Insurer at the
time the option is exercised, and (b) the fair market value of the assets of
REMIC I described above is at least equal to the Stated Principal Balance of the
Mortgage Loans (after giving effect to scheduled payments of principal due
during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period) and the appraised value of the REO Properties.

          (b) The Master Servicer (or if the Master Servicer Fails to exercise
such right, the NIMS Insurer) shall have the right (the party exercising such
right, the "Terminator"), to purchase all of the Mortgage Loans and each REO
Property remaining in REMIC I pursuant to clause (i) of the preceding paragraph
no later than the Determination Date in the month immediately preceding the
Distribution Date on which the Certificates will be retired; provided, however,
that the Terminator may elect to purchase all of the Mortgage Loans and each REO
Property remaining in REMIC I pursuant to clause (i) above only (A) if the
aggregate Stated Principal Balance of the Mortgage Loans and each REO Property
remaining in the Trust Fund at the time of such election is less than 10% of the
aggregate Stated Principal Balance of the Initial Mortgage Loans as of the Cut-
off Date and (B) if the Terminator is the Master Servicer and is an affiliate of
the Originator, the Master Servicer shall have delivered to the Trustee and the
NIMS Insurer a written certification that the burdens of servicing the Mortgage
Loans and REO Properties remaining in REMIC I exceed the benefits of the
Servicing Fees that would be realized by the Master Servicer if it continued to
service

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such assets on behalf of the Trust Fund. By acceptance of the Residual
Certificates, the Holders of the Residual Certificates agree, in connection with
any termination hereunder, to assign and transfer any amounts in excess of par,
and to the extent received in respect of such termination, to pay any such
amounts to the Holders of the Class CE Certificates.

          (c) Notice of the liquidation of the REMIC I Regular Interests shall
be given promptly by the Trustee by letter to Certificateholders mailed (a) in
the event such notice is given in connection with the purchase of the Mortgage
Loans and each REO Property by the Terminator, not earlier than the 15th day and
not later than the 25th day of the month next preceding the month of the final
distribution on the Certificates or (b) otherwise during the month of such final
distribution on or before the Determination Date in such month, in each case
specifying (i) the Distribution Date upon which the Trust Fund will terminate
and final payment in respect of the REMIC I Regular Interests, the REMIC II
Regular Interests and the Certificates will be made upon presentation and
surrender of the related Certificates at the office of the Trustee therein
designated, (ii) the amount of any such final payment, (iii) that no interest
shall accrue in respect of the REMIC I Regular Interests, the REMIC II Regular
Interests or the Certificates from and after the Interest Accrual Period
relating to the final Distribution Date therefor and (iv) that the Record Date
otherwise applicable to such Distribution Date is not applicable, payments being
made only upon presentation and surrender of the Certificates at the office of
the Trustee. The Trustee shall give such notice to the Certificate Registrar at
the time such notice is given to Certificateholders. In the event such notice is
given in connection with the purchase of all of the Mortgage Loans and each REO
Property remaining in REMIC I by the Terminator, the Terminator shall deliver to
the Trustee for deposit in the Distribution Account not later than the last
Business Day preceding the final Distribution Date on the Certificates an amount
in immediately available funds equal to the above-described purchase price. Upon
certification to the Trustee by a Servicing Officer of the making of such final
deposit, the Trustee shall promptly release or cause to be released to the
Terminator the Mortgage Files for the remaining Mortgage Loans, and the Trustee
shall execute all assignments, endorsements and other instruments necessary to
effectuate such transfer.

          (d) Upon presentation of the Certificates by the Certificateholders on
the final Distribution Date, the Trustee shall distribute to each
Certificateholder so presenting and surrendering its Certificates the amount
otherwise distributable on such Distribution Date in accordance with Section
4.01 in respect of the Certificates so presented and surrendered. Any funds not
distributed to any Holder or Holders of Certificates being retired on such
Distribution Date because of the failure of such Holder or Holders to tender
their Certificates shall, on such date, be set aside and held in trust by the
Trustee and credited to the account of the appropriate non-tendering Holder or
Holders. If any Certificates as to which notice has been given pursuant to this
Section 9.01 shall not have been surrendered for cancellation within six months
after the time specified in such notice, the Trustee shall mail a second notice
to the remaining non-tendering Certificateholders to surrender their
Certificates for cancellation in order to receive the final distribution with
respect thereto. If within one year after the second notice all such
Certificates shall not have been surrendered for cancellation, the Trustee
shall, directly or through an agent, mail a final notice to remaining related
non-tendering Certificateholders concerning surrender of their Certificates. The
costs and expenses of maintaining the funds in trust and of contacting such
Certificateholders shall be paid out of the assets remaining in the trust funds.
If within one year after the final notice any such Certificates shall not have
been surrendered for cancellation, the Trustee shall pay to Deutsche Bank
Securities Inc. all such amounts, and all rights of non-tendering
Certificateholders in or to such

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amounts shall thereupon cease. No interest shall accrue or be payable to any
Certificateholder on any amount held in trust by the Trustee as a result of such
Certificateholder's failure to surrender its Certificate(s) for final payment
thereof in accordance with this Section 9.01.

          Immediately following the deposit of funds in trust hereunder in
respect of the Certificates, the Trust Fund shall terminate.

          SECTION 9.02 Additional Termination Requirements.

          (a) In the event that the Terminator purchases all the Mortgage Loans
and each REO Property or the final payment on or other liquidation of the last
Mortgage Loan or REO Property remaining in REMIC I pursuant to Section 9.01, the
Trust Fund shall be terminated in accordance with the following additional
requirements:

          (i) The Trustee shall specify the first day in the 90-day liquidation
     period in a statement attached to each Trust REMIC's final Tax Return
     pursuant to Treasury regulation Section 1.860F-1 and shall satisfy all
     requirements of a qualified liquidation under Section 860F of the Code and
     any regulations thereunder, as evidenced by an Opinion of Counsel obtained
     at the expense of the Terminator;

          (ii) During such 90-day liquidation period, and at or prior to the
     time of making of the final payment on the Certificates, the Trustee shall
     sell all of the assets of REMIC I to the Terminator for cash; and

          (iii) At the time of the making of the final payment on the
     Certificates, the Trustee shall distribute or credit, or cause to be
     distributed or credited, to the Holders of the Residual Certificates all
     cash on hand in the Trust Fund (other than cash retained to meet claims),
     and the Trust Fund shall terminate at that time.

          (b) At the expense of the applicable Terminator (or in the event of
termination under Section 9.01(a)(ii), at the expense of the Trust Fund), the
Trustee shall prepare or cause to be prepared the documentation required in
connection with the adoption of a plan of liquidation of each Trust REMIC
pursuant to this Section 9.02.

          (c) By their acceptance of Certificates, the Holders thereof hereby
agree to authorize the Trustee to specify the 90-day liquidation period for each
Trust REMIC which authorization shall be binding upon all successor
Certificateholders.

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                                    ARTICLE X

                                REMIC PROVISIONS

          SECTION 10.01. REMIC Administration.

          (a) The Trustee shall elect to treat each Trust REMIC as a REMIC under
the Code and, if necessary, under applicable state law. Each such election will
be made by the Trustee on Form 1066 or other appropriate federal tax or
information return or any appropriate state return for the taxable year ending
on the last day of the calendar year in which the Certificates are issued. For
the purposes of the REMIC election in respect of REMIC I, the REMIC I Regular
Interests shall be designated as the Regular Interests in REMIC I and the Class
R-I Interest shall be designated as the Residual Interest in REMIC I. The REMIC
II Regular Interests shall be designated as the Regular Interests in REMIC II
and the Class R-II Interest shall be designated as the Residual Interest in
REMIC II. The REMIC III Regular Interests shall be designated as the Regular
Interests in REMIC III and the Class R-III Interest shall be designated as the
Residual Interest in REMIC III. The Class A Certificates, the Mezzanine
Certificates, the Class S Certificates, the Class CE Certificates and the Class
P Certificates shall be designated as the Regular Interests in REMIC IV and the
Class R-IV Interest shall be designated as the Residual Interest in REMIC IV.
The Trustee shall not permit the creation of any "interests" in any Trust REMIC
(within the meaning of Section 860G of the Code) other than the REMIC I Regular
Interests, the REMIC II Regular Interests, the REMIC III Regular Interests and
the interests represented by the Certificates.

          (b) The Closing Date is hereby designated as the "Startup Day" of each
Trust REMIC within the meaning of Section 860G(a)(9) of the Code.

          (c) The Trustee shall pay out of its own funds, without any right of
reimbursement, any and all expenses relating to any tax audit of the Trust Fund
caused by the Trustee (including, but not limited to, any professional fees or
any administrative or judicial proceedings with respect to any Trust REMIC that
involve the Internal Revenue Service or state tax authorities), other than the
expense of obtaining any tax related Opinion of Counsel except as specified
herein. The Trustee, as agent for each Trust REMIC's tax matters person, shall
(i) act on behalf of the Trust Fund in relation to any tax matter or controversy
involving any Trust REMIC and (ii) represent the Trust Fund in any
administrative or judicial proceeding relating to an examination or audit by any
governmental taxing authority with respect thereto. The holder of the largest
Percentage Interest of each Class of Residual Certificates shall be designated,
in the manner provided under Treasury regulations section 1.860F-4(d) and
Treasury regulations section 301.6231(a)(7)-1, as the tax matters person of the
related REMIC created hereunder. By their acceptance thereof, the holder of the
largest Percentage Interest of the Residual Certificates hereby agrees to
irrevocably appoint the Trustee or an Affiliate as its agent to perform all of
the duties of the tax matters person for the Trust Fund.

          (d) The Trustee shall prepare, sign and file all of the Tax Returns in
respect of each REMIC created hereunder. The expenses of preparing and filing
such returns shall be borne by the Trustee without any right of reimbursement
therefor. The Master Servicer shall provide on a timely basis to the Trustee or
its designee such information with respect to the assets of the Trust

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Fund as is in its possession and reasonably required by the Trustee to enable it
to perform its obligations under this Article.

          (e) The Trustee shall perform on behalf of each Trust REMIC all
reporting and other tax compliance duties that are the responsibility of such
REMIC under the Code, the REMIC Provisions or other compliance guidance issued
by the Internal Revenue Service or any state or local taxing authority. Among
its other duties, as required by the Code, the REMIC Provisions or other such
compliance guidance, the Trustee shall provide (i) to any Transferor of a
Residual Certificate such information as is necessary for the application of any
tax relating to the transfer of a Residual Certificate to any Person who is not
a Permitted Transferee, (ii) to the Certificateholders such information or
reports as are required by the Code or the REMIC Provisions including reports
relating to interest, original issue discount and market discount or premium
(using the Prepayment Assumption as required) and (iii) to the Internal Revenue
Service the name, title, address and telephone number of the person who will
serve as the representative of each Trust REMIC. The Master Servicer shall
provide on a timely basis to the Trustee such information with respect to the
assets of the Trust Fund, including, without limitation, the Mortgage Loans, as
is in its possession and reasonably required by the Trustee to enable each of
them to perform their respective obligations under this subsection. In addition,
the Depositor shall provide or cause to be provided to the Trustee, within ten
(10) days after the Closing Date, all information or data that the Trustee
reasonably determines to be relevant for tax purposes as to the valuations and
issue prices of the Certificates, including, without limitation, the price,
yield, prepayment assumption and projected cash flow of the Certificates.

          (f) The Trustee shall take such action and shall cause each REMIC
created hereunder to take such action as shall be necessary to create or
maintain the status thereof as a REMIC under the REMIC Provisions (and the
Master Servicer shall assist it, to the extent reasonably requested by it). The
Trustee shall not take any action, cause the Trust Fund to take any action or
fail to take (or fail to cause to be taken) any action that, under the REMIC
Provisions, if taken or not taken, as the case may be, could (i) endanger the
status of any Trust REMIC as a REMIC or (ii) result in the imposition of a tax
upon the Trust Fund (including but not limited to the tax on prohibited
transactions as defined in Section 860F(a)(2) of the Code and the tax on
contributions to a REMIC set forth in Section 860G(d) of the Code) (either such
event, an "Adverse REMIC Event") unless the Trustee and the NIMS Insurer have
received an Opinion of Counsel, addressed to the Trustee (at the expense of the
party seeking to take such action but in no event at the expense of the Trustee)
to the effect that the contemplated action will not, with respect to any Trust
REMIC, endanger such status or result in the imposition of such a tax, nor shall
the Master Servicer take or fail to take any action (whether or not authorized
hereunder) as to which the Trustee and the NIMS Insurer has advised it in
writing that it has received an Opinion of Counsel to the effect that an Adverse
REMIC Event could occur with respect to such action. In addition, prior to
taking any action with respect to any Trust REMIC or the respective assets of
each, or causing any Trust REMIC to take any action, which is not contemplated
under the terms of this Agreement, the Master Servicer will consult with the
Trustee, the NIMS Insurer or its designee, in writing, with respect to whether
such action could cause an Adverse REMIC Event to occur with respect to any
Trust REMIC, and the Master Servicer shall not take any such action or cause any
Trust REMIC to take any such action as to which the Trustee or the NIMS Insurer
has advised it in writing that an Adverse REMIC Event could occur. The Trustee
or the NIMS Insurer may consult with counsel to make such written advice, and
the cost of same shall be borne by the party seeking to take the action not

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permitted by this Agreement, but in no event shall such cost be an expense of
the Trustee. At all times as may be required by the Code, the Master Servicer
(in its capacity as Originator) on behalf of the Trustee will ensure that
substantially all of the assets of any Trust REMIC will consist of "qualified
mortgages" as defined in Section 860G(a)(3) of the Code and "permitted
investments" as defined in Section 860G(a)(5) of the Code.

          (g) In the event that any tax is imposed on "prohibited transactions"
of any REMIC created hereunder as defined in Section 860F(a)(2) of the Code, on
the "net income from foreclosure property" of such REMIC as defined in Section
860G(c) of the Code, on any contributions to any such REMIC after the Startup
Day therefor pursuant to Section 860G(d) of the Code, or any other tax is
imposed by the Code or any applicable provisions of state or local tax laws,
such tax shall be charged (i) to the Trustee pursuant to Section 10.03 hereof,
if such tax arises out of or results from a breach by the Trustee of any of its
obligations under this Article X, (ii) to the Master Servicer pursuant to
Section 10.03 hereof, if such tax arises out of or results from a breach by the
Master Servicer of any of its obligations under Article III or this Article X,
or otherwise (iii) against amounts on deposit in the Distribution Account and
shall be paid by withdrawal therefrom.

          (h) On or before April 15th of each calendar year, commencing April
15, 2003, the Trustee shall deliver to the Master Servicer, the NIMS Insurer and
each Rating Agency a Certificate from a Responsible Officer of the Trustee
stating, without regard to any action taken by any party other than the Trustee,
the Trustee's compliance with this Article X.

          (i) The Trustee shall, for federal income tax purposes, maintain books
and records with respect to each Trust REMIC on a calendar year and on an
accrual basis. The Trustee will apply for an Employer Identification Number for
the Trust Fund from the Internal Revenue Service via a Form SS-4 or such other
form as is appropriate.

          (j) Following the Startup Day, the Trustee shall not accept any
contributions of assets to any Trust REMIC other than in connection with any
Qualified Substitute Mortgage Loan delivered in accordance with Section 2.03
unless it shall have received an Opinion of Counsel to the effect that the
inclusion of such assets in the Trust Fund will not cause the related REMIC to
fail to qualify as a REMIC at any time that any Certificates are outstanding or
subject such REMIC to any tax under the REMIC Provisions or other applicable
provisions of federal, state and local law or ordinances.

          (k) Neither the Trustee nor the Master Servicer shall enter into any
arrangement by which any Trust REMIC will receive a fee or other compensation
for services nor permit any such REMIC to receive any income from assets other
than the Mortgage Pool which are deemed to constitute "qualified mortgages" as
defined in Section 860G(a)(3) of the Code or "permitted investments" as defined
in Section 860G(a)(5) of the Code.

          SECTION 10.02. Prohibited Transactions and Activities.

          None of the Depositor, the Master Servicer or the Trustee shall sell,
dispose of or substitute for any of the Mortgage Loans (except in connection
with (i) the foreclosure of a Mortgage Loan, including but not limited to, the
acquisition or sale of a Mortgaged Property acquired by deed in lieu of
foreclosure, (ii) the bankruptcy of REMIC I, (iii) the termination of REMIC I
pursuant to

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Article IX of this Agreement, (iv) a substitution pursuant to Article II of this
Agreement or (v) a purchase of Mortgage Loans pursuant to Article II or III of
this Agreement), nor acquire any assets for any Trust REMIC (other than REO
Property acquired in respect of a defaulted Mortgage Loan), nor sell or dispose
of any investments in the Collection Account or the Distribution Account for
gain, nor accept any contributions to any Trust REMIC after the Closing Date
(other than a Qualified Substitute Mortgage Loan delivered in accordance with
Section 2.03), unless it has received an Opinion of Counsel, addressed to the
Trustee and the NIMS Insurer (at the expense of the party seeking to cause such
sale, disposition, substitution, acquisition or contribution but in no event at
the expense of the Trustee) that such sale, disposition, substitution,
acquisition or contribution will not (a) affect adversely the status of any
Trust REMIC as a REMIC or (b) cause any Trust REMIC to be subject to a tax on
"prohibited transactions" or "contributions" pursuant to the REMIC Provisions.

          SECTION 10.03. Master Servicer and Trustee Indemnification.

          (a) The Trustee agrees to indemnify the Trust Fund, the NIMS Insurer,
the Depositor and the Master Servicer for any taxes and costs including, without
limitation, any reasonable attorneys fees imposed on or incurred by the Trust
Fund, the Depositor, the Trustee or the Master Servicer, caused solely by the
Trustee's failure to act in accordance with its standard of care set forth in
this Article X or any state, local or franchise taxes imposed upon the Trust as
a result of the location of the Trustee.

          (b) The Master Servicer agrees to indemnify the Trust Fund, the NIMS
Insurer, the Depositor and the Trustee for any taxes and costs including,
without limitation, any reasonable attorneys' fees imposed on or incurred by the
Trust Fund, the Depositor or the Trustee, as a result of a breach of the Master
Servicer's covenants set forth in Article III or this Article X or any state,
local or franchise taxes imposed upon the Trust as a result of the location of
the Master Servicer or any subservicer.

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                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

          SECTION 11.01. Amendment.

          This Agreement or any Custodial Agreement may be amended from time to
time by the Depositor, the Master Servicer, the Trustee and, if applicable, the
Custodian with the consent of the NIMS Insurer and without the consent of any of
the Certificateholders, (i) to cure any ambiguity or defect, (ii) to correct,
modify or supplement any provisions herein (including to give effect to the
expectations of Certificateholders), or in any Custodial Agreement, or (iii) to
make any other provisions with respect to matters or questions arising under
this Agreement or in any Custodial Agreement which shall not be inconsistent
with the provisions of this Agreement or such Custodial Agreement, provided that
such action shall not, as evidenced by an Opinion of Counsel delivered to the
Trustee, adversely affect in any material respect the interests of any
Certificateholder, as evidenced by (i) an Opinion of Counsel delivered to the
Master Servicer and the Trustee or (ii) confirmation from the Rating Agencies
that such amendment will not result in the reduction or withdrawal of the rating
of any outstanding Class of Certificates. No amendment shall be deemed to
adversely affect in any material respect the interests of any Certificateholder
who shall have consented thereto, and no Opinion of Counsel shall be required to
address the effect of any such amendment on any such consenting
Certificateholder.

          This Agreement or any Custodial Agreement may also be amended from
time to time by the Depositor, the Master Servicer, the NIMS Insurer and the
Trustee with the consent of the NIMS Insurer and the Holders of Certificates
entitled to at least 66% of the Voting Rights for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Agreement or any Custodial Agreement or of modifying in any manner the
rights of the Holders of Certificates; provided, however, that no such amendment
shall (i) reduce in any manner the amount of, or delay the timing of, payments
received on Mortgage Loans which are required to be distributed on any
Certificate without the consent of the Holder of such Certificate, (ii)
adversely affect in any material respect the interests of the Holders of any
Class of Certificates (as evidenced by either (i) an Opinion of Counsel
delivered to the Trustee or (ii) written notice to the Depositor, the Servicer
and the Trustee from the Rating Agencies that such action will not result in the
reduction or withdrawal of the rating of any outstanding Class of Certificates
with respect to which it is a Rating Agency) in a manner other than as described
in (i), or (iii) modify the consents required by the immediately preceding
clauses (i) and (ii) without the consent of the Holders of all Certificates then
outstanding. Notwithstanding any other provision of this Agreement, for purposes
of the giving or withholding of consents pursuant to this Section 11.01,
Certificates registered in the name of the Depositor or the Master Servicer or
any Affiliate thereof shall be entitled to Voting Rights with respect to matters
affecting such Certificates.

          Notwithstanding any contrary provision of this Agreement, neither the
Trustee nor the NIMS Insurer shall consent to any amendment to this Agreement
unless it shall have first received an Opinion of Counsel satisfactory to the
NIMS Insurer to the effect that such amendment will not result in the imposition
of any tax on any Trust REMIC pursuant to the REMIC Provisions or cause any
Trust REMIC to fail to qualify as a REMIC at any time that any Certificates are
outstanding.

                                       159

<PAGE>

          Notwithstanding any of the other provisions of this Section 11.01,
none of the Depositor, the Master Servicer or the Trustee shall enter into any
amendment of this Agreement that would significantly change the permitted
activities of the Trust Fund without the consent of the NIMS Insurer and the
holders of Certificates that represent more than 50.00% of the aggregate
Certificate Principal Balance of all Certificates.

          Promptly after the execution of any such amendment the Trustee shall
furnish a copy of such amendment to each Certificateholder.

          It shall not be necessary for the consent of Certificateholders under
this Section 11.01 to approve the particular form of any proposed amendment, but
it shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Certificateholders shall be subject to such reasonable
regulations as the Trustee may prescribe.

          The cost of any Opinion of Counsel to be delivered pursuant to this
Section 11.01 shall be borne by the Person seeking the related amendment, but in
no event shall such Opinion of Counsel be an expense of the Trustee.

          The Trustee may, but shall not be obligated to enter into any
amendment pursuant to this Section that affects its respective rights, duties
and immunities under this Agreement or otherwise.

          SECTION 11.02. Recordation of Agreement; Counterparts.

          To the extent permitted by applicable law, this Agreement is subject
to recordation in all appropriate public offices for real property records in
all the counties or other comparable jurisdictions in which any or all of the
properties subject to the Mortgages are situated, and in any other appropriate
public recording office or elsewhere, such recordation to be effected by the
Master Servicer at the expense of the Certificateholders, but only upon
direction of the Trustee accompanied by an Opinion of Counsel to the effect that
such recordation materially and beneficially affects the interests of the
Certificateholders.

          For the purpose of facilitating the recordation of this Agreement as
herein provided and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original, and such counterparts shall constitute but one and
the same instrument.

          SECTION 11.03. Limitation on Rights of Certificateholders.

          The death or incapacity of any Certificateholder shall not operate to
terminate this Agreement or the Trust Fund, nor entitle such Certificateholder's
legal representatives or heirs to claim an accounting or to take any action or
proceeding in any court for a partition or winding up of the Trust Fund, nor
otherwise affect the rights, obligations and liabilities of the parties hereto
or any of them.

                                       160

<PAGE>

          No Certificateholder shall have any right to vote (except as expressly
provided for herein) or in any manner otherwise control the operation and
management of the Trust Fund, or the obligations of the parties hereto, nor
shall anything herein set forth, or contained in the terms of any of the
Certificates, be construed so as to constitute the Certificateholders from time
to time as partners or members of an association; nor shall any
Certificateholder be under any liability to any third person by reason of any
action taken by the parties to this Agreement pursuant to any provision hereof.

          No Certificateholder shall have any right by virtue of any provision
of this Agreement to institute any suit, action or proceeding in equity or at
law upon or under or with respect to this Agreement, unless (i) such Holder
previously shall have given to the Trustee a written notice of default and of
the continuance thereof, as hereinbefore provided, and (ii) the Holders of
Certificates entitled to at least 25% of the Voting Rights shall have made
written request upon the Trustee to institute such action, suit or proceeding in
the name of the Trustee hereunder and shall have offered to the Trustee such
reasonable indemnity as it may require against the costs, expenses and
liabilities to be incurred therein or thereby, and the Trustee, for 15 days
after its receipt of such notice, request and offer of indemnity, shall have
neglected or refused to institute any such action, suit or proceeding. It is
understood and intended, and expressly covenanted by each Certificateholder with
every other Certificateholder and the Trustee, that no one or more Holders of
Certificates shall have any right in any manner whatsoever by virtue of any
provision of this Agreement to affect, disturb or prejudice the rights of the
Holders of any other of such Certificates, or to obtain or seek to obtain
priority over or preference to any other such Holder, or to enforce any right
under this Agreement, except in the manner herein provided and for the equal,
ratable and common benefit of all Certificateholders. For the protection and
enforcement of the provisions of this Section, each and every Certificateholder
and the Trustee shall be entitled to such relief as can be given either at law
or in equity.

