Document:

EXECUTION COPY

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.,

                                    Depositor

                           DLJ MORTGAGE CAPITAL, INC.,

                                     Seller

                          WILSHIRE CREDIT CORPORATION,

                                    Servicer

                                       and

                              JPMORGAN CHASE BANK,

                                     Trustee

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                         POOLING AND SERVICING AGREEMENT
                            Dated as of April 1, 2004

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                    HOME EQUITY MORTGAGE TRUST SERIES 2004-2
          HOME EQUITY MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2004-2

<PAGE>

                                Table of Contents

<TABLE>
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                                                                                                           Page
                                                                                                           ----
<S>                                                                                                         <C>
ARTICLE I

         DEFINITIONS
                   SECTION 1.01     Definitions .....................................................        7
                   SECTION 1.02     Interest Calculations ...........................................       47
                   SECTION 1.03     Allocation of Certain Interest Shortfalls .......................       47

ARTICLE II

         CONVEYANCE OF MORTGAGE LOANS;
         REPRESENTATIONS AND WARRANTIES
                   SECTION 2.01     Conveyance of Mortgage Loans ....................................       49
                   SECTION 2.02     Acceptance by the Trustee .......................................       55
                   SECTION 2.03     Representations and Warranties of the Seller and
                                    Servicer ........................................................       58
                   SECTION 2.04     Representations and Warranties of the Depositor as to
                                    the Mortgage Loans ..............................................       60
                   SECTION 2.05     Delivery of Opinion of Counsel in Connection with
                                    Substitutions ...................................................       60
                   SECTION 2.06     Execution and Delivery of Certificates ..........................       61
                   SECTION 2.07     REMIC Matters ...................................................       61
                   SECTION 2.08     Covenants of the Servicer .......................................       62
                   SECTION 2.09     Conveyance of REMIC Regular Interests and Acceptance of REMIC 1,
                                    REMIC 2, REMIC 3 and REMIC 4 by the Trustee; Issuance of
                                    Certificates ....................................................       62

ARTICLE III

         ADMINISTRATION AND SERVICING
         OF MORTGAGE LOANS
                   SECTION 3.01     Servicer to Service Mortgage Loans ..............................       64
                   SECTION 3.02     Subservicing; Enforcement of the Obligations of
                                    Subservicers ....................................................       66
                   SECTION 3.03     [Reserved] ......................................................       67
                   SECTION 3.04     Trustee to Act as Servicer ......................................       67
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                                       i
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<TABLE>
<S>                                                                                                         <C>
                   SECTION 3.05     Collection of Mortgage Loans; Collection Accounts;
                                    Certificate Account; Pre-Funding Account; Capitalized
                                    Interest Account ................................................       68
                   SECTION 3.06     Establishment of and Deposits to Escrow Accounts;
                                    Permitted Withdrawals from Escrow Accounts; Payments
                                    of Taxes, Insurance and Other Charges ...........................       72
                   SECTION 3.07     Access to Certain Documentation and Information
                                    Regarding the Mortgage Loans; Inspections .......................       74
                   SECTION 3.08     Permitted Withdrawals from the Collection Accounts and
                                    Certificate Account .............................................       74
                   SECTION 3.09     Maintenance of Hazard Insurance and Mortgage
                                    Impairment Insurance; Claims; Restoration of Mortgaged
                                    Property ........................................................       76
                   SECTION 3.10     Enforcement of Due-on-Sale Clauses; Assumption
                                    Agreements ......................................................       77
                   SECTION 3.11     Realization Upon Defaulted Mortgage Loans;
                                    Repurchase of Certain Mortgage Loans ............................       78
                   SECTION 3.12     Trustee to Cooperate; Release of Mortgage Files .................       84
                   SECTION 3.13     Documents, Records and Funds in Possession of the
                                    Servicer to be Held for the Trustee .............................       85
                   SECTION 3.14     Servicing Fee ...................................................       86
                   SECTION 3.15     Access to Certain Documentation .................................       86
                   SECTION 3.16     Annual Statement as to Compliance ...............................       86
                   SECTION 3.17     Annual Independent Public Accountants' Servicing
                                    Statement; Financial Statements .................................       87
                   SECTION 3.18     Maintenance of Fidelity Bond and Errors and Omissions
                                    Insurance .......................................................       87
                   SECTION 3.19     Duties of the Credit Risk Manager ...............................       88
                   SECTION 3.20     Limitation Upon Liability of the Credit Risk Manager ............       88
                   SECTION 3.21     Advance Facility ................................................       88

ARTICLE IV

         DISTRIBUTIONS AND
         ADVANCES BY THE Servicer
                   SECTION 4.01     Advances by the Servicer ........................................       91
                   SECTION 4.02     Priorities of Distribution ......................................       92
                   SECTION 4.03     [Reserved] ......................................................       96
                   SECTION 4.04     [Reserved] ......................................................       96
                   SECTION 4.05     Allocation of Realized Losses ...................................       96
</TABLE>

                                       ii
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<TABLE>
<S>                                                                                                         <C>
                   SECTION 4.06     Monthly Statements to Certificateholders ........................       97
                   SECTION 4.07     Distributions on the REMIC 1 Regular Interests, REMIC
                                    2 Regular Interests and REMIC 3 Regular Interests ...............       97
                   SECTION 4.08     [Reserved] ......................................................      100
                   SECTION 4.09     Prepayment Charges ..............................................      100
                   SECTION 4.10     Servicer to Cooperate ...........................................      101
                   SECTION 4.11     [Reserved] ......................................................      101

ARTICLE V

         THE CERTIFICATES
                   SECTION 5.01     The Certificates ................................................      102
                   SECTION 5.02     Certificate Register; Registration of Transfer and
                                    Exchange of Certificates ........................................      103
                   SECTION 5.03     Mutilated, Destroyed, Lost or Stolen Certificates ...............      108
                   SECTION 5.04     Persons Deemed Owners ...........................................      108
                   SECTION 5.05     Access to List of Certificateholders' Names and
                                    Addresses .......................................................      108
                   SECTION 5.06     Maintenance of Office or Agency .................................      108

ARTICLE VI

         THE DEPOSITOR, THE SELLER AND THE SERVICER
                   SECTION 6.01     Respective Liabilities of the Depositor, the Sellers and the
                                    Servicer ........................................................      109
                   SECTION 6.02     Merger or Consolidation of the Depositor, the Seller or
                                    the Servicer ....................................................      109
                   SECTION 6.03     Limitation on Liability of the Depositor, the Seller, the
                                    Servicer and Others .............................................      109
                   SECTION 6.04     Limitation on Resignation of the Servicer .......................      110

ARTICLE VII

         DEFAULT
                   SECTION 7.01     Events of Default ...............................................      111
                   SECTION 7.02     Trustee to Act; Appointment of Successor ........................      113
                   SECTION 7.03     Notification to Certificateholders ..............................      114

ARTICLE VIII

         CONCERNING THE TRUSTEE
                   SECTION 8.01     Duties of the Trustee ...........................................      116
</TABLE>

                                      iii
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<TABLE>
<S>                                                                                                         <C>
                   SECTION 8.02     Certain Matters Affecting the Trustee ...........................      117
                   SECTION 8.03     Trustee Not Liable for Certificates or Mortgage Loans ...........      118
                   SECTION 8.04     Trustee May Own Certificates ....................................      118
                   SECTION 8.05     Trustee's Fees and Expenses .....................................      118
                   SECTION 8.06     Eligibility Requirements for the Trustee and Custodian ..........      119
                   SECTION 8.07     Resignation and Removal of the Trustee ..........................      119
                   SECTION 8.08     Successor Trustee ...............................................      120
                   SECTION 8.09     Merger or Consolidation of the Trustee ..........................      120
                   SECTION 8.10     Appointment of Co-Trustee or Separate Trustee ...................      121
                   SECTION 8.11     Tax Matters .....................................................      122
                   SECTION 8.12     Commission Reporting ............................................      124

ARTICLE IX

         TERMINATION
                   SECTION 9.01     Termination upon Liquidation, Purchase or Auction of the
                                    Mortgage Loans ..................................................      127
                   SECTION 9.02     Final Distribution on the Certificates ..........................      128
                   SECTION 9.03     Additional Termination Requirements .............................      129

ARTICLE X

         MISCELLANEOUS PROVISIONS
                   SECTION 10.01    Amendment .......................................................      131
                   SECTION 10.02    Recordation of Agreement; Counterparts ..........................      132
                   SECTION 10.03    Governing Law ...................................................      132
                   SECTION 10.04    [Reserved] ......................................................      133
                   SECTION 10.05    Notices .........................................................      133
                   SECTION 10.06    Severability of Provisions ......................................      134
                   SECTION 10.07    Assignment ......................................................      134
                   SECTION 10.08    Limitation on Rights of Certificateholders ......................      134
                   SECTION 10.09    Certificates Nonassessable and Fully Paid .......................      135

<CAPTION>
<S>                                                                                                        <C>
EXHIBITS
EXHIBIT A.      Form of Class A Certificates ........................................................      A-1
EXHIBIT B.      Form of Subordinate Certificate .....................................................      B-1
EXHIBIT C.      Form of Residual Certificate ........................................................      C-1
EXHIBIT D.      Form of Notional Amount Certificate .................................................      D-1
EXHIBIT E.      Form of Class P Certificate .........................................................      E-1
</TABLE>

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<TABLE>
<S>                                                                                                    <C>
EXHIBIT F.      Form of Reverse Certificates ........................................................      F-1
EXHIBIT G.      Form of Initial Certification of Custodian ..........................................      G-1
EXHIBIT H.      Form of Final Certification of Custodian ............................................      H-1
EXHIBIT I.      Transfer Affidavit ..................................................................      I-1
EXHIBIT J.      Form of Transferor Certificate ......................................................      J-1
EXHIBIT K.      Form of Investment Letter (Non-Rule 144A) ...........................................      K-1
EXHIBIT L.      Form of Rule 144A Letter ............................................................      L-1
EXHIBIT M.      Request for Release .................................................................      M-1
EXHIBIT N.      Form of Subsequent Transfer Agreement ...............................................      N-1
EXHIBIT O-1.    Form of Collection Account Certification ............................................    O-1-1
EXHIBIT O-2.    Form of Collection Account Letter Agreement .........................................    O-2-1
EXHIBIT P-1.    Form of Escrow Account Certification ................................................    P-1-1
EXHIBIT P-2.    Form of Escrow Account Letter Agreement .............................................    P-2-1
EXHIBIT Q.      Form of Monthly Remittance Advice ...................................................      Q-1
EXHIBIT R.      Form of Custodial Agreement .........................................................      R-1
EXHIBIT S.      [Reserved] ..........................................................................      S-1
EXHIBIT T.      [Reserved] ..........................................................................      T-1
EXHIBIT U.      Charged Off Loan Data Report ........................................................      U-1
EXHIBIT V.      Form of Monthly Statement to Certificateholders .....................................      V-1
EXHIBIT W.      Form of Depositor Certification .....................................................      W-1
EXHIBIT X.      Form of Trustee Certification .......................................................      X-1
EXHIBIT Y.      Form of Servicer Certification ......................................................      Y-1
EXHIBIT Z.      Information to be Provided by Servicer to Trustee ...................................      Z-1
EXHIBIT AA      Form of Limited Power of Attorney ...................................................     AA-1
SCHEDULE I      Mortgage Loan Schedule ..............................................................      I-1
SCHEDULE II     Seller's Representations and Warranties .............................................     II-1
SCHEDULE IIIA   Wilshire Representations and Warranties .............................................  III-A-1
SCHEDULE IIIB   [Reserved] ..........................................................................  III-B-1
SCHEDULE IV     Representations and Warranties for the Mortgage Loans ...............................     IV-1
</TABLE>

                                       v
<PAGE>

            THIS POOLING AND SERVICING AGREEMENT, dated as of April 1, 2004,
among CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP., a Delaware
corporation, as depositor (the "Depositor"), DLJ MORTGAGE CAPITAL, INC., a
Delaware corporation, as Seller (the "Seller"), WILSHIRE CREDIT CORPORATION, a
Nevada corporation, as Servicer (the "Servicer") and JPMORGAN CHASE BANK, a New
York banking corporation, as trustee (the "Trustee").

                                 WITNESSETH THAT

            In consideration of the mutual agreements herein contained, the
parties hereto agree as follows:

                              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 eleven
classes of certificates, designated as (i) the Class A-1 Certificates, (ii) the
Class A-IO Certificates, (iii) the Class M-1 Certificates, (iv) the Class M-2
Certificates, (v) the Class B-1 Certificates, (vi) the Class B-2 Certificates,
(vii) the Class B-3A Certificates, (viii) the Class B-3F Certificates, (ix) the
Class P Certificates, (x) the Class X-1 Certificates, (xi) the Class X-2
Certificates, (xii) the Class A-RL Certificates and (xiii) the Class A-R
Certificates.

                                     REMIC 1

            As provided herein, the Trustee will make an election to treat the
segregated pool of assets consisting of the Mortgage Loans and certain other
related assets subject to this Agreement (exclusive of the Pre-Funding Account,
the Capitalized Interest Account and the Subsequent Mortgage Loan Interest) as a
real estate mortgage investment conduit (a "REMIC") for federal income tax
purposes, and such segregated pool of assets will be designated as "REMIC 1."
The Class A-RL Certificates will represent the sole class of "residual
interests" in REMIC 1 for purposes of the REMIC Provisions (as defined herein)
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. The latest possible maturity date (determined solely for
purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii)) of each
of the REMIC 1 Regular Interests will be the Latest Possible Maturity Date as
defined herein.

                                       1
<PAGE>

                           Uncertificated REMIC 1  Initial Uncertificated
              Designation     Pass-Through Rate           Balance
              -----------  ----------------------  ----------------------

                 LTI-1           Variable(1)          $313,530,784.93

                LTI-1PF          Variable(1)          $ 16,469,215.07

                 LTI-P           Variable(1)          $        100.00

                 LTI-R           Variable(1)          $        100.00

----------
(1)   Calculated as provided in the definition of Uncertificated REMIC 1
      Pass-Through Rate.

                                     REMIC 2

            As provided herein, an election will be made 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 will represent the sole class of
"residual interests" in REMIC 2 for purposes of the REMIC Provisions under
federal income tax law (the "Class R-2 Interest"). The following table
irrevocably sets forth the designation, Uncertificated REMIC 2 Pass-Through Rate
and initial Principal Balance for each of the "regular interests" in REMIC 2
(the "REMIC 2 Regular Interests"). None of the REMIC 2 Regular Interests will be
certificated. The latest possible maturity date (determined solely for purposes
of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii)) of each of the
REMIC 2 Regular Interests will be the Latest Possible Maturity Date as defined
herein.

                                 Uncertificated REMIC     Initial Uncertificated
               Designation        2 Pass-Through Rate        Principal Balance
               -----------       --------------------     ----------------------

                 MTI-AA               Variable(1)             $323,400,000.00

                 MTI-A-1              Variable(1)             $  1,270,500.00

                MTI-A-I-1             Variable(1)             $  1,270,500.00

                 MTI-M-1              Variable(1)             $    288,750.00

                 MTI-M-2              Variable(1)             $    231,000.00

                 MTI-B-1              Variable(1)             $    132,000.00

                 MTI-B-2              Variable(1)             $     57,500.00

                MTI-B-3A              Variable(1)             $     24,750.00

                MTI-B-3F              Variable(1)             $     25,000.00

                 MTI-ZZ               Variable(1)             $  3,300,000.00

                  MTI-P               Variable(1)             $        100.00

                  MTI-R               Variable(1)             $        100.00

----------
(1)   Calculated as provided in the definition of Uncertificated REMIC 2
      Pass-Through Rate.

                                       2
<PAGE>

                                     REMIC 3

      As provided herein, an election will be made 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 will represent the sole class of "residual
interests" in REMIC 3 for purposes of the REMIC Provisions under federal income
tax law (the "Class R-3 Interest"). The following table irrevocably sets forth
the designation, Uncertificated REMIC 3 Pass-Through Rate, aggregate Initial
Principal Balance, certain features, Maturity Date and initial ratings for each
of the "regular interests" in REMIC 3 (the "REMIC 3 Regular Interests"). None of
the REMIC 3 Regular Interests will be certificated. The latest possible maturity
date (determined solely for purposes of satisfying Treasury regulation Section
1.860G-1(a)(4)(iii)) of each of the Regular Certificates will be the Latest
Possible Maturity Date as defined herein.

                                  Uncertificated REMIC    Initial Uncertificated
               Designation        3 Pass-Through Rate       Principal Balance
               -----------        --------------------    ----------------------

                 MTII-A-1             Variable(1)            $127,050,000.00

                MTII-A-I-1            Variable(1)            $127,050,000.00

                 MTII-M-1             Variable(1)            $ 28,875,000.00

                 MTII-M-2             Variable(1)            $ 23,100,000.00

                 MTII-B-1             Variable(1)            $ 13,200,000.00

                 MTII-B-2             Variable(1)            $  5,750,000.00

                 MTII-B-3A            Variable(1)            $  2,475,000.00

                 MTII-B-3F             7.325%(2)             $  2,500,000.00

                 MTII-X-1             Variable(1)            $          0.00

                  MTII-P              Variable(1)            $        100.00

                  MTII-R              Variable(1)            $        100.00

----------
(1)   Calculated as provided in the definition of Uncertificated REMIC 3
      Pass-Through Rate.

                                       3
<PAGE>

(2)   The REMIC 3 Regular Interest MTII-B-3F will have a fixed rate subject to
      the Net Funds Cap. The fixed rate will increase by 0.50% per annum after
      the Optional Termination Date.

                                     REMIC 4

      As provided herein, an election will be made to treat the segregated pool
of assets consisting of the 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 under federal income
tax law (the "Class R-4 Interest"). The following table irrevocably sets forth
the designation, Pass-Through Rate, aggregate Initial Certificate Principal
Balance, certain features, Maturity Date and initial ratings for each Class of
Certificates comprising the interests representing "regular interests" in REMIC
4, and the Class A-R Certificates, Class A-RL Certificates and Class X-2
Certificates which are not "regular interests" in REMIC 4. The latest possible
maturity date (determined solely for purposes of satisfying Treasury regulation
Section 1.860G-1(a)(4)(iii)) of each of the Regular Certificates will be the
Latest Possible Maturity Date as defined herein.

<TABLE>
<CAPTION>
==============================================================================================
                                                                            Integral Multiples
                 Class Certificate                              Minimum        in Excess of
                      Balance           Pass-Through Rate     Denomination        Minimum
----------------------------------------------------------------------------------------------
<S>              <C>                      <C>                   <C>                 <C>
Class A-1        $254,100,000.00          Adjustable(1)         $ 25,000            $1
----------------------------------------------------------------------------------------------
Class A-IO       $127,050,000.00(2)       Adjustable(1)         $100,000            $1
----------------------------------------------------------------------------------------------
Class P          $        100.00           Variable(3)          $    100            N/A
----------------------------------------------------------------------------------------------
Class A-R        $        100.00           Variable(3)          $    100            N/A
----------------------------------------------------------------------------------------------
Class A-RL       $        100.00           Variable(3)          $    100            N/A
----------------------------------------------------------------------------------------------
Class M-1        $ 28,875,000.00          Adjustable(1)         $ 25,000            $1
----------------------------------------------------------------------------------------------
Class M-2        $ 23,100,000.00          Adjustable(1)         $ 25,000            $1
----------------------------------------------------------------------------------------------
Class B-1        $ 13,200,000.00          Adjustable(1)         $ 25,000            $1
----------------------------------------------------------------------------------------------
Class B-2        $  5,750,000.00          Adjustable(1)         $ 25,000            $1
----------------------------------------------------------------------------------------------
Class B-3A       $  2,475,000.00          Adjustable(1)         $ 25,000            $1
----------------------------------------------------------------------------------------------
Class B-3F       $  2,500,000.00            7.325%(6)           $ 25,000            $1
----------------------------------------------------------------------------------------------
Class X-1        $          0.00          Variable(4)(5)        $ 25,000            $1
----------------------------------------------------------------------------------------------
Class X-2        $          0.00              0.00%                  N/A            N/A
==============================================================================================
</TABLE>

----------
(1)   The Class A-1, Class M-1, Class M-2, Class B-1, Class B-2 and Class B-3A
      Certificates are adjustable rate and will receive interest pursuant to
      formulas based on LIBOR, subject to the Net Funds Cap. The Class A-IO
      Certificates are adjustable rate and will receive interest pursuant to a
      formula based on LIBOR.

(2)   These Certificates are interest only certificates, will have no principal
      balance and will accrue interest on their related notional amount. For any
      Distribution Date, the notional amount of the

                                       4
<PAGE>

      Class A-IO Certificates will be equal to the product of (i) 50.00% and
      (ii) the Aggregate Class Principal Balance of the Class A-1 Certificates
      immediately prior to such Distribution Date. The initial notional amount
      of the Class A-IO Certificates is $127,050,000.

(3)   The initial pass-through rates on the Class P, Class A-RL and Class A-R
      Certificates will be approximately 8.71% per annum and will vary after the
      first Distribution Date.

(4)   The Class X-1 Certificates will have an initial principal balance of $0.00
      and will accrue interest on its notional amount. For any Distribution
      Date, the notional amount of the Class X-1 Certificates will be equal to
      the Aggregate Collateral Balance minus the aggregate Class Certificate
      Balance of the Class A-R Certificates and Class P Certificates immediately
      prior to such Distribution Date. The initial notional amount of the Class
      X-1 Certificates is $330,000,000.

(5)   The Class X-1 Certificates are variable rate and will accrue interest on a
      notional amount.

(6)   The Class B-3F Certificates have a fixed rate subject to the Net Funds
      Cap. The fixed rate will increase by 0.50% per annum after the Optional
      Termination Date.

            Set forth below are designations of Classes of Certificates to the
categories used herein:

<TABLE>
<S>                                        <C>
Book-Entry Certificates.................   All Classes of Certificates other than the Physical
                                           Certificates.

ERISA-Restricted Certificates...........   Class A-R, Class A-RL, Class P and Class X Certificates.

LIBOR Certificates......................   Class A-1, Class A-IO, Class M-1, Class M-2, Class B-1,
                                           Class B-2 and Class B-3A Certificates.

Notional Amount Certificates............   Class A-IO Certificates and Class X-1 Certificates.

Class A Certificates....................   Class A-1, Class A-IO, Class A-RL and Class A-R
                                           Certificates.

Class B Certificates....................   Class B-1, Class B-2, Class B-3A and Class B-3F
                                           Certificates.

Class M Certificates....................   Class M-1 Certificates and Class M-2 Certificates.

Offered Certificates....................   All Classes of Certificates (other than the Class P
                                           Certificates and Class X Certificates).

Physical Certificates...................   Class A-R, Class A-RL, Class P and Class X Certificates.
</TABLE>

                                       5
<PAGE>

<TABLE>
<S>                                        <C>
Private Certificates....................   Class P Certificates and Class X Certificates.

Rating Agencies.........................   S&P and Moody's.

Regular Certificates....................   All Classes of Certificates other than the Class A-R, Class
                                           A-RL and Class X-2 Certificates.

Residual Certificates...................   Class A-R Certificates and Class A-RL Certificates.

Senior Certificates.....................   Class A-1, Class A-IO, Class P, Class A-RL and Class A-
                                           R Certificates.

Subordinate Certificates................   Class M-1, Class M-2, Class B-1, Class B-2, Class B-3A,
                                           Class B-3F and Class X-1 Certificates.

Minimum Denominations...................   Class A-1, Class M-1, Class M-2, Class B-1, Class B-2,
                                           Class B-3A and Class B-3F Certificates: $25,000 and
                                           multiples of $1 in excess thereof.  Class A-IO Certificates:
                                           $100,000 and multiples of $1 in excess thereof.

                                           Class A-R, Class A-RL and Class P Certificates: $100. The
                                           Class X-1 Certificates will be issued as a single Certificate
                                           with a Certificate Principal Balance of $0.00. The Class X-2
                                           Certificates will be issued as a single Certificate and will
                                           not have a principal balance.
</TABLE>

                                       6
<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

            SECTION 1.01 Definitions.

      Whenever used in this Agreement, the following words and phrases, unless
the context otherwise requires, shall have the following meanings:

            Accepted Servicing Practices: With respect to any Mortgage Loan,
those mortgage servicing practices of prudent mortgage lending institutions
which service mortgage loans of the same type as such Mortgage Loan in the
jurisdiction where the related Mortgaged Property is located.

            Advance: The payment required to be made by the Servicer with
respect to any Distribution Date pursuant to Section 4.01.

            Aggregate Collateral Balance: As of any date of determination will
be equal to the Aggregate Loan Balance plus the amount, if any, then on deposit
in the Pre-Funding Account.

            Aggregate Loan Balance: As of any Distribution Date will be equal to
the aggregate of the Stated Principal Balances of the Mortgage Loans determined
as of the last day of the related Collection Period.

            Aggregate Subsequent Transfer Amount: With respect to any Subsequent
Transfer Date, the aggregate Stated Principal Balance as of the applicable
Cut-off Date of the Subsequent Mortgage Loans conveyed on such Subsequent
Transfer Date, as listed on the revised Mortgage Loan Schedule delivered
pursuant to Section 2.01(b); provided, however, that such amount shall not
exceed the amount on deposit in the Pre-Funding Account.

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

            Ancillary Income: All income derived from the Mortgage Loans, other
than Servicing Fees and Prepayment Charges, including but not limited to, late
charges, fees received with respect to checks or bank drafts returned by the
related bank for non-sufficient funds, assumption fees, optional insurance
administrative fees and all other incidental fees and charges.

            Applied Loss Amount: As to any Distribution Date, an amount equal to
the excess, if any of (i) the aggregate Class Principal Balance of the
Certificates, other than the Class A-IO Certificates, after giving effect to all
Realized Losses incurred with respect to the Mortgage Loans during the Due
Period for such Distribution Date and payments of principal on such Distribution
Date over (ii) the Aggregate Collateral Balance for such Distribution Date.

                                       7
<PAGE>

            Appraised Value: The amount set forth in an appraisal made in
connection with the origination of the related Mortgage Loan as the value of the
Mortgaged Property.

            Assignment Agreement: An assignment agreement between DLJ Mortgage
Capital, Inc. as Seller and the Depositor, whereby the Mortgage Loans are
transferred and limited representations and warranties relating to the Mortgage
Loans are made.

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

            Auction Purchaser: As defined in Section 9.01.

            Auction Date: As defined in Section 9.01.

            Available Funds: With respect to any Distribution Date the sum of
(i) all Scheduled Payments (net of the related Expense Fees) due on the Due Date
in the month in which such Distribution Date occurs and received prior to the
related Determination Date, together with any Advances in respect thereof; (ii)
all Insurance Proceeds, Liquidation Proceeds and Net Recoveries received during
the month preceding the month of such Distribution Date; (iii) all Curtailments
and Payoffs received during the Prepayment Period applicable to such
Distribution Date (excluding Prepayment Charges); (iv) amounts received with
respect to such Distribution Date as the Substitution Adjustment Amount or
Repurchase Price; (v) Compensating Interest Payments for such Distribution Date;
and (vi) with respect to the Distribution Date in July 2004, the amount
remaining in the Pre-Funding Account at the end of the Pre-Funding Period; as
to clauses (i) through (iv) above, reduced by amounts in reimbursement for
Advances previously made and other amounts as to which the Servicer are entitled
to be reimbursed pursuant to Section 3.08.

            Bankruptcy Code: The United States Bankruptcy Reform Act of 1978, as
amended.

            Book-Entry Certificates: As specified in the Preliminary Statement.

            Business Day: Any day other than (i) a Saturday or a Sunday, or (ii)
a day on which banking institutions in the City of New York, New York, or the
city in which the Corporate Trust Office of the Trustee, or savings and loan
institutions in the States of Illinois, California, Texas, New Jersey or Florida
is located are authorized or obligated by law or executive order to be closed.

            Capitalized Interest Account: The separate Eligible Account
designated as such and created and maintained by the Trustee pursuant to Section
3.05(g) hereof. The Capitalized Interest Account shall be treated as an "outside
reserve fund" under applicable Treasury regulations and shall not be part of any
REMIC. Except as provided in Section 3.05(g) hereof, any investment earnings on
the Capitalized Interest Account shall be treated as owned by the Depositor and
will be taxable to the Depositor.

                                       8
<PAGE>

            Capitalized Interest Deposit: $104,120.64.

            Capitalized Interest Requirement: With respect to the May 2004
Distribution Date, an amount equal to interest accruing during the related
Interest Accrual Period for the LIBOR Certificates at a per annum rate equal to
(x) the weighted average Pass-Through Rate of the Offered Certificates
multiplied by (y) the Pre-Funded Amount outstanding at the end of the related
Due Period. With respect to the June 2004 Distribution Date, an amount equal to
interest accruing during the related Interest Accrual Period for the LIBOR
Certificates at a per annum rate equal to (x) the weighted average Pass-Through
Rate of the Offered Certificates for such Distribution Date multiplied by (y)
the sum of (c) the Pre-Funded Amount at the end of the related Due Period and
(d) the aggregate Stated Principal Balance of the Subsequent Mortgage Loans that
do not have a first Due Date prior to June 1, 2004, transferred to the Trust
during the related Due Period. With respect to the July 2004 Distribution Date,
an amount equal to interest accruing during the related Interest Accrual Period
for the LIBOR Certificates at a per annum rate equal to (x) the weighted average
Pass-Through Rate of the Offered Certificates for such Distribution Date
multiplied by (y) the sum of (c) the Pre-Funded Amount at the end of the related
Due Period and (d) the aggregate Stated Principal Balance of the related
Subsequent Mortgage Loans that do not have a first Due Date prior to July 1,
2004, transferred to the Trust during the related Due Period.

            Carryforward Interest: For any Class of Certificates and any
Distribution Date, the sum of (1) the amount, if any, by which (x) the sum of
(A) Current Interest for such Class for the immediately preceding Distribution
Date and (B) any unpaid Carryforward Interest from previous Distribution Dates
exceeds (y) the amount paid in respect of interest on such Class on such
immediately preceding Distribution Date, and (2) interest on such amount for the
related Interest Accrual Period at the applicable Pass-Through Rate.

            Certificate: Any one of the Certificates executed by the Trustee in
substantially the forms attached hereto as exhibits.

            Certificates: As specified in the Preliminary Statement.

            Certificate Account: The separate Eligible Account created and
maintained with the Trustee, or any other bank or trust company acceptable to
the Rating Agencies which is incorporated under the laws of the United States or
any state thereof pursuant to Section 3.05, which account shall bear a
designation clearly indicating that the funds deposited therein are held in
trust for the benefit of the Trustee on behalf of the Certificateholders or any
other account serving a similar function acceptable to the Rating Agencies.
Funds in the Certificate Account may (i) be held uninvested without liability
for interest or compensation thereon or (ii) be invested at the direction of the
Trustee in Eligible Investments and reinvestment earnings thereon (net of
investment losses) shall be paid to the Trustee. Funds deposited in the
Certificate Account (exclusive of the Trustee Fee and other amounts permitted to
be withdrawn pursuant to Section 3.08) shall be held in trust for the
Certificateholders.

            Certificate Balance: With respect to any Certificate at any date,
the maximum dollar amount of principal to which the Holder thereof is then
entitled hereunder, such amount being equal to the

                                       9
<PAGE>

Denomination thereof minus the sum of (i) all distributions of principal
previously made with respect thereto and (ii) all Realized Losses allocated
thereto and, in the case of any Subordinate Certificates, all other reductions
in Certificate Balance previously allocated thereto pursuant to Section 4.05.

            Certificate Margin: As to each Class of LIBOR Certificates (other
than the A-IO Certificates), the applicable amount set forth below:

                    Class                       Certificate Margin
                    -----                  ----------------------------
                                            (1)                    (2)
                     A-1                   0.230%                0.460%
                     M-1                   0.550%                0.825%
                     M-2                   1.150%                1.650%
                     B-1                   1.900%                2.400%
                     B-2                   2.150%                2.650%
                     B-3A                  3.750%                4.250%

----------
(1)   On or prior to the Optional Termination Date.

(2)   After the Optional Termination Date.

            Certificate Owner: With respect to a Book-Entry Certificate, the
Person who is the beneficial owner of such Book-Entry Certificate.

            Certificate Register: The register maintained pursuant to Section
5.02.

            Certificateholder or Holder: The person in whose name a Certificate
is registered in the Certificate Register, except that, solely for the purpose
of giving any consent pursuant to this Agreement, any Certificate registered in
the name of the Depositor or any affiliate of the Depositor shall be deemed not
to be Outstanding and the Percentage Interest evidenced thereby shall not be
taken into account in determining whether the requisite amount of Percentage
Interests necessary to effect such consent has been obtained; provided, however,
that if any such Person (including the Depositor) owns 100% of the Percentage
Interests evidenced by a Class of Certificates, such Certificates shall be
deemed to be Outstanding for purposes of any provision hereof that requires the
consent of the Holders of Certificates of a particular Class as a condition to
the taking of any action hereunder. The Trustee is entitled to rely conclusively
on a certification of the Depositor or any affiliate of the Depositor in
determining which Certificates are registered in the name of an affiliate of the
Depositor.

            Charged Off Loan: With respect to any Distribution Date, a defaulted
Mortgage Loan that has not yet been liquidated, giving rise to a Realized Loss,
on the date on which such Mortgage Loan becomes 180 days delinquent, due to a
determination by the Servicer, pursuant to the procedures set forth in Section
3.11, that there will be (i) no Significant Net Recoveries with respect to such
Mortgage Loan or (ii) the potential Net Recoveries are anticipated to be an
amount, determined by the Servicer in its good

                                       10
<PAGE>

faith judgment and in light of other mitigating circumstances, that is
insufficient to warrant proceeding through foreclosure or other liquidation of
the related Mortgaged Property.

            Class: All Certificates bearing the same class designation as set
forth in the Preliminary Statement.

            Class A-1 Pass-Through Rate: With respect to the initial Interest
Accrual Period, based on a LIBOR determination date of April 27, 2004, 1.3300%
per annum. With respect to any Interest Accrual Period thereafter, will be a per
annum rate equal to the lesser of (i) the sum of LIBOR plus the related
Certificate Margin and (ii) the Net Funds Cap.

            Class A-IO Notional Amount: With respect to any Distribution Date
will be equal to the product of (i) 50.00% and (ii) the Class Principal Balance
of the Class A-1 immediately prior to such Distribution Date. For federal income
tax purposes, however, the Class A-IO Certificate will have a notional amount
equal to the aggregate principal balance of the REMIC 3 Regular Interests
MTII-A-I-1.

            Class A-IO Pass-Through Rate: With respect to the initial Interest
Accrual Period, based on a LIBOR determination date of April 27, 2004, 1.9000%
per annum. With respect to any Interest Accrual Period thereafter, will be a per
annum rate equal to the excess, if any, of 3.00% over LIBOR.

            Class A-R Pass-Through Rate: With respect to the Distribution Date
in May 2004, June 2004 or July 2004, a per annum rate equal to the Initial
Mortgage Loan Net WAC Rate, initially equal to approximately 8.71% per annum,
and with respect to any Distribution Date thereafter, a per annum rate equal to
the Net Funds Cap.

            Class A-RL Pass-Through Rate: With respect to the Distribution Date
in May 2004, June 2004 or July 2004, a per annum rate equal to the Initial
Mortgage Loan Net WAC Rate, initially equal to approximately 8.71% per annum,
and with respect to any Distribution Date thereafter, a per annum rate equal to
the Net Funds Cap.

            Class B-1 Principal Payment Amount: For any Distribution Date on or
after the Stepdown Date and as long as a Trigger Event is not in effect with
respect to such Distribution Date, will be the amount, if any, by which (x) the
sum of (i) the aggregate Class Principal Balance of the Class A-1, Class P,
Class A-R, Class A-RL, Class M-1 and Class M-2 Certificates, in each case, after
giving effect to payments on such Distribution Date and (ii) the Class Principal
Balance of the Class B-1 Certificates immediately prior to such Distribution
Date exceeds (y) the lesser of (A) the product of (i) 85.80% and (ii) the
Aggregate Collateral Balance for such Distribution Date and (B) the amount, if
any, by which (i) the Aggregate Collateral Balance for such Distribution Date
exceeds (ii) 0.50% of the Aggregate Collateral Balance as of the Cut-off Date.

            Class B-1 Pass-Through Rate: With respect to the initial Interest
Accrual Period, based on a LIBOR determination date of April 27, 2004, 3.0000%
per annum. With respect to any Interest

                                       11
<PAGE>

Accrual Period thereafter, will be a per annum rate equal to the lesser of (i)
the sum of LIBOR plus the related Certificate Margin and (ii) the Net Funds Cap.

            Class B-2 Principal Payment Amount: For any Distribution Date on or
after the Stepdown Date and as long as a Trigger Event is not in effect with
respect to such Distribution Date, will be the amount, if any, by which (x) the
sum of (i) the aggregate Class Principal Balance of the Class A-1, Class P,
Class A-R, Class A-RL, Class M-1, Class M-2 and Class B-1 Certificates, in each
case, after giving effect to payments on such Distribution Date and (ii) the
Class Principal Balance of the Class B-2 Certificates immediately prior to such
Distribution Date exceeds (y) the lesser of (A) the product of (i) 89.28% and
(ii) the Aggregate Collateral Balance for such Distribution Date and (B) the
amount, if any, by which (i) the Aggregate Collateral Balance for such
Distribution Date exceeds (ii) 0.50% of the Aggregate Collateral Balance as of
the Cut-off Date.

            Class B-2 Pass-Through Rate: With respect to the initial Interest
Accrual Period, based on a LIBOR determination date of April 27, 2004, 3.2500%
per annum. With respect to any Interest Accrual Period thereafter, will be a per
annum rate equal to the lesser of (i) the sum of LIBOR plus the related
Certificate Margin and (ii) the Net Funds Cap.

            Class B-3 Principal Payment Amount: With respect to the Class B-3F
Certificates and Class B-3A Certificates and for any Distribution Date on or
after the Stepdown Date and as long as a Trigger Event is not in effect with
respect to such Distribution Date, will be the amount, if any, by which (x) the
sum of (i) the aggregate Class Principal Balance of the Class A-1, Class P,
Class A-R, Class A-RL, Class M-1, Class M-2, Class B-1 and Class B-2
Certificates, in each case, after giving effect to payments on such Distribution
Date and (ii) the aggregate Class Principal Balance of the Class B-3A
Certificates and Class B-3F Certificates immediately prior to such Distribution
Date exceeds (y) the lesser of (A) the product of (i) 92.30% and (ii) the
Aggregate Collateral Balance for such Distribution Date and (B) the amount, if
any, by which (i) the Aggregate Collateral Balance for such Distribution Date
exceeds (ii) 0.50% of the Aggregate Collateral Balance as of the Cut-off Date.

            Class B-3A Pass-Through Rate: With respect to the initial Interest
Accrual Period, based on a LIBOR determination date of April 27, 2004, 4.8500%
per annum. With respect to any Interest Accrual Period, will be a per annum rate
equal to the lesser of (i) the sum of LIBOR plus the related Certificate Margin
and (ii) the Net Funds Cap.

            Class B-3F Pass-Through Rate: With respect to the initial Interest
Accrual Period (a) on or prior to the Optional Termination Date, the lesser of
(i) 7.325% per annum and (ii) the Net Funds Cap, and (b) after the Optional
Termination Date, the lesser of (i) 7.825% per annum and (ii) the Net Funds Cap.

            Class M-1 Pass-Through Rate: With respect to the initial Interest
Accrual Period, based on a LIBOR determination date of April 27, 2004, 1.6500%
per annum. With respect to any Interest Accrual Period thereafter, will be a per
annum rate equal to the lesser of (i) the sum of LIBOR plus the related
Certificate Margin and (ii) the Net Funds Cap.

                                       12
<PAGE>

            Class M-1 Principal Payment Amount: For any Distribution Date on or
after the Stepdown Date and as long as a Trigger Event is not in effect with
respect to such Distribution Date, will be the amount, if any, by which (x) the
sum of (i) the aggregate Class Principal Balance of the Class A-1, Class P,
Class A-R and Class A-RL Certificates after giving effect to payments on such
Distribution Date and (ii) the Class Principal Balance of the Class M-1
Certificates immediately prior to such Distribution Date exceeds (y) the lesser
of (A) the product of (i) 63.80% and (ii) the Aggregate Collateral Balance for
such Distribution Date and (B) the amount, if any, by which (i) the Aggregate
Collateral Balance for such Distribution Date exceeds (ii) 0.50% of the
Aggregate Collateral Balance as of the Cut-off Date.

            Class M-2 Pass-Through Rate: With respect to the initial Interest
Accrual Period, based on a LIBOR determination date of April 27, 2004, 2.2500%
per annum. With respect to any Interest Accrual Period thereafter, will be a per
annum rate equal to the lesser of (i) the sum of LIBOR plus the related
Certificate Margin and (ii) the Net Funds Cap.

            Class M-2 Principal Payment Amount: For any Distribution Date on or
after the Stepdown Date and as long as a Trigger Event has not occurred with
respect to such Distribution Date, will be the amount, if any, by which (x) the
sum of (i) the aggregate Class Principal Balance of the Class A-1, Class P,
Class A-R and Class M-1 Certificates, in each case, after giving effect to
payments on such Distribution Date and (ii) the Class Principal Balance of the
Class M-2 Certificates immediately prior to such Distribution Date exceeds (y)
the lesser of (A) the product of (i) 77.80% and (ii) the Aggregate Collateral
Balance for such Distribution Date and (B) the amount, if any, by which (i) the
Aggregate Collateral Balance for such Distribution Date exceeds (ii) 0.50% of
the Aggregate Collateral Balance as of the Cut-off Date.

            Class X-1 Distributable Amount: With respect to any Distribution
Date, the amount of interest accrued during the related Interest Accrual Period
at the related Pass-Through Rate on the Class X-1 Notional Amount for such
Distribution Date.

            Class X-1 Notional Amount: Immediately prior to any Distribution
Date, with respect to the Class X-1 Certificates, an amount equal to the
aggregate of the Uncertificated Principal Balances of the REMIC 2 Regular
Interests (other than REMIC 2 Regular Interests MTI-P and MTI-R).

            Class P Pass-Through Rate: With respect to the Class P Certificates
and the Distribution Dates, for May 2004, June 2004 and July 2004 a per annum
rate equal to the Initial Mortgage Loan Net WAC Rate, initially equal to
approximately 8.71% per annum, and with respect to any Distribution Date
thereafter, a per annum rate equal to the Net Funds Cap. For federal income tax
purposes, however, with respect to any Distribution Date, the Class P
Certificates will be entitled to 100% of the interest accrued on REMIC 3 Regular
Interest MTII-P.

            Class Principal Balance: With respect to any Class and as to any
date of determination, the aggregate of the Certificate Balances of all
Certificates of such Class as of such date plus, in the case of any Subordinate
Certificates, any increase in the Class Principal Balance of such Class pursuant
to Section 4.02(vii) due to the receipt of Net Recoveries.

                                       13
<PAGE>

            Class R-2 Interest: The sole class of residual interests in REMIC 2.

            Class R-3 Interest: The sole class of residual interests in REMIC 3.

            Class R-4 Interest: The sole class of residual interests in REMIC 4.

            Closing Date: April 29, 2004.

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

            Collection Accounts: The accounts established and maintained by the
Servicer in accordance with Section 3.05.

            Collection Period: With respect to any Distribution Date, the period
from the second day of the month immediately preceding such Distribution Date to
and including the first day of the month of such Distribution Date.

            Combined Loan-to-Value Ratio: With respect to any Mortgage Loan and
as of any date of determination, the fraction (expressed as a percentage) the
numerator of which is the sum of (i) original principal balance of the related
Mortgage Loan at such date of determination and (ii) the unpaid principal
balance of the related First Mortgage Loan as of the date of origination of that
Mortgage Loan and the denominator of which is (a) with respect to a refinanced
Mortgage Loan, the Appraised Value of the related Mortgaged Property at
origination and (b) with respect to all other Mortgage Loans, the lesser of (i)
the Appraised Value of the related Mortgage Property at origination and (ii) the
purchase price of the related Mortgaged Property.

            Compensating Interest Payment: For any Distribution Date, an amount
to be paid by the Servicer for such Distribution Date, equal to the lesser of
(i) an amount equal to one half of the monthly Servicing Fee Rate on the
Mortgage Loans otherwise payable to the Servicer on such Distribution Date
(prior to giving effect to any Scheduled Payments due on the Mortgage Loans on
such Due Date) and (ii) the aggregate Prepayment Interest Shortfall for the
Mortgage Loans relating to Principal Prepayments received during the related
Prepayment Period.

            Corporate Trust Office: The designated office of the Trustee in the
State of New York at which at any particular time its corporate trust business
with respect to this Agreement shall be administered, which office at the date
of the execution of this Agreement is located at 4 New York Plaza, 6th Floor,
New York, New York 10004-2477, Attention: Institutional Trust Services/Global
Debt: Home Equity Mortgage Trust-2004-2.

            Corresponding Certificate: With respect to (i) REMIC 3 Regular
Interest MTII-P, (ii) REMIC 3 Regular Interest MTII-R, (iii) REMIC 3 Regular
Interest MTII-A-1 and REMIC 3 Regular Interest MTII-A-I-1, (iv) REMIC 3 Regular
Interest MTII-M-1, (v) REMIC 3 Regular Interest MTII-M-

                                       14
<PAGE>

2, (vi) REMIC 3 Regular Interest MTII-B-1, (vii) REMIC 3 Regular Interest
MTII-B-2, (viii) REMIC 3 Regular Interest MTII-B-3A and (ix) REMIC 3 Regular
Interest MTII-B-3F and the (i) Class P Certificates, (ii) Class A-R
Certificates, (iii) Class A-1 Certificates, (iv) Class M-1 Certificates, (v)
Class M-2 Certificates (vi) Class B-1 Certificates, (vii) Class B-2
Certificates, (viii) Class B-3A Certificates and (ix) Class B-3F Certificates,
respectively.

            Corresponding Uncertificated Interest: With respect to (i) REMIC 1
Regular Interest LTI-P and (ii) REMIC 1 Regular Interest LTI-R(i) REMIC 2
Regular Interest MTI-P and (ii) REMIC 2 Regular Interest MTI-R, respectively.
With respect to (i) REMIC 2 Regular Interest MTI-P, (ii) REMIC 2 Regular
Interest MTI-R, (iii) REMIC 2 Regular Interest MTI-A-1, (iv) REMIC 2 Regular
Interest MTI-A-I-1, (v) REMIC 2 Regular Interest MTI-M-1, (vi) REMIC 2 Regular
Interest MTI-M-2, (vii) REMIC 2 Regular Interest MTI-B-1, (viii) REMIC 2 Regular
Interest MTI-B-2, (ix) REMIC 2 Regular Interest MTI-B-3A and (x) REMIC 2 Regular
Interest MTI-B-3F; the (i) REMIC 3 Regular Interest MTII-P; (ii) REMIC 3 Regular
Interest MTII-R and (iii) REMIC 3 Regular Interest MTII-A-1, (iv) REMIC 3
Regular Interest MTII-A-I-1, (v) REMIC 3 Regular Interest MTII-M-1; (vi) REMIC 3
Regular Interest MTII-M-2 (vii) REMIC 3 Regular Interest MTII-B-1, (viii) REMIC
3 Regular Interest MTII-B-2, (ix) REMIC 3 Regular Interest MTII-B-3A and (x)
REMIC 3 Regular Interest MTII-B-3F, respectively.

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

            Credit Risk Management Agreement: The agreement between Wilshire and
the Credit Risk Manager dated as of April 29, 2004.

            Credit Risk Manager Fee: As to each Mortgage Loan and any
Distribution Date, an amount equal to one month's interest at the Credit Risk
Manager Fee Rate on the Stated Principal Balance of such Mortgage Loan as of the
Due Date in the month of such Distribution Date (prior to giving effect to any
Scheduled Payments due on such Mortgage Loan on such Due Date).

            Credit Risk Manager Fee Rate: 0.0175% per annum.

            CSFB: Credit Suisse First Boston LLC, a Delaware limited liability
company, and its successors and assigns.

            Cumulative Loss Event: For any Distribution Date, a Cumulative Loss
Event is occurring if Cumulative Net Realized Losses on the Mortgage Loans equal
or exceed the percentage of the Aggregate Collateral Balance as of the Cut-off
Date for that Distribution Date as specified below:

                                             Percentage of Aggregate
                   Distribution Date           Collateral Balance
            -----------------------------    -----------------------
            May 2004 - April 2007 .......             N.A.
            May 2007 - April 2008 .......             8.00%
            May 2008 - April 2009 .......             8.75%
            May 2009 - April 2010 .......             9.50%
            May 2010 - April 2011 .......            10.00%
            May 2011 and thereafter .....            10.50%

                                       15
<PAGE>

            Cumulative Net Realized Losses: As to any date of determination the
aggregate amount of Realized Losses as reduced by any Net Recoveries received on
Charged Off Loans.

            Current Interest: For any Class of Certificates and Distribution
Date, the amount of interest accruing at the applicable Pass-Through Rate on the
related Class Principal Balance, or Notional Amount, as applicable, of such
Class during the related Interest Accrual Period; provided, that if and to the
extent that on any Distribution Date the Interest Remittance Amount is less than
the aggregate distributions required pursuant to Section 4.02(b)(i)A-F without
regard to this proviso, then the Current Interest on each such Class will be
reduced, on a pro rata basis in proportion to the amount of Current Interest for
each Class without regard to this proviso, by the lesser of (i) the amount of
the deficiency described above in this proviso and (ii) the related Interest
Shortfall for such Distribution Date.

            Curtailment: Any payment of principal on a Mortgage Loan, made by or
on behalf of the related Mortgagor, other than a Scheduled Payment, a prepaid
Scheduled Payment or a Payoff, which is applied to reduce the outstanding Stated
Principal Balance of the Mortgage Loan.

            Custodial Agreement: The agreement, among the Trustee, the Custodian
and the Depositor providing for the safekeeping of any documents or instruments
referred to in Section 2.01 on behalf of the Certificateholders, attached hereto
as Exhibit R.

            Custodian: LaSalle Bank National Association, a national banking
association, or any successor custodian appointed pursuant to the terms of the
Custodial Agreement. Each Custodian so appointed shall act as agent on behalf of
the Trustee, and shall be compensated by the Depositor. The Trustee shall remain
at all times responsible under the terms of this Agreement, notwithstanding the
fact that certain duties have been assigned to a Custodian.

            Cut-off Date: For any Mortgage Loan, other than a Subsequent
Mortgage Loan, April 1, 2004. For any Subsequent Mortgage Loan, the applicable
Subsequent Transfer Date.

            Cut-off Date Principal Balance: As to any Mortgage Loan, the Stated
Principal Balance thereof as of the close of business on the Cut-off Date.

            Defective Mortgage Loan: Any Mortgage Loan which is required to be
repurchased pursuant to Section 2.02 or 2.03.

            Deferred Amount: For any Class of Class M or Class B Certificates
and any Distribution Date, will equal the amount by which (x) the aggregate of
the Applied Loss Amounts previously applied in reduction of the Class Principal
Balance thereof exceeds (y) the sum of (i) the aggregate of amounts

                                       16
<PAGE>

previously paid in reimbursement thereof and (ii) the amount of the increase in
the related Class Principal Balance due to the receipt of Net Recoveries as
provided in Section 4.02(vii).

            Definitive Certificates: Any Certificate issued in lieu of a
Book-Entry Certificate pursuant to Section 5.02(e).

            Deleted Mortgage Loan: As defined in Section 2.03.

            Delinquency Rate: For any month, a fraction, expressed as a
percentage, the numerator of which is the aggregate outstanding principal
balance of all Mortgage Loans 60 or more days delinquent (including all
foreclosures and REO Properties) as of the close of business on the last day of
such month, and the denominator of which is the Aggregate Collateral Balance as
of the close of business on the last day of such month.

            Denomination: With respect to each Certificate, the amount set forth
on the face thereof as the "Initial Certificate Balance of this Certificate" or
the "Initial Notional Amount of this Certificate" or, if neither of the
foregoing, the Percentage Interest appearing on the face thereof.

            Depositor: Credit Suisse First Boston Mortgage Securities Corp., a
Delaware corporation, or its successor in interest.

            Depository: The initial Depository shall be The Depository Trust
Company, the nominee of which is CEDE & Co., as the registered Holder of the
Book-Entry Certificates. The Depository shall at all times be a "clearing
corporation" as defined in Section 8-102(3) of the Uniform Commercial Code of
the State of New York.

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

            Determination Date: As to any Distribution Date and any Mortgage
Loan, the second Business Day immediately following the 15th day of the month of
such Distribution Date.

            Distribution Date: The 25th day of each month or if such day is not
a Business Day, the first Business Day thereafter, commencing in May 2004.

            DLJMC: DLJ Mortgage Capital, Inc., a Delaware corporation, and its
successors and assigns.

            Due Date: With respect to any Distribution Date and any Mortgage
Loan, the day during the related Due Period on which the Scheduled Payment is
due.

                                       17
<PAGE>

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

            Eligible Account: Either (i) an account or accounts maintained with
a federal or state chartered depository institution or trust company acceptable
to the Rating Agencies or (ii) an account or accounts the deposits in which are
insured by the FDIC to the limits established by such corporation, provided that
any such deposits not so insured shall be maintained in an account at a
depository institution or trust company whose commercial paper or other short
term debt obligations (or, in the case of a depository institution or trust
company which is the principal subsidiary of a holding company, the commercial
paper or other short term debt obligations of such holding company) have been
rated by Moody's and Fitch in its highest short-term rating category and by S&P
at least "A-1+", or (iii) a segregated trust account or accounts (which shall be
a "special deposit account") maintained with the Trustee or any other federal or
state chartered depository institution or trust company, acting in its fiduciary
capacity, in a manner acceptable to the Trustee and the Rating Agencies.
Eligible Accounts may bear interest.

            Eligible Investments: Any one or more of the obligations and
securities listed below which investment provides for a date of maturity not
later than the Determination Date in each month:

            (i) direct obligations of, and obligations fully guaranteed by, the
      United States of America, or any agency or instrumentality of the United
      States of America the obligations of which are backed by the full faith
      and credit of the United States of America; or obligations fully
      guaranteed by, the United States of America; Freddie Mac, Fannie Mae, the
      Federal Home Loan Banks or any agency or instrumentality of the United
      States of America rated AA or higher by the Rating Agencies;

            (ii) federal funds, demand and time deposits in, certificates of
      deposits of, or bankers' acceptances issued by, any depository institution
      or trust company incorporated or organized under the laws of the United
      States of America or any state thereof and subject to supervision and
      examination by federal and/or state banking authorities, so long as at the
      time of such investment or contractual commitment providing for such
      investment the commercial paper or other short-term debt obligations of
      such depository institution or trust company (or, in the case of a
      depository institution or trust company which is the principal subsidiary
      of a holding company, the commercial paper or other short-term debt
      obligations of such holding company) are rated in one of two of the
      highest ratings by each of the Rating Agencies, and the long-term debt
      obligations of such depository institution or trust company (or, in the
      case of a depository institution or trust company which is the principal
      subsidiary of a holding company, the long-term debt obligations of such
      holding company) are rated in one of two of the highest ratings, by each
      of the Rating Agencies;

            (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 a principal)
      rated "A" or higher by Moody's, "A-1" or higher by S&P and "F-

                                       18
<PAGE>

      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 price plus
      accrued interest, (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 issued by any
      corporation incorporated under the laws of the United States of America or
      any state thereof which has a long-term unsecured debt rating in the
      highest available rating category of each of the Rating Agencies at the
      time of such investment;

            (v) commercial paper having an original maturity of less than 365
      days and issued by an institution having a short-term unsecured debt
      rating in the highest available rating category of Moody's and Fitch and
      rated "A-1+" by S&P at the time of such investment;

            (vi) a guaranteed investment contract approved by each of the Rating
      Agencies and issued by an insurance company or other corporation having a
      long-term unsecured debt rating in the highest available rating category
      of each of the Rating Agencies at the time of such investment;

            (vii) which may be 12b-1 funds as contemplated under the rules
      promulgated by the Securities and Exchange Commission under the Investment
      Company Act of 1940) having ratings in the highest available rating
      category of Moody's and Fitch and or "AAAm" or "AAAm-G" by S&P at the time
      of such investment (any such money market funds which provide for demand
      withdrawals being conclusively deemed to satisfy any maturity requirements
      for Eligible Investments set forth herein) including money market funds of
      the Servicer or the Trustee and any such funds that are managed by the
      Servicer or the Trustee or their respective Affiliates or for the Servicer
      or the Trustee or any Affiliate of either acts as advisor, as long as such
      money market funds satisfy the criteria of this subparagraph (vii); and

            (viii) such other investments the investment in which will not, as
      evidenced by a letter from each of the Rating Agencies, result in the
      downgrading or withdrawal of the Ratings of the Certificates.

provided, however, that no such instrument shall be an Eligible Investment if
such instrument evidences either (i) a right to receive only interest payments
with respect to the obligations underlying such instrument, or (ii) both
principal and interest payments derived from obligations underlying such
instrument and the principal and interest payments with respect to such
instrument provide a yield to maturity of greater than 120% of the yield to
maturity at par of such underlying obligations.

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

                                       19
<PAGE>

            ERISA-Restricted Certificates: As specified in the Preliminary
Statement.

            Escrow Account: The separate account or accounts created and
maintained by the Servicer pursuant to Section 3.06.

            Escrow Payments: With respect to any Mortgage Loan, the amounts
constituting ground rents, taxes, mortgage insurance premiums, fire and hazard
insurance premiums, and any other payments required to be escrowed by the
Mortgagor with the mortgagee pursuant to the Mortgage, applicable law or any
other related document.

            Event of Default: As defined in Section 7.01.

            Expense Fees: As to each Mortgage Loan, the sum of the Servicing
Fee, the Credit Risk Manager Fee and the Trustee Fee.

            Expense Fee Rate: As to each Mortgage Loan, the sum of the related
Servicing Fee Rate, the Credit Risk Manager Fee Rate and the Trustee Fee Rate.

            Fair Market Value: The fair market value of all of the property of
the Trust, as agreed upon between the Optional Termination Holder and a majority
of the Holders of the Class A-RL Certificates; provided, however, that if the
Optional Termination Holder and a majority of the Holders of the Class A-RL
Certificates do not agree upon the fair market value of all the property of the
Trust, the Trustee shall solicit, or cause the solicitation of, good faith bids
for all of the property of the Trust until it has received three bids from
institutions that are regular purchasers and/or sellers in the secondary market
of residential whole mortgage loans similar to the Mortgage Loans, and the Fair
Market Value shall be equal to the highest of such three bids.

            Fannie Mae: Fannie Mae, a federally chartered and privately owned
corporation organized and existing under the Federal National Mortgage
Association Charter Act, or any successor thereto.

            Fannie Mae Guides: The Fannie Mae Sellers' Guide and the Fannie Mae
Servicers' Guide and all amendments or additions thereto.

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

            FIRREA: The Financial Institutions Reform, Recovery and Enforcement
Act of 1989.

            First Mortgage Loan: A Mortgage Loan that is secured by a first lien
on the Mortgaged Property securing the related Mortgage Note.

            Fitch: Fitch, Inc., or any successor thereto.

                                       20
<PAGE>

            Foreclosure Restricted Loan: Any Mortgage Loan that is 60 or more
days delinquent as of the Closing Date, unless such Mortgage Loan has become
current for three consecutive Scheduled Payments after the Closing Date.

            Freddie Mac: Freddie Mac, 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.

            Highest Priority: As of any date of determination, the Class of
Subordinate Certificates then outstanding with a Class Principal Balance greater
than zero, with the highest priority for payments pursuant to Section 4.02, in
the following order of decreasing priority: Class M-1, Class M-2, Class B-1,
Class B-2, and then the Class B-3A Certificates and Class B-3F Certificates, on
a pro rata basis.

            Initial Mortgage Loan: A Mortgage Loan conveyed to the Trust on the
Closing Date pursuant to this Agreement as identified on the Mortgage Loan
Schedule delivered to the Trustee on the Closing Date.

            Initial Mortgage Loan Net WAC Rate: A per annum rate equal to the
weighted average of the Net Mortgage Rates of the Initial Mortgage Loans.

            Indirect Participant: A broker, dealer, bank or other financial
institution or other Person that clears through or maintains a custodial
relationship with a Depository Participant.

            Insurance Proceeds: Proceeds paid under any Insurance Policy
covering a Mortgage Loan to the extent the proceeds are not (i) applied to the
restoration of the related Mortgaged Property, (ii) applied to the satisfaction
of any related First Mortgage Loan or (iii) released to the Mortgagor in
accordance with the procedures that the Servicer would follow in servicing
mortgage loans held for its own account.

            Interest Accrual Period: With respect to each Distribution Date, (i)
with respect to the Class A-R, Class A-RL, Class P, Class X-1 and Class B-3F
Certificates, the calendar month prior to the month of such Distribution Date,
(ii) with respect to the Class A-1, Class M-1, Class M-2, Class B-1, Class B-2
and Class B-3A Certificates, the one-month period commencing on the immediately
preceding Distribution Date (or the Closing Date, in the case of the first
Distribution Date) and ending on the day immediately preceding the related
Distribution Date and (iii) with respect to the Class A-IO Certificates, the
one-month period commencing on the 25th day of the month preceding the related
Distribution Date and ending on the 24th day of the month of such Distribution
Date.

            Interest Remittance Amount: For any Distribution Date, an amount
equal to the sum of (1) all interest collected (other than Payaheads and Simple
Interest Excess, if applicable) or advanced in respect of Scheduled Payments on
the Mortgage Loans during the related Due Period, the interest portion of
Payaheads previously received and intended for application in the related Due
Period and the interest portion of all Payoffs and Curtailments received on the
Mortgage Loans during the related Prepayment

                                       21
<PAGE>

Period, less (x) the Expense Fee with respect to such Mortgage Loans and (y)
unreimbursed Advances and other amounts due to the Servicer or the Trustee with
respect to such Mortgage Loans, to the extent allocable to interest, (2) all
Compensating Interest Payments paid by the Servicer with respect to the Mortgage
Loans it is servicing and such Distribution Date, (3) the portion of any
Substitution Adjustment Amount or Repurchase Price paid with respect to such
Mortgage Loans during the calendar month immediately preceding the Distribution
Date allocable to interest, (4) all Liquidation Proceeds, Net Recoveries and any
Insurance Proceeds and other recoveries (net of unreimbursed Advances, Servicing
Advances and expenses, to the extent allocable to interest, and unpaid Servicing
Fees) collected with respect to the Mortgage Loans during the prior calendar
month, to the extent allocable to interest and (5) any amounts withdrawn from
the Simple Interest Excess Sub-Account and the Capitalized Interest Account to
pay interest on the Certificates with respect to such Distribution Date. If on
any Determination Date the amount deposited into the Collection Account with
respect to Compensating Interest is the amount calculated in clause (ii) of the
definition of Compensating Interest Payment for such Distribution Date, any
remaining Servicing Fee shall be available to cover any Net Simple Interest
Shortfalls on the Mortgage Loans remaining on such Distribution Date, after
giving effect to the withdrawal from the Simple Interest Excess Sub-Account
pursuant to Section 3.06(f) on such Distribution Date.

            Interest Shortfall: For any Distribution Date, the aggregate
shortfall, if any, in collections of interest for the previous month (adjusted
to the related Net Mortgage Rate) on Mortgage Loans resulting from (a) Principal
Prepayments received during the related Prepayment Period to the extent not
covered by Compensating Interest and (b) Relief Act Reductions.

            Last Scheduled Distribution Date: With respect to each Class of
Certificates, the Distribution Date in August 2034.

            Latest Possible Maturity Date: Solely for purposes of satisfying
Treasury regulation Section 1.860G-1(a)(4)(iii), the "latest possible maturity
date" of all interests created in REMIC 1, REMIC 2, REMIC 3 and REMIC 4 shall be
August 25, 2034.

            LIBOR: For any Interest Accrual Period other than the first Interest
Accrual Period, the rate for United States dollar deposits for one month which
appears on the Dow Jones Telerate Screen Page 3750 as of 11:00 A.M., London,
England time, on the second LIBOR Business Day prior to the first day of such
Interest Accrual Period. With respect to the first Interest Accrual Period, the
rate for United States dollar deposits for one month which appears on the Dow
Jones Telerate Screen Page 3750 as of 11:00 A.M., London, England time, two
LIBOR Business Days prior to the Closing Date. If such rate does not appear on
such page (or such other page as may replace that page on that service, or if
such service is no longer offered, such other service for displaying LIBOR or
comparable rates as may be reasonably selected by the Trustee), the rate will be
the Reference Bank Rate. If no such quotations can be obtained and no Reference
Bank Rate is available, LIBOR will be the LIBOR applicable to the Interest
Accrual Period preceding the next applicable Distribution Date.

                                       22
<PAGE>

            LIBOR Business Day: Any day other than (i) a Saturday or a Sunday or
(ii) a day on which banking institutions in the State of New York or in the city
of London, England are required or authorized by law to be closed.

            Liquidated Mortgage Loan: With respect to any Distribution Date, a
defaulted Mortgage Loan (including any REO Property) which was liquidated or for
which payments under the related private mortgage insurance policy, hazard
insurance policy or any condemnation proceeds were received, in the calendar
month preceding the month of such Distribution Date and as to which the Servicer
has determined (in accordance with this Agreement) that it has received all
amounts it expects to receive in connection with the liquidation of such
Mortgage Loan, including the final disposition of the related REO Property.

            Liquidation Proceeds: Amounts, including Insurance Proceeds,
received in connection with the partial or complete liquidation of defaulted
Mortgage Loans, whether through trustee's sale, foreclosure sale or similar
disposition or amounts received in connection with any condemnation or partial
release of a Mortgaged Property and any other proceeds received in connection
with an REO Property, in each case, which, for the avoidance of doubt, is
remaining after, or not otherwise required to be applied to, the satisfaction of
any related First Mortgage Loan, less the sum of related unreimbursed Expense
Fees, Servicing Advances, Advances and reasonable out-of-pocket expenses.

            Majority in Interest: As to any Class of Regular Certificates or the
Class X-2 Certificates, the Holders of Certificates of such Class evidencing, in
the aggregate, at least 51% of the Percentage Interests evidenced by all
Certificates of such Class.

            Marker Rate: With respect to the REMIC 3 Regular Interest MTII-X-1
and any Distribution Date, a per annum rate equal to two (2) times the weighted
average of the Uncertificated REMIC 2 Pass-Through Rates for REMIC 2 Regular
Interests MTI-A-1, MTI-A-I-1, MTI-M-1, MTI-M-2, MTI-B-1, MTI-B-2, MTI-B-3A,
MTI-B-3F and MT-ZZ, with the rates on the REMIC 2 Regular Interests MTI-A-1,
MTI-M-1, MTI-M-2, MTI-B-1, MTI-B-2, MTI-B-3A, MTI-B-3F subject to a cap, for the
purpose of this calculation, equal to the lesser of (A) LIBOR plus the
Certificate Margin for the Corresponding Uncertificated Interest and (B) the
REMIC 2 Net WAC Rate, with the rates on the REMIC 2 Regular Interests MTI-A-I-1,
subject to a cap, for the purpose of this calculation, equal to the lesser of
(i) the greater of (A) LIBOR plus the Certificate Margin for the Corresponding
Uncertificated Interest and (B) the related Certificate Margin plus 3.00% and
(ii) the REMIC 2 Net WAC Rate, and with the rate on the REMIC 2 Regular Interest
MT-ZZ subject to a cap, for the purpose of this calculation, equal to zero.

            MERS: Mortgage Electronic Registration Systems, Inc., a corporation
organized and existing under the laws of the State of Delaware, or any successor
thereto.

            MERS(R) System: The system of recording transfers of Mortgages
electronically maintained by MERS.

            MIN: The Mortgage Identification Number for Mortgage Loans
registered with MERS on the MERS(R) System.

                                       23
<PAGE>

            MOM Loan: With respect to any Mortgage Loan, MERS acting as the
mortgagee of such Mortgage Loan, solely as nominee for the originator of such
Mortgage Loan and its successors and assigns, at the origination thereof.

            Monthly Excess Cashflow: For any Distribution Date, an amount equal
to the sum of the Monthly Excess Interest and Overcollateralization Release
Amount, if any, for such date.

            Monthly Excess Interest: As to any Distribution Date, the sum of (A)
the Interest Remittance Amount remaining after the application of payments
pursuant to clauses A. through F. of Section 4.02(b)(i) plus (B) the Principal
Payment Amount remaining after the application of payments pursuant to clauses
A. through E. of Section 4.02(b)(ii) or (iii).

            Monthly Statement: The statement delivered to the Certificateholders
pursuant to Section 4.06.

            Moody's: Moody's Investors Service, Inc., or any successor thereto.
For purposes of Section 10.05(b) the address for notices to Moody's shall be
Moody's Investors Service, Inc., 99 Church Street, New York, New York 10007,
Attention: Residential Pass-Through Monitoring, or such other address as Moody's
may hereafter furnish to the Depositor, the Servicer and the Trustee.

            Mortgage: The mortgage, deed of trust or other instrument creating a
first or second lien on an estate in fee simple or leasehold interest in real
property securing a Mortgage Note.

            Mortgage File: The Mortgage documents listed in Section 2.01(b)
hereof pertaining to a particular Initial Mortgage Loan or Subsequent Mortgage
Loan and any additional documents delivered to the Trustee to be added to the
Mortgage File pursuant to this Agreement.

            Mortgage Loans: Such of the mortgage loans transferred and assigned
to the Trustee pursuant to the provisions hereof as from time to time are held
as a part of the Trust Fund (including any REO Property), the mortgage loans so
held being identified in the Mortgage Loan Schedule, notwithstanding foreclosure
or other acquisition of title of the related Mortgaged Property.

            Mortgage Loan Purchase Price: The price, calculated as set forth in
Section 9.01, to be paid in connection with the purchase of the Trust Collateral
by the Auction Purchaser.

            Mortgage Loan Schedule: The Mortgage Loan Schedule which will list
the Mortgage Loans (as from time to time amended by the Seller to reflect the
addition of Qualified Substitute Mortgage Loans and the purchase of Mortgage
Loans pursuant to Section 2.02 or 2.03) transferred to the Trustee as part of
the Trust Fund and from time to time subject to this Agreement, attached hereto
as Schedule I, setting forth the following information with respect to each
Mortgage Loan:

            (i) the Mortgage Loan identifying number;

                                       24
<PAGE>

            (ii) [reserved];

            (iii) the zip code of the Mortgaged Property;

            (iv) a code indicating the type of Mortgaged Property and the
      occupancy status.

            (v) the original months to maturity or the remaining months to
      maturity from the Cut-off Date, in any case based on the original
      amortization schedule and, if different, the maturity expressed in the
      same manner but based on the actual amortization schedule;

            (vi) the Combined Loan-to-Value Ratio at origination;

            (vii) the Mortgage Rate as of the Cut-off Date;

            (viii) the stated maturity date;

            (ix) the amount of the Scheduled Payment as of the Cut-off Date;

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

            (xi) the principal balance of the Mortgage Loan as of the close of
      business on the Cut-off Date, after deduction of payments of principal
      due on or before the Cut-off Date whether or not collected;

            (xii) a code indicating the purpose of the Mortgage Loan (i.e.,
      purchase, rate and term refinance, equity take-out refinance);

            (xiii) the Net Mortgage Rate as of the Cut-off Date;

            (xiv) the Originator of the related Mortgage Loan;

            (xv) the Servicing Fee Rate;

            (xvi) the related sub-servicer;

            (xvii) a code indicating whether a Mortgage Loan is subject to a
      Prepayment Charge;

            (xviii) the amount of the Prepayment Charge with respect to each
      Mortgage Loan and a code identifying whether such Prepayment Charge is
      related to a Curtailment or Payoff;

            (xix) whether such Mortgage Loan is a Balloon Loan; and

            (xx) whether such Mortgage Loan is a Simple Interest Mortgage Loan.

                                       25
<PAGE>

            With respect to the Mortgage Loans in the aggregate, each, the
Mortgage Loan Schedule shall set forth the following information, as of the
Cut-off Date:

            (i) the number of Mortgage Loans; and

            (ii) the current aggregate principal balance of the Mortgage Loans
      as of the close of business on the Cut-off Date, after deduction of
      payments of principal due on or before the Cut-off Date whether or not
      collected.

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

            Mortgage Rate: The annual fixed rate of interest borne by a Mortgage
Note.

            Mortgaged Property: The underlying real property securing a Mortgage
Loan.

            Mortgagor: The obligor(s) on a Mortgage Note.

            Net Excess Spread: With respect to any Distribution Date and Loan, a
fraction, expressed as a percentage, the numerator of which is equal to the
excess of (x) the aggregate Stated Principal Balance for such Distribution Date
of the Mortgage Loans, multiplied by the weighted average Net Mortgage Rate of
such Mortgage Loans over (y) the Interest Remittance Amount for such
Distribution Date, and the denominator of which is an amount equal to the
aggregate Stated Principal Balance for such Distribution Date of the Mortgage
Loans, multiplied by the actual number of days elapsed in the related Interest
Accrual Period divided by 360.

            Net Funds Cap: As to any Distribution Date, will be a per annum rate
equal to (a) a fraction, expressed as a percentage, (a) the numerator of which
is (1) the amount of interest accrued on the Mortgage Loans for such date, minus
(2) the Expense Fee, and (b) the denominator of which is the product of (i) the
Aggregate Collateral Balance immediately preceding such Distribution Date (or as
of the Cut-off Date in the case of the first Distribution Date), multiplied by
(ii)(x) in the case of the Class A-R, Class A-RL, Class P, and Class B-3F
Certificates, 1/12 and (y) in the case of the Class A-1, Class M-1, Class M-2,
Class B-1, Class B-2 and Class B-3A Certificates, the actual number of days in
the related Interest Accrual Period divided by 360. For federal income tax
purposes, however, as to any Distribution Date will be the equivalent of the
foregoing, expressed as a per annum rate equal to the weighted average of the
Uncertificated Pass-Through Rates on the REMIC 3 Regular Interests (other than
the REMIC 3 Regular Interest MT-P and the REMIC 3 Regular Interest MT-R)
multiplied by (x) in the case of the Class A-R, Class P and Class B-3F
Certificates, 1/12 and (y) in the case of the Class A-1, Class M-1, Class M-2,
Class B-1, Class B-2, Class B-3A Certificates, the actual of days in the related
Interest Accrual Period divided by 360.

                                       26
<PAGE>

            Net Mortgage Rate: As to each Mortgage Loan, and at any time, the
per annum rate equal to the Mortgage Rate less the related Expense Fee Rate.

            Net Prepayment Interest Shortfalls: As to any Distribution Date, the
amount, if any, by which the aggregate of Prepayment Interest Shortfalls during
the Prepayment Period exceeds the Compensating Interest Payment for such
Distribution Date.

            Net Recovery: Any proceeds received by the Servicer on a delinquent
or Charged Off Loan (including any Liquidation Proceeds received on a Charged
Off Loan), net of any Servicing Fee, Ancillary Income and any other related
expenses.

            Net Simple Interest Excess: As of any Distribution Date, an amount
equal to the excess, if any, of the aggregate amount of Simple Interest Excess
with respect to the Mortgage Loans over the amount of Simple Interest Shortfall
with respect to the Mortgage Loans.

            Net Simple Interest Shortfall: As of any Distribution Date, an
amount equal to the excess, if any, of the aggregate amount of Simple Interest
Shortfall with respect to the Mortgage Loans over the amount of Simple Interest
Excess with respect to the Mortgage Loans.

            Nonrecoverable Advance: Any portion of an Advance or Servicing
Advance previously made or proposed to be made by the Servicer that, in the good
faith judgment of the Servicer, will not be ultimately recoverable by the
Servicer from the related Mortgagor, related Liquidation Proceeds or otherwise.

            Notional Amount: The Class A-IO Notional Amount or the Class X-1
Notional Amount, as the context requires.

            Notional Amount Certificates: As specified in the Preliminary
Statement.

            Offered Certificates: As specified in the Preliminary Statement.

            Officer's Certificate: A certificate signed by the Chairman of the
Board or the Vice Chairman of the Board or the President or a Vice President or
an Assistant Vice President or the Treasurer or the Secretary or one of the
Assistant Treasurers or Assistant Secretaries of the Servicer or the Depositor,
and delivered to the Depositor or the Trustee, as the case may be, as required
by this Agreement.

            Opinion of Counsel: A written opinion of counsel, who may be counsel
for the Depositor or the Servicer, including in-house counsel, reasonably
acceptable to the Trustee; provided, however, that with respect to the
interpretation or application of the REMIC Provisions, such counsel must (i) in
fact be independent of the Depositor and the Servicer, (ii) not have any
material direct financial interest in the Depositor or the Servicer or in any
affiliate of either, and (iii) not be connected with the Depositor or the

                                       27
<PAGE>

Servicer as an officer, employee, promoter, underwriter, trustee, partner,
director or person performing similar functions.

            Optional Termination: The termination of the trust created hereunder
in connection with the purchase of the Mortgage Loans pursuant to Section 9.01.

            Optional Termination Date: The first date on which the Optional
Termination may be exercised.

            Optional Termination Holder: Wilshire, as Servicer, or any successor
servicer appointed by the Seller, so long as the Seller is the owner of the
servicing rights.

            OTS: The Office of Thrift Supervision.

            Outsourcer: As defined in Section 3.02.

            Outstanding: With respect to the Certificates as of any date of
determination, all Certificates theretofore executed and authenticated under
this Agreement except: (i) Certificates theretofore canceled by the Trustee or
delivered to the Trustee for cancellation; and (ii) Certificates in exchange for
which or in lieu of which other Certificates have been executed and delivered by
the Trustee pursuant to this Agreement.

            Outstanding Mortgage Loan: As of any Due Date, a Mortgage Loan with
a Stated Principal Balance greater than zero which was not the subject of a
Payoff prior to such Due Date and which did not become a Liquidated Mortgage
Loan or Charged Off Loan prior to such Due Date.

            Overcollateralization Amount: For any Distribution Date, an amount
equal to the amount, if any, by which (x) the Aggregate Collateral Balance for
such Distribution Date exceeds (y) the aggregate Class Principal Balance of the
Certificates after giving effect to payments on such Distribution Date.

            Overcollateralization Release Amount: For any Distribution Date, an
amount equal to the lesser of (x) the Principal Remittance Amount for such
Distribution Date and (y) the amount, if any, by which (1) the
Overcollateralization Amount for such date, calculated for this purpose on the
basis of the assumption that 100% of the aggregate of the Principal Remittance
Amount for such date is applied on such date in reduction of the aggregate of
the Class Principal Balances of the Certificates (to an amount not less than
zero), exceeds (2) the Targeted Overcollateralization Amount for such date.

            Overfunded Interest Amount: With respect to any Subsequent Transfer
Date and the Subsequent Mortgage Loans, the excess of (A) the amount on deposit
in the Capitalized Interest Account on such date over (B) the excess of (i) the
amount of interest accruing at (x) the assumed weighted average Pass-Through
Rates of the Senior Certificates multiplied by (y) the Pre-Funding Amount
outstanding at the end of the related Due Period for the total number of days
remaining through the end of the Interest Accrual Periods ending (a) May 25,
2004, (b) June 25, 2004 and (c) July 26, 2004 over (ii) one month of

                                       28
<PAGE>

investment earnings on the amount on deposit in the Capitalized Interest Account
on such date at an annual rate of 0.65%. The assumed weighted average
Pass-Through Rate of the Senior Certificates will be calculated assuming LIBOR
is 1.10% for any Subsequent Transfer Date for the Subsequent Mortgage Loans
prior to the May 2004 Distribution Date, 1.50% for any Subsequent Transfer Date
for the Subsequent Mortgage Loans prior to the June 2004 Distribution Date and
1.90% for any Subsequent Transfer Date for the Subsequent Mortgage Loans prior
to the July 2004 Distribution Date.

            Ownership Interest: As to any Residual 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.

            Par Value: As defined in Section 9.01 hereof; provided that the "Par
Value" for any Auction Date shall also include the auction expenses of the
Trustee (which auction expenses shall not exceed $25,000).

            Pass-Through Rate: With respect to the Class A-1,Class A-IO, Class
A-R, Class A-RL, Class P, Class M-1, Class M-2, Class B-1, Class B-2, Class B-3A
and Class B-3F Certificates, the Class A-1 Pass-Through Rate, Class A-IO
Pass-Through Rate, Class A-R Pass-Through Rate, Class A-RL Pass-Through Rate,
Class P Pass-Through Rate, Class M-1 Pass-Through Rate, Class M-2 Pass-Through
Rate, Class B-1 Pass-Through Rate, Class B-2 Pass-Through Rate, Class B-3A
Pass-Through Rate and Class B-3F Pass-Through Rate.

            With respect to the Class X-1 Certificates and any Distribution
Date, a per annum rate equal to the REMIC 3 Pass-Through Rate on REMIC III
Regular Interest MTII-X-1, which is equal to the percentage equivalent of a
fraction, the numerator of which is the sum of the amounts calculated pursuant
to clauses (A) through (K) below, and the denominator of which is the aggregate
of the Uncertificated Principal Balances of REMIC 2 Regular Interest MTI-AA,
REMIC 2 Regular Interest MTI-A-1, REMIC 2 Regular Interest MTI-A-I-1, REMIC 2
Regular Interest MTI-M-1, REMIC 2 Regular Interest MTI-M-2, REMIC 2 Regular
Interest MTI-B-1, REMIC 2 Regular Interest MTI-B-2, REMIC 2 Regular Interest
MTI-B-3A, REMIC 2 Regular Interest MTI-B-3F and REMIC 2 Regular Interest MTI-ZZ.
For purposes of calculating the Pass-Through Rate for the REMIC 3 Regular
Interest MTII-X-1, the numerator is equal to the sum of the following
components:

            (A) the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular
Interest MTI-AA minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 2 Regular Interest MTI-AA;

            (B) the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular
Interest MTI-A-1 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 2 Regular Interest MTI-A-1;

                                       29
<PAGE>

            (C) the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular
Interest MTI-A-I-1 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 2 Regular Interest MTI-A-I-1;

            (D) the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular
Interest MTI-M1 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 2 Regular Interest MTI-M-1;

            (E) the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular
Interest MTI-M-2 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 2 Regular Interest MTI-M-2;

            (F) the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular
Interest MTI-B-1 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 2 Regular Interest MTI-B-1;

            (G) the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular
Interest MTI-B-2 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 2 Regular Interest MTI-B-2;

            (H) the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular
Interest MTI-B-3A minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 2 Regular Interest MTI-B-3A;

            (I) the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular
Interest MTI-B-3F minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 2 Regular Interest MTI-B-3F;

            (J) the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular
Interest MT-ZZ minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 2 Regular Interest MTI-ZZ.

            Payahead: Any Scheduled Payment intended by the related Mortgagor to
be applied in a Due Period subsequent to the Due Period in which such payment
was received.

            Payoff: Any payment of principal on a Mortgage Loan equal to the
entire outstanding Stated Principal Balance of such Mortgage Loan, if received
in advance of the last scheduled Due Date for such Mortgage Loan and accompanied
by an amount of interest equal to accrued unpaid interest on the Mortgage Loan
to the date of such payment-in-full.

            Percentage Interest: As to any Certificate, the percentage interest
evidenced thereby in distributions required to be made on the related Class,
such percentage interest being set forth on the face

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<PAGE>

thereof or equal to the percentage obtained by dividing the Denomination of such
Certificate by the aggregate of the Denominations of all Certificates of the
same Class.

            Permitted Transferee: Any person other than (i) the United States,
any State or political subdivision thereof, or any agency or instrumentality of
any of the foregoing, (ii) a foreign government, International Organization or
any agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in section 521 of the Code)
which is exempt from tax imposed by Chapter 1 of the Code (including the tax
imposed by section 511 of the Code on unrelated business taxable income) on any
excess inclusions (as defined in section 860E(c)(1) of the Code) with respect to
any Residual Certificate, (iv) rural electric and telephone cooperatives
described in section 1381(a)(2)(C) of the Code, (v) a Person that is not a
United States Person, and (vi) a Person designated as a non-Permitted Transferee
by the Depositor based upon an Opinion of Counsel that the Transfer of an
Ownership Interest in a Residual Certificate to such Person may cause any REMIC
created hereunder to fail to qualify as a REMIC at any time that the
Certificates are outstanding. The terms "United States," "State" and
"International Organization" shall have the meanings set forth in section 7701
of the Code or successor provisions. A corporation will not be treated as an
instrumentality of the United States or of any State or political subdivision
thereof for these purposes if all of its activities are subject to tax and, with
the exception of Freddie Mac, a majority of its board of directors is not
selected by such government unit.

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

            Physical Certificates: As specified in the Preliminary Statement.

            Pre-Funding Account: The separate Eligible Account created and
maintained by the Trustee with respect to the Mortgage Loans pursuant to Section
3.05(f) in the name of the Trustee for the benefit of the Certificateholders and
designated "JPMorgan Chase Bank, in trust for registered holders of Home Equity
Mortgage Pass-Through Certificates, Series 2004-2." Funds in the Pre-Funding
Account shall be held in trust for the Certificateholders for the uses and
purposes set forth in this Agreement and shall not be a part of any REMIC
created hereunder; provided, however, that any investment income earned from
Eligible Investments made with funds in the Pre-Funding Account shall be for the
account of the Depositor.

            Pre-Funding Amount: The amount deposited in the Pre-Funding Account
on the Closing Date, which shall equal $16,469,215.07.

            Pre-Funding Period: the period from the Closing Date until the
earliest of (i) the date on which the amount on deposit in the Pre-Funding
Account is reduced to zero, (ii) the date on which an Event of Default occurs or
(iii) July 25, 2004.

            Prepayment Interest Shortfall: As to any Mortgage Loan, Distribution
Date and Principal Prepayment, other than Principal Prepayments in full that
occur during the portion of the Prepayment Period that is in the same calendar
month as the Distribution Date, the difference between (i) one full month's

                                       31
<PAGE>

interest at the applicable Mortgage Rate (giving effect to any applicable Relief
Act Reduction), as reduced by the Expense Fee Rate, on the outstanding principal
balance of such Mortgage Loan immediately prior to such prepayment and (ii) the
amount of interest actually received that accrued during the month immediately
preceding such Distribution Date or, with respect to any Mortgage Loan with a
Due Date other than the first of the month, the amount of interest actually
received that accrued during the one-month period immediately preceding the Due
Date following the Principal Payment, with respect to such Mortgage Loan in
connection with such Principal Prepayment.

            Prepayment Charge: With respect to any Mortgage Loan, any penalty
required to be paid if the Mortgagor prepays such Mortgage Loan as provided in
the related Mortgage Note or Mortgage.

            Prepayment Period: With respect to each Distribution Date (other
than the May 2004 Distribution Date) and each Payoff, the related "Prepayment
Period" will be the 15th of the month preceding the month in which the related
Distribution Date occurs through the 14th of the month in which the related
Distribution Date occurs. With respect to the May 2004 Distribution Date and
each Payoff, the related "Prepayment Period" will be April 1, 2004 through May
14, 2004. With respect to each Distribution Date and each Curtailment, the
related "Prepayment Period" will be the calendar month preceding the month in
which the related Distribution Date occurs.

            Principal Payment Amount: For any Distribution Date, an amount equal
to the Principal Remittance Amount plus any Excess Cashflow Loss Payment for
such date, minus the Overcollateralization Release Amount, if any, for such
date.

            Principal Remittance Amount: For any Distribution Date, an amount
equal to the sum of (1) all principal collected (other than Payaheads) or
advanced in respect of Scheduled Payments on the Mortgage Loans during the
related Due Period (less unreimbursed Advances, Servicing Advances and other
amounts due to the Servicer and the Trustee with respect to the Mortgage Loans,
to the extent allocable to principal) and the principal portion of Payaheads
previously received and intended for application in the related Due Period, (2)
all Principal Prepayments on the Mortgage Loans received during the related
Prepayment Period, (3) the outstanding principal balance of each Mortgage Loan
that was repurchased by the Seller, the Optional Termination Holder or the
Majority in Interest Class X-2 Certificateholder during the calendar month
immediately preceding such Distribution Date, (4) the portion of any
Substitution Adjustment Amount paid with respect to any Deleted Mortgage Loans
during the calendar month immediately preceding such Distribution Date allocable
to principal, (5) all Liquidation Proceeds and any Insurance Proceeds and other
recoveries (net of unreimbursed Advances, Servicing Advances and other expenses,
to the extent allocable to principal) and Net Recoveries collected with respect
to the Mortgage Loans during the prior calendar month, to the extent allocable
to principal and (6) with respect to the Distribution Date in July 2004, the
amount remaining in the Pre-Funding Account at the end of the Pre-Funding
Period.

            Principal Prepayment: Any payment of principal on a Mortgage Loan
which constitutes a Payoff or Curtailment.

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<PAGE>

            Prospectus Supplement: The Prospectus Supplement dated April 27,
2004 relating to the Offered Certificates.

            PUD: Planned Unit Development.

            Qualified Insurer: A mortgage guaranty insurance company duly
qualified as such under the laws of the state of its principal place of business
and each state having jurisdiction over such insurer in connection with the
insurance policy issued by such insurer, duly authorized and licensed in such
states to transact a mortgage guaranty insurance business in such states and to
write the insurance provided by the insurance policy issued by it, approved as a
Fannie Mae-or Freddie Mac-approved mortgage insurer or having a claims paying
ability rating of at least "AA" or equivalent rating by at least two nationally
recognized statistical rating organizations. Any replacement insurer with
respect to a Mortgage Loan must have at least as high a claims paying ability
rating as the insurer it replaces had on the Closing Date.

            Qualified Substitute Mortgage Loan: A Mortgage Loan substituted by
the Seller for a Deleted Mortgage Loan which must, on the date of such
substitution, as confirmed in a Request for Release, substantially in the form
of Exhibit M (i) have a Stated Principal Balance, after deduction of the
principal portion of the Scheduled Payment due in the month of substitution (or,
in the case of a substitution of more than one mortgage loan for a Deleted
Mortgage Loan, an aggregate principal balance), not in excess of, and not more
than 10% less than the Stated Principal Balance of the Deleted Mortgage Loan;
(ii) be accruing interest at a rate no lower than and not more than 1% per annum
higher than, that of the Deleted Mortgage Loan; (iii) have a Combined
Loan-to-Value Ratio no higher than that of the Deleted Mortgage Loan; (iv) have
a remaining term to maturity no greater than (and not more than one year less
than that of) the Deleted Mortgage Loan; and (v) comply with each representation
and warranty set forth in Section 2.03(f).

            Rating Agency: S&P and Moody's. If either such organization or a
successor is no longer in existence, "Rating Agency" shall be such nationally
recognized statistical rating organization, or other comparable Person, as is
designated by the Depositor, notice of which designation shall be given to the
Trustee and the Servicer. References herein to a given rating or rating category
of a Rating Agency shall mean such rating category without giving effect to any
modifiers.

            Ratings: As of any date of determination, the ratings, if any, of
the Certificates as assigned by the Rating Agencies.

            Realized Loss: With respect to each Liquidated Mortgage Loan, an
amount (not less than zero or greater than the Stated Principal Balance of the
Mortgage Loan) as of the date of such liquidation, equal to (i) the Stated
Principal Balance of the Liquidated Mortgage Loan as of the date of such
liquidation, plus (ii) interest at the Net Mortgage Rate from the related Due
Date as to which interest was last paid or advanced (and not reimbursed) to the
related Certificateholders up to the related Due Date in the month in which
Liquidation Proceeds are required to be distributed on the Stated Principal
Balance of such Liquidated Mortgage Loan from time to time, minus (iii) the
Liquidation Proceeds, if any, received during the month in which such
liquidation occurred, to the extent applied as recoveries of interest at the Net

                                       33
<PAGE>

Mortgage Rate and to principal of the Liquidated Mortgage Loan. Any Charged Off
Loan will give rise to a Realized Loss (calculated as if clause (iii) of the
previous sentence is equal to zero) at the time it is charged off, as described
in Section 3.11(a)(iii) hereof.

            If the Servicer receives Net Recoveries with respect to any Charged
Off Loan, the amount of the Realized Loss with respect to that Charged Off Loan
will be reduced to the extent such recoveries are applied to principal
distributions on any Distribution Date.

            Record Date: With respect to the Certificates (other than the Class
A-1, Class A-IO, Class M-1, Class M-2, Class B-1, Class B-2 and Class B-3A
Certificates which are Book-Entry Certificates) and any Distribution Date, the
close of business on the last Business Day of the month preceding the month in
which such applicable Distribution Date occurs. With respect to the Class A-1,
Class A-IO, Class M-1, Class M-2, Class B-1, Class B-2 and Class B-3A
Certificates which are Book-Entry Certificates and any Distribution Date, the
close of business on the Business Day preceding such Distribution Date.

            Reference Bank Rate: With respect to any Interest Accrual Period, as
follows: the arithmetic mean (rounded upwards, if necessary, to the nearest one
sixteenth of a percent) of the offered rates for United States dollar deposits
for one month which are offered by the Reference Banks as of 11:00 A.M., London,
England time, on the second LIBOR Business Day prior to the first day of such
Interest Accrual Period to prime banks in the London interbank market for a
period of one month in amounts approximately equal to the aggregate Class
Principal Balance of the LIBOR Certificates; provided that at least two such
Reference Banks provide such rate. If fewer than two offered rates appear, the
Reference Bank Rate will be the arithmetic mean of the rates quoted by one or
more major banks in New York City, selected by the Trustee, as of 11:00 a.m.,
New York time, on such date for loans in U.S. Dollars to leading European Banks
for a period of one month in amounts approximately equal to the aggregate Class
Principal Balance of the LIBOR Certificates. If no such quotations can be
obtained, the Reference Bank Rate shall be LIBOR applicable to the preceding
Distribution Date; provided however, that if, under the priorities indicated
above, LIBOR for a Distribution Date would be based on LIBOR for the previous
Payment Date for the third consecutive Distribution Date, the Trustee shall
select 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.

            Reference Banks: Barclays Bank PLC, National Westminster Bank and
Abbey National PLC.

            Regular Certificates: As specified in the Preliminary Statement.

            Released Loan: Any Charged Off Loan that is released by Wilshire to
the Class X-2 Certificateholders pursuant to Section 3.11(a), generally on the
date that is six months after the date on which Wilshire begins using Wilshire
Special Servicing on such Charged Off Loans. Any Released Loan will no longer be
an asset of any REMIC or the Trust Fund.

            Relief Act: The Servicemembers Civil Relief Act or any similar state
law or regulation.

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<PAGE>

            Relief Act Reductions: With respect to any Distribution Date and any
Mortgage Loan as to which there has been a reduction in the amount of interest
or principal collectible thereon (attributable to any previous month) as a
result of the application of the Relief Act or similar state law or regulation,
the amount, if any, by which (i) interest and/or principal collectible on such
Mortgage Loan for the most recently ended calendar month is less than (ii)
interest and/or principal accrued thereon for such month pursuant to the
Mortgage Note.

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

            REMIC 1: 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
as from time to time are subject to this Agreement (other than any Prepayment
Premiums), 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
Primary Insurance Policy, required to be maintained pursuant to this Agreement
and any proceeds thereof and, (iv) the Collection Account and the Certificate
Account (subject to the last sentence of this definition) and such assets that
are deposited therein from time to time and any investments thereof.
Notwithstanding the foregoing, however, a REMIC election will not be made with
respect to the Pre-Funding Account or the Capitalized Interest Account.

            REMIC 1 Regular Interest LTI-1: 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 LTI-1 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 LTI-PF: 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 LTI-PF
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 LTI-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 LTI-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.

                                       35
<PAGE>

            REMIC 1 Regular Interest LTI-R: 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 LTI-R 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 LTI-1, LTI-1PF,
LTI-P and LTI-R.

            REMIC 2: The segregated pool of assets consisting of all of the
REMIC 1 Regular Interests conveyed in the trust to the Trustee, for the benefit
of the Holders of the REMIC 2 Regular Interests and the Class A-R
Certificates(in respect 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.

            REMIC 2 Interest Loss Allocation Amount: With respect to any
Distribution Date, an amount equal to (a) the product of (i) the aggregate
Stated Principal Balance of the Mortgage Loans and related REO Properties then
outstanding and (ii) the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2
Regular Interest MT-AA minus the Marker Rate, divided by (b) 12.

            REMIC 2 Net WAC Rate: With respect to any Distribution Date, a per
annum rate equal to the weighted average of the Uncertificated REMIC 1
Pass-Through Rates on the REMIC 1 Regular Interest LTI-1 and REMIC 1 Regular
Interest LTI-1PF, weighted on the basis of such respective Uncertificated
Principal Balances thereof immediately preceding such Distribution Date.

            REMIC 2 Overcollateralization Amount: With respect to any date of
determination, (i) 1% of the aggregate Uncertificated Principal Balances of the
REMIC 2 Regular Interests minus (ii) the aggregate Uncertificated Principal
Balances of REMIC 2 Regular Interests MTI-A-1, MTI-A-I-1, MTI-M-1, MTI-M-2,
MTI-B-1, MTI-B-2, MTI-B-3A, MTI-B-3F, MTI-R, MTI-RL and MTI-P, in each case as
of such date of determination.

            REMIC 2 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 related REO Properties then
outstanding and (ii) 1 minus a fraction, the numerator of which is two times the
aggregate Uncertificated Principal Balance of REMIC 2 Regular Interests MTI-A-1,
MTI-A-I-1, MT-M-1, MT-M-2, MT-B-1, MT-B-2, MT-B-3A and MT-B-3F and the
denominator of which is the aggregate Uncertificated Principal Balance of REMIC
2 Regular Interests MTI-A-1, MTI-A-I-1, MT-M-1, MTI-M-2, MTI-B-1, MTI-B-2,
MTI-B-3A, MTI-B-3F and MTI-ZZ.

            REMIC 2 Regular Interest MTI-AA: 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 MTI-AA
shall accrue interest at the related Uncertificated REMIC 2 Pass-

                                       36
<PAGE>

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 MTI-A-1: 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 MTI-A-1
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 MTI-A-I-1: 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 MTI-A-I-1
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 MTI-M-1: 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 MTI-M-1
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 MTI-M-2: 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 MTI-M-2
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 MTI-B-1: 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 MTI-B-1
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 MTI-B-2: 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 MTI-B-2
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

                                       37
<PAGE>

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 MTI-B-3A: 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 MTI-B-3A
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 MTI-B-3F: 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 MTI-B-3F
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 MTI-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 MTI-P 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 MTI-R: 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 MTI-R 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 MTI-ZZ: 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 MTI-ZZ
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 MTI-ZZ Maximum Interest Deferral Amount:

            REMIC 2 Regular Interests: REMIC 2 Regular Interest MTI-AA, REMIC 2
Regular Interest MTI-A-1, REMIC 2 Regular Interest MTI-A-I-1, REMIC 2 Regular
Interest MTI-M-1, REMIC 2 Regular Interest MTI-M-2, REMIC 2 Regular Interest
MTI-B-1, REMIC 2 Regular Interest MTI-B-2,

                                       38
<PAGE>

REMIC Regular Interest MTI-B-3A, REMIC Regular Interest MTI-B-3F, REMIC 2
Regular Interest MTI-ZZ, REMIC 2 Regular Interest MTI-P and REMIC 2 Regular
Interest MTI-R.

            REMIC 2 Targeted Overcollateralization Amount: 1% of the Targeted
Overcollateralization Amount.

            REMIC 3: The segregated pool of assets consisting of all of the
REMIC 2 Regular Interests conveyed in the trust to the Trustee, for the benefit
of the Holders of the REMIC 3 Regular Interests and Class A-R Certificates (in
respect 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 Regular Interests: REMIC 3 Regular Interests MTII-A-1,
MTII-A-I-1, MTII-M-1, MTII-M-2, MTII-B-1, MTII-B-2, MTII-B-3A, MTII-B-3F,
MTII-X-1, MTII-P and MTII-R.

            REMIC 3 Regular Interest MTII-A-1: 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 MTII-A-1
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 MTII-A-I-1: 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 MTII-A-I-1
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 MTII-M-1: 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 MTII-M-1
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 MTII-M-2: 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 MTII-M-2
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.

                                       39
<PAGE>

            REMIC 3 Regular Interest MTII-B-1: 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 MTII-B-1
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 MTII-B-2: 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 MTII-B-2
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 MTII-B-3A: 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 MTII-B-3A
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 MTII-B-3F: 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 MTII-B-3F
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 MTII-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 2 Regular Interest MTII-P
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 MTII-R: 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 MTII-R
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.

                                       40
<PAGE>

            REMIC 3 Regular Interest MTII-X-1: 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 MTII-X-1
shall accrue interest at the related Uncertificated REMIC 3 Pass-Through Rate
in effect from time to time.

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

            REMIC Regular Interests: The REMIC 1 Regular Interests, REMIC 2
Regular Interests, REMIC 3 Regular Interests and Regular Certificates.

            REO Property: A Mortgaged Property acquired by the Trust Fund
through foreclosure or deed-in-lieu of foreclosure in connection with a
defaulted Mortgage Loan and, for the avoidance of doubt, following the
satisfaction of any related First Mortgage Loan.

            Repurchase Price: With respect to any Mortgage Loan required to be
purchased by the Seller pursuant to this Agreement or purchased at the option of
the Majority in Interest Holder of the Class X-2 Certificates pursuant to this
Agreement, an amount equal to the sum of (i) 100% of the unpaid principal
balance of the Mortgage Loan on the date of such purchase, (ii) accrued unpaid
interest thereon at the applicable Mortgage Rate from the date through which
interest was last paid by the Mortgagor to the Due Date in the month in which
the Repurchase Price is to be distributed to Certificateholders, (iii) any
unreimbursed Servicing Advances and (iv) any costs and damages actually incurred
and paid by or on behalf of the Trust (including, but not limited to late fees)
in connection with any breach of the representation and warranty set forth in
clause (xx) of Schedule IV hereto as the result of a violation of a predatory or
abusive lending law applicable to such Mortgage Loan.

            Request for Release: The Request for Release submitted by the
Servicer to the Trustee, substantially in the form of Exhibit M.

            Required Insurance Policy: With respect to any Mortgage Loan, any
insurance policy that is required to be maintained from time to time under this
Agreement.

            Residual Certificates: As specified in the Preliminary Statement.

            Responsible Officer: When used with respect to the Trustee, any Vice
President, any Assistant Vice President, 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 also to
whom, with respect to a particular matter, such matter is referred because of
such officer's knowledge of and familiarity with the particular subject and who
shall have direct responsibility for the administration of this Agreement.

                                       41
<PAGE>

            Rolling Three Month Delinquency Rate: For any Distribution Date will
be the fraction, expressed as a percentage, equal to the average of the
Delinquency Rates for each of the three (or one and two, in the case of the
first and second Distribution Dates, respectively) immediately preceding months.

            SAIF: The Savings Association Insurance Fund, or any successor
thereto.

            S&P: Standard & Poor's, a division of The McGraw-Hill Companies,
Inc. For purposes of Section 10.05(b) the address for notices to S&P shall be
Standard & Poor's, 55 Water Street, New York, New York 10004, Attention:
Mortgage Surveillance Monitoring, or such other address as S&P may hereafter
furnish to the Depositor, the Servicer and the Trustee.

            Scheduled Payment: The scheduled monthly payment on a Mortgage Loan
due on any Due Date allocable to principal and/or interest on such Mortgage Loan
pursuant to the terms of the related Mortgage Note, as reduced by any Relief Act
Reductions.

            Second Mortgage Loan: A Mortgage Loan that is secured by a second
lien on the Mortgaged Property securing the related Mortgage Note.

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

            Seller: DLJ Mortgage Capital, Inc.

            Senior Certificates: As specified in the Preliminary Statement.

            Senior Enhancement Percentage: For any Distribution Date, the
fraction, expressed as a percentage, the numerator of which is the sum of the
aggregate Class Principal Balance of the Class M-1, Class M-2, Class B-1, Class
B-2, Class B-3A and Class B-3F Certificates and the Overcollateralization Amount
(which, for purposes of this definition only, shall not be less than zero), in
each case after giving effect to payments on such Distribution Date (assuming no
Trigger Event is in effect), and the denominator of which is the Aggregate
Collateral Balance for such Distribution Date.

            Senior Principal Payment Amount: For any Distribution Date on or
after the Stepdown Date and as long as a Trigger Event is not in effect with
respect to such Distribution Date, will be the amount, if any, by which (x) the
aggregate Class Principal Balance of the Class A-1, Class P, Class A-R and Class
A-RL Certificates immediately prior to such Distribution Date exceeds (y) the
lesser of (A) the product of (i) 46.30% and (ii) the Aggregate Collateral
Balance for such Distribution Date and (B) the amount, if any, by which (i) the
Aggregate Collateral Balance for such Distribution Date exceeds (ii) 0.50% of
the Aggregate Collateral Balance as of the Cut-off Date.

            Servicer: Wilshire or its successors in interest, or any successor
servicer appointed as provided herein.

            Servicer Employee: As defined in Section 3.18.

                                       42
<PAGE>

            Servicer Cash Remittance Date: With respect to each Distribution
Date, the Business Day immediately preceding such Distribution Date.

            Servicer Data Remittance Date: With respect to each Distribution
Date, the second Business Day immediately following the 15th day of the month of
such Distribution Date.

            Servicing Advance: All customary, reasonable and necessary "out of
pocket" costs and expenses incurred in the performance by the Servicer of its
servicing obligations, including, but not limited to, the cost (including
reasonable attorneys' fees and disbursements) of (i) the preservation,
restoration and protection of a Mortgaged Property, (ii) any expenses
reimbursable to the Servicer pursuant to Section 3.11 and any enforcement or
judicial proceedings, including foreclosures, and including any expenses
incurred in relation to any such proceedings that result from the Mortgage Loan
being registered on the MERS System; (iii) the management and liquidation of any
REO Property (including default management and similar services, appraisal
services and real estate broker services); (iv) any expenses incurred by the
Servicer in connection with obtaining an environmental inspection or review
pursuant to Section 3.11(a)(v) and (vi); (v) compliance with the obligations
under Section 3.01, 3.09 and 3.11(b); (vi) the cost of obtaining any broker's
price opinion in accordance with Section 3.11 hereof; (vii) the costs of
obtaining an Opinion of Counsel pursuant to Section 3.11(c) hereof; (viii)
expenses incurred in connection with any instrument of satisfaction or deed of
reconveyance as described in Section 3.12 hereof; and (ix) expenses incurred in
connection with the recordation of Assignments of Mortgage.

            Servicing Fee: As to each Mortgage Loan and any Distribution Date,
an amount equal to one month's interest at the Servicing Fee Rate on the Stated
Principal Balance of such Mortgage Loan as of the Due Date in the month of such
Distribution Date (prior to giving effect to any Scheduled Payments due on such
Mortgage Loan on such Due Date), subject to reduction as provided in Section
3.05(b)(vi).

            Servicing Fee Rate: As to each Mortgage Loan, 0.50% per annum.

            Servicing Officer: With respect to the Servicer, any officer of that
Servicer involved in, or responsible for, the administration and servicing of
the related Mortgage Loans whose name and specimen signature appear on a list of
servicing officers furnished to the Trustee by the Servicer on the Closing Date
pursuant to this Agreement, as such list may from time to time be amended.

            Significant Net Recoveries: With respect to a defaulted Mortgage
Loan, a determination by the Servicer that either (A) the potential Net
Recoveries are anticipated to be greater than or equal to the sum of (i) the
Stated Principal Balance of the senior lien on the related Mortgaged Property
and (ii) $10,000 or (B) the related Mortgagor has shown a willingness and
ability to pay over the previous six months.

            Simple Interest Excess: As of any Determination Date for each Simple
Interest Qualifying Loan, the excess, if any, of (i) the portion of the monthly
payment received from the Mortgagor for such Mortgage Loan allocable to interest
with respect to the related Due Period, over (ii) 30 days' interest on the
Stated Principal Balance of such Mortgage Loan at the Mortgage Rate.

                                       43
<PAGE>

            Simple Interest Excess Sub-Account: The sub-account of the
Collection Account established by the Servicer pursuant to Section 3.06(d). The
Simple Interest Excess Sub-Account shall be an Eligible Account.

            Simple Interest Mortgage Loan: Any Mortgage Loan for which the
interest due thereon is calculated based on the actual number of days elapsed
between the date on which interest was last paid through the date on which the
most current payment is received.

            Simple Interest Qualifying Loan: As of any Determination Date, any
Simple Interest Mortgage Loan that was neither prepaid in full during the
related Due Period, nor delinquent with respect to a payment that became due
during the related Due Period as of the close of business on the Determination
Date following such Due Period.

            Simple Interest Shortfall: As of any Determination Date for each
Simple Interest Qualifying Loan, the excess, if any, of (i) 30 days' interest on
the Stated Principal Balance of all such Mortgage Loans at the Mortgage Rate,
over (ii) the portion of the monthly payment received from the Mortgagor for
such Mortgage Loan allocable to interest with respect to the related Due Period.

            Startup Day: April 29, 2004.

            Stated Principal Balance: As to any Mortgage Loan and Due Date, the
unpaid principal balance of such Mortgage Loan as of such Due Date as specified
in the amortization schedule at the time relating thereto (before any adjustment
to such amortization schedule by reason of any moratorium or similar waiver or
grace period) after giving effect to any previous Curtailments and Liquidation
Proceeds allocable to principal (other than with respect to any Liquidated
Mortgage Loan) and to the payment of principal due on such Due Date and
irrespective of any delinquency in payment by the related Mortgagor; provided,
however, for purposes of calculating the Servicing Fee and the Trustee Fee, the
Stated Principal Balance of any REO will be the unpaid principal balance
immediately prior to foreclosure.

            Stepdown Date: The date occurring on the later of (x) the
Distribution Date in May 2007 and (y) the first Distribution Date on which the
Senior Enhancement Percentage (calculated for this purpose after giving effect
to payments or other recoveries in respect of the Mortgage Loans during the
related Due Period but before giving effect to payments on the Certificates on
such Distribution Date) is greater than or equal to 53.70%.

            Subordinate Certificates: As specified in the Preliminary Statement.

            Subsequent Mortgage Loan: Any Mortgage Loan other than an Initial
Mortgage Loan conveyed to the Trust Fund pursuant to Section 2.01 hereof and to
a Subsequent Transfer Agreement, which Mortgage Loan shall be listed on the
revised Mortgage Loan Schedule delivered pursuant to this Agreement and on
Schedule A to such Subsequent Transfer Agreement. When used with respect to a
single Subsequent Transfer Date, Subsequent Mortgage Loan shall mean a
Subsequent Mortgage Loan conveyed to the Trust on that Subsequent Transfer Date.

                                       44
<PAGE>

            Subsequent Mortgage Loan Interest: Any amount constituting an
Interest Remittance Amount (other than an amount withdrawn from the related
Capitalized Interest Account pursuant to clause (5) of the definition of
"Interest Remittance Amount") received or advanced with respect to a Subsequent
Mortgage Loan during the Due Periods relating to the May 2004, June 2004 or July
2004 Distribution Dates, but only to the extent of the excess of such amount
over the amount of interest accruing on such Subsequent Mortgage Loan during the
related period at a per annum rate equal to 2.13%, 2.64% and 2.82%,
respectively. The Subsequent Mortgage Loan Interest shall not be an asset of any
REMIC.

            Subsequent Transfer Agreement: A Subsequent Transfer Agreement
substantially in the form of Exhibit N hereto, executed and delivered by the
Servicer, the Depositor, the Seller and the Trustee as provided in Section 2.01
hereof.

            Subsequent Transfer Date: For any Subsequent Transfer Agreement, the
date the related Subsequent Mortgage Loans are transferred to the Trust Fund
pursuant to the related Subsequent Transfer Agreement.

            Subservicer: Any Subservicer which is subservicing the Mortgage
Loans pursuant to a Subservicing Agreement. Any subservicer shall meet the
qualifications set forth in Section 3.02.

            Subservicing Agreement: An agreement between the Servicer and a
Subservicer for the servicing of the Mortgage Loans.

            Substitution Adjustment Amount: As defined in Section 2.03.

            Targeted Overcollateralization Amount: For any Distribution Date
prior to the Stepdown Date, 3.85% of the Aggregate Collateral Balance as of the
Cut-off Date; with respect to any Distribution Date on or after the Stepdown
Date and with respect to which a Trigger Event is not in effect, the greater of
(a) 7.70% of the Aggregate Collateral Balance for such Distribution Date, or (b)
0.50% of the Aggregate Collateral Balance as of the Cut-off Date; with respect
to any Distribution Date on or after the Stepdown Date with respect to which a
Trigger Event is in effect and is continuing, the Targeted Overcollateralization
Amount for the Distribution Date immediately preceding such Distribution Date.
Upon (x) written direction by the Majority in Interest Holder of the Class X-1
Certificates and (y) the issuance by an affiliate of the Depositor of a credit
enhancement contract in favor of REMIC 1 which is satisfactory to the Rating
Agencies and (z) receipt by the Trustee of an Opinion of Counsel, which opinion
shall not be an expense of the Trustee or the Trust Fund, but shall be at the
expense of the Majority in Interest Holder of the Class X-1 Certificates, to the
effect that such credit enhancement contract will not cause the imposition of
any federal tax on the Trust Fund or the Certificateholders or cause REMIC 1,
REMIC 2, REMIC 3, REMIC 4 to fail to qualify as a REMIC at any time that any
Certificates are outstanding, the Targeted Overcollateralization Amount shall be
reduced to the level approved by the Rating Agencies as a result of such credit
enhancement contract. Any credit enhancement contract referred to in the
previous sentence shall be collateralized by cash or mortgage loans, provided
that (i) the aggregate Stated Principal Balance of the mortgage loans
collateralizing any such credit enhancement contract shall not be less than the
excess, if any, of (x) the initial Targeted Overcollateralization Amount over
(y) the then-current Overcollateralization

                                       45
<PAGE>

Amount and (ii) the issuance of any credit enhancement contract supported by
mortgage loans shall not result in a downgrading of the ratings assigned by the
Rating Agencies.

            Tax Matters Person: The person designated as "tax matters person" in
the manner provided under Treasury regulation ss. 1.860F-4(d) and temporary
Treasury regulation ss. 301.6231(a)(7)-1T.

            Transfer: Any direct or indirect transfer or sale of any Ownership
Interest in a Residual Certificate.

            Trigger Event: A Trigger Event will be in effect for any
Distribution Date on or after the Stepdown Date if (a) the Rolling Three Month
Delinquency Rate as of the last day of the related Due Period equals or exceeds
16.00% of the Senior Enhancement Percentage for such Distribution Date or (ii) a
Cumulative Loss Event is occurring. The Trigger Event may be amended by the
parties hereto in the future with the consent of the Rating Agencies.

            Trust Collateral: As defined in Section 9.01.

            Trust Fund: Collectively, the assets of REMIC 1, REMIC 2, REMIC 3,
REMIC 4, the Pre-Funding Account, Capitalized Interest Account and the
Subsequent Mortgage Loan Interest.

            Trustee: JPMorgan Chase Bank and its successors and, if a successor
trustee is appointed hereunder, such successor.

            Trustee Fee: As to each Mortgage Loan and any Distribution Date, an
amount equal to one month's interest at the Trustee Fee Rate on the Stated
Principal Balance of such Mortgage Loan as of the Due Date in the month of such
Distribution Date (prior to giving effect to any Scheduled Payments due on such
Mortgage Loan on such Due Date).

            Trustee Fee Rate: With respect to any Distribution Date, 0.0100% per
annum.

            Uncertificated Accrued Interest: With respect to each 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 of such REMIC Regular Interest. In each case, Uncertificated Accrued
Interest will be reduced by any Net Prepayment Interest Shortfalls and Relief
Act Reductions (allocated to such REMIC Regular Interests based on the
priorities set forth in Section 1.03).

            Uncertificated Accrued Interest: With respect to each 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 of such REMIC Regular Interest. In each case, Uncertificated Accrued
Interest will be reduced by any Net Prepayment Interest Shortfalls and Relief
Act Reductions (allocated to such REMIC Regular Interests based on the
priorities set forth in Section 1.03).

                                       46
<PAGE>

            Uncertificated Principal Balance: With respect to each REMIC Regular
Interest, the amount of such REMIC Regular Interest outstanding as of any date
of determination. As of the Closing Date, the Uncertificated Principal Balance
of each 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 REMIC
Regular Interest shall be reduced by all distributions of principal made on such
REMIC Regular Interest on such Distribution Date pursuant to Section 4.07 and,
if and to the extent necessary and appropriate, shall be further reduced on such
Distribution Date by Realized Losses as provided in Section 4.05(b) , and the
Uncertificated Principal Balance of REMIC 2 Regular Interest MTI-ZZ shall be
increased by interest deferrals as provided in Section 4.07. The Uncertificated
Principal Balance of each REMIC Regular Interest that has an Uncertificated
Principal Balance shall never be less than zero.

            Uncertificated REMIC 1 Pass-Through Rate: With respect to each REMIC
1 Regular Interest (other than REMIC 1 Regular Interest LTI-1PF) and the
Interest Accrual Periods in May 2004, June 2004 and July 2004, a per annum rate
equal to the Initial Mortgage Loan Net WAC Rate; with respect to REMIC 1 Regular
Interest LTI-1PF and the Interest Accrual Periods in (a) May 2004, (b) June 2004
and (c) July 2004, a per annum rate equal to (a) 2.13%, (b) 2.64% and (c) 2.82%;
and with respect to each REMIC 1 Regular Interest and each Interest Accrual
Period thereafter, the weighted average of the Net Mortgage Rates on the
Mortgage Loans.

            Uncertificated REMIC 2 Pass-Through Rate: For any Distribution Date,
with respect to REMIC 2 Regular Interest MTI-AA, REMIC 2 Regular Interest
MTI-A-1, REMIC 2 Regular Interest MTI-A-I-1, REMIC 2 Regular Interest MTI-M-1,
REMIC 2 Regular Interest MTI-M-2, REMIC 2 Regular Interest MTI-B-1, REMIC 2
Regular Interest MTI-B-2, REMIC 2 Regular Interest MTI-B-3A, REMIC 2 Regular
Interest MTI-B-3F, REMIC 2 Regular Interest MTI-ZZ, the REMIC 2 Net WAC Rate,
and for any Distribution Date with respect to REMIC 2 Regular Interest MT-P, and
REMIC 2 Regular Interest MT-R in May 2004, June 2004 and July 2004, the Initial
Mortgage Loan Net WAC, and for any Distribution Date thereafter, the REMIC 2 Net
WAC Rate.

            Uncertificated REMIC 3 Pass-Through Rate: For each of the REMIC 3
Regular Interests MTII-A-1, MTII-M-1, MTII-M-2, MTII-B-1, MTII-B-2, MTII-B-3A
and MTII-B-3F, a per annum rate equal to the Pass-Through Rate for the
Corresponding Certificates. For REMIC 3 Regular Interests MTII-A-I-1, a per
annum rate equal to the greater of (i) the Pass-Through Rate for the
Corresponding Certificate and (ii) the related Certificate Margin plus 3.00%.
For each of REMIC 3 Regular Interests MTII-P and MTII-R, a per annum rate equal
to the weighted average of REMIC 2 Regular Interests MTI-P and MTI-R,
respectively.

            Uncertificated Principal Balance: With respect to each REMIC Regular
Interest, the amount of such REMIC Regular Interest outstanding as of any date
of determination. As of the Closing Date, the Uncertificated Principal Balance
of each 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 REMIC
Regular Interest shall be reduced by all distributions of principal made on such
REMIC Regular Interest on such Distribution Date pursuant to Section 4.07 and,

                                       47
<PAGE>

if and to the extent necessary and appropriate, shall be further reduced on such
Distribution Date by Realized Losses as provided in Section 4.05(b), and the
Uncertificated Principal Balances of REMIC 1 Regular Interest LTI-1PF shall be
increased, pro rata, by interest deferrals as provided in Section 4.07. The
Uncertificated Principal Balance of each REMIC Regular Interest that has an
Uncertificated Principal Balance shall never be less than zero.

            United States Person: A citizen or resident of the United States, a
corporation or a partnership (including an 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 or any State thereof or the District
of Columbia (except, in the case of a partnership, to the extent provided in
regulations) provided that, for purposes solely of the restrictions on the
transfer of Class A-R Certificates and Class A-RL 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 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 such 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 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.

            Voting Rights: The portion of the voting rights of all the
Certificates that is allocated to any Certificate for purposes of the voting
provisions of this Agreement. At all times during the term of this Agreement,
97% of all Voting Rights shall be allocated among the Class A-1, Class M-1,
Class M-2, Class B-1, Class B-2, Class B-3A and Class B-3F Certificates. The
portion of such 97% Voting Rights allocated to the Class A-1, Class M-1, Class
M-2 Class B-1, Class B-2, Class B-3A and Class B-3F Certificates shall be based
on the fraction, expressed as a percentage, the numerator of which is the
aggregate Class Principal Balance then outstanding and the denominator of which
is the Class Principal Balance of all such Classes then outstanding. The Class
A-IO, Class P and Class X-1 Certificates shall each be allocated 1% of the
Voting Rights. Voting Rights shall be allocated among the Certificates within
each such Class (other than the Class P Certificates and Class X-1 Certificates,
which each have only one certificate) in accordance with their respective
Percentage Interests. The Class X-2, Class A-R and Class A-RL Certificates shall
have no Voting Rights.

            Wilshire: Wilshire Credit Corporation.

            Wilshire Special Servicing: With regard to any Charged Off Loans,
the servicing of such Charged Off Loans using specialized collection procedures
(including foreclosure, if appropriate) to maximize recoveries.

            SECTION 1.02 Interest Calculations.

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<PAGE>

            The calculation of the Trustee Fee, the Servicing Fee, the Credit
Risk Manager Fee and interest on the Class A-IO, Class P, Class A-R, Class A-RL,
Class B-3F and Class X-1 Certificates and on the related Uncertificated
Interests shall be made on the basis of a 360-day year consisting of twelve
30-day months. The calculation of interest on the Class A-1, Class M-1, Class
M-2, Class B-1, Class B-2 and Class B-3A Certificates and the related
Uncertificated Interests shall be made on the basis of a 360-day year and the
actual number of days elapsed in the related Interest Accrual Period. All dollar
amounts calculated hereunder shall be rounded to the nearest penny with one-half
of one penny being rounded down.

            SECTION 1.03 Allocation of Certain Interest Shortfalls.

            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 (net of any Compensating
Interest Payment) and any Relief Act Reductions incurred in respect of the
Mortgage Loans for any Distribution Date shall be allocated first to REMIC 1
Regular Interests LTI-1 and LTI-1PF and then to REMIC 1 Regular Interests LTI-P
and LTI-R 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 Regular
Interest; provided, however, that with respect to the first three Distribution
Dates, such amounts relating to the Initial Mortgage Loans shall be allocated to
REMIC 1 Regular Interest LTI-1 and such amounts relating to the Subsequent
Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT-1PF.

            For purposes of calculating the amount of Uncertificated Accrued
Interest for the REMIC 2 Regular Interests for any Distribution Date, any
Prepayment Interest Shortfalls (to the extent not covered by Compensating
Interest) relating to the Mortgage Loans for any Distribution Date shall be
allocated first to Uncertificated Accrued Interest payable to REMIC 2 Regular
Interest MTI-AA and REMIC 2 Regular Interest MTI-ZZ up to an aggregate amount
equal to the REMIC 2 Interest Loss Allocation Amount, 98% and 2%, respectively,
and thereafter any remaining Prepayment Interest Shortfalls (to the extent not
covered by Compensating Interest) relating to the Mortgage Loans for any
Distribution Date shall be allocated among REMIC 2 Regular Interests MTI-AA,
MTI-A-1, MTI-A-I-1, MTI-M-1, MTI-M-2, MTI-B-1, MTI-B-2, MTI-B-3A, MTI-B-3F,
MTI-ZZ, MTI-R and MTI-P, pro rata based on, and to the extent of, Uncertificated
Accrued Interest, as calculated without application of this sentence.

            For purposes of calculating the amount of Uncertificated Accrued
Interest for the REMIC 3 Regular Interests for any Distribution Date, any
Prepayment Interest Shortfalls (to the extent not covered by Compensating
Interest) relating to the Mortgage Loans for any Distribution Date shall be
allocated in the same priority, and to the same extent, as that allocated to the
Corresponding Certificates.

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<PAGE>

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                         REPRESENTATIONS AND WARRANTIES

            SECTION 2.01 Conveyance of Mortgage Loans.

            (a) The Depositor, concurrently with the execution and delivery
hereof, hereby sells, transfers, assigns, sets over and otherwise conveys to the
Trustee in trust for the benefit of the Certificateholders, without recourse,
all (i) the right, title and interest of the Depositor (which does not include
servicing rights) in and to each Initial Mortgage Loan, including all interest
and principal received or receivable on or with respect to such Initial Mortgage
Loans after the Cut-off Date and all interest and principal payments on the
Initial Mortgage Loans received prior to the Cut-off Date in respect of
installments of interest and principal due thereafter, but not including
payments of principal and interest due and payable on the Initial Mortgage Loans
on or before the Cut-off Date (other than the rights of the Servicer to service
the Mortgage Loans in accordance with this Agreement), (ii) the Depositor's
rights under the Assignment Agreement (iii) any such amounts as may be deposited
into and held by the Trustee in the Pre-Funding Account and the Capitalized
Interest Account and (iv) all proceeds of any of the foregoing.

            (b) In connection with the transfer and assignment set forth in
clause (a) above, the Depositor has delivered or caused to be delivered to the
Trustee or its designated agent, the Custodian, for the benefit of the
Certificateholders, the documents and instruments with respect to each Mortgage
Loan as assigned:

            (i) the original Mortgage Note of the Mortgagor in the name of the
      Trustee or endorsed "Pay to the order of ________________ without
      recourse" and signed in the name of the last named endorsee by an
      authorized officer, together with all intervening endorsements showing a
      complete chain of endorsements from the originator of the related Mortgage
      Loan to the last endorsee or with respect to any Lost Mortgage Note (as
      such term is defined in the Pooling and Servicing Agreement), a lost note
      affidavit stating that the original Mortgage Note was lost or destroyed,
      together with a copy of such Mortgage Note;

            (ii) the original Mortgage bearing evidence that such instruments
      have been recorded in the appropriate jurisdiction where the Mortgaged
      Property is located as determined by DLJMC (or, in lieu of the original of
      the Mortgage or the assignment thereof, a duplicate or conformed copy of
      the Mortgage or the instrument of assignment, if any, together with a
      certificate of receipt from the Seller or the settlement agent who handled
      the closing of the Mortgage Loan, certifying that such copy or copies
      represent true and correct copy(ies) of the original(s) and that such
      original(s) have been or are currently submitted to be recorded in the
      appropriate governmental recording office of the jurisdiction where the
      Mortgaged Property is located) or a certification or receipt of the
      recording authority evidencing the same;

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<PAGE>

            (iii) the original Assignment of Mortgage, in blank, which
      assignment appears to be in form and substance acceptable for recording
      and, in the event that the related Seller acquired the Mortgage Loan in a
      merger, the assignment must be by "[Seller], successor by merger to [name
      of predecessor]", and in the event that the Mortgage Loan was acquired or
      originated by the related Seller while doing business under another name,
      the assignment must be by "[Seller], formerly known as [previous name]";

            (iv) the originals of all intervening Assignments of Mortgage not
      included in (iii) above showing a complete chain of assignment from the
      originator of such Mortgage Loan to the Person assigning the Mortgage to
      the Trustee, including any warehousing assignment, with evidence of
      recording on each such Assignment of Mortgage (or, in lieu of the original
      of any such intervening assignment, a duplicate or conformed copy of such
      intervening assignment together with a certificate of receipt from the
      related Seller or the settlement agent who handled the closing of the
      Mortgage Loan, certifying that such copy or copies represent true and
      correct copy(ies) of the original(s) and that such original(s) have been
      or are currently submitted to be recorded in the appropriate governmental
      recording office of the jurisdiction where the Mortgaged Property is
      located) or a certification or receipt of the recording authority
      evidencing the same;

            (v) an original of any related security agreement (if such item is a
      document separate from the Mortgage) and the originals of any intervening
      assignments thereof showing a complete chain of assignment from the
      originator of the related Mortgage Loan to the last assignee;

            (vi) an original assignment of any related security agreement (if
      such item is a document separate from the Mortgage) executed by the last
      assignee in blank;

            (vii) the originals of any assumption, modification, extension or
      guaranty agreement with evidence of recording thereon, if applicable (or,
      in lieu of the original of any such agreement, a duplicate or conformed
      copy of such agreement together with a certificate of receipt from the
      related Seller or the settlement agent who handled the closing of the
      Mortgage Loan, certifying that such copy(ies) represent true and correct
      copy(ies) of the original(s) and that such original(s) have been or are
      currently submitted to be recorded in the appropriate governmental
      recording office of the jurisdiction where the Mortgaged Property is
      located), or a certification or receipt of the recording authority
      evidencing the same;

            (viii) if the Mortgage Note or Mortgage or any other document or
      instrument relating to the Mortgage Loan has been signed by a person on
      behalf of the Mortgagor, the original power of attorney or other
      instrument that authorized and empowered such person to sign bearing
      evidence that such instrument has been recorded, if so required, in the
      appropriate jurisdiction where the Mortgaged Property is located as
      determined by DLJMC (or, in lieu thereof, a duplicate or conformed copy of
      such instrument, together with a certificate of receipt from the related
      Seller or the settlement agent who handled the closing of the Mortgage
      Loan, certifying that such copy(ies) represent true and complete
      copy(ies)of the original(s) and that such original(s) have been or are
      currently submitted to be recorded in the appropriate governmental
      recording office of the

                                       51
<PAGE>

      jurisdiction where the Mortgaged Property is located) or a certification
      or receipt of the recording authority evidencing the same; and

            (ix) in the case of the First Mortgage Loans, the original mortgage
      title insurance policy, or if such mortgage title insurance policy has not
      yet been issued, an original or copy of a marked-up written commitment or
      a pro forma title insurance policy marked as binding and countersigned by
      the title insurance company or its authorized agent either on its face or
      by an acknowledged closing instruction or escrow letter.

            In the event the Seller delivers to the Trustee certified copies of
any document or instrument set forth in 2.01(b) because of a delay caused by the
public recording office in returning any recorded document, the Seller shall
deliver to the Trustee, within 60 days of the Closing Date, an Officer's
Certificate which shall (i) identify the recorded document, (ii) state that the
recorded document has not been delivered to the Trustee due solely to a delay
caused by the public recording office, and (iii) state the amount of time
generally required by the applicable recording office to record and return a
document submitted for recordation.

            In the event that in connection with any Mortgage Loan the Depositor
cannot deliver (a) the original recorded Mortgage, (b) all interim recorded
assignments or (c) the lender's title policy (together with all riders thereto)
satisfying the requirements set forth above, concurrently with the execution and
delivery hereof because such document or documents have not been returned from
the applicable public recording office in the case of clause (a) or (b) above,
or because the title policy has not been delivered to the Seller or the
Depositor by the applicable title insurer in the case of clause (c) above, the
Depositor shall promptly deliver to the Trustee, in the case of clause (a) or
(b) above, such original Mortgage or such interim assignment, as the case may
be, with evidence of recording indicated thereon upon receipt thereof from the
public recording office, or a copy thereof, certified, if appropriate, by the
relevant recording office and in the case of clause (c) above, if such lender's
title policy is received by the Depositor, upon receipt thereof.

            As promptly as practicable subsequent to such transfer and
assignment, and in any event, within thirty (30) days thereafter, the Trustee
shall (at the Seller's expense) (i) affix the Trustee's name to each Assignment
of Mortgage, as the assignee thereof, (ii) cause such assignment to be in proper
form for recording in the appropriate public office for real property records
within thirty (30) days after receipt thereof and (iii) cause to be delivered
for recording in the appropriate public office for real property records the
assignments of the Mortgages to the Trustee, except that, with respect to any
assignment of a Mortgage as to which the Trustee has not received the
information required to prepare such assignment in recordable form, the
Trustee's obligation to do so and to deliver the same for such recording shall
be as soon as practicable after receipt of such information and in any event
within thirty (30) days after the receipt thereof, and the Trustee need not
cause to be recorded (a) any assignment referred to in clause (iii) above which
relates to a Mortgage Loan in any jurisdiction under the laws of which, as
evidenced by an Opinion of Counsel delivered to the Trustee (at the Depositor's
expense, provided such expense has been previously approved by the Depositor in
writing) within 180 days of the Closing Date, acceptable to the Rating Agencies,
the recordation of such assignment is not necessary to protect the Trustee's and
the Certificateholders' interest in the related Mortgage Loan or (b) if MERS is
identified on the Mortgage or

                                       52
<PAGE>

on a properly recorded assignment of the Mortgage as the mortgagee of record
solely as nominee for the Seller and its successors and assigns.

            In connection with the assignment of any Mortgage Loan registered on
the MERS(R) System, the Depositor further agrees that it will cause, at the
Depositor's own expense, on or prior to the Closing Date, the MERS(R) System to
indicate that such Mortgage Loans have been assigned by the Depositor to the
Trustee in accordance with this Agreement for the benefit of the
Certificateholders by including (or deleting, in the case of Mortgage Loans
which are repurchased in accordance with this Agreement) in such computer files
(a) the code "[IDENTIFY TRUSTEE SPECIFIC CODE]" in the field "[IDENTIFY THE
FIELD NAME FOR TRUSTEE]" which identifies the Trustee and (b) the code
"[IDENTIFY SERIES SPECIFIC CODE NUMBER]" in the field "Pool Field" which
identifies the series of the Certificates issued in connection with such
Mortgage Loans. The Depositor further agrees that it will not, and will not
permit the Servicer to, and the Servicer agrees that it will not, alter the
codes referenced in this paragraph with respect to any Mortgage Loan during the
term of this Agreement unless and until such Mortgage Loan is repurchased in
accordance with the terms of this Agreement.

            (c) The Trustee is authorized to appoint any bank or trust company
approved by the Depositor as Custodian of the documents or instruments referred
to in this Section 2.01, and to enter into a Custodial Agreement for such
purpose and any documents delivered thereunder shall be delivered to the
Custodian and any Officer's Certificates delivered with respect thereto shall be
delivered to the Trustee and the Custodian.

            (d) It is the express intent of the parties to this Agreement that
the conveyance of the Mortgage Loans by the Depositor to the Trustee as provided
in this Section 2.01 be, and be construed as, a sale of the Mortgage Loans by
the Depositor to the Trustee. It is, further, not the intention of the parties
to this Agreement 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. However, in the event that, notwithstanding the intent of the parties
to this Agreement, the Mortgage Loans are held to be the property of the
Depositor, or if for any other reason this Agreement is held or deemed to create
a security interest in the Mortgage Loans then (a) 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; (b) the conveyance provided for in this
Section 2.01 shall be deemed to be a grant by the Depositor to the Trustee for
the benefit of the Certificateholders of a security interest in all of 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 Certificate Account, whether in the form of cash,
instruments, securities or other property; (c) the possession by the Trustee or
any Custodian of such items of property and such other items of property as
constitute instruments, money, negotiable documents or chattel paper shall be
deemed to be "in possession by the secured party" for purposes of perfecting the
security interest pursuant to Section 9-305 of the New York Uniform Commercial
Code; and (d) 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 benefit

                                       53
<PAGE>

of the Certificateholders for the purpose of perfecting such security interest
under applicable law (except that nothing in this clause (e) shall cause any
person to be deemed to be an agent of the Trustee for any purpose other than for
perfection of such security interests unless, and then only to the extent,
expressly appointed and authorized by the Trustee in writing). The Depositor and
the Trustee, upon directions from the Depositor, 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 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.

            (e) The Depositor hereby sells, transfers, assigns, sets over and
otherwise conveys to the Trustee in trust for the benefit of the
Certificateholders, without recourse, all right, title and interest in such
Subsequent Mortgage Loans (which does not include servicing rights), including
all interest and principal due on or with respect to such Subsequent Mortgage
Loans on or after the related Subsequent Transfer Date and all interest and
principal payments on such Subsequent Mortgage Loans received prior to the
Subsequent Transfer Date in respect of installments of interest and principal
due thereafter, but not including principal and interest due on such Subsequent
Mortgage Loans prior to the related Subsequent Transfer Date, any insurance
policies in respect of such Subsequent Mortgage Loans and all proceeds of any of
the foregoing.

            (f) Upon one Business Day's prior written notice to the Trustee, the
Servicer and the Rating Agencies, on any Business Day during the Pre-Funding
Period designated by the Depositor, the Depositor, DLJMC, the Servicer and the
Trustee shall complete, execute and deliver a Subsequent Transfer Agreement so
long as no Rating Agency has provided notice that the execution and delivery of
such Subsequent Transfer Agreement will result in a reduction or withdrawal of
the ratings assigned to the Certificates.

            The transfer of Subsequent Mortgage Loans and the other property and
rights relating to them on a Subsequent Transfer Date is subject to the
satisfaction of each of the following conditions:

            (i) each Subsequent Mortgage Loan conveyed on such Subsequent
      Transfer Date satisfies the representations and warranties applicable to
      it under this Agreement as of the applicable Subsequent Transfer Date;
      provided, however, that with respect to a breach of a representation and
      warranty with respect to a Subsequent Mortgage Loan, the obligation under
      Section 2.03(f) of this Agreement of the Seller to cure, repurchase or
      replace such Subsequent Mortgage Loan shall constitute the sole remedy
      against the Seller respecting such breach available to Certificateholders,
      the Depositor or the Trustee;

            (ii) the Trustee and the Rating Agencies are provided with an
      Opinion of Counsel or Opinions of Counsel, at the expense of the
      Depositor, stating that each REMIC in the Trust Fund is and shall continue
      to qualify as a REMIC following the transfer of the Subsequent Mortgage
      Loans, to be delivered as provided pursuant to Section 2.01(g);

                                       54
<PAGE>

            (iii) the Rating Agencies and the Trustee are provided with an
      Opinion of Counsel or Opinions of Counsel, at the expense of the
      Depositor, confirming that the transfer of the Subsequent Mortgage Loans
      conveyed on such Subsequent Transfer Date is a true sale, to be delivered
      as provided pursuant to Section 2.01(g);

            (iv) the execution and delivery of such Subsequent Transfer
      Agreement or conveyance of the related Subsequent Mortgage Loans does not
      result in a reduction or withdrawal of any ratings assigned to the
      Certificates by the Rating Agencies;

            (v) no Subsequent Mortgage Loan conveyed on such Subsequent Transfer
      Date is 30 or more days contractually delinquent as of such date;

            (vi) the remaining term to stated maturity of such Subsequent
      Mortgage Loan does not exceed 30 years for fully amortizing loans or 15
      years for balloon loans;

            (vii) such Subsequent Mortgage Loan does not have a Net Mortgage
      Rate less than 5.22% per annum;

            (viii) the Depositor shall have deposited in the Collection Account
      all principal and interest collected with respect to the related
      Subsequent Mortgage Loans on or after the related Subsequent Transfer
      Date;

            (ix) such Subsequent Mortgage Loan does not have a Combined
      Loan-to-Value Ratio greater than 100.00%;

            (x) such Subsequent Mortgage Loan has a principal balance not
      greater than $399,620;

            (xi) no Subsequent Mortgage Loan shall have a final maturity date
      after July 1, 2034;

            (xii) such Subsequent Mortgage Loan is secured by a first or second
      lien;

            (xiii) such Subsequent Mortgage Loan is otherwise acceptable to the
      Rating Agencies;

            (xiv) [reserved];

            (xv) following the conveyance of such Subsequent Mortgage Loans on
      such Subsequent Transfer Date the characteristics of the Mortgage Loans
      (based on the Initial Mortgage Loans as of the Cut-off Date and the
      Subsequent Mortgage Loans as of their related Subsequent Transfer Date)
      will be as follows:

            A. a weighted average Mortgage Rate of at least 9.15% per annum;

            B. a weighted average remaining term to stated maturity of less than
      215 months;

                                       55
<PAGE>

            C. a weighted average Combined Loan-to-Value Ratio of not more than
      92.00%;

            D. a weighted average credit score of at least 698;

            E. no more than 70.00% of the Mortgage Loans by aggregate Cut-off
      Date Principal Balance are balloon loans;

            F. no more than 46.62% of the Mortgage Loans by aggregate Cut-off
      Date Principal Balance are concentrated in one state; and

            G. no more than 8.92% of the Mortgage Loans by aggregate Cut-off
      Date Principal Balance relate to non-owner occupied properties;

            (xvi) neither the Seller nor the Depositor shall be insolvent or
      shall be rendered insolvent as a result of such transfer;

            (xvii) no Event of Default has occurred hereunder; and

            (xviii) the Depositor shall have delivered to the Trustee an
      Officer's Certificate confirming the satisfaction of each of these
      conditions precedent.

            (g) Upon (1) delivery to the Trustee by the Depositor of the
Opinions of Counsel referred to in Sections 2.01(f)(ii) and (iii), (2) delivery
to the Trustee by the Depositor of a revised Mortgage Loan Schedule reflecting
the Subsequent Mortgage Loans conveyed on such Subsequent Transfer Date and the
related Subsequent Mortgage Loans and (3) delivery to the Trustee by the
Depositor of an Officer's Certificate confirming the satisfaction of each of the
conditions precedent set forth in Section 2.01(f), the Trustee shall remit to
the Depositor the Aggregate Subsequent Transfer Amount related to the Subsequent
Mortgage Loans transferred by the Depositor on such Subsequent Transfer Date
from funds in the Pre-Funding Account.

            The Trustee shall not be required to investigate or otherwise verify
compliance with the conditions set forth in the preceding paragraph, except for
its own receipt of documents specified above, and shall be entitled to rely on
the required Officer's Certificate.

            SECTION 2.02 Acceptance by the Trustee.

            The Trustee acknowledges receipt by the Custodian of the documents
identified in the Initial Certification in the form annexed hereto as Exhibit G
and declares that the Custodian on its behalf hold and will hold the documents
delivered to the Custodian constituting the Mortgage Files, and that it or the
Custodian holds or will hold such other assets as are included in the Trust
Fund, in trust for the exclusive use and benefit of all present and future
Certificateholders. The Trustee acknowledges that it will maintain possession
through the Custodian of the Mortgage Notes in the State of Texas or the State
of Illinois, as directed by the Seller, unless otherwise permitted by the Rating
Agencies.

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<PAGE>

            The Custodian is required under the Custodial Agreement to execute
and deliver on the Closing Date to the Depositor, the Seller, the Trustee and
the Servicer an Initial Certification in the form annexed hereto as Exhibit G.
Based on its review and examination, and only as to the documents identified in
such Initial Certification, pursuant to the Custodial Agreement, the Custodian
will acknowledge that such documents appear regular on their face and relate to
such Mortgage Loan. Neither the Trustee nor the Custodian shall be under any
duty or obligation to inspect, review or examine said documents, instruments,
certificates or other papers to determine that the same are genuine, enforceable
or appropriate for the represented purpose or that they have actually been
recorded in the real estate records or that they are other than what they
purport to be on their face.

            Not later than 90 days after the Closing Date, the Custodian is
required to deliver to the Depositor, the Seller, the Trustee and the Servicer a
Final Certification in the form annexed hereto as Exhibit H, with any applicable
exceptions noted thereon.

            If, in the course of such review, the Custodian finds any document
constituting a part of a Mortgage File which does not meet the requirements of
Section 2.01, pursuant to the Custodial Agreement, the Custodian will list such
as an exception in the Final Certification; provided, however, that neither the
Trustee nor the Custodian shall make any determination as to whether (i) any
endorsement is sufficient to transfer all right, title and interest of the party
so endorsing, as noteholder or assignee thereof, in and to that Mortgage Note or
(ii) any assignment is in recordable form or is sufficient to effect the
assignment of and transfer to the assignee thereof under the mortgage to which
the assignment relates.

            The Seller shall promptly correct or cure such defect within 120
days from the date it was so notified of such defect and, if the Seller does not
correct or cure such defect within such period and such defect materially and
adversely affects the interests of the Certificateholders in the related
Mortgage Loan, the Seller shall either (a) substitute for the related Mortgage
Loan a Qualified Substitute Mortgage Loan, which substitution shall be
accomplished in the manner and subject to the conditions set forth in Section
2.03, or (b) purchase such Mortgage Loan from the Trustee within 120 days from
the date the Seller was notified of such defect in writing at the Repurchase
Price of such Mortgage Loan; provided, however, that in no event shall such
substitution or repurchase occur more than 540 days from the Closing Date,
except that if the substitution or repurchase of a Mortgage Loan pursuant to
this provision is required by reason of a delay in delivery of any documents by
the appropriate recording office, then such substitution or repurchase shall
occur within 720 days from the Closing Date; and further provided, that the
Seller shall have no liability for recording any Assignment of Mortgage in favor
of the Trustee or for the Trustee's failure to record such Assignment of
Mortgage, and the Seller shall not be obligated to repurchase or cure any
Mortgage Loan solely as a result of the Trustee's failure to record such
Assignment of Mortgage. The Trustee shall deliver written notice to each Rating
Agency within 360 days from the Closing Date indicating each Mortgage Loan (a)
the Assignment of Mortgage which has not been returned by the appropriate
recording office or (b) as to which there is a dispute as to location or status
of such Mortgage Loan. Such notice shall be delivered every 90 days thereafter
until the Assignment of Mortgage for the related Mortgage Loan is returned to
the Trustee or the dispute as to location or status has been resolved. Any such
substitution pursuant to (a) above shall not be effected prior to the delivery
to the Trustee of the Opinion of Counsel required by Section 2.05 hereof, if
any, and any substitution pursuant to (a) above shall not be effected prior to
the additional delivery to the Trustee of a Request for Release substantially in
the

                                       57
<PAGE>

form of Exhibit M. No substitution is permitted to be made in any calendar month
after the Determination Date for such month. The Repurchase Price for any such
Mortgage Loan shall be deposited by the Seller in the Certificate Account on or
prior to the Business Day immediately preceding such Distribution Date in the
month following the month of repurchase and, upon receipt of such deposit and
certification with respect thereto in the form of Exhibit M hereto, the Trustee
shall release the related Mortgage File to the Seller and shall execute and
deliver at such entity's request such instruments of transfer or assignment
prepared by such entity, in each case without recourse, as shall be necessary to
vest in such entity, or a designee, the Trustee's interest in any Mortgage Loan
released pursuant hereto. In furtherance of the foregoing, if the Seller is not
a member of MERS and repurchases a Mortgage Loan which is registered on the
MERS(R) System, the Seller, at its own expense and without any right of
reimbursement, shall cause MERS to execute and deliver an assignment of the
Mortgage in recordable form to transfer the Mortgage from MERS to the Seller and
shall cause such Mortgage to be removed from registration on the MERS(R) System
in accordance with MERS' rules and regulations.

            Pursuant to the Custodial Agreement, the Custodian is required to
execute and deliver on the Subsequent Transfer Date to the Depositor, the
Seller, the Trustee and the Servicer an Initial Certification in the form
annexed hereto as Exhibit G. Based on its review and examination, and only as to
the documents identified in such Initial Certification, the Custodian shall
acknowledge that such documents appear regular on their face and relate to such
Subsequent Mortgage Loan. Neither the Trustee nor the Custodian shall be under a
duty or obligation to inspect, review or examine said documents, instruments,
certificates or other papers to determine that the same are genuine, enforceable
or appropriate for the represented purpose or that they have actually been
recorded in the real estate records or that they are other than what they
purport to be on their face.

            Pursuant to the Custodial Agreement, not later than 90 days after
the end of the Pre-Funding Period, the Custodian is required to deliver to the
Depositor, the Seller, the Trustee and the Servicer a Final Certification with
respect to the Subsequent Mortgage Loans in the form annexed hereto as Exhibit H
with any applicable exceptions noted thereon.

            If, in the course of such review of the Mortgage Files relating to
the Subsequent Mortgage Loans, the Custodian finds any document constituting a
part of a Mortgage File which does not meet the requirements of Section 2.01,
pursuant to the Custodial Agreement, the Custodian will be required to list such
as an exception in the Final Certification; provided, however that neither the
Trustee nor the Custodian shall make any determination as to whether (i) any
endorsement is sufficient to transfer all right, title and interest of the party
so endorsing, as noteholder or assignee thereof, in and to that Mortgage Note or
(ii) any assignment is in recordable form or is sufficient to effect the
assignment of and transfer to the assignee thereof under the mortgage to which
the assignment relates. The Seller shall cure any such defect or repurchase or
substitute for any such Mortgage Loan in accordance with Section 2.02(a).

            It is understood and agreed that the obligation of the Seller to
cure, substitute for or to repurchase any Mortgage Loan which does not meet the
requirements of Section 2.01 shall constitute the sole remedy respecting such
defect available to the Trustee, the Depositor and any Certificateholder against
the Seller.

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<PAGE>

            The Trustee shall pay to the Custodian from time to time reasonable
compensation for all services rendered by it hereunder or under the Custodial
Agreement, and the Trustee shall pay or reimburse the Custodian upon its request
for all reasonable expenses, disbursements and advances incurred or made by the
Custodian in accordance with any of the provisions of this Agreement or the
Custodial Agreement, except any such expense, disbursement or advance as may
arise from its negligence or bad faith.

            SECTION 2.03 Representations and Warranties of the Seller and
Servicer.

            (a) The Seller hereby makes the representations and warranties
applicable to it set forth in Schedule II hereto, and by this reference
incorporated herein, to the Depositor and the Trustee, as of the Closing Date,
or if so specified therein, as of the Cut-off Date or such other date as may be
specified.

            (b) Wilshire, in its capacity as Servicer, hereby makes the
representations and warranties applicable to it set forth in Schedule IIIA
hereto, and by this reference incorporated herein, to the Depositor and the
Trustee, as of the Closing Date, or if so specified therein, as of the Cut-off
Date or such other date as may be specified.

            (c) Wilshire, in its capacity as Servicer, will use its reasonable
efforts to become a member of MERS in good standing, and will comply in all
material respects with the rules and procedures of MERS in connection with the
servicing of the Mortgage Loans that are registered with MERS.

            (d) The Seller hereby makes the representations and warranties set
forth in Schedule IV as applicable hereto, and by this reference incorporated
herein, to the Trustee, as of the Closing Date, or the Subsequent Transfer Date,
as applicable, or if so specified therein, as of the Cut-off Date or such other
date as may be specified.

            (e) Upon discovery by any of the parties hereto of a breach of a
representation or warranty made pursuant to Section 2.03(e) that materially and
adversely affects the interests of the Certificateholders in any Mortgage Loan,
the party discovering such breach shall give prompt notice thereof to the other
parties. The Seller hereby covenants that within 120 days of the earlier of its
discovery or its receipt of written notice from any party of a breach of any
representation or warranty made by it pursuant to Section 2.03(e) which
materially and adversely affects the interests of the Certificateholders in any
Mortgage Loan sold by the Seller to the Depositor, it shall cure such breach in
all material respects, and if such breach is not so cured, shall, (i) if such
120-day period expires prior to the second anniversary of the Closing Date,
remove such Mortgage Loan (a "Deleted Mortgage Loan") from the Trust Fund and
substitute in its place a Qualified Substitute Mortgage Loan, in the manner and
subject to the conditions set forth in this Section; or (ii) repurchase the
affected Mortgage Loan from the Trustee at the Repurchase Price in the manner
set forth below; provided, however, that any such substitution pursuant to (i)
above shall not be effected prior to the delivery to the Trustee of the Opinion
of Counsel required by Section 2.05 hereof, if any, and any such substitution
pursuant to (i) above shall not be effected prior to the additional delivery to
the Trustee of a Request for Release substantially in the form of Exhibit M and
the Mortgage File for any such Qualified Substitute Mortgage Loan. The Seller
shall promptly reimburse the Trustee for any actual out-of-pocket expenses
reasonably incurred by the Trustee in respect of enforcing the remedies

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for such breach. With respect to any representation and warranties described in
this Section which are made to the best of a Seller's knowledge if it is
discovered by the Depositor, the Seller or the Trustee that the substance of
such representation and warranty is inaccurate and such inaccuracy materially
and adversely affects the value of the related Mortgage Loan or the interests of
the Certificateholders therein, notwithstanding the Seller's lack of knowledge
with respect to the substance of such representation or warranty, such
inaccuracy shall be deemed a breach of the applicable representation or
warranty.

            With respect to any Qualified Substitute Mortgage Loan or Loans, the
Seller shall deliver to the Trustee for the benefit of the Certificateholders
the Mortgage Note, the Mortgage, the related assignment of the Mortgage, and
such other documents and agreements as are required by Section 2.01(b), with the
Mortgage Note endorsed and the Mortgage assigned as required by Section 2.01. No
substitution is permitted to be made in any calendar month after the
Determination Date for such month. Scheduled Payments due with respect to
Qualified Substitute Mortgage Loans in the month of substitution shall not be
part of the Trust Fund and will be retained by the Seller on the next succeeding
Distribution Date. For the month of substitution, distributions to
Certificateholders will include the monthly payment due on any Deleted Mortgage
Loan for such month and thereafter the Seller shall be entitled to retain all
amounts received in respect of such Deleted Mortgage Loan. The Seller shall
amend the Mortgage Loan Schedule for the benefit of the Certificateholders to
reflect the removal of such Deleted Mortgage Loan and the substitution of the
Qualified Substitute Mortgage Loan or Loans and the Seller shall deliver the
amended Mortgage Loan Schedule to the Trustee. Upon such substitution, the
Qualified Substitute Mortgage Loan or 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 representations and warranties made pursuant to Section
2.03(e) with respect to such Mortgage Loan. Upon any such substitution and the
deposit to the Certificate Account of the amount required to be deposited
therein in connection with such substitution as described in the following
paragraph, the Trustee shall release the Mortgage File held for the benefit of
the Certificateholders relating to such Deleted Mortgage Loan to the Seller and
shall execute and deliver at the Seller's direction such instruments of transfer
or assignment prepared by the Seller, in each case without recourse, as shall be
necessary to vest title in the Seller, or its designee, the Trustee's interest
in any Deleted Mortgage Loan substituted for pursuant to this Section 2.03.

            For any month in which the Seller substitutes one or more Qualified
Substitute Mortgage Loans for one or more Deleted Mortgage Loans, the Trustee
shall determine the amount (if any) by which the aggregate principal balance of
all such Qualified Substitute Mortgage Loans as of the date of substitution is
less than the aggregate Stated Principal Balance of all such Deleted Mortgage
Loans (after application of the scheduled principal portion of the monthly
payments due in the month of substitution). The amount of such shortage (the
"Substitution Adjustment Amount") plus an amount equal to the sum of (i) the
aggregate of any unreimbursed Advances with respect to such Deleted Mortgage
Loans and (ii) any costs and damages actually incurred and paid by or on behalf
of the Trust in connection with any breach of the representation and warranty
set forth in Schedule III (xx) as the result of a violation of a predatory or
abusive lending law applicable to such Mortgage Loan shall be deposited in the
Certificate Account by the Seller on or before the Business Day immediately
preceding the Distribution Date in the month succeeding the calendar month
during which the related Mortgage Loan became required to be repurchased or
replaced hereunder.

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<PAGE>

            In the event that the Seller shall have repurchased a Mortgage Loan,
the Repurchase Price therefor shall be deposited in the Certificate Account on
or before the Business Day immediately preceding the Distribution Date in the
month following the month during which the Seller became obligated hereunder to
repurchase or replace such Mortgage Loan and upon such deposit of the Repurchase
Price, the delivery of the Opinion of Counsel if required by Section 2.05 and
receipt of a Request for Release in the form of Exhibit M hereto, the Trustee
shall release the related Mortgage File held for the benefit of the
Certificateholders to such Person, and the Trustee shall execute and deliver at
such Person's direction such instruments of transfer or assignment prepared by
such Person, in each case without recourse, as shall be necessary to transfer
title from the Trustee. It is understood and agreed that the obligation under
this Agreement of any Person to cure, repurchase or substitute any Mortgage Loan
as to which a breach has occurred and is continuing shall constitute the sole
remedy against such Persons respecting such breach available to
Certificateholders, the Depositor or the Trustee on their behalf.

            The representations and warranties made pursuant to this Section
2.03 shall survive delivery of the respective Mortgage Files to the Trustee for
the benefit of the Certificateholders.

            SECTION 2.04 Representations and Warranties of the Depositor as to
                         the Mortgage Loans.

            The Depositor hereby represents and warrants to the Trustee with
respect to the Mortgage Loans that, as of the Closing Date, assuming good title
has been conveyed to the Depositor, the Depositor had good title to the Mortgage
Loans and Mortgage Notes, and did not encumber the Mortgage Loans during its
period of ownership thereof, other than as contemplated by the Agreement.

            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.

            SECTION 2.05 Delivery of Opinion of Counsel in Connection with
                         Substitutions.

            Notwithstanding any contrary provision of this Agreement, no
substitution pursuant to Section 2.02 shall be made more than 120 days after the
Closing Date unless the Seller delivers to the Trustee an Opinion of Counsel,
which Opinion of Counsel shall not be at the expense of either the Trustee or
the Trust Fund, addressed to the Trustee, to the effect that such substitution
will not (i) result in the imposition of the tax on "prohibited transactions" on
the Trust Fund or contributions after the Startup Date, as defined in Sections
860F(a)(2) and 860G(d) of the Code, respectively, or (ii) cause any REMIC
created hereunder to fail to qualify as a REMIC at any time that any
Certificates are outstanding.

            SECTION 2.06 Execution and Delivery of Certificates.

            The Trustee (or the Custodian) acknowledges receipt of the items
described in Section 2.02 of this Agreement and the documents identified in the
Initial Certification in the form annexed hereto as Exhibit G and, concurrently
with such receipt, has executed and delivered to or upon the order of the
Depositor, the Certificates in authorized denominations evidencing directly or
indirectly the entire ownership of the Trust Fund. The Trustee agrees to hold
the Trust Fund and exercise the rights referred to above for

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<PAGE>

the benefit of all present and future Holders of the Certificates and to perform
the duties set forth in this Agreement to the best of its ability, to the end
that the interests of the Holders of the Certificates may be adequately and
effectively protected.

            SECTION 2.07 REMIC Matters.

            The Preliminary Statement sets forth the designations and "latest
possible maturity date" for federal income tax purposes of all interests created
hereby. The "Startup Day" for purposes of the REMIC Provisions shall be the
Closing Date. The REMIC 1 Regular Interests shall be designated as the "regular
interests" in REMIC 1. The REMIC 2 Regular Interests shall be designated as the
"regular interests" in REMIC 2. The REMIC 3 Regular Interest shall be designated
as the "regular interest" in REMIC 3. The Class A-1, Class A-IO, Class M-1,
Class M-2, Class B-1, Class B-2, Class B-3A, Class B-3F, Class P and Class X-1
Certificates shall be designated as the "regular interests" in REMIC 4. The
Class A-R Certificates and Class A-RL Certificates will represent beneficial
ownership of four residual interests, each of which will constitute the sole
class of residual interests in each of REMIC 1, REMIC 2, REMIC 3 and REMIC 4.
The Trustee shall not permit the creation of any "interests" (within the meaning
of Section 860G of the Code) in REMIC 1, REMIC 2, REMIC 3 or REMIC 4 other than
the Certificates, the REMIC 1 Regular Interests, the REMIC 2 Regular Interests
or the REMIC 3 Regular Interests. The "tax matters person" with respect to each
of REMIC 1, REMIC 2, REMIC 3 and REMIC 4 shall be the Holder of the Class A-R
Certificate and Class A-RL Certificate at any time holding the largest
Percentage Interest thereof in the manner provided under Treasury regulations
section 1.860F-4(d) and Treasury regulations section 301.6231(a)(7)-1. The
fiscal year for each REMIC shall be the calendar year. In addition, the Class
X-1 Certificateholders shall be deemed to have entered into a contractual
arrangement with the Class A-R Certificateholders or Class A-RL
Certificateholders whereby the Class A-R Certificateholders or Class A-RL
Certificateholders agree to pay to the Class X-1 Certificateholders on each
Distribution Date amounts that would, in the absence of such contractual
agreement, be distributable with respect to the residual interest in REMIC 1,
REMIC 2, REMIC 3 and REMIC 4 pursuant to Section 4.02(b)(iv)(I) (which amounts
are expected to be zero).

            SECTION 2.08 Covenants of the Servicer.

            Each respective Servicer hereby covenants to the Depositor and the
Trustee that no written information, certificate of an officer, statement
furnished in writing or written report prepared by the Servicer and delivered to
the Depositor, any affiliate of the Depositor or the Trustee and prepared by the
Servicer pursuant to this Agreement will contain any untrue statement of a
material fact.

            SECTION 2.09 Conveyance of 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 REMIC 1 Regular Interests for the benefit of the Holder of the

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REMIC 2 Regular Interests and the Holders of the Class R-2 Interest. The Trustee
acknowledges receipt of the REMIC 1 Regular Interests (each of which is
uncertificated) 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 Holder of the Class R-2 Interest. 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.

            (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 2 Regular Interests for the benefit of the Holder of the
REMIC 3 Regular Interests and the Holders of the Class R-3 Interest. The Trustee
acknowledges receipt of the REMIC 2 Regular Interests (each of which is
uncertificated) 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 Holder of the Class R-3 Interest. 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.

            (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 3 Regular Interests for the benefit of the Holder of the
Regular Certificates and the Class R-4 Interest. The Trustee acknowledges
receipt of the REMIC 3 Regular Interests (each of which is uncertificated) 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-4 Interest.
The interests evidenced by the Class R-4 Interest, together with the Regular
Certificates, constitute the entire beneficial ownership interest in REMIC 4.

            (d) In exchange for the REMIC 3 Regular Interests and, concurrently
with the assignment to the Trustee thereof, pursuant to the written request of
the Depositor executed by an officer of the Depositor, the Trustee has executed,
authenticated and delivered to or upon the order of the Depositor, the Regular
Certificates in authorized denominations evidencing (together with the Class R-4
Interest) the entire beneficial ownership interest in REMIC 4.

            (e) Concurrently with (i) the assignment and delivery to the Trustee
of REMIC 1 (including the Residual Interest therein represented by the Class
A-RL Certificates) and the acceptance by the Trustee thereof, pursuant to
Section 2.01, Section 2.02 and Section 2.09(a); and (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 2.09(b); and (iii) 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 2.09(c); and (iv) 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 2.09(d) 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 A-RL Certificates and the Class A-R Certificates in
authorized denominations evidencing the Class R-2 Interest, the Class R-3
Interest and the Class R-4 Interest.

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                                   ARTICLE III

                          ADMINISTRATION AND SERVICING
                                OF MORTGAGE LOANS

            SECTION 3.01 Servicer to Service Mortgage Loans.

            For and on behalf of the Certificateholders, the Servicer shall
service and administer the Mortgage Loans in accordance with the terms of this
Agreement and with Accepted Servicing Practices. Notwithstanding anything in
this Agreement, any Servicing Agreement or any Credit Risk Management Agreement
to the contrary, the Servicer shall have no duty or obligation to enforce the
Credit Risk Management Agreement or to supervise, monitor or oversee the
activities of the Credit Risk Manager under the Credit Risk Management Agreement
with respect to any action taken or not taken by the Servicer pursuant to a
recommendation of the Credit Risk Manager. In connection with such servicing and
administration, the Servicer shall have full power and authority, acting alone
and/or through Subservicers as provided in Section 3.02 hereof, to do or cause
to be done any and all things that it may deem necessary or desirable in
connection with such servicing and administration, including but not limited to,
the power and authority, subject to the terms hereof (i) to execute and deliver,
on behalf of the Certificateholders and the Trustee, customary consents or
waivers and other instruments and documents, (ii) to consent to transfers of any
Mortgaged Property and assumptions of the Mortgage Notes and related Mortgages
(but only in the manner provided in this Agreement), (iii) to collect any
Insurance Proceeds and other Liquidation Proceeds, and (iv) to effectuate
foreclosure or other conversion of the ownership of the Mortgaged Property
securing any Mortgage Loan; provided that the Servicer shall not take any action
that is materially inconsistent with or materially prejudices the interests of
the Trust Fund or the Certificateholders in any Mortgage Loan or the rights and
interests of the Depositor, the Trustee or the Certificateholders under this
Agreement unless such action is specifically called for by the terms hereof. The
Trustee will provide a limited power of attorney to the Servicer, in the form of
Exhibit AA hereto, prepared by the Servicer and reasonably acceptable to the
Trustee, to permit the Servicer to act on behalf of the Trustee under this
Agreement. The Servicer hereby indemnifies the Trustee for all costs and
expenses incurred by the Trustee in connection with the negligent or willful
misuse of such power of attorney. The Servicer shall represent and protect the
interests of the Trust Fund in the same manner as it protects its own interests
in mortgage loans in its own portfolio in any claim, proceeding or litigation
regarding a Mortgage Loan. The Servicer further is hereby authorized and
empowered in its own name or in the name of the Subservicer, when the Servicer
or the Subservicer, as the case may be, believes it is appropriate in its best
judgment to register any Mortgage Loan on the MERS(R) System, or cause the
removal from the registration of any Mortgage Loan on the MERS(R) System, to
execute and deliver, on behalf of the Trustee and the Certificateholders or any
of them, any and all instruments of assignment and other comparable instruments
with respect to such assignment or re-recording of a Mortgage in the name of
MERS, solely as nominee for the Trustee and its successors and assigns. Any
reasonable expenses incurred in connection with the actions described in the
preceding sentence or as a result of MERS discontinuing or becoming unable to
continue operations in connection with the MERS(R) System, shall be reimbursable
by the Trust Fund to the Servicer. Notwithstanding the foregoing, subject to
Section 3.05(a), the Servicer shall not make or permit any modification, waiver
or amendment of any Mortgage Loan that would both constitute a sale or exchange
of such Mortgage Loan within the meaning of Section 1001 of the Code and any
proposed, temporary or

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<PAGE>

final regulations promulgated thereunder (other than in connection with a
proposed conveyance or assumption of such Mortgage Loan that is treated as a
Principal Prepayment in Full pursuant to Section 3.10 hereof) which would cause
any of REMIC 1 , REMIC 2, REMIC 3 or REMIC 4 to fail to qualify as a REMIC.
Without limiting the generality of the foregoing, the Servicer, in its own name
or in the name of the Depositor and the Trustee, is hereby authorized and
empowered by the Depositor and the Trustee, when the Servicer believes it
appropriate in its reasonable judgment, to execute and deliver, on behalf of the
Trustee, the Depositor, the Certificateholders or any of them, any and all
instruments of satisfaction or cancellation, or of partial or full release or
discharge and all other comparable instruments, with respect to the Mortgage
Loans, and with respect to the Mortgaged Properties held for the benefit of the
Certificateholders. The Servicer shall prepare and deliver to the Depositor
and/or the Trustee such documents requiring execution and delivery by either or
both of them as are necessary or appropriate to enable the Servicer to service
and administer the Mortgage Loans to the extent that the Servicer is not
permitted to execute and deliver such documents pursuant to the preceding
sentence. Upon receipt of such documents and a written request signed by an
authorized officer, the Depositor and/or the Trustee shall execute such
documents and deliver them to the Servicer.

            In accordance with the standards of the preceding paragraph, the
Servicer shall advance or cause to be advanced funds as necessary for the
purpose of effecting the payment of taxes and assessments on any Mortgaged
Property (to the extent the Servicer has been notified that such taxes or
assessments have not paid by the related Mortgagor or the owner or the servicer
of the related First Mortgage Loan), which advances shall be reimbursable in the
first instance from related collections from the Mortgagors pursuant to Section
3.06, and further as provided in Section 3.08; provided, however, that the
Servicer shall be required to advance only to the extent that such advances, in
the good faith judgment of the Servicer, will be recoverable by the Servicer out
of Insurance Proceeds, Liquidation Proceeds, or otherwise out of the proceeds of
the related Mortgage Loan; and provided, further, that such payments shall be
advanced when the tax, premium or other cost for which payment is intended is
due to the extent the Servicer has been notified that such payment has not been
made at least five (5) Business Days prior to the due date. The costs incurred
by the Servicer, if any, in effecting the timely payments of taxes and
assessments on the Mortgaged Properties and related insurance premiums shall
not, for the purpose of calculating monthly distributions to the
Certificateholders, be added to the Stated Principal Balances of the related
Mortgage Loans, notwithstanding that the terms of such Mortgage Loans so permit.

            Subject to Section 3.16, the Trustee shall execute, at the written
request of the Servicer, and furnish to the Servicer and any Subservicer such
documents as are necessary or appropriate to enable the Servicer or any
Subservicer to carry out their servicing and administrative duties hereunder,
and the Trustee hereby grants to the Servicer a power of attorney to carry out
such duties. The Trustee shall not be liable for the actions of the Servicer or
any Subservicers under such powers of attorney.

            If the Mortgage relating to a Mortgage Loan had a lien senior to the
Mortgage Loan on the related Mortgaged Property as of the Cut-off Date, then the
Servicer, in such capacity, may consent to the refinancing of the prior senior
lien, provided that the following requirements are met:

            (i) the resulting Combined Loan-to-Value Ratio of such Mortgage Loan
      is no higher than the Combined Loan-to-Value Ratio prior to such
      refinancing; and

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<PAGE>

            (ii) the interest rate, or, in the case of an adjustable rate
      existing senior lien, the maximum interest rate, for the loan evidencing
      the refinanced senior lien is no more than 2.0% higher than the interest
      rate or the maximum interest rate, as the case may be, on the loan
      evidencing the existing senior lien immediately prior to the date of such
      refinancing; and

            (iii) the loan evidencing the refinanced senior lien is not subject
      to negative amortization.

            With respect to the Mortgage Loans, the Servicer agrees that, with
respect to the Mortgagors of such Mortgage Loans, the Servicer shall furnish, in
accordance with the Fair Credit Reporting Act and its implementing regulations,
accurate and complete information on its borrower credit files to Equifax,
Experian and Trans Union Credit Information Company on a monthly basis.

            SECTION 3.02 Subservicing; Enforcement of the Obligations of
                         Subservicers.

            (a) The Mortgage Loans may be subserviced by a Subservicer on behalf
of the Servicer in accordance with the servicing provisions of this Agreement,
provided that the Subservicer is an approved Fannie Mae or Freddie Mac
seller/servicer in good standing. The Servicer may perform any of its servicing
responsibilities hereunder or may cause the Subservicer to perform any such
servicing responsibilities on its behalf, but the use by the Servicer of the
Subservicer shall not release the Servicer from any of its obligations hereunder
and the Servicer shall remain responsible hereunder for all acts and omissions
of the Subservicer as fully as if such acts and omissions were those of the
Servicer. The Servicer shall pay all fees and expenses of any Subservicer
engaged by the Servicer from its own funds.

            Notwithstanding the foregoing, the Servicer shall be entitled to
outsource one or more separate servicing functions to a Person (each, an
"Outsourcer") that does not meet the eligibility requirements for a Subservicer,
so long as such outsourcing does not constitute the delegation of the Servicer's
obligation to perform all or substantially all of the servicing of the related
Mortgage Loans to such Outsourcer. In such event, the use by the Servicer of any
such Outsourcer shall not release the Servicer from any of its obligations
hereunder and the Servicer shall remain responsible hereunder for all acts and
omissions of such Outsourcer as fully as if such acts and omissions were those
of the Servicer, and the Servicer shall pay all fees and expenses of the
Outsourcer from the Servicer's own funds.

            (b) At the cost and expense of the Servicer, without any right of
reimbursement from the Depositor, Trustee, the Trust Fund, or the applicable
Collection Account, the Servicer shall be entitled to terminate the rights and
responsibilities of its Subservicer and arrange for any servicing
responsibilities to be performed by a successor Subservicer meeting the
requirements set forth in Section 3.02(a), provided, however, that nothing
contained herein shall be deemed to prevent or prohibit the Servicer, at the
Servicer's option, from electing to service the related Mortgage Loans itself.
In the event that the Servicer's responsibilities and duties under this
Agreement are terminated pursuant to Section 7.01, and if requested to do so by
the Trustee, the Servicer shall at its own cost and expense terminate the rights
and responsibilities of its Subservicer as soon as is reasonably possible. The
Servicer shall pay all fees, expenses or penalties necessary in order to
terminate the rights and responsibilities of its Subservicer from

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<PAGE>

the Servicer's own funds without any right of reimbursement from the Depositor,
Trustee, the Trust Fund, or the Collection Account.

            (c) Notwithstanding any of the provisions of this Agreement relating
to agreements or arrangements between the Servicer and its Subservicer, the
Servicer and its Outsourcer, or any reference herein to actions taken through
the Subservicer, the Outsourcer, or otherwise, no Servicer shall be relieved of
its obligations to the Depositor, Trustee or Certificateholders and shall be
obligated to the same extent and under the same terms and conditions as if it
alone were servicing and administering the related Mortgage Loans. The Servicer
shall be entitled to enter into an agreement with its Subservicer and Outsourcer
for indemnification of the Servicer or Outsourcer, as applicable, by such
Subservicer and nothing contained in this Agreement shall be deemed to limit or
modify such indemnification.

            For purposes of this Agreement, the Servicer shall be deemed to have
received any collections, recoveries or payments with respect to the related
Mortgage Loans that are received by a related Subservicer or Outsourcer, as
applicable, regardless of whether such payments are remitted by the Subservicer
or Outsourcer, as applicable, to the Servicer.

            Any Subservicing Agreement and any other transactions or services
relating to the Mortgage Loans involving a Subservicer or an Outsourcer shall be
deemed to be between the Subservicer or an Outsourcer, and the Servicer alone,
and the Depositor, the Trustee and the other Servicer shall have no obligations,
duties or liabilities with respect to a Subservicer including no obligation,
duty or liability of the Depositor and Trustee or the Trust Fund to pay a
Subservicer's fees and expenses.

            SECTION 3.03 [Reserved].

            SECTION 3.04 Trustee to Act as Servicer.

            (a) In the event that the Servicer shall for any reason no longer be
the Servicer hereunder (including by reason of an Event of Default), the Trustee
or its successor shall thereupon assume all of the rights and obligations of the
Servicer hereunder arising thereafter (except that the Trustee shall not be (i)
liable for losses of the Servicer pursuant to Section 3.09 hereof or any acts or
omissions of the related predecessor Servicer hereunder, (ii) obligated to make
Advances if it is prohibited from doing so by applicable law or (iii) deemed to
have made any representations and warranties of the Servicer hereunder). Any
such assumption shall be subject to Section 7.02 hereof.

            The Servicer shall, upon request of the Trustee, but at the expense
of the Servicer, deliver to the assuming party all documents and records
relating to each Subservicing Agreement or substitute Subservicing Agreement and
the Mortgage Loans then being serviced thereunder and hereunder by the Servicer
and an accounting of amounts collected or held by it and otherwise use its best
efforts to effect the orderly and efficient transfer of the substitute
Subservicing Agreement to the assuming party.

            (b) [reserved]

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<PAGE>

            SECTION 3.05 Collection of Mortgage Loans; Collection Accounts;
                         Certificate Account; Pre-Funding Account; Capitalized
                         Interest Account.

            (a) Continuously from the date hereof until the principal and
interest on all Mortgage Loans have been paid in full or such Mortgage Loans
have become Liquidated Mortgage Loans, the Servicer shall proceed in accordance
with the customary and usual standards of practice of prudent mortgage loan
servicers to collect all payments due under each of the related Mortgage Loans
when the same shall become due and payable to the extent consistent with this
Agreement and, consistent with such standard, with respect to Mortgage Loans for
which the Servicer collects escrow payments, shall ascertain and estimate Escrow
Payments and all other charges that will become due and payable with respect to
the Mortgage Loans and the Mortgaged Properties, to the end that the
installments payable by the Mortgagors will be sufficient to pay such charges as
and when they become due and payable. Consistent with the terms of this
Agreement, the Servicer may also waive, modify or vary any term of any Mortgage
Loan or consent to the postponement of strict compliance with any such term or
in any manner grant indulgence to any Mortgagor if in the Servicer's
determination such waiver, modification, postponement or indulgence is not
materially adverse to the interests of the Certificateholders (taking into
account any estimated Realized Loss that might result absent such action);
provided, however, that the Servicer may not modify materially or permit any
Subservicer to modify any Mortgage Loan, including without limitation any
modification that would change the Mortgage Rate, forgive the payment of any
principal or interest (unless in connection with the liquidation of the related
Mortgage Loan or except in connection with prepayments to the extent that such
reamortization is not inconsistent with the terms of the Mortgage Loan), or
extend the final maturity date of such Mortgage Loan, unless such Mortgage Loan
is in default or, in the judgment of the Servicer, such default is reasonably
foreseeable; and that no such modification shall reduce the interest rate on a
Mortgage Loan below the rate at which the Servicing Fee with respect to such
Mortgage Loan accrues and provided, further, that any such waiver, modification,
postponement or indulgence granted to a Mortgagor by the Servicer in connection
with its servicing of the related First Mortgage Loan shall not be considered
relevant to a determination of whether the Servicer has acted consistently with
the terms and standards of this Agreement, so long as in the Servicer's
determination such action is not materially adverse to the interests of the
Certificateholders. In the event of any such arrangement, the Servicer shall
make Advances on the related Mortgage Loan in accordance with the provisions of
Section 4.01 during the scheduled period in accordance with the amortization
schedule of such Mortgage Loan without modification thereof by reason of such
arrangements. The Servicer shall not be required to institute or join in
litigation with respect to collection of any payment (whether under a Mortgage,
Mortgage Note or otherwise or against any public or governmental authority with
respect to a taking or condemnation) if it reasonably believes that enforcing
the provision of the Mortgage or other instrument pursuant to which such payment
is required is prohibited by applicable law.

            (b) The Servicer shall segregate and hold all funds collected and
received pursuant to a Mortgage Loan separate and apart from any of its own
funds and general assets and shall establish and maintain one or more Collection
Accounts, in the form of time deposit or demand accounts, titled "[Servicer's
name], in trust for the Holders of Credit Suisse First Boston Mortgage
Securities Corp., Home Equity Mortgage Pass-Through Certificates, Series 2004-2"
or, if established and maintained by a Subservicer on behalf of the Servicer,
"[Subservicer's name], in trust for [Servicer's name]" or "[Subservicer's name],
as agent, trustee and/or bailee of principal and interest custodial account for

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[Servicer's name], its successors and assigns, for various owners of interest in
[Servicer's name] mortgage-backed pools". Each Collection Account shall be an
Eligible Account. Any funds deposited in a Collection Account shall at all times
be either invested in Eligible Investments or shall be fully insured to the full
extent permitted under applicable law. Funds deposited in a Collection Account
may be drawn on by the applicable Servicer in accordance with Section 3.08.

            The Servicer shall deposit in the Collection Account within two
Business Days of receipt and retain therein, the following collections remitted
by Subservicers or payments received by the Servicer and payments made by the
Servicer subsequent to the Cut-off Date, other than payments of principal and
interest due on or before the Cut-off Date:

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

            (ii) all payments on account of interest on the Mortgage Loans
      adjusted to the per annum rate equal to the Mortgage Rate reduced by the
      related Servicing Fee Rate;

            (iii) all Liquidation Proceeds on the Mortgage Loans;

            (iv) all Insurance Proceeds on the Mortgage Loans including amounts
      required to be deposited pursuant to Section 3.09 (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
      Section 3.09);

            (v) all Advances made by the Servicer pursuant to Section 4.01;

            (vi) with respect to each Principal Prepayment on the Mortgage
      Loans, the Prepayment Interest Shortfall, if any, for the Prepayment
      Period. The aggregate of such deposits shall be made from the Servicer's
      own funds, without reimbursement therefor, up to a maximum amount per
      month equal to the Compensating Interest Payment, if any, for the Mortgage
      Loans and that Distribution Date;

            (vii) any amounts required to be deposited by the Servicer in
      respect of net monthly income from REO Property pursuant to Section 3.11;
      and

            (viii) any other amounts required to be deposited hereunder
      including all collected Prepayment Charges.

            The foregoing requirements for deposit into each Collection Account
shall be exclusive, it being understood and agreed that, without limiting the
generality of the foregoing, Ancillary Income need not be deposited by the
Servicer into such Collection Account. In addition, notwithstanding the
provisions of this Section 3.05, the Servicer may deduct from amounts received
by it, prior to deposit to the applicable Collection Account, any portion of any
Scheduled Payment representing the applicable Servicing Fee. In the event that
the Servicer shall remit any amount not required to be remitted, it may at any
time withdraw

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or direct the institution maintaining the related Collection Account to withdraw
such amount from such Collection Account, any provision herein to the contrary
notwithstanding. Such withdrawal or direction may be accomplished by delivering
written notice thereof to the Trustee or such other institution maintaining such
Collection Account which describes the amounts deposited in error in such
Collection Account. The Servicer shall maintain adequate records with respect to
all withdrawals made by it pursuant to this Section. All funds deposited in a
Collection Account shall be held in trust for the Certificateholders until
withdrawn in accordance with Section 3.08.

            (c) On or prior to the Closing Date, the Trustee shall establish and
maintain, on behalf of the Certificateholders, the Certificate Account. The
Trustee shall, promptly upon receipt, deposit in the Certificate Account and
retain therein the following:

            (i) the aggregate amount remitted by the Servicer to the Trustee
      pursuant to Section 3.08(viii);

            (ii) any amount deposited by the Trustee pursuant to Section 3.05(e)
      in connection with any losses on Eligible Investments; and

            (iii) any other amounts deposited hereunder which are required to be
      deposited in the Certificate Account.

            In the event that the Servicer shall remit to the Trustee any amount
not required to be remitted, it may at any time direct the Trustee to withdraw
such amount from the Certificate Account, any provision herein to the contrary
notwithstanding. Such direction may be accomplished by delivering an Officer's
Certificate to the Trustee which describes the amounts deposited in error in the
Certificate Account. All funds deposited in the Certificate Account shall be
held by the Trustee in trust for the Certificateholders until disbursed in
accordance with this Agreement or withdrawn in accordance with Section 3.08(b).
In no event shall the Trustee incur liability for withdrawals from the
Certificate Account at the direction of the Servicer.

            (d) Each institution at which a Collection Account, the Certificate
Account or the Pre-Funding Account is maintained shall either hold such funds
on deposit uninvested or shall invest the funds therein as directed in writing
by the Servicer (in the case of a Collection Account), the Trustee (in the case
of the Certificate Account) or the Depositor (in the case of the Pre-Funding
Account), in Eligible Investments, which shall mature not later than (i) in the
case of a Collection Account, the second Business Day immediately preceding the
related Distribution Date and (ii) in the case of the Certificate Account and
the Pre-Funding Account, the Business Day immediately preceding the Distribution
Date and, in each case, shall not be sold or disposed of prior to its maturity.
All income and gain net of any losses realized from any such balances or
investment of funds on deposit in a Collection Account shall be for the benefit
of the Servicer as servicing compensation and shall be remitted to it monthly as
provided herein. The amount of any realized losses in a Collection Account
incurred in any such account in respect of any such investments shall promptly
be deposited by the Servicer in the related Collection Account. The Trustee in
its fiduciary capacity shall not be liable for the amount of any loss incurred
in respect of any investment or lack of investment of funds held in a Collection
Account or the Pre-Funding Account. All income and gain net of

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any losses realized from any such investment of funds on deposit in the
Certificate Account shall be for the benefit of the Trustee as compensation and
shall be remitted to it monthly as provided herein. The amount of any realized
losses in the Certificate Account incurred in any such account in respect of any
such investments shall promptly be deposited by the Trustee in the Certificate
Account. All income and gain net of any losses realized from any such balances
or investment of funds on deposit in the Pre-Funding Account shall be for the
benefit of the Depositor and shall be remitted to it monthly.

            (e) The Servicer shall give notice to the Trustee, the Seller, each
Rating Agency and the Depositor of any proposed change of the location of the
related Collection Account prior to any change thereof. The Trustee shall give
notice to the Servicer, the Seller, each Rating Agency and the Depositor of any
proposed change of the location of the Certificate Account prior to any change
thereof.

            (f) The Trustee shall establish and maintain, on behalf of the
Certificateholders, the Pre-Funding Account. On the Closing Date, the Depositor
shall remit the Pre-Funding Amount to the Trustee for deposit in the Pre-Funding
Account. On each Subsequent Transfer Date, upon satisfaction of the conditions
for such Subsequent Transfer Date set forth in Section 2.01(f), with respect to
the related Subsequent Transfer Agreement, the Trustee shall remit to the
Depositor the applicable Aggregate Subsequent Transfer Amount as payment of the
purchase price for the related Subsequent Mortgage Loans.

            If any funds remain in the Pre-Funding Account on July 25, 2004, to
the extent they represent interest earnings on the amounts originally deposited
into the Pre-Funding Account, the Trustee shall distribute them to the order of
the Depositor. The remaining funds in the Pre-Funding Account shall be
transferred to the Certificate Account to be included as part of principal
distributions to the Class A-1 Certificates, in the manner and priority set
forth herein on the July 2004 Distribution Date.

            (g) The Trustee shall establish and maintain, on behalf of the
Certificateholders, the Capitalized Interest Account. On the Closing Date, the
Depositor shall remit the Capitalized Interest Deposit to the Trustee for
deposit in the Capitalized Interest Account. On the Business Day prior to each
of the May 2004, June 2004 and July 2004 Distribution Dates, the Trustee shall
transfer from each Capitalized Interest Account to the Certificate Account an
amount equal to the Capitalized Interest Requirement for such Distribution Date.
On each of the May 2004 and June 2004 Distribution Dates, the Overfunded
Interest Amount shall be withdrawn from the Capitalized Interest Account and
paid to the Depositor. Any funds remaining in the Capitalized Interest Account
immediately after the July 2004 Distribution Date shall be paid to the
Depositor.

            SECTION 3.06 Establishment of and Deposits to Escrow Accounts;
                         Permitted Withdrawals from Escrow Accounts; Payments of
                         Taxes, Insurance and Other Charges.

            (a) To the extent required by the related Mortgage Note and not
violative of current law, the Servicer shall segregate and hold all funds
collected and received pursuant to a Mortgage Loan constituting Escrow Payments
separate and apart from any of its own funds and general assets and shall

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establish and maintain one or more Escrow Accounts, in the form of time deposit
or demand accounts, titled, "Credit Suisse First Boston Mortgage Securities
Corp., Home Equity Mortgage Pass-Through Certificates, Series 2004-2" or, if
established and maintained by a Subservicer on behalf of the Servicer,
"[Subservicer's name], in trust for [Servicer's name]" or "[Subservicer's name],
as agent, trustee and/or bailee of taxes and insurance custodial account for
[Servicer's name], its successors and assigns, for various owners of interest in
[Servicer's name] mortgage-backed pools". The Escrow Accounts shall be Eligible
Accounts. Funds deposited in the Escrow Account may be drawn on by the Servicer
in accordance with Section 3.06(b). The creation of any Escrow Account shall be
evidenced by a certification in the form of Exhibit P-1 hereto, in the case of
an account established with the Servicer, or by a letter agreement in the form
of Exhibit P-2 hereto, in the case of an account held by a depository other than
the Servicer. A copy of such certification shall be furnished to the Depositor
and Trustee.

            (b) The Servicer shall deposit in its Escrow Account or Accounts on
a daily basis within one Business Day of receipt and retain therein:

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

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

            The Servicer shall make withdrawals from the Escrow Account only to
effect such payments as are required under this Agreement, as set forth in
Section 3.06(c). The Servicer shall be entitled to retain any interest paid on
funds deposited in the related Escrow Account by the depository institution,
other than interest on escrowed funds required by law to be paid to the
Mortgagor. To the extent required by law, the applicable Servicer shall pay
interest on escrowed funds to the Mortgagor notwithstanding that the Escrow
Account may be non-interest bearing or that interest paid thereon is
insufficient for such purposes.

            (c) Withdrawals from the Escrow Account or Accounts may be made by
the Servicer only:

            (i) to effect timely payments of ground rents, taxes, assessments,
      water rates, mortgage insurance premiums, condominium charges, fire and
      hazard insurance premiums or other items constituting Escrow Payments for
      the related Mortgage;

            (ii) to reimburse the Servicer for any Servicing Advances made by
      the Servicer pursuant to this Agreement with respect to a related Mortgage
      Loan, but only from amounts received on the related Mortgage Loan which
      represent late collections of Escrow Payments thereunder;

            (iii) to refund to any Mortgagor any funds found to be in excess of
      the amounts required under the terms of the related Mortgage Loan;

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            (iv) for transfer to the related Collection Account to reduce the
      principal balance of the related Mortgage Loan in accordance with the
      terms of the related Mortgage and Mortgage Note;

            (v) for application to restore or repair of the related Mortgaged
      Property in accordance with the procedures outlined in Section 3.09;

            (vi) to pay to the Servicer, or any Mortgagor to the extent required
      by law, any interest paid on the funds deposited in such Escrow Account;
      and

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

            (d) No later than the Closing Date, the Servicer shall establish and
maintain a sub-account of the Collection Account titled "[Servicer's name],
Simple Interest Excess Sub-Account in trust for the Holders of Credit Suisse
First Boston Mortgage Securities Corp., Home Equity Mortgage Pass-Through
Certificates, Series 2004-2 ". The Servicer shall, on each Determination Date
transfer from the Collection Account to the Simple Interest Excess Sub-Account
all Net Simple Interest Excess, if any, pursuant to Section 3.08(ix), and shall
maintain a record of all such deposits.

            (e) The Servicer shall withdraw amounts on deposit in the Simple
Interest Excess Sub-Account on each Determination Date for deposit to the
Certificate Account in an amount equal to the lesser of (i) the amount on
deposit therein, and (ii) the Net Simple Interest Shortfall for such
Distribution Date.

            (f) The Servicer shall remit to the Trustee which shall thereupon
distribute to the Class X-1 Certificateholder 90% of the balance in the Simple
Interest Excess Sub-Account on the Distribution Date each year occurring in
December, commencing in December 2004. Such distributions shall be deemed to be
made on a first-in, first-out basis. In addition, the Servicer shall clear and
terminate the Simple Interest Excess Sub-Account upon the termination of this
Agreement and retain any funds remaining therein.

            (g) Amounts on deposit in the Simple Interest Excess Sub-Account may
be invested in Eligible Investments. All income and gain net of any losses
realized from any such balances or investment of funds on deposit in the Simple
Interest Excess Sub-Account shall be for the benefit of the Servicer as
servicing compensation and shall be remitted to it monthly. The amount of any
net investment losses in the Simple Interest Excess Sub-Account shall promptly
be deposited by the Servicer in such Simple Interest Excess Sub-Account.

            SECTION 3.07 Access to Certain Documentation and Information
                         Regarding the Mortgage Loans; Inspections.

            (a) The Servicer shall afford the Depositor and the Trustee
reasonable access to all records and documentation regarding the Mortgage Loans
and all accounts, insurance information and

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other matters relating to this Agreement, such access being afforded without
charge, but only upon reasonable request and during normal business hours at the
office designated by the Servicer.

            (b) The Servicer shall inspect the Mortgaged Properties as often as
deemed necessary by the Servicer in the Servicer's sole discretion, to assure
itself that the value of such Mortgaged Property is being preserved. In
addition, if any Mortgage Loan is more than 60 days delinquent, the Servicer
shall conduct subsequent inspections in accordance with Accepted Servicing
Practices or as may be required by the primary mortgage guaranty insurer. The
Servicer shall keep a written or electronic report of each such inspection.

            SECTION 3.08 Permitted Withdrawals from the Collection Accounts and
                         Certificate Account.

            The Servicer may (and in the case of clause (viii) below, shall)
from time to time make withdrawals from the related Collection Account for the
following purposes:

            (i) to pay to the Servicer (to the extent not previously retained by
      the Servicer) the servicing compensation to which it is entitled pursuant
      to Section 3.14, and to pay to the Servicer, as additional servicing
      compensation, earnings on or investment income with respect to funds in or
      credited to such Collection Account;

            (ii) to reimburse the Servicer for unreimbursed Advances made by it,
      such right of reimbursement pursuant to this subclause (ii) being limited
      to amounts received on the Mortgage Loan(s) in respect of which any such
      Advance was made (including without limitation, late recoveries of
      payments, Liquidation Proceeds and Insurance Proceeds, amounts
      representing proceeds of other insurance policies, if any, covering the
      related Mortgaged Property, rental and other income from REO Property and
      proceeds of any purchase or repurchase of the related Mortgage Loan, to
      the extent received by the Servicer);

            (iii) to reimburse the Servicer for any Nonrecoverable Advance
      previously made from collections or proceeds of any of the Mortgage Loans;

            (iv) to reimburse the Servicer for (A) unreimbursed Servicing
      Advances, the Servicer's right to reimbursement pursuant to this clause
      (A) with respect to any Mortgage Loan being limited to amounts received on
      such Mortgage Loan which represent late payments of principal and/or
      interest (including, without limitation, Liquidation Proceeds and
      Insurance Proceeds, amounts representing proceeds of other insurance
      policies, if any, covering the related Mortgaged Property, rental and
      other income from REO Property and proceeds of any purchase or repurchase
      of the related Mortgage Loan with respect to such Mortgage Loan)
      respecting which any such advance was made, (B) for unpaid Servicing Fees
      as provided in Section 3.11;

            (v) to pay to the purchaser, with respect to each Mortgage Loan or
      property acquired in respect thereof that has been purchased pursuant to
      Section 2.02, 2.03 or 3.11, all amounts received thereon after the date of
      such purchase;

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            (vi) to reimburse the Servicer or the Depositor for expenses
      incurred by any of them and reimbursable pursuant to Section 6.03 hereof;

            (vii) to withdraw any amount deposited in such Collection Account
      and not required to be deposited therein;

            (viii) on or prior to the Servicer Cash Remittance Date, to withdraw
      an amount equal to the Available Funds plus any related Expense Fees
      (other than the Servicing Fee) for such Distribution Date and any
      Prepayment Charges received in respect of the Mortgage Loans, subject to
      the collection of funds included in the definition of "Available Funds"
      and remit such amount to the Trustee for deposit in the Certificate
      Account;

            (ix) to deposit in the Simple Interest Excess Sub-Account any amount
      required to be deposited therein pursuant to Section 3.06(d); and

            (x) to clear and terminate such Collection Account upon termination
      of this Agreement pursuant to Section 9.01 hereof.

            The Servicer shall keep and maintain separate accounting, on a
Mortgage Loan basis for the purpose of justifying any withdrawal from the
Collection Account pursuant to such subclauses (i), (ii), (iv) and (v). Prior to
making any withdrawal from a Collection Account pursuant to subclause (iii), the
Servicer shall deliver to the Trustee a certificate of a Servicing Officer
indicating the amount of any previous Advance determined by the Servicer to be a
Nonrecoverable Advance and identifying the related Mortgage Loans(s), and their
respective portions of such Nonrecoverable Advance.

            The Trustee shall withdraw funds from the Certificate Account for
distributions to the Certificateholders and the Credit Risk Manager, if
applicable, in the manner specified in this Agreement (and to withhold from the
amounts so withdrawn, the amount of any taxes that it is authorized to withhold
pursuant to the last paragraph of Section 8.11). In addition, the Trustee may
from time to time make withdrawals from the Certificate Account for the
following purposes:

            (i) to pay to itself the Trustee Fee and any investment income
      earned for the related Distribution Date;

            (ii) to withdraw and return to the applicable Servicer for deposit
      to the Collection Account any amount deposited in the Certificate Account
      and not required to be deposited therein; and

            (iii) to clear and terminate the Certificate Account upon
      termination of this Agreement pursuant to Section 9.01 hereof.

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            SECTION 3.09 Maintenance of Hazard Insurance and Mortgage Impairment
                         Insurance; Claims; Restoration of Mortgaged Property.

            The Servicer shall obtain and maintain a blanket policy insuring
against losses arising from fire and hazards covered under extended coverage on
all of the related Mortgage Loans, which policy shall provide coverage in an
amount equal to the amount at least equal to the lesser of (i) the maximum
insurable value of the improvements securing such Mortgage Loan and (ii) the
greater of (A) the outstanding principal balance of the Mortgage Loan and (B) an
amount such that the proceeds of such policy shall be sufficient to prevent the
Mortgagor and/or the mortgagee from becoming co-insurer. Any amounts collected
by the Servicer under any such policy relating to a Mortgage Loan (for the
avoidance of doubt, remaining after application of any such amounts to any
related First Mortgage Loan) shall be deposited in the related Collection
Account subject to withdrawal pursuant to Section 3.08. Such policy may contain
a deductible clause, in which case, in the event that there shall not have been
maintained on the related Mortgaged Property a standard hazard insurance policy,
and there shall have been a loss which would have been covered by such policy,
the Servicer shall deposit in the related Collection Account at the time of such
loss the amount not otherwise payable under the blanket policy because of such
deductible clause, such amount to be deposited from the Servicer's funds,
without reimbursement therefor. Upon request of the Trustee, the 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 30 days' prior written notice to the
Trustee. In connection with its activities as Servicer of the Mortgage Loans,
the Servicer agrees to present, on behalf of itself, the Depositor, and the
Trustee for the benefit of the Certificateholders, claims under any such blanket
policy.

            Pursuant to Section 3.05, any amounts collected by the Servicer
under any such policies (other than amounts to be deposited in the related
Escrow Account and applied to the restoration or repair of the related Mortgaged
Property, or property acquired in liquidation of the Mortgage Loan, or to be
released to the Mortgagor, in accordance with the Servicer's normal servicing
procedures) shall be deposited in the related Collection Account (subject to
withdrawal pursuant to Section 3.08). Any costs incurred by the Servicer in
maintaining such insurance shall be recoverable by the Servicer as a Servicing
Advance out of payments by the related Mortgagor or out of Insurance Proceeds or
Liquidation Proceeds. Notwithstanding anything to the contrary in this
paragraph, the Servicer shall be required to pay the costs of maintaining any
insurance contemplated by this Section 3.09 only to the extent that such
advances, in the good faith judgment of the Servicer, will be recoverable.

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

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

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<PAGE>

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

            (iii) pending repairs or restoration, the Servicer shall place the
      Insurance Proceeds in the related Escrow Account, if any.

            If the Trustee is named as an additional loss payee, the Servicer is
hereby empowered to endorse any loss draft issued in respect of such a claim in
the name of the Trustee.

            SECTION 3.10 Enforcement of Due-on-Sale Clauses; Assumption
                         Agreements.

            The Servicer shall use its best efforts to enforce any "due-on-sale"
provision contained in any related Mortgage or Mortgage Note and to deny
assumption by the person to whom the Mortgaged Property has been or is about to
be sold whether by absolute conveyance or by contract of sale, and whether or
not the Mortgagor remains liable on the Mortgage and the Mortgage Note. When the
Mortgaged Property has been conveyed by the Mortgagor, the Servicer shall, to
the extent it has knowledge of such conveyance, exercise its rights to
accelerate the maturity of such Mortgage Loan under the "due-on-sale" clause
applicable thereto, provided, however, that the Servicer shall not exercise such
rights if prohibited by law from doing so or if the exercise of such rights
would impair or threaten to impair any recovery under the related Primary
Insurance Policy, if any or, if consistent with Accepted Servicing Practices,
the Servicer believes the collections and other recoveries in respect of such
Mortgage Loans could reasonably be expected to be maximized if the Mortgage Loan
were not accelerated.

            If the 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 last sentence of the preceding paragraph apply, the Servicer shall
enter into (i) an assumption and modification agreement with the person to whom
such property has been conveyed, pursuant to which such person becomes liable
under the Mortgage Note and the original Mortgagor remains liable thereon or
(ii) in the event the Servicer is unable under applicable law to require that
the original Mortgagor remain liable under the Mortgage Note and the Servicer
has the prior consent of the primary mortgage guaranty insurer, a substitution
of liability agreement with the purchaser of the Mortgaged Property pursuant to
which the original Mortgagor is released from liability and the purchaser of the
Mortgaged Property is substituted as Mortgagor and becomes liable under the
Mortgage Note. Notwithstanding the foregoing, the Servicer shall not be deemed
to be in default under this Section by reason of any transfer or assumption
which the Servicer reasonably believes it is restricted by law from preventing,
for any reason whatsoever. In connection with any such assumption, no material
term of the Mortgage Note, including without limitation, the Mortgage Rate borne
by the related Mortgage Note, the term of the Mortgage Loan or the outstanding
principal amount of the Mortgage Loan shall be changed.

            Subject to the Servicer's duty to enforce any due-on-sale clause to
the extent set forth in this Section 3.10, in any case in which a Mortgaged
Property has been conveyed to a Person by a Mortgagor, and such Person is to
enter into an assumption agreement or modification agreement or supplement to
the Mortgage Note or Mortgage that requires the signature of the Trustee, or if
an instrument of release signed by the Trustee is required releasing the
Mortgagor from liability on the Mortgage Loan,

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<PAGE>

the Servicer shall prepare and deliver or cause to be prepared and delivered to
the Trustee for signature and shall direct, in writing, the Trustee to execute
the assumption agreement with the Person to whom the Mortgaged Property is to be
conveyed and such modification agreement or supplement to the Mortgage Note or
Mortgage or other instruments as are reasonable or necessary to carry out the
terms of the Mortgage Note or Mortgage or otherwise to comply with any
applicable laws regarding assumptions or the transfer of the Mortgaged Property
to such Person. In connection with any such assumption, no material term of the
Mortgage Note may be changed. Together with each such substitution, assumption
or other agreement or instrument delivered to the Trustee for execution by it,
the Servicer shall deliver an Officer's Certificate signed by a Servicing
Officer stating that the requirements of this Section 3.10 have been met in
connection therewith. The Servicer shall notify the Trustee that any such
substitution or assumption agreement has been completed by forwarding to the
Trustee the original of such substitution or assumption agreement, which in the
case of the original 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. Any fee
collected by the Servicer for entering into an assumption, modification or
substitution of liability agreement will be retained by the Servicer as
additional servicing compensation.

            SECTION 3.11 Realization Upon Defaulted Mortgage Loans; Repurchase
                         of Certain Mortgage Loans.

            (a) (i) The Servicer shall use reasonable efforts to foreclose upon
or otherwise comparably convert the ownership of properties securing such of the
related Mortgage Loans as come into and continue in default and as to which no
satisfactory arrangements can be made for collection of delinquent payments.
With respect to such of the Mortgage Loans as come into and continue in default,
the Servicer will decide whether to (i) foreclose upon the Mortgaged Properties
securing such Mortgage Loans, (ii) write off the unpaid principal balance of the
Mortgage Loans as bad debt, (iii) take a deed in lieu of foreclosure, (iv)
accept a short sale (a payoff of the Mortgage Loan for an amount less than the
total amount contractually owed in order to facilitate a sale of the Mortgaged
Property by the Mortgagor) or permit a short refinancing (a payoff of the
Mortgage Loan for an amount less than the total amount contractually owed in
order to facilitate refinancing transactions by the Mortgagor not involving a
sale of the Mortgaged Property), (v) arrange for a repayment plan, or (vi) agree
to a modification in accordance with this Agreement. In connection with such
decision, the Servicer shall take such action as (i) the Servicer would take
under similar circumstances with respect to a similar mortgage loan held for its
own account for investment, (ii) shall be consistent with Accepted Servicing
Practices, (iii) the Servicer shall determine consistently with Accepted
Servicing Practices to be in the best interest of the Trustee and
Certificateholders, provided, that actions taken by the Servicer in connection
with its servicing of the related First Mortgage Loan shall not be considered
relevant to a determination of whether the Servicer has met the standard set
forth in this clause (iii), so long as so long as in the Servicer's
determination such action is not materially adverse to the interests of the
Certificateholders and (iv) is consistent with the requirements of the insurer
under any Required Insurance Policy; provided, however, that the Servicer shall
not be required to expend its own funds in connection with any foreclosure or
towards the restoration of any property unless it shall determine in its sole
discretion (i) that such restoration and/or foreclosure will increase the
proceeds of liquidation of the related Mortgage Loan after reimbursement to
itself of such expenses and (ii) that such expenses will be recoverable to it
through Liquidation Proceeds (respecting

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which it shall have priority for purposes of withdrawals from the related
Collection Account). The Servicer shall be responsible for all other costs and
expenses incurred by it in any such proceedings; provided, however, that it
shall be entitled to reimbursement thereof from the liquidation proceeds with
respect to the related Mortgaged Property, as provided in the definition of
Liquidation Proceeds and as provided in Section 3.08(iv)(A).

            (ii) Notwithstanding anything to the contrary contained in this
Agreement, with respect to any Mortgage Loan that is one hundred twenty (120)
days delinquent, the Servicer shall obtain a broker's price opinion with respect
to the related Mortgaged Property and shall use all reasonable efforts to obtain
a total indebtedness balance (including, but not limited to, unpaid principal,
interest, escrows, taxes and expenses) for any related senior lien. The cost of
obtaining any such broker's price opinion shall be reimbursable to the Servicer
as a Servicing Advance pursuant to Section 3.08(iii) or (iv). After obtaining
the related broker's price opinion, the Servicer will determine whether any
Significant Net Recovery is possible through foreclosure proceedings or other
liquidation of the related Mortgaged Property. If the Servicer determines that
(x) no Significant Net Recovery is possible or (y) the potential Net Recoveries
are anticipated to be an amount, determined by the Servicer in its good faith
judgment and in light of other mitigating circumstances, that is insufficient to
warrant proceeding through foreclosure or other liquidation of the related
Mortgaged Property, it may, at its discretion, charge off such delinquent
Mortgage Loan in accordance with subsections (a)(iii) and (a)(iv) below.

            (iii) If the Servicer determines based on the broker's price opinion
obtained under paragraph (a)(ii) above and other relevant considerations that
(x) no Significant Net Recovery is possible through foreclosure proceedings or
other liquidation of the related Mortgaged Property or (y) the potential Net
Recoveries are anticipated to be an amount, determined by the Servicer in its
good faith judgment and in light of other mitigating circumstances, that is
insufficient to warrant proceeding through foreclosure or other liquidation of
the related Mortgaged Property, it will be obligated to charge off the related
Mortgage Loan at the time such Mortgage Loan becomes 180 days delinquent. Once a
Mortgage Loan has been charged off, the Servicer will discontinue making
Advances, the Servicer will not be entitled to any additional servicing
compensation (except as described in paragraphs(a)(ii) or (a)(iv) of this
Section 3.11), the Charged Off Loan will give rise to a Realized Loss, and the
Servicer will follow the procedures described in paragraph (a)(iv) below. If the
Servicer determines that (x) a Significant Net Recovery is possible through
foreclosure proceedings or other liquidation of the Mortgaged Property and (y)
the potential Net Recoveries are anticipated to be an amount, determined by the
Servicer in its good faith judgment and in light of other mitigating
circumstances, that is sufficient to warrant proceeding through foreclosure or
other liquidation of the related Mortgaged Property, the Servicer may continue
to make Advances or Servicing Advances on the related Mortgage Loan that has
become 180 days delinquent and will notify the Credit Risk Manager of that
decision.

            (iv) Any Mortgage Loan that becomes a Charged Off Loan may continue
to be serviced by Wilshire for the Certificateholders using Wilshire Special
Servicing. Wilshire will accrue, but not be entitled to any Servicing Fees and
reimbursement of expenses in connection with such Charged Off Loans, except to
the extent of funds available from the aggregate amount of recoveries on all
Charged Off Loans. Such aggregate recovery amounts on Charged Off Loans shall be
paid to Wilshire first, as reimbursement of any outstanding and unpaid expenses,
and second, as any accrued and unpaid Servicing

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Fees. Wilshire will only be entitled to previously accrued Servicing Fees and
expenses on any such Charged Off Loans. Wilshire will not be entitled to receive
any future unaccrued Servicing Fees or expenses from collections on such Charged
Off Loans. Any Charged Off Loan serviced by Wilshire using Wilshire Special
Servicing shall be so serviced until the Release Date described below. Any Net
Recoveries on such Charged Off Loans received prior to the Release Date will be
included in Available Funds.

            On the date (the "Release Date") which is no more than six months
after the date on which Wilshire begins servicing any Charged Off Loans using
Wilshire Special Servicing, unless specific Net Recoveries are anticipated by
Wilshire on a particular Charged Off Loan (in which case the Release Date will
be delayed until all such specific anticipated Net Recoveries are received),
such Charged Off Loan will be released from the Trust Fund, will no longer be an
asset of any REMIC, and will be transferred to the Class X-2 Certificateholders,
without recourse, and thereafter (i) those Holders will be entitled to any
amounts subsequently received in respect of any such Released Loans, (ii) the
Majority in Interest Class X-2 Certificateholder may designate the Servicer to
service any such Released Loan and (iii) the Majority in Interest Class X-2
Certificateholder may sell any such Released Loan to a third party.
Notwithstanding the previous sentence, if at any time after a Mortgage Loan has
been Charged Off and prior to six months after the date on which Wilshire begins
servicing such Charged Off Loan using Wilshire Special Servicing, Wilshire
determines that there will not be any Net Recoveries on such Charged Off Loan
under any circumstances, Wilshire may release such Charged Off Loan to the
Majority in Interest Class X-2 Certificateholder in accordance with the
provisions set forth in the previous sentence.

            Notwithstanding the foregoing, the procedures described above in
this subsection 3.11(a)(iv) relating to the treatment of Charged Off Loans may
be modified at any time at the discretion of the Majority in Interest Class X-1
Certificateholder, with the consent of Wilshire, which consent shall not be
unreasonably withheld; provided, however, that in no event shall the Majority in
Interest Class X-1 Certificateholder change the fee structure relating to
Charged Off Loans in a manner that would cause fees to be paid to Wilshire other
than from recoveries on Charged Off Loans.

            The Trustee shall track collections received by Wilshire on any
Charged Off Loans based upon loan level data provided to the Trustee by Wilshire
on each Servicer Data Remittance Date in a report in the form of Exhibit U
hereto, identifying the Charged Off Loans as of the related Due Period that
Wilshire will continue to service until the related Release Date using Wilshire
Special Servicing. On each Distribution Date, the Trustee shall verify, based on
the recovery and expense information provided by Wilshire on the Servicer Data
Remittance Date, (i) the aggregate amount of accrued and unpaid Servicing Fees
to be paid to Wilshire and expenses to be reimbursed to Wilshire on such Charged
Off Loans as of the related Due Period and (ii) the amount of Net Recoveries on
such Charged Off Loans for such Distribution Date. The Trustee shall be entitled
to rely, without independent verification, on the loan level data provided by
Wilshire that identifies the recovery amounts and the outstanding and unpaid
expenses on any Charged Off Loan in order to verify the amount in clause (ii) of
the previous sentence. The Trustee will be responsible for independently
verifying the aggregate amount of accrued and unpaid Servicing Fees described in
clause (i) of the second preceding sentence to be paid to Wilshire.

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            (v) Notwithstanding anything to the contrary contained in this
Agreement, in connection with a foreclosure or acceptance of a deed in lieu of
foreclosure, in the event the Servicer has reasonable cause to believe that a
Mortgaged Property is contaminated by hazardous or toxic substances or wastes,
or if the Trustee otherwise requests, an environmental inspection or review of
such Mortgaged Property conducted by a qualified inspector shall be arranged for
by the Servicer. Upon completion of the inspection, the Servicer shall promptly
provide the Trustee with a written report of environmental inspection.

            (vi) In the event the environmental inspection report indicates that
the Mortgaged Property is contaminated by hazardous or toxic substances or
wastes, the Servicer shall not proceed with foreclosure or acceptance of a deed
in lieu of foreclosure if the estimated costs of the environmental clean up, as
estimated in the environmental inspection report, together with the Servicing
Advances made by the Servicer and the estimated costs of foreclosure or
acceptance of a deed in lieu of foreclosure exceeds the estimated value of the
Mortgaged Property. If however, the aggregate of such clean up and foreclosure
costs and Servicing Advances are less than or equal to the estimated value of
the Mortgaged Property, then the Servicer may, in its reasonable judgment and in
accordance with Accepted Servicing Practices, choose to proceed with foreclosure
or acceptance of a deed in lieu of foreclosure and the Servicer shall be
reimbursed for all reasonable costs associated with such foreclosure or
acceptance of a deed in lieu of foreclosure and any related environmental clean
up costs, as applicable, from the related Liquidation Proceeds, or if the
Liquidation Proceeds are insufficient to fully reimburse the Servicer, the
Servicer shall be entitled to be reimbursed from amounts in the related
Collection Account pursuant to Section 3.08 hereof. In the event the Servicer
does not proceed with foreclosure or acceptance of a deed in lieu of foreclosure
pursuant to the first sentence of this paragraph, the Servicer shall be
reimbursed for all Servicing Advances made with respect to the related Mortgaged
Property from the related Collection Account pursuant to Section 3.08 hereof,
the Servicer shall have no further obligation to service such Mortgage Loan
under the provisions of this Agreement.

            (b) With respect to any REO Property, the deed or certificate of
sale shall be taken in the name of the Trustee for the benefit of the
Certificateholders, or its nominee, on behalf of the Certificateholders. The
Trustee's name shall be placed on the title to such REO Property solely as the
Trustee hereunder and not in its individual capacity. The Servicer shall ensure
that the title to such REO Property references this Agreement and the Trustee's
capacity hereunder. Pursuant to its efforts to sell such REO Property, the
Servicer shall in accordance with Accepted Servicing Practices manage, conserve,
protect and operate each REO Property for the purpose of its prompt disposition
and sale. The Servicer, either itself or through an agent selected by the
Servicer, shall manage, conserve, protect and operate the REO Property in the
same manner that it manages, conserves, protects and operates other foreclosed
property for its own account, and in the same manner that similar property in
the same locality as the REO Property is managed. The Servicer may rent such
property, as the Servicer deems to be in the best interest of the Trustee and
the Certificateholders for the period prior to the sale of such REO Property on
such terms and conditions and for such periods as the Servicer deems to be in
the best interest of the Trustee and the Certificateholders. The Servicer shall
furnish to the Trustee on or before each Distribution Date a statement with
respect to any REO Property covering the operation of such REO Property for the
previous calendar month and the Servicer's efforts in connection with the sale
of such REO Property and any rental of such REO Property incidental to the sale
thereof for the previous calendar month. That

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statement shall be accompanied by such other information as the Trustee shall
reasonably request and which is necessary to enable the Trustee to comply with
the reporting requirements of the REMIC Provisions. The net monthly rental
income, if any, from such REO Property shall be deposited in the related
Collection Account no later than the close of business on each Determination
Date. The Servicer shall perform the tax reporting and withholding required by
Sections 1445 and 6050J of the Code with respect to foreclosures and
abandonments, the tax reporting required by Section 6050H of the Code with
respect to the receipt of mortgage interest from individuals and any tax
reporting required by Section 6050P of the Code with respect to the cancellation
of indebtedness by certain financial entities, by preparing such tax and
information returns as may be required, in the form required, and delivering the
same to the Trustee for filing.

            To the extent consistent with Accepted Servicing Practices, the
Servicer shall also maintain on each REO Property fire and hazard insurance with
extended coverage in amount which is equal to the outstanding principal balance
of the related Mortgage Loan (as reduced by any amount applied as a reduction of
principal at the time of acquisition of the REO Property), liability insurance
and, to the extent required and available under the Flood Disaster Protection
Act of 1973, as amended, flood insurance in the amount required above. Any costs
incurred by the Servicer in maintaining such insurance shall be recoverable by
the Servicer as a Servicing Advance out of payments by the related Mortgagor or
out of Insurance Proceeds or Liquidation Proceeds. Notwithstanding anything to
the contrary in this paragraph, the Servicer shall be required to pay the costs
of maintaining any insurance contemplated by this Section 3.11(b) only to the
extent that such advances, in the good faith judgment of the Servicer, will be
recoverable.

            (c) In the event that the Trust Fund acquires any Mortgaged Property
as aforesaid or otherwise in connection with a default or imminent default on a
Mortgage Loan, the Servicer shall dispose of such Mortgaged Property prior to
three years after the end of the calendar year of its acquisition by the Trust
Fund unless (i) the Trustee shall have been supplied with an Opinion of Counsel
to the effect that the holding by the Trust Fund of such Mortgaged Property
subsequent to such three-year period will not result in the imposition of taxes
on "prohibited transactions" of any REMIC hereunder as defined in section 860F
of the Code or cause any REMIC hereunder to fail to qualify as a REMIC at any
time that any Certificates are outstanding, in which case the Trust Fund may
continue to hold such Mortgaged Property (subject to any conditions contained in
such Opinion of Counsel) or (ii) the Servicer shall have applied for, prior to
the expiration of such three-year period, an extension of such three-year period
in the manner contemplated by Section 856(e)(3) of the Code, in which case the
three-year period shall be extended by the applicable extension period. The
Servicer shall be entitled to be reimbursed from the Collection Account, as a
Servicing Advance, for any costs incurred in obtaining such Opinion of Counsel.
Notwithstanding any other provision of this Agreement, no Mortgaged Property
acquired by the Trust Fund shall be rented (or allowed to continue to be rented)
or otherwise used for the production of income by or on behalf of the Trust Fund
in such a manner or pursuant to any terms that would (i) cause such Mortgaged
Property to fail to qualify as "foreclosure property" within the meaning of
section 860G(a)(8) of the Code or (ii) subject any REMIC hereunder to the
imposition of any federal, state or local income taxes on the income earned from
such Mortgaged Property under Section 860G(c) of the Code or otherwise, unless
the Servicer has agreed to indemnify and hold harmless the Trust Fund with
respect to the imposition of any such taxes.

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            In the event of a default on a Mortgage Loan one or more of whose
obligor is not a United States Person, as that term is defined in Section
7701(a)(30) of the Code, in connection with any foreclosure or acquisition of a
deed in lieu of foreclosure (together, "foreclosure") in respect of such
Mortgage Loan, the Servicer will cause compliance with the provisions of
Treasury Regulation Section 1.1445-2(d)(3) (or any successor thereto) necessary
to assure that no withholding tax obligation arises with respect to the proceeds
of such foreclosure except to the extent, if any, that proceeds of such
foreclosure are required to be remitted to the obligors on the Mortgage Loan.

            (d) The decision of the Servicer to foreclose on a defaulted
Mortgage Loan shall be subject to a determination by the Servicer that the
proceeds of such foreclosure would exceed the costs and expenses of bringing
such a proceeding. The income earned from the management of any REO Properties,
net of reimbursement to the Servicer for expenses incurred (including any
property or other taxes) in connection with such management and net of
applicable accrued and unpaid Servicing Fees, and unreimbursed Advances and
Servicing Advances, shall be applied to the payment of principal of and interest
on the related defaulted Mortgage Loans (with interest accruing as though such
Mortgage Loans were still current) and all such income shall be deemed, for all
purposes in this Agreement, to be payments on account of principal and interest
on the related Mortgage Notes and shall be deposited into the related Collection
Account. To the extent the net income received during any calendar month is in
excess of the amount attributable to amortizing principal and accrued interest
at the related Mortgage Rate on the related Mortgage Loan for such calendar
month, such excess shall be considered to be a partial prepayment of principal
of the related Mortgage Loan.

            The Servicer shall not acquire any Mortgaged Property on behalf of
any REMIC created hereunder in connection with a default or imminent default on
a Foreclosure Restricted Loan, if acquiring title to the Mortgaged Property
underlying the loan would cause the adjusted basis, for federal income tax
purposes, of these Mortgaged Properties owned by the related REMIC after
foreclosure, along with any other assets owned by the related REMIC other than
"qualified mortgages" and "permitted investments" within the meaning of Section
860G of the Code, to exceed 0.75% of the adjusted basis of the assets of the
related REMIC. If the adjusted basis of such Mortgaged Properties in
foreclosure, along with any other assets owned by the related REMIC, other than
"qualified mortgages" and "permitted investments" with the meaning of Section
860G of the Code, exceed 1.0% of the adjusted basis of the assets of the related
REMIC immediately after the distribution of principal and interest on any
Distribution Date, the applicable Servicer will dispose of enough of such
Mortgaged Properties in foreclosure, for cash or otherwise, so that the adjusted
basis of such Mortgaged Properties in foreclosure, along with any other assets
owned by the related REMIC, other than "qualified mortgages" and "permitted
investments" within the meaning of Section 860G of the Code, will be less than
1.0% of the adjusted basis of the assets of the related REMIC. With respect to
the Servicer, the foregoing percentage limitations will apply only to the
Mortgage Loans serviced by the Servicer.

            (e) The proceeds from any liquidation of a Mortgage Loan, as well as
any income from an REO Property, if applicable, will be applied in the following
order of priority: first, to reimburse the Servicer for any related unreimbursed
Servicing Advances and Servicing Fees; second, to reimburse the Servicer for any
unreimbursed Advances; third, to reimburse the related Collection Account for
any Nonrecoverable Advances (or portions thereof) that were previously withdrawn
by the Servicer pursuant

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to Section 3.08(iii) that related to such Mortgage Loan; fourth, to accrued and
unpaid interest (to the extent no Advance has been made for such amount or any
such Advance has been reimbursed) on the Mortgage Loan or related REO Property,
at the per annum rate equal to the related Mortgage Rate reduced by the related
Servicing Fee Rate, to the Due Date occurring in the month in which such amounts
are required to be distributed; and fifth, as a recovery of principal of the
Mortgage Loan. Excess proceeds, if any, from the liquidation of a Liquidated
Mortgage Loan will be retained by the Servicer as additional servicing
compensation pursuant to Section 3.14.

            (f) [reserved].

            (g) The Majority in Interest Class X-2 Certificateholder, at its
option, may (but is not obligated to) repurchase from the Trust Fund, (a) any
related Mortgage Loan that is delinquent in payment by three or more Scheduled
Payments or (b) any related Mortgage Loan with respect to which there has been
initiated legal action or other proceedings for the foreclosure of the related
Mortgaged Property either judicially or non-judicially. If it elects to make any
such repurchase, the Majority in Interest Class X-2 Certificateholder shall
repurchase such Mortgage Loan with its own funds at a price equal to the
Repurchase Price for such Mortgage Loan. The Majority in Interest Class X-2
Certificateholder may designate the Servicer to service any such Mortgage Loan
purchased from the Trust.

            SECTION 3.12 Trustee to Cooperate; Release of Mortgage Files.

            Upon the payment in full of any Mortgage Loan, or the receipt by the
Servicer of a notification that payment in full will be escrowed in a manner
customary for such purposes, the Servicer will immediately notify the Trustee
(or the Custodian, as the case may be) by delivering, or causing to be delivered
a "Request for Release" substantially in the form of Exhibit M. Upon receipt of
such request, the Trustee (or the Custodian, as the case may be) shall within
three Business Days release the related Mortgage File to the Servicer, and the
Trustee shall within three Business Days of the Servicer's direction execute and
deliver to the Servicer the request for reconveyance, deed of reconveyance or
release or satisfaction of mortgage or such instrument releasing the lien of the
Mortgage in each case provided by the Servicer, together with the Mortgage Note
with written evidence of cancellation thereon. The Servicer is authorized to
cause the removal from the registration on the MERS(R) System of such Mortgage,
if applicable, and to execute and deliver, on behalf of the Trustee and the
Certificateholders or any of them, any and all instruments of satisfaction or
cancellation or of partial or full release. Expenses incurred in connection with
any instrument of satisfaction or deed of reconveyance shall be chargeable to
the related Mortgagor to the extent permitted by law and otherwise shall
constitute a Servicing Advance. From time to time and as shall be appropriate
for the servicing or foreclosure of any Mortgage Loan, including for such
purpose, collection under any policy of flood insurance, any fidelity bond or
errors or omissions policy, or for the purposes of effecting a partial release
of any Mortgaged Property from the lien of the Mortgage or the making of any
corrections to the Mortgage Note or the Mortgage or any of the other documents
included in the Mortgage File, the Trustee shall, within three Business Days of
delivery to the Trustee (or the Custodian, as the case may be) of a Request for
Release in the form of Exhibit M signed by a Servicing Officer, release the
Mortgage File to the Servicer. Subject to the further limitations set forth
below, the Servicer shall cause the Mortgage File or documents so released to be
returned to the Trustee (or the Custodian, as the case may be) when the need
therefor by the Servicer no longer exists, unless the

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Mortgage Loan is liquidated and the proceeds thereof are deposited in the
related Collection Account, in which case the Servicer shall deliver to the
Trustee (or the Custodian, as the case may be) a Request for Release in the form
of Exhibit M, signed by a Servicing Officer.

            If the Servicer at any time seeks to initiate a foreclosure
proceeding in respect of any Mortgaged Property as authorized by this Agreement,
the Servicer shall, if applicable, deliver or cause to be delivered to the
Trustee, for signature, as appropriate, any court pleadings, requests for
trustee's sale or other documents (which, if acceptable by the related court,
may be copies) necessary to effectuate such foreclosure or any legal action
brought to obtain judgment against the Mortgagor on the Mortgage Note or the
Mortgage or to obtain a deficiency judgment or to enforce any other remedies or
rights provided by the Mortgage Note or the Mortgage or otherwise available at
law or in equity.

            SECTION 3.13 Documents, Records and Funds in Possession of the
                         Servicer to be Held for the Trustee.

            Notwithstanding any other provisions of this Agreement, the Servicer
shall transmit to the Trustee as required by this Agreement all documents and
instruments in respect of a Mortgage Loan coming into the possession of the
Servicer from time to time required to be delivered to the Trustee pursuant to
the terms hereof and shall account fully to the Trustee for any funds received
by the Servicer or which otherwise are collected by the Servicer as Liquidation
Proceeds or Insurance Proceeds in respect of any Mortgage Loan. All Mortgage
Files and funds collected or held by, or under the control of, the Servicer in
respect of any Mortgage Loans, whether from the collection of principal and
interest payments or from Liquidation Proceeds, including but not limited to,
any funds on deposit in a Collection Account, shall be held by the Servicer for
and on behalf of the Trustee and shall be and remain the sole and exclusive
property of the Trustee, subject to the applicable provisions of this Agreement.
The Servicer also agrees that it shall not create, incur or subject any Mortgage
File or any funds that are deposited in the related Collection Account,
Certificate Account or any related Escrow Account, or any funds that otherwise
are or may become due or payable to the Trustee for the benefit of the
Certificateholders, to any claim, lien (other than the lien of a related First
Mortgage Loan), security interest, judgment, levy, writ of attachment or other
encumbrance, or assert by legal action or otherwise any claim or right of setoff
against any Mortgage File or any funds collected on, or in connection with, a
Mortgage Loan, except, however, that the Servicer shall be entitled to set off
against and deduct from any such funds any amounts that are properly due and
payable to the Servicer under this Agreement.

            SECTION 3.14 Servicing Fee.

            As compensation for its services hereunder, the Servicer shall be
entitled to withdraw from the Collection Account or to retain from interest
payments on the related Mortgage Loans the amount of its Servicing Fee for each
Mortgage Loan, less any amounts in respect of its Servicing Fee payable by the
Servicer pursuant to Section 3.05(b)(vi). The Servicing Fee is limited to, and
payable solely from, the interest portion of such Scheduled Payments collected
by the Servicer or as otherwise provided in Section 3.08.

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            Additional servicing compensation in the form of Ancillary Income
shall be retained by the Servicer. The Servicer shall be required to pay all
expenses incurred by it in connection with its servicing activities hereunder
(including the payment of any expenses incurred in connection with any
Subservicing Agreement entered into pursuant to Section 3.02) and shall not be
entitled to reimbursement thereof except as specifically provided for in this
Agreement.

            SECTION 3.15 Access to Certain Documentation.

            The Servicer shall provide to the OTS and the FDIC and to comparable
regulatory authorities supervising Holders of Subordinate Certificates and the
examiners and supervisory agents of the OTS, the FDIC and such other
authorities, access to the documentation regarding the related Mortgage Loans
required by applicable regulations of the OTS and the FDIC. Such access shall be
afforded without charge, but only upon reasonable and prior written request and
during normal business hours at the offices designated by the Servicer. Nothing
in this Section shall limit the obligation of the Servicer to observe any
applicable law prohibiting disclosure of information regarding the Mortgagors
and the failure of the Servicer to provide access as provided in this Section as
a result of such obligation shall not constitute a breach of this Section.
Nothing in this Section 3.15 shall require the Servicer to collect, create,
collate or otherwise generate any information that it does not generate in its
usual course of business.

            SECTION 3.16 Annual Statement as to Compliance.

            Not later than the earlier of (a) March 15 of each calendar year
(other than the calendar year during which the Closing Date occurs) or (b) with
respect to any calendar year during which the Depositor's annual report on Form
10-K is required to be filed in accordance with the Exchange Act and the rules
and regulations of the Commission, 15 calendar days before the date on which the
Depositor's annual report on Form 10-K is required to be filed in accordance
with the Exchange Act and the rules and regulations of the Commission (or, in
each case, if such day is not a Business Day, the immediately preceding Business
Day), the Servicer shall deliver to the Depositor, the Rating Agencies and the
Trustee an Officer's Certificate stating, as to the signer thereof, that (i) a
review of the activities of the Servicer during the preceding calendar year and
of the performance of the Servicer under this Agreement has been made under such
officer's supervision, and (ii) to the best of such officer's knowledge, based
on such review, the Servicer has fulfilled all 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 and the action being taken by the
Servicer to cure such default.

            SECTION 3.17 Annual Independent Public Accountants' Servicing
                         Statement; Financial Statements.

            Not later than the earlier of (a) March 15 of each calendar year
(other than the calendar year during which the Closing Date occurs) or (b) with
respect to any calendar year during which the Depositor's annual report on Form
10-K is required to be filed in accordance with the Exchange Act and the rules
and regulations of the Commission, 15 calendar days before the date on which the
Depositor's annual report on Form 10-K is required to be filed in accordance
with the Exchange Act and the rules and regulations of the Commission (or, in
each case, if such day is not a Business Day, the immediately

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preceding Business Day), the Servicer at its expense shall cause a nationally or
regionally recognized firm of independent public accountants (who may also
render other services to the Servicer, the Seller or any affiliate thereof)
which is a member of the American Institute of Certified Public Accountants to
furnish a statement to the Trustee and the Depositor to the effect that such
firm has examined certain documents and records relating to the servicing of
mortgage loans which the Servicer is servicing, which may include the related
Mortgage Loans or similar mortgage loans, and that, on the basis of such
examination, conducted substantially in compliance with the Uniform Single
Attestation Program for Mortgage Bankers or the Audit Guide for HUD Approved
Title II Approved Mortgagees and Loan Correspondent Programs, nothing has come
to their attention which would indicate that such servicing has not been
conducted in compliance with Accepted Servicing Practices, except for (a) such
exceptions as such firm shall believe to be immaterial, and (b) such other
exceptions as shall be set forth in such statement. In addition, the Servicer
shall disclose to such firm all significant deficiencies relating to the
Servicer's compliance with the minimum servicing standards set forth in this
Agreement. In rendering such statement, such firm may rely, as to matters
relating to direct servicing of mortgage loans by Subservicers, upon comparable
statements for examinations conducted substantially in compliance with the
Uniform Single Attestation Program for Mortgage Bankers or the Audit Guide for
HUD Approved Title II Approved Mortgagees and Loan Correspondent Programs
(rendered within one year of such statement) of independent public accountants
with respect to the related Subservicer. Copies of such statement shall be
provided by the Trustee to any Certificateholder upon request at the Servicer's
expense, provided such statement is delivered by the Servicer to the Trustee.

            SECTION 3.18 Maintenance of Fidelity Bond and Errors and Omissions
                         Insurance.

            The Servicer shall maintain with responsible companies, at its own
expense, a blanket Fidelity Bond and an Errors and Omissions Insurance Policy,
with broad coverage on all officers, employees or other persons acting in any
capacity requiring such persons to handle funds, money, documents or papers
relating to the related Mortgage Loans ("Servicer Employees"). The amount of
coverage under any such Fidelity Bond and Errors and Omissions Insurance Policy
shall be at least equal to the coverage maintained by the Servicer in order to
be acceptable to Fannie Mae or Freddie Mac to service loans for it or otherwise
in an amount as is commercially available at a cost that is generally not
regarded as excessive by industry standards. No provision of this Section 3.18
requiring such Fidelity Bond and Errors and Omissions Insurance Policy shall
diminish or relieve the Servicer from its duties and obligations as set forth in
this Agreement. The minimum coverage under any such bond and insurance policy
shall be at least equal to the corresponding amounts required by Fannie Mae.
Upon the request of the Trustee, the Servicer shall cause to be delivered to the
Trustee a certificate of insurance of the insurer and the surety including a
statement from the surety and the insurer that such fidelity bond and insurance
policy shall in no event be terminated or materially modified without 30 days'
prior written notice to the Trustee.

            SECTION 3.19 Duties of the Credit Risk Manager.

            The Depositor appoints The Murrayhill Company as Credit Risk
Manager. For and on behalf of the Depositor, and the Trustee, the Credit Risk
Manager will provide the Depositor with reports and recommendations concerning
Mortgage Loans that are past due, as to which there has been commencement of
foreclosure, as to which there has been forbearance in exercise of remedies
which are

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in default, as to which obligor is the subject of bankruptcy, receivership, or
an arrangement of creditors, or as to which have become REO Properties. Such
reports and recommendations will be based upon information provided to the
Credit Risk Manager pursuant to the Credit Risk Management Agreement and the
Credit Risk Manager shall look solely to the Servicer for all information and
data (including loss and delinquency information and data) and loan level
information and data relating to the servicing of the Mortgage Loans. If the
Credit Risk Manager is no longer able to perform its duties hereunder, the
Depositor shall terminate the Credit Risk Manager and cause the appointment of a
successor Credit Risk Manager. Upon any termination of the Credit Risk Manager
or the appointment of a successor Credit Risk Manager, the Depositor shall give
written notice thereof to the Seller, the Servicer, the Trustee and each Rating
Agency. Notwithstanding the foregoing, the termination of the Credit Risk
Manager pursuant to this Section 3.19 shall not become effective until the
appointment of a successor Credit Risk Manager.

            SECTION 3.20 Limitation Upon Liability of the Credit Risk Manager.

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

            SECTION 3.21 Advance Facility.

            (a) Wilshire is hereby authorized to enter into a financing or other
facility (any such arrangement, an "Advance Facility") under which (1) Wilshire
assigns or pledges to another Person (an "Advancing Person") the Servicer's
rights under this Agreement to be reimbursed for any Advances or Servicing
Advances and/or (2) an Advancing Person agrees to fund some or all Advances
and/or Servicing Advances required to be made by Wilshire pursuant to this
Agreement. No consent of the Trustee, Certificateholders or any other party is
required before Wilshire may enter into an Advance Facility; provided, however,
that the consent of the Trustee (which consent shall not be unreasonably
withheld) shall be required before Wilshire may cause to be outstanding at one
time more than one Advance Facility with respect to Advances or more than one
Advance Facility with respect to Servicing Advances. Notwithstanding the
existence of any Advance Facility under which an Advancing Person agrees to fund
Advances and/or Servicing Advances on the Servicer's behalf, Wilshire shall
remain obligated pursuant to this Agreement to make Advances and Servicing
Advances pursuant to and as required by this Agreement, and shall not be
relieved of such obligations by virtue of such Advance Facility. If Wilshire
enters into an Advance Facility, and for so long as an Advancing Person remains
entitled to receive reimbursement for any Advances or Servicing Advances
outstanding and previously unreimbursed pursuant

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to this Agreement, then Wilshire may elect by providing written notice to the
Trustee not to be permitted to reimburse itself for Advances and/or Servicing
Advances, as applicable, pursuant to Section 3.08 of this Agreement, but
following any such election Wilshire shall be required to include amounts
collected that would otherwise be retained by Wilshire to reimburse it for
previously unreimbursed Advances ("Advance Reimbursement Amounts") and/or
previously unreimbursed Servicing Advances ("Servicing Advance Reimbursement
Amounts" and together with Advance Reimbursement Amounts, "Reimbursement
Amounts") (in each case to the extent such type of Reimbursement Amount is
included in the Advance Facility) in the remittance to the Trustee made pursuant
to this Agreement to the extent of amounts on deposit in the Collection Account
on the Servicer Cash Remittance Date. Notwithstanding anything to the contrary
herein, in no event shall Advance Reimbursement Amounts or Servicing Advance
Reimbursement Amounts be included in Interest Remittance Amounts or Principal
Remittance Amounts or distributed to Certificateholders. Wilshire if making the
election set forth herein, shall report to the Trustee the portions of the
Reimbursement Amounts that consist of Advance Reimbursement Amounts and
Servicing Advance Reimbursement Amounts, respectively.

            (b) If Wilshire enters into an Advance Facility and makes the
election set forth in Section 3.21(a), Wilshire and the related Advancing Person
shall deliver to the Trustee a written notice and payment instruction (an
"Advance Facility Notice"), providing the Trustee with written payment
instructions as to where to remit Advance Reimbursement Amounts and/or Servicing
Advance Reimbursement Amounts (each to the extent such type of Reimbursement
Amount is included within the Advance Facility) on subsequent Distribution
Dates. The payment instruction shall require the applicable Reimbursement
Amounts to be distributed to the Advancing Person or to a trustee or custodian
(an "Advance Facility Trustee") designated in the Advance Facility Notice. An
Advance Facility Notice may only be terminated by the joint written direction of
Wilshire and the related Advancing Person (and any related Advance Facility
Trustee); provided, however, that the provisions of this Section 3.21 shall
cease to be applicable when all Advances and Servicing Advances funded by an
Advancing Person, and when all Advances and Servicing Advances (the rights to be
reimbursed for which have been assigned or pledged to an Advancing Person), have
been repaid to the related Advancing Person in full.

            (c) Reimbursement Amounts shall consist solely of amounts in respect
of Advances and/or Servicing Advances made with respect to the Mortgage Loans
for which Wilshire would be permitted to reimburse itself in accordance with
Section 3.08(ii), (iii) and (iv) hereof, assuming Wilshire had made the related
Advance(s) and/or Servicing Advance(s). Notwithstanding the foregoing, no Person
shall be entitled to reimbursement from funds held in the Collection Account for
future distribution to Certificateholders pursuant to the provisions of Section
4.01. The Trustee shall not have any duty or liability with respect to the
calculation of any Reimbursement Amount and shall be entitled to rely without
independent investigation on the Advance Facility Notice and on the Servicer's
report of the amount of Advance Reimbursement Amounts and Servicing Advance
Reimbursement Amounts that were included in the remittance from Wilshire to the
Trustee pursuant to Section 3.08(viii). Wilshire shall maintain and provide to
any successor Servicer a detailed accounting on a loan-by-loan basis as to
amounts advanced by, pledged or assigned to, and reimbursed to any Advancing
Person. The successor Servicer shall be entitled to rely on any such information
provided by Wilshire and the successor Servicer shall not be liable for any
errors in such information.

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            (d) An Advancing Person who receives an assignment or pledge of the
rights to be reimbursed for Advances and/or Servicing Advances, and/or whose
obligations hereunder are limited to the funding of Advances and/or Servicing
Advances shall not be required to meet the criteria for qualification of a
Subservicer set forth in Section 3.02 hereof.

            (e) With respect to any Advance Facility pursuant to which Wilshire
has made the election set forth in Section 3.21(a), the documentation
establishing any Advance Facility shall require that Reimbursement Amounts
distributed with respect to each Mortgage Loan be allocated to outstanding
unreimbursed Advances or Servicing Advances (as the case may be) made with
respect to that Mortgage Loan on a "first-in, first-out" (FIFO) basis. Such
documentation shall also require Wilshire to provide to the related Advancing
Person or Advance Facility Trustee loan-by-loan information with respect to each
Reimbursement Amount distributed by the Trustee to such Advancing Person or
Advance Facility Trustee on each Distribution Date, to enable the Advancing
Person or Advance Facility Trustee to make the FIFO allocation of each
Reimbursement Amount with respect to each Mortgage Loan. Wilshire shall remain
entitled to be reimbursed by the Advancing Person or Advance Facility Trustee
for all Advances and Servicing Advances funded by Wilshire to the extent the
related rights to be reimbursed therefor have not been assigned or pledged to an
Advancing Person.

            (f) If Wilshire enters into an Advance Facility, Wilshire shall
indemnify the Trustee and the Trust and any successor Servicer, as applicable,
from and against any claims, losses, liabilities or damages resulting from any
claim by the related Advancing Person, except to the extent that such claim,
loss, liability or damage resulted from or arose out of negligence, recklessness
or willful misconduct on the part of the successor Servicer or the Trustee, or
failure by the successor Servicer or the Trustee to remit funds as required by
Section 3.21(b). Any amendment to this Section 3.21 or to any other provision of
this Agreement that may be necessary or appropriate to effect the terms of an
Advance Facility as described generally in this Section 3.21, including
amendments to add provisions relating to a successor Servicer, may be entered
into by the Trustee, the Seller and Wilshire without the consent of any
Certificateholder notwithstanding anything to the contrary in Section 10.01 of
or elsewhere in this Agreement.

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                                   ARTICLE IV

                                DISTRIBUTIONS AND
                            ADVANCES BY THE Servicer

            SECTION 4.01 Advances by the Servicer.

            The Servicer shall deposit in a Collection Account an amount equal
to (i) with respect to the Mortgage Loans other than the Simple Interest
Mortgage Loans, all Scheduled Payments (with interest at the Mortgage Rate less
the Servicing Fee Rate) which were due but not received on the related Mortgage
Loans during the applicable Due Period and (ii) with respect to the Simple
Interest Mortgage Loans, 30 day's interest on each such Mortgage Loan for which
the Scheduled Payment was due but not received during the applicable Due Period,
less the Servicing Fee; provided however, that with respect to any Balloon Loan
that is delinquent on its maturity date, the Servicer will not be required to
advance the related balloon payment but will be required to continue to make
Advances in accordance with this Section 4.01 with respect to such Balloon Loan
in an amount equal to an assumed scheduled payment that would otherwise be due
based on the original amortization schedule for that Mortgage Loan (with
interest at the Mortgage Rate less the Servicing Fee Rate). The Servicer's
obligation to make such Advances as to any related Mortgage Loan will continue
through the last Scheduled Payment due prior to the payment in full of such
Mortgage Loan, or through the date that the related Mortgaged Property has, in
the judgment of the Servicer, been completely liquidated; provided however, that
such obligation with respect to any related Mortgage Loan shall cease if the
Servicer determines, in its reasonable opinion, that Advances with respect to
such Mortgage Loan are Nonrecoverable Advances; provided that the Servicer will
be required to make Advances until the earlier of (i) the time at which the
related Mortgage Loan becomes 120 days delinquent or (ii) the time at which the
Servicer determines that such Advances with respect to such Mortgage Loan are
Nonrecoverable Advances. In the event that the Servicer determines that any such
Advances are Nonrecoverable Advances, the Servicer shall provide the Trustee
with a certificate signed by a Servicing Officer evidencing such determination.

            If an Advance is required to be made hereunder, the Servicer shall
on the second Business Day immediately preceding the Distribution Date
immediately following the related Determination Date either (i) deposit in the
Collection Account from its own funds an amount equal to such Advance, (ii)
cause to be made an appropriate entry in the records of the Collection Account
that funds in such account being held for future distribution or withdrawal have
been, as permitted by this Section 4.01, used by the Servicer to make such
Advance or (iii) make Advances in the form of any combination of clauses (i) and
(ii) aggregating the amount of such Advance. Any such funds being held in a
Collection Account for future distribution and so used shall be replaced by the
Servicer from its own funds by deposit in such Collection Account on or before
any future Distribution Date in which such funds would be due. The Servicer
shall be entitled to be reimbursed from the Collection Account for all Advances
of its own funds made pursuant to this Section as provided in Section 3.08.

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            SECTION 4.02 Priorities of Distribution.

            (a) On each Distribution Date, prior to making distributions to the
holders of the Certificates, the Trustee first, shall pay itself the Trustee's
Fee for such Distribution Date, and second, shall pay the Credit Risk Manager
the Credit Risk Manager Fee.

            (b) With respect to the Available Funds, on each Distribution Date,
the Trustee shall withdraw such Available Funds from the Certificate Account and
based on the information provided to it by the Servicer, apply such funds to
distributions on the Certificates in the following order and priority and, in
each case, to the extent of such Available Funds remaining:

            (i) On each Distribution Date, the Trustee shall distribute the
      Interest Remittance Amount for such date in the following order of
      priority:

            A.    to the Senior Certificates, pro rata, Current Interest and any
                  Carryforward Interest, as applicable, for each such Class and
                  such Distribution Date;

            B.    to the Class M-1 Certificates, Current Interest and any
                  Carryforward Interest for such Class and such Distribution
                  Date;

            C.    to the Class M-2 Certificates, Current Interest and any
                  Carryforward Interest for such Class and such Distribution
                  Date;

            D.    to the Class B-1 Certificates Current Interest and any
                  Carryforward Interest for such Class and such Distribution
                  Date;

            E.    to the Class B-2 Certificates Current Interest and any
                  Carryforward Interest for such Class and such Distribution
                  Date;

            F.    to the Class B-3A Certificates and Class B-3F Certificates,
                  concurrently and pro rata, Current Interest and any
                  Carryforward Interest for each such Class and such
                  Distribution Date; and

            G.    On the Distribution Dates occurring in May 2004, June 2004 and
                  July 2004, to the Depositor an amount equal to the amount
                  received during the related Due Period which constitutes
                  Subsequent Mortgage Loan Interest; and

            H.    for application in the same manner as the Monthly Excess
                  Cashflow for such Distribution Date as provided in clause (iv)
                  of this Section 4.02(b), any Interest Remittance Amount
                  remaining after application pursuant to clauses A. through G.
                  above.

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            (ii) On each Distribution Date (a) prior to the Stepdown Date or (b)
      with respect to which a Trigger Event has occurred, the Trustee shall
      distribute the Principal Payment Amount for such date in the following
      order of priority:

            A.    commencing on the Distribution Date in August 2009, to the
                  Class P Certificates, until the Class Principal Balance of
                  such class has been reduced to zero;

            B.    first to the Class A-R Certificates and Class A-RL
                  Certificates, concurrently on a pro rata basis, based on their
                  respective Class Principal Balances, until the Class Principal
                  Balance of each such Class is reduced to zero, and then to the
                  Class A-1 Certificates, until the Class Principal Balance
                  thereof has been reduced to zero;

            C.    to the Class M-1 Certificates, until the Class Principal
                  Balance of such Class has been reduced to zero;

            D.    to the Class M-2 Certificates, until the Class Principal
                  Balance of such Class has been reduced to zero;

            E.    to the Class B-1 Certificates, until the Class Principal
                  Balance of such Class has been reduced to zero;

            F.    to the Class B-2 Certificates, until the Class Principal
                  Balance of such Class has been reduced to zero;

            G.    to the Class B-3A Certificates and Class B-3F Certificates,
                  concurrently on a pro rata basis, based on their respective
                  Class Principal Balances, until the Class Principal Balance of
                  each such Class has been reduced to zero; and

            H.    for application in the same manner as the Monthly Excess
                  Cashflow for such Distribution Date, as provided in clause
                  (iv) of this Section 4.02(b), any Principal Payment Amount
                  remaining after application pursuant to clauses A. through G.
                  above.

            (iii) On each Distribution Date (a) on or after the Stepdown Date
      and (b) with respect to which a Trigger Event has not occurred, the
      Trustee shall distribute the Principal Payment Amount for such date in the
      following order of priority:

            A.    commencing on the Distribution Date in August 2009 or
                  thereafter, to the Class P Certificates, until the Class
                  Principal Balance of such class has been reduced to zero;

            B.    to the Class A-1 Certificates, the Senior Principal Payment
                  Amount for such Distribution Date, until the Class Principal
                  Balance thereof has been reduced to zero;

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            C.    to the Class M-1 Certificates, the Class M-1 Principal Payment
                  Amount for such Distribution Date, until the Class Principal
                  Balance of such Class has been reduced to zero;

            D.    to the Class M-2 Certificates, the Class M-2 Principal Payment
                  Amount for such Distribution Date, until the Class Principal
                  Balance of such Class has been reduced to zero;

            E.    to the Class B-1 Certificates, the Class B-1 Principal Payment
                  Amount for such Distribution Date, until the Class Principal
                  Balance of such Class has been reduced to zero;

            F.    to the Class B-2 Certificates, the Class B-2 Principal Payment
                  Amount for such Distribution Date, until the Class Principal
                  Balance of such Class has been reduced to zero;

            G.    to the Class B-3A Certificates and Class B-3F Certificates,
                  the Class B-3 Principal Payment Amount for such Distribution
                  Date, concurrently on a pro rata basis, based on their
                  respective Class Principal Balances, until the Class Principal
                  Balance of each such Class has been reduced to zero; and

            H.    for application as part of Monthly Excess Cashflow for such
                  Distribution Date, as provided in clause (iv) of this Section
                  4.02(b), any Principal Payment Amount remaining after
                  application pursuant to clauses A. through G. above.

            (iv) On each Distribution Date, the Trustee shall distribute the
      Monthly Excess Cashflow for such date in the following order of priority:

            A.    an amount equal to the aggregate Realized Losses on the
                  Mortgage Loans incurred during the related Collection Period,
                  such amount to be added to the Principal Payment Amount and
                  distributed as set forth above in Section 4.02(b)(ii) and
                  (iii) (any such amount, an "Excess Cashflow Loss Payment");

            B.    (I)   except for the first Distribution Date, until the
                        Overcollateralization Amount equals the Targeted
                        Overcollateralization Amount for such date, on each
                        Distribution Date (a) prior to the Stepdown Date or (b)
                        with respect to which a Trigger Event has occurred, to
                        the extent of Monthly Excess Interest for such
                        Distribution Date, to fund any principal distributions
                        to the Class A-1, Class A-R, Class A-RL, Class P, Class
                        M-1, Class M-2, Class B-1, Class B-2, Class B-3A and
                        Class B-3F Certificates required to be made on such
                        Distribution Date set forth above in clause (ii) above,
                        after giving effect to the distribution of the Principal
                        Payment Amount for such Distribution Date, in accordance
                        with the priorities set forth therein.

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                  (II)  on each Distribution Date on or after the Stepdown Date
                        and with respect to which a Trigger Event has not
                        occurred, to fund any principal distributions to the
                        Class A-1, Class A-R, Class A-RL, Class P, Class M-1,
                        Class M-2, Class B-1, Class B-2, Class B-3A and Class
                        B-3F Certificates required to be made on such
                        Distribution Date set forth above in clause (iii) above,
                        after giving effect to the distribution of the Principal
                        Payment Amount for such Distribution Date, in accordance
                        with the priorities set forth therein;

            C.    to the Class M-1 Certificates, any Deferred Amount for such
                  Class, with interest thereon at the Pass-Through Rate for such
                  Class;

            D.    to the Class M-2 Certificates, any Deferred Amount for such
                  Class, with interest thereon at the Pass-Through Rate for such
                  Class;

            E.    to the Class B-1 Certificates, any Deferred Amount for such
                  Class, with interest thereon at the Pass-Through Rate for such
                  Class;

            F.    to the Class B-2 Certificates, any Deferred Amount for such
                  Class, with interest thereon at the Pass-Through Rate for such
                  Class;

            G.    concurrently, to the Class B-3A Certificates and Class B-3F
                  Certificates on a pro rata basis, based on their respective
                  Class Principal Balances, any Deferred Amount with interest
                  thereon at the Pass-Through Rate for each such Class;

            H.    to the Class X-1 Certificate, the Class X-1 Distributable
                  Amount for such Distribution Date reduced by amounts
                  distributed pursuant to clause E of Section 4.02(b)(i) for
                  such Distribution Date, the amount of any
                  Overcollateralization Release Amount for such Distribution
                  Date and, for any Distribution Date on or after which the
                  aggregate Class Principal Balance of the Regular Certificates
                  has been reduced to zero, the Overcollateralization Amount;
                  and

            I.    to the Class A-R Certificate or Class A-RL Certificate, as
                  applicable, any remaining amount; provided, however that any
                  amount that would be distributable pursuant to this priority
                  (I) shall not be paid with respect to the Class A-R
                  Certificate or Class A-RL Certificates, as applicable, but
                  shall be paid instead with respect to the Class X-1
                  Certificates pursuant to a contract that exists under this
                  Agreement between the Class A-R Certificateholders or Class
                  A-RL Certificateholders and the Class X-1 Certificateholders.

            (v) On each Distribution Date, the Trustee shall distribute to the
      Holder of the Class P Certificate, the aggregate of all Prepayment Charges
      collected during the preceding Prepayment Period.

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            (vi) On the first Distribution Date only, the Trustee shall
      distribute the Monthly Excess Cashflow for such date to the Class X-1
      Certificate.

            (vii) On each Distribution Date, following the foregoing
      distributions, an amount equal to the amount of Net Recoveries included in
      the Available Funds for such Distribution Date shall be applied to
      increase the Class Principal Balance of the Class of Certificates with the
      Highest Priority up to the extent of such Realized Losses previously
      allocated to that Class of Certificates pursuant to Section 4.05. An
      amount equal to the amount of any remaining Net Recoveries shall be
      applied to increase the Class Principal Balance of the Class of
      Certificates with the next Highest Priority, up to the amount of such
      Realized Losses previously allocated to that Class of Certificates
      pursuant to Section 4.05, and so on. Holders of such Certificates will not
      be entitled to any distribution in respect of interest on the amount of
      such increases for any Interest Accrual Period preceding the Distribution
      Date on which such increase occurs. Any such increases shall be applied to
      the Class Principal Balance of each Certificate of such Class in
      accordance with its respective Percentage Interest.

            SECTION 4.03 [Reserved]

            SECTION 4.04 [Reserved]

            SECTION 4.05 Allocation of Realized Losses.

            On each Distribution Date, the Trustee shall determine the total of
the Applied Loss Amount, if any, for such Distribution Date. The Applied Loss
Amount for any Distribution Date shall be applied by reducing the Class
Principal Balance of each Class of Subordinate Certificates beginning with the
Class of Subordinate Certificates then outstanding with the lowest relative
payment priority, in each case until the respective Class Principal Balance
thereof is reduced to zero. Any Applied Loss Amount allocated to a Class of
Subordinate Certificates shall be allocated among the Subordinate Certificates
of such Class in proportion to their respective Percentage Interests.

            All Realized Losses on the Mortgage Loans shall be allocated on each
Distribution Date to the following REMIC 1 Regular Interests: first, to REMIC 1
Regular Interests LTI-1 until the Uncertificated Principal Balance thereof has
been reduced to zero, then to REMIC 1 Regular Interest LTI-1PF until the
Uncertificated Principal Balance thereof has been reduced to zero, however, that
with respect to the first three Distribution Dates, Realized Losses relating to
the Initial Mortgage Loans shall be allocated to REMIC 1 Regular Interest LTI-1
and Realized Losses relating to the Subsequent Mortgage Loans shall be allocated
to REMIC 1 Regular Interest LTI-1PF until the Uncertificated Principal Balance
thereof has been reduced to zero. All Realized Losses on the REMIC 1 Regular
Interests LTI-1 and LTI-1PF shall be deemed to have been allocated to the
following REMIC 2 Regular Interests in the specified percentages, as follows:
first to Uncertificated Accrued Interest payable to the REMIC 2 Regular
Interests MTI-AA and MTI-ZZ up to an aggregate amount equal to the excess of (a)
the REMIC 2 Interest Loss Allocation Amount over (b) Prepayment Interest
Shortfalls (to the extent not covered by Compensating Interest) relating to the
Mortgage Loans for such Distribution Date, 98% and 2%, respectively; second, to
the Uncertificated Principal Balances of the REMIC 2 Regular Interests MTI-AA
and MTI-ZZ up to an

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aggregate amount equal to the REMIC 2 Principal Loss Allocation Amount, 98% and
2%, respectively; third, to the Uncertificated Principal Balances of REMIC 2
Regular Interest MTI-AA, REMIC 2 Regular Interest MTI-B-3A and MTI-B-3F,
concurrently on a pro rata basis, and REMIC 2 Regular Interest MTI-ZZ, 98%, 1%
and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2
Regular Interests MTI-B have been reduced to zero; fourth, to the Uncertificated
Principal Balances of REMIC 2 Regular Interest MTI-AA, REMIC 2 Regular Interest
MTI-B-2 and REMIC 2 Regular Interest MTI-ZZ, 98%, 1% and 1%, respectively, until
the Uncertificated Principal Balance of REMIC 2 Regular Interests MTI-B-2 have
been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 2
Regular Interest MTI-AA, REMIC 2 Regular Interest MTI-B-1 and REMIC 2 Regular
Interest MTI-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of REMIC 2 Regular Interests MTI-B-2 have been reduced to
zero; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular
Interest MTI-AA, REMIC 2 Regular Interest MTI-M-2 and REMIC 2 Regular Interest
MTI-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance
of REMIC 2 Regular Interest MTI-M-2 has been reduced to zero; and seventh, to
the Uncertificated Principal Balances of REMIC 2 Regular Interest MTI-AA, REMIC
2 Regular Interest MTI-M-1 and REMIC 2 Regular Interest MTI-ZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Principal Balance of REMIC 2 Regular
Interest MTI-M-1 has been reduced to zero. All Realized Losses on the REMIC 2
Regular Interests shall be deemed to have been allocated to the REMIC 3 Regular
Interests in specified percentages and in the same priority as that allocated to
the Corresponding Certificates.

            SECTION 4.06 Monthly Statements to Certificateholders.

            (a) Not later than each Distribution Date, the Trustee shall
prepare, and make available on the website maintained by the Trustee at
http://www.jpmorgan.com/sfr, a statement setting forth with respect to the
related distribution, the items listed on Exhibit V.

            Assistance in using the website can be obtained by calling the
Trustee's customer service desk at 877-722-1095. Parties that are unable to use
the website are entitled to have a paper copy mailed to them via first class
mail by written notice to the Trustee at its Corporate Trust Office. The
Trustee's responsibility for disbursing the above information to the
Certificateholders is limited to the availability, timeliness and accuracy of
the information derived from the Servicer. The foregoing information shall be
reported to the Trustee each month on or before the Servicer Data Remittance
Date.

            (b) Within a reasonable period of time after the end of each
calendar year, the Trustee shall cause to be furnished to each Person who at any
time during the calendar year was a Certificateholder, a statement containing
the information set forth in, items (i)(c), (i)(d), (i)(g), (i)(j), (i)(k),
(ii)(c), (ii)(d), (ii)(g), (ii)(i), (v)(d), (v)(e) and (v)(s) of Exhibit V
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 in effect.

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            SECTION 4.07 Distributions on the REMIC 1 Regular Interests, REMIC 2
                         Regular Interests and REMIC 3 Regular Interests.

            (a) Distributions on the REMIC 1 Regular Interests.

            On each Distribution Date, the Trustee shall cause in the following
order of priority, the following amounts to be distributed by REMIC 1 to REMIC 2
on account of the REMIC 1 Regular Interests or withdrawn from the Distribution
Account and distributed to the holders of the Class A-RL Certificates, as the
case may be:

            (i) first, to the Holders of REMIC 1 Regular Interests LTI-P and
      LTI-R, in an amount equal to (x) the related Uncertificated Accrued
      Interest for such Distribution Date, plus (y) any amounts in respect
      thereof remaining unpaid from previous Distribution Dates and second, to
      Holders of Uncertificated REMIC 1 Regular Interests LTI-1 and LTI-1PF an
      amount equal to (x) the related Uncertificated Accrued Interest for such
      Distribution Date, plus (y) any amounts in respect thereof remaining
      unpaid from previous Distribution Dates;

            (ii) to the Holders of REMIC 1 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 and, in the case of
      distributions made pursuant to Section 4.07(a)(ii)(b), the amount of any
      Prepayment Charges for such Distribution Date, allocated as follows:

                  (a) to the Holders of REMIC 1 Regular Interest LTI-R, an
      amount equal to the amount of principal distributed to the holder of the
      Corresponding Uncertificated Interest on such Distribution Date pursuant
      to Section 4.07(b)(ii)(a);

                  (b) to the Holders of REMIC 1 Regular Interest LTI-P, an
      amount equal to the amount distributed to the holder of the Corresponding
      Uncertificated Interest on such Distribution Date pursuant to Section
      4.07(b)(ii)(b);

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

                  (d) to the Holders of REMIC 1 Regular Interest LTI-1PF, until
      the Uncertificated Principal Balance of REMIC 1 Regular Interest LTI-1PF
      is reduced to zero; and

            (iii) any remaining amount to the Holders of the Class A-RL
      Certificates;

provided, however, that for the first three Distribution Dates, such amounts
constituting Available Funds relating to the Initial Mortgage Loans shall be
allocated to REMIC 1 Regular Interest LTI-1, and such amounts constituting
Available Funds relating to the Subsequent Mortgage Loans and shall be allocated
to REMIC 1 Regular Interest LT-1PF.

            (b) Distributions on the REMIC 2 Regular Interests.

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            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 A-R Certificates (in respect
of the Class R-2 Interest), as the case may be:

            (i) first, to the extent of the sum of Available Funds for such
      Distribution Date, to Holders of REMIC 2 Regular Interests MTI-AA,
      MTI-A-1, MTI-A-I-1,MTI-M-1, MTI-M-2, MTI-B-1, MTI-B-2, MTI-B-3A, MTI-B-3F,
      MTI-ZZ, MTI-P and MTI-R, pro rata, in an amount equal to (A) the
      Uncertificated Accrued Interest for such Distribution Date, plus (B) any
      amounts in respect thereof remaining unpaid from previous Distribution
      Dates. Amounts payable as Uncertificated Accrued Interest in respect of
      REMIC 2 Regular Interest MTI-ZZ shall be reduced when the REMIC 2
      Overcollateralization Amount is less than the REMIC 2
      Overcollateralization Target Amount, by the lesser of (x) the amount of
      such difference and (y) the REMIC 2 Regular Interest MTI-ZZ Maximum
      Interest Deferral Amount and such amount will be payable to the Holders of
      REMIC II Regular Interest MTI-A-1, MTI-A-I-1, REMIC II Regular Interest
      MTI-M-1, REMIC II Regular Interest MTI-M-2, REMIC II Regular Interest
      MTI-B-1, REMIC II Regular Interest MTI-B-2, REMIC Regular Interest
      MTI-B-3A and REMIC II Regular Interest MTI-B-3F in the same proportion as
      the amounts are allocated to the Corresponding Uncertificated Interest,
      pursuant to Section 4.07(c) herein, for each such REMIC II Regular
      Interest, and the Uncertificated Principal Balance of the REMIC II Regular
      Interest MTI-ZZ shall be increased by such amount;

            (ii) 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 (i) above and, in the
      case of distributions made pursuant to Section 4.07(b)(ii)(b), the amount
      of any Prepayment Charges for such Distribution Date, allocated as
      follows:

                  (a) to the Holders of REMIC 2 Regular Interest MTI-R, an
      amount equal to the amount of principal distributed to the holder of the
      Corresponding Uncertificated Interest on such Distribution Date pursuant
      to Section 4.07(c); and

                  (b) to the Holders of REMIC 2 Regular Interest MTI-P, an
      amount equal to the amount of principal distributed to the holder of the
      Corresponding Uncertificated Interest on such Distribution Date pursuant
      to Section 4.07(c); and

            (iii) third, 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 clauses (i) and (ii) above,
      allocated as follows:

                  (a) with respect to the Holders of REMIC 2 Regular Interest
      MTI-AA, 98.00% of such remainder, until the Uncertificated Principal
      Balance of such Uncertificated REMIC 2 Regular Interest is reduced to
      zero;

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<PAGE>

                  (b) with respect to the Holders of REMIC 2 Regular Interest
      MTI-A-1, MTI-A-I-1, MTI-M-1, MTI-M-2, MT-B-1, MTI-B-2, MTI-B-3A and
      MTI-B-3F, 1.00% of such remainder, in the same proportion as principal
      payments are allocated to the Corresponding Uncertificated Interests,
      until the Uncertificated Principal Balances of such REMIC 2 Regular
      Interests are reduced to zero;

                  (c) to the Holders of REMIC 2 Regular Interest MTI-ZZ, 1.00%
      of such remainder, until the Uncertificated Principal Balance of such
      REMIC 2 Regular Interest is reduced to zero; and

                  (d) any remaining amount to the Holders of the Class A-R
      Certificates (in respect of the Class R-2 Interest);

provided, however, 98.00% and 2.00% of any principal payments that are
attributable to an Overcollateralization Release Amount shall be allocated to
Holders of REMIC 2 Regular Interest MTI-AA and REMIC 2 Regular Interest MTI-ZZ,
respectively.

            (c) Distributions on the REMIC 3 Regular Interests.

            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 A-R Certificates (in respect
of the Class R-3 Interest), as the case may be:

      (i) first, each of the REMIC 3 Regular Interests shall accrue interest at
the Uncertificated REMIC 3 Pass-Through Rates equal to those set forth in
Preliminary Statement;

      (ii) second, distributions of principal shall be payable to, and
shortfalls, losses and prepayments are allocable to, the REMIC 3 Regular
Interests as such amounts are payable and allocable to the Corresponding
Certificates; and

      (iii) third, REMIC 3 Regular Interest MTII-P shall be entitled to the
amounts of any Prepayment Charges paybable and allocable to the Corresponding
Certificate on such Distribution Date pursuant to Section 4.02(b)(v).

            SECTION 4.08 [Reserved].

            SECTION 4.09 Prepayment Charges.

            Notwithstanding anything in this Agreement to the contrary, in the
event of a Principal Prepayment of a Mortgage Loan, the Servicer may not waive
any Prepayment Charge or portion thereof required by the terms of the related
Mortgage Note unless (i) the Mortgage Loan is in default or foreseeable default
and such waiver (a) is standard and customary in servicing similar mortgage
loans to the Mortgage Loans and (b) would, in the reasonable judgment of the
Servicer, maximize recovery of total

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proceeds taking into account the value of such Prepayment Charge and the related
Mortgage Loan or (ii)(A) the enforceability thereof is limited (1) by
bankruptcy, insolvency, moratorium, receivership, or other similar law relating
to creditors' rights generally or (2) due to acceleration in connection with a
foreclosure or other involuntary payment, or (B) the enforceability is otherwise
limited or prohibited by applicable law. For the avoidance of doubt, the
Servicer may waive a Prepayment Charge in connection with a short sale or short
payoff on a defaulted Mortgage Loan. If the Servicer has waived all or a portion
of a Prepayment Charge relating to a Principal Prepayment, other than as
provided above, the Servicer shall deliver to the Trustee no later than the
Business Day immediately preceding the next Distribution Date, for deposit into
the Certificate Account the amount of such Prepayment Charge (or such portion
thereof as had been waived) for distribution in accordance with the terms of
this Agreement; provided, however, the Servicer shall not have any obligation to
pay the amount of any uncollected Prepayment Charge under this Section 4.09 if
the Servicer did not have a copy of the related Mortgage Note, the Servicer
requested via email a copy of the same from the Trustee and the Trustee failed
to provide such a copy within two (2) Business Days of receipt of such request.
If the Servicer has waived all or a portion of a Prepayment Charge for any
reason, it shall promptly notify the Trustee thereof and shall include such
information in any monthly reports it provides the Trustee. Notwithstanding any
provision in this Agreement to the contrary, in the event the Prepayment Charge
payable under the terms of the Mortgage Note is different from the amount of the
Prepayment Charge set forth in the Mortgage Loan Schedule or other information
provided to the Servicer, the Servicer shall rely conclusively on the Prepayment
Charge as set forth under the terms of the Mortgage Note. To the extent the
Prepayment Charge payable under the terms of the Mortgage Note is less than the
amount of the Prepayment Charge set forth in the Mortgage Loan Schedule or other
information provided to the Servicer, the Servicer shall not have any liability
or obligation with respect to such difference, and in addition shall not have
any liability or obligation to pay the amount of any uncollected Prepayment
Charge if the failure to collect such amount is the direct result of inaccurate
or incomplete information on the Mortgage Loan Schedule.

            SECTION 4.10 Servicer to Cooperate.

            The Servicer shall provide to the Trustee the information set forth
in Exhibit Z hereto in such form as the Trustee shall reasonably request with
respect to each Mortgage Loan no later than twelve noon on the Servicer Data
Remittance Date to enable the Trustee to calculate the amounts to be distributed
to each Class of Certificates and otherwise perform its distribution, accounting
and reporting requirements hereunder.

            SECTION 4.11 [Reserved]

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                                    ARTICLE V

                                THE CERTIFICATES

            SECTION 5.01 The Certificates.

            The Certificates shall be substantially in the forms attached hereto
as exhibits. The Certificates shall be issuable in registered form, in the
minimum denominations, integral multiples in excess thereof (except that one
Certificate in each Class may be issued in a different amount which must be in
excess of the applicable minimum denomination) and aggregate denominations per
Class set forth in the Preliminary Statement.

            Subject to Section 9.02 respecting the final distribution on the
Certificates, on each Distribution Date the Trustee shall make distributions to
each Certificateholder of record on the preceding Record Date either (x) by wire
transfer in immediately available funds to the account of such holder at a bank
or other entity having appropriate facilities therefor, if (i) such Holder has
so notified the Trustee at least five Business Days prior to the related Record
Date and (ii) such Holder shall hold (A) a Notional Amount Certificate, (B) 100%
of the Class Principal Balance of any Class of Certificates or (C) Certificates
of any Class with aggregate principal Denominations of not less than $1,000,000
or (y) by check mailed by first class mail to such Certificateholder at the
address of such holder appearing in the Certificate Register.

            The Certificates shall be executed by manual or facsimile signature
on behalf of the Trustee by an authorized officer upon the written order of the
Depositor. Certificates bearing the manual or facsimile signatures of
individuals who were, at the time such signatures were affixed, authorized to
sign on behalf of the Trustee shall bind the Trustee, notwithstanding that such
individuals or any of them have ceased to be so authorized prior to the
countersignature and delivery of any 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 countersigned
by the Trustee by manual signature, and such countersignature upon any
Certificate shall be conclusive evidence, and the only evidence, that such
Certificate has been duly executed and delivered hereunder. All Certificates
shall be dated the date of their countersignature. On the Closing Date, the
Trustee shall countersign the Certificates to be issued at the written direction
of the Depositor, or any affiliate thereof.

            The Depositor shall provide, or cause to be provided, to the Trustee
on a continuous basis, an adequate inventory of Certificates to facilitate
transfers.

            The Trustee shall have no obligation or duty to monitor, determine
or inquire as to compliance with any restriction or transfer imposed under
Article V of this Agreement or under applicable law with respect to any transfer
of any Certificate, or any interest therein, other than to require delivery of
the certification(s) and/or opinions of counsel described in Article V
applicable with respect to changes in registration of record ownership of
Certificates in the Certificate Register. The Trustee shall have no liability
for transfers, including transfers made through the book-entry facilities of the
Depository or between or

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among Depository Participants or beneficial owners of the Certificates made in
violation of applicable restrictions.

            SECTION 5.02 Certificate Register; Registration of Transfer and
                         Exchange of Certificates.

            (a) The Trustee shall maintain, or cause to be maintained in
accordance with the provisions of Section 5.06, a Certificate Register for the
Trust Fund in which, subject to the provisions of subsections (b) and (c) below
and 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. Upon surrender for registration of transfer of
any Certificate, the Trustee shall execute and deliver, in the name of the
designated transferee or transferees, one or more new Certificates of the same
Class and aggregate Percentage Interest.

            At the option of a Certificateholder, Certificates may be exchanged
for other Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest upon surrender of the
Certificates to be exchanged at the office or agency of the Trustee. Whenever
any Certificates are so surrendered for exchange, the Trustee shall execute,
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 be accompanied by a written
instrument of transfer in form satisfactory to the Trustee duly executed by the
holder thereof or his attorney duly authorized in writing.

            No service charge to the Certificateholders shall be made for any
registration of transfer or exchange of Certificates, but 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 may be required.

            All Certificates surrendered for registration of transfer or
exchange shall be canceled and subsequently disposed of by the Trustee in
accordance with the Trustee's customary procedures.

            (b) No transfer of a Private Certificate shall be made unless such
transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under said Act and such state securities laws. Except
in connection with any transfer of a Private Certificate by the Depositor to any
affiliate, in the event that a transfer is to be made in reliance upon an
exemption from the Securities Act and such laws, in order to assure compliance
with the Securities Act and such laws, the Certificateholder desiring to effect
such transfer and such Certificateholder's prospective transferee shall each
certify to the Trustee in writing the facts surrounding the transfer in
substantially the form set forth in Exhibit J (the "Transferor Certificate") and
(i) deliver a letter in substantially the form of either (A) Exhibit K (the
"Investment Letter") provided that all of the Class X Certificates of a Class
shall be transferred to one investor or the Depositor otherwise consents to such
transfer, or (B) Exhibit L (the "Rule 144A Letter") or (ii) there shall be
delivered to the Trustee at the expense of the transferor an Opinion of Counsel
that such transfer may be made pursuant to an exemption from the Securities Act.
The Depositor shall provide to any Holder of a Private Certificate and any
prospective transferee designated by any such Holder, information regarding the
related

                                      103
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Certificates and the Mortgage Loans and such other information as shall be
necessary to satisfy the condition to eligibility set forth in Rule 144A(d)(4)
for transfer of any such Certificate without registration thereof under the
Securities Act pursuant to the registration exemption provided by Rule 144A. The
Trustee and the Servicer shall cooperate with the Depositor in providing the
Rule 144A information referenced in the preceding sentence, including providing
to the Depositor such information regarding the Certificates, the Mortgage Loans
and other matters regarding the Trust Fund as the Depositor shall reasonably
request to meet its obligation under the preceding sentence. Each Holder of a
Private Certificate desiring to effect such transfer shall, and does hereby
agree to, indemnify the Trustee, the Depositor, the Seller and the Servicer
against any liability that may result if the transfer is not so exempt or is not
made in accordance with such federal and state laws.

            No transfer of an ERISA-Restricted Certificate shall be made unless
the Trustee shall have received either (i) a representation from the transferee
of such Certificate, acceptable to and in form and substance satisfactory to the
Trustee (in the event such Certificate is a Private Certificate or a Residual
Certificate, such requirement is satisfied only by the Trustee's receipt of a
representation letter from the transferee substantially in the form of Exhibit K
or Exhibit L, as applicable), to the effect that such transferee is not an
employee benefit plan or arrangement subject to Section 406 of ERISA or a plan
subject to Section 4975 of the Code, nor a person acting on behalf of any such
plan or arrangement nor using the assets of any such plan or arrangement to
effect such transfer or (ii) in the case of any such ERISA-Restricted
Certificate presented for registration in the name of an employee benefit plan
subject to ERISA, or a plan or arrangement subject to Section 4975 of the Code
(or comparable provisions of any subsequent enactments), or a trustee of any
such plan or any other person acting on behalf of any such plan or arrangement
or using such plan's or arrangement's assets, an Opinion of Counsel satisfactory
to the Trustee, which Opinion of Counsel shall not be an expense of either the
Trustee or the Trust Fund, addressed to the Trustee for the benefit of the
Trustee, the Depositor and the Servicer and on which they may rely, to the
effect that the purchase or holding of such ERISA-Restricted Certificate will
not result in the assets of the Trust Fund being deemed to be "plan assets" and
subject to the prohibited transaction provisions of ERISA and the Code and will
not subject the Trustee, the Depositor or the Servicer to any obligation in
addition to those expressly undertaken in this Agreement or to any liability.
Notwithstanding anything else to the contrary herein, any purported transfer of
an ERISA-Restricted Certificate to or on behalf of an employee benefit plan
subject to ERISA or to the Code without the delivery to the Trustee of an
Opinion of Counsel satisfactory to the Trustee as described above shall be void
and of no effect.

            To the extent permitted under applicable law (including, but not
limited to, ERISA), the Trustee shall be under no liability to any Person for
any registration of transfer of any ERISA-Restricted Certificate that is in fact
not permitted by this Section 5.02(b) or for making any payments due on such
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 transfer was
registered by the Trustee in accordance with the foregoing requirements.

            (c) 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
the rights of each Person acquiring any Ownership Interest in a Residual
Certificate are expressly subject to the following provisions:

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            (i) Each Person holding or acquiring any Ownership Interest in a
      Residual 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 Ownership Interest in a Residual Certificate may be
      registered on the Closing Date or thereafter transferred, and the Trustee
      shall not register the Transfer of any Residual Certificate unless, in
      addition to the certificates required to be delivered to the Trustee under
      subparagraph (b) above, the Trustee shall have been furnished with an
      affidavit (a "Transfer Affidavit") of the initial owner or the proposed
      transferee in the form attached hereto as Exhibit I.

            (iii) Each Person holding or acquiring any Ownership Interest in a
      Residual Certificate shall agree (A) to obtain a Transfer Affidavit from
      any other Person to whom such Person attempts to Transfer its Ownership
      Interest in a Residual Certificate, (B) to obtain a Transfer Affidavit
      from any Person for whom such Person is acting as nominee, trustee or
      agent in connection with any Transfer of a Residual Certificate and (C)
      not to Transfer its Ownership Interest in a Residual Certificate or to
      cause the Transfer of an Ownership Interest in a Residual Certificate to
      any other Person if it has actual knowledge that such Person is not a
      Permitted Transferee.

            (iv) Any attempted or purported Transfer of any Ownership Interest
      in a Residual Certificate in violation of the provisions of this Section
      5.02(c) shall be absolutely null and void and shall vest no rights in the
      purported Transferee. If any purported transferee shall become a Holder of
      a Residual Certificate in violation of the provisions of this Section
      5.02(c), then the last preceding Permitted Transferee shall be restored to
      all rights as Holder thereof retroactive to the date of registration of
      Transfer of such Residual Certificate. The Trustee shall be under no
      liability to any Person for any registration of Transfer of a Residual
      Certificate that is in fact not permitted by Section 5.02(b) and this
      Section 5.02(c) or for making any payments due on such 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 Transfer was
      registered after receipt of the related Transfer Affidavit, Transferor
      Certificate and either the Rule 144A Letter or the Investment Letter. The
      Trustee shall be entitled but not obligated to recover from any Holder of
      a Residual Certificate that was in fact not a Permitted Transferee at the
      time it became a Holder or, at such subsequent time as it became other
      than a Permitted Transferee, all payments made on such Residual
      Certificate at and after either such time. Any such payments so recovered
      by the Trustee shall be paid and delivered by the Trustee to the last
      preceding Permitted Transferee of such Certificate.

            (v) The Depositor shall use its best efforts to make available, upon
      receipt of written request from the Trustee, all information necessary to
      compute any tax imposed under Section 860E(e) of the Code as a result of a
      Transfer of an Ownership Interest in a Residual Certificate to any Holder
      who is not a Permitted Transferee.

            The restrictions on Transfers of a Residual Certificate set forth in
this Section 5.02(c) shall cease to apply (and the applicable portions of the
legend on a Residual Certificate may be deleted) with respect to Transfers
occurring after delivery to the Trustee of an Opinion of Counsel, which Opinion
of

                                      105
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Counsel shall not be an expense of the Trust Fund, the Trustee, the Seller or
the Servicer, to the effect that the elimination of such restrictions will not
cause the Trust Fund hereunder to fail to qualify as a REMIC at any time that
the Certificates are outstanding or result in the imposition of any tax on the
Trust Fund, a Certificateholder or another Person. Each Person holding or
acquiring any Ownership Interest in a Residual Certificate hereby consents to
any amendment of this Agreement which, based on an Opinion of Counsel furnished
to the Trustee, is reasonably necessary (a) to ensure that the record ownership
of, or any beneficial interest in, a Residual Certificate is not transferred,
directly or indirectly, to a Person that is not a Permitted Transferee and (b)
to provide for a means to compel the Transfer of a Residual Certificate which is
held by a Person that is not a Permitted Transferee to a Holder that is a
Permitted Transferee.

            (d) The preparation and delivery of all certificates and opinions
referred to above in this Section 5.02 in connection with transfer shall be at
the expense of the parties to such transfers.

            (e) Except as provided below, the Book-Entry Certificates shall at
all times remain registered in the name of the Depository or its nominee and at
all times: (i) registration of the Certificates may not be transferred by the
Trustee except to another Depository; (ii) the Depository shall maintain
book-entry records with respect to the Certificate Owners and with respect to
ownership and transfers of such Book-Entry Certificates; (iii) ownership and
transfers of registration of the Book-Entry Certificates on the books of the
Depository shall be governed by applicable rules established by the Depository;
(iv) the Depository may collect its usual and customary fees, charges and
expenses from its Depository Participants; (v) the Trustee shall deal with the
Depository, Depository Participants and indirect participating firms as
representatives of the Certificate Owners of the Book-Entry Certificates for
purposes of exercising the rights of holders under this Agreement, and requests
and directions for and votes of such representatives shall not be deemed to be
inconsistent if they are made with respect to different Certificate Owners; and
(vi) the Trustee may rely and shall be fully protected in relying upon
information furnished by the Depository with respect to its Depository
Participants and furnished by the Depository Participants with respect to
indirect participating firms and persons shown on the books of such indirect
participating firms as direct or indirect Certificate Owners.

            All transfers by Certificate Owners of Book-Entry Certificates shall
be made in accordance with the procedures established by the Depository
Participant or brokerage firm representing such Certificate Owner. Each
Depository Participant shall only transfer 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.

            If (x) (i) the Depository or the Depositor advises the Trustee in
writing that the Depository is no longer willing or able to properly discharge
its responsibilities as Depository, and (ii) the Trustee or the Depositor is
unable to locate a qualified successor, (y) the Depositor, with the consent of
the Depository Participants, advises the Trustee in writing that it elects to
terminate the book-entry system through the Depository or (z) after the
occurrence of an Event of Default, Certificate Owners representing at least 51%
of the Certificate Balance of the Book-Entry Certificates together advise the
Trustee and the Depository through the Depository Participants 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

                                      106
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of definitive, fully-registered Certificates (the "Definitive Certificates") to
Certificate Owners requesting the same. Upon surrender to the Trustee of the
related Class of Certificates by the Depository, accompanied by the instructions
from the Depository for registration, the Trustee shall issue the Definitive
Certificates.

            In addition, if an Event of Default has occurred and is continuing,
each Certificate Owner materially adversely affected thereby may at its option
request a Definitive Certificate evidencing such Certificate Owner's Percentage
Interest in the related Class of Certificates. In order to make such request,
such Certificate Owner shall, subject to the rules and procedures of the
Depository, provide the Depository or the related Depository Participant with
directions for the Trustee to exchange or cause the exchange of the Certificate
Owner's interest in such Class of Certificates for an equivalent Percentage
Interest in fully registered definitive form. Upon receipt by the Trustee of
instruction from the Depository directing the Trustee to effect such exchange
(such instructions to contain information regarding the Class of Certificates
and the Certificate Balance being exchanged, the Depository Participant account
to be debited with the decrease, the registered holder of and delivery
instructions for the Definitive Certificates and any other information
reasonably required by the Trustee), (i) the Trustee shall instruct the
Depository to reduce the related Depository Participant's account by the
aggregate Certificate Balance of the Definitive Certificates, (ii) the Trustee
shall execute, authenticate and deliver, in accordance with the registration and
delivery instructions provided by the Depository, a Definitive Certificate
evidencing such Certificate Owner's Percentage Interest in such Class of
Certificates and (iii) the Trustee shall execute and authenticate a new
Book-Entry Certificate reflecting the reduction in the aggregate Class Principal
Balance of such Class of Certificates by the amount of the Definitive
Certificates.

            None of the Seller, the Servicer, the Depositor or the Trustee shall
be liable for any delay in delivery of any instruction required under this
section and each may conclusively rely on, and shall be protected in relying on,
such instructions. The Depositor shall provide the Trustee with an adequate
inventory of certificates to facilitate the issuance and transfer of Definitive
Certificates. 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; provided
that the Trustee shall not by virtue of its assumption of such obligations
become liable to any party for any act or failure to act of the Depository.

            SECTION 5.03 Mutilated, Destroyed, Lost or Stolen Certificates.

            If (a) any mutilated Certificate is surrendered to the Trustee, or
the Trustee receives evidence to its satisfaction of the destruction, loss or
theft of any Certificate and (b) there is delivered to the Trustee such security
or indemnity as may be required by it to hold it harmless, then, in the absence
of notice to the Trustee that such Certificate has been acquired by a bona fide
purchaser, the Trustee shall execute, countersign and deliver, in exchange for
or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
Certificate of like Class, tenor and Percentage Interest. In connection with the
issuance of any new Certificate under this Section 5.03, 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 Trustee) connected therewith. Any replacement
Certificate issued

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pursuant to this Section 5.03 shall constitute complete and indefeasible
evidence of ownership, 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 Servicer, the Trustee and any agent of the Servicer or the
Trustee may treat the Person in whose name any Certificate is registered as the
owner of such Certificate for the purpose of receiving distributions as provided
in this Agreement and for all other purposes whatsoever, and none of the
Servicer, the Trustee or any agent of the Servicer or the Trustee shall be
affected by any notice to the contrary.

            SECTION 5.05 Access to List of Certificateholders' Names and
Addresses.

            If three or more Certificateholders (a) request such information in
writing from the Trustee, (b) state that such Certificateholders desire to
communicate with other Certificateholders with respect to their rights under
this Agreement or under the Certificates, and (c) provide a copy of the
communication which such Certificateholders propose to transmit, or if the
Depositor or the Servicer shall request such information in writing from the
Trustee, then the Trustee shall, within ten Business Days after the receipt of
such request, provide the Depositor, the Servicer or such Certificateholders at
such recipients' expense the most recent list of the Certificateholders of such
Trust Fund held by the Trustee, if any. The Depositor and every
Certificateholder, by receiving and holding a Certificate, agree that the
Trustee shall not be held accountable by reason of the disclosure of any such
information as to the list of the Certificateholders hereunder, regardless of
the source from which such information was derived.

            SECTION 5.06 Maintenance of Office or Agency.

            The Trustee will maintain or cause to be maintained at its expense
an office or offices or agency or agencies in New York, New York where
Certificates may be surrendered for registration of transfer or exchange. The
Trustee initially designates its Corporate Trust Office for such purposes. The
Trustee will give prompt written notice to the Certificateholders of any change
in such location of any such office or agency.

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                                   ARTICLE VI

                   THE DEPOSITOR, THE SELLER AND THE SERVICER

            SECTION 6.01 Respective Liabilities of the Depositor, the Sellers
                         and the Servicer.

            The Depositor, the Seller and the Servicer shall each be liable in
accordance herewith only to the extent of the obligations specifically and
respectively imposed upon and undertaken by them herein.

            SECTION 6.02 Merger or Consolidation of the Depositor, the Seller or
                         the Servicer.

      The Depositor, the Seller and the Servicer will each keep in full effect
its existence, rights and franchises as a corporation under the laws of the
United States or under the laws of one of the states thereof or as a federally
chartered savings bank organized under the laws of the United States and will
each obtain and preserve its qualification to do business as a foreign
corporation in each jurisdiction in which such qualification is or shall be
necessary to protect the validity and enforceability of this Agreement, or any
of the Mortgage Loans and to perform its respective duties under this Agreement.
Notwithstanding the foregoing, the Seller or the Servicer may be merged or
consolidated into another Person in accordance with the following paragraph.

            Any Person into which the Depositor, the Seller or the Servicer may
be merged or consolidated, or any Person resulting from any merger or
consolidation to which the Depositor, the Seller or the Servicer shall be a
party, or any person succeeding to the business of the Depositor, the Seller or
the Servicer, shall be the successor of the Depositor, the Seller or the
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 with respect to a merger or consolidation of the Servicer shall
be an institution which is a Fannie Mae or Freddie Mac approved company in good
standing. In addition to the foregoing, there must be delivered to the Trustee a
letter from each of the Rating Agencies, to the effect that such merger,
conversion or consolidation of the Servicer will not result in a
disqualification, withdrawal or downgrade of the then current rating of any of
the Certificates.

            SECTION 6.03 Limitation on Liability of the Depositor, the Seller,
                         the Servicer and Others.

            None of the Depositor, the Seller, the Servicer nor any of the
directors, officers, employees or agents of the Depositor, the Seller or the
Servicer shall be under any liability to 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 Seller, the Servicer or any such
Person against any breach of representations or warranties made by it herein or
protect the Depositor, the Seller, the Servicer or any such Person from any
liability which would otherwise be imposed by reasons of willful misfeasance,
bad faith or negligence in the performance of duties or by

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reason of reckless disregard of obligations and duties hereunder. The Depositor,
the Seller, the Servicer and any director, officer, employee or agent of the
Depositor, the Seller or the Servicer 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 Seller, the Trustee, the
Servicer and any director, officer, employee or agent of the Depositor, the
Seller, the Trustee, or the Servicer shall be indemnified by the Trust Fund out
of the Collection Account 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 incurred by
reason of willful misfeasance, bad faith or negligence in the performance of its
duties hereunder or by reason of reckless disregard of obligations and duties
hereunder. None of the Depositor, the Seller or the Servicer shall be under any
obligation to appear in, prosecute or defend any legal action that is not
incidental to its respective duties hereunder and which in its opinion may
involve it in any expense or liability; provided, however, that any of the
Depositor, the Seller or the Servicer may in its discretion undertake any such
action that it may deem necessary or desirable in respect of this Agreement and
the rights and duties of the parties hereto and interests of the Trustee and the
Certificateholders hereunder. In such event, the legal expenses and costs of
such action and any liability resulting therefrom shall be expenses, costs and
liabilities of the Trust Fund, and the Depositor, the Seller and the Servicer
shall be entitled to be reimbursed therefor out of the Collection Account. The
Servicer's right to indemnity or reimbursement pursuant to this Section 6.03
shall survive the resignation or termination of the Servicer as set forth
herein.

            SECTION 6.04 Limitation on Resignation of the Servicer.

            (a) Subject to Section 6.04(b) below, the Servicer shall not resign
from the obligations and duties hereby imposed on it except (a)(i) upon
appointment, pursuant to the provisions of Section 7.02, of a successor servicer
which (x) has a net worth of not less than $10,000,000 and (y) is a Fannie Mae
or Freddie Mac approved company in good standing and (ii) receipt by the Trustee
of a letter from each Rating Agency that such a resignation and appointment will
not result in a qualification, withdrawal or downgrading of the then current
rating of any of the Certificates, or (b) upon determination that its duties
hereunder are no longer permissible under applicable law. Any such determination
under clause (b) permitting the resignation of the Servicer shall be evidenced
by an Opinion of Counsel to such effect delivered to the Trustee. No such
resignation shall become effective until the Trustee or a successor servicer
shall have assumed the Servicer's responsibilities, duties, liabilities and
obligations hereunder and the requirements of Section 7.02 have been satisfied.

            (b) Notwithstanding the foregoing, at the Seller's request, so long
as it is the owner of the servicing rights, Wilshire shall resign upon the
Seller's selection and appointment of a successor servicer; provided that the
Seller delivers to the Trustee the letter required by Section 6.04(a)(ii) above.

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                                   ARTICLE VII

                                     DEFAULT

            SECTION 7.01 Events of Default.

            "Event of Default", wherever used herein, means any one of the
following events:

            (i) any failure by the Servicer to make any deposit or payment
      required pursuant to this Agreement which continues unremedied for a
      period of one Business Day (or, in the case of any such failure to make
      any deposit or payment due to any outbreak or escalation of hostilities,
      declaration by the United States of a national emergency or war or other
      calamity or crisis or act of god, for a period of three Business Days)
      after the date upon which written notice of such failure, requiring the
      same to be remedied, shall have been given to the Servicer by the Trustee
      or the Depositor, or to the Servicer and the Trustee by the Holders of
      Certificates having not less than 25% of the Voting Rights evidenced by
      the Certificates; or

            (ii) any failure by the Servicer duly to observe or perform in any
      material respect any other of the covenants or agreements on the part of
      the Servicer set forth in this Agreement, which failure or breach (a)
      materially affects the rights of the Certificateholders and (b) continues
      unremedied for a period of 30 days after the date on which written notice
      of such failure or breach, requiring the same to be remedied, shall have
      been given to the Servicer by the Trustee or the Depositor, or to the
      Servicer and the Trustee by the Holders of Certificates having not less
      than 25% of the Voting Rights evidenced by the Certificates; or

            (iii) if a representation or warranty set forth in Section 2.03(b),
      (c) or (d), as applicable, hereof shall prove to be materially incorrect
      as of the time made in any respect that materially and adversely affects
      interests of the Certificateholders, and the circumstances or condition in
      respect of which such representation or warranty was incorrect shall not
      have been eliminated or cured, within 30 days (or, if such breach is not
      capable of being cured within 30 days and provided that the Servicer
      believes in good faith that such breach can be cured and is diligently
      pursuing the cure thereof, within 90 days) after the date on which written
      notice thereof shall have been given to the Servicer by the Trustee for
      the benefit of the Certificateholders or by the Depositor; or

            (iv) failure by the Servicer to maintain, if required, its license
      to do business in any jurisdiction where the related Mortgaged Property is
      located; or

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

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            (vi) the Servicer shall consent to the appointment of a conservator
      or receiver or liquidator in any insolvency, readjustment of debt,
      marshaling of assets and liabilities or similar proceedings of or relating
      to the Servicer or of or relating to all or substantially all of its
      property; or

            (vii) any failure of the Servicer to make any Advance, to the extent
      required under Section 4.01 in the manner and at the time required to be
      made from its own funds pursuant to this Agreement and after receipt of
      notice from the Trustee, which failure continues unremedied after the
      close of business on the Business Day immediately preceding the related
      Distribution Date; or

            (viii) the Servicer shall admit in writing its inability to pay its
      debts generally as they become due, file a petition to take advantage of
      or commence a voluntary case under, any applicable insolvency, bankruptcy
      or reorganization statute, make an assignment for the benefit of its
      creditors, voluntarily suspend payment of its obligations or cease its
      normal business operations for three Business Days; or

            (ix) (a) either (I) the servicer rankings or ratings of the Servicer
      are downgraded two or more levels below the level in effect on the Closing
      Date by one or more of the Rating Agencies rating the Certificates or (II)
      the servicer rankings or ratings for the Servicer are downgraded to "below
      average" status by one or more of the Rating Agencies rating the
      Certificates or (b) one or more Classes of the Certificates are downgraded
      or placed on negative watch due in whole or in part to the performance or
      servicing of the Servicer.

            Other than an Event of Default resulting from a failure of the
Servicer to make any Advance, if an Event of Default described in clauses (i)
through (viii) of this Section shall occur, then, and in each and every such
case, so long as such Event of Default shall not have been remedied, the Trustee
may, or at the direction of the Holders of Certificates evidencing not less than
51% of the Voting Rights evidenced by the Certificates, the Trustee shall by
notice in writing to the Servicer (with a copy to each Rating Agency), terminate
all of the rights and obligations of the Servicer under this Agreement and in
and to the related Mortgage Loans and the proceeds thereof, other than its
rights as a Certificateholder hereunder (other than the rights to reimbursement
for Advances and Servicing Advances previously made pursuant to this Agreement,
the right to accrued and unpaid Servicing Fees and the rights under Section 6.03
with respect to events occurring prior to such termination). If an Event of
Default results from the failure of the Servicer to make an Advance, the Trustee
shall prior to the Distribution Date occurring in the succeeding calendar month,
by notice in writing to the Servicer and the Depositor (with a copy to each
Rating Agency), terminate all of the rights and obligations of the Servicer
under this Agreement prior to the Distribution Date occurring in the succeeding
calendar month and in and to the related Mortgage Loans and the proceeds
thereof, other than its rights as a Certificateholder hereunder. If an Event of
Default described in clause (ix) of this Section occurs, the Trustee shall, at
the direction of the Seller, by notice in writing to the Servicer, terminate all
of the rights and obligations of the Servicer under this Agreement (other than
rights to reimbursement for Advances and Servicing Advances previously made, as
provided in Section 3.08, the right to accrued and unpaid Servicing Fees and the
rights under Section 6.03 with respect to events occurring prior to such
termination) and shall appoint as successor Servicer the entity selected by

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the Seller in accordance with Section 7.02; provided the Seller shall first
furnish to the Trustee a letter from each Rating Agency that the appointment of
such successor will not result in a downgrading of the rating of any of the
Certificates.

            Upon receipt by the Servicer of such written notice of termination,
all authority and power of the Servicer under this Agreement, whether with
respect to the Mortgage Loans or otherwise, shall pass to and be vested in the
Trustee or its nominee. Upon written request from the Trustee, the Servicer
shall prepare, execute and deliver to the successor entity designated by the
Trustee any and all documents and other instruments, place in such successor's
possession all related Mortgage Files, and do or cause to be done all other acts
or things necessary or appropriate to effect the purposes of such notice of
termination, including but not limited to the transfer and endorsement or
assignment of the Mortgage Loans and related documents, at the Servicer's sole
expense. The Servicer shall cooperate with the Trustee and such successor in
effecting the termination of the Servicer's responsibilities and rights
hereunder, including without limitation, the transfer to such successor for
administration by it of all cash amounts which shall at the time be credited by
the Servicer to the Collection Account or Escrow Account or thereafter received
with respect to the Mortgage Loans. The Trustee shall thereupon make any
Advance. The Trustee is hereby authorized and empowered to execute and deliver,
on behalf of the Servicer, as attorney-in-fact or otherwise, any and all
documents and other instruments, and to do or accomplish all other acts or
things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement or assignment of
the Mortgage Loans and related documents, or otherwise.

            SECTION 7.02 Trustee to Act; Appointment of Successor.

            On and after the time the Servicer receives a notice of termination
pursuant to Section 7.01 of this Agreement or the resignation of the Servicer
pursuant to Section 6.04, the Trustee shall, subject to and to the extent
provided herein, be the successor to the Servicer, but only in its capacity as
servicer under this Agreement, and not in any other, and the transactions set
forth herein and shall be subject to all the responsibilities, duties and
liabilities relating thereto placed on the Servicer by the terms and provisions
hereof and applicable law including the obligation to make Advances pursuant to
Section 4.01. As compensation therefor, the Trustee shall be entitled to all
funds relating to the Mortgage Loans that the Servicer would have been entitled
to charge to the Collection Account, provided that the terminated Servicer shall
nonetheless be entitled to payment or reimbursement as provided in Section 3.08
to the extent that such payment or reimbursement relates to the period prior to
termination of the Servicer. Notwithstanding the foregoing, if the Trustee has
become the successor to the Servicer in accordance with Section 7.01, the
Trustee may, if it shall be unwilling to so act, or shall, if it is prohibited
by applicable law from making Advances pursuant to 4.01 hereof, or if it is
otherwise unable to so act, appoint, or petition a court of competent
jurisdiction to appoint, any established mortgage loan servicing institution the
appointment of which does not adversely affect the then current rating of the
Certificates by each Rating Agency, as the successor to the Servicer hereunder
in the assumption of all or any part of the responsibilities, duties or
liabilities of the Servicer hereunder. Any successor to the Servicer shall be an
institution which is a Fannie Mae or Freddie Mac approved seller/servicer for
first and second loans in good standing, which has a net worth of at least
$10,000,000, which is willing to service the related Mortgage Loans and which
executes and delivers to the Depositor and the Trustee an agreement accepting
such delegation and assignment, containing an assumption by such Person of the
rights, powers, duties,

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responsibilities, obligations and liabilities of the Servicer (other than
liabilities of the Servicer under Section 6.03 hereof incurred prior to
termination of the Servicer under Section 7.01 hereunder), with like effect as
if originally named as a party to this Agreement; provided that each Rating
Agency acknowledges that its rating of the Certificates in effect immediately
prior to such assignment and delegation will not be qualified, withdrawn or
downgraded as a result of such assignment and delegation. Pending appointment of
a successor to the Servicer hereunder, the Trustee, unless the Trustee is
prohibited by law from so acting, shall, subject to the limitations described
herein, act in such capacity as hereinabove provided. In connection with such
appointment and assumption, the Trustee may make such arrangements for the
compensation of such successor out of payments on the Mortgage Loans as it and
such successor shall agree; provided, however, that no such compensation shall
be in excess of the Servicing Fee. The Trustee and such successor shall take
such action, consistent with this Agreement, as shall be necessary to effectuate
any such succession. Neither the Trustee nor any other successor servicer shall
be deemed to be in default by reason of any failure to make, or any delay in
making, any distribution hereunder or any portion thereof or any failure to
perform, or any delay in performing, any duties or responsibilities hereunder,
in either case caused by the failure of the Servicer to deliver or provide, or
any delay in delivering or providing, any cash, information, documents or
records to it.

            In connection with the termination or resignation of the Servicer
hereunder, either (i) the successor servicer, including the Trustee if the
Trustee is acting as successor Servicer, shall represent and warrant that it is
a member of MERS in good standing and shall agree to comply in all material
respects with the rules and procedures of MERS in connection with the servicing
of the Mortgage Loans that are registered with MERS, in which case the
predecessor Servicer shall cooperate with the successor Servicer in causing MERS
to revise its records to reflect the transfer of servicing to the successor
Servicer as necessary under MERS' rules and regulations, or (ii) the predecessor
Servicer shall cooperate with the successor Servicer in causing MERS to execute
and deliver an assignment of Mortgage in recordable form to transfer the
Mortgage from MERS to the Trustee and to execute and deliver such other notices,
documents and other instruments as may be necessary or desirable to effect a
transfer of such Mortgage Loan or servicing of such Mortgage Loan on the MERS(R)
System to the successor Servicer. The predecessor Servicer shall file or cause
to be filed any such assignment in the appropriate recording office. The
predecessor Servicer shall bear any and all fees of MERS, costs of preparing any
assignments of Mortgage, and fees and costs of filing any assignments of
Mortgage that may be required under this subsection.

            Any successor to the Servicer shall give notice to the Mortgagors of
such change of servicer and shall, during the term of its service as servicer,
maintain in force the policy or policies that the Servicer is required to
maintain pursuant to this Agreement.

            SECTION 7.03 Notification to Certificateholders.

            (a) Upon any termination of or appointment of a successor to the
Servicer, the Trustee shall give prompt written notice thereof to
Certificateholders and to each Rating Agency.

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            (b) Within 60 days after the occurrence of any Event of Default, the
Trustee shall transmit by mail to all Certificateholders notice of each such
Event of Default hereunder actually known to the Trustee, unless such Event of
Default shall have been cured or waived.

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                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

            SECTION 8.01 Duties of the Trustee.

            The Trustee, prior to the occurrence of an Event of Default and
after the curing of all Events of Default that may have occurred, shall
undertake to perform such duties and only such duties as are specifically set
forth in this Agreement. In case an Event of Default has occurred and remains
uncured, the Trustee shall exercise such of the rights and powers vested in it
by this Agreement, and use the same degree of care and skill in their exercise
as a prudent person would exercise or use under the circumstances in the conduct
of such person's own affairs.

            The Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to the Trustee that are specifically required to be furnished pursuant to any
provision of this Agreement shall examine them to determine whether they are in
the form required by this Agreement; provided, however, that the Trustee shall
not be responsible for the accuracy or content of any such resolution,
certificate, statement, opinion, report, document, order or other instrument.

            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 willful misconduct; provided, however, that:

            (i) unless an Event of Default actually known to the Trustee shall
      have occurred and be continuing, 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 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 which it believed in good faith to be
      genuine and to have been duly executed by the proper authorities
      respecting any matters arising hereunder;

            (ii) the Trustee shall not be liable for an error of judgment made
      in good faith by a Responsible Officer or Responsible Officers of the
      Trustee, unless it shall be finally proven that the Trustee was negligent
      in ascertaining the pertinent facts; and

            (iii) the Trustee shall not be liable with respect to any action
      taken, suffered or omitted to be taken by it in good faith in accordance
      with the direction of Holders of Certificates evidencing not less than 25%
      of the Voting Rights of Certificates 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 the Trustee under
      this Agreement.

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            SECTION 8.02 Certain Matters Affecting the Trustee.

            Except as otherwise provided in Section 8.01:

            (i) the Trustee may request and conclusively 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 believed by it to be genuine
      and to have been signed or presented by the proper party or parties and
      the Trustee shall have no responsibility to ascertain or confirm the
      genuineness of any signature of any such party or parties;

            (ii) the Trustee may consult with counsel, financial advisers or
      accountants and the advice of any such counsel, financial advisers or
      accountants 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 advice
      or Opinion of Counsel;

            (iii) the Trustee shall not be 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;

            (iv) 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 so to do by
      Holders of Certificates evidencing not less than 25% of the Voting Rights
      allocated to each Class of Certificates;

            (v) the Trustee may execute any of the trusts or powers hereunder or
      perform any duties hereunder either directly or by or through agents,
      affiliates, accountants or attorneys;

            (vi) the Trustee shall not be required to risk or expend its own
      funds or otherwise incur any financial liability in the performance of any
      of its duties or in the exercise of any of its rights or powers hereunder
      if it shall have reasonable grounds for believing that repayment of such
      funds or adequate indemnity against such risk or liability is not assured
      to it;

            (vii) the Trustee shall not be liable for any loss on any investment
      of funds pursuant to this Agreement (other than as issuer of the
      investment security);

            (viii) the Trustee shall not be deemed to have knowledge of an Event
      of Default until a Responsible Officer of the Trustee shall have received
      written notice thereof; and

            (ix) the Trustee shall be under no obligation to exercise any of the
      trusts, 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, pursuant to
      the provisions of this Agreement, unless such Certificateholders shall
      have offered to the Trustee

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      reasonable security or indemnity satisfactory to the Trustee against the
      costs, expenses and liabilities which may be incurred therein or thereby.

            SECTION 8.03 Trustee Not Liable for Certificates or Mortgage Loans.

            The recitals contained herein and in the Certificates shall be taken
as the statements of the Depositor or the Seller, as the case may be, and the
Trustee assumes no responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Agreement or of the
Certificates or of any Mortgage Loan or related document, or of MERS or the
MERS(R) System, other than with respect to the Trustee's execution and
countersignature of the Certificates. The Trustee shall not be accountable for
the use or application by the Depositor or the Servicer of any funds paid to the
Depositor or the Servicer in respect of the Mortgage Loans or deposited in or
withdrawn from the Collection Account by the Depositor or the 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 and may transact business with the Depositor,
the Seller, the Servicer and their affiliates, with the same rights as it would
have if it were not the Trustee.

            SECTION 8.05 Trustee's Fees and Expenses.

            The Trustee, as compensation for its activities hereunder, shall be
entitled to withdraw from the Certificate Account on each Distribution Date
prior to making distributions pursuant to Section 4.02 an amount equal to the
Trustee Fee for such Distribution Date. The Trustee and any director, officer,
employee or agent of the Trustee shall be indemnified by the Depositor and the
Servicer, to the extent such indemnity related to the failure of the Servicer to
perform its servicing obligations in accordance with this Agreement, and held
harmless against any loss, liability or expense (including reasonable attorney's
fees and expenses) (i) incurred in connection with any claim or legal action
relating to (a) this Agreement, (b) the Custodial Agreement, (c) the
Certificates, or (d) the performance of any of the Trustee's duties hereunder,
other than any loss, liability or expense incurred by reason of willful
misfeasance, bad faith or negligence in the performance of any of the Trustee's
duties hereunder or incurred by reason of any action of the Trustee taken at the
direction of the Certificateholders and (ii) resulting from any error in any tax
or information return prepared by the Servicer. Such indemnity shall survive the
termination of this Agreement or the resignation or removal of the Trustee
hereunder. Without limiting the foregoing, the Depositor covenants and agrees,
except as otherwise agreed upon in writing by the Depositor and the Trustee, and
except for any such expense, disbursement or advance as may arise from the
Trustee's negligence, bad faith or willful misconduct, to pay or reimburse the
Trustee, for all reasonable expenses, disbursements and advances incurred or
made by the Trustee in accordance with any of the provisions of this Agreement
with respect to: (A) the reasonable compensation and the expenses and
disbursements of its counsel not associated with the closing of the issuance of
the Certificates, (B) the reasonable compensation, expenses and disbursements of
any accountant, engineer or appraiser that is not regularly employed by the
Trustee, to the extent that the Trustee must engage such persons to perform acts
or services hereunder and (C) printing and engraving expenses in connection with
preparing any Definitive Certificates. Except as

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otherwise provided herein, the Trustee shall not be entitled to payment or
reimbursement for any routine ongoing expenses incurred by the Trustee in the
ordinary course of its duties as Trustee, Registrar or agent for the Tax Matters
Person hereunder or for any other expenses.

            SECTION 8.06 Eligibility Requirements for the Trustee and Custodian.

            The Trustee hereunder shall at all times be a corporation or
association organized and doing business under the laws of a 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, subject
to supervision or examination by federal or state authority and with a credit
rating which would not cause either of the Rating Agencies to reduce their
respective then current Ratings of the Certificates (or having provided such
security from time to time as is sufficient to avoid such reduction) as
evidenced in writing by each Rating Agency. If such corporation or association
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
corporation or association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. 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. The entity serving as
Trustee may have normal banking and trust relationships with the Depositor and
its affiliates or the Servicer and its affiliates; provided, however, that such
entity cannot be an affiliate of the Seller, the Depositor or the Servicer other
than the Trustee in its role as successor to the Servicer.

            SECTION 8.07 Resignation and Removal of the Trustee.

            The Trustee may at any time resign and be discharged from the trusts
hereby created by giving written notice of resignation to the Depositor, the
Seller, the Servicer and each Rating Agency not less than 60 days before the
date specified in such notice, when, subject to Section 8.08, such resignation
is to take effect, and acceptance by a successor trustee in accordance with
Section 8.08 meeting the qualifications set forth in Section 8.06. If no
successor trustee meeting such qualifications shall have been so appointed and
have accepted appointment within 30 days after the giving of such notice of
resignation or removal (as provided below), the resigning or removed 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 thereto by the Depositor, or if at any time the Trustee shall become
incapable of acting, or shall be adjudged as 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, or a tax
is imposed with respect to the Trust Fund by any state in which the Trustee or
the Trust Fund is located and the imposition of such tax would be avoided by the
appointment of a different trustee, then the Depositor may remove the Trustee
and appoint a successor trustee by written instrument, in triplicate, one copy
of which shall be delivered to the Trustee, one copy to the Servicer and the
Seller and one copy to the successor trustee.

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            The Holders of Certificates entitled to at least 51% of the Voting
Rights may at any time remove the Trustee and appoint a successor trustee by
written instrument or instruments, in triplicate, signed by such Holders or
their attorneys-in-fact duly authorized, one complete set of which shall be
delivered by the successor Trustee to the Servicer and the Seller, one complete
set to the Trustee so removed and one complete set to the successor so
appointed. Notice of any removal of the Trustee shall be given to each Rating
Agency by the successor trustee. All costs and expenses incurred by the Trustee
in connection with the removal of the Trustee without cause shall be reimbursed
to the Trustee from amounts on deposit in the Collection Account.

            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
become effective upon 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 and to its predecessor trustee
and the Servicer and the Seller 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 Depositor, the Servicer 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 8.08 unless at the time of such acceptance such successor trustee shall
be eligible under the provisions of Section 8.06 and its appointment shall not
adversely affect the then current rating of the Certificates.

            Upon acceptance of appointment by a successor trustee as provided in
this Section 8.08, the Depositor shall mail notice of the succession of such
trustee hereunder to all Holders of Certificates. 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 the Trustee.

            Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to the business of the Trustee, shall be the successor of
the Trustee hereunder, provided that such corporation shall be eligible under
the provisions of Section 8.06 without the execution or filing of any paper or
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.

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            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 property securing any Mortgage Note may at the
time be located, the 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 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 Fund, and to vest in such Person or Persons, in such capacity and for the
benefit of the Certificateholders, such title to the Trust Fund or any part
thereof, whichever is applicable, and, subject to the other provisions of this
Section 8.10, such powers, duties, obligations, rights and trusts as the
Servicer and the Trustee may consider necessary or desirable. If the Servicer
shall not have joined in such appointment within 15 days after the receipt by it
of a request to do so, or in the case an 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 and no
notice to Certificateholders of the appointment of any co-trustee or separate
trustee shall be required under Section 8.08.

            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) To the extent necessary to effectuate the purposes of 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 (it being understood that such separate trustee or co-trustee is
      not authorized to act separately without the Trustee joining in such act),
      except to the extent that under any law of any jurisdiction in which any
      particular act or acts are to be performed (whether as Trustee hereunder
      or as successor to the Servicer hereunder), the Trustee shall be
      incompetent or unqualified to perform such act or acts, in which event
      such rights, powers, duties and obligations (including the holding of
      title to the applicable 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 such appointment
      shall not, and shall not be deemed to, constitute any such separate
      trustee or co-trustee as agent of the Trustee;

            (iii) The Trustee may at any time accept the resignation of or
      remove any separate trustee or co-trustee; and

            (iv) The Depositor, and not the Trustee, shall be liable for the
      payment of reasonable compensation, reimbursement and indemnification to
      any such 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 separate trustees and co-trustees, when
and as effectively as if given to each of them.

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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 Servicer and the Depositor.

            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 Tax Matters.

            It is intended that the assets with respect to which the REMIC
elections are to be made, as set forth in the Preliminary Statement, shall
constitute, and that the conduct of matters relating to each such segregated
pool of assets shall be such as to qualify such assets as, a "real estate
mortgage investment conduit" as defined in and in accordance with the Trust Fund
Provisions. In furtherance of such intention, the Trustee covenants and agrees
that it shall act as agent (and the Trustee is hereby appointed to act as agent)
for the Tax Matters Person and on behalf of the Trust Fund and that in such
capacity it shall: (a) prepare and file, or cause to be prepared and filed, in a
timely manner, a U.S. Real Estate Mortgage Investment Conduit Income Tax Return
(Form 1066 or any successor form adopted by the Internal Revenue Service) and
prepare and file or cause to be prepared and filed with the Internal Revenue
Service and applicable state or local tax authorities income tax or information
returns for each taxable year with respect to each of REMIC 1, REMIC 2, REMIC 3
and REMIC 4 containing such information and at the times and in the manner as
may be required by the Code or state or local tax laws, regulations, or rules,
and furnish or cause to be furnished to Certificateholders the schedules,
statements or information at such times and in such manner as may be required
thereby; (b) within thirty days of the Closing Date, furnish or cause to be
furnished to the Internal Revenue Service, on Forms 8811 or as otherwise may be
required by the Code, the name, title, address, and telephone number of the
person that the holders of the Certificates may contact for tax information
relating thereto, together with such additional information as may be required
by such form, and update such information at the time or times in the manner
required by the Code; (c) make or cause to be made elections that the assets of
each of REMIC 1, REMIC 2, REMIC 3 and REMIC 4 be treated as a REMIC on the
federal tax return for its first taxable year (and, if necessary, under
applicable state law); (d) prepare and forward, or cause to be prepared and
forwarded, to the Certificateholders and to the Internal Revenue Service and, if
necessary, state tax authorities, all information returns and reports as and
when required to be provided to them in accordance with the REMIC Provisions,
including without limitation, the calculation of any original issue discount
using the Prepayment Assumption; (e) provide information necessary for the
computation of tax imposed on the transfer of a Residual Certificate to a Person
that is not a Permitted Transferee, or an agent (including a broker, nominee or
other middleman) of a Non-Permitted Transferee, or a pass-through entity in
which a Non-Permitted

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Transferee is the record holder of an interest (the reasonable cost of computing
and furnishing such information may be charged to the Person liable for such
tax); (f) to the extent that they are under its control, conduct matters
relating to such assets at all times that any Certificates are outstanding so as
to maintain the status of REMIC 1, REMIC 2, REMIC 3 and REMIC 4 as a REMIC under
the REMIC Provisions; (g) not knowingly or intentionally take any action or omit
to take any action that would cause the termination of the REMIC status of REMIC
1, REMIC 2, REMIC 3 or REMIC 4; (h) pay, from the sources specified in the
fourth paragraph of this Section 8.11, the amount of any federal or state tax,
including prohibited transaction taxes as described below, imposed on the Trust
Fund prior to its termination when and as the same shall be due and payable (but
such obligation shall not prevent the Trustee or any other appropriate Person
from contesting any such tax in appropriate proceedings and shall not prevent
the Trustee from withholding payment of such tax, if permitted by law, pending
the outcome of such proceedings); (i) ensure that federal, state or local income
tax or information returns shall be signed by the Trustee or such other person
as may be required to sign such returns by the Code or state or local laws,
regulations or rules; (j) maintain records relating to the Trust Fund, including
but not limited to the income, expenses, assets and liabilities thereof and the
fair market value and adjusted basis of the assets determined at such intervals
as may be required by the Code, as may be necessary to prepare the foregoing
returns, schedules, statements or information; and (k) as and when necessary and
appropriate, represent the Trust Fund 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 the
Trust Fund, enter into settlement agreements with any governmental taxing
agency, extend any statute of limitations relating to any tax item of the Trust
Fund, and otherwise act on behalf of the Trust Fund in relation to any tax
matter or controversy involving it.

            To the extent that they are under its control, the Servicer shall
conduct matters relating to the assets of each REMIC at all times that any
Certificates are outstanding so as to maintain the status of REMIC 1, REMIC 2,
REMIC 3 and REMIC 4 as a REMIC under the REMIC Provisions. No Servicer shall
knowingly or intentionally take any action that would cause the termination of
the REMIC status of REMIC 1, REMIC 2, REMIC 3 or REMIC 4.

            In order to enable the Trustee to perform its duties as set forth
herein, 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 requests in writing and determines to be relevant for tax purposes to
the valuations and offering prices of the Certificates, including, without
limitation, the price, yield, prepayment assumption and projected cash flows of
the Certificates and the Mortgage Loans. Thereafter, the Depositor shall provide
to the Trustee promptly upon written request therefor any such additional
information or data that the Trustee may, from time to time, reasonably request
in order to enable the Trustee to perform its duties as set forth herein. The
Depositor hereby indemnifies the Trustee for any losses, liabilities, damages,
claims or expenses of the Trustee arising from any errors or miscalculations of
the Trustee that result from any failure of the Depositor to provide, or to
cause to be provided, accurate information or data to the Trustee on a timely
basis.

            In the event that any tax is imposed on "prohibited transactions" of
the Trust Fund as defined in Section 860F(a)(2) of the Code, on the "net income
from foreclosure property" of the Trust Fund as defined in Section 860G(c) of
the Code, on any contribution to the Trust Fund after the Startup

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Day pursuant to Section 860G(d) of the Code, or any other tax is imposed, if not
paid as otherwise provided for herein, such tax shall be paid by (i) the
Trustee, if any such other tax arises out of or results from a breach by the
Trustee of any of its obligations under this Agreement, (ii) the Servicer or the
Seller, in the case of any such minimum tax, if such tax arises out of or
results from a breach by the Servicer or the Seller of any of their obligations
under this Agreement or (iii) the Seller, if any such tax arises out of or
results from the Seller's obligation to repurchase a related Mortgage Loan
pursuant to Section 2.02 or 2.03 or (iv) in all other cases, or in the event
that the Trustee, the Servicer or Seller fails to honor its obligations under
the preceding clauses (i), (ii) or (iii), any such tax will be paid with amounts
otherwise to be distributed to the Certificateholders, as provided in Section
4.02.

            Neither the Servicer nor the Trustee shall enter into any
arrangement by which any of REMIC 1, REMIC 2, REMIC 3 or REMIC 4 will receive a
fee or other compensation for services nor permit any of REMIC 1, REMIC 2, REMIC
3 or REMIC 4 to receive any income from assets other than "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 8.12 Commission Reporting.

            (a) The Trustee and the Servicer shall reasonably cooperate with the
Depositor in connection with the Trust's satisfying the reporting requirements
under the Exchange Act. The Trustee shall prepare on behalf of the Depositor any
Forms 8-K and 10-K customary for similar securities as required by the Exchange
Act and the rules and regulations of the Commission thereunder, and the
Depositor shall sign and the Trustee shall file (via EDGAR) such Forms on behalf
of the Depositor. The Depositor hereby grants to the Trustee a limited power of
attorney to execute 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.

            (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 31st of the
calendar year following the calendar year during which the Closing Date occurs
(or such earlier date as may be required by the Exchange Act and the rules and
regulations of the Commission), the Trustee shall file a Form 10-K, in substance
as required by applicable law or applicable Commission staff's interpretations.
Such Form 10-K shall include as exhibits, the Servicer's annual statement of
compliance described under Section 3.16 and the accountant's report described
under Section 3.17, 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 promptly after they are
delivered to the Trustee. The Trustee shall have no liability with respect to
any failure to properly or timely 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 W (the "Depositor Certification"), which shall be signed by the senior
officer of the Depositor in charge of securitization. The Trustee shall have no
responsibility to file any items other than those specified in this Section
8.12.

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            (c) Not later than 15 calendar days before the date on which the
Depositor's annual report on Form 10-K is required to be filed in accordance
with the Exchange Act and the rules and regulations of the Commission (or, if
such day is not a Business Day, the immediately preceding Business Day), the
Trustee shall sign a certification in the form attached hereto as Exhibit X (the
"Trustee Certification") for the benefit of the Depositor and its officers,
directors and affiliates regarding certain aspects of items 1 through 3 of the
Depositor Certification. In addition, the Trustee shall, subject to the
provisions of Section 8.01 and 8.02 hereof, indemnify and hold harmless the
Depositor and each Person, if any, who "controls" the Depositor within the
meaning of the Securities Act and its officers, directors and affiliates from
and against any losses, damages, penalties, fines, forfeitures, reasonable and
necessary legal fees and related costs, judgments and other costs and expenses
arising out of or based upon a breach of the Trustee's obligations under this
Section 8.12 or any inaccuracy made in the Trustee Certification. If the
indemnification provided for in this Section 8.12(c) is unavailable or
insufficient to hold harmless such Persons, then the Trustee shall contribute to
the amount paid or payable by such Persons as a result of the losses, claims,
damages or liabilities of such Persons in such proportion as is appropriate to
reflect the relative fault of the Depositor on the one hand and the Trustee on
the other. The Trustee acknowledges that the Depositor is relying on the
Trustee's performance of its obligations under this Section 8.12 in order to
perform its obligations under Section 8.12(b) above.

            (d) Not later than 15 calendar days before the date on which the
Depositor's annual report on Form 10-K is required to be filed in accordance
with the Exchange Act and the rules and regulations of the Commission (or, if
such day is not a Business Day, the immediately preceding Business Day), the
Servicer will deliver to the Depositor and the Trustee an Officer's Certificate
for the prior calendar year in substantially the form of Exhibit Y to this
Agreement. The Servicer agrees to indemnify and hold harmless the Depositor, the
Trustee and each Person, if any, who "controls" the Depositor or the Trustee
within the meaning of the Securities Act and their respective 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, fees and expenses that such Person may sustain arising out of
third party claims based on (i) the failure of the Servicer to deliver or caused
to be delivered when required any Officer's Certificate pursuant to this Section
8.12(d), or (ii) any material misstatement or omission contained in any
Officer's Certificate provided pursuant to this Section 8.12(d). If an event
occurs that would otherwise result in an indemnification obligation under
clauses (i) or (ii) above, but the indemnification provided for in this Section
8.12(d) by the Servicer is unavailable or insufficient to hold harmless such
Persons, then the Servicer shall contribute to the amount paid or payable by
such Persons as a result of the losses, claims, damages or liabilities of such
Persons in such proportion as is appropriate to reflect the relative fault of
the Depositor or Trustee on the one hand and the Servicer on the other. The
Servicer acknowledges that the Depositor and the Trustee are relying on the
Servicer's performance of its obligations under this Agreement in order to
perform their respective obligations under this Section 8.12.

            (e) Upon any filing with the Commission, the Trustee shall promptly
deliver to the Depositor a copy of any executed report, statement or
information.

            (f) If the Commission issues additional interpretative guidance or
promulgates additional rules or regulations, or if other changes in applicable
law occur, that would require the reporting arrangements, or the allocation of
responsibilities with respect thereto, described in this Section 8.12, to

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be conducted differently than as described, the Depositor, Servicer and Trustee
will reasonably cooperate to amend the provisions of this Section 8.12 in order
to comply with such amended reporting requirements and such amendment of this
Section 8.12. Any such amendment shall be made in accordance with Section 10.01
without the consent of the Certificateholders, and may result in a change in the
reports filed by the Trustee on behalf of the Trust under the Exchange Act.
Notwithstanding the foregoing, the Depositor, Servicer and Trustee shall not be
obligated to enter into any amendment pursuant to this Section 8.12 that
adversely affects its obligations and immunities under this Agreement.

            (g) Prior to January 31 of the first year in which the Trustee is
able to do so under applicable law, the Trustee shall file a Form 15D Suspension
Notification with respect to the Trust.

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                                   ARTICLE IX

                                   TERMINATION

            SECTION 9.01 Termination upon Liquidation, Purchase or Auction of
                         the Mortgage Loans.

            Subject to Section 9.03, the rights, obligations and
responsibilities of the Depositor, the Seller, the Servicers and the Trustee
created hereunder with respect to the Trust Fund shall terminate upon the
earliest of:

            (a) the purchase by the Optional Termination Holder of all Mortgage
Loans (and REO Properties) remaining at the price equal to the greater of (I)
the sum of (A) 100% of the Aggregate Collateral Balance (other than in respect
of REO Property) plus one month's accrued interest thereon at the applicable
Mortgage Rate, (B) with respect to any REO Property, the lesser of (x) the
appraised value of any REO Property as determined by the higher of two
independent valuations completed by two independent companies selected by the
Depositor at the expense of the Depositor and (y) the Stated Principal Balance
of each Mortgage Loan related to any REO Property, in each case plus accrued and
unpaid interest thereon at the applicable Mortgage Rate and (C) any remaining
unreimbursed Advances, Servicing Advances and Servicing Fees payable to the
Servicer and any unreimbursed Advances (made by the Trustee as successor
Servicer), Trustee Fees and expenses payable to the Trustee (the sum of (A), (B)
and (C), collectively, the "Par Value") and (II) the Fair Market Value;

            (b) the later of (i) the maturity or other liquidation (or any
Advance with respect thereto) of the last Mortgage Loan remaining in the Trust
Fund and the disposition of all REO Property and (ii) the distribution to
Certificateholders of all amounts required to be distributed to them pursuant to
this Agreement; and

            (c) the purchase by the Auction Purchaser of all the Mortgage Loans
and all property acquired in respect of any remaining Mortgage Loan (the "Trust
Collateral"), in each case as described below.

            In no event shall the trusts created hereby continue beyond the
expiration of 21 years from the death of the 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 right to repurchase all Mortgage Loans
and REO Properties pursuant to clause (a) above shall be conditioned upon the
aggregate Stated Principal Balance of the Mortgage Loans and the appraised value
of the REO Properties at the time of any such repurchase, aggregating less than
ten percent of the Aggregate Collateral Balance as of the Cut-off Date.

            If the Optional Termination Holder has not exercised its purchase
option described above, on any Distribution Date on or after the date on which
the aggregate Stated Principal Balance of the Mortgage Loans and the appraised
value of the REO Properties at the time of the purchase is less than five
percent of the Aggregate Collateral Balance as of the Cut-off Date (the "Auction
Date"), the Trustee shall solicit, or cause to be solicited, good faith bids for
the Trust Collateral from at least three institutions that are regular
purchasers and/or sellers in the secondary market of residential whole mortgage
loans similar to the Mortgage Loans. If the Trustee receives at least three bids
for the Trust Collateral, and one of such

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bids is equal to or greater than the Par Value, the Trustee shall sell the Trust
Collateral to the highest bidder (the "Auction Purchaser") at the price offered
by the Auction Purchaser (the "Mortgage Loan Purchase Price") and following such
sale shall have no further liability or responsibility therefor. If the Trustee
receives less than three bids, or does not receive any bid that is equal to or
greater than the Par Value, the Trustee shall continue conducting auctions every
six months until the earlier of (a) the completion of a successful auction and
(b) the Optional Termination Holder exercises its purchase option. Only expenses
incurred by the Trustee in connection with the solicitation of bids for a
successful auction described in this paragraph shall be payable to the Trustee,
out of the Mortgage Loan Purchase Price received in connection with such
successful auction, as described in Section 9.02 hereof; provided, however, that
any indemnification rights available to the Trustee under this Agreement in
connection with any auction will not be limited by this sentence.

            SECTION 9.02 Final Distribution on the Certificates.

      If on any Determination Date, the Trustee determines that there are no
Outstanding Mortgage Loans and no other funds or assets in the Trust Fund other
than the funds in the Collection Accounts and Certificate Account, the Trustee
shall promptly send a final distribution notice to each Certificateholder. If
the Optional Termination Holder above elects to terminate the Trust Fund
pursuant to Section 9.01 or the Auction Purchaser purchases the Trust Collateral
pursuant to Section 9.01, at least 20 days prior to the date notice is to be
mailed to the affected Certificateholders such Person shall notify the Servicers
and the Trustee of the date the Optional Termination Holder or the Auction
Purchaser intends to terminate the Trust Fund and of the applicable repurchase
price of the Mortgage Loans and REO Properties.

            Notice of any termination of the Trust Fund, specifying the
Distribution Date on which Certificateholders shall surrender their Certificates
for payment of the final distribution and cancellation, shall be given promptly
by the Trustee by letter to Certificateholders mailed not earlier than the 10th
day and not later than the 15th day of the month next preceding the month of
such final distribution. Any such notice shall specify (a) the Distribution Date
upon which final distribution on the Certificates will be made upon presentation
and surrender of Certificates at the office therein designated, (b) the amount
of such final distribution, (c) the location of the office or agency at which
such presentation and surrender must be made, and (d) that the Record Date
otherwise applicable to such Distribution Date is not applicable, distributions
being made only upon presentation and surrender of the Certificates at the
office therein specified. The Trustee shall give such notice to each Rating
Agency at the time such notice is given to Certificateholders.

            Upon presentation and surrender of the Certificates, the Trustee
shall cause the final distribution to the Certificateholders of each Class on
the final Distribution Date to be made in accordance with the priorities of
Section 4.02. On the final Distribution Date, the Overcollateralization Amount
shall be distributed to the Class X-1 Certificates in accordance with Section
4.02(b)(iv)(H) hereof. Notwithstanding the foregoing, if the final Distribution
Date has occurred as a result of the Optional Termination Holder's purchase of
the Trust Fund pursuant to Section 9.01(a) or the purchase of the Trust
Collateral by the Auction Purchaser pursuant to Section 9.01(c), all amounts, if
any, in excess of the Par Value shall be distributed by the Trustee directly to
the Class A-RL Certificateholders. All amounts described in the definition of
"Par Value" payable to the Trustee shall be paid to the Trustee from the
proceeds of an optional termination or from the Mortgage Loan Purchase Price
received in connection with a successful auction, as applicable, prior to any
distributions to Certificateholders.

                                      128
<PAGE>

            In the event that any affected Certificateholders shall not
surrender Certificates for cancellation within six months after the date
specified in the above mentioned written notice, the Trustee shall give a second
written notice to the remaining Certificateholders to surrender their
Certificates for cancellation and receive the final distribution with respect
thereto. If within six months after the second notice all the applicable
Certificates shall not have been surrendered for cancellation, the Trustee may
take appropriate steps, or may appoint an agent to take appropriate steps, to
contact the remaining Certificateholders concerning surrender of their
Certificates, and the cost thereof shall be paid out of the funds and other
assets which remain a part of the Trust Fund. If within one year after the
second notice all Certificates shall not have been surrendered for cancellation,
the Class A-R Certificateholders and Class A-RL Certificateholders shall be
entitled to all unclaimed funds and other assets of the Trust Fund which remain
subject hereto and the Trustee shall be discharged from all further liability
with respect to the Certificates and this Agreement.

            SECTION 9.03 Additional Termination Requirements.

            (a) In the event that the Optional Termination Holder exercises its
purchase option with respect to the Mortgage Loans as provided in Section 9.01
or the Auction Purchaser purchases the Mortgage Loans pursuant to Section 9.01,
at such time as the Mortgage Loans are so purchased, the Trust Fund shall be
terminated in accordance with the following additional requirements, unless the
Trustee has been supplied with an Opinion of Counsel, at the expense of the
Depositor, to the effect that the failure to comply with the requirements of
this Section 9.03 will not (i) result in the imposition of taxes on "prohibited
transactions" on any REMIC as defined in Section 860F of the Code, or (ii) cause
REMIC 1, REMIC 2, REMIC 3 and REMIC 4 to fail to qualify as a REMIC at any time
that any Certificates are outstanding:

                  (1)   Within 90 days prior to the final Distribution Date set
                        forth in the notice given by the Trustee under Section
                        9.02, the Depositor shall prepare and the Trustee, at
                        the expense of the Depositor, shall adopt a plan of
                        complete liquidation within the meaning of Section
                        860F(a)(4) of the Code which, as evidenced by an Opinion
                        of Counsel (which opinion shall not be an expense of the
                        Trustee, the Tax Matters Person or the Trust Fund),
                        meets the requirements of a qualified liquidation;

                  (2)   Within 90 days after the time of adoption of such a plan
                        of complete liquidation, the Trustee shall sell all of
                        the assets of the Trust Fund to the Depositor for cash
                        in accordance with Section 9.01; and

                              On the date specified for final payment of the
                        Certificates, the Trustee shall, after payment of any
                        unreimbursed Advances, Servicing Advances, Servicing
                        Fees or other fee compensation payable to the Servicer
                        pursuant to this Agreement, make final distributions of
                        principal and interest on the Certificates in accordance
                        with Section 4.02 and distribute or credit, or cause to
                        be distributed or credited, to the Holders of the
                        Residual Certificates all cash on hand after such final
                        payment (other

                                      129
<PAGE>

                        than the cash retained to meet claims), and the Trust
                        Fund (and any REMIC) shall terminate at that time.

            (b) The Trustee as agent for REMIC 1, REMIC 2, REMIC 3 and REMIC 4
hereby agrees to adopt and sign such a plan of complete liquidation upon the
written request of the Depositor, and the receipt of the Opinion of Counsel
referred to in Section 9.03(a)(1) and to take such other action in connection
therewith as may be reasonably requested by the Depositor.

            (c) By their acceptance of the Certificates, the Holders thereof
hereby authorize the Depositor to prepare and the Trustee to adopt and sign a
plan of complete liquidation.

                                      130
<PAGE>

                                    ARTICLE X

                            MISCELLANEOUS PROVISIONS

            SECTION 10.01 Amendment.

            This Agreement may be amended from time to time by the Depositor,
the Servicer, the Seller and the Trustee without the consent of any of the
Certificateholders (i) to cure any ambiguity or mistake, (ii) to correct any
defective provision herein or to supplement any provision herein which may be
inconsistent with any other provision herein, (iii) to add to the duties of the
Depositor, the Seller or the Servicer, (iv) to add any other provisions with
respect to matters or questions arising hereunder or (v) to modify, alter,
amend, add to or rescind any of the terms or provisions contained in this
Agreement; provided that any action pursuant to clauses (iv) or (v) above shall
not, as evidenced by an Opinion of Counsel (which Opinion of Counsel shall not
be an expense of the Trustee or the Trust Fund, but shall be at the expense of
the party proposing such amendment), adversely affect in any material respect
the interests of any Certificateholder; provided, however, that no such Opinion
of Counsel shall be required if the Person requesting the amendment obtains a
letter from each Rating Agency stating that the amendment would not result in
the downgrading or withdrawal of the respective ratings then assigned to the
Certificates; it being understood and agreed that any such letter in and of
itself will not represent a determination as to the materiality of any such
amendment and will represent a determination only as to the credit issues
affecting any such rating. The Trustee, the Depositor, the Seller and the
Servicer also may at any time and from time to time amend this Agreement without
the consent of the Certificateholders to modify, eliminate or add to any of its
provisions to such extent as shall be necessary or helpful to (i) maintain the
qualification of REMIC 1, REMIC 2, REMIC 3 and REMIC 4 as a REMIC under the
Code, (ii) avoid or minimize the risk of the imposition of any tax on the Trust
Fund pursuant to the Code that would be a claim at any time prior to the final
redemption of the Certificates or (iii) comply with any other requirements of
the Code, provided that the Trustee has been provided an Opinion of Counsel,
which opinion shall be an expense of the party requesting such opinion but in
any case shall not be an expense of the Trustee or the Trust Fund, to the effect
that such action is necessary or helpful to, as applicable, (i) maintain such
qualification, (ii) avoid or minimize the risk of the imposition of such a tax
or (iii) comply with any such requirements of the Code.

            This Agreement may also be amended from time to time by the
Depositor, the Servicer, the Seller and the Trustee with the consent of the
Holders of a Majority in Interest of each Class of Certificates affected thereby
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 shall (i) reduce in any manner the amount of, or delay the timing
of, payments 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 in a manner other than
as described in clause (i), without the consent of the Holders of Certificates
of such Class evidencing, as to such Class, Percentage Interests aggregating
66%, or (iii) reduce the aforesaid percentages of Certificates the Holders of
which are required to consent to any such amendment, without the consent of the
Holders of all such Certificates then outstanding.

                                      131
<PAGE>

            Notwithstanding any contrary provision of this Agreement, the
Trustee shall not consent to any amendment to this Agreement unless it shall
have first received an Opinion of Counsel, which opinion shall not be an expense
of the Trustee or the Trust Fund, but shall be at the expense of the party
preparing such amendment, to the effect that such amendment will not cause the
imposition of any federal tax on the Trust Fund or the Certificateholders or
cause REMIC 1, REMIC 2, REMIC 3 and REMIC 4 to fail to qualify as a REMIC at any
time that any Certificates are outstanding.

            Promptly after the execution of any amendment to this Agreement, the
Trustee shall furnish written notification of the substance or a copy of such
amendment to each Certificateholder if the consent of Certificateholders was
required and each Rating Agency.

            It shall not be necessary for the consent of Certificateholders
under this Section 10.01 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.

            Nothing in this Agreement shall require the Trustee to enter into an
amendment without receiving an Opinion of Counsel (which Opinion shall not be an
expense of the Trustee or the Trust Fund), satisfactory to the Trustee that (i)
such amendment is permitted and is not prohibited by this Agreement and that all
requirements for amending this Agreement have been complied with; and (ii)
either (A) the amendment does not adversely affect in any material respect the
interests of any Certificateholder or (B) the conclusion set forth in the
immediately preceding clause (A) is not required to be reached pursuant to this
Section 10.01.

            SECTION 10.02 Recordation of Agreement; Counterparts.

            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 Depositor at its expense, but only upon
direction by 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.

                                      132
<PAGE>

            SECTION 10.03 Governing Law.

            THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

            SECTION 10.04 [Reserved]

            SECTION 10.05 Notices.

            (a) The Trustee shall use its best efforts to promptly provide
notice to each Rating Agency with respect to each of the following of which it
has actual knowledge:

            (i) Any material change or amendment to this Agreement;

            (ii) The occurrence of any Event of Default that has not been cured;

            (iii) The resignation or termination of the Servicer or the Trustee
      and the appointment of any successor;

            (iv) The repurchase or substitution of Mortgage Loans pursuant to
      Sections 2.02 and 2.03; and

            (v) The final payment to Certificateholders.

            (b) In addition, the Trustee shall promptly furnish to each Rating
Agency copies of the following to the extent such items are in its possession:

            (i) Each report to Certificateholders described in Section 4.06 and
      3.19;

            (ii) Each annual statement as to compliance described in Section
      3.16;

            (iii) Each annual independent public accountants' servicing report
      described in Section 3.17; and

            (iv) Any notice of a purchase of a Mortgage Loan pursuant to Section
      2.02, 2.03 or 3.11.

            All directions, demands and notices hereunder shall be in writing
and shall be deemed to have been duly given when delivered to (a) in the case of
the Depositor and the Seller, Eleven Madison Avenue, 4th Floor, New York, New
York 10010, Attention: John P. Graham (with a copy to Credit

                                      133
<PAGE>

Suisse First Boston Mortgage Securities Corp., Eleven Madison Avenue, 4th Floor,
New York, New York 10010, Attention: Office of the General Counsel), (b) in the
case of the Trustee, the Corporate Trust Office or such other address as the
Trustee may hereafter furnish to the Depositor and the Servicer, (c) in the case
of Wilshire, 14523 SW Millikan Way, Suite 200, Beaverton, Oregon 97005
Attention: Jay Memmott, with a copy to Stoel Rives LLP, 900 SW Fifth, Portland,
Oregon 97204 Attention: Gary Barnum or such other address as may be hereafter
furnished in writing to the Depositor and the Trustee by the Servicer and (d) in
the case of each of the Rating Agencies, the address specified therefor in the
definition corresponding to the name of such Rating Agency. Notices to
Certificateholders shall be deemed given when mailed, first class postage
prepaid, to their respective addresses appearing in the Certificate Register.

            SECTION 10.06 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 10.07 Assignment.

            Notwithstanding anything to the contrary contained herein, except as
provided in Sections 6.02 and 6.04, this Agreement may not be assigned by the
Servicer without the prior written consent of the Trustee and Depositor;
provided, however, that neither the Depositor nor the Trustee shall consent to
any such assignment unless each Rating Agency has confirmed in writing that such
assignment will not cause a reduction or withdrawal of the ratings then assigned
by it to any Class of Certificates.

            SECTION 10.08 Limitation on Rights of Certificateholders.

            The death or incapacity of any Certificateholder shall not operate
to terminate this Agreement or the trust created hereby, nor entitle such
Certificateholder's legal representative or heirs to claim an accounting or to
take any action or commence any proceeding in any court for a petition or
winding up of the trust created hereby, or otherwise affect the rights,
obligations and liabilities of the parties hereto or any of them.

            No Certificateholder shall have any right to vote (except as
provided 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 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 party 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 or by availing
itself of any provisions of this Agreement to institute any suit, action or
proceeding in equity or at law upon or under or with respect

                                      134
<PAGE>

to this Agreement, unless such Holder previously shall have given to the Trustee
a written notice of an Event of Default and of the continuance thereof, as
herein provided, and unless the Holders of Certificates evidencing not less than
25% of the Voting Rights evidenced by the Certificates shall also have made
written request to the Trustee to institute such action, suit or proceeding in
its own name as Trustee hereunder and shall have offered to the Trustee such
reasonable indemnity as it may require against the costs, expenses, and
liabilities to be incurred therein or thereby, and the Trustee, for 60 days
after its receipt of such notice, request and offer of indemnity shall have
neglected or refused to institute any such action, suit or proceeding; it being
understood and intended, and being 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 or by availing itself or themselves of any provisions of this
Agreement to affect, disturb or prejudice the rights of the Holders of any other
of the 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 common benefit of all Certificateholders.
For the protection and enforcement of the provisions of this Section 10.08, each
and every Certificateholder and the Trustee shall be entitled to such relief as
can be given either at law or in equity.

            SECTION 10.09 Certificates Nonassessable and Fully Paid.

            It is the intention of the Depositor that Certificateholders shall
not be personally liable for obligations of the Trust Fund, that the interests
in the Trust Fund represented by the Certificates shall be nonassessable for any
reason whatsoever, and that the Certificates, upon due authentication thereof by
the Trustee pursuant to this Agreement, are and shall be deemed fully paid.

            SECTION 10.10 Non-Solicitation

            From and after the date of this Agreement, each of the Depositor,
the Seller, the Servicer and the Trustee agrees that it will not take any action
or permit or cause any action to be taken by any of its agents or affiliates, or
by any independent contractors on any such party's behalf, to personally, by
telephone, by mail, or electronically by e-mail or through the internet or
otherwise, solicit the borrower or obligor under any Mortgage Loan to refinance
the Mortgage Loan, in whole or in part. Notwithstanding the foregoing, it is
understood and agreed that promotions undertaken by the Depositor, the Seller,
the Servicer or the Trustee or any affiliate of any such party that originates
mortgage loans in the normal course, which are directed to the general public at
large, or segments thereof, including, without limitation, mass mailings based
on commercially acquired mailing lists or newspaper, internet, company website,
radio and television advertisements shall not constitute solicitation under this
Section 10.10, provided, that no segment of the general public shall consist
primarily of the borrowers or obligors under the Mortgage Loans. None of the
Depositor, the Seller, the Servicer or the Trustee shall permit the sale of the
name of any Mortgagor or any list of names that consist primarily of the
Mortgages to any Person.

                                      135
<PAGE>

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

                                        CREDIT SUISSE FIRST BOSTON MORTGAGE
                                        SECURITIES CORP.,
                                        as Depositor

                                        By: /s/ John P. Graham
                                            ------------------------------------
                                        Name:  John P. Graham
                                        Title: Vice President

                                        JPMORGAN CHASE BANK,
                                        as Trustee

                                        By: /s/ Annette M. Marsula
                                            ------------------------------------
                                        Name:   Annette M. Marsula
                                        Title:  Vice President

                                        DLJ MORTGAGE CAPITAL, INC.,
                                        as Seller

                                        By: /s/ Peter Principato
                                            ------------------------------------
                                        Name:   Peter Principato
                                        Title:  Vice President

                                        WILSHIRE CREDIT CORPORATION,
                                        as Servicer

                                        By: /s/ Bradley Newman
                                            ------------------------------------
                                        Name:   Bradley Newman
                                        Title:  Senior Vice President

                          [Notary pages to be attached]

<PAGE>

                                    EXHIBIT A

                          [FORM OF CLASS A CERTIFICATE]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

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").

                                      A-1
<PAGE>

Certificate No. [____]          Adjustable Pass-Through Rate

Cut-off Date:                   Initial Certificate Balance of this Certificate
April 1, 2004                   ("Denomination"):
                                $[_________________]

First Distribution Date:        Initial Certificate Balances of all Certificates
May 25, 2004                    of this Class:
                                $[_________________]

Maturity Date:                  CUSIP: [_________________]
August 25, 2034

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                        Home Equity Mortgage Trust 2004-2
          Home Equity Mortgage Pass-Through Certificates, Series 2004-2
                                 Class [_______]

      evidencing a percentage interest in the distributions allocable to the
      Certificates of the above-referenced Class with respect to a Trust Fund
      consisting primarily of a pool of conventional mortgage loans (the
      "Mortgage Loans") secured by fixed rate, second lien residential mortgage
      loans.

       Credit Suisse First Boston Mortgage Securities Corp., as Depositor

      Principal in respect of this Certificate is distributable monthly as set
forth herein. Accordingly, the Certificate Balance at any time may be less than
the Certificate Balance as set forth herein. This Certificate is payable solely
from the assets of the Trust and does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor, the Seller, the Servicer or
the Trustee referred to below or any of their respective affiliates. This
Certificate and the Mortgage Loans are not guaranteed or insured by any
governmental agency or instrumentality.

      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 aggregate of the denominations of all Certificates of
the Class to which this Certificate belongs) in certain monthly distributions
with respect to a Trust Fund consisting primarily of the Mortgage Loans
deposited by Credit Suisse First Boston Mortgage Securities Corp. (the
"Depositor"). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as of the Cut-off Date specified above (the "Agreement") among
the Depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire Credit
Corporation as servicer ("Wilshire") and JPMorgan Chase Bank as trustee (the
"Trustee"). To the extent not defined herein, the capitalized terms used herein
have the meanings assigned to such terms in the Agreement. This

                                      A-2
<PAGE>

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.

      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
<PAGE>

      IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: April 29, 2004

                                        JPMORGAN CHASE BANK,
                                        as Trustee

                                        By _____________________________________

Countersigned:

By _____________________________________
      Authorized Signatory of
      JPMORGAN CHASE BANK,
      as Trustee

                                      A-4
<PAGE>

                                    EXHIBIT B

                        [FORM OF SUBORDINATE CERTIFICATE]

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

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 IS SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN CERTIFICATES AS
DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.

[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.]

                                      B-1
<PAGE>

Certificate No. [____]          [Adjustable][_%][Variable] Pass-Through Rate

Cut-off Date:                   Initial [Certificate Balance] [Notional Amount]
April 1, 2004                   of this Certificate ("Denomination"):
                                $[_________________]

First Distribution Date:        Initial [Certificate Balances] [Notional Amount]
May 25, 2004                    of all Certificates of this Class:
                                $[_________________]

Maturity Date:                  CUSIP: [_________________]
August 25, 2034

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                        Home Equity Mortgage Trust 2004-2
          Home Equity Mortgage Pass-Through Certificates, Series 2004-2
                                 Class [_______]

      evidencing a percentage interest in the distributions allocable to the
      Certificates of the above-referenced Class with respect to a Trust Fund
      consisting primarily of a pool of conventional mortgage loans (the
      "Mortgage Loans") secured by fixed rate, second lien residential mortgage
      loans.

       Credit Suisse First Boston Mortgage Securities Corp., as Depositor

      Principal in respect of this Certificate is distributable monthly as set
forth herein. Accordingly, the Certificate Balance at any time may be less than
the Certificate Balance as set forth herein. This Certificate is payable solely
from the assets of the Trust and does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor, the Seller, the Servicer or
the Trustee referred to below or any of their respective affiliates. This
Certificate and the Mortgage Loans are not guaranteed or insured by any
governmental agency or instrumentality.

      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 aggregate of the denominations of all Certificates of
the Class to which this Certificate belongs) in certain monthly distributions
with respect to a Trust Fund consisting primarily of the Mortgage Loans
deposited by Credit Suisse First Boston Mortgage Securities Corp. (the
"Depositor"). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as of the Cut-off Date specified above (the "Agreement") among
the Depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire Credit
Corporation as servicer ("Wilshire") and JPMorgan Chase Bank as trustee (the
"Trustee"). To the extent not defined

                                      B-2
<PAGE>

herein, the capitalized terms used herein have the meanings assigned to such
terms 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.

      No transfer of a Certificate of this Class shall be made except in
compliance with section 5.02 of the Pooling Servicing 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.

                                      B-3
<PAGE>

      IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: April 29, 2004

                                        JPMORGAN CHASE BANK,
                                        as Trustee

                                        By _____________________________________

Countersigned:

By _____________________________________
      Authorized Signatory of
      JPMORGAN CHASE BANK,
      as Trustee

                                      B-4
<PAGE>

                                    EXHIBIT C

                         [FORM OF RESIDUAL CERTIFICATE]

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").

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.

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A REPRESENTATION LETTER TO THE EFFECT
THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN SUBJECT
TO SECTION 4975 OF THE CODE, OR AN OPINION OF COUNSEL IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. NOTWITHSTANDING ANYTHING ELSE TO
THE CONTRARY HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF
OF AN EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA OR TO THE CODE WITHOUT THE OPINION
OF COUNSEL SATISFACTORY TO THE TRUSTEE AS DESCRIBED ABOVE SHALL BE VOID AND OF
NO EFFECT.

                                      C-1
<PAGE>

Certificate No. [____]          Variable Pass-Through Rate

Cut-off Date:                   Initial Certificate Balance of this Certificate
April 1, 2004                   ("Denomination"):
                                $[_________________]

First Distribution Date:        Initial Certificate Balances of all Certificates
May 25, 2004                    of this Class:
                                $[_________________]

Maturity Date:                  CUSIP: [_________________]
August 25, 2034

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                        Home Equity Mortgage Trust 2004-2
          Home Equity Mortgage Pass-Through Certificates, Series 2004-2
                                 Class [_______]

      evidencing the distributions allocable to the Class [A-R][A-RL]
      Certificates with respect to a Trust Fund consisting primarily of a pool
      of conventional mortgage loans (the "Mortgage Loans") secured by fixed
      rate, second lien residential mortgage loans.

       Credit Suisse First Boston Mortgage Securities Corp., as Depositor

      Principal in respect of this Certificate is distributable monthly as set
forth herein. Accordingly, the Certificate Balance at any time may be less than
the Certificate Balance as set forth herein. This Certificate is payable solely
from the assets of the Trust and does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor, the Seller, the Servicer or
the Trustee referred to below or any of their respective affiliates. This
Certificate and the Mortgage Loans are not guaranteed or insured by any
governmental agency or instrumentality.

      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 aggregate of the denominations of all
Certificates of the Class to which this Certificate belongs) in certain monthly
distributions with respect to a Trust Fund consisting primarily of the Mortgage
Loans deposited by Credit Suisse First Boston Mortgage Securities Corp. (the
"Depositor"). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as of the Cut-off Date specified above (the "Agreement") among
the Depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire Credit
Corporation as servicer ("Wilshire") and JPMorgan Chase Bank as trustee (the
"Trustee"). To the extent not defined herein, the capitalized terms used herein
have the meanings assigned to such terms in the Agreement. This Certificate is
issued under and is subject to the terms, provisions and conditions of the
Agreement, to which

                                      C-2
<PAGE>

Agreement the Holder of this Certificate by virtue of the acceptance hereof
assents and by which such Holder is bound.

      Any distribution of the proceeds of any remaining assets of the Trust Fund
will be made only upon presentment and surrender of this Class [A-R][A-RL]
Certificate at the Corporate Trust Office or the office or agency maintained by
the Trustee in New York, New York.

      No transfer of a Class [A-R][A-RL] Certificate shall be made unless the
Trustee shall have received either (i) a representation letter from the
transferee of such Certificate, acceptable to and in form and substance
satisfactory to the Trustee, to the effect that such transferee is not an
employee benefit plan subject to Section 406 of ERISA or Section 4975 of the
Code, or a person acting on behalf of any such plan or arrangement or using the
assets of any such plan or arrangement to effect such transfer, which
representation letter shall not be an expense of the Trustee or the Trust Fund
or (ii) in the case of any such Class A-R Certificate presented for registration
in the name of an employee benefit plan subject to ERISA, or Section 4975 of the
Code (or comparable provisions of any subsequent enactments), or a trustee of
any such plan or any other person acting on behalf of any such plan or
arrangement, or using such plan's or arrangement's assets, an Opinion of Counsel
addressed to the Trustee, for the benefit of the Trustee, the Depositor and the
Servicer and on which they may rely, and satisfactory to the Trustee to the
effect that the purchase or holding of such Class A-R Certificate will not
result in the assets of the Trust Fund being deemed to be "plan assets" and
subject to the prohibited transaction provisions of ERISA and the Code and will
not subject the Trustee to any obligation in addition to those undertaken in
this Agreement, which Opinion of Counsel shall not be an expense of the Trustee
or the Trust Fund. Notwithstanding anything else to the contrary herein, any
purported transfer of a Class A-R Certificate to or on behalf of an employee
benefit plan subject to ERISA or to the Code without the Opinion of Counsel
satisfactory to the Trustee as described above shall be void and of no effect.

      Each Holder of this Class [A-R][A-RL] 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 Class A-R Certificate must be a Permitted Transferee,
(ii) no Ownership Interest in this Class [A-R][A-RL] 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 Class [A-R][A-RL]
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 Class [A-R][A-RL]
Certificate must agree not to transfer an Ownership Interest in this Class
[A-R][A-RL] 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 Class [A-R][A-RL] Certificate in violation of such
restrictions will be absolutely null and void and will vest no rights in the
purported transferee.

      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.

                                      C-3
<PAGE>

      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.

      IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: April 29, 2004

                                        JPMORGAN CHASE BANK,
                                        as Trustee

                                        By _____________________________________

Countersigned:

By _____________________________________
      Authorized Signatory of
      JPMORGAN CHASE BANK,
      as Trustee

                                      C-4
<PAGE>

                                    EXHIBIT D

                      [FORM OF NOTIONAL AMOUNT CERTIFICATE]

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

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 IS SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN CERTIFICATES AS
DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.]

THIS CERTIFICATE HAS NO PRINCIPAL BALANCE AND IS NOT ENTITLED TO ANY
DISTRIBUTIONS IN RESPECT OF PRINCIPAL.

[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.]

                                      D-1
<PAGE>

Certificate No. [____]          [Adjustable][Variable] Interest Rate

Cut-off Date:                   Initial Notional Amount of this Certificate
April 1, 2004                   ("Denomination"):
                                $[_________________]

First Distribution Date:        Initial Notional Amount of all Certificates of
May 25, 2004                    this Class:
                                $[_________________]

Maturity Date:                  CUSIP: [_________________]
August 25, 2034

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                    Home Equity Mortgage Trust Series 2004-2
          Home Equity Mortgage Pass-Through Certificates, Series 2004-2
                                  Class [   ]

      evidencing a percentage interest in the distributions allocable to the
      Certificates of the above-referenced Class with respect to a Trust Fund
      consisting primarily of a pool of conventional mortgage loans (the
      "Mortgage Loans") secured by fixed rate, second lien residential mortgage
      loans.

       Credit Suisse First Boston Mortgage Securities Corp., as Depositor

      This Certificate is payable solely from the assets of the Trust and does
not evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Seller, the Servicer or the Trustee referred to below or any of
their respective affiliates. This Certificate and the Mortgage Loans are not
guaranteed or insured by any governmental agency or instrumentality.

      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 aggregate of the denominations of all Certificates of
the Class to which this Certificate belongs) in certain monthly distributions
with respect to a Trust Fund consisting primarily of the Mortgage Loans
deposited by Credit Suisse First Boston Mortgage Securities Corp. (the
"Depositor"). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as of the Cut-off Date specified above (the "Agreement") among
the Depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire Credit
Corporation as servicer ("Wilshire") and JPMorgan Chase Bank as trustee (the
"Trustee"). To the extent not defined herein, the capitalized terms used herein
have the meanings assigned to such terms in the Agreement. This Certificate is
issued under and is subject to the terms, provisions and conditions of the
Agreement, to which

                                      D-2
<PAGE>

Agreement the Holder of this Certificate by virtue of the acceptance hereof
assents and by which such Holder is bound.

[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.]

      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.

                                      D-3
<PAGE>

      IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: April 29, 2004

                                        JPMORGAN CHASE BANK,
                                        as Trustee

                                        By _____________________________________

Countersigned:

By _____________________________________
      Authorized Signatory of
      JPMORGAN CHASE BANK,
      as Trustee

                                      D-4
<PAGE>

                                    EXHIBIT E

                          [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, 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.

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A REPRESENTATION LETTER TO THE EFFECT
THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN SUBJECT
TO SECTION 4975 OF THE CODE OR AN OPINION OF COUNSEL IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. NOTWITHSTANDING ANYTHING ELSE TO
THE CONTRARY HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF
OF AN EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA OR TO THE CODE WITHOUT THE OPINION
OF COUNSEL SATISFACTORY TO THE TRUSTEE AS DESCRIBED ABOVE SHALL BE VOID AND OF
NO EFFECT.

                                      E-1
<PAGE>

Certificate No. [____]          Variable Pass-Through Rate

Cut-off Date:                   Initial Certificate Balance of this Certificate
April 1, 2004                   ("Denomination"):
                                $[_________________]

First Distribution Date:        Initial Certificate Balances of all Certificates
May 25, 2004                    of this Class:
                                $[_________________]

Maturity Date:                  CUSIP: [_________________]
August 25, 2034

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                        Home Equity Mortgage Trust 2004-2
          Home Equity Mortgage Pass-Through Certificates, Series 2004-2
                                 Class [_______]

      evidencing a percentage interest in the distributions allocable to the
      Certificates of the above-referenced Class with respect to a Trust Fund
      consisting primarily of a pool of conventional mortgage loans (the
      "Mortgage Loans") secured by fixed rate, first and second lien residential
      mortgage loans.

       Credit Suisse First Boston Mortgage Securities Corp., as Depositor

      Principal in respect of this Certificate is distributable monthly as set
forth herein. Accordingly, the Certificate Balance of this Class P Certificate
at any time may be less than the Initial Certificate Balance set forth on the
face hereof, as described herein. This Class P Certificate does not evidence an
obligation of, or an interest in, and is not guaranteed by the Depositor, the
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 Class P Certificate (obtained by dividing
the Denomination of this Class P Certificate by the Initial Class Principal
Balance) in certain distributions with respect to a Trust consisting primarily
of the Mortgage Loans deposited by Credit Suisse First Boston Mortgage
Securities Corp. (the "Depositor"). The Trust was created pursuant to a Pooling
and Servicing Agreement dated as of April 1, 2004 (the "Agreement") among the
Depositor, DLJ Mortgage Capital Inc., as seller ("DLJMC"), Wilshire Credit
Corporation as servicer ("Wilshire") and JPMorgan Chase Bank, as trustee (the
"Trustee"). To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Class P Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,

                                      E-2
<PAGE>

to which Agreement the Holder of this Class P Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

      This Certificate does not have a pass-through rate and will be entitled to
distributions only to the extent set forth in the Agreement.

      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 that such a transfer is not to be made pursuant to
Rule 144A of the Act, there shall be delivered to the Trustee and the Depositor
of 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, the Seller, the Servicer or the Depositor; or there shall be
delivered to the Trustee and the Depositor 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.

      No transfer of a Class P Certificate shall be made unless the Trustee
shall have received either (i) a representation letter from the transferee of
such Certificate, acceptable to and in form and substance satisfactory to the
Trustee, to the effect that such transferee is not an employee benefit plan
subject to Section 406 of ERISA or Section 4975 of the Code, or a person acting
on behalf of any such plan or arrangement or using the assets of any such plan
or arrangement to effect such transfer, which representation letter shall not be
an expense of the Trustee or the Trust Fund or (ii) in the case of any such
Class P Certificate presented for registration in the name of an employee
benefit plan subject to ERISA, or Section 4975 of the Code (or comparable
provisions of any subsequent enactments), or a trustee of any such plan or any
other person acting on behalf of any such plan or arrangement, or using such
plan's or arrangement's assets, an Opinion of Counsel addressed to the Trustee,
for the benefit of the Trustee, the Depositor and the Servicer and on which they
may rely, and satisfactory to the Trustee to the effect that the purchase or
holding of such Class P Certificate will not result in the assets of the Trust
Fund being deemed to be "plan assets" and subject to the prohibited transaction
provisions of ERISA and the Code and will not subject the Trustee to any
obligation in addition to those undertaken in this Agreement, which Opinion of
Counsel shall not be an expense of the Trustee or the Trust Fund.
Notwithstanding anything else to the contrary herein, any purported transfer of
a Class P Certificate to or on behalf of an employee benefit plan subject to
ERISA or to the Code without the Opinion of Counsel satisfactory to the Trustee
as described above shall be void and of no effect.

      Reference is hereby made to the further provisions of this Class P
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.

                                      E-3
<PAGE>

      This Class P 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.

                                      E-4
<PAGE>

      IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: April 29, 2004

                                        JPMORGAN CHASE BANK,
                                        as Trustee

                                        By _____________________________________

Countersigned:

By _____________________________________
      Authorized Signatory of
      JPMORGAN CHASE BANK,
      as Trustee

                                      E-5
<PAGE>

                                    EXHIBIT F

                        [FORM OF REVERSE OF CERTIFICATES]

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                        Home Equity Mortgage Trust 2004-2
          Home Equity Mortgage Pass-Through Certificates, Series 2004-2
                                 Class [_______]

      This Certificate is one of a duly authorized issue of Certificates
designated as Credit Suisse First Boston Mortgage Securities Corp., Mortgage
Pass-Through Certificates, of the Series specified on the face hereof (herein
collectively called the "Certificates"), and representing a beneficial ownership
interest in the Trust Fund 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 Certificate 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, the Business
Day immediately following (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. [The Record Date applicable to each Distribution Date
is the last Business Day of the month next preceding the month of such
Distribution Date.][The Record Date applicable to each Distribution Date is the
Business Day immediately preceding the related Distribution Date; provided that
if this Certificate is not a Book-Entry Certificate, then the Record Date
applicable to each Distribution Date is the last Business Day of the month next
preceding such Distribution Date.]

      Distributions on this Certificate shall be made by wire transfer of
immediately available funds to the account of the Holder hereof at a bank or
other entity having appropriate facilities therefor, if such Certificateholder
shall have so notified the Trustee in writing at least five Business Days prior
to the related Record Date and such Certificateholder shall satisfy the
conditions to receive such form of payment set forth in the Agreement, or, if
not, by check mailed by first class mail to the address of such
Certificateholder appearing in the Certificate Register. The final distribution
on each Certificate will be made in like manner, but only upon presentment and
surrender of such Certificate at the Corporate Trust Office or such other
location specified in the notice to Certificateholders of such final
distribution.

                                      F-1
<PAGE>

      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
by the Depositor, the Servicer, the Seller and the Trustee with the consent of
the Holders of Certificates affected by such amendment evidencing the requisite
Percentage Interest, as provided 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.

      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 Corporate Trust Office or the office or agency maintained by the
Trustee in New York, New York, 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
Fund will be issued to the designated transferee or transferees.

      The Certificates are issuable only as registered Certificates without
coupons 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 Depositor, the Servicer, the Seller and the Trustee and any agent of
the Depositor or the Trustee may treat the Person in whose name this Certificate
is registered as the owner hereof for all purposes, and the Seller, the
Depositor, the Trustee, or any such agent shall be affected by any notice to the
contrary.

      On any Distribution Date on which the sum of the aggregate Stated
Principal Balance of the Mortgage Loans and the appraised value of the REO
Properties at the time of repurchase is less than 10% of the sum of the
Aggregate Collateral Balance of the Mortgage Loans as of the Cut-off Date, the
Optional Termination Holder will have the option to repurchase, in whole, from
the Trust Fund all remaining Mortgage Loans and REO Properties at a purchase
price determined as provided in the Agreement. If the Optional Termination
Holder does not exercise its option to purchase, on any Distribution Date on
which the sum of the aggregate Stated Principal Balance of the Mortgage Loans
and the appraised value of the REO Properties at the time of repurchase is less
than 5% of the sum of the Aggregate Collateral Balance of the Mortgage Loans as
of the Cut-off Date, the Trustee shall conduct an auction and upon satisfaction
of the conditions described in the Agreement, the Auction Purchaser shall
purchase the Trust Collateral at

                                      F-2
<PAGE>

a purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs and no purchase pursuant to an auction occurs,
the obligations and responsibilities created by the Agreement will terminate
upon the later of the maturity or other liquidation (or any advance with respect
thereto) of the last Mortgage Loan remaining in the Trust Fund and the
distribution to Certificateholders of all amounts required to be distributed
pursuant to the Agreement. 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.

      Any term used herein that is defined in the Agreement shall have the
meaning assigned in the Agreement, and nothing herein shall be deemed
inconsistent with that meaning.

                                      F-3
<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 Fund.

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

                            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.

                                      F-4
<PAGE>

                                    EXHIBIT G

                   FORM OF INITIAL CERTIFICATION OF CUSTODIAN

                                        April 29, 2004

___________________________
___________________________

Cut-off Date Principal Balance:
$________________

JPMorgan Chase Bank,
as Trustee, for the
Home Equity Mortgage Pass-Through Certificates, Series 2004-2
4 New York Plaza
New York, New York 10004-2697

            Re:   Custodial Agreement, dated as of April 1, 2004, between
                  JPMorgan Chase Bank, as Trustee and LaSalle Bank National
                  Association, as Custodian

Ladies and Gentlemen:

      In accordance with the provisions of Section 4 of the above-referenced
Custodial Agreement, the undersigned, as the Custodian, hereby certifies as to
each Mortgage Loan in the Mortgage Loan Schedule that (i) it has received: the
original Mortgage Note and Assignment of Mortgage with respect to each Mortgage
Loan identified on the Mortgage Loan Schedule attached hereto as Exhibit A and
(ii) such Mortgage Note has been reviewed by it and appears regular on its face
and relates.

      The Custodian makes no representations as to: (i) the validity, legality,
enforceability, sufficiency, due authorization or genuineness of any of the
documents contained in each Custodial File or of any of the Mortgage Loans or
(ii) the collectability, insurability, effectiveness or suitability of any such
Mortgage Loan.

      The Custodian hereby confirms that it is holding each such Mortgage Note
and Assignment of Mortgage as agent and bailee of, and custodian for the
exclusive use and benefit, and subject to the sole direction, of the Trustee
pursuant to the terms and conditions of the Custodial Agreement.

      This Trust Receipt and Initial Certification is not divisible or
negotiable.

                                      G-1
<PAGE>

      The Custodian will accept and act on instructions with respect to the
Mortgage Loans subject hereto upon surrender of this Trust Receipt and Initial
Certification at its office at LaSalle Bank National Association: 2571 Busse
Road, Suite 200, Elk Grove, Illinois, 60007.

                                      G-2
<PAGE>

      Capitalized terms used herein shall have the meaning ascribed to them in
the Custodial Agreement.

                                        LASALLE BANK NATIONAL ASSOCIATION
                                        as Custodian

                                        By: ____________________________________
                                        Name:
                                        Title:

                                      G-3
<PAGE>

                                    EXHIBIT H

                    FORM OF FINAL CERTIFICATION OF CUSTODIAN

Trust Receipt #_________

Cut-off Date Principal Balance
$_______________

[To be addressed to the Trustee of record]
___________________________
___________________________

            Re:   Custodial Agreement, dated as of April 1, 2004, between
                  JPMorgan Chase Bank, as Trustee and LaSalle Bank National
                  Association, as Custodian

Ladies and Gentlemen:

      In accordance with the provisions of Section 6 of the above-referenced
Custodial Agreement, the undersigned, as the Custodian, hereby certifies that as
to each Mortgage Loan listed on the Mortgage Loan Schedule (other than any
Mortgage Loan paid in full or any Mortgage Loan listed on the attachment hereto)
it has reviewed the Custodial Files and has determined that (i) all documents
required to be delivered to it pursuant to Sections 2(i)-(ix) of the Custodial
Agreement are in its possession; (ii) such documents have been reviewed by it
and appear regular on their face and related to such Mortgage Loan; (iii) all
Assignments of Mortgage or intervening assignments of mortgage, as applicable,
have been submitted for recording in the jurisdictions in which recording is
necessary; and (iv) each Mortgage Note has been endorsed as provided in Section
2(ii) of the Custodial Agreement and each Mortgage has been assigned in
accordance with Section 2(iii) of the Custodial Agreement. The Custodian makes
no representations as to: (i) validity, legality, enforceability, sufficiency,
due authorization or genuineness of any of the documents contained in each
Custodial File or of any of the Mortgage Loans, or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan.

      The Custodian hereby confirms that it is holding each such Custodial File
as agent and bailee of, and custodian for the exclusion use and benefit, and
subject to the sole direction, of Trustee pursuant to the terms and conditions
of the Custodial Agreement.

      This Trust Receipt and Final Certification is not divisible or negotiable.

      The Custodian will accept and act on instructions with respect to the
Mortgage Loans subject hereto upon surrender of this Trust Receipt and Final
Certification at its office at LaSalle Bank National Association: 2571 Busse
Road, Suite 200, Elk Grove, Illinois, 60007.

                                      H-1
<PAGE>

      Capitalized terms used herein shall have the meaning ascribed to them in
the Custodial Agreement.

                                        LASALLE BANK NATIONAL ASSOCIATION
                                        as Custodian

                                        By: ____________________________________
                                        Name:
                                        Title:

                                      H-2
<PAGE>

                                    EXHIBIT I

                               TRANSFER AFFIDAVIT

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                        Home Equity Mortgage Trust 2004-2
          Home Equity Mortgage Pass-Through Certificates, Series 2004-2
                                 Class [_______]

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 [A-R][A-RL] Certificate (the
"Certificate") issued pursuant to the Pooling and Servicing Agreement, (the
"Agreement"), relating to the above-referenced Series, among Credit Suisse First
Boston Mortgage Securities Corp. as depositor, DLJ Mortgage Capital, Inc. as
seller ("DLJMC"), Wilshire Credit Corporation as servicer ("Wilshire") and
JPMorgan Chase Bank as trustee (the "Trustee"). Capitalized terms used, but not
defined herein or in Exhibit 1 hereto, 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

                                      I-1
<PAGE>

pass-through entity does not have actual knowledge that such affidavit is false.
(For this purpose, a "pass-through entity" includes a regulated investment
company, a real estate investment trust or common trust fund, a partnership,
trust or estate, and certain cooperatives and, except as may be provided in
Treasury Regulations, persons holding interests in pass-through entities as a
nominee for another Person.)

      5. The Transferee has reviewed the provisions of Section 5.02(c) of the
Agreement (attached hereto as Exhibit 2 and incorporated herein by reference)
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(c) 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.

      8. The Transferee's taxpayer identification number is [_____________].

      9. The Transferee is a United States Person.

      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 (a) not an employee benefit plan that is subject to
ERISA or a plan that is subject to Section 4975 of the Code, and the Transferee
is not acting on behalf of such a plan or (b) an employee benefit plan that is
subject to ERISA or a plan that is subject to Section 4975 of the Code, and the
Transferee is not acting on behalf of such a plan and will provide an Opinion of
Counsel in accordance with the provisions of Agreement.

                                     * * *

                                      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 _____________, 20___.

                                        ________________________________________
                                        Print Name of Transferee

                                        By: ____________________________________
                                        Name:
                                        Title:

[Corporate Seal]

ATTEST:

______________________________
[Assistant] Secretary

      Personally appeared before me the above-named , known or proved to me to
be the same person who executed the foregoing instrument and to be the of the
Transferee, and acknowledged that he executed the same as his free act and deed
and the free act and deed of the Transferee.

      Subscribed and sworn before me this ______ day of _______________, 20___.

                                        ________________________________________
                                        NOTARY PUBLIC

                                        My Commission expires the _____ day of

                                        _________________, 20___.

                                      I-3
<PAGE>

                                    EXHIBIT 1
                                       to
                                    EXHIBIT I

Certain Definitions

      "Ownership Interest": As to any Residual 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.

      "Permitted Transferee": Any person other than (i) the United States, any
State or political subdivision thereof, or any agency or instrumentality of any
of the foregoing, (ii) a foreign government, International Organization or any
agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in section 521 of the Code)
which is exempt from tax imposed by Chapter 1 of the Code (including the tax
imposed by section 511 of the Code on unrelated business taxable income) on any
excess inclusions (as defined in section 860E(c)(1) of the Code) with respect to
any Residual Certificate, (iv) rural electric and telephone cooperatives
described in section 1381(a)(2)(C) of the Code, (v) a Person that is not a
United States Person, and (vi) a Person designated as a non-Permitted Transferee
by the Depositor based upon an Opinion of Counsel that the Transfer of an
Ownership Interest in a Residual Certificate to such Person may cause any REMIC
created hereunder to fail to qualify as a REMIC at any time that the
Certificates are outstanding. The terms "United States," "State" and
"International Organization" shall have the meanings set forth in section 7701
of the Code or successor provisions. A corporation will not be treated as an
instrumentality of the United States or of any State or political subdivision
thereof for these purposes if all of its activities are subject to tax and, with
the exception of Freddie Mac, a majority of its board of directors is not
selected by such government unit.

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

      "Transfer": Any direct or indirect transfer or sale of any Ownership
Interest in a Residual Certificate.

                                      I-1-1
<PAGE>

                                    EXHIBIT 2
                                       to
                                    EXHIBIT I

                        Section 5.02(c) of the Agreement

      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 the rights
of each Person acquiring any Ownership Interest in a Residual Certificate are
expressly subject to the following provisions:

            (i) Each Person holding or acquiring any Ownership Interest in a
      Residual 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 Ownership Interest in a Residual Certificate may be
      registered on the Closing Date or thereafter transferred, and the Trustee
      shall not register the Transfer of any Residual Certificate unless, in
      addition to the certificates required to be delivered to the Trustee under
      subparagraph (b) above, the Trustee shall have been furnished with an
      affidavit (a "Transfer Affidavit") of the initial owner or the proposed
      transferee in the form attached hereto as Exhibit I.

            (iii) Each Person holding or acquiring any Ownership Interest in a
      Residual Certificate shall agree (A) to obtain a Transfer Affidavit from
      any other Person to whom such Person attempts to Transfer its Ownership
      Interest in a Residual Certificate, (B) to obtain a Transfer Affidavit
      from any Person for whom such Person is acting as nominee, trustee or
      agent in connection with any Transfer of a Residual Certificate and (C)
      not to Transfer its Ownership Interest in a Residual Certificate or to
      cause the Transfer of an Ownership Interest in a Residual Certificate to
      any other Person if it has actual knowledge that such Person is not a
      Permitted Transferee.

            (iv) Any attempted or purported Transfer of any Ownership Interest
      in a Residual Certificate in violation of the provisions of this Section
      5.02(c) shall be absolutely null and void and shall vest no rights in the
      purported Transferee. If any purported transferee shall become a Holder of
      a Residual Certificate in violation of the provisions of this Section
      5.02(c), then the last preceding Permitted Transferee shall be restored to
      all rights as Holder thereof retroactive to the date of registration of
      Transfer of such Residual Certificate. The Trustee shall be under no
      liability to any Person for any registration of Transfer of a Residual
      Certificate that is in fact not permitted by Section 5.02(b) and this
      Section 5.02(c) or for making any payments due on such 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 Transfer was
      registered after receipt of the related Transfer Affidavit, Transferor
      Certificate and either the Rule 144A Letter or the Investment Letter. The
      Trustee shall be entitled but not obligated to recover from any Holder of
      a Residual Certificate that was in fact not a Permitted Transferee at the
      time it became a Holder or, at such subsequent time as it became

                                      I-2-1
<PAGE>

      other than a Permitted Transferee, all payments made on such Residual
      Certificate at and after either such time. Any such payments so recovered
      by the Trustee shall be paid and delivered by the Trustee to the last
      preceding Permitted Transferee of such Certificate.

            (v) The Depositor shall use its best efforts to make available, upon
      receipt of written request from the Trustee, all information necessary to
      compute any tax imposed under Section 860E(e) of the Code as a result of a
      Transfer of an Ownership Interest in a Residual Certificate to any Holder
      who is not a Permitted Transferee.

            The restrictions on Transfers of a Residual Certificate set forth in
this Section 5.02(c) shall cease to apply (and the applicable portions of the
legend on a Residual Certificate may be deleted) with respect to Transfers
occurring after delivery to the Trustee of an Opinion of Counsel, which Opinion
of Counsel shall not be an expense of the Trust Fund, the Trustee, the Seller or
the Servicer, to the effect that the elimination of such restrictions will not
cause the Trust Fund hereunder to fail to qualify as a REMIC at any time that
the Certificates are outstanding or result in the imposition of any tax on the
Trust Fund, a Certificateholder or another Person. Each Person holding or
acquiring any Ownership Interest in a Residual Certificate hereby consents to
any amendment of this Agreement which, based on an Opinion of Counsel furnished
to the Trustee, is reasonably necessary (a) to ensure that the record ownership
of, or any beneficial interest in, a Residual Certificate is not transferred,
directly or indirectly, to a Person that is not a Permitted Transferee and (b)
to provide for a means to compel the Transfer of a Residual Certificate which is
held by a Person that is not a Permitted Transferee to a Holder that is a
Permitted Transferee.

                                      I-2-2
<PAGE>

                                    EXHIBIT J

                         FORM OF TRANSFEROR CERTIFICATE

__________, 200__

Credit Suisse First Boston Mortgage Securities Corp.
11 Madison Avenue, 4th Floor
New York, New York 10010
Attention: John Graham

JPMorgan Chase Bank
4 New York Plaza
New York, New York 10004

            Re:   Credit Suisse First Boston Mortgage Securities Corp.,
                  Home Equity Mortgage Trust 2004-2
                  Home Equity Mortgage Pass-Through Certificates,
                  Series 2004-2, Class [___]

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 and (c)
to the extent we are disposing of a Class [A-R][A-RL] Certificate, we have no
knowledge the Transferee is not a Permitted Transferee.

                                        Very truly yours,

                                        ________________________________________
                                        Print Name of Transferor

                                        By: ____________________________________
                                        Authorized Officer

                                      J-1
<PAGE>

                                    EXHIBIT K

                    FORM OF INVESTMENT LETTER (NON-RULE 144A)

__________, 200__

Credit Suisse First Boston Mortgage Securities Corp.
11 Madison Avenue, 4th Floor
New York, New York 10010
Attention: John Graham

JPMorgan Chase Bank
4 New York Plaza
New York, New York 10004

            Re:   Credit Suisse First Boston Mortgage Securities Corp.,
                  Home Equity Mortgage Trust 2004-2
                  Home Equity Mortgage Pass-Through Certificates, Series
                  2004-2, Class [___]

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 are an
insitutional "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 or arrangement 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 or arrangement nor are we using the assets of any such plan or
arrangement to effect such or we have provided the opinion letter set forth in
section 5.02 of the Pooling and Servicing Agreement, (f) 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
(h) below), (g) 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 (h) 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

                                      K-1
<PAGE>

satisfactory to the addressees of this Certificate that such sale, transfer or
other disposition may be made pursuant to an exemption from the Act, (2) the
purchaser or transferee of such Certificate has executed and delivered to you a
certificate to substantially the same effect as this certificate, and (3) the
purchaser or transferee has otherwise complied with any conditions for transfer
set forth in the Pooling and Servicing Agreement.

                                        Very truly yours,

                                        ________________________________________
                                        Print Name of Transferor

                                        By: ____________________________________
                                        Authorized Officer

                                      K-2
<PAGE>

                                    EXHIBIT L

                            FORM OF RULE 144A LETTER

____________, 200__
Credit Suisse First Boston Mortgage Securities Corp.
11 Madison Avenue, 4th Floor
New York, New York 10010
Attention: John Graham

JPMorgan Chase Bank
4 New York Plaza
New York, New York 10004

            Re:   Credit Suisse First Boston Mortgage Securities Corp.,
                  Home Equity Mortgage Trust 2004-2
                  Home Equity Mortgage Pass-Through Certificates, Series 2004-2,
                  Class [___]

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 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 or arrangement 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 or arrangement
nor using the assets of any such plan or arrangement to effect such acquisition,
(e) 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, (f) we are a "qualified institutional buyer"
as that term is defined in Rule 144A under the Act ("Rule 144A") and have
completed either of the forms of certification to that effect attached hereto as

                                      L-1
<PAGE>

Annex 1 or Annex 2, (g) we are aware that the sale to us is being made in
reliance on Rule 144A, and (h) 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 (A) 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 (B) pursuant to another exemption from registration under the Act.

                                        Very truly yours,

                                        ________________________________________
                                        Print Name of Transferor

                                        By: ____________________________________
                                        Authorized Officer

                                      L-2
<PAGE>

ANNEX 1 TO EXHIBIT L

            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:

      1. As indicated below, the undersigned is the President, Chief Financial
Officer, Senior Vice President or other executive officer of the Buyer.

      2. 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
1 excluded securities referred to below) as of the end of the Buyer's most
recent fiscal year (such amount being calculated in accordance with Rule 144A
and (ii) the Buyer satisfies the criteria in the category marked below.

      ___ Corporation, etc. The Buyer is a corporation (other than a bank,
      savings and loan association or similar institution), Massachusetts or
      similar business trust, partnership, or charitable organization described
      in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended.

      ___ Bank. The Buyer (a) is a national bank or banking institution
      organized under the laws of any State, territory or the District of
      Columbia, the business of which is substantially confined to banking and
      is supervised by the State or territorial banking commission or similar
      official or is a foreign bank or equivalent institution, and (b) has an
      audited net worth of at least $25,000,000 as demonstrated in its latest
      annual financial statements, a copy of which is attached hereto.

      ___ Savings and Loan. The Buyer (a) is a savings and loan association,
      building and loan association, cooperative bank, homestead association or
      similar institution, which is supervised and examined by a State or
      Federal authority having supervision over any such institutions or is a
      foreign savings and loan association or equivalent institution and (b) has
      an audited net worth of at least $25,000,000 as demonstrated in its latest
      annual financial statements, a copy of which is attached hereto.

      ___ Broker-dealer. The Buyer is a dealer registered pursuant to Section 15
      of the Securities Exchange Act of 1934.

----------
      (1)   Buyer 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.

                                      L-1-1
<PAGE>

      ___ 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.

      3. The term "securities" as used herein does not include (i) securities of
issuers that are affiliated with the Buyer, (ii) securities that are part of an
unsold allotment to or subscription by the Buyer, if the Buyer is a dealer,
(iii) securities issued or guaranteed by the U.S. or any instrumentality
thereof, (iv) bank deposit notes and certificates of deposit, (v) loan
participations, (vi) repurchase agreements, (vii) securities owned but subject
to a repurchase agreement and (viii) currency, interest rate and commodity
swaps.

      4. 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.

                                      L-1-2
<PAGE>

      5. 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.

      6. Until the date of purchase of the Rule 144A Securities, the Buyer will
notify each of the parties to which this certification is made of any changes in
the information and conclusions herein. Until such notice is given, the Buyer's
purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan is provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                        ________________________________________
                                        Print Name of Buyer

                                        By: ____________________________________
                                        Name:
                                        Title:

                                        Date: __________________________________

                                      L-1-3
<PAGE>

ANNEX 2 TO EXHIBIT L

            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.

                                      L-2-1
<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: __________________________________

                                      L-2-2
<PAGE>

                                    EXHIBIT M

                               REQUEST FOR RELEASE
                                  (for Trustee)

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                        Home Equity Mortgage Trust 2004-2
          Home Equity Mortgage Pass-Through Certificates, Series 2004-2

Loan Information

Name of Mortgagor:                      ________________________________________

Servicer
Loan No.:                               ________________________________________

Trustee

Name:

Address:                                ________________________________________
                                        ________________________________________
                                        ________________________________________

Trustee
Mortgage File No.:

      The undersigned Servicer hereby acknowledges that it has received from
LaSalle Bank National Association, as Custodian for the Holders of Mortgage
Pass-Through Certificates, of the above-referenced Series, the documents
referred to below (the "Documents"). All capitalized terms not otherwise defined
in this Request for Release shall have the meanings given them in the Pooling
and Servicing Agreement (the "Pooling and Servicing Agreement") relating to the
above-referenced Series among Credit Suisse First Boston Mortgage Securities
Corp. as depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire
Credit Corporation as servicer ("Wilshire") and JPMorgan Chase Bank as trustee
(the "Trustee").

( )   Mortgage Note dated _____________________, _______, in the original
      principal sum of $___________________, made by ____________________.
      payable to, or endorsed to the order of, the Trustee.

( )   Mortgage recorded on ________________ as instrument no. ______________
      in the County Recorder's Office of the County of ___________________,
      State of ___________ in book/reel/docket _________________ of official
      records at page/image _____________.

                                      M-1
<PAGE>

( )   Deed of Trust recorded on _____________ as instrument no. ______________
      in the County Recorder's Office of the County of _______________, State of
      ______________ in book/reel/docket _____________________ of official
      records at page/image _________.

( )   Assignment of Mortgage or Deed of Trust to the Trustee, recorded on
      _________ as instrument no. ______________ in the County Recorder's Office
      of the County of ______, State of ________________ in book/reel/docket
      _______________ of official records at page/image _______________.

( )   Other documents, including any amendments, assignments or other
      assumptions of the Mortgage Note or Mortgage.

      ( )   ____________________________________________________________________

      ( )   ____________________________________________________________________

      ( )   ____________________________________________________________________

      ( )   ____________________________________________________________________

      The undersigned Servicer hereby acknowledges and agrees as follows:

            (1) Such Servicer shall hold and retain possession of the Documents
            in trust for the benefit of the Trustee, solely for the purposes
            provided in the Agreement.

            (2) Such Servicer shall not cause or knowingly permit the Documents
            to become subject to, or encumbered by, any claim, liens, security
            interest, charges, writs of attachment or other impositions nor
            shall the Servicer, if applicable, assert or seek to assert any
            claims or rights of setoff to or against the Documents or any
            proceeds thereof.

            (3) Such Servicer shall return each and every Document previously
            requested from the Mortgage File to the Custodian when the need
            therefor no longer exists, unless the Mortgage Loan relating to the
            Documents has been liquidated and the proceeds thereof have been
            remitted to the Certificate Account and except as expressly provided
            in the Agreement.

            (4) The Documents and any proceeds thereof, including any proceeds
            of proceeds, coming into the possession or control of such Servicer
            shall at all times be earmarked for the account of the Custodian,
            and such Servicer shall keep the Documents and any proceeds separate
            and distinct from all other property in such Servicer's possession,
            custody or control.

                                      M-2
<PAGE>

                                        [Servicer]

                                        By _____________________________________
                                        Its ____________________________________

Date: ____________, 20__

                                      M-3
<PAGE>

                                    EXHIBIT N

                      FORM OF SUBSEQUENT TRANSFER AGREEMENT

      THIS SUBSEQUENT TRANSFER AGREEMENT, dated as of _________ ___, 2004 (this
"Subsequent Transfer Agreement"), among CREDIT SUISSE FIRST BOSTON MORTGAGE
SECURITIES CORP., a Delaware corporation, as depositor (the "Depositor"), DLJ
MORTGAGE CAPITAL, INC., a Delaware corporation, in its capacity as seller under
the Pooling and Servicing Agreement referred to below (the "Seller"), WILSHIRE
CREDIT CORPORATION, as servicer ("Wilshire" or the "Servicer") and JPMORGAN
CHASE BANK, a national banking association, as trustee (the "Trustee");

      WHEREAS, the parties hereto are also among the parties to the Pooling and
Servicing Agreement among Credit Suisse First Boston Mortgage Securities Corp.,
as depositor, Wilshire Credit Corporation, as servicer, DLJ Mortgage Capital,
Inc., as seller and JPMorgan Chase Bank, as trustee, dated as of April 1, 2004
(the "Pooling and Servicing Agreement"), in relation to the Home Equity Mortgage
Pass-Through Certificates, Series 2004-2;

      WHEREAS, Sections 2.01(f) of the Pooling and Servicing Agreement provides
for the parties hereto to enter into this Subsequent Transfer Agreement in
accordance with the terms and conditions of the Pooling and Servicing Agreement;

      NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration the receipt and adequacy of which are hereby acknowledged
the parties hereto agree as follows:

      (i) The "Subsequent Transfer Date" with respect to this Subsequent
Transfer Agreement shall be ____________, 200__.

      (ii) The "Aggregate Subsequent Purchase Amount" with respect to this
Subsequent Transfer Agreement shall be $____________, provided, however, that
such amount shall not exceed the amount on deposit in the Pre-Funding Account.

      (iii) The Subsequent Mortgage Loans conveyed on the Subsequent Transfer
Date shall satisfy the pool characteristics for the Trust Fund identified in
Section 2.01(f) of the Pooling and Servicing Agreement.

      (iv) In case any provision of this Subsequent Transfer Agreement shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions or obligations shall not in any way be affected or
impaired thereby.

      (v) In the event of any conflict between the provisions of this Subsequent
Transfer Agreement and the Pooling and Servicing Agreement, the provisions of
the Pooling and Servicing Agreement shall

                                      N-1
<PAGE>

prevail. Capitalized terms used herein and not otherwise defined have the
meanings in the Pooling and Servicing Agreement.

      (vi) The Seller hereby sells, transfers, assigns, sets over and otherwise
conveys to the Trustee for the benefit of the Certificateholders, without
recourse, all right title and interest in the Subsequent Mortgage Loans
identified in Schedule A, including all interest and principal due on or with
respect to such Subsequent Mortgage Loans on or after the Subsequent Cut-off
Date and all interest and principal payments on such Subsequent Mortgage Loans
received prior to the Subsequent Cut-off Date in respect of installments of
interest and principal due thereafter, but not including principal and interest
due on such Subsequent Mortgage Loans prior to the Subsequent Cut-off Date, any
insurance policies in respect of such Subsequent Mortgage Loans and all proceeds
of any of the foregoing.

      (vii) This Subsequent Transfer Agreement shall be governed by, and shall
be construed and enforced in accordance with the laws of the State of New York.

      (viii) The Subsequent Transfer Agreement may be executed in one or more
counterparts, each of which so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the
same instrument.

                                      N-2
<PAGE>

                                   EXHIBIT O-1

                    FORM OF COLLECTION ACCOUNT CERTIFICATION

                              [             ], 20__

      [Servicer's name] hereby certifies that it has established the account
described below as a Collection Account pursuant to Section 3.05 of the Pooling
and Servicing Agreement, dated as of April 1, 2004, among Credit Suisse First
Boston Mortgage Securities Corp. as depositor, DLJ Mortgage Capital, Inc. as
seller ("DLJMC"), Wilshire Credit Corporation as servicer ("Wilshire"), and
JPMorgan Chase Bank as trustee (the "Trustee").

Title of Account:       [Servicer's Name], in trust for the Holders of Credit
                        Suisse First Boston Mortgage Securities Corp., Home
                        Equity Mortgage Pass-Through Certificates, Series
                        2004-2.

Account Number: ______________

Address of officer or branch
of the Company at
which Account is maintained:

                        ___________________________
                        ___________________________
                        ___________________________

                        [Servicer's Name], AS SERVICER

                        By: _______________________

                        Name: _____________________

                        Title: ____________________

                                      O-1-1
<PAGE>

                                   EXHIBIT O-2

                   FORM OF COLLECTION ACCOUNT LETTER AGREEMENT

                              [             ], 20__

To:   ___________________
      ___________________
      ___________________
      (the "Depository")

      As Servicer under the Pooling and Servicing Agreement, dated as of April
1, 2004, among Credit Suisse First Boston Mortgage Securities Corp. as
depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire Credit
Corporation as servicer ("Wilshire") and JPMorgan Chase Bank as trustee (the
"Trustee") (the "Agreement"), we hereby authorize and request you to establish
an account, as a Collection Account pursuant to Section 3.05 of the Agreement,
to be designated as "[Servicer's Name], in trust for the Holders of Credit
Suisse First Boston Mortgage Securities Corp., Home Equity Mortgage Pass-Through
Certificates, Series 2004-2." All deposits in the account shall be subject to
withdrawal therefrom by order signed by the Servicer. This letter is submitted
to you in duplicate. Please execute and return one original to us.

                                        [Servicer's Name], AS SERVICER

                                        By: ____________________________________

                                        Name: __________________________________

                                        Title: _________________________________

                                        Date: __________________________________

                                      O-2-1
<PAGE>

The undersigned, as Depository, hereby certifies that the above described
account has been established under Account Number _________ at the office of the
Depository indicated above and agrees to honor withdrawals on such account as
provided above. The full amount deposited at any time in the account will be
insured up to applicable limits by the Federal Deposit Insurance Corporation
through the Bank Insurance Fund ("BIF") or the Savings Association Insurance
Fund ("SAIF").

                                        ________________________________________
                                        Depository

                                        By: ____________________________________

                                        Name: __________________________________

                                        Title: _________________________________

                                        Date: __________________________________

                                      O-2-2
<PAGE>

                                   EXHIBIT P-1

                      FORM OF ESCROW ACCOUNT CERTIFICATION

                              [             ], 20__

      [Servicer's Name] hereby certifies that it has established the account
described below as an Escrow Account pursuant to Section 3.06 of the Pooling and
Servicing Agreement, dated as of April 1, 2004, among Credit Suisse First Boston
Mortgage Securities Corp. as depositor, DLJ Mortgage Capital, Inc. as seller
("DLJMC"), Wilshire Credit Corporation as servicer ("Wilshire") and JPMorgan
Chase Bank as trustee (the "Trustee").

Title of Account:       "Credit Suisse First Boston Mortgage Securities Corp.,
                        Home Equity Mortgage Trust 2004-2, Home Equity Mortgage
                        Pass-Through Certificates, Series 2004-2"

Account Number:         ___________________

Address of officer or branch of the Company at which Account is maintained:

                        ___________________________
                        ___________________________
                        ___________________________

                        [Servicer's Name], AS SERVICER

                        By: _______________________

                        Name: _____________________

                        Title: ____________________

                                      P-1-1
<PAGE>

                                   EXHIBIT P-2

                     FORM OF ESCROW ACCOUNT LETTER AGREEMENT

                              [             ], 20__

To:   ___________________
      ___________________
      ___________________
      (the "Depository")

      As Servicer under the Pooling and Servicing Agreement, dated as of April
1, 2004, among Credit Suisse First Boston Mortgage Securities Corp. as
depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire Credit
Corporation as servicer ("Wilshire") and JPMorgan Chase Bank as trustee (the
"Trustee") (the "Agreement"), we hereby authorize and request you to establish
an account, as an Escrow Account pursuant to Section 3.06 of the Agreement, to
be designated as "Credit Suisse First Boston Mortgage Securities Corp., Home
Equity Mortgage Trust 2004-2, Home Equity Mortgage Pass-Through Certificates,
Series 2004-2". All deposits in the account shall be subject to withdrawal
therefrom by order signed by the Servicer. This letter is submitted to you in
duplicate. Please execute and return one original to us.

[SERVICER'S NAME], AS SERVICER

By: ____________________________

Name: __________________________

Title: _________________________

Date: __________________________

                                      P-2-1
<PAGE>

The undersigned, as Depository, hereby certifies that the above described
account has been established under Account Number ________________ at the office
of the Depository indicated above and agrees to honor withdrawals on such
account as provided above. The full amount deposited at any time in the account
will be insured up to applicable limits by the Federal Deposit Insurance
Corporation through the Bank Insurance Fund ("BIF") or the Savings Association
Insurance Fund ("SAIF").

___________________________
Depository

By: ____________________________

Name: __________________________

Title: _________________________

Date: __________________________

                                      P-2-2
<PAGE>

                                    EXHIBIT Q

                        FORM OF MONTHLY REMITTANCE ADVICE

1) Standard CPI Reports:

      T62C-Monthly Accounting Report
      T62E-Liquidation Report
      S50Y-Private Pool Detail Report
      S214-Summary of Paid in Full Collections
      S215-Summary of Collections
      P139-Trial Balance

2) Standard CPI Tape Format:

      PNB Scheduled Balance Tape
      SPNB Determination Diskette/P45K

At such times as [_______________] is no longer the Servicer of the [________]
Mortgage Loans under the Agreement, the Monthly Remittance Advice also shall
include: (i) the aggregate Excess Servicing Fee to be remitted to
[___________________] on the Distribution Date, (ii) the aggregate Prepayment
Penalties collected by the Servicer of such loans during the preceding calendar
month, and (iii) a list of the Mortgage Loans for which Prepayment Penalties are
being remitted (including with respect to each related Mortgage Loan, the loan
number, borrower name and dollar amount of Prepayment Penalties collected for
such Mortgage Loan).

                                      Q-1
<PAGE>

                                    EXHIBIT R

                           FORM OF CUSTODIAL AGREEMENT

                            (Available Upon Request)

                                      R-1
<PAGE>

                                    EXHIBIT S
                                   [Reserved]

                                      S-1
<PAGE>

                                    EXHIBIT T
                                   [Reserved]

                                      T-1
<PAGE>

                                    EXHIBIT U

                          CHARGED OFF LOAN DATA REPORT
                            (Available Upon Request)

                                      U-1
<PAGE>

                                    EXHIBIT V
                 FORM OF MONTHLY STATEMENT TO CERTIFICATEHOLDERS

      (i) with respect to each Class of Certificates which are not Notional
Amount Certificates and, unless otherwise stated, the related Distribution Date,

            a. the initial Class Principal Balance of such Class as of the
Closing Date;

            b. the Class Principal Balance of such Class before giving effect to
the distribution of principal and interest;

            c. the amount of the related distribution on such Class allocable to
interest;

            d. the amount of the related distribution on such Class allocable to
principal;

            e. the sum of the principal and interest payable to such Class;

            f. the Realized Loss allocable to such Class;

            g. the Carryforward Interest allocable to such Class;

            h. the Class Principal Balance of such Class after giving effect to
the distribution of principal and interest;

            i. the Pass-Through Rate for such Class;

            j. [reserved];

            k. any shortfall in principal allocable to such Class, if such
amount is greater than zero; and

            l. any shortfall in interest allocable to such Class, if such amount
is greater than zero.

      (ii) with respect to each Class of Certificates which are Notional Amount
Certificates and, unless otherwise stated, the related Distribution Date,

            a. the Notional Amount of such Class as of the Cut-off Date;

            b. the Notional Amount of such Class before giving effect to the
distribution of interest;

            c. the amount of the related distribution on such Class allocable to
interest;

                                      V-1
<PAGE>

            d. the amount of the related distribution on such Class allocable to
principal;

            e. the sum of the principal and interest payable to such class;

            f. the Realized Loss allocable to such Class;

            g. the Deferred Interest allocable to such Class;

            h. the Notional Amount of such Class after giving effect to the
distribution of interest;

            i. the Pass-Through Rate for such Class; and

            j. [reserved].

      (iii) with respect to a $1000 factor of the Initial Class Principal
Balance of each Class of Certificates which are not Notional Amount Certificates
and the related Distribution Date,

            a. the CUSIP number assigned to such Class;

            b. the Class Principal Balance of such Class factor prior to giving
effect to the distribution of principal and interest;

            c. the amount of the related distribution allocable to interest on
such Class factor;

            d. the amount of the related distribution allocable to principal on
such Class factor;

            e. the sum of the principal and interest payable to such Class
factor; and

            f. the Class Principal Balance of such Class factor after giving
effect to the distribution of principal and interest.

      (iv) with respect to a $1000 factor of the Initial Class Principal Balance
of each Class of Certificates which are Notional Amount Certificates and the
related Distribution Date,

            a. the CUSIP number assigned to such Class;

            b. the Notional Amount of such Class factor prior to giving effect
to the distribution of interest;

            c. the amount of the related distribution allocable to interest on
such Class factor;

            d. the amount of the related distribution allocable to principal on
such Class factor;

                                      V-2
<PAGE>

            e. the sum of the principal and interest payable to such Class
factor; and

            f. the Notional Amount of such Class factor after giving effect to
the distribution of interest.

      (v) with respect to the related Distribution Date,

            a. the Principal Payment Amount or Principal Remittance Amount;

            b. the amount of Curtailments;

            c. the amount of Curtailment interest adjustments;

            d. the Scheduled Payment of principal;

            e. the amount of Principal Prepayments;

            f. the amount of principal as a result of repurchased Mortgage
Loans;

            g. the Substitution Adjustment Amount;

            h. the aggregate amount of scheduled interest prior to reduction for
fees;

            i. the amount of Net Recoveries;

            j. the amount of reimbursements of Nonrecoverable Advances
previously made;

            k. the amount of recovery of reimbursements previously deemed
nonrecoverable;

            l. the amount of net Liquidation Proceeds;

            m. the amount of Insurance Proceeds;

            n. the amount of any other distributions allocable to principal;

            o. the number of Mortgage Loans as of the first day of the related
Collection Period;

            p. the aggregate Stated Principal Balance of the Mortgage Loans as
of the first day of the related Collection Period;

            q. the number of Mortgage Loans as of the last day of the related
Collection Period;

                                      V-3
<PAGE>

            r. the aggregate Stated Principal Balance of the Mortgage Loans as
of the last day of the related Collection Period;

            s. the sum of the Servicing Fee, the Credit Risk Manager Fee and the
Trustee Fee;

            t. the amount of current Advances;

            u. the amount of outstanding Advances;

            v. the number and aggregate principal amounts of Mortgage Loans
delinquent (1) 31 to 60 days, (2) 61 to 90 days and (3) 91 days or more,
including delinquent bankrupt Mortgage Loans but excluding Mortgage Loans in
foreclosure and REO Property;

            w. the number and aggregate principal amounts of Mortgage Loans that
are currently in bankruptcy, but not delinquent;

            x. the number and aggregate principal amounts of Mortgage Loans that
are in foreclosure;

            y. the Delinquency Rate, Rolling Three Month Delinquency Rate, the
Senior Enhancement Percentage and whether a Trigger Event is in effect;

            z. the number and aggregate principal amount of any REO Properties
as of the close of business on the Determination Date preceding such
Distribution Date;

            aa. current Realized Losses;

            bb. Cumulative Net Realized Losses and whether a Cumulative Loss
Event is occurring;

            cc. the weighted average term to maturity of the Mortgage Loans as
of the close of business on the last day of the calendar month preceding the
related Distribution Date;

            dd. the number of Mortgage Loans that have Prepayment Penalties and
for which prepayments were made during the related Collection Period, as
applicable;

            ee. the aggregate principal balance of Mortgage Loans that have
Prepayment Penalties and for which prepayments were made during the related
Collection Period, as applicable;

            ff. the aggregate amount of Prepayment Penalties collected during
the related Collection Period, as applicable;

                                      V-4
<PAGE>

            gg. [reserved];

            hh. The amount of any funds remaining in the Pre-Funding Account as
of such Distribution Date;

            ii. the weighted average Net Mortgage Rate;

            jj. the Net Excess Spread; and

            kk. [reserved].

      (vi) with respect to the related Distribution Date,

            a. the Targeted Overcollateralization Amount;

            b. the Overcollateralization Amount;

            c. the amount, if any, by which the Targeted Overcollateralization
Amount exceeds the Overcollateralization Amount;

            d. the Overcollateralization Release Amount;

            e. the Monthly Excess Interest; and

            f. the amount of any payment to the Class X-1 Certificates.

                                      V-5
<PAGE>

                                    EXHIBIT W

                         FORM OF DEPOSITOR CERTIFICATION

      Re:   Credit Suisse First Boston Mortgage Securities Corp.
            Home Equity Mortgage Trust 2004-2

      I, __________________________, certify that:

1. 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 Home Equity Mortgage
Trust 2004-2 (the "Trust");

2. Based on my knowledge, the information in these reports, taken as a whole,
does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading as of the
last day of the period covered by this annual report;

3. Based on my knowledge, the distribution information required to be prepared
by the Trustee based upon the servicing information required to be provided by
each Servicer under the Pooling and Servicing Agreement is included in these
reports;

4. Based on my knowledge and upon the annual compliance statements included in
the report and required to be delivered to the Trustee in accordance with the
terms of the Pooling and Servicing Agreement and based upon the review required
under the Pooling and Servicing Agreement, and except as disclosed in the
report, each Servicer has fulfilled its obligations under the Pooling and
Servicing Agreement; and

5. The reports disclose all significant deficiencies relating to each Servicer's
compliance with the minimum servicing standards based, in each case, upon the
report provided by an independent public accountant, after conducting a review
in compliance with the Uniform Single Attestation Program for Mortgage Bankers
or similar standard as set forth in the Pooling and Servicing Agreement, that is
included in these reports.

      In giving the certifications above, I have reasonably relied on the
information provided to me by the following unaffiliated parties: each Servicer
and the Trustee.

      Capitalized terms used but not defined herein have the meanings ascribed
to them in the Pooling and Servicing Agreement, dated April 1, 2004 (the
"Pooling and Servicing Agreement"), among Credit Suisse First Boston Mortgage
Securities Corp., as depositor (the "Depositor"), DLJ Mortgage Capital, Inc., as
seller, Wilshire Credit Corporation, as servicer ("Wilshire") and JPMorgan Chase
Bank, as trustee (the "Trustee").

                                      W-1
<PAGE>

                                        ________________________________________
                                        [Name]
                                        [Title]
                                        [Date]

                                      W-2
<PAGE>

                                    EXHIBIT X

                          FORM OF TRUSTEE CERTIFICATION

      Re:   Credit Suisse First Boston Mortgage Securities Corp.
            Home Equity Mortgage Trust 2004-2

      JPMorgan Chase Bank (the "Trustee") hereby certifies to Credit Suisse
First Boston Mortgage Securities Corp. (the "Depositor"), and each Person, if
any, who "controls" the Depositor within the meaning of the Securities Act of
1933, as amended, and its officers, directors and affiliates, and with the
knowledge and intent that they will rely upon this certification, that:

1. The Trustee has reviewed the annual report on Form 10-K for the fiscal year
[___], and all reports on Form 8-K containing distribution reports filed in
respect of periods included in the year covered by that annual report, of the
Depositor relating to the above-referenced trust;

2. Based on the Trustee's knowledge, and assuming the accuracy and completeness
of the information supplied to the Trustee by each Servicer, the distribution
information in the distribution reports contained in all reports on Form 8-K
included in the year covered by the annual report on Form 10-K for fiscal year
[_____], 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 required by the
Pooling and Servicing Agreement to be included therein and necessary to make the
statements made, in light of the circumstances under which such statements were
made, not misleading as of the last day of the period covered by that annual
report; and

3. Based on the Trustee's knowledge, the distribution information required to be
provided by the Trustee under the Pooling and Servicing Agreement is included in
these reports.

      Capitalized terms used but not defined herein have the meanings ascribed
to them in the Pooling and Servicing Agreement, dated April 1, 2004 (the
"Pooling and Servicing Agreement"), among Credit Suisse First Boston Mortgage
Securities Corp., as depositor (the "Depositor"), DLJ Mortgage Capital, Inc., as
seller, Wilshire Credit Corporation, as servicer ("Wilshire") and JPMorgan Chase
Bank, as trustee (the "Trustee").

                                        JPMORGAN CHASE BANK,
                                        as Trustee

                                        By: ____________________________________
                                        [Name]
                                        [Title]
                                        [Date]

                                      X-1
<PAGE>

                                    EXHIBIT Y

                           FORM SERVICER CERTIFICATION

      Re:   Credit Suisse First Boston Mortgage Securities Corp.
            Home Equity Mortgage Trust 2004-2

      I, ___________________________, a duly elected and acting officer of
[__________________] (the "Servicer"), certify pursuant to Section 8.12(d) of
the Pooling and Servicing Agreement to the Depositor, the Trustee and each
Person, if any, who "controls" the Depositor or the Trustee within the meaning
of the Securities Act of 1933, as amended, and their respective officers and
directors, with respect to the calendar year immediately preceding the date of
this Certificate (the "Relevant Year"), as follows":

1. For purposes of this Certificate, "Relevant Information" means the
information in the certificate provided pursuant to Section 3.16 of the Pooling
and Servicing Agreement (the "Annual Compliance Certificate") for the Relevant
Year and the information in all servicing reports required pursuant to the
Pooling and Servicing Agreement to be provided by the Servicer to the Trustee
during the Relevant Year (as such information is amended or corrected in writing
and delivered to the Trustee). Based on my knowledge, the Relevant Information,
taken as a whole, does not contain any untrue statement of a material fact or
omit to state a material fact required to be stated therein which is necessary
to make the statements made therein, in light of the circumstances under which
such statements were made, not misleading as of the last day of the Relevant
Year;

2. The Relevant Information required to be provided to the Trustee under the
Pooling and Servicing Agreement has been provided to the Trustee;

3. I am responsible for reviewing the activities performed by the Servicer under
the Pooling and Servicing Agreement during the Relevant Year. Based upon the
review required under the Pooling and Servicing Agreement and except as
disclosed in the Annual Compliance Certificate or the accountants' statement
provided pursuant to Section 3.17 of the Pooling and Servicing Agreement, to the
best of my knowledge, the Servicer has fulfilled its obligations under the
Pooling and Servicing Agreement throughout the Relevant Year.

      Capitalized terms used but not defined herein have the meanings ascribed
to them in the Pooling and Servicing Agreement, dated April 1, 2004 (the
"Pooling and Servicing Agreement"), among Credit Suisse First Boston Mortgage
Securities Corp., as depositor (the "Depositor"), DLJ Mortgage Capital, Inc., as
seller, Wilshire Credit Corporation, as servicer ("Wilshire") and JPMorgan Chase
Bank, as trustee (the "Trustee").

                                        [_____________________________________],
                                        as Servicer

                                        By: ____________________________________
                                        [Name]
                                        [Title]

                                      Y-1
<PAGE>

                                    EXHIBIT Z

                INFORMATION TO BE PROVIDED BY SERVICER TO TRUSTEE

      The following information with respect to each Mortgage Loan will be
e-mailed by each Servicer to the Trustee in accordance with Section 4.10:

Servicer loan number
Trust loan number (if applicable)
Scheduled net interest
Scheduled principal
Curtailment applied
Curtailment adjustment
Mortgage Rate
Servicing Fee Rate
P&I payment
Beginning scheduled balance
Ending scheduled balance
Ending actual principal balance
Due Date
Prepayment in full principal
Prepayment in full net interest
Prepayment in full penalty
Delinquencies:
      1-30
      31-60
      61-90
      90+
Foreclosures
REO Properties
Loss amounts and loss types

                                      Z-1
<PAGE>

                                   EXHIBIT AA

                        FORM OF LIMITED POWER OF ATTORNEY

                            LIMITED POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that JPMorgan Chase Bank, a New York banking
corporation, having a place of business at 4 New York Plaza, 6th Floor, New
York, N.Y. 10004, as Trustee (and in no personal or other representative
capacity) under the Pooling and Servicing Agreement, dated as of April 1, 2004
(as amended, restated, supplemented or otherwise modified from time to time, the
"Agreement"; capitalized terms not defined herein have the definitions assigned
to such terms in the Agreement), relating to the Home Equity Mortgage
Pass-Through Certificates, Series 2004-2, hereby appoints [_______________], in
its capacity as a Servicer under the Agreement, as the Trustee's true and lawful
Special Attorney-in-Fact, in the Trustee's name, place and stead and for the
Trustee's benefit, but only in its capacity as Trustee aforesaid, to perform all
acts and execute all documents as may be customary, necessary and appropriate to
effectuate the following enumerated transactions in respect of any mortgage,
deed of trust, promissory note or real estate owned from time to time owned
(beneficially or in title, whether the Trustee is named therein as mortgagee or
beneficiary or has become mortgagee or beneficiary by virtue of endorsement,
assignment or other conveyance) or held by or registered to the Trustee
(directly or through custodians or nominees), or in respect of which the Trustee
has a security interest or other lien, all as provided under the applicable
Agreement and only to the extent the respective Trustee has an interest therein
under the Agreement, and in respect of which the Servicer is acting as servicer
pursuant to the Agreement (the "Mortgage Documents").

This appointment shall apply to the following enumerated transactions under the
Agreement only:

      1. The modification or re-recording of any Mortgage Document for the
purpose of correcting it to conform to the original intent of the parties
thereto or to correct title errors discovered after title insurance was issued
and where such modification or re-recording does not adversely affect the lien
under the Mortgage Document as insured.

      2. The subordination of the lien under a Mortgage Document to an easement
in favor of a public utility company or a state or federal agency or unit with
powers of eminent domain including, without limitation, the execution of partial
satisfactions/releases, partial reconveyances and the execution of requests to
trustees to accomplish same.

      3. The conveyance of the properties subject to a Mortgage Document to the
applicable mortgage insurer, or the closing of the title to the property to be
acquired as real estate so owned, or conveyance of title to real estate so
owned.

      4. The completion of loan assumption and modification agreements in
respect of Mortgage Documents.

                                      AA-1
<PAGE>

      5. The full or partial satisfaction/release of a Mortgage Document or full
conveyance upon payment and discharge of all sums secured thereby, including,
without limitation, cancellation of the related note.

      6. The assignment of any Mortgage Document, in connection with the
repurchase of the mortgage loan secured and evidenced thereby.

      7. The full assignment of a Mortgage Document upon payment and discharge
of all sums secured thereby in conjunction with the refinancing thereof,
including, without limitation, the assignment of the related note.

      8. With respect to a Mortgage Document, the foreclosure, the taking of a
deed in lieu of foreclosure, or the completion of judicial or non-judicial
foreclosure or termination, cancellation or rescission of any such foreclosure,
including, without limitation, any and all of the following acts:

            a.    the substitution of trustee(s) serving under a deed of trust,
                  in accordance with state law and the deed of trust;

            b.    the preparation and issuance of statements of breach or
                  non-performance;

            c.    the preparation and filing of notices of default and/or
                  notices of sale;

            d.    the cancellation/rescission of notices of default and/or
                  notices of sale;

            e.    the taking of a deed in lieu of foreclosure; and

            f.    the preparation and execution of such other documents and
                  performance of such other actions as may be necessary under
                  the terms of the Mortgage Document or state law to
                  expeditiously complete said transactions in paragraphs 8(a)
                  through 8(e), above.

      9. Demand, sue for, recover, collection and receive each and every sum of
money, debt, account and interest (which now is, or hereafter shall become due
and payable) belonging to or claimed by the Trustee under the Mortgage
Documents, and to use or take any lawful means for recovery thereof by legal
process or otherwise.

      10. Endorse on behalf of the Trustee all checks, drafts and/or negotiable
instruments made payable to the Trustee in respect of the Mortgage Documents.

The Trustee gives the Special Attorney-in-Fact full power and authority to
execute such instruments and to do and perform all and every act and thing
necessary and proper to carry into effect the power or powers granted by this
Limited Power of Attorney, subject to the terms and conditions set forth in the

                                      AA-2
<PAGE>

Agreement including the standard of care applicable to servicers in the
Agreement, and hereby does ratify and confirm what such Special Attorney-in-Fact
shall lawfully do or cause to be done by authority hereof.

                                      AA-3
<PAGE>

IN WITNESS WHEREOF, the Trustee has caused its corporate name and seal to be
hereto signed and affixed and these presents to be acknowledged by its duly
elected and authorized officer this ___ day of ___ , 200_.

                                        JPMORGAN CHASE BANK, as Trustee

                                        By: ____________________________________
                                        Name:
                                        Title:

WITNESS:                                WITNESS:

________________________________        ________________________________________
Name:                                   Name:
Title:                                  Title:

STATE OF NEW YORK
                         SS
COUNTY OF NEW YORK

      On ______________, 200_, before me, the undersigned, a Notary Public in
and for said state, personally appeared __________________, personally known to
me to be the person whose name is subscribed to the within instrument and to be
a duly authorized and acting Senior Vice President of JPMorgan Chase Bank, and
such person acknowledged to me that such person executed the within instrument
in such person's authorized capacity as a Senior Vice President of JPMorgan
Chase Bank, and that by such signature on the within instrument the entity upon
behalf of which such person acted executed the instrument.

      WITNESS my hand and official seal.

                                _________________________________
                                Notary Public

                                      AA-4
<PAGE>

                                   SCHEDULE I

                             MORTGAGE LOAN SCHEDULE

                            (Available Upon Request)

                                      I-1
<PAGE>

                                   SCHEDULE II

                     SELLER'S REPRESENTATIONS AND WARRANTIES

      (i) The Seller is a corporation duly organized, validly existing and in
good standing under the laws of the state of its incorporation;

      (ii) The Seller has full corporate power to own its property, to carry on
its business as presently conducted and to enter into and perform its
obligations under this Agreement;

      (iii) The execution and delivery by the Seller of this Agreement have been
duly authorized by all necessary corporate action on the part of the Seller; and
neither the execution and delivery of this Agreement, nor the consummation of
the transactions herein contemplated hereby, nor compliance with the provisions
hereof, will conflict with or result in a breach of, or constitute a default
under, any of the provisions of any law, governmental rule, regulation,
judgment, decree or order binding on the Seller or its properties or the
certificate of incorporation or by-laws of the Seller, except those conflicts,
breaches or defaults which would not reasonably be expected to have a material
adverse effect on the Seller's ability to enter into this Agreement and to
consummate the transactions contemplated hereby;

      (iv) The execution, delivery and performance by the Seller of this
Agreement and the consummation of the transactions contemplated hereby do not
require the consent or approval of, the giving of notice to, the registration
with, or the taking of any other action in respect of, any state, federal or
other governmental authority or agency, except those consents, approvals,
notices, registrations or other actions as have already been obtained, given or
made and, in connection with the recordation of the Mortgages, powers of
attorney or assignments of Mortgages not yet completed;

      (v) This Agreement has been duly executed and delivered by the Seller and,
assuming due authorization, execution and delivery by the Trustee, the Servicer
and the Depositor, constitutes a valid and binding obligation of the Seller
enforceable against it in accordance with its terms (subject to applicable
bankruptcy and insolvency laws and other similar laws affecting the enforcement
of the rights of creditors generally); and

      (vi) There are no actions, litigation, suits or proceedings pending or to
the knowledge of the Seller, threatened against the Seller before or by any
court, administrative agency, arbitrator or governmental body (i) with respect
to any of the transactions contemplated by this Agreement or (ii) with respