Document:

AMENDMENT TO DEPOSIT TRUST AGREEMENT

         THIS AMENDMENT,  dated as of March 16, 2001 (this  "Amendment") is made
by Delta  Funding  Corporation,  a Delware  corporation,  as depositor  (in such
capacity,  the  "Depositor"),  and Wilmington Trust Company,  a Delaware banking
corporation, as owner trustee (the "Owner Trustee").

         WHEREAS,  the Depositor and the Owner Trustee have  previously  entered
into a Deposit Trust  Agreement dated as of December 22, 2000 (the "2000-2 Trust
Agreement") relating to the formation of Delta Funding Residual Trust 2000-2;

         WHEREAS,  Section 10.1 of the 2000-2 Trust Agreement provides that upon
the written request of the  Certificateholders  and, prior to the termination of
the  Indenture,  with the prior written  consent of the  Collateral  Agent,  the
Deposit Trust Agreement may be amended or supplemented as provided herein;

         WHEREAS, the Certificateholder has requested,  and the Collateral Agent
has consented to, the amendments to the 2000-2 Trust Agreement set forth herein;

         WHEREAS,  all acts and things  prescribed by law and by the Depositor's
and the Owner Trustee's  Certificates of Incorporation  and By-laws (each as now
in effect)  necessary to make this Amendment a valid instrument  legally binding
on the  Depositor and the Owner Trustee for the purposes  herein  expressed,  in
accordance with its terms, have been duly done and performed.

         NOW THEREFORE, in consideration of the foregoing and for other good and
valuable  consideration,  the  receipt  of which  is  hereby  acknowledged,  the
Depositor and the Owner Trustee hereby agree as follows:

         1.       DEFINED TERMS. Capitalized  terms  used  herein  without
definition  shall  have  the  meanings   assigned  to  them  in the 2000-2 Trust
Agreement.

         2.       AMENDMENTS.

         (a) The definition of  "Collateral  Test" set forth in Article 1 of the
2000-2  Trust  Agreement  is hereby  deleted in its entirety and replaced by the
following:

         "'Collateral  Test'  shall  mean  compliance  by the  Company  with the
         Residual Receivable Maintenance  Requirements set forth in Section 4.17
         of the Indenture."

         (b) The definition of "Release Certification" set forth in Article 1 of
the 2000-2 Trust Agreement is hereby deleted in its entirety and replaced by the
following:

         "'Release  Certification' shall mean the certification by the Depositor
         in  connection  with the  release  of  amounts  in the Cash  Collateral
         Account  pursuant  to  Section  3.3 in the form  attached  as Exhibit E
         hereto."

         (c) The definition of "Released Certificates" set forth in Article 1 of
the 2000-2 Trust Agreement is hereby deleted in its entirety.

         (d) The definition of "Underlying Agreements" set forth in Article 1 of
the 2000-2 Trust Agreement is hereby deleted in its entirety and replaced by the
following:

         "'Underlying Agreements' shall mean as of any date of determination any
         or all of the pooling and servicing  agreements and/or trust agreements
         pursuant to which the Underlying Certificates were issued."

         (e) Paragraph  (b) of Section 3.3  of  the  2000-2  Trust  Agreement is
hereby  deleted in its entirety and replaced by the following:

         "(b) Upon  satisfaction  of the  conditions  to a release from the Cash
         Collateral  Account  as set  forth in the  Release  Certification,  and
         subject to the  provisions  of Section  4.2(d),  the Depositor may from
         time  to  time  deliver  to the  Owner  Trustee,  with  a  copy  to the
         Collateral  Agent, a Release  Certification  and, upon receipt thereof,
         the Owner Trustee shall  authorize the Depositor to withdraw the amount
         specified  therein  from the Cash  Collateral  Account  and to pay such
         amount to or to the order of the  Depositor.  Upon such  payment,  such
         amount shall no longer be part of the Trust Estate. Notwithstanding the
         generality of the  foregoing,  no withdrawals of cash or other property
         from the Cash  Collateral  Account by the Depositor  shall be permitted
         after June 30, 2001."

         (e) Section 4.1 of the 2000-2 Trust  Agreement is hereby deleted in its
entirety and replaced by the following:

         "Section 4.1      DELETED."

         (f) Paragraph  (a) of  Section 4.2  of the 2000-2  Trust  Agreement  is
hereby  deleted in its entirety and replaced by the following:

         "(a)  On  each  Underlying  Distribution  Date  on  which  amounts  are
         distributed to the Trust,  the Owner Trustee shall deposit such amounts
         into the Certificate  Account.  On each Payment Date, the Owner Trustee
         (or its Agent other than the Depositor or any Affiliate) shall withdraw
         from  the  Certificate  Account  all  Certificateholder  Funds  then on
         deposit therein, and the Owner Trustee (or its Agent) shall, subject to
         Section  4.2(d),  either  (i) pay such  Certificateholder  Funds to the
         Certificateholders   if,  as  shown  on  the  most  recent   Compliance
         Certification  or  Release  Certification,   the  Collateral  Test  was
         satisfied or (ii) otherwise  transfer such funds to the Cash Collateral
         Account.  Notwithstanding the generality of the foregoing,  no payments
         of Certificateholder Funds to the Certificateholders shall be permitted
         after June 30, 2001, and thereafter all  Certificateholder  Funds shall
         remain in the Certificate Account."