          SECTION 11.04. Governing Law.

          This Agreement shall be construed in accordance with the laws of the
State of New York and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws excluding the choice
of laws provisions therein.

          SECTION 11.05. Notices.

          All directions, demands, requests, authorizations and notices
hereunder shall be in writing and shall be deemed to have been duly given when
received if personally delivered at or mailed by first class mail, postage
prepaid, or by express delivery service, facsimile, electronic mail or delivered
in any other manner specified herein, to (a) in the case of the Depositor, 1100
Town & Country Road, Suite 1100, Orange, California 92868, Attention: Capital
Markets (telecopy number (714) 245-0198), or such other address or telecopy
number as may hereafter be furnished to the Master Servicer, the NIMS Insurer
and the Trustee in writing by the Depositor, (b) in the case of the Master
Servicer, 1100 Town & Country Road, 11th Floor, Orange, California 92868,
Attention: General Counsel (telecopy number: (714) 564-9639), or such other
address or telecopy number as may hereafter be furnished to the Trustee, the
NIMS Insurer and the Depositor in writing by the Master Servicer, (c) in the
case of the Trustee, Deutsche Bank National Trust Company, 1761 East St. Andrew
Place, Santa Ana, CA 92705-4934, Attention: Trust Administration-AQ0205
(telecopy

                                       161

<PAGE>

number: (714) 247-6009), or such other address or telecopy number as may
hereafter be furnished to the Master Servicer, the NIMS Insurer and the
Depositor in writing by the Trustee and (d) in the case of the NIMS Insurer,
such address furnished to the Depositor, the Master Servicer and the Trustee in
writing by the NIMS Insurer. Any notice required or permitted to be given to a
Certificateholder shall be given by first class mail, postage prepaid, at the
address of such Holder as shown in the Certificate Register. Any notice so
mailed within the time prescribed in this Agreement shall be conclusively
presumed to have been duly given when mailed, whether or not the
Certificateholder receives such notice. A copy of any notice required to be
telecopied hereunder also shall be mailed to the appropriate party in the manner
set forth above.

          SECTION 11.06. Severability of Provisions.

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

          SECTION 11.07. Notice to Rating Agencies and the NIMS Insurer.

          The Trustee shall use its best efforts promptly to provide notice to
the Rating Agencies and the NIMS Insurer with respect to each of the following
of which it has actual knowledge:

          1. Any material change or amendment to this Agreement;

          2. The occurrence of any Master Servicer Event of Default that has not
     been cured or waived;

          3. The resignation or termination of the Master Servicer or the
     Trustee;

          4. The repurchase or substitution of Mortgage Loans pursuant to or as
     contemplated by Section 2.03;

          5. The final payment to the Holders of any Class of Certificates;

          6. Any change in the location of the Collection Account or the
     Distribution Account;

          7. Any event that would result in the inability of the Trustee, were
     it to succeed as Master Servicer, to make advances regarding delinquent
     Mortgage Loans; and

          8. The filing of any claim under the Master Servicer's blanket bond
     and errors and omissions insurance policy required by Section 3.09 or the
     cancellation or material modification of coverage under any such
     instrument.

                                       162

<PAGE>

          In addition, the Trustee shall promptly furnish to each Rating Agency
and the NIMS Insurer copies of each report to Certificateholders described in
Section 4.02 and the Master Servicer, as required pursuant to Section 3.19 and
Section 3.20, shall promptly furnish to each Rating Agency copies of the
following:

          1. Each annual statement as to compliance described in Section 3.19;
     and

          2. Each annual independent public accountants' servicing report
     described in Section 3.20.

          Any such notice pursuant to this Section 11.07 shall be in writing and
shall be deemed to have been duly given if personally delivered at or mailed by
first class mail, postage prepaid, or by express delivery service to Moody's
Investors Service, 99 Church Street, New York, New York 10007, to Fitch Ratings,
1 State Street Plaza, New York, New York 10004 and to Standard & Poor's, a
division of the McGraw-Hill Companies, Inc., 25 Broadway, New York, New York
10004, or such other addresses as the Rating Agencies may designate in writing
to the parties hereto.

          SECTION 11.08. Article and Section References.

          All article and section references used in this Agreement, unless
otherwise provided, are to articles and sections in this Agreement.

          SECTION 11.09. Grant of Security Interest.

          It is the express intent of the parties hereto that the conveyance of
the Mortgage Loans by the Depositor to the Trustee be, and be construed as, a
sale of the Mortgage Loans by the Depositor and not a pledge of the Mortgage
Loans by the Depositor to secure a debt or other obligation of the Depositor or
the Originator. However, in the event that, notwithstanding the aforementioned
intent of the parties, the Mortgage Loans are held to be property of the
Depositor or the Originator, then, (a) it is the express intent of the parties
that such conveyance be deemed a pledge of the Mortgage Loans by the Depositor
to the Trustee to secure a debt or other obligation of the Depositor or the
Originator and (b)(1) this Agreement shall also be deemed to be a security
agreement within the meaning of Articles 8 and 9 of the Uniform Commercial Code
as in effect from time to time in the State of New York; (2) the conveyance
provided for in Section 2.01 hereof shall be deemed to be a grant by the
Originator and the Depositor to the Trustee of a security interest in all of the
Originator's and the Depositor's right, title and interest in and to the
Mortgage Loans and all amounts payable to the holders of the Mortgage Loans in
accordance with the terms thereof and all proceeds of the conversion, voluntary
or involuntary, of the foregoing into cash, instruments, securities or other
property, including without limitation all amounts, other than investment
earnings, from time to time held or invested in the Collection Account and the
Distribution Account, whether in the form of cash, instruments, securities or
other property; (3) the obligations secured by such security agreement shall be
deemed to be all of the Depositor's obligations under this Agreement, including
the obligation to provide to the Certificateholders the benefits of this
Agreement relating to the Mortgage Loans and the Trust Fund; and (4)
notifications to persons holding such property, and acknowledgments, receipts or
confirmations from persons holding such property, shall be deemed notifications
to, or acknowledgments, receipts or confirmations from, financial
intermediaries, bailees or agents (as applicable) of the Trustee for the purpose
of perfecting such

                                       163

<PAGE>

security interest under applicable law. Accordingly, the Depositor hereby grants
to the Trustee a security interest in the Mortgage Loans and all other property
described in clause (2) of the preceding sentence, for the purpose of securing
to the Trustee the performance by the Depositor of the obliga tions described in
clause (3) of the preceding sentence. Notwithstanding the foregoing, the parties
hereto intend the conveyance pursuant to Section 2.01 and the transfer pursuant
to the Mortgage Loan Purchase Agreement to be a true, absolute and unconditional
sale of the Mortgage Loans and assets constituting the Trust Fund by the
Depositor to the Trustee.

          SECTION 11.10 Third Party Rights.

          The NIMS Insurer shall be deemed a third-party beneficiary of this
Agreement to the same extent as if it were a party hereto, and shall have the
right to enforce the provisions of this Agreement.

                                       164

<PAGE>

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

                                         AMERIQUEST MORTGAGE SECURITIES INC.,
                                         as Depositor

                                         By:       /s/ John P. Grazer
                                            ------------------------------------
                                         Name:         John P. Grazer
                                         Title:        CFO

                                         AMERIQUEST MORTGAGE COMPANY,
                                           as Master Servicer

                                         By:       /s/ John P. Grazer
                                            ------------------------------------
                                         Name:     John P. Grazer
                                         Title:    CFO/EVP

                                         DEUTSCHE BANK NATIONAL TRUST COMPANY,
                                         as Trustee

                                         By:       /s/ Ronaldo Reyes
                                            ------------------------------------
                                         Name:         Ronaldo Reyes
                                         Title:        Associate

                                         By:       /s/ James F. Noriega
                                            ------------------------------------
                                         Name:         James F. Noriega
                                         Title:        Associate

<PAGE>

STATE OF CALIFORNIA     )
                        ) ss.:
COUNTY OF ORANGE        )

          On the ___ day of November 2002, before me, a notary public in and for
said State, personally appeared ____________, known to me to be an
________________ of Ameriquest Mortgage Securities Inc., one of the corporations
that executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

          IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                            ------------------------------------
                                                       Notary Public

[Notarial Seal]

<PAGE>

STATE OF CALIFORNIA  )
                     ) ss.:
COUNTY OF ORANGE     )

          On the __th day of November 2002, before me, a notary public in and
for said State, personally appeared __________________, known to me to be a
_________________ of Ameriquest Mortgage Company, one of the corporations that
executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

          IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                            ------------------------------------
                                                      Notary Public

[Notarial Seal]

<PAGE>

STATE OF CALIFORNIA  )
                     ) ss.:
COUNTY OF            )

          On the ___ day of November 2002, before me, a notary public in and for
said State, personally appeared _________________, known to me to be an
____________________ of Deutsche Bank National Trust Company, one of the
entities that executed the within instrument, and also known to me to be the
person who executed it on behalf of said corporation, and acknowledged to me
that such entity executed the within instrument.

          IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                            ------------------------------------
                                                        Notary Public

[Notarial Seal]

<PAGE>

                                   EXHIBIT A-1

                         FORM OF CLASS AF-1 CERTIFICATE

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
     "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT,"
     AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D
     OF THE INTERNAL REVENUE CODE OF 1986 (THE "CODE").

Series 2002-5, Class AF-1                      Aggregate Certificate Principal
                                               Balance of the Class AF-1
                                               Certificates as of the Issue
Pass-Through Rate: _______% per annum Date:    $______________

Date of Pooling and Servicing Agreement        Denomination:  $_________________
and Cut-off Date: December 1, 2002
                                               Master Servicer:  Ameriquest
First Distribution Date: January 27, 2003      Mortgage Company

No. 1                                          Trustee: Deutsche Bank National
                                               Trust Company

                                               Issue Date: December 5, 2002

                                               CUSIP:_________________

     DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
     THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN.
     ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF
     AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE AS THE
     DENOMINATION OF THIS CERTIFICATE.

                                      A-1-1

<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a Trust Fund (the "Trust Fund")
consisting primarily of a pool of conventional one- to four-family
adjustable-rate and fixed-rate first lien mortgage loans (the "Mortgage Loans")
formed and sold by

                       AMERIQUEST MORTGAGE SECURITIES INC.

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
     AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE
     TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
     CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY
     AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

          This certifies that ______________ is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class AF-1 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class AF-1 Certificates in REMIC III created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

          Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class AF-1 Certificates on such Distribution
Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

          The Pass-Through Rate with respect to this Certificate and any
Distribution Date is the lesser of (x)[_____]% per annum in the case of each
Distribution Date through and including the

                                      A-1-2

<PAGE>

Distribution Date on which the aggregate principal balance of the Mortgage Loans
(and properties acquired in respect thereof) remaining in the Trust Fund is
reduced to less than 10% of the sum of the aggregate principal balance of the
Initial Mortgage Loans as of the Cut-off Date and the Original Pre-Funded
Amounts, or [_____]% per annum, in the case of any Distribution Date thereafter
and (y) the Pool Net WAC Pass-Through Rate for such class for such Distribution
Date.

          This Certificate is one of a duly authorized issue of Certificates
designated as Asset- Backed Pass-Through Certificates of the Series specified on
the face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates specified on the face hereof equal to the
denomination specified on the face hereof divided by the aggregate Certificate
Principal Balance of the Class of Certificates specified on the face hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee and
the Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

          No service charge will be made for any such registration of transfer
or exchange of Certificates, but the Trustee may require payment of a sum
sufficient to cover any tax or other

                                      A-1-3

<PAGE>

governmental charge that may be imposed in connection with any transfer or
exchange of Certificates.

          The Depositor, the Master Servicer, the Trustee and the Certificate
Registrar and any agent of the Depositor, the Master Servicer, the Trustee or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Depositor, the
Master Servicer, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan remaining in REMIC I,
and (ii) the purchase by the party designated in the Agreement at a price
determined as provided in the Agreement from REMIC I of all the Mortgage Loans
and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than 10% of the sum of the
aggregate Stated Principal Balance of the Initial Mortgage Loans at the Cut- off
Date and the Original Pre-Funded Amounts.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-1-4

<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: December  __, 2002

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Trustee

                                               By:__________________________
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Certificate Registrar

                                               By:__________________________
                                                     Authorized Signatory

                                                       A-1-5

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM - as tenants in common           UNIF GIFT MIN ACT -     CUSTODIAN
                                                            -------------------
TEN ENT - as tenants by the entireties                       (Cust)   (Minor)
                                                             under Uniform Gifts
JT TEN -  as joint tenants with right if                     to Minors Act
          survivorship and not as tenants                    ________________
          in common                                                (State)

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed
Pass-Through Certificate and hereby authorize(s) the registration of transfer of
such interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:__________________________
________________________________________________________________________________

Dated:

                                          ______________________________________
                                          Signature by or on behalf of assignor

                                          ______________________________________
                                          Signature Guaranteed

                                      A-1-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of
distribution:

          Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

     This information is provided by _____________________________________, the
assignee named above, or ____________________________________, as its agent.

                                      A-1-7

<PAGE>

                                   EXHIBIT A-2

                         FORM OF CLASS AF-2 CERTIFICATE

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
     "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT,"
     AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D
     OF THE INTERNAL REVENUE CODE OF 1986 (THE "CODE").

Series 2002-5, Class AF-2                      Aggregate Certificate Principal
                                               Balance of the Class AF-2
                                               Certificates as of the Issue
                                               Date:
Pass-Through Rate: _______% per annum          $______________

Date of Pooling and Servicing Agreement        Denomination:  $_________________
and Cut-off Date: December 1, 2002
                                               Master Servicer:  Ameriquest
First Distribution Date: January 27, 2003      Mortgage Company

No. 1                                          Trustee: Deutsche Bank National
                                               Trust Company

                                               Issue Date: December 5, 2002

                                               CUSIP:_________________

     DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
     THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN.
     ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF
     AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE AS THE
     DENOMINATION OF THIS CERTIFICATE.

                                      A-1-8

<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a Trust Fund (the "Trust Fund")
consisting primarily of a pool of conventional one- to four-family
adjustable-rate and fixed-rate first lien mortgage loans (the "Mortgage Loans")
formed and sold by

                       AMERIQUEST MORTGAGE SECURITIES INC.

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
     AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE
     TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
     CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY
     AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

          This certifies that ______________ is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class AF-1 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class AF-1 Certificates in REMIC III created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

          Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class AF-1 Certificates on such Distribution
Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

          The Pass-Through Rate with respect to this Certificate and any
Distribution Date is the lesser of (x) [_____]% per annum in the case of each
Distribution Date through and including

                                      A-1-9

<PAGE>

the Distribution Date on which the aggregate principal balance of the Mortgage
Loans (and properties acquired in respect thereof) remaining in the Trust Fund
is reduced to less than 10% of the sum of the aggregate principal balance of the
Initial Mortgage Loans as of the Cut-off Date and the Original Pre-Funded
Amounts, or [____]% per annum, in the case of any Distribution Date thereafter
and (y) the Pool Net WAC Pass-Through Rate for such class for such Distribution
Date.

          This Certificate is one of a duly authorized issue of Certificates
designated as Asset- Backed Pass-Through Certificates of the Series specified on
the face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates specified on the face hereof equal to the
denomination specified on the face hereof divided by the aggregate Certificate
Principal Balance of the Class of Certificates specified on the face hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee and
the Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

          No service charge will be made for any such registration of transfer
or exchange of Certificates, but the Trustee may require payment of a sum
sufficient to cover any tax or other

                                     A-1-10

<PAGE>

governmental charge that may be imposed in connection with any transfer or
exchange of Certificates.

          The Depositor, the Master Servicer, the Trustee and the Certificate
Registrar and any agent of the Depositor, the Master Servicer, the Trustee or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Depositor, the
Master Servicer, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan remaining in REMIC I,
and (ii) the purchase by the party designated in the Agreement at a price
determined as provided in the Agreement from REMIC I of all the Mortgage Loans
and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than 10% of the sum of the
aggregate Stated Principal Balance of the Initial Mortgage Loans at the Cut- off
Date and the Original Pre-Funded Amounts.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-1-11

<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: December  __, 2002

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Trustee

                                               By:__________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Certificate Registrar

                                               By:__________________________
                                                     Authorized Signatory

                                     A-1-12

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM - as tenants in common           UNIF GIFT MIN ACT -     CUSTODIAN
                                                             -------------------
TEN ENT - as tenants by the entireties                       (Cust)   (Minor)
                                                             under Uniform Gifts
JT TEN -  as joint tenants with right if                     to Minors Act
          survivorship and not as tenants                    _________________
          in common                                              (State)

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed
Pass-Through Certificate and hereby authorize(s) the registration of transfer of
such interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:__________________________
________________________________________________________________________________

Dated:

                                          _____________________________________
                                          Signature by or on behalf of assignor

                                          _____________________________________
                                          Signature Guaranteed

                                     A-1-13

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of
distribution:

          Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

     This information is provided by _____________________________________, the
assignee named above, or ____________________________________, as its agent.

                                     A-1-14

<PAGE>

                                   EXHIBIT A-3

                         FORM OF CLASS AF-3 CERTIFICATE

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
     "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT,"
     AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D
     OF THE INTERNAL REVENUE CODE OF 1986 (THE "CODE").

Series 2002-5, Class AF-3                      Aggregate Certificate Principal
                                               Balance of the Class AF-3
                                               Certificates as of the Issue
                                               Date:
Pass-Through Rate: _______% per annum          $______________

Date of Pooling and Servicing Agreement        Denomination:  $_________________
and Cut-off Date: December 1, 2002
                                               Master Servicer:  Ameriquest
First Distribution Date: January 27, 2003      Mortgage Company

No. 1                                          Trustee: Deutsche Bank National
                                               Trust Company

                                               Issue Date: December 5, 2002

                                               CUSIP:_________________

     DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE
     OF THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN.
     ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF
     AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE AS THE
     DENOMINATION OF THIS CERTIFICATE.

                                     A-1-15

<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a Trust Fund (the "Trust Fund")
consisting primarily of a pool of conventional one- to four-family
adjustable-rate and fixed-rate first lien mortgage loans (the "Mortgage Loans")
formed and sold by

                       AMERIQUEST MORTGAGE SECURITIES INC.

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST
     IN AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE
     TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
     CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY
     ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

          This certifies that ______________ is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class AF-1 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class AF-1 Certificates in REMIC III created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

          Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class AF-1 Certificates on such Distribution
Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

          The Pass-Through Rate with respect to this Certificate and any
Distribution Date is the lesser of (x) [____]% per annum in the case of each
Distribution Date through and including the

                                     A-1-16

<PAGE>

Distribution Date on which the aggregate principal balance of the Mortgage Loans
(and properties acquired in respect thereof) remaining in the Trust Fund is
reduced to less than 10% of the sum of the aggregate principal balance of the
Initial Mortgage Loans as of the Cut-off Date and the Original Pre-Funded
Amounts, or [___]% per annum, in the case of any Distribution Date thereafter
and (y) the Pool Net WAC Pass-Through Rate for such class for such Distribution
Date.

          This Certificate is one of a duly authorized issue of Certificates
designated as Asset- Backed Pass-Through Certificates of the Series specified on
the face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates specified on the face hereof equal to the
denomination specified on the face hereof divided by the aggregate Certificate
Principal Balance of the Class of Certificates specified on the face hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee and
the Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

          No service charge will be made for any such registration of transfer
or exchange of Certificates, but the Trustee may require payment of a sum
sufficient to cover any tax or other

                                     A-1-17

<PAGE>

governmental charge that may be imposed in connection with any transfer or
exchange of Certificates.

          The Depositor, the Master Servicer, the Trustee and the Certificate
Registrar and any agent of the Depositor, the Master Servicer, the Trustee or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Depositor, the
Master Servicer, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan remaining in REMIC I,
and (ii) the purchase by the party designated in the Agreement at a price
determined as provided in the Agreement from REMIC I of all the Mortgage Loans
and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than 10% of the sum of the
aggregate Stated Principal Balance of the Initial Mortgage Loans at the Cut- off
Date and the Original Pre-Funded Amounts.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-1-18

<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: December  __, 2002

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Trustee

                                               By:__________________________
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Certificate Registrar

                                               By:__________________________
                                                     Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM - as tenants in common           UNIF GIFT MIN ACT -      CUSTODIAN
                                                             -------------------
TEN ENT - as tenants by the entireties                       (Cust)   (Minor)
                                                             under Uniform Gifts
JT TEN -  as joint tenants with right if                     to Minors Act
          survivorship and not as tenants                     _________________
          in common                                                   (State)

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto ______________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed
Pass-Through Certificate and hereby authorize(s) the registration of transfer of
such interest to assignee on the Certificate Register of the Trust Fund.

          I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:_________________________
_______________________________________________________________________________

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                     A-1-20

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of
distribution:

          Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

     This information is provided by __________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                     A-1-21

<PAGE>

                                   EXHIBIT A-4

                         FORM OF CLASS AF-4 CERTIFICATE

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
     "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT,"
     AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND
     860D OF THE INTERNAL REVENUE CODE OF 1986 (THE "CODE").

Series 2002-5, Class AF-4                      Aggregate Certificate Principal
                                               Balance of the Class AF-4
                                               Certificates as of the Issue
                                               Date:
Pass-Through Rate: _______% per annum          $______________

Date of Pooling and Servicing Agreement        Denomination:  $_________________
and Cut-off Date: December 1, 2002
                                               Master Servicer:  Ameriquest
First Distribution Date: January 27, 2003      Mortgage Company

No. 1                                          Trustee: Deutsche Bank National
                                               Trust Company

                                               Issue Date: December 5, 2002

                                               CUSIP:_________________

     DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE
     OF THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN.
     ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF
     AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE AS THE
     DENOMINATION OF THIS CERTIFICATE.

                                      A-2-1

<PAGE>

ASSET-BACKED PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a Trust Fund (the "Trust Fund")
consisting primarily of a pool of conventional one- to four-family
adjustable-rate and fixed-rate first lien mortgage loans (the "Mortgage Loans")
formed and sold by

                       AMERIQUEST MORTGAGE SECURITIES INC.

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST
     IN AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE
     TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
     CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY
     ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

          This certifies that ______________ is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class AF-1 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class AF-1 Certificates in REMIC III created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

          Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class AF-1 Certificates on such Distribution
Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

          The Pass-Through Rate with respect to this Certificate and any
Distribution Date is the lesser of (x) [____]% per annum in the case of each
Distribution Date through and including the

                                      A-2-2

<PAGE>

Distribution Date on which the aggregate principal balance of the Mortgage Loans
(and properties acquired in respect thereof) remaining in the Trust Fund is
reduced to less than 10% of the sum of the aggregate principal balance of the
Initial Mortgage Loans as of the Cut-off Date and the Original Pre-Funded
Amounts, or [____]% per annum, in the case of any Distribution Date thereafter
and (y) the Pool Net WAC Pass-Through Rate for such class for such Distribution
Date.

          This Certificate is one of a duly authorized issue of Certificates
designated as Asset- Backed Pass-Through Certificates of the Series specified on
the face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates specified on the face hereof equal to the
denomination specified on the face hereof divided by the aggregate Certificate
Principal Balance of the Class of Certificates specified on the face hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee and
the Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

          No service charge will be made for any such registration of transfer
or exchange of Certificates, but the Trustee may require payment of a sum
sufficient to cover any tax or other

                                      A-2-3

<PAGE>

governmental charge that may be imposed in connection with any transfer or
exchange of Certificates.

          The Depositor, the Master Servicer, the Trustee and the Certificate
Registrar and any agent of the Depositor, the Master Servicer, the Trustee or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Depositor, the
Master Servicer, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan remaining in REMIC I,
and (ii) the purchase by the party designated in the Agreement at a price
determined as provided in the Agreement from REMIC I of all the Mortgage Loans
and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than 10% of the sum of the
aggregate Stated Principal Balance of the Initial Mortgage Loans at the Cut- off
Date and the Original Pre-Funded Amounts.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-2-4

<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: December  __, 2002

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Trustee

                                               By:__________________________
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Certificate Registrar

                                               By:__________________________
                                                      Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM - as tenants in common           UNIF GIFT MIN ACT -      CUSTODIAN
                                                             -------------------
TEN ENT - as tenants by the entireties                       (Cust)   (Minor)
                                                             under Uniform Gifts
JT TEN -  as joint tenants with right if                     to Minors Act
          survivorship and not as tenants                     _________________
          in common                                                   (State)

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
___________________))___________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed
Pass-Through Certificate and hereby authorize(s) the registration of transfer of
such interest to assignee on the Certificate Register of the Trust Fund.

          I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:__________________________
________________________________________________________________________________

Dated:

                                         _____________________________________
                                         Signature by or on behalf of assignor

                                         _____________________________________
                                         Signature Guaranteed

                                      A-2-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of
distribution:

          Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

     This information is provided by _________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                      A-2-7

<PAGE>

                                   EXHIBIT A-5

                         FORM OF CLASS AV-1 CERTIFICATE

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
     "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT,"
     AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND
     860D OF THE INTERNAL REVENUE CODE OF 1986 (THE "CODE").

Series 2002-5, Class AV-1                      Aggregate Certificate Principal
                                               Balance of the Class AV-1
                                               Certificates as of the Issue
                                               Date:
Pass-Through Rate: Variable                    $_________________

Date of Pooling and Servicing Agreement        Denomination:  $_________________
and Cut-off Date: December 1, 2002
                                               Master Servicer:  Ameriquest
First Distribution Date: January 27, 2003      Mortgage Company

No. 1                                          Trustee: Deutsche Bank National
                                               Trust Company

                                               Issue Date: December 5, 2002

                                               CUSIP:

     DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE
     OF THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN.
     ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF
     AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE AS THE
     DENOMINATION OF THIS CERTIFICATE.

                                      A-2-8

<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

         evidencing a beneficial ownership interest in a Trust Fund (the
      "Trust Fund") consisting primarily of a pool of conventional one- to
   four-family adjustable-rate and fixed-rate first lien mortgage loans (the
                      "Mortgage Loans") formed and sold by

                       AMERIQUEST MORTGAGE SECURITIES INC.

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST
     IN AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE
     TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
     CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY
     ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

          This certifies that ___________ is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class AV-1 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class AV-1 Certificates in REMIC III created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

          Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class AV-1 Certificates on such Distribution
Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                      A-2-9

<PAGE>

          The Pass-Through Rate applicable to the calculation of interest
payable with respect to this Certificate on any Distribution Date shall be the
lesser of (x) the related Formula Rate for such Distribution Date and (y) the
Net WAC Pass-Through Rate for such Distribution Date. For any Distribution Date
and this Certificate, the Formula Rate is the lesser of (i) One- Month LIBOR
plus the Certificate Margin and (ii) the Maximum Cap Rate. The Certificate
Margin for this Certificate is with respect to this Certificate is [____]% in
the case of each Distribution Date through and including the Distribution Date
on which the aggregate principal balance of the Mortgage Loans (and properties
acquired in respect thereof) remaining in the Trust is reduced to less than 10%
of the sum of the aggregate Stated Principal Balance of the Initial Mortgage
Loans at the Cut-off Date and the Original Pre-Funded Amounts, or [____]% in the
case of any Distribution Date thereafter.

          This Certificate is one of a duly authorized issue of Certificates
designated as Asset-Backed Pass-Through Certificates of the Series specified on
the face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates specified on the face hereof equal to the
denomination specified on the face hereof divided by the aggregate Certificate
Principal Balance of the Class of Certificates specified on the face hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee and
the Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

                                     A-2-10

<PAGE>

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

          The Depositor, the Master Servicer, the Trustee and the Certificate
Registrar and any agent of the Depositor, the Master Servicer, the Trustee or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Depositor, the
Master Servicer, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan remaining in REMIC I,
and (ii) the purchase by the party designated in the Agreement at a price
determined as provided in the Agreement from REMIC I of all the Mortgage Loans
and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than 10% of the sum of the
aggregate Stated Principal Balance of the Initial Mortgage Loans at the Cut-off
Date and the Original Pre-Funded Amounts.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-2-11

<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: December __, 2002

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Trustee

                                               By:__________________________
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                                DEUTSCHE BANK NATIONAL
                                                TRUST COMPANY
                                                as Certificate Registrar

                                                By:__________________________
                                                       Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM - as tenants in common           UNIF GIFT MIN ACT -     CUSTODIAN
                                                             -------------------
TEN ENT - as tenants by the entireties                       (Cust)   (Minor)
                                                             under Uniform Gifts
JT TEN -  as joint tenants with right if                     to Minors Act
          survivorship and not as tenants                     _________________
          in common                                                (State)

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

          I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:__________________________
________________________________________________________________________________

Dated:

                                          _____________________________________
                                          Signature by or on behalf of assignor

                                          _____________________________________
                                          Signature Guaranteed

                                     A-2-13

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of
distribution:

          Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

     This information is provided by __________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                     A-2-14

<PAGE>

                                   EXHIBIT A-6

                         FORM OF CLASS AV-2 CERTIFICATE

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
     "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT,"
     AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND
     860D OF THE INTERNAL REVENUE CODE OF 1986 (THE "CODE").

Series 2002-5, Class AV-2                      Aggregate Certificate Principal
                                               Balance of the Class AV-2
                                               Certificates as of the Issue
                                               Date:
Pass-Through Rate: Variable                    $_________________

Date of Pooling and Servicing Agreement        Denomination:  $_________________
and Cut-off Date: December 1, 2002
                                               Master Servicer:  Ameriquest
First Distribution Date: January 27, 2003      Mortgage Company

No. 1                                          Trustee: Deutsche Bank National
                                               Trust Company

                                               Issue Date: December 5, 2002

                                               CUSIP:

     DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
     THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN.
     ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF
     AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE AS THE
     DENOMINATION OF THIS CERTIFICATE.

                                     A-2-15

<PAGE>

ASSET-BACKED PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a Trust Fund (the "Trust Fund")
consisting primarily of a pool of conventional one- to four-family
adjustable-rate and fixed-rate first lien mortgage loans (the "Mortgage Loans")
formed and sold by

                       AMERIQUEST MORTGAGE SECURITIES INC.

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST
     IN AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE
     TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
     CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY
     ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

          This certifies that ___________ is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class AV-1 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class AV-1 Certificates in REMIC III created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

          Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class AV-1 Certificates on such Distribution
Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                     A-2-16

<PAGE>

          The Pass-Through Rate applicable to the calculation of interest
payable with respect to this Certificate on any Distribution Date shall be the
lesser of (x) the related Formula Rate for such Distribution Date and (y) the
Net WAC Pass-Through Rate for such Distribution Date. For any Distribution Date
and this Certificate, the Formula Rate is the lesser of (i) One- Month LIBOR
plus the Certificate Margin and (ii) the Maximum Cap Rate. The Certificate
Margin for this Certificate is with respect to this Certificate is [____]% in
the case of each Distribution Date through and including the Distribution Date
on which the aggregate principal balance of the Mortgage Loans (and properties
acquired in respect thereof) remaining in the Trust is reduced to less than 10%
of the sum of the aggregate Stated Principal Balance of the Initial Mortgage
Loans at the Cut-off Date and the Original Pre-Funded Amounts, or [____]% in the
case of any Distribution Date thereafter.

          This Certificate is one of a duly authorized issue of Certificates
designated as Asset-Backed Pass-Through Certificates of the Series specified on
the face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates specified on the face hereof equal to the
denomination specified on the face hereof divided by the aggregate Certificate
Principal Balance of the Class of Certificates specified on the face hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee and
the Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

                                     A-2-17

<PAGE>

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

          The Depositor, the Master Servicer, the Trustee and the Certificate
Registrar and any agent of the Depositor, the Master Servicer, the Trustee or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Depositor, the
Master Servicer, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan remaining in REMIC I,
and (ii) the purchase by the party designated in the Agreement at a price
determined as provided in the Agreement from REMIC I of all the Mortgage Loans
and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than 10% of the sum of the
aggregate Stated Principal Balance of the Initial Mortgage Loans at the Cut-off
Date and the Original Pre-Funded Amounts.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-2-18

<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: December __, 2002

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Trustee

                                               By:____________________________
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Certificate Registrar

                                               By:_____________________________
                                                      Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM - as tenants in common           UNIF GIFT MIN ACT -       CUSTODIAN
                                                             -------------------
TEN ENT - as tenants by the entireties                       (Cust)   (Minor)
                                                             under Uniform Gifts
JT TEN -  as joint tenants with right if                     to Minors Act
          survivorship and not as tenants                    _________________
          in common                                               (State)

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

          I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:__________________________
________________________________________________________________________________

Dated:

                                          _____________________________________
                                          Signature by or on behalf of assignor

                                          _____________________________________
                                          Signature Guaranteed

                                     A-2-20

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of
distribution:

          Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

     This information is provided by __________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                     A-2-21

<PAGE>

                                   EXHIBIT A-7

                         FORM OF CLASS AV-3 CERTIFICATE

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
     "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT,"
     AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND
     860D OF THE INTERNAL REVENUE CODE OF 1986 (THE "CODE").

Series 2002-5, Class AV-3                      Aggregate Certificate Principal
                                               Balance of the Class AV-3
                                               Certificates as of the Issue
                                               Date:
Pass-Through Rate: Variable                    $_________________

Date of Pooling and Servicing Agreement        Denomination:  $_________________
and Cut-off Date: December 1, 2002
                                               Master Servicer:  Ameriquest
First Distribution Date: January 27, 2003      Mortgage Company

No. 1                                          Trustee: Deutsche Bank National
                                               Trust Company

                                               Issue Date: December 5, 2002

                                               CUSIP:

     DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
     THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN.
     ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF
     AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE AS THE
     DENOMINATION OF THIS CERTIFICATE.

                                     A-2-22

<PAGE>

ASSET-BACKED PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a Trust Fund (the "Trust Fund")
consisting primarily of a pool of conventional one- to four-family
adjustable-rate and fixed-rate first lien mortgage loans (the "Mortgage Loans")
formed and sold by

                       AMERIQUEST MORTGAGE SECURITIES INC.

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST
     IN AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE
     TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
     CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY
     ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

          This certifies that ___________ is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class AV-1 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class AV-1 Certificates in REMIC III created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

          Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class AV-1 Certificates on such Distribution
Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                     A-2-23

<PAGE>

          The Pass-Through Rate applicable to the calculation of interest
payable with respect to this Certificate on any Distribution Date shall be the
lesser of (x) the related Formula Rate for such Distribution Date and (y) the
Net WAC Pass-Through Rate for such Distribution Date. For any Distribution Date
and this Certificate, the Formula Rate is the lesser of (i) One- Month LIBOR
plus the Certificate Margin and (ii) the Maximum Cap Rate. The Certificate
Margin for this Certificate is with respect to this Certificate is [____]% in
the case of each Distribution Date through and including the Distribution Date
on which the aggregate principal balance of the Mortgage Loans (and properties
acquired in respect thereof) remaining in the Trust is reduced to less than 10%
of the sum of the aggregate Stated Principal Balance of the Initial Mortgage
Loans at the Cut-off Date and the Original Pre-Funded Amounts, or [____]% in the
case of any Distribution Date thereafter.

          This Certificate is one of a duly authorized issue of Certificates
designated as Asset-Backed Pass-Through Certificates of the Series specified on
the face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates specified on the face hereof equal to the
denomination specified on the face hereof divided by the aggregate Certificate
Principal Balance of the Class of Certificates specified on the face hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee and
the Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

                                     A-2-24

<PAGE>

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

          The Depositor, the Master Servicer, the Trustee and the Certificate
Registrar and any agent of the Depositor, the Master Servicer, the Trustee or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Depositor, the
Master Servicer, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan remaining in REMIC I,
and (ii) the purchase by the party designated in the Agreement at a price
determined as provided in the Agreement from REMIC I of all the Mortgage Loans
and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than 10% of the sum of the
aggregate Stated Principal Balance of the Initial Mortgage Loans at the Cut-off
Date and the Original Pre-Funded Amounts.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-2-25

<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: December __, 2002

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Trustee

                                               By:_____________________________
                                                        Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Certificate Registrar

                                               By:_____________________________
                                                        Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM - as tenants in common           UNIF GIFT MIN ACT -       CUSTODIAN
                                                             -------------------
TEN ENT - as tenants by the entireties                       (Cust)   (Minor)
                                                             under Uniform Gifts
JT TEN -  as joint tenants with right if                     to Minors Act
          survivorship and not as tenants                     _________________
          in common                                                (State)

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

          I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:__________________________
________________________________________________________________________________

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                     A-2-27

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of
distribution:

          Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

     This information is provided by __________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                     A-2-28

<PAGE>

                                   EXHIBIT A-8

                          FORM OF CLASS M-1 CERTIFICATE

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
     "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT,"
     AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND
     860D OF THE INTERNAL REVENUE CODE OF 1986 (THE "CODE").

     THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES AND
     THE CLASS SCERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND
     SERVICING AGREEMENT REFERRED TO HEREIN.

Series 2002-5, Class M-1                       Aggregate Certificate Principal
                                               Balance of the Class M-1
                                               Certificates as of the Issue
                                               Date:
Pass-Through Rate:  Variable                   $__________________

Date of Pooling and Servicing Agreement        Denomination:  $_________________
and Cut-off Date: December 1, 2002
                                               Master Servicer:  Ameriquest
First Distribution Date: January 27, 2003      Mortgage Company

No. 1                                          Trustee: Deutsche Bank National
                                               Trust Company

                                               Issue Date: December 5, 2002

                                               CUSIP: ___________________

     DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
     THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN.
     ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF
     AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE AS THE
     DENOMINATION OF THIS CERTIFICATE.

                                     A-2-29

<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a Trust Fund (the "Trust Fund")
consisting primarily of a pool of conventional one- to four-family
adjustable-rate and fixed-rate first lien mortgage loans (the "Mortgage Loans")
formed and sold by

                       AMERIQUEST MORTGAGE SECURITIES INC.

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST
     IN AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE
     TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
     CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY
     ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

          This certifies that ____________ is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-1 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-1 Certificates in REMIC III created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

          Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-1 Certificates on such Distribution
Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                     A-2-30

<PAGE>

          The Pass-Through Rate applicable to the calculation of interest
payable with respect to this Certificate on any Distribution Date shall be the
lesser of (x) the related Formula Rate for such Distribution Date and (y) the
Net WAC Pass-Through Rate for such Distribution Date. For any Distribution Date
and this Certificate, the Formula Rate is the lesser of (i) One- Month LIBOR
plus the Certificate Margin and (ii) the Maximum Cap Rate. The Certificate
Margin for this Certificate is with respect to this Certificate is [____]% in
the case of each Distribution Date through and including the Distribution Date
on which the aggregate principal balance of the Mortgage Loans (and properties
acquired in respect thereof) remaining in the Trust is reduced to less than 10%
of the sum of the aggregate principal balance of the Initial Mortgage Loans as
of the Cut-off Date and the Original Pre-Funded Amounts, or [____]% in the case
of any Distribution Date thereafter.

          This Certificate is one of a duly authorized issue of Certificates
designated as Asset-Backed Pass-Through Certificates of the Series specified on
the face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates specified on the face hereof equal to the
denomination specified on the face hereof divided by the aggregate Certificate
Principal Balance of the Class of Certificates specified on the face hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee and
the Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

                                     A-2-31

<PAGE>

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

          The Depositor, the Master Servicer, the Trustee and the Certificate
Registrar and any agent of the Depositor, the Master Servicer, the Trustee or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Depositor, the
Master Servicer, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan remaining in REMIC I,
and (ii) the purchase by the party designated in the Agreement at a price
determined as provided in the Agreement from REMIC I of all the Mortgage Loans
and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than 10% of the sum of the
aggregate principal balance of the Initial Mortgage Loans as of the Cut-off Date
and the Original Pre- Funded Amounts.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: December __, 2002

                                              DEUTSCHE BANK NATIONAL
                                              TRUST COMPANY
                                              as Trustee

                                              By:__________________________
                                                    Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                              DEUTSCHE BANK NATIONAL
                                              TRUST COMPANY
                                              as Certificate Registrar

                                              By:__________________________
                                                    Authorized Signatory

                                     A-2-33

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM -as tenants in common           UNIF GIFT MIN ACT -      CUSTODIAN
                                                            --------------------
TEN ENT -as tenants by the entireties                       (Cust)   (Minor)
                                                            under Uniform Gifts
JT TEN - as joint tenants with right if                     to Minors Act
         survivorship and not as tenants                    ___________________
         in common                                                (State)

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

          I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:__________________________
________________________________________________________________________________

Dated:

                                         _____________________________________
                                         Signature by or on behalf of assignor

                                         _____________________________________
                                         Signature Guaranteed

                                     A-2-34

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of
distribution:

          Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

     This information is provided by __________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                     A-2-35

<PAGE>

                                   EXHIBIT A-9

                          FORM OF CLASS M-2 CERTIFICATE

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
     "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT,"
     AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND
     860D OF THE INTERNAL REVENUE CODE OF 1986 (THE "CODE").

     THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE
     CLASS S CERTIFICATES AND THE CLASS M-1 CERTIFICATES TO THE EXTENT
     DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO
     HEREIN.

Series 2002-5, Class M-2                       Aggregate Certificate Principal
                                               Balance of the Class M-2
                                               Certificates as of the Issue
                                               Date:
Pass-Through Rate:  Variable                   $___________________

Date of Pooling and Servicing Agreement        Denomination:  $_________________
and Cut-off Date: December 1, 2002
                                               Master Servicer:  Ameriquest
First Distribution Date: January 27, 2003      Mortgage Company

No. 1                                          Trustee: Deutsche Bank National
                                               Trust Company

                                               Issue Date: December 5, 2002

                                               CUSIP:

     DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
     THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN.
     ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF
     AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE AS THE
     DENOMINATION OF THIS CERTIFICATE.

                                      A-3-1

<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

         evidencing a beneficial ownership interest in a Trust Fund (the
      "Trust Fund") consisting primarily of a pool of conventional one- to
         four-family adjustable-rate and fixed-rate first lien mortgage
                loans (the "Mortgage Loans") formed and sold by

                       AMERIQUEST MORTGAGE SECURITIES INC.

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST
     IN AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE
     TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
     CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY
     ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

          This certifies that ______________ is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-2 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-2 Certificates in REMIC III created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

          Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-2 Certificates on such Distribution
Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                      A-3-2

<PAGE>

          The Pass-Through Rate applicable to the calculation of interest
payable with respect to this Certificate on any Distribution Date shall be the
lesser of (x) the related Formula Rate for such Distribution Date and (y) the
Net WAC Pass-Through Rate for such Distribution Date. For any Distribution Date
and this Certificate, the Formula Rate is the lesser of (i) One- Month LIBOR
plus the Certificate Margin and (ii) the Maximum Cap Rate. The Certificate
Margin for this Certificate is with respect to this Certificate is [____]% in
the case of each Distribution Date through and including the Distribution Date
on which the aggregate principal balance of the Mortgage Loans (and properties
acquired in respect thereof) remaining in the Trust is reduced to less than 10%
of the sum of the aggregate principal balance of the Initial Mortgage Loans as
of the Cut-off Date and the Original Pre-Funded Amounts, or [____]% in the case
of any Distribution Date thereafter.

          This Certificate is one of a duly authorized issue of Certificates
designated as Asset-Backed Pass-Through Certificates of the Series specified on
the face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates specified on the face hereof equal to the
denomination specified on the face hereof divided by the aggregate Certificate
Principal Balance of the Class of Certificates specified on the face hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee and
the Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

                                      A-3-3

<PAGE>

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

          The Depositor, the Master Servicer, the Trustee and the Certificate
Registrar and any agent of the Depositor, the Master Servicer, the Trustee or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Depositor, the
Master Servicer, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan remaining in REMIC I,
and (ii) the purchase by the party designated in the Agreement at a price
determined as provided in the Agreement from REMIC I of all the Mortgage Loans
and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than 10% of the aggregate
Stated Principal Balance of the Mortgage Loans at the Cut-off Date.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-3-4

<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: December __, 2002

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Trustee

                                               By:_____________________________
                                                        Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Certificate Registrar

                                               By:_____________________________
                                                        Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM - as tenants in common           UNIF GIFT MIN ACT -       CUSTODIAN
                                                             -------------------
TEN ENT - as tenants by the entireties                       (Cust)   (Minor)
                                                             under Uniform Gifts
JT TEN -  as joint tenants with right if                     to Minors Act
          survivorship and not as tenants                     _________________
          in common                                                   (State)

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

          I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:__________________________
________________________________________________________________________________

Dated:

                                          _____________________________________
                                          Signature by or on behalf of assignor

                                          _____________________________________
                                          Signature Guaranteed

                                      A-3-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of
distribution:

          Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

     This information is provided by __________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                      A-3-7

<PAGE>

                                  EXHIBIT A-10

                          FORM OF CLASS M-3 CERTIFICATE

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
     "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT,"
     AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND
     860D OF THE INTERNAL REVENUE CODE OF 1986 (THE "CODE").

     THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE
     CLASS S CERTIFICATES, THE CLASS M-1 CERTIFICATES AND THE CLASS M-2
     CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING
     AGREEMENT REFERRED TO HEREIN.

Series 2002-5, Class M-3                       Aggregate Certificate Principal
                                               Balance of the Class M-3
                                               Certificates as of the Issue
                                               Date:
Pass-Through Rate:  Variable                   $________________

Date of Pooling and Servicing Agreement        Denomination:  $_______________
and Cut-off Date: December 1, 2002
                                               Master Servicer:  Ameriquest
First Distribution Date: January 27, 2003      Mortgage Company

No. 1                                          Trustee:  Deutsche Bank National
                                               Trust Company

                                               Issue Date: December 5, 2002

                                               CUSIP:

     DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
     THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN.
     ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF
     AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE AS THE
     DENOMINATION OF THIS CERTIFICATE.

                                      A-4-1

<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

         evidencing a beneficial ownership interest in a Trust Fund (the
      "Trust Fund") consisting primarily of a pool of conventional one- to
         four-family adjustable-rate and fixed-rate first lien mortgage
                loans (the "Mortgage Loans") formed and sold by

                       AMERIQUEST MORTGAGE SECURITIES INC.

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST
     IN AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE
     TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
     CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY
     ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

          This certifies that ____________ is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-3 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-3 Certificates in REMIC III created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

          Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-3 Certificates on such Distribution
Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                      A-4-2

<PAGE>

          The Pass-Through Rate applicable to the calculation of interest
payable with respect to this Certificate on any Distribution Date shall be the
lesser of (x) the related Formula Rate for such Distribution Date and (y) the
Net WAC Pass-Through Rate for such Distribution Date. For any Distribution Date
and this Certificate, the Formula Rate is the lesser of (i) One- Month LIBOR
plus the Certificate Margin and (ii) the Maximum Cap Rate. The Certificate
Margin for this Certificate is with respect to this Certificate is [____]% in
the case of each Distribution Date through and including the Distribution Date
on which the aggregate principal balance of the Mortgage Loans (and properties
acquired in respect thereof) remaining in the Trust is reduced to less than 10%
of the sum of the aggregate principal balance of the Initial Mortgage Loans as
of the Cut-off Date and the Original Pre-Funded Amounts, or [____]% in the case
of any Distribution Date thereafter.

          This Certificate is one of a duly authorized issue of Certificates
designated as Asset-Backed Pass-Through Certificates of the Series specified on
the face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates specified on the face hereof equal to the
denomination specified on the face hereof divided by the aggregate Certificate
Principal Balance of the Class of Certificates specified on the face hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee and
the Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

                                      A-4-3

<PAGE>

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

          The Depositor, the Master Servicer, the Trustee and the Certificate
Registrar and any agent of the Depositor, the Master Servicer, the Trustee or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Depositor, the
Master Servicer, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan remaining in REMIC I,
and (ii) the purchase by the party designated in the Agreement at a price
determined as provided in the Agreement from REMIC I of all the Mortgage Loans
and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than 10% of the sum of the
aggregate principal balance of the Initial Mortgage Loans as of the Cut-off Date
and the Original Pre- Funded Amounts.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-4-4

<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: December __, 2002

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Trustee

                                               By:_____________________________
                                                        Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Certificate Registrar

                                               By:______________________________
                                                        Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM - as tenants in common           UNIF GIFT MIN ACT -       CUSTODIAN
                                                             -------------------
TEN ENT - as tenants by the entireties                       (Cust)   (Minor)
                                                             under Uniform Gifts
JT TEN -  as joint tenants with right if                     to Minors Act
          survivorship and not as tenants                     _________________
          in common                                                (State)

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto ______________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

          I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:_________________________
_______________________________________________________________________________

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                      A-4-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of
distribution:

          Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
_______________________________________________________________________________
_____________________________________________________________________________.

     This information is provided by __________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                      A-4-7

<PAGE>

                                  EXHIBIT A-11

                          FORM OF CLASS CE CERTIFICATE

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
     "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT",
     AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND
     860D OF THE INTERNAL REVENUE CODE OF 1986 (THE "CODE").

     THIS CERTIFICATE IS SUBORDINATE TO THE A CERTIFICATES, THE CLASS S
     CERTIFICATES AND THE MEZZANINE CERTIFICATES TO THE EXTENT
     DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO
     HEREIN.

     THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
     SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY
     STATE AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED
     PURSUANT TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN
     TRANSACTIONS THAT ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT AND
     UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH
     THE PROVISIONS OF SECTION 5.02 OF THE AGREEMENT.

     NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR
     OTHER RETIREMENT ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE
     EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
     ("ERISA"), OR THE CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE
     WITH THE PROCEDURES DESCRIBED HEREIN.

                                      A-5-1

<PAGE>

Series 2002-5, Class CE                        Aggregate Certificate Principal
                                               Balance of the Class CE
                                               Certificates as of the Issue
                                               Date:
Date of Pooling and Servicing Agreement        $________________
and Cut-off Date: December 1, 2002
                                               Denomination:  $_________________
First Distribution Date: January 27, 2003
                                               Master Servicer:  Ameriquest
No. 1                                          Mortgage Company

Aggregate Notional Amount of the Class         Trustee: Deutsche Bank National
CE Certificates as of the Issue Date:          Trust Company
$_____________________
                                               Issue Date: December 5, 2002
Notional Amount:  $_________________

     DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
     THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN.
     ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF
     AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE AS THE
     DENOMINATION OF THIS CERTIFICATE.

                                      A-5-2

<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

         evidencing a beneficial ownership interest in a Trust Fund (the
      "Trust Fund") consisting primarily of a pool of conventional one- to
         four-family adjustable-rate and fixed-rate first lien mortgage
                loans (the "Mortgage Loans") formed and sold by

                       AMERIQUEST MORTGAGE SECURITIES INC.

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST
     IN AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE
     TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
     CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY
     ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

          This certifies that _________________ is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class CE Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class CE Certificates in REMIC III created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

          Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class CE Certificates on such Distribution
Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                      A-5-3

<PAGE>

          This Certificate is one of a duly authorized issue of Certificates
designated as Asset-Backed Pass-Through Certificates of the Series specified on
the face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates specified on the face hereof equal to the
denomination specified on the face hereof divided by the aggregate Certificate
Principal Balance of the Class of Certificates specified on the face hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee and
the Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

          No transfer of this Certificate shall be made unless the transfer is
made pursuant to an effective registration statement under the Securities Act of
1933, as amended (the "1933 Act"), and an effective registration or
qualification under applicable state securities laws, or is made in a
transaction that does not require such registration or qualification. In the
event that such a transfer of this Certificate is to be made without
registration or qualification, the Trustee and the Certificate Registrar shall
require receipt of (i) if such transfer is purportedly being made

                                      A-5-4

<PAGE>

in reliance upon Rule 144A under the 1933 Act, written certifications from the
Holder of the Certificate desiring to effect the transfer, and from such
Holder's prospective transferee, substantially in the forms attached to the
Agreement as Exhibit F-1, and (ii) in all other cases, an Opinion of Counsel
satisfactory to it that such transfer may be made without such registration or
qualification (which Opinion of Counsel shall not be an expense of the Trust
Fund or of the Depositor, the Trustee or the Master Servicer in their respective
capacities as such), together with copies of the written certification(s) of the
Holder of the Certificate desiring to effect the transfer and/or such Holder's
prospective transferee upon which such Opinion of Counsel is based. None of the
Depositor, the Certificate Registrar or the Trustee is obligated to register or
qualify the Class of Certificates specified on the face hereof under the 1933
Act or any other securities law or to take any action not otherwise required
under the Agreement to permit the transfer of such Certificates without
registration or qualification. Any Holder desiring to effect a transfer of this
Certificate shall be required to indemnify the Trustee, the Depositor, the
Certificate Registrar and the Master Servicer against any liability that may
result if the transfer is not so exempt or is not made in accordance with such
federal and state laws.

          No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any Person using "Plan Assets" to acquire this Certificate shall be
made except in accordance with Section 5.02(c) of the Agreement.

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

          The Depositor, the Master Servicer, the Trustee and the Certificate
Registrar and any agent of the Depositor, the Master Servicer, the Trustee or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Depositor, the
Master Servicer, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan remaining in REMIC I,
and (ii) the purchase by the party designated in the Agreement at a price
determined as provided in the Agreement from REMIC I of all the Mortgage Loans
and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than 10% of the sum of the
aggregate Stated Principal Balance of the Initial Mortgage Loans at the Cut-off
Date and the Original Pre-Funded Amounts.

                                      A-5-5

<PAGE>

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-5-6

<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: December __, 2002

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Trustee

                                               By:____________________________
                                                        Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Certificate Registrar

                                               By:_____________________________
                                                        Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM - as tenants in common           UNIF GIFT MIN ACT -       CUSTODIAN
                                                             -------------------
TEN ENT - as tenants by the entireties                       (Cust)   (Minor)
                                                             under Uniform Gifts
JT TEN -  as joint tenants with right if                     to Minors Act
          survivorship and not as tenants                     _________________
          in common                                                (State)

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

          I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:__________________________
________________________________________________________________________________

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                      A-5-8

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of
distribution:

          Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

     This information is provided by __________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                      A-5-9

<PAGE>

                                  EXHIBIT A-12

                           FORM OF CLASS P CERTIFICATE

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
     "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT",
     AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND
     860D OF THE INTERNAL REVENUE CODE OF 1986 (THE "CODE").

     THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
     SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY
     STATE AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED
     PURSUANT TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN
     TRANSACTIONS THAT ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT AND
     UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH
     THE PROVISIONS OF SECTION 5.02 OF THE AGREEMENT.

     NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR
     OTHER RETIREMENT ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE
     EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
     ("ERISA"), OR THE CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE
     WITH THE PROCEDURES DESCRIBED HEREIN.

Series 2002-5, Class P                         Aggregate Certificate Principal
                                               Balance of the Class P
                                               Certificates as of the Issue
                                               Date:
Date of Pooling and Servicing Agreement        $100.00
and Cut-off Date: December 1, 2002
                                               Denomination:  $100.00
First Distribution Date: January 27, 2003
No. 1                                          Master Servicer:  Ameriquest
                                               Mortgage Company

                                               Trustee:  Deutsche Bank National
                                               Trust Company

                                               Issue Date: December 5, 2002

     DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE
     OF THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN.
     ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF
     AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE AS THE
     DENOMINATION OF THIS CERTIFICATE.

                                      A-6-1

<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

         evidencing a beneficial ownership interest in a Trust Fund (the
      "Trust Fund") consisting primarily of a pool of conventional one- to
         four-family adjustable-rate and fixed-rate first lien mortgage
                loans (the "Mortgage Loans") formed and sold by

                       AMERIQUEST MORTGAGE SECURITIES INC.

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST
     IN AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE
     TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
     CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY
     ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

          This certifies that ________________ is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class P Certificates as of
the Issue Date) in that certain beneficial ownership interest evidenced by all
the Class P Certificates in REMIC III created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

          Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class P Certificates on such Distribution
Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                      A-6-2

<PAGE>

          This Certificate is one of a duly authorized issue of Certificates
designated as Asset-Backed Pass-Through Certificates of the Series specified on
the face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates specified on the face hereof equal to the
denomination specified on the face hereof divided by the aggregate Certificate
Principal Balance of the Class of Certificates specified on the face hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee and
the Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

          No transfer of this Certificate shall be made unless the transfer is
made pursuant to an effective registration statement under the Securities Act of
1933, as amended (the "1933 Act"), and an effective registration or
qualification under applicable state securities laws, or is made in a
transaction that does not require such registration or qualification. In the
event that such a transfer of this Certificate is to be made without
registration or qualification, the Trustee and the Certificate Registrar shall
require receipt of (i) if such transfer is purportedly being made

                                      A-6-3

<PAGE>

in reliance upon Rule 144A under the 1933 Act, written certifications from the
Holder of the Certificate desiring to effect the transfer, and from such
Holder's prospective transferee, substantially in the forms attached to the
Agreement as Exhibit F-1, and (ii) in all other cases, an Opinion of Counsel
satisfactory to it that such transfer may be made without such registration or
qualification (which Opinion of Counsel shall not be an expense of the Trust
Fund or of the Depositor, the Trustee or the Master Servicer in their respective
capacities as such), together with copies of the written certification(s) of the
Holder of the Certificate desiring to effect the transfer and/or such Holder's
prospective transferee upon which such Opinion of Counsel is based. None of the
Depositor, the Certificate Registrar or the Trustee is obligated to register or
qualify the Class of Certificates specified on the face hereof under the 1933
Act or any other securities law or to take any action not otherwise required
under the Agreement to permit the transfer of such Certificates without
registration or qualification. Any Holder desiring to effect a transfer of this
Certificate shall be required to indemnify the Trustee, the Depositor, the
Certificate Registrar and the Master Servicer against any liability that may
result if the transfer is not so exempt or is not made in accordance with such
federal and state laws.

          No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any Person using "Plan Assets" to acquire this Certificate shall be
made except in accordance with Section 5.02(c) of the Agreement.

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

          The Depositor, the Master Servicer, the Trustee and the Certificate
Registrar and any agent of the Depositor, the Master Servicer, the Trustee or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Depositor, the
Master Servicer, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan remaining in REMIC I,
and (ii) the purchase by the party designated in the Agreement at a price
determined as provided in the Agreement from REMIC I of all the Mortgage Loans
and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than 10% of the sum of the
aggregate Stated Principal Balance of the Initial Mortgage Loans at the Cut-off
Date and the Original Pre-Funded Amounts.

                                      A-6-4

<PAGE>

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-6-5

<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: December  __, 2002

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Trustee

                                               By:__________________________
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Certificate Registrar

                                               By:__________________________
                                                     Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM - as tenants in common           UNIF GIFT MIN ACT -      CUSTODIAN
                                                             -------------------
TEN ENT - as tenants by the entireties                       (Cust)   (Minor)
                                                             under Uniform Gifts
JT TEN -  as joint tenants with right if                     to Minors Act
          survivorship and not as tenants                    ___________________
          in common                                                (State)

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

          I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:__________________________
________________________________________________________________________________

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                      A-6-7

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of
distribution:

          Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

     This information is provided by __________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                      A-6-8

<PAGE>

                                  EXHIBIT A-13

                           FORM OF CLASS S CERTIFICATE

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
     "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT,"
     AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND
     860D OF THE INTERNAL REVENUE CODE OF 1986 (THE "CODE").

Series 2002-5, Class S                         Aggregate Notional Amount of the
                                               Class S Certificates as of the
Pass-Through Rate:  Variable                   Issue Date: $_________________

Date of Pooling and Servicing Agreement        Denomination:  $_______________
and Cut-off Date: December 1, 2002
                                               Master Servicer:  Ameriquest
First Distribution Date: January 27, 2003      Mortgage Company

No.1                                           Trustee: Deutsche Bank National
                                               Trust Company

                                               Issue Date: December 5, 2002

                                               CUSIP:

     DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
     THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN.
     ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF
     AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE AS THE
     DENOMINATION OF THIS CERTIFICATE.

                                      A-7-1

<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

         evidencing a beneficial ownership interest in a Trust Fund (the
      "Trust Fund") consisting primarily of a pool of conventional one- to
         four-family adjustable-rate and fixed-rate first lien mortgage
                loans (the "Mortgage Loans") formed and sold by

                       AMERIQUEST MORTGAGE SECURITIES INC.

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST
     IN AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE
     TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
     CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY
     ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

          This certifies that _____________ is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Notional Amount of the Class S-1 Certificates as of the Issue
Date) in that certain beneficial ownership interest evidenced by all the Class
S-1 Certificates in REMIC III created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the "Agreement"), among Ameriquest Mortgage
Securities Inc. (hereinafter called the "Depositor," which term includes any
successor entity under the Agreement), the Master Servicer and the Trustee, a
summary of certain of the pertinent provisions of which is set forth hereafter.
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Certificate is issued under and is
subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of the acceptance hereof
assents and by which such Holder is bound.

          Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class S-1 Certificates on such Distribution
Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                      A-7-2

<PAGE>

          The Pass-Through Rate for this Certificate will be [_____]% per annum
for the 1st Distribution Date through the 30th Distribution Date. After the 30th
Distribution Date, the Pass- Through Rate for this Certificate will be [____]%
per annum.

          The Notional Amount of this Certificate immediately prior to any
Distribution Date will be equal to the lesser of (i)(a) $[_____________] for the
1st Distribution Date through the 8th Distribution Date, (b) $[______________]
for the 9th Distribution Date through the 16th Distribution Date, (c)
$[_____________] for the 17th Distribution Date through the 24th Distribution
Date and (d) $[______________] for the 25th Distribution Date through the 30th
Distribution Date and (ii) the sum of the aggregate principal balance of the
Group I Mortgage Loans (prior to giving effect to scheduled payments of
principal due during the related Due Period and unscheduled collections of
principal received during the related Prepayment Period) and any amounts
remaining on deposit in the Group I Pre-Funding Account.

          This Certificate is one of a duly authorized issue of Certificates
designated as Asset-Backed Pass-Through Certificates of the Series specified on
the face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates specified on the face hereof equal to the
denomination specified on the face hereof divided by the aggregate Certificate
Principal Balance of the Class of Certificates specified on the face hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee and
the Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in

                                      A-7-3

<PAGE>

authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

          The Depositor, the Master Servicer, the Trustee and the Certificate
Registrar and any agent of the Depositor, the Master Servicer, the Trustee or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Depositor, the
Master Servicer, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan remaining in REMIC I,
and (ii) the purchase by the party designated in the Agreement at a price
determined as provided in the Agreement from REMIC I of all the Mortgage Loans
and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than 10% of the sum of the
aggregate Stated Principal Balance of the Initial Mortgage Loans at the Cut-off
Date and the Original Pre-Funded Amounts.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-7-4

<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: December __, 2002

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Trustee

                                               By:____________________________
                                                        Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Certificate Registrar

                                               By:_____________________________
                                                      Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM - as tenants in common           UNIF GIFT MIN ACT -      CUSTODIAN
                                                             -------------------
TEN ENT - as tenants by the entireties                       (Cust)   (Minor)
                                                             under Uniform Gifts
JT TEN -  as joint tenants with right if                     to Minors Act
          survivorship and not as tenants                    __________________
          in common                                               (State)

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto ______________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

          I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:__________________________
________________________________________________________________________________

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                      A-7-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of
distribution:

          Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

     This information is provided by ______________________________________, the
assignee named above, or ____________________________________, as its agent.

                                      A-7-7

<PAGE>

                                  EXHIBIT A-14

                           FORM OF CLASS R CERTIFICATE

     THIS CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED STATES
     PERSON.

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
     "RESIDUAL INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT"
     ("REMIC"), AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS
     860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986 (THE "CODE").

     THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
     SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY
     STATE AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED
     PURSUANT TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN
     TRANSACTIONS THAT ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT AND
     UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH
     THE PROVISIONS OF SECTION 5.02 OF THE AGREEMENT.

     ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY
     BE MADE ONLY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF
     THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

     NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR
     OTHER RETIREMENT ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE
     EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
     ("ERISA"), OR THE CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE
     WITH THE PROCEDURES DESCRIBED HEREIN.

     ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY
     BE MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES (I) AN AFFIDAVIT
     TO THE TRUSTEE THAT (A) SUCH TRANSFEREE IS NOT (1) THE UNITED
     STATES OR ANY POSSESSION THEREOF, ANY STATE OR POLITICAL
     SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY INTERNATIONAL
     ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE
     FOREGOING, (2) ANY ORGANIZATION (OTHER THAN A COOPERATIVE
     DESCRIBED IN SECTION 521 OF THE CODE) THAT IS EXEMPT FROM THE TAX
     IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION IS
     SUBJECT TO THE TAX

                                      A-8-1

<PAGE>

     IMPOSED BY SECTION 511 OF THE CODE, (3) ANY ORGANIZATION DESCRIBED
     IN SECTION 1381(A)(2)(C) OF THE CODE (ANY SUCHPERSON DESCRIBED IN
     THE FOREGOING CLAUSES (1), (2) OR (3) SHALL HEREINAFTER BE
     REFERRED TO AS A "DISQUALIFIED ORGANIZATION") OR (4) AN AGENT OF A
     DISQUALIFIED ORGANIZATION AND (B) NO PURPOSE OF SUCH TRANSFER IS
     TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX, AND (II) SUCH
     TRANSFEREE SATISFIES CERTAIN ADDITIONAL CONDITIONS RELATING TO THE
     FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING
     THE REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE
     OR OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED
     ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH
     REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT
     WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A
     CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT
     LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH
     HOLDER OF THIS CERTIFICATE BY ACCEPTANCE HEREOF SHALL BE DEEMED TO
     HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH AND THE
     PROVISIONS OF SECTION 5.02(D) OF THE POOLING AND SERVICING
     AGREEMENT REFERRED TO HEREIN. ANY PERSON THAT IS A DISQUALIFIED
     ORGANIZATION IS PROHIBITED FROM ACQUIRING BENEFICIAL OWNERSHIP OF
     THIS CERTIFICATE.

Series 2002-5, Class R                        Aggregate Percentage Interest of
                                              the Class R Certificates as of
Date of Pooling and Servicing Agreement       the Issue Date: 100.00% Percentage
and Cut-off Date: December 1, 2002            Interest

First Distribution Date: January 27, 2003     Denomination: 100% Percentage
                                              Interest
No. 1
                                              Master Servicer: Ameriquest
                                              Mortgage Company

                                              Trustee: Deutsche Bank National
                                              Trust Company

                                              Issue Date: December 5, 2002

                                      A-8-2

<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

         evidencing a beneficial ownership interest in a Trust Fund (the
      "Trust Fund") consisting primarily of a pool of conventional one- to
         four-family adjustable-rate and fixed-rate first lien mortgage
                loans (the "Mortgage Loans") formed and sold by

                       AMERIQUEST MORTGAGE SECURITIES INC.

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST
     IN AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE
     TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
     CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY
     ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

          This certifies that _________________ is the registered owner of a
Percentage Interest specified above in that certain beneficial ownership
interest evidenced by all the Class R Certificates in REMIC III created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Ameriquest Mortgage Securities Inc. (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Master Servicer and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

          Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class R Certificates on such Distribution
Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                      A-8-3

<PAGE>

          This Certificate is one of a duly authorized issue of Certificates
designated as Asset-Backed Pass-Through Certificates of the Series specified on
the face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates specified on the face hereof equal to the
denomination specified on the face hereof divided by the aggregate Certificate
Principal Balance of the Class of Certificates specified on the face hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee and
the Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

          No transfer of this Certificate shall be made unless the transfer is
made pursuant to an effective registration statement under the Securities Act of
1933, as amended (the "1933 Act"), and an effective registration or
qualification under applicable state securities laws, or is made in a
transaction that does not require such registration or qualification. In the
event that such a transfer of this Certificate is to be made without
registration or qualification, the Trustee and the Certificate Registrar shall
require receipt of (i) if such transfer is purportedly being made

                                      A-8-4

<PAGE>

in reliance upon Rule 144A under the 1933 Act, written certifications from the
Holder of the Certificate desiring to effect the transfer, and from such
Holder's prospective transferee, substantially in the forms attached to the
Agreement as Exhibit F-1, and (ii) in all other cases, an Opinion of Counsel
satisfactory to it that such transfer may be made without such registration or
qualification (which Opinion of Counsel shall not be an expense of the Trust
Fund or of the Depositor, the Trustee or the Master Servicer in their respective
capacities as such), together with copies of the written certification(s) of the
Holder of the Certificate desiring to effect the transfer and/or such Holder's
prospective transferee upon which such Opinion of Counsel is based. None of the
Depositor, the Certificate Registrar or the Trustee is obligated to register or
qualify the Class of Certificates specified on the face hereof under the 1933
Act or any other securities law or to take any action not otherwise required
under the Agreement to permit the transfer of such Certificates without
registration or qualification. Any Holder desiring to effect a transfer of this
Certificate shall be required to indemnify the Trustee, the Depositor, the
Certificate Registrar and the Master Servicer against any liability that may
result if the transfer is not so exempt or is not made in accordance with such
federal and state laws.

          No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any Person using "Plan Assets" to acquire this Certificate shall be
made except in accordance with Section 5.02(c) of the Agreement.

          Prior to registration of any transfer, sale or other disposition of
this Certificate, the proposed transferee shall provide to the Trustee (i) an
affidavit to the effect that such transferee is any Person other than a
Disqualified Organization or the agent (including a broker, nominee or
middleman) of a Disqualified Organization, and (ii) a certificate that
acknowledges that (A) the Class R Certificates have been designated as a
residual interest in a REMIC, (B) it will include in its income a PRO RATA share
of the net income of the Trust Fund and that such income may be an "excess
inclusion," as defined in the Code, that, with certain exceptions, cannot be
offset by other losses or benefits from any tax exemption, and (C) it expects to
have the financial means to satisfy all of its tax obligations including those
relating to holding the Class R Certificates. Notwithstanding the registration
in the Certificate Register of any transfer, sale or other disposition of this
Certificate to a Disqualified Organization or an agent (including a broker,
nominee or middleman) of a Disqualified Organization, such registration shall be
deemed to be of no legal force or effect whatsoever and such Person shall not be
deemed to be a Certificateholder for any purpose, including, but not limited to,
the receipt of distributions in respect of this Certificate.

          The Holder of this Certificate, by its acceptance hereof, shall be
deemed to have consented to the provisions of Section 5.02 of the Agreement and
to any amendment of the Agreement deemed necessary by counsel of the Depositor
to ensure that the transfer of this Certificate to any Person other than a
Permitted Transferee or any other Person will not cause the Trust Fund to cease
to qualify as a REMIC or cause the imposition of a tax upon the REMIC.

          No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any Person using

                                      A-8-5

<PAGE>

"Plan Assets" to acquire this Certificate shall be made except in accordance
with Section 5.02(c) of the Agreement.

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

          The Depositor, the Master Servicer, the Trustee and the Certificate
Registrar and any agent of the Depositor, the Master Servicer, the Trustee or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Depositor, the
Master Servicer, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan remaining in REMIC I,
and (ii) the purchase by the party designated in the Agreement at a price
determined as provided in the Agreement from REMIC I of all the Mortgage Loans
and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than 10% of the sum of the
aggregate Stated Principal Balance of the Initial Mortgage Loans at the Cut-off
Date and the Original Pre-Funded Amounts.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-8-6

<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: December __, 2002

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Trustee

                                               By:__________________________
                                                        Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                               DEUTSCHE BANK NATIONAL
                                               TRUST COMPANY
                                               as Certificate Registrar

                                               By:__________________________
                                                        Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM - as tenants in common           UNIF GIFT MIN ACT -      CUSTODIAN
                                                             -------------------
TEN ENT - as tenants by the entireties                       (Cust)   (Minor)
                                                             under Uniform Gifts
JT TEN -  as joint tenants with right if                     to Minors Act
          survivorship and not as tenants                     _________________
          in common                                                   (State)

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed
Pass-Through Certificate and hereby authorize(s) the registration of transfer of
such interest to assignee on the Certificate Register of the Trust Fund.

          I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:__________________________
________________________________________________________________________________

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                      A-8-8

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of
distribution:

          Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

     This information is provided by __________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                      A-8-9

<PAGE>

                                    EXHIBIT B

                           FORM OF LOST NOTE AFFIDAVIT

Loan #: ____________
Borrower: _____________

                               LOST NOTE AFFIDAVIT

          I, as ____________________ of ______________________, a
_______________ corporation am authorized to make this Affidavit on behalf of
_____________________ (the "Seller"). In connection with the administration of
the Mortgage Loans held by ____________________, a _________________ corporation
as Seller on behalf of Ameriquest Mortgage Securities Inc. (the "Purchaser"),
_____________________ (the "Deponent"), being duly sworn, deposes and says that:

     1.   The Seller's address is:    _____________________
                                      _____________________
                                      _____________________

     2.   The Seller previously delivered to the Purchaser a signed Initial
          Certification with respect to such Mortgage and/or Assignment of
          Mortgage;

     3.   Such Mortgage Note and/or Assignment of Mortgage was assigned or sold
          to the Purchaser by ________________________, a ____________
          corporation pursuant to the terms and provisions of a Mortgage Loan
          Purchase Agreement dated as of __________ __, _____;

     4.   Such Mortgage Note and/or Assignment of Mortgage is not outstanding
          pursuant to a request for release of Documents;

     5.   Aforesaid Mortgage Note and/or Assignment of Mortgage (the "Original")
          has been lost;

     6.   Deponent has made or caused to be made a diligent search for the
          Original and has been unable to find or recover same;

     7.   The Seller was the Seller of the Original at the time of the loss; and

     8.   Deponent agrees that, if said Original should ever come into Seller's
          possession, custody or power, Seller will immediately and without
          consideration surrender the Original to the Purchaser.

     9.   Attached hereto is a true and correct copy of (i) the Note, endorsed
          in blank by the Mortgagee and (ii) the Mortgage or Deed of Trust
          (strike one) which

                                       B-1

<PAGE>

          secures the Note, which Mortgage or Deed of Trust is recorded in the
          county where the property is located.

     10.  Deponent hereby agrees that the Seller (a) shall indemnify and hold
          harmless the Purchaser, its successors and assigns, against any loss,
          liability or damage, including reasonable attorney's fees, resulting
          from the unavailability of any Notes, including but not limited to any
          loss, liability or damage arising from (i) any false statement
          contained in this Affidavit, (ii) any claim of any party that has
          already purchased a mortgage loan evidenced by the Lost Note or any
          interest in such mortgage loan, (iii) any claim of any borrower with
          respect to the existence of terms of a mortgage loan evidenced by the
          Lost Note on the related property to the fact that the mortgage loan
          is not evidenced by an original note and (iv) the issuance of a new
          instrument in lieu thereof (items (i) through (iv) above hereinafter
          referred to as the "Losses") and (b) if required by any Rating Agency
          in connection with placing such Lost Note into a Pass-Through
          Transfer, shall obtain a surety from an insurer acceptable to the
          applicable Rating Agency to cover any Losses with respect to such Lost
          Note.

     11.  This Affidavit is intended to be relied upon by the Purchaser, its
          successors and assigns. _____________________, a ______________
          corporation represents and warrants that it has the authority to
          perform its obligations under this Affidavit of Lost Note.

Executed this ____ day, of ___________ ______.

                                                       SELLER

                                                       By:______________________
                                                       Name:
                                                       Title:

          On this _____ day of ________, _____, before me appeared
_________________ to me personally known, who being duly sworn did say that he
is the _____________________ of ____________________ a ______________
corporation and that said Affidavit of Lost Note was signed and sealed on behalf
of such corporation and said acknowledged this instrument to be the free act and
deed of said corporation.

                                          Signature:

                                          [Seal]

                                       B-2

<PAGE>

                                   EXHIBIT C-1

                     FORM OF TRUSTEE'S INITIAL CERTIFICATION

                                                 [Date]

Ameriquest Mortgage Securities Inc.
1100 Town & Country Road, Suite 1100
Orange, California 92868

Ameriquest Mortgage Company
1100 Town & Country Road
Orange, California 92868

               Re:  Pooling and Servicing Agreement, dated as of December
                    1, 2002, among Ameriquest Mortgage Securities Inc.,
                    Ameriquest Mortgage Company and Deutsche Bank National
                    Trust Company, Asset-Backed Mortgage Pass- Through
                    Certificates, Series 2002-5
                    ------------------------------------------------------

Ladies and Gentlemen:

          Pursuant to Section 2.01 of the Pooling and Servicing Agreement, dated
as of December 1, 2002, among Ameriquest Mortgage Securities Inc. as Depositor,
Ameriquest Mortgage Company, as master servicer and Deutsche Bank National Trust
Company as trustee, we hereby acknowledge that as to each Mortgage Loan listed
in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any
Mortgage Loan specifically identified in the exception report annexed thereto as
not being covered by such certification), (i) all documents constituting part of
such Mortgage File (other than such documents described in Section 2.01(v))
required to be delivered to it pursuant to this Agreement are in its possession,
(ii) such documents have been reviewed by it or such Custodian and are not
mutilated, torn or defaced unless initialed by the related borrower and relate
to such Mortgage Loan, (iii) based on its or the Custodian's examination and
only as to the foregoing, the information set forth in the Mortgage Loan
Schedule that corresponds to items (1) through (3), (6), (9), (10), (13), (15)
and (19) of the definition of "Mortgage Loan Schedule" accurately reflects
information set forth in the Mortgage File.

          The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
above-referenced Pooling and Servicing Agreement. The Trustee makes no
representations as to: (i) the validity, legality, sufficiency, recordability,
enforceability or genuineness of any of the documents contained in the Mortgage
File of any of the Mortgage Loans identified on the Mortgage Loan Schedule, or
(ii) the collectability, insurability, perfection, priority, effectiveness or
suitability of any such Mortgage Loan.

                                   C-1-1

<PAGE>

          The Trustee was under no duty or obligation (i) to inspect, review or
examine any such documents, instruments, certificates or other papers to
determine whether they are genuine, enforceable, or appropriate for the
represented purpose or whether they have actually been recorded or that they are
other than what they purport to be on their face or (ii) to determine whether
any Mortgage File should include any of the documents specified in clause (v) of
Section 2.01.

                                   C-2-1

<PAGE>

          Capitalized terms used but not defined herein shall have the meanings
assigned to them in the Pooling and Servicing Agreement.

                                                 DEUTSCHE BANK NATIONAL TRUST
                                                 COMPANY, as Trustee

                                                 By:____________________________
                                                 Name:
                                                 Title:

                                   C-1-2

<PAGE>

                                EXHIBIT C-2

                   FORM OF TRUSTEE'S FINAL CERTIFICATION

                                                   [Date]

Ameriquest Mortgage Securities Inc.
1100 Town & Country Road, Suite 1100
Orange, California 92868

Ameriquest Mortgage Company
1100 Town & Country Road
Orange, California 92868

               Re:  Pooling and Servicing Agreement, dated as of December
                    1, 2002, among Ameriquest Mortgage Securities Inc.,
                    Ameriquest Mortgage Company and Deutsche Bank National
                    Trust Company, Asset-Backed Mortgage Pass-Through
                    Certificates, Series 2002-5
                    ------------------------------------------------------

Ladies and Gentlemen:

          In accordance with Section 2.02 of the above-captioned Pooling and
Servicing Agreement, the undersigned, as Trustee, hereby certifies that as to
each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage
Loan paid in full or listed on the attachment hereto), it or a Custodian on its
behalf has received each of the documents listed in Section 2.01.

          The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
above-referenced Pooling and Servicing Agreement. The Trustee makes no
representations as to: (i) the validity, legality, sufficiency, recordability,
enforceability or genuineness of any of the documents contained in the Mortgage
File of any of the Mortgage Loans identified on the Mortgage Loan Schedule, or
(ii) the collectability, insurability, perfection, priority, effectiveness or
suitability of any such Mortgage Loan.

          Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the above-captioned Pooling and Servicing
Agreement.

                                               DEUTSCHE BANK NATIONAL TRUST
                                               COMPANY, as Trustee

                                               By:______________________________
                                               Name:
                                               Title:

                                      C-2-3

<PAGE>

                                   EXHIBIT C-3

                   FORM OF TRUSTEE'S RECEIPT OF MORTGAGE NOTE

                                                [Date]

Ameriquest Mortgage Securities Inc.
1100 Town & Country Road
Orange, California 92868

Ameriquest Mortgage Company
1100 Town & Country Road
Orange, California 92868

               Re:  Pooling and Servicing Agreement, dated as of December
                    1, 2002, among Ameriquest Mortgage Securities Inc.,
                    Ameriquest Mortgage Company and Deutsche Bank National
                    Trust Company, Asset-Backed Mortgage Pass- Through
                    Certificates, Series 2002-5
                    ------------------------------------------------------

Ladies and Gentlemen:

          Pursuant to Section 2.01 of the Pooling and Servicing Agreement, dated
as of December 1, 2002, among Ameriquest Mortgage Securities Inc. as Depositor,
Ameriquest Mortgage Company, as master servicer and Deutsche Bank National Trust
Company as trustee, we hereby acknowledge the receipt of the original Mortgage
Note for each Mortgage Loan with any exceptions thereto listed on Exhibit 1.

          Capitalized terms used but not defined herein shall have the meanings
assigned to them in the Pooling and Servicing Agreement.

                                                DEUTSCHE BANK NATIONAL TRUST
                                                COMPANY, as Trustee

                                                By:_____________________________
                                                Name:
                                                Title:

                                      C-3-1

<PAGE>

                                    EXHIBIT D

                    FORM OF MORTGAGE LOAN PURCHASE AGREEMENT

                                       D-1

<PAGE>
                        MORTGAGE LOAN PURCHASE AGREEMENT

          This is a Mortgage Loan Purchase Agreement (the "Agreement"), dated
November 26, 2002, between Ameriquest Mortgage Company, a Delaware corporation
(the "Originator") and Ameriquest Mortgage Securities Inc., a Delaware
corporation (the "Purchaser").

                              PRELIMINARY STATEMENT

          The Originator intends to sell the Mortgage Loans (as hereinafter
defined) to the Purchaser on the terms and subject to the conditions set forth
in this Agreement. The Purchaser shall deposit the Mortgage Loans into a
mortgage pool constituting the trust fund. The trust fund will be evidenced by a
single series of asset-backed pass-through certificates designated as Series
2002-5 (the "Certificates"). The Certificates will consist fourteen classes of
certificates. The Class CE Certificates, the Class P Certificates and the Class
R Certificates (collectively, the "Ameriquest L.L.C. Certificates") will be
delivered to the Originator as partial consideration for the Mortgage Loans as
further described below.

          The Certificates will be issued pursuant to a Pooling and Servicing
Agreement, dated as of December 1, 2002 (the "Pooling and Servicing Agreement"),
among the Purchaser as depositor (in such capacity, the "Depositor"), the
Originator as master servicer (in such capacity the "Master Servicer") and
Deutsche Bank National Trust Company as Trustee (in such capacity the "Trustee
"). Pursuant to the Pooling and Servicing Agreement, the Depositor will assign
all of its right, title and interest in and to the Mortgage Loans, together with
its rights under this Agreement, to the Trustee for the benefit of the
Certificateholders. Capitalized terms used but not defined herein shall have the
meanings set forth in the Pooling and Servicing Agreement.

          The parties hereto agree as follows:

          SECTION 1. AGREEMENT TO PURCHASE. The Originator agrees to sell, and
the Purchaser agrees to purchase, on or before December 5, 2002 (the "Closing
Date"), certain adjustable-rate and fixed-rate conventional residential mortgage
loans (the "Mortgage Loans"), having an aggregate principal balance as of the
close of business on the Cut-off Date of $351,588,210.49, after giving effect to
all payments due on the Mortgage Loans on or before the Cut- off Date (the
"Closing Balance"), whether or not received including the right to any
Prepayment Charges collected after the Cut-off Date from the Mortgagors in
connection with any Principal Prepayments on the Mortgage Loans. Any payments
(including Prepayment Charges) collected on or before the Cut-off Date,
including all scheduled payments of principal and interest due on or before the
Cut-off Date and collected after the Cut-off Date, shall belong to the
Originator.

          SECTION 2. MORTGAGE LOAN SCHEDULE. The Purchaser and the Originator
have agreed upon which of the mortgage loans owned by the Originator are to be
purchased by the Purchaser pursuant to this Agreement, and the Originator shall
prepare or cause to be prepared on or prior to the Closing Date a final schedule
(the "Closing Schedule") describing such Mortgage Loans and setting forth all of
the Mortgage Loans to be purchased under this Agreement, including

<PAGE>

                                       -2-

the related Prepayment Charges. The Closing Schedule shall conform to the
requirements set forth in this Agreement and to the definition of "Mortgage Loan
Schedule" under the Pooling and Servicing Agreement. The Closing Schedule shall
be used as the Mortgage Loan Schedule under the Pooling and Servicing Agreement.

          SECTION 3. CONSIDERATION.

               (a) In consideration for the Mortgage Loans to be purchased
hereunder, the Purchaser shall, as described in Section 8, (i) pay to or upon
the order of the Originator in immediately available funds an amount (the
"Purchase Price") equal to the net sale proceeds of the Class A Certificates,
the Class M-1 Certificates, the Class M-2 Certificates, the Class M-3
Certificates and the Class S Certificates, and (ii) deliver to Ameriquest
Securities L.L.C., upon the order of the Originator, the Ameriquest L.L.C.
Certificates.

               (b) In connection with the transactions contemplated by Section
2.10 of the Pooling and Servicing Agreement, the Seller hereby agrees that the
Purchaser shall be under no obligation to purchase any Subsequent Mortgage Loans
unless (i) the conditions precedent contained in Section 2.10 of the Pooling and
Servicing Agreement and the Subsequent Transfer Instrument, substantially in the
form of Exhibit J of the Pooling and Servicing Agreement, are satisfied and (ii)
each Subsequent Mortgage Loan satisfies the representations and warranties
contained in Section 6 of this Agreement. The sale of Subsequent Mortgage Loans
by the Seller to the Depositor shall be effected in accordance with the terms of
Section 2.10 of the Pooling and Servicing Agreement pursuant to a Subsequent
Mortgage Loan Purchase Agreement substantially in the form of this Agreement.

          SECTION 4. TRANSFER OF THE MORTGAGE LOANS.

               (a) POSSESSION OF MORTGAGE FILES. The Originator does hereby sell
to the Purchaser, without recourse but subject to the terms of this Agreement,
all of its right, title and interest in, to and under the Mortgage Loans,
including the related Prepayment Charges collected after the Cut-off Date. The
contents of each Mortgage File not delivered to the Purchaser or to any
assignee, transferee or designee of the Purchaser on or prior to the Closing
Date are and shall be held in trust by the Originator for the benefit of the
Purchaser or any assignee, transferee or designee of the Purchaser. Upon the
sale and contribution of the Mortgage Loans the ownership of each Mortgage Note,
the related Mortgage and the other contents of the related Mortgage File is
vested in the Purchaser and the ownership of all records and documents with
respect to the related Mortgage Loan prepared by or that come into the
possession of the Originator on or after the Closing Date shall immediately vest
in the Purchaser and shall be delivered immediately to the Purchaser or as
otherwise directed by the Purchaser.

<PAGE>

                                       -3-

               (b) DELIVERY OF MORTGAGE LOAN DOCUMENTS. The Originator will, on
or prior to the Closing Date, deliver or cause to be delivered to the Purchaser
or any assignee, transferee or designee of the Purchaser each of the following
documents for each Mortgage Loan:

          (i) the original Mortgage Note, endorsed in blank without recourse or
     in the following form: "Pay to the order of Deutsche Bank National Trust
     Company, as Trustee under the applicable agreement, without recourse," with
     all prior and intervening endorsements showing a complete chain of
     endorsement from the originator to the Person so endorsing to the Trustee,
     or with respect to any lost Mortgage Note, an original Lost Note Affidavit;
     PROVIDED HOWEVER, that such substitutions of Lost Note Affidavits for
     original Mortgage Notes may occur only with respect to Mortgage Loans, the
     aggregate Cut-off Date Principal Balance of which is less than or equal to
     2.00% of the Pool Balance as of the Cut- off Date;

          (ii) the original Mortgage with evidence of recording thereon, and a
     copy, certified by the appropriate recording office, of the recorded power
     of attorney, if the Mortgage was executed pursuant to a power of attorney,
     with evidence of recording thereon;

          (iii) an original Assignment of the Mortgage assigned in blank,
     without recourse;

          (iv) the original recorded intervening Assignment or Assignments of
     the Mortgage showing a complete chain of assignment from the originator to
     the Person assigning the Mortgage to the Trustee as contemplated by the
     immediately preceding clause (iii) or the original unrecorded intervening
     Assignments;

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

          (vi) the original lender's title insurance policy or an attorney's
     opinion of title or similar, guarantee of title acceptable to mortgage
     lenders generally in the jurisdiction where the Mortgaged Property is
     located, together with all endorsements or riders which were issued with or
     subsequent to the issuance of such policy, insuring the priority of the
     Mortgage as a first lien on the Mortgaged Property represented therein as a
     fee interest vested in the Mortgagor, or in the event such original title
     policy is unavailable, a written commitment or uniform binder or
     preliminary report of title issued by the title insurance or escrow
     company.

          If any document referred to in Section 4(b)(ii), 4(b)(iii) or 4(b)(iv)
above has been submitted for recording but either (x) has not been returned from
the applicable public recording office or (y) has been lost or such public
recording office has retained the original of such document, the obligations of
the Originator hereunder shall be deemed to have been satisfied upon (1)
delivery by or on behalf of the Originator promptly upon receipt thereof to the
Purchaser or any assignee,

<PAGE>

                                       -4-

transferee or designee of the Purchaser of either the original or a copy of such
document certified by the Originator in the case of (x) above or the public
recording office in the case of (y) above to be a true and complete copy of the
recorded original thereof and (2) if such delivered copy is certified by the
Originator then in addition thereto delivery promptly upon receipt thereof of
either the original or a copy of such document certified by the public recording
office to be a true and complete copy of the original. In the event that the
original lender's title insurance policy has not yet been issued, the Originator
shall deliver to the Purchaser or any assignee, transferee or designee of the
Purchaser a written commitment or interim binder or preliminary report of title
issued by the title insurance or escrow company. Promptly upon receipt by the
Originator of any such original title insurance policy the Originator shall
deliver such to the Purchaser or any assignee, transferee or designee of the
Purchaser.

          The Originator shall promptly (and in no event later than thirty (30)
Business Days, subject to extension upon mutual agreement between the Originator
and the Trustee, following the later of (i) the Closing Date, (ii) the date on
which the Originator receives the Assignment from the Trustee and (iii) the date
of receipt by the Originator of the recording information for a Mortgage) submit
or cause to be submitted for recording, at no expense to the Trust Fund or the
Trustee, in the appropriate public office for real property records, each
Assignment referred to in (iii) and (iv) above and shall execute each original
Assignment referred to in (iii) in the following form: "Deutsche Bank National
Trust Company, as Trustee under the applicable agreement without recourse". In
the event that any such Assignment is lost or returned unrecorded because of a
defect therein, the Originator shall promptly prepare or cause to be prepared a
substitute Assignment or cure or cause to be cured such defect, as the case may
be, and thereafter cause each such Assignment to be duly recorded.
Notwithstanding the foregoing, however, for administrative convenience and
facilitation of servicing and to reduce closing costs, the Assignments of
Mortgage shall not be required to be submitted for recording (except with
respect to any Mortgage Loan located in Maryland) unless such failure to record
would result in a withdrawal or a downgrading by any Rating Agency of the rating
on any Class of Certificates; provided further, however, each Assignment of
Mortgage shall be submitted for recording by the Originator in the manner
described above, at no expense to the Trust Fund or the Trustee, upon the
earliest to occur of: (i) reasonable direction by Holders of Certificates
entitled to at least 25% of the Voting Rights, (ii) failure of the Master
Servicer Termination Test, (iii) the occurrence of the bankruptcy or insolvency
of the Originator, (iv) the occurrence of a servicing transfer as described in
Section 7.02 of the Pooling and Servicing Agreement, and (v) if the Originator
is not the Master Servicer and with respect to any one Assignment of Mortgage,
the occurrence of a bankruptcy of the mortgagor under the related Mortgage or a
foreclosure of related Mortgage.

          Each original document relating to a Mortgage Loan which is not
delivered to the Purchaser or its assignee, transferee or designee, if held by
the Originator, shall be so held for the benefit of the Purchaser or its
assignee, transferee or designee.

<PAGE>

                                       -5-

               (c) ACCEPTANCE OF MORTGAGE LOANS. The documents delivered
pursuant to Section 4(b) hereof shall be reviewed by the Purchaser or any
assignee, transferee or designee of the Purchaser at any time before or after
the Closing Date (and with respect to each document permitted to be delivered
after the Closing Date within seven days of its delivery) to ascertain that all
required documents have been executed and received and that such documents
relate to the Mortgage Loans identified on the Mortgage Loan Schedule.

               (d) RESERVED.

               (e) TRANSFER OF INTEREST IN AGREEMENTS. The Purchaser has the
right to assign its interest under this Agreement, in whole or in part, to the
Trustee, as may be required to effect the purposes of the Pooling and Servicing
Agreement, without the consent of the Originator, and the assignee shall succeed
to the rights and obligations hereunder of the Purchaser. Any expense reasonably
incurred by or on behalf of the Purchaser or the Trustee in connection with
enforcing any obligations of the Originator under this Agreement will be
promptly reimbursed by the Originator.

               (f) EXAMINATION OF MORTGAGE FILES. Prior to the Closing Date, the
Originator shall either (i) deliver in escrow to the Purchaser or to any
assignee, transferee or designee of the Purchaser, for examination, the Mortgage
File pertaining to each Mortgage Loan or (ii) make such Mortgage Files available
to the Purchaser or to any assignee, transferee or designee of the Purchaser for
examination at the Trustee's offices in Santa Ana, California. Such examination
may be made by the Purchaser, and its respective designees, upon reasonable
notice to the Originator and the Trustee during normal business hours before the
Closing Date and within 60 days after the Closing Date. If any such person makes
such examination prior to the Closing Date and identifies any Mortgage Loans
that do not conform to the requirements of the Purchaser as described in this
Agreement, such Mortgage Loans shall be deleted from the Closing Schedule. The
Purchaser may, at its option and without notice to the Originator, purchase all
or part of the Mortgage Loans without conducting any partial or complete
examination. The fact that the Purchaser or any person has conducted or has
failed to conduct any partial or complete examination of the Mortgage Files
shall not affect the rights of the Purchaser or any assignee, transferee or
designee of the Purchaser to demand repurchase or other relief as provided
herein or under the Pooling and Servicing Agreement.

          SECTION 5. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE
ORIGINATOR.

          The Originator hereby represents and warrants to the Purchaser, as of
the date hereof and as of the Closing Date, and covenants, that:

          (i) The Originator is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware and is duly
authorized and qualified to transact any and all business contemplated by this
Agreement to be conducted by the Originator in any state in which a Mortgaged
Property is located or is otherwise not required under applicable law to effect

<PAGE>

                                       -6-

such qualification and, in any event, is in compliance with the doing business
laws of any such State, to the extent necessary to ensure its ability to enforce
each Mortgage Loan and to service the Mortgage Loans in accordance with the
terms of the Pooling and Servicing Agreement;

          (ii) The Originator had the full corporate power and authority to
originate, hold and sell each Mortgage Loan and has the full corporate power and
authority to service each Mortgage Loan, and to execute, deliver and perform,
and to enter into and consummate the transactions contemplated by this Agreement
and has duly authorized by all necessary corporate action on the part of the
Originator the execution, delivery and performance of this Agreement; and this
Agreement, assuming the due authorization, execution and delivery thereof by the
Purchaser, constitutes a legal, valid and binding obligation of the Originator,
enforceable against the Originator in accordance with its terms, except to the
extent that (a) the enforceability thereof may be limited by bankruptcy,
insolvency, moratorium, receivership and other similar laws relating to
creditors' rights generally and (b) the remedy of specific performance and
injunctive and other forms of equitable relief may be subject to the equitable
defenses and to the discretion of the court before which any proceeding therefor
may be brought;

          (iii) The execution and delivery of this Agreement by the Originator,
the servicing of the Mortgage Loans by the Originator under the Pooling and
Servicing Agreement, the consummation of any other of the transactions herein
contemplated, and the fulfillment of or compliance with the terms hereof are in
the ordinary course of business of the Originator and will not (A) result in a
breach of any term or provision of the charter or by-laws of the Originator or
(B) conflict with, result in a breach, violation or acceleration of, or result
in a default under, the terms of any other material agreement or instrument to
which the Originator is a party or by which it may be bound, or any statute,
order or regulation applicable to the Originator of any court, regulatory body,
administrative agency or governmental body having jurisdiction over the
Originator; and the Originator is not a party to, bound by, or in breach or
violation of any indenture or other agreement or instrument, or subject to or in
violation of any statute, order or regulation of any court, regulatory body,
administrative agency or governmental body having jurisdiction over it, which
materially and adversely affects or, to the Originator's knowledge, would in the
future materially and adversely affect, (x) the ability of the Originator to
perform its obligations under this Agreement or (y) the business, operations,
financial condition, properties or assets of the Originator taken as a whole;

          (iv) No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and
performance by the Originator of, or compliance by the Originator with, this
Agreement or the consummation of the transactions contemplated hereby, or if any
such consent, approval, authorization or order is required, the Originator has
obtained the same;

          (v) The Originator 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; and

<PAGE>

                                       -7-

          (vi) Except as otherwise disclosed in the Prospectus Supplement, no
litigation is pending against the Originator that would materially and adversely
affect the execution, delivery or enforceability of this Agreement or the
ability of the Originator to service the Mortgage Loans or to perform any of its
other obligations hereunder in accordance with the terms hereof.

          SECTION 6. REPRESENTATIONS AND WARRANTIES OF THE ORIGINATOR RELATING
                     TO THE MORTGAGE LOANS.

          The Originator hereby represents and warrants to the Purchaser that as
of the Closing Date:

               (i) The information set forth on the related Mortgage Loan
Schedule with respect to each Mortgage Loan is true and correct in all material
respects;

               (ii) [Reserved];

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

               (iv) All payments due prior to the Cut-off Date have been made
and none of the Mortgage Loans will have been contractually delinquent for more
than one calendar month more than once since the origination thereof;

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

               (vi) Immediately prior to the sale of the Mortgage Loans to the
Purchaser, the Originator had good title to, and was the sole legal and
beneficial owner of, each Mortgage Loan free and clear of any pledge, lien,
encumbrance or security interest and has full right and authority, subject to no
interest or participation of, or agreement with, any other party to sell and
assign the same;

<PAGE>

                                       -8-

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

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

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

               (x) Subject to the Escrow Withhold referred to in (xx) below,
each Mortgaged Property is free of material damage and is in good repair;

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

               (xii) Neither the Originator nor any prior holder of any Mortgage
has modified the Mortgage in any material respect (except that a Mortgage Loan
may have been modified by a written instrument which has been recorded, if
necessary, to protect the interests of the Purchaser and which has been
delivered to the Trustee); satisfied, canceled or subordinated such Mortgage in
whole or in part; released the related Mortgaged Property in whole or in part
from the lien of such Mortgage; or executed any instrument of release,
cancellation, modification or satisfaction with respect thereto;

               (xiii) A lender's policy of title insurance together with a
condominium endorsement, extended coverage endorsement, and an adjustable rate
mortgage endorsement (each as applicable) in an amount at least equal to the
Cut-off Date principal balance of each such Mortgage Loan or a commitment
(binder) to issue the same was effective on the date of the origination of each
Mortgage Loan, each such policy is valid and remains in full force and effect,
the transfer of the related Mortgage Loan to the Purchaser will not affect the
validity or enforceability of such policy and each such policy was issued by a
title insurer qualified to do business in the jurisdiction where the Mortgaged
Property is located and in a form acceptable to Fannie Mae or Freddie Mac, which
policy insures the Originator and successor owners of indebtedness secured by
the insured Mortgage, as to the first priority lien of the Mortgage; no claims
have been made under

<PAGE>

                                       -9-

such lender's title insurance policy and no prior holder of the related
Mortgage, including the Originator, has done, by act or omission, anything which
would impair the coverage of such lender's title insurance policy;

               (xiv) Each Mortgage Loan was originated by the Originator (or, if
generated on behalf of the Originator by a person other than the Originator, is
subject to the same underwriting standards and procedures used by the Originator
in originating mortgage loans directly) or by a savings and loan association,
savings bank, commercial bank, credit union, insurance company or similar
institution which is supervised and examined by a federal or state authority
(including a mortgage broker), or by a mortgagee approved by the Secretary of
Housing and Urban Development pursuant to Sections 203 and 211 of the National
Housing Act;

               (xv) With respect to each Adjustable-Rate Mortgage Loan, on each
adjustment date, the Mortgage Rate will be adjusted to equal the Index plus the
Gross Margin, rounded to the nearest 0.125%, subject to the Periodic Rate Cap,
the Maximum Mortgage Rate and the Minimum Mortgage Rate. The related Mortgage
Note is payable on the first day of each month in self-amortizing monthly
installments of principal and interest, with interest payable in arrears, and
requires a monthly payment which is sufficient to fully amortize the outstanding
principal balance of the Mortgage Loan over its remaining term and to pay
interest at the applicable Mortgage Rate. No Mortgage Loan is subject to
negative amortization;

               (xvi) All of the improvements which were included for the purpose
of determining the appraised value of the Mortgaged Property lie wholly within
the boundaries and building restriction lines of such property, and no
improvements on adjoining properties encroach upon the Mortgaged Property,
except those, if any, which are insured against by the lender's title insurance
policy referred to in (xiii) above.

               (xvii) All inspections, licenses and certificates required to be
made or issued with respect to all occupied portions of the Mortgaged Property
including but not limited to certificates of occupancy, have been made or
obtained from the appropriate authorities and the Mortgaged Property is lawfully
occupied under applicable law except as may otherwise be insured against by the
lender's title insurance policy referred to in (xiii) above.

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

               (xix) The Mortgage Note and the related Mortgage are genuine, and
each is the legal, valid and binding obligation of the maker thereof,
enforceable in accordance with its terms and with applicable laws. All parties
to the Mortgage Note and the Mortgage had legal capacity to

<PAGE>

                                      -10-

execute the Mortgage Note and the Mortgage and each Mortgage Note and Mortgage
have been duly and properly executed by such parties;

               (xx) The proceeds of each Mortgage Loan have been fully
disbursed, there is no requirement for future advances thereunder and any and
all requirements as to completion of any on-site or off-site improvements and as
to disbursements of any escrow funds therefor have been complied with, except
any Mortgaged Property or Mortgage Loan subject to an Escrow Withhold as defined
in the Originator's underwriting guidelines. All costs, fees and expenses
incurred in making, closing or recording the Mortgage Loans were paid;

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

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

               (xxiii) 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 Originator have been capitalized under the
Mortgage or the related Mortgage Note;

               (xxiv) The origination, collection and servicing practices used
by the Originator with respect to each Mortgage Loan have been in all material
respects legal, proper, reasonable and customary in the subprime mortgage
origination and servicing business;

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

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

               (xxvii) The improvements upon each Mortgaged Property are covered
by a valid and existing hazard insurance policy with a generally acceptable
carrier that provides for fire extended coverage and such other hazards as are
customary in the area where the Mortgaged Property is located representing
coverage not less than the lesser of the outstanding principal balance

<PAGE>

                                      -11-

of the related Mortgage Loan or the minimum amount required to compensate for
damage or loss on a replacement cost basis. All individual insurance policies
and flood policies referred to in clause (xxviii) below contain a standard
mortgagee clause naming the Originator or the original mortgagee, and its
successors in interest, as mortgagee, and the Originator has received no notice
that any premiums due and payable thereon have not been paid; the Mortgage
obligates the Mortgagor thereunder to maintain all such insurance, including
flood insurance, at the Mortgagor's cost and expense, and upon the Mortgagor's
failure to do so, authorizes the holder of the Mortgage to obtain and maintain
such insurance at the Mortgagor's cost and expense and to seek reimbursement
therefor from the Mortgagor, except as may be limited or restricted by
applicable law;

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

               (xxix) There is no default, breach, violation or event of
acceleration existing under the Mortgage or the related Mortgage Note; and the
Originator has not waived any default, breach, violation or event of
acceleration;

               (xxx) Each Mortgaged Property is improved by a one- to
four-family residential dwelling, including condominium units and dwelling units
in planned unit developments, which does not include (a) cooperatives or (b)
mobile homes and manufactured homes (as defined in the Fannie Mae
Seller-Servicer's Guide), except when the appraisal indicates that (i) the
mobile or manufactured home was built under the Federal Manufactured Home
Construction and Safety Standards of 1976 or (ii) otherwise assumes the
characteristics of site-built housing and meets local building codes, is readily
marketable, has been permanently affixed to the site, is not in a mobile home
"park," and is treated as real property under the applicable state law. With
respect to any Mortgage Loan that is secured by a leasehold estate, (a) the
lease is valid, in full force and effect; (b) all rents and other payments due
under the lease have been paid; (c) the lessee is not in default under any
provision of the lease; (d) the term of the lease exceeds the maturity date of
the related Mortgage Loan by at least five years and (e) the Mortgagee under the
Mortgage Loan is given notice and an opportunity to cure any defaults under the
lease;

               (xxxi) There is no obligation on the part of the Originator 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;

<PAGE>

                                      -12-

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

               (xxxiii) Each Mortgage Loan was underwritten in accordance with
the Originator's underwriting guidelines;

               (xxxiv) The Mortgage File contains an appraisal which was
performed by an appraiser who satisfied, and which was conducted in accordance
with, all of the applicable requirements of the Financial Institutions Reform,
Recovery and Enforcement Act of 1989, as amended;.

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

               (xxxvi) With respect to each Mortgage Loan, no loan junior in
lien priority to such Mortgage Loan and secured by the related Mortgaged
Property was originated by the Originator at the time of origination of such
Mortgage Loan;

               (xxxvii) The Mortgage Loans comply in all material respects with
the description set forth under the heading "The Mortgage Pool" in the
Depositor's Prospectus Supplement, dated the date hereof (the "Prospectus
Supplement");

               (xxxviii) 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, except as may be limited by
applicable law;

               (xxxix) The information set forth in the Mortgage Loan Schedule
relating to the existence of a Prepayment Charge is complete, true and correct
in all material respects at the date or dates respecting which such information
is furnished and each Prepayment Charge is permissible and enforceable in
accordance with its terms upon the full and voluntary prepayment by the
Mortgagor under applicable law (except to the extent that: (1) the
enforceability thereof may be limited by bankruptcy, insolvency, moratorium,
receivership and other similar laws relating to creditors' rights generally; or
(2) the collectability thereof may be limited due to acceleration in connection
with a foreclosure or other involuntary payoff;

               (xl) Each Mortgage Loan is an obligation that is principally
secured by real property for purposes of the REMIC Provisions of the Code;

<PAGE>

                                      -13-

               (xli) No Mortgage Loan is covered by the Home Ownership and
Equity Protection Act of 1994 ("HOEPA") and no Mortgage Loan is in violation of
any state law or ordinance similar to HOEPA;

               (xlii) No proceeds from any Mortgage Loan were used to finance
single- premium credit insurance policies;

               (xliii) With respect to the Group I Mortgage Loans and the Group
II Mortgage Loans, no such Mortgage Loan originated before October 1, 2002 will
impose a Prepayment Charge for a term in excess of five years and no such
Mortgage Loan originated on or after October 1, 2002 will impose a Prepayment
Charge for a term in excess of three years;

               (xliv) No Mortgage Loan that is secured by property located in
the State of Georgia is either a "Covered Loan" or "High Cost Loan" within the
meaning of the Georgia Fair Lending Act; and

               (xlv) No Mortgagor has currently requested any relief under the
Soldiers and Sailors Civil Relief Act of 1940 or similar state laws.

               SECTION 7. REPURCHASE OBLIGATION FOR DEFECTIVE DOCUMENTATION AND
                          FOR BREACH OF REPRESENTATION AND WARRANTY.

          (a) The representations and warranties contained in Section 6 shall
not be materially impaired by any review and examination of loan files or other
documents evidencing or relating to the Mortgage Loans or any failure on the
part of the Purchaser to review or examine such documents and shall inure to the
benefit of any assignee, transferee or designee of the Purchaser, including the
Trustee for the benefit of the Certificateholders.

          Upon discovery by the Originator, the Purchaser or any assignee,
transferee or designee of the Purchaser of any materially defective document in,
or that any material document was not transferred by the Originator (as listed
on the Trustee's Preliminary Exception Report), as part of, any Mortgage File or
of a breach of any of the representations and warranties contained in Section 5
or Section 6 that materially and adversely affects the value of any Mortgage
Loan or the interest therein of the Purchaser or the Purchaser's assignee,
transferee or designee, the party discovering the breach shall give prompt
written notice to the other. Within ninety (90) days of its discovery or its
receipt of notice of any such missing documentation which was not transferred to
the Purchaser as described above or materially defective documentation or any
such breach of a representation and warranty the Originator promptly shall
deliver such missing document or cure such defect or breach in all material
respects, or in the event the Originator cannot deliver such missing document or
such defect or breach cannot be cured, the Originator shall, within 90 days of
its discovery or receipt of notice, either (i) repurchase the affected Mortgage
Loan at a price equal to the Purchase Price or (ii) pursuant to the provisions
of the Pooling and Servicing Agreement,

<PAGE>

                                      -14-

cause the removal of such Mortgage Loan from the Trust Fund and substitute one
or more Qualified Substitute Mortgage Loans. In the event that any Mortgage Loan
is subject to a breach of the representation and warranty in Section 6(xxxix)
resulting in the Master Servicer's inability to collect all or part of the
Prepayment Charge from the Mortgagor, in lieu of repurchase, the Originator
shall be obligated to remit to the Master Servicer (for deposit in the
Collection Account) any shortfall in the Prepayment Charge collected upon the
Mortgagor's voluntary and full principal prepayment.

          The Originator shall amend the Closing Schedule to reflect the
withdrawal of such Mortgage Loan from the terms of this Agreement and the
Pooling and Servicing Agreement and the addition, if any, of a Qualified
Substitute Mortgage Loan. The Originator shall deliver to the Purchaser such
amended Closing Schedule and shall deliver such other documents as are required
by this Agreement or the Pooling and Servicing Agreement within five (5) days of
any such amendment. Any repurchase pursuant to this Section 7(a) shall be
accomplished by deposit in the Collection Account of the amount of the Purchase
Price in accordance with Section 2.03 of the Pooling and Servicing Agreement.
Any repurchase or substitution required by this Section shall be made in a
manner consistent with Section 2.03 of the Pooling and Servicing Agreement.

          In addition, upon discovery by the Originator, the Purchaser, or any
assignee, transferee or designee of the Purchaser that any Mortgage Loan does
not constitute a "qualified mortgage" within the meaning of Section 860G(a)(3)
of the Code, the party discovering the breach shall give prompt written notice
within five Business Days to the others. Within ninety (90) days of its
discovery or its receipt of notice, the Originator promptly shall either (i)
repurchase the affected Mortgage Loan at the Purchase Price (as such term is
defined in the Pooling and Servicing Agreement) or (ii) pursuant to the
provisions of the Pooling and Servicing Agreement, cause the removal of such
Mortgage Loan from the Trust Fund and substitute one or more Qualified
Substitute Mortgage Loans.

          (b) It is understood and agreed that the obligations of the Originator
set forth in this Section 7 to cure, remit a Prepayment Charge shortfall,
repurchase or substitute for a defective Mortgage Loan constitute the sole
remedies of the Purchaser against the Originator respecting a missing or
defective material document or a breach of the representations and warranties
contained in Section 5 or Section 6.

          SECTION 8. CLOSING; PAYMENT FOR THE MORTGAGE LOANS. The closing of the
purchase and sale of the Mortgage Loans shall be held at the New York City
office of Thacher Proffitt & Wood at 10:00 AM New York City time on the Closing
Date.

          The closing shall be subject to each of the following conditions:

          (a)  All of the representations and warranties of the Originator under
               this Agreement shall be true and correct in all material respects
               as of the date as

<PAGE>

                                      -15-

               of which they are made and no event shall have occurred which,
               with notice or the passage of time, would constitute a default
               under this Agreement;

          (b)  The Purchaser shall have received, or the attorneys of the
               Purchaser shall have received in escrow (to be released from
               escrow at the time of closing), all Closing Documents as
               specified in Section 9 of this Agreement, in such forms as are
               agreed upon and acceptable to the Purchaser, duly executed by all
               signatories other than the Purchaser as required pursuant to the
               respective terms thereof;

          (c)  The Originator shall have delivered or caused to be delivered and
               released to the Purchaser or to its designee, all documents
               (including without limitation, the Mortgage Loans) required to be
               so delivered by the Purchaser pursuant to Section 2.01 of the
               Pooling and Servicing Agreement; and

          (d)  All other terms and conditions of this Agreement shall have been
               complied with.

          Subject to the foregoing conditions, the Purchaser shall deliver or
cause to be delivered to the Originator on the Closing Date, against delivery
and release by the Originator to the Trustee of all documents required pursuant
to the Pooling and Servicing Agreement, the consideration for the Mortgage Loans
as specified in Section 3 of this Agreement, by delivery to the Originator of
the Purchase Price.

          SECTION 9. CLOSING DOCUMENTS. Without limiting the generality of
Section 8 hereof, the closing shall be subject to delivery of each of the
following documents:

          (a)  An Officers' Certificate of the Originator, dated the Closing
               Date, in form satisfactory to and upon which the Purchaser and
               the Underwriters may rely, and attached thereto copies of the
               certificate of incorporation, by-laws and certificate of good
               standing of the Originator under the laws of Delaware and stating
               that the information contained in the Prospectus Supplement,
               relating to the Mortgage Loans, the Originator, and its loan
               portfolio, is true and accurate in all material respects and does
               not contain any untrue statement of a material fact or omit to
               state a material fact required to be stated therein or necessary
               to make the statements therein, in light of the circumstances
               under which they were made, not misleading and (ii) if the Class
               CE Certificates and Class P Certificates are offered on the
               Closing Date pursuant to a Private Placement Memorandum, the
               Originator shall deliver an Officer's Certificate stating that
               the same information contained in such Private Placement
               Memorandum is true and accurate in all material respects;

<PAGE>

                                      -16-

          (b)  An Officers' Certificate of the Originator, dated the Closing
               Date, in form satisfactory to and upon which the Purchaser and
               the Underwriters may rely, with respect to certain facts
               regarding the sale of the Mortgage Loans by the Originator to the
               Purchaser;

          (c)  An Opinion of Counsel of the Originator, dated the Closing Date,
               in form satisfactory to and addressed to the Purchaser and the
               Underwriters;

          (d)  Such opinions of counsel from the Purchaser's or Originator's
               counsel as the Rating Agencies may request in connection with the
               sale of the Mortgage Loans by the Originator to the Purchaser or
               the Originator's execution and delivery of, or performance under,
               this Agreement and upon which the Underwriters may rely;

          (e)  A letter from Deloitte & Touche L.L.P., certified public
               accountants, dated the date hereof and to the effect that they
               have performed certain specified procedures as a result of which
               they determined that certain information of an accounting,
               financial or statistical nature set forth in the Prospectus
               Supplement, under the captions "Summary of Prospectus
               Supplement", "Risk Factors", "The Mortgage Pool", "Yield on the
               Certificates", "Description of the Certificates", and "Pooling
               and Servicing Agreement--The Originator and Master Servicer",
               agrees with the records of the Originator;

          (f)  The Originator shall deliver for inclusion in the Prospectus
               Supplement under the captions "The Mortgage Pool--Underwriting
               Standards; Representations" and "Pooling and Servicing
               Agreement--The Originator and Master Servicer", or for inclusion
               in other offering material such publicly available information
               regarding its financial condition and its mortgage loan
               delinquency, foreclosure and loss experience, underwriting
               standards, lending activities and loan sales, production, and
               servicing and collection practices, and any similar nonpublic,
               unaudited financial information; and

          (g)  Such further information, certificates, opinions and documents as
               the Purchaser or the Underwriters may reasonably request.

          SECTION 10. COSTS. The Originator shall pay (or shall reimburse the
Purchaser or any other Person to the extent that the Purchaser or such other
Person shall pay) all costs and expenses incurred in connection with the
transfer and delivery of the Mortgage Loans, including without limitation,
assignment of mortgage recording costs and/or fees for title policy endorsements
and continuations, the fees and expenses of the Originator's in-house
accountants and in-house attorneys, the costs and expenses incurred in
connection with producing the Originator's loan loss, foreclosure and
delinquency experience, and the costs and expenses incurred in connection with

<PAGE>

                                      -17-

obtaining the documents referred to in Sections 9(d) and 9(e) to the extent such
costs and expenses were not previously paid by the Originator. The Originator
shall pay (or shall reimburse the Purchaser or any other Person to the extent
that the Purchaser or such other Person shall pay) the costs and expenses of
printing (or otherwise reproducing) and delivering this Agreement, the Pooling
and Servicing Agreement, the Certificates, the prospectus, the prospectus
supplement, and the private placement memorandum relating to the Certificates
and other related documents, the initial fees, costs and expenses of the Trustee
relating to the issuance of the initial certification of the Trustee under
Section 2.02 of the Pooling and Servicing Agreement, the fees and expenses of
the Originator's counsel in connection with the preparation of all documents
relating to the securitization of the Mortgage Loans, the filing fee charged by
the Securities and Exchange Commission for registration of the Certificates, the
cost of outside special counsel that may be required for the Purchaser, the cost
of obtaining the documents referred to in Section 9(g) and the fees charged by
any rating agency to rate the Certificates. All other costs and expenses in
connection with the transactions contemplated hereunder shall be borne by the
party incurring such expense.

          SECTION 11. [Reserved]

          SECTION 12. [Reserved]

          SECTION 13. MANDATORY DELIVERY; GRANT OF SECURITY INTEREST. The sale
and delivery on the Closing Date of the Mortgage Loans described on the Mortgage
Loan Schedule in accordance with the terms and conditions of this Agreement is
mandatory. It is specifically understood and agreed that each Mortgage Loan is
unique and identifiable on the date hereof and that an award of money damages
would be insufficient to compensate the Purchaser for the losses and damages
incurred by the Purchaser in the event of the Originator's failure to deliver
the Mortgage Loans on or before the Closing Date. The Originator hereby grants
to the Purchaser a lien on and a continuing security interest in the
Originator's interest in each Mortgage Loan and each document and instrument
evidencing each such Mortgage Loan to secure the performance by the Originator
of its obligation hereunder, and the Originator agrees that it holds such
Mortgage Loans in custody for the Purchaser, subject to the Purchaser's (i)
right, prior to the Closing Date, to reject any Mortgage Loan to the extent
permitted by this Agreement, and (ii) obligation to deliver or cause to be
delivered the consideration for the Mortgage Loans pursuant to Section 8 hereof.
Any Mortgage Loans rejected by the Purchaser shall concurrently therewith be
released from the security interest created hereby. The Originator agrees that,
upon acceptance of the Mortgage Loans by the Purchaser or its designee and
delivery of payment to the Originator, that its security interest in the
Mortgage Loans shall be released. All rights and remedies of the Purchaser under
this Agreement are distinct from, and cumulative with, any other rights or
remedies under this Agreement or afforded by law or equity and all such rights
and remedies may be exercised concurrently, independently or successively.

     Notwithstanding the foregoing, if on the Closing Date, each of the
conditions set forth in Section 8 hereof shall have been satisfied and the
Purchaser shall not have paid or caused to be paid the Purchase Price, or any
such condition shall not have been waived or satisfied and the Purchaser

<PAGE>

                                      -18-

determines not to pay or cause to be paid the Purchase Price, the Purchaser
shall immediately effect the redelivery of the Mortgage Loans, if delivery to
the Purchaser has occurred and the security interest created by this Section 13
shall be deemed to have been released.

          SECTION 14. NOTICES. All demands, notices and communications hereunder
shall be in writing and shall be deemed to have been duly given if personally
delivered to or mailed by registered mail, postage prepaid, or transmitted by
telex or telegraph and confirmed by a similar mailed writing, if to the
Purchaser, addressed to the Purchaser at 1100 Town & Country Road, Suite 1100,
Orange, California 92868, Facsimile: (714) 564-9639, Attention: General Counsel,
or such other address as may hereafter be furnished to the Originator in writing
by the Purchaser; if to the Originator, addressed to the Originator at 1100 Town
& Country Road, Suite 1100, Orange, California 92868, Facsimile: (714) 564-9639,
Attention: General Counsel, or to such other address as the Originator may
designate in writing to the Purchaser.

          SECTION 15. SEVERABILITY OF PROVISIONS. Any part, provision,
representation or warranty of this Agreement which is prohibited or which is
held to be void or unenforceable shall be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions
hereof. Any part, provision, representation or warranty of this Agreement which
is prohibited or unenforceable or is held to be void or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction as to any Mortgage Loan shall not invalidate or render
unenforceable such provision in any other jurisdiction. To the extent permitted
by applicable law, the parties hereto waive any provision of law which prohibits
or renders void or unenforceable any provision hereof.

          SECTION 16. AGREEMENT OF PARTIES. The Originator and the Purchaser
agree to execute and deliver such instruments and take such actions as either of
the others may, from time to time, reasonably request in order to effectuate the
purpose and to carry out the terms of this Agreement and the Pooling and
Servicing Agreement.

          SECTION 17. SURVIVAL. The Originator agrees that the representations,
warranties and agreements made by it herein and in any certificate or other
instrument delivered pursuant hereto shall be deemed to be relied upon by the
Purchaser, notwithstanding any investigation heretofore or hereafter made by the
Purchaser or on its behalf, and that the representations, warranties and
agreements made by the Originator herein or in any such certificate or other
instrument shall survive the delivery of and payment for the Mortgage Loans and
shall continue in full force and effect, notwithstanding any restrictive or
qualified endorsement on the Mortgage Notes and notwithstanding subsequent
termination of this Agreement, the Pooling and Servicing Agreement or the Trust
Fund.

          SECTION 18. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS, DUTIES,
OBLIGATIONS AND RESPONSIBILITIES OF THE PARTIES HERETO SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE

<PAGE>

                                      -19-

LAWS (INCLUDING THE CHOICE OF LAW PROVISIONS) AND DECISIONS OF THE STATE OF NEW
YORK. THE PARTIES HERETO INTEND THAT THE PROVISIONS OF SECTION 5-1401 OF THE NEW
YORK GENERAL OBLIGATIONS LAW SHALL APPLY TO THIS AGREEMENT.

          SECTION 19. MISCELLANEOUS. This Agreement may be executed in two or
more counter-parts, each of which when so executed and delivered shall be an
original, but all of which together shall constitute one and the same
instrument. This Agreement shall inure to the benefit of and be binding upon the
parties hereto and their respective successors and assigns. This Agreement
supersedes all prior agreements and understandings relating to the subject
matter hereof. Neither this Agreement nor any term hereof may be changed,
waived, discharged or terminated orally, but only by an instrument in writing
signed by the party against whom enforcement of the change, waiver, discharge or
termination is sought. The headings in this Agreement are for purposes of
reference only and shall not limit or otherwise affect the meaning hereof.

          It is the express intent of the parties hereto that the conveyance of
the Mortgage Loans by the Originator to the Purchaser as provided in Section 4
hereof be, and be construed as, a sale of the Mortgage Loans by the Originator
to the Purchaser and not as a pledge of the Mortgage Loans by the Originator to
the Purchaser to secure a debt or other obligation of the Originator. However,
in the event that, notwithstanding the aforementioned intent of the parties, the
Mortgage Loans are held to be property of the Originator, then, (a) it is the
express intent of the parties that such conveyance be deemed a pledge of the
Mortgage Loans by the Originator to the Purchaser to secure a debt or other
obligation of the Originator and (b) (1) this Agreement shall also be deemed to
be a security agreement within the meaning of Articles 8 and 9 of the New York
Uniform Commercial Code; (2) the conveyance provided for in Section 4 hereof
shall be deemed to be a grant by the Originator to the Purchaser of a security
interest in all of the Originator's right, title and interest in and to the
Mortgage Loans and all amounts payable to the holders of the Mortgage Loans in
accordance with the terms thereof and all proceeds of the conversion, voluntary
or involuntary, of the foregoing into cash, instruments, securities or other
property, including without limitation all amounts, other than investment
earnings, from time to time held or invested in the Collection Account whether
in the form of cash, instruments, securities or other property; (3) the
possession by the Purchaser or its agent of Mortgage Notes, the related
Mortgages and such other items of property that constitute instruments, money,
negotiable documents or chattel paper shall be deemed to be "possession" for
purposes of perfecting the security interest pursuant to the New York Uniform
Commercial Code; and (4) notifications to persons holding such property, and
acknowledgments, receipts or confirmations from persons holding such property,
shall be deemed notifications to, or acknowledgments, receipts or confirmations
from, financial intermediaries, bailees or agents (as applicable) of the
Purchaser for the purpose of perfecting such security interest under applicable
law. Any assignment of the interest of the Purchaser pursuant to Section 4(d)
hereof shall also be deemed to be an assignment of any security interest created
hereby. The Originator and the Purchaser shall, to the extent consistent with
this Agreement, take such actions as may be necessary to ensure that, if this
Agreement were deemed to create a security interest in the Mortgage Loans, such
security

<PAGE>

                                      -20-

interest would be deemed to be a perfected security interest of first priority
under applicable law and will be maintained as such throughout the term of this
Agreement and the Pooling and Servicing Agreement.

<PAGE>

          IN WITNESS WHEREOF, the Originator and the Purchaser have caused their
names to be signed by their respective officers thereunto duly authorized as of
the date first above written.

                                                  AMERIQUEST MORTGAGE COMPANY

                                                  By: __________________________
                                                  Name:
                                                  Title:

                                                  AMERIQUEST MORTGAGE SECURITIES
                                                  INC.

                                                  By:___________________________
                                                  Name:
                                                  Title:

<PAGE>

                                    EXHIBIT E

                        REQUEST FOR RELEASE OF DOCUMENTS

    To:   Deutsche Bank National Trust Company,
          1761 East St. Andrew Place
          Santa Ana, CA 92705-4934
          Attn: Trust Administration - AQ020D

Re:       Pooling and Servicing Agreement dated as of December 1, 2002 among
          Ameriquest Mortgage Securities Inc., as Depositor, Ameriquest Mortgage
          Company, as Originator and Master Servicer, the Federal Home Loan
          Mortgage Corporation, as Guarantor and Deutsche Bank National Trust
          Company, as Trustee

          In connection with the administration of the Mortgage Loans held by
          you as Trustee pursuant to the above-captioned Trustee Agreement, we
          request the release, and hereby acknowledge receipt, of the Trustee's
          Mortgage File for the Mortgage Loan described below, for the reason
          indicated.

MORTGAGE LOAN NUMBER:

MORTGAGOR NAME. ADDRESS & ZIP CODE:

REASON FOR REQUESTING DOCUMENTS (check one):

_______  1.  Mortgage Paid in Full

_______  2.  Foreclosure

_______  3.  Substitution

_______  4.  Other Liquidation (Repurchases, etc.)

_______  5.  Nonliquidation              Reason:____________________

Address to which Trustee should deliver
the Trustee's Mortgage File:
_______________________________________________________________________________
_______________________________________________________________________________

                                      E-1-1

<PAGE>

                                   By:___________________________
                                          (authorized signer)

                                   Issuer:_______________________
                                   Address:______________________
                                   Date:_________________________

TRUSTEE

Deutsche Bank National Trust Company

     Please acknowledge the execution of the above request by your signature and
date below:

     __________________________                  _______________________
     Signature                                   Date

     Documents returned to Trustee:

     __________________________                  _______________________
     Trustee                                     Date

                                      E-1-2

<PAGE>

                                   EXHIBIT F-1

                    FORM OF TRANSFEROR REPRESENTATION LETTER

                                                           [DATED]

Deutsche Bank National Trust Company
1761 East St. Andrew Place
Santa Ana, California 92705-4934

               Re:  Ameriquest Mortgage Securities Inc., Asset-Backed Pass-
                    Through Certificates, Series 2002-5, Class [CE][P][R],
                    Representing a ___% Percentage Interest
                    -------------------------------------------------------

Ladies and Gentlemen:

          In connection with the transfer by ________________ (the "Transferor")
to ________________ (the "Transferee") of the captioned mortgage pass-through
certificates (the "Certificates"), the Transferor hereby certifies as follows:

          Neither the Transferor nor anyone acting on its behalf has (a)
offered, pledged, sold, disposed of or otherwise transferred any Certificate,
any interest in any Certificate or any other similar security to any person in
any manner, (b) has solicited any offer to buy or to accept a pledge,
disposition or other transfer of any Certificate, any interest in any
Certificate or any other similar security from any person in any manner, (c) has
otherwise approached or negotiated with respect to any Certificate, any interest
in any Certificate or any other similar security with any person in any manner,
(d) has made any general solicitation by means of general advertising or in any
other manner, (e) has taken any other action, that (in the case of each of
subclauses (a) through (e) above) would constitute a distribution of the
Certificates under the Securities Act of 1933, as amended (the "1933 Act"), or
would render the disposition of any Certificate a violation of Section 5 of the
1933 Act or any state securities law or would require registration or
qualification pursuant thereto. The Transferor will not act, nor has it
authorized or will it authorize any person to act, in any manner set forth in
the foregoing sentence with respect to any Certificate. The Transferor will not
sell or otherwise transfer any of the Certificates, except in compliance with
the provisions of that certain Pooling and Servicing Agreement, dated as of
December 1, 2002, among Ameriquest Mortgage Securities Inc. as Depositor,
Ameriquest Mortgage Company as Master Servicer and Deutsche Bank National Trust
Company as Trustee (the "Pooling and Servicing Agreement"), pursuant to which
Pooling and Servicing Agreement the Certificates were issued.

                                      F-1-1

<PAGE>

          Capitalized terms used but not defined herein shall have the meanings
assigned thereto in the Pooling and Servicing Agreement.

                                                   Very truly yours,

                                                   [Transferor]

                                                   By:__________________________
                                                   Name:
                                                   Title:

                                      F-1-2

<PAGE>

                    FORM OF TRANSFEREE REPRESENTATION LETTER

                                                      [Date]

Deutsche Bank National Trust Company
1761 East St. Andrew Place
Santa Ana, California 92705-4934

             Re:    Ameriquest Mortgage Securities Inc., Asset-Backed Pass-
                    Through Certificates, Series 2002-5, Class [CE][P][R],
                    Representing a ___% Percentage Interest
                    --------------------------------------------------------

Ladies and Gentlemen:

          In connection with the purchase from ______________________ (the
"Transferor") on the date hereof of the captioned trust certificates (the
"Certificates"), _______________ (the "Transferee") hereby certifies as follows:

          1. The Transferee is a "qualified institutional buyer" as that term is
     defined in Rule 144A ("Rule 144A") under the Securities Act of 1933 (the
     "1933 Act") and has completed either of the forms of certification to that
     effect attached hereto as Annex 1 or Annex 2. The Transferee is aware that
     the sale to it is being made in reliance on Rule 144A. The Transferee is
     acquiring the Certificates for its own account or for the account of a
     qualified institutional buyer, and understands that such Certificate may be
     resold, pledged or transferred only (i) to a person reasonably believed to
     be a qualified institutional buyer that purchases for its own account or
     for the account of a qualified institutional buyer to whom notice is given
     that the resale, pledge or transfer is being made in reliance on Rule 144A,
     or (ii) pursuant to another exemption from registration under the 1933 Act.

          2. The Transferee has been furnished with all information regarding
     (a) the Certificates and distributions thereon, (b) the nature, performance
     and servicing of the Mortgage Loans, (c) the Pooling and Servicing
     Agreement referred to below, and (d) any credit enhancement mechanism
     associated with the Certificates, that it has requested.

          All capitalized terms used but not otherwise defined herein have the
respective meanings assigned thereto in the Pooling and Servicing Agreement,
dated as of December 1, 2002, among Ameriquest Mortgage Securities Inc. as
Depositor, Ameriquest Mortgage Company as Master Servicer and Deutsche Bank
National Trust Company as Trustee, pursuant to which the Certificates were
issued.

                                               [TRANSFEREE]

                                               By: _____________________________
                                               Name:

                                      F-1-3

<PAGE>

                                               Title:

                                                          ANNEX 1 TO EXHIBIT F-1
                                                          ----------------------

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

          [For Transferees Other Than Registered Investment Companies]

          The undersigned hereby certifies as follows to [name of Transferor]
(the "Transferor") and Deutsche Bank National Trust Company as Trustee, with
respect to the mortgage pass-through certificates (the "Certificates") described
in the Transferee Certificate to which this certification relates and to which
this certification is an Annex:

          1. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
entity purchasing the Certificates (the "Transferee").

          2. In connection with purchases by the Transferee, the Transferee is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A") because (i) the Transferee owned and/or
invested on a discretionary basis $______________________1 in securities (except
for the excluded securities referred to below) as of the end of the Transferee's
most recent fiscal year (such amount being calculated in accordance with Rule
144A) and (ii) the Transferee satisfies the criteria in the category marked
below.

     ___  CORPORATION, ETC. The Transferee is a corporation (other than a bank,
          savings and loan association or similar institution), Massachusetts or
          similar business trust, partnership, or any organization described in
          Section 501(c)(3) of the Internal Revenue Code of 1986.

     ___  BANK. The Transferee (a) is a national bank or banking institution
          organized under the laws of any State, territory or the District of
          Columbia, the business of which is substantially confined to banking
          and is supervised by the State or territorial banking commission or
          similar official or is a foreign bank or equivalent institution, and
          (b) has an audited net worth of at least $25,000,000 as demonstrated
          in its latest annual financial statements, a copy of which is attached
          hereto.

     ___  SAVINGS AND LOAN. The Transferee (a) is a savings and loan
          association, building and loan association, cooperative bank,
          homestead association or similar institution, which is supervised and
          examined by a State or Federal authority having supervision over any
          such institutions or is a foreign savings and loan association or
          equivalent institution and (b) has an audited net worth of at least

                                      F-1-4

<PAGE>

          1Transferee must own and/or invest on a discretionary basis at least
          $100,000,000 in securities unless Transferee is a dealer, and, in that
          case, Transferee must own and/or invest on a discretionary basis at
          least $10,000,000 in securities. $25,000,000 as demonstrated in its
          latest annual financial statements, a copy of which is attached
          hereto.

     ___  BROKER-DEALER. The Transferee is a dealer registered pursuant to
          Section 15 of the Securities Exchange Act of 1934.

     ___  INSURANCE COMPANY. The Transferee is an insurance company whose
          primary and predominant business activity is the writing of insurance
          or the reinsuring of risks underwritten by insurance companies and
          which is subject to supervision by the insurance commissioner or a
          similar official or agency of a State, territory or the District of
          Columbia.

     ___  STATE OR LOCAL PLAN. The Transferee is a plan established and
          maintained by a State, its political subdivisions, or any agency or
          instrumentality of the State or its political subdivisions, for the
          benefit of its employees.

     ___  ERISA PLAN. The Transferee is an employee benefit plan within the
          meaning of Title I of the Employee Retirement Income Security Act of
          1974.

     ___  INVESTMENT ADVISOR. The Transferee is an investment advisor registered
          under the Investment Advisers Act of 1940.

          3. The term "Securities" as used herein does not include (i)
securities of issuers that are affiliated with the Transferee, (ii) securities
that are part of an unsold allotment to or subscription by the Transferee, if
the Transferee is a dealer, (iii) securities issued or guaranteed by the U.S. or
any instrumentality thereof, (iv) bank deposit notes and certificates of
deposit, (v) loan participations, (vi) repurchase agreements, (vii) securities
owned but subject to a repurchase agreement and (viii) currency, interest rate
and commodity swaps.

          4. For purposes of determining the aggregate amount of securities
owned and/or invested on a discretionary basis by the Transferee, the Transferee
used the cost of such securities to the Transferee and did not include any of
the securities referred to in the preceding paragraph. Further, in determining
such aggregate amount, the Transferee may have included securities owned by
subsidiaries of the Transferee, but only if such subsidiaries are consolidated
with the Transferee in its financial statements prepared in accordance with
generally accepted accounting principles and if the investments of such
subsidiaries are managed under the Transferee's direction. However, such
securities were not included if the Transferee is a majority- owned,
consolidated subsidiary of another enterprise and the Transferee is not itself a
reporting company under the Securities Exchange Act of 1934.

          5. The Transferee acknowledges that it is familiar with Rule 144A and
understands that the Transferor and other parties related to the Certificates
are relying and will

                                      F-1-5

<PAGE>

continue to rely on the statements made herein because one or more sales to the
Transferee may be in reliance on Rule 144A.

     _____    _____    Will the Transferee be purchasing the Certificates
     Yes      No       only for the Transferee's own account?

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

          7. The Transferee will notify each of the parties to which this
certification is made of any changes in the information and conclusions herein.
Until such notice is given, the Transferee's purchase of the Certificates will
constitute a reaffirmation of this certification as of the date of such
purchase. In addition, if the Transferee is a bank or savings and loan as
provided above, the Transferee agrees that it will furnish to such parties
updated annual financial statements promptly after they become available.

Dated:

                                             Print Name of Transferee

                                             By:______________________________
                                             Name:
                                             Title:

                                      F-1-6

<PAGE>

                                                          ANNEX 2 TO EXHIBIT F-1
                                                          ----------------------

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

           [For Transferees That Are Registered Investment Companies]

          The undersigned hereby certifies as follows to [name of Transferor]
(the "Transferor") and Deutsche Bank National Trust Company, as Trustee, with
respect to the mortgage pass-through certificates (the "Certificates") described
in the Transferee Certificate to which this certification relates and to which
this certification is an Annex:

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

          2. In connection with purchases by the Transferee, the Transferee is a
"qualified institutional buyer" as defined in Rule 144A because (i) the
Transferee is an investment company registered under the Investment Company Act
of 1940, and (ii) as marked below, the Transferee alone, or the Transferee's
Family of Investment Companies, owned at least $100,000,000 in securities (other
than the excluded securities referred to below) as of the end of the
Transferee's most recent fiscal year. For purposes of determining the amount of
securities owned by the Transferee or the Transferee's Family of Investment
Companies, the cost of such securities was used.

     ____ The Transferee owned $___________________ in securities (other than
the excluded securities referred to below) as of the end of the Transferee's
most recent fiscal year (such amount being calculated in accordance with Rule
144A).

     ____ The Transferee is part of a Family of Investment Companies which owned
in the aggregate $______________ in securities (other than the excluded
securities referred to below) as of the end of the Transferee's most recent
fiscal year (such amount being calculated in accordance with Rule 144A).

          3. The term "Family of Investment Companies" as used herein means two
or more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

          4. The term "Securities" as used herein does not include (i)
securities of issuers that are affiliated with the Transferee or are part of the
Transferee's Family of Investment Companies, (ii) securities issued or
guaranteed by the U.S. or any instrumentality thereof, (iii) bank deposit notes
and certificates of deposit, (iv) loan participations, (v) repurchase
agreements, (vi) securities owned but subject to a repurchase agreement and
(vii) currency, interest rate and commodity swaps.

                                      F-1-7

<PAGE>

          5. The Transferee is familiar with Rule 144A and understands that the
parties to which this certification is being made are relying and will continue
to rely on the statements made herein because one or more sales to the
Transferee will be in reliance on Rule 144A. In addition, the Transferee will
only purchase for the Transferee's own account.

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

Dated:

                                            Print Name of Transferee or Advisor

                                            By:      ___________________________
                                            Name:
                                            Title:

                                            IF AN ADVISER:

_______________________________________
                                            Print Name of Transferee

                                      F-1-8

<PAGE>

                    FORM OF TRANSFEREE REPRESENTATION LETTER

          The undersigned hereby certifies on behalf of the purchaser named
below (the "Purchaser") as follows:

          1. I am an executive officer of the Purchaser.

          2. The Purchaser is a "qualified institutional buyer", as defined in
     Rule 144A, ("Rule 144A") under the Securities Act of 1933, as amended.

          3. As of the date specified below (which is not earlier than the last
     day of the Purchaser's most recent fiscal year), the amount of
     "securities", computed for purposes of Rule 144A, owned and invested on a
     discretionary basis by the Purchaser was in excess of $100,000,000.

Name of Purchaser        _______________________________________________________

By:    (Signature)       _______________________________________________________

Name of Signatory        _______________________________________________________

Title    _______________________________________________________________________

Date of this certificate _______________________________________________________

Date of information provided in paragraph 3 ____________________________________

                                      F-1-9

<PAGE>

                                   EXHIBIT F-2

                    FORM OF TRANSFER AFFIDAVIT AND AGREEMENT

STATE OF NEW YORK         )
                          : ss.:
COUNTY OF NEW YORK        )

          ____________________________, being duly sworn, deposes, represents
and warrants as follows:

          1. I am a ______________________ of ____________________________ (the
"Owner") a corporation duly organized and existing under the laws of
______________, the record owner of Ameriquest Mortgage Securities Inc.,
Asset-Backed Pass-Through Certificates, Series 2002-5, [Class R] (the "Class R
Certificates"), on behalf of whom I make this affidavit and agreement.
Capitalized terms used but not defined herein have the respective meanings
assigned thereto in the Pooling and Servicing Agreement pursuant to which the
Class R Certificates were issued.

          2. The Owner (i) is and will be a "Permitted Transferee" as of
____________________, 2002 and (ii) is acquiring the Class R Certificates for
its own account or for the account of another Owner from which it has received
an affidavit in substantially the same form as this affidavit. A "Permitted
Transferee" is any person other than a "disqualified organization" or a
possession of the United States. For this purpose, a "disqualified organization"
means the United States, any state or political subdivision thereof, any agency
or instrumentality of any of the foregoing (other than an instrumentality all of
the activities of which are subject to tax and, except for the Federal Home Loan
Mortgage Corporation, a majority of whose board of directors is not selected by
any such governmental entity) or any foreign government, international
organization or any agency or instrumentality of such foreign government or
organization, any rural electric or telephone cooperative, or any organization
(other than certain farmers' cooperatives) that is generally exempt from federal
income tax unless such organization is subject to the tax on unrelated business
taxable income.

          3. The Owner is aware (i) of the tax that would be imposed on
transfers of the Class R Certificates to disqualified organizations under the
Internal Revenue Code of 1986 that applies to all transfers of the Class R
Certificates after March 31, 1988; (ii) that such tax would be on the transferor
or, if such transfer is through an agent (which person includes a broker,
nominee or middleman) for a non-Permitted Transferee, on the agent; (iii) that
the person otherwise liable for the tax shall be relieved of liability for the
tax if the transferee furnishes to such person an affidavit that the transferee
is a Permitted Transferee and, at the time of transfer, such person does not
have actual knowledge that the affidavit is false; and (iv) that each of the
Class R Certificates may be a "noneconomic residual interest" within the meaning
of proposed Treasury regulations promulgated under the Code and that the
transferor of a "noneconomic residual interest" will remain liable for any taxes
due with respect to the income on such residual interest, unless no significant
purpose of the transfer is to impede the assessment or collection of tax.

                                      F-2-1

<PAGE>

          4. The Owner is aware of the tax imposed on a "pass-through entity"
holding the Class R Certificates if, at any time during the taxable year of the
pass-through entity, a non- Permitted Transferee is the record holder of an
interest in such entity. (For this purpose, a "pass- through entity" includes a
regulated investment company, a real estate investment trust or common trust
fund, a partnership, trust or estate, and certain cooperatives.)

          5. The Owner is aware that the Certificate Registrar will not register
the transfer of any Class R Certificate unless the transferee, or the
transferee's agent, delivers to the Certificate Registrar, among other things,
an affidavit in substantially the same form as this affidavit. The Owner
expressly agrees that it will not consummate any such transfer if it knows or
believes that any of the representations contained in such affidavit and
agreement are false.

          6. The Owner consents to any additional restrictions or arrangements
that shall be deemed necessary upon advice of counsel to constitute a reasonable
arrangement to ensure that the Class R Certificates will only be owned, directly
or indirectly, by an Owner that is a Permitted Transferee.

          7. The Owner's taxpayer identification number is ____________.

          8. The Owner has reviewed the restrictions set forth on the face of
the Class R Certificates and the provisions of Section 5.02(d) of the Pooling
and Servicing Agreement under which the Class R Certificates were issued (in
particular, clauses (iii)(A) and (iii)(B) of Section 5.02(d) which authorize the
Trustee to deliver payments to a person other than the Owner and negotiate a
mandatory sale by the Trustee in the event that the Owner holds such Certificate
in violation of Section 5.02(d)); and that the Owner expressly agrees to be
bound by and to comply with such restrictions and provisions.

          9. The Owner is not acquiring and will not transfer the Class R
Certificates in order to impede the assessment or collection of any tax.

          10. The Owner anticipates that it will, so long as it holds the Class
R Certificates, have sufficient assets to pay any taxes owed by the holder of
such Class R Certificates, and hereby represents to and for the benefit of the
person from whom it acquired the Class R Certificates that the Owner intends to
pay taxes associated with holding such Class R Certificates as they become due,
fully understanding that it may incur tax liabilities in excess of any cash
flows generated by the Class R Certificates.

          11. The Owner has no present knowledge that it may become insolvent or
subject to a bankruptcy proceeding for so long as it holds the Class R
Certificates.

          12. The Owner has no present knowledge or expectation that it will be
unable to pay any United States taxes owed by it so long as any of the
Certificates remain outstanding.

          13. The Owner is not acquiring the Class R Certificates with the
intent to transfer the Class R Certificates to any person or entity that will
not have sufficient assets to pay

                                      F-2-2

<PAGE>

any taxes owed by the holder of such Class R Certificates, or that may become
insolvent or subject to a bankruptcy proceeding, for so long as the Class R
Certificates remain outstanding.

          14. The Owner will, in connection with any transfer that it makes of
the Class R Certificates, obtain from its transferee the representations
required by Section 5.02(d) of the Pooling and Servicing Agreement under which
the Class R Certificate were issued and will not consummate any such transfer if
it knows, or knows facts that should lead it to believe, that any such
representations are false.

          15. The Owner will, in connection with any transfer that it makes of
the Class R Certificates, deliver to the Certificate Registrar an affidavit,
which represents and warrants that it is not transferring the Class R
Certificates to impede the assessment or collection of any tax and that it has
no actual knowledge that the proposed transferee: (i) has insufficient assets to
pay any taxes owed by such transferee as holder of the Class R Certificates;
(ii) may become insolvent or subject to a bankruptcy proceeding for so long as
the Class R Certificates remains outstanding; and (iii) is not a "Permitted
Transferee".

          16. The Owner is a citizen or resident of the United States, a
corporation or partnership (or other entity treated as a corporation or
partnership for federal income tax purposes) created or organized in, or under
the laws of, the United States, any state thereof or the District of Columbia
(except, in the case of a partnership or entity treated as a partnership, to the
extent provided in regulations), an estate the income of which is subject to
United States federal income taxation regardless of its source or a trust other
than a "foreign trust" described in section 7701(a)(31) of the Code.

                                      F-2-3

<PAGE>

          IN WITNESS WHEREOF, the Owner has caused this instrument to be
executed on its behalf, pursuant to the authority of its Board of Directors, by
its [Vice] President, attested by its [Assistant] Secretary, this ____ day of
__________, 200__.

                                              [OWNER]

                                              By:______________________________
                                              Name:
                                              Title:   [Vice] President

ATTEST:

By:      ______________________________
Name:
Title:   [Assistant] Secretary

          Personally appeared before me the above-named , known or proved to me
to be the same person who executed the foregoing instrument and to be a [Vice]
President of the Owner, and acknowledged to me that [he/she] executed the same
as [his/her] free act and deed and the free act and deed of the Owner.

          Subscribed and sworn before me this ____ day of __________, 200__.

                                                 _______________________________
                                                          Notary Public

                                                 County of _____________________
                                                 State of
__________________________

                                                 My Commission expires:

                                      F-2-4

<PAGE>

                          FORM OF TRANSFEROR AFFIDAVIT

STATE OF NEW YORK         )
                          : ss. :
COUNTY OF NEW YORK        )

          _______________________________________, being duly sworn, deposes,
represents and warrants _____________________________ as follows:

          1. I am a ____________________ of (the "Owner"), a corporation duly
organized and existing under the laws of ______________, on behalf of whom I
make this affidavit.

          2. The Owner is not transferring the [Class R] (the "Residual
Certificates") to impede the assessment or collection of any tax.

          3. The Owner has no actual knowledge that the Person that is the
proposed transferee (the "Purchaser") of the Residual Certificates: (i) has
insufficient assets to pay any taxes owed by such proposed transferee as holder
of the Residual Certificates; (ii) may become insolvent or subject to a
bankruptcy proceeding for so long as the Residual Certificates remain
outstanding and (iii) is not a Permitted Transferee.

          4. The Owner understands that the Purchaser has delivered to the
Certificate Registrar a transfer affidavit and agreement in the form attached to
the Pooling and Servicing Agreement as Exhibit F-2. The Owner does not know or
believe that any representation contained therein is false.

          5. At the time of transfer, the Owner has conducted a reasonable
investigation of the financial condition of the Purchaser as contemplated by
Treasury Regulations Section 1.860E-1(c)(4)(i) and, as a result of that
investigation, the Owner has determined that the Purchaser has historically paid
its debts as they became due and has found no significant evidence to indicate
that the Purchaser will not continue to pay its debts as they become due in the
future. The Owner understands that the transfer of a Residual Certificate may
not be respected for United States income tax purposes (and the Owner may
continue to be liable for United States income taxes associated therewith)
unless the Owner has conducted such an investigation.

          6. Capitalized terms not otherwise defined herein shall have the
meanings ascribed to them in the Pooling and Servicing Agreement.

                                      F-2-5

<PAGE>

          IN WITNESS WHEREOF, the Owner has caused this instrument to be
executed on its behalf, pursuant to the authority of its Board of Directors, by
its [Vice] President, attested by its [Assistant] Secretary, this ____ day of
___________, 200__.

                                             [OWNER]

                                             By:    __________________________
                                             Name:
                                             Title: [Vice] President

ATTEST:

By:    ______________________________
Name:
Title: [Assistant] Secretary

          Personally appeared before me the above-named , known or proved to me
to be the same person who executed the foregoing instrument and to be a [Vice]
President of the Owner, and acknowledged to me that [he/she] executed the same
as [his/her] free act and deed and the free act and deed of the Owner.

          Subscribed and sworn before me this ____ day of __________, 200__.

                                              ______________________________
                                                       Notary Public

                                              County of
_____________________________
                                              State of
______________________________

                                              My Commission expires:

                                      F-2-6

<PAGE>

                                       G-1

<PAGE>

                                    EXHIBIT G

            FORM OF CERTIFICATION WITH RESPECT TO ERISA AND THE CODE

                              _____________, 200__

Ameriquest Mortgage Securities Inc.         Deutsche Bank National Trust Company
1100 Town & Country Road                    1761 East St. Andrew Place
Orange, California 92868                    Santa Ana, California 92705-4934
Ameriquest Mortgage Company
1100 Town & Country Road
Orange, California 92868

           Re:   Ameriquest Mortgage Securities Inc., Asset-Backed Pass-Through
                 Certificates, Series 2002-5, Class [CE][P][R]
                 --------------------------------------------------------------

Dear Ladies and Gentlemen:

          __________________________________ (the "Transferee") intends to
acquire from _____________________ (the "Transferor") $____________ Initial
Certificate Principal Balance of Ameriquest Mortgage Securities Inc.,
Asset-Backed Pass-Through Certificates, Series 2002-5, Class ___ (the
"Certificates"), issued pursuant to a Pooling and Servicing Agreement (the
"Pooling and Servicing Agreement") dated as of December 1, 2002 among Ameriquest
Mortgage Securities Inc. as depositor (the "Depositor"), Ameriquest Mortgage
Company as master servicer (the "Master Servicer") and Deutsche Bank National
Trust Company as trustee (the "Trustee"). Capitalized terms used herein and not
otherwise defined shall have the meanings assigned thereto in the Pooling and
Servicing Agreement. The Transferee hereby certifies, represents and warrants
to, and covenants with the Depositor, the Trustee and the Master Servicer that
the following statements in either (1) or (2) are accurate:

          The Certificates (i) are not being acquired by, and will not be
transferred to, any employee benefit plan within the meaning of section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), or
other retirement arrangement, including individual retirement accounts and
annuities, Keogh plans and bank collective investment funds and insurance
company general or separate accounts in which such plans, accounts or
arrangements are invested, that is subject to Section 406 of ERISA or Section
4975 of the Internal Revenue Code of 1986 (the "Code") (any of the foregoing, a
"Plan"), (ii) are not being acquired with "plan assets" of a Plan within the
meaning of the Department of Labor ("DOL") regulation, 29 C.F.R. ss. 2510.3-101,
and (iii) will not be transferred to any entity that is deemed to be investing
in plan assets within the meaning of the DOL regulation at 29 C.F.R.ss.2510.3-
101.

                                              Very truly yours,

                                              By: ______________________________
                                              Name:
                                              Title:

                                       G-2

<PAGE>

                                    EXHIBIT H

                           LOSS MITIGATION ACTION PLAN

--------------------------------------------------------------------------------
DEFAULT MITIGATION ACTION                  SUPPORTING STANDARDS
--------------------------------------------------------------------------------
Forbearance Workout                        Borrower documents a temporary
Defer any of the following:                financial hardship resulting in
1.accrued interest                         request for a forbearance Borrower
2.past due principal                       documents financial ability to pay
3.escrow advances                          under the proposed forbearance terms
4.corporate advances                       Borrower expresses a willingness to
5.ancillary fees                           perform. Current monthly payments are
6.any combination of the above             scheduled to be made prior to late
                                           charge date during the forbearance
                                           term
--------------------------------------------------------------------------------
Loan Modification Workout                  Borrower documents a non-temporary
Any of the following:                      financial hardship resulting in the
1.waive accrued interest                   request for a loan modification
2.waive past due principal                 Borrower documents financial ability
3.waive corporate advances                 to pay under the proposed loan
4.waive ancillary fees                     modification terms
5.reduce principal                         Borrower does not have the ability to
6.reduce interest rate                     pay under the original loan terms
7.any combination of the above items       Borrower expresses a willingness to
8.any combination with the Forbearance     perform
items                                      No waiver of escrow advances (taxes
                                           and insurance) is allowed
--------------------------------------------------------------------------------
Short Sale Disposal                        Sale to a third party
Waive or negotiate a reduced amount of     Independent appraisal supports sale
any of the following:                      price
1.accrued interest                         No cash to seller (borrower),
2.principal                                excluding costs necessary to close
3.escrow advances                          Borrower does not have the ability
4.corporate advances                       and/or willingness to pay
5.ancillary fees                           Borrower no longer wants property
6.prepayment charges
7.any combination of the above items

                                      H-3

<PAGE>

--------------------------------------------------------------------------------
DEFAULT MITIGATION ACTION                  SUPPORTING STANDARDS
--------------------------------------------------------------------------------
Short pay-off Disposal                     Refinance by independent third party
Waive or negotiate a reduced amount of     Lender
any of the following:                      Independent appraisal supports new
1.accrued interest                         loan amount New loan is no cash out
2.principal                                (i.e. no cash to borrower excluding
3.escrow advances                          costs necessary to close)
4.corporate advances                       Borrower has expressed his/her
5.ancillary fees                           unwillingness to pay
6.prepayment charges                       Anticipated refinance time frame is
7.any combination of the above items       less than anticipated foreclosure
                                           time frame
--------------------------------------------------------------------------------
DEED-IN-LIEU DISPOSAL                      Borrower has already or will abandon
                                           the property or is willing to vacate
                                           the property (in a broom sweep
                                           condition) on a mutually agreeable
                                           date Borrower does not have the
                                           ability and/or willingness to pay
                                           Independent appraisal confirms
                                           property has a value Title is clean
                                           Property appears to be resalable
                                           based on condition and value shown in
                                           independent appraisal Property does
                                           not appear to have any environmental
                                           or hazardous conditions (or such
                                           conditions appear to be curable)
--------------------------------------------------------------------------------
FORECLOSURE DISPOSAL                       Borrower has already or will abandon
                                           the property (which may be by an
                                           eviction proceeding or mutual
                                           agreement) Borrower does not have the
                                           ability and/or willingness to pay
                                           Independent appraisal confirms
                                           property has a value Property appears
                                           to be resalable based on condition
                                           and value shown in independent
                                           appraisal Property does not appear to
                                           have any environmental or hazardous
                                           conditions (or such conditions appear
                                           to be curable)

     Workouts in the form of either a Forbearance or Loan Modification require
that the Borrower document the existence of a financial hardship leading to the
payment delinquency and document the ability to make the payments required under
the proposed Forbearance or Loan Modification. If the Borrower fails to meet
both of these conditions or the Borrower is uncooperative, a Disposal

                                       H-4

<PAGE>

Loss Mitigation Action will be employed to liquidate the delinquent loan,
assuming the Borrower does not otherwise cure the existing default. Each of the
Default Mitigation Actions and Supporting Standards may not be applicable to
each and every loan subject to a default in its monthly payments and in those
cases where a Default Mitigation Action or Supporting Standard may be
applicable, each is subject to amendment and/or waiver on an individual basis
pursuant to applicable federal, state and local laws, decisional authorities,
court orders, instructions of regulatory and/or other governmental authorities,
the advice of legal counsel, instructions from the Trustee and changes in the
loan servicing standards.

                                       H-5

<PAGE>

                                    EXHIBIT I

                             FORM OF ADDITION NOTICE

                                               ____________, 2002

Deutsche Bank National Trust Company
1761 East St. Andrew Place
Santa Ana, California 92705-4934

          Re:  Pooling and Servicing Agreement, dated as of December 1, 2002,
               among Ameriquest Mortgage Securities Inc., Ameriquest Mortgage
               Company and Deutsche Bank National Trust Company, relating to
               Ameriquest Mortgage Securities Inc., Asset-backed Pass-through
               Certificates, Series 2002-5
               ---------------------------------------------------------------
Ladies and Gentlemen:

          Pursuant to Section 2.10 of the referenced Pooling and Servicing
Agreement, Ameriquest Mortgage Securities Inc. has designated Subsequent
Mortgage Loans to be sold to the Trust Fund on ________, 2002 with an aggregate
principal balance of $_______________. Capitalized terms not otherwise defined
herein have the meaning set forth in the Pooling and Servicing Agreement.

          Please acknowledge your receipt of this notice by countersigning the
enclosed copy in the space indicated below and returning it to the attention of
the undersigned.

                                           Very truly yours,

                                           AMERIQUEST MORTGAGE
                                           SECURITIES INC.

                                           By:________________________
                                           Name:
                                           Title:

Acknowledged and Agreed:

DEUTSCHE BANK NATIONAL TRUST COMPANY,
 as Trustee

By:__________________________
Name:
Title:

                                       I-1

<PAGE>

                                    EXHIBIT J

                     FORM OF SUBSEQUENT TRANSFER INSTRUMENT

          Pursuant to this Subsequent Transfer Instrument, dated _______, 2002
(the "Instrument"), between Ameriquest Mortgage Securities Inc. as seller (the
"Depositor") and Deutsche Bank National Trust Company as trustee (the "Trustee")
of the Ameriquest Mortgage Securities Inc., Asset-Backed Pass-Through
Certificates, Series 2002-5, and pursuant to the Pooling and Servicing
Agreement, dated as of December 1, 2002 (the "Pooling and Servicing Agreement"),
among the Depositor as depositor, Ameriquest Mortgage Company as master servicer
and the Trustee as trustee, the Depositor and the Trustee agree to the sale by
the Depositor and the purchase by the Trustee on behalf of the Trust Fund, of
the Mortgage Loans listed on the attached Schedule of Mortgage Loans (the
"Subsequent Mortgage Loans").

          Capitalized terms used but not otherwise defined herein shall have the
meanings set forth in the Pooling and Servicing Agreement.

          Section 1. CONVEYANCE OF SUBSEQUENT MORTGAGE LOANS.

          (a) The Depositor does hereby sell, transfer, assign, set over and
convey to the Trustee on behalf of the Trust Fund, without recourse, all of its
right, title and interest in and to the Subsequent Mortgage Loans, and including
all amounts due on the Subsequent Mortgage Loans after the related Subsequent
Cut-off Date, and all items with respect to the Subsequent Mortgage Loans to be
delivered pursuant to Section 2.01 of the Pooling and Servicing Agreement;
provided, however that the Depositor reserves and retains all right, title and
interest in and to amounts due on the Subsequent Mortgage Loans on or prior to
the related Subsequent Cut-off Date. The Depositor, contemporaneously with the
delivery of this Agreement, has delivered or caused to be delivered to the
Trustee each item set forth in Section 2.01 of the Pooling and Servicing
Agreement. The transfer to the Trustee by the Depositor of the Subsequent
Mortgage Loans identified on the Mortgage Loan Schedule shall be absolute and is
intended by the Depositor, the Master Servicer, the Trustee and the
Certificateholders to constitute and to be treated as a sale by the Depositor to
the Trust Fund.

          (b) The Depositor, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey to the
Trustee without recourse for the benefit of the Certificateholders all the
right, title and interest of the Depositor, in, to and under the Subsequent
Mortgage Loan Purchase Agreement, dated the date hereof, between the Depositor
as purchaser and the Master Servicer as originator and as seller, to the extent
of the Subsequent Mortgage Loans.

          (c) Additional terms of the sale are set forth on Attachment A hereto.

     Section 2. REPRESENTATIONS AND WARRANTIES; CONDITIONS PRECEDENT.

                                       J-1

<PAGE>

          (a) The Depositor hereby confirms that each of the conditions
precedent and the representations and warranties set forth in Section 2.10 of
the Pooling and Servicing Agreement are satisfied as of the date hereof.

          (b) All terms and conditions of the Pooling and Servicing Agreement
are hereby ratified and confirmed; provided, however, that in the event of any
conflict, the provisions of this Instrument shall control over the conflicting
provisions of the Pooling and Servicing Agreement.

          Section 3. RECORDATION OF INSTRUMENT.

          To the extent permitted by applicable law, this Instrument, or a
memorandum thereof if permitted under applicable law, is subject to recordation
in all appropriate public offices for real property records in all of the
counties or other comparable jurisdictions in which any or all of the properties
subject to the Mortgages are situated, and in any other appropriate public
recording office or elsewhere, such recordation to be effected by the Master
Servicer at the Certificateholders' expense on direction of the related
Certificateholders, but only when accompanied by an Opinion of Counsel to the
effect that such recordation materially and beneficially affects the interests
of the Certificateholders or is necessary for the administration or servicing of
the Mortgage Loans.

          Section 4. GOVERNING LAW.

          This Instrument shall be construed in accordance with the laws of the
State of New York and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws, without giving
effect to principles of conflicts of law.

          Section 5. COUNTERPARTS.

          This Instrument may be executed in one or more counterparts and by the
different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same instrument.

                                       J-2

<PAGE>

          Section 6. SUCCESSORS AND ASSIGNS.

          This Instrument shall inure to the benefit of and be binding upon the
Depositor and the Trustee and their respective successors and assigns.

                                           AMERIQUEST MORTGAGE SECURITIES INC.

                                           By: ________________________________
                                           Name:
                                           Title:

                                           DEUTSCHE BANK NATIONAL TRUST
                                           COMPANY,
                                           as Trustee

                                           By:_________________________________
                                           Name:
                                           Title:

ATTACHMENTS

A.   Additional terms of sale.
B.   Schedule of Subsequent Mortgage Loans.

                                       J-3

<PAGE>

                                  ATTACHMENT A

                            ADDITIONAL TERMS OF SALE

     A.  General

         1.   Subsequent Cut-off Date: ________, 2002
         2.   Subsequent Transfer Date: ________, 2002
         3.   Aggregate Principal Balance of the Subsequent Mortgage Loans as of
              the Subsequent Cut-off Date: $______________
         4.   Purchase Price: 100.00%

     B.  The obligation of the Trust Fund to purchase a Subsequent Mortgage Loan
on any Subsequent Transfer Date is subject to the satisfaction of the conditions
set forth in paragraph (d) below and the accuracy of the following
representations and warranties with respect to such Subsequent Mortgage Loan
determined as of the related Subsequent Cut-off Date: (i) the Subsequent
Mortgage Loan may not be 30 or more days delinquent as of the related Subsequent
Cut-off Date; (ii) the remaining term to stated maturity of the Subsequent
Mortgage Loan will not be less than _____ months and will not exceed ____ months
from its first payment date; (iii) the Subsequent Mortgage Loan may not provide
for negative amortization; (iv) the Subsequent Mortgage Loan will not have a
Loan-to-Value Ratio greater than _____%; (v) the Subsequent Mortgage Loans will
have, as of the Subsequent Cut-off Date, a weighted average term since
origination not in excess of ____ months; (vi) no Subsequent Mortgage Loan shall
have a Mortgage Rate less than _____% or greater than _____%; (vii) the
Subsequent Mortgage Loan shall have been serviced by the Master Servicer since
origination or purchased by the Originator in accordance with its underwriting
guidelines; (viii) the Subsequent Mortgage Loan must have a first payment date
occurring on or before ______________ and (ix) the Subsequent Mortgage Loan
shall have been underwritten in accordance with the criteria set forth under the
section "The Mortgage Pool--Underwriting Standards; Representations" in the
Prospectus Supplement.

     C.  Following the purchase of the Subsequent Group I Mortgage Loans, the
Group I Mortgage Loans (including the related Subsequent Group I Mortgage Loans)
will, as of the related Subsequent Cut-off Date: (i) have a weighted average
original term to stated maturity of not more than _____ months from the first
payment date thereon; (ii) have a weighted average Mortgage Rate of not less
than ______% and not more than ______%; (iii) have a weighted average
Loan-to-Value Ratio of not more than ______%, (iv) consist of Mortgage Loans
covered by the PMI Policy representing no less than approximately ______% of the
Group I Mortgage Loans, (v) have no Mortgage Loan with a principal balance in
excess of $________ and (vi) consist of Mortgage Loans with Prepayment Charges
representing no less than approximately ______% of the Group I Mortgage Loans,
in each case, measured by aggregate principal balance of the Group I Mortgage
Loans as of the related Cut-off Date.

          Following the purchase of the Subsequent Group II Mortgage Loans, the
Group II Mortgage Loans (including the related Subsequent Group II Mortgage
Loans) will, as of the related Subsequent Cut-off Date: (i) have a weighted
average original term to stated maturity of not more than ______ months from the
first payment date thereon; (ii) have a weighted average Mortgage Rate

                                       J-4

<PAGE>

of not less than ______% and not more than ______%; (iii) have a weighted
average Loan-to-Value Ratio of not more than ______%; (iv) have no Mortgage Loan
with a principal balance in excess of $_________ (v) consist of Mortgage Loans
covered by the PMI Policy representing no less than approximately ______% of the
Group II Mortgage Loans; (vi) consist of Mortgage Loans with Prepayment Charges
representing no less than approximately ______% of the Group II Mortgage Loans;
and (v) have a weighted average Gross Margin of not less than ______%, in each
case, measured by aggregate principal balance of the Group II Mortgage Loans as
of the related Cut-off Date.

                                       J-5

<PAGE>

                                    EXHIBIT K

                     FORM OF NOTICE FOR LOCATION OF ACCOUNTS

                                             December __, 2002

Ameriquest Mortgage Securities Inc.
1100 Town & Country Road, Suite 1100
Orange, California 92868
Attn: General Counsel

[NIMS INSURER]

     Re:  Pooling and Servicing Agreement (the "Pooling and Servicing
          Agreement"), dated as of December 1, 2002 among Ameriquest
          Mortgage Securities Inc., as Depositor, Ameriquest Mortgage
          Company, as Master Servicer and Deutsche Bank National Trust
          Company, as Trustee, with Respect to Asset- Backed Pass-through
          Certificates, Series 2002-5
          ---------------------------------------------------------------

 Dear Sirs:

          Pursuant to Section 3.04(i) of the above referenced Pooling and
Servicing Agreement you are hereby notified of the location and the date of
establishment of the following accounts:

          [Distribution Account
          Interest Coverage Accounts
          Net WAC Rate Carryover Reserve Account
          Excess Net WAC Rate Reserve Account
          Pre-Funding Accounts]

          The accounts were established on December __, 2002, are held at
Deutsche Bank National Trust Company in New York, New York, and are maintained
by Deutsche Bank National Trust Company at 1761 East St. Andrew Place, Santa
Ana, California 92705.

          If you should have any questions, please feel free to contact me at
(714) 247-_______.

                                           Very truly yours,

                                           DEUTSCHE BANK NATIONAL TRUST
                                           COMPANY

                                           By:_______________________________
                                           Name:
                                           Title:

                                       K-1

<PAGE>

                     FORM OF NOTICE FOR LOCATION OF ACCOUNTS

                                              December __, 2002

Deutsche Bank National Trust Company
1761 East St. Andrew Place
Santa Ana, California 92705

[NIMS INSURER]

          Re:  Pooling and Servicing Agreement (the "Pooling and Servicing
               Agreement"), dated as of December 1, 2002 among Ameriquest
               Mortgage Securities Inc., as Depositor, Ameriquest Mortgage
               Company, as Master Servicer and Deutsche Bank National Trust
               Company, as Trustee, with respect to Asset- Backed Pass-through
               Certificates, Series 2002-5
               ---------------------------------------------------------------

Dear Sirs:

          Pursuant to Section 3.04(i) of the above referenced Pooling and
Servicing Agreement you are hereby notified of the location and the date of
establishment of the following accounts:

          Collection Account

          The accounts were established on December __, 2002, are held at
Ameriquest Mortgage Company in Orange, California, and are maintained by
Ameriquest Mortgage Company at 1100 Town & Country Road, Suite 1100.

          If you should have any questions, please feel free to contact me at
(714) 564-____.

                                           Very truly yours,

                                           AMERIQUEST MORTGAGE COMPANY

                                           By:_________________________________
                                           Name:
                                           Title:

                                       K-2

<PAGE>

                                   EXHIBIT L-1

        FORM CERTIFICATION TO BE PROVIDED BY THE DEPOSITOR WITH FORM 10-K

          Re:    Ameriquest Mortgage Securities Inc., Series 2002-5
                 Asset-Backed Certificates, Series 2002-5

          I, John Grazer, the senior officer of Ameriquest Mortgage Securities
Inc. (the "Registrant") in charge of securitizations, certify that:

          l. I have reviewed this annual report on Form 10-K, and all reports on
Form 8-K containing distribution and servicing reports filed in respect of
periods included in the year covered by this annual report, of Registrant;

          2. Based on my knowledge, the information in these reports, taken as a
whole, does not contain any untrue statement of a material fact or omit to state
a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading as of the
last day of the period covered by this annual report;

          3. Based on my knowledge, the distribution information and the
servicing information required to be provided to the Trustee by the Master
Servicer under the Pooling and Servicing Agreement is included in these reports;

          4. I am responsible for reviewing the activities performed by the
Master Servicer under the Pooling and Servicing Agreement and based upon the
review required under the Pooling and Servicing Agreement, and except as
disclosed in the report, the Master Servicer has fulfilled its obligations under
the Pooling and Servicing Agreement; and

          5. I have disclosed to the Registrant's certified public accountants
all significant deficiencies relating to the Master Servicer's compliance with
the minimum servicing standards in accordance with a review conducted in
compliance with the Uniform Single Attestation Program for Mortgage Bankers or
similar standard as set forth in the Pooling and Servicing Agreement.

          Capitalized terms used but not defined herein have the meanings
ascribed to them in the Pooling and Servicing Agreement, dated December 1, 2002
(the "Pooling and Servicing Agreement"), among the Registrant as depositor,
Ameriquest Mortgage Company as master servicer and Deutsche Bank National Trust
Company as trustee.

                                           AMERIQUEST MORTGAGE SECURITIES INC.

                                           By:________________________________
                                           Name:
                                           Title:
                                           Date:

                                      L-1-1

<PAGE>

                                   EXHIBIT L-2

                            FORM CERTIFICATION TO BE
                      PROVIDED TO DEPOSITOR BY THE TRUSTEE

          Re:    Ameriquest Mortgage Securities Inc., Series 2002-5
                 Asset-Backed Certificates, Series 2002-5

          I, [identify the certifying individual], a [title] of Deutsche Bank
National Trust Company, as Trustee, hereby certify to Ameriquest Mortgage
Securities Inc. (the "Depositor"), and its officers, directors and affiliates,
and with the knowledge and intent that they will rely upon this certification,
that:

          1. I have reviewed the annual report on Form 10-K for the fiscal year
[___], and all reports on Form 8-K containing distribution reports filed in
respect of periods included in the year covered by that annual report, of the
Depositor relating to the above-referenced trust;

          2. Based on my knowledge, the information in these distribution
reports prepared by the Trustee, taken as a whole, does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading as of the last day of the period covered by that
annual report; and

          3. Based on my knowledge, the distribution information required to be
provided by the Trustee under the Pooling and Servicing Agreement is included in
these distribution reports.

          Capitalized terms used but not defined herein have the meanings
ascribed to them in the Pooling and Servicing Agreement, dated December 1, 2002
(the "Pooling and Servicing Agreement"), among the Registrant as depositor,
Ameriquest Mortgage Company as master servicer and Deutsche Bank National Trust
Company as trustee.

                                           DEUTSCHE BANK NATIONAL TRUST
                                           COMPANY, as Trustee

                                           By:________________________________
                                           Name:
                                           Title:
                                           Date:

                                      L-2-1

<PAGE>

                                   SCHEDULE 1

                             MORTGAGE LOAN SCHEDULE

                                 Filed By Paper

                                  Schedule-1-1

<PAGE>

                                   SCHEDULE 2

                           PREPAYMENT CHARGE SCHEDULE

                             Available Upon Request

                                  Schedule-2-1

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