         (g) Exhibit D of the 2000-2 Trust  Agreement  is hereby  deleted in its
entirety and replaced by Exhibit 1 hereto.

         (h) Exhibit E of the 2000-2 Trust  Agreement  is hereby  deleted in its
entirety and replaced by Exhibit 2 hereto.

         3.  2000-2 TRUST AGREEMENT RATIFIED. Except as expressly amended
hereby, the 2000-2 Trust Agreement is in all respects ratified and confirmed and
all the terms, conditions and  provisions thereof shall remain in full force and
effect.

         4.  SUCCESSORS AND ASSIGNS.  This  Amendment  shall be binding upon and
inure to the benefit of the parties hereto and their  respective  successors and
assigns.

         5.  COUNTERPARTS.  This  Amendment  may be  executed  in any  number of
counterparts,  each of which when so executed shall be deemed to be an original,
and  all of such  counterparts  shall  together  constitute  one  and  the  same
instrument.

         6.  GOVERNING  LAW.  THE  INTERNAL  LAW OF THE STATE OF DELAWARE  SHALL
GOVERN AND BE USED TO CONSTRUE THIS  AMENDMENT  WITHOUT  REGARD TO PRINCIPLES OF
CONFLICTS OF LAW THEREOF.

<PAGE>

         IN WITNESS  WHEREOF,  each of the  signatories  hereto has caused  this
Amendment to be executed and delivered by its officer  thereunto duly authorized
as of the date first above written.

                                DELTA FUNDING CORPORATION,
                                as depositor

                                By: /S/ MARC E. MILLER
                                --------------------------------
                                  Name: Marc E. Miller
                                  Title: Senior Vice President

                                WILMINGTON TRUST COMPANY,
                                in its individual capacity and as Owner Trustee

                                By: /S/ CHARISSE L. RODGERS
                                --------------------------------
                                  Name: Charisse L. Rodgers
                                  Title: Assistant Vice President

ACKNOWLEDGMENT OF CONSENT

U.S. BANK TRUST NATIONAL ASSOCIATION,
as Collateral Agent

By: /S/ PATTY J. KAPSCH
-----------------------------------
Name: Patty J. Kapsch
Title: Trust Officer

<PAGE>

                                                                      EXHIBIT 1

                                                  [EXHIBIT D TO TRUST AGREEMENT]

                             COMPLIANCE CERTIFICATE

         Delta  Funding  Corporation,  as  depositor  under  the  Deposit  Trust
Agreement,  dated as of  __________,  2000 (the "Trust  Agreement")  relating to
Delta Funding  Residual  Holding Trust 2000-2 (the "Trust"),  hereby  certifies,
represents and warrants to [Wilmington Trust Company, as Owner Trustee,] that as
of ________, 200_:

                  1. The Collateral Test is satisfied.

                  2. The requirements of Section 4.2 are satisfied.

                  3. A  true  copy  of  this  Compliance  Certificate  has  been
                     delivered to the Collateral Agent.

         Capitalized  terms used but not defined  herein  shall have the meaning
ascribed to such terms in the Trust Agreement.

                  IN WITNESS  WHEREOF,  the  undersigned  has duly executed this
Certificate on the ____ day of __________, 200_.

                                           DELTA FUNDING CORPORATION

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

<PAGE>

                                                                     EXHIBIT 2

                                                  EXHIBIT E TO TRUST AGREEMENT

                              RELEASE CERTIFICATION

                  Delta  Funding  Corporation,  as  depositor  under the Deposit
Trust Agreement, dated as of ____________, 2000 (the "Trust Agreement") relating
to Delta Funding Residual  Holding Trust 2000-2 (the "Trust") hereby  certifies,
represents and warrants to  [Wilmington  Trust  Company,  as Owner  Trustee,] as
follows:

                  1. The Depositor hereby requests the release of $_______
from the Cash Collateral Account

                  2. Upon and after  giving  effect to the release  specified in
Paragraph 1:

                           (a) The Collateral Test is satisfied.

                           (b) The  requirements of Sections 4.2(d) of the Trust
                               Agreement are satisfied.

                           (c) A true  copy of this  Release  Certification
                               has been delivered to the Collateral Agent.

                  3. The  release  requested  hereby  does not  violate the last
sentence of Section  3.3(b) or the last sentence of Section  4.2(a) of the Trust
Agreement.

         Capitalized  terms used but not defined  herein shall have the meanings
ascribed to such terms in the Trust Agreement.

         IN  WITNESS   WHEREOF,   the   undersigned   has  duly   executed  this
certification as of ____________.

                                                     DELTA FUNDING CORPORATION

                                                     By:
                                                     --------------------------
                                                       Name: Marc E. Miller
                                                       Title: Vice PresidentAMENDMENT TO ESCROW AGREEMENT

         THIS AMENDMENT,  dated as of March 16, 2001 (this  "Amendment") is made
by Delta Financial  Corporation,  a Delaware  corporation (the "Company"),  U.S.
Bank Trust National  Association,  a national banking association under the laws
of the United  States,  as trustee under the  Indenture (as defined  below) (the
"Trustee"),  and U.S.  Bank  Trust  National  Association,  a  national  banking
association  incorporated  under the laws of the United States,  as escrow agent
(the "Escrow Agent").

         WHEREAS,  the Company, the Trustee and the Escrow Agent have previously
entered  into an Escrow  Agreement  dated as of December  21, 2000 (the  "Escrow
Agreement")  relating  to the  Indenture  dated as of  December  21,  2000  (the
"Indenture") among the Company, as issuer, each of Delta Funding Corporation,  a
New York corporation,  DF Special Holdings Corporation,  a Delaware corporation,
Fidelity  Mortgage,  Inc.,  a  Delaware  corporation,  DFC  Financial  of Canada
Limited,  an Ontario,  Canada  corporation,  DFC Funding of Canada  Limited,  an
Ontario,  Canada corporation,  Continental Property Management Corp., a New York
corporation,  DFC Financial Corporation,  a Delaware corporation,  Delta Funding
Residual  Holding Trust 2000-1,  Delta Funding Residual Holding Trust 2000-2 and
the  Trustee,  relating  to the  9 1/2%  Senior  Notes Due 2004  (the  "Senior
Notes");

         WHEREAS,  Section 3 of the Escrow  Agreement  provides that the Company
must  deposit  funds into the  Escrow  Account  in an amount  sufficient  to pay
interest on the Senior Notes due to be paid on the immediately upcoming Interest
Payment Date;

         WHEREAS, the Company has requested, and the Noteholders have  consented
to, the amendment to the Escrow Agreement set forth herein;

         WHEREAS,  all acts and things  prescribed by law and by the  Company's,
the Trustee's and the Escrow Agent's  Certificates of Incorporation or Trust, as
applicable, and By-laws (each as now in effect) necessary to make this Amendment
a valid  instrument  legally binding on the Company,  the Trustee and the Escrow
Agent for the purposes herein expressed, in accordance with its terms, have been
duly done and performed.

         NOW THEREFORE, in consideration of the foregoing and for other good and
valuable  consideration,  the  receipt  of which  is  hereby  acknowledged,  the
Company, the Trustee and the Escrow Agent hereby agree as follows:

         1. DEFINED TERMS.  Capitalized   terms used  herein  without definition
shall have the meanings assigned to them the Escrow Agreement.

         2. AMENDMENT.

         (a)  The second sentence of Section 3 of the Escrow Agreement is hereby
         deleted in its entirety.

         3. ESCROW AGREEMENT  RATIFIED.  Except as expressly amended hereby, the
Escrow  Agreement is in all respects  ratified and  confirmed and all the terms,
conditions and provisions thereof shall remain in full force and effect.

         4.  SUCCESSORS AND ASSIGNS.  This  Amendment  shall be binding upon and
inure to the benefit of the parties hereto and their  respective  successors and
assigns.

         5.  COUNTERPARTS.  This  Amendment  may be  executed  in any  number of
counterparts,  each of which when so executed shall be deemed to be an original,
and  all of such  counterparts  shall  together  constitute  one  and  the  same
instrument.

         6.  GOVERNING  LAW.  THE  INTERNAL  LAW OF THE STATE OF NEW YORK  SHALL
GOVERN AND BE USED TO CONSTRUE THIS  AMENDMENT  WITHOUT  REGARD TO PRINCIPLES OF
CONFLICTS OF LAW THEREOF.

<PAGE>

         IN WITNESS  WHEREOF,  each of the  signatories  hereto has caused  this
Amendment to be executed and delivered by its officer  thereunto duly authorized
as of the date first above written.

                                       DELTA FINANCIAL CORPORATION

                                       By: /S/ MARC E. MILLER
                                       ------------------------------
                                         Name: Marc E. Miller
                                         Title: Senior Vice President

                                       U.S. BANK TRUST NATIONAL ASSOCIATION,
                                       as Trustee

                                       By: /S/ PATTY J. KAPSCH
                                       ------------------------------
                                         Name: Patty J. Kapsch
                                         Title: Trust Officer

                                       U.S. BANK TRUST NATIONAL ASSOCIATION,
                                       as Escrow Agent

                                       By: /S/ PATTY J. KAPSCH
                                       ------------------------------
                                         Name: Patty J. Kapsch
                                         Title: Trust Officer

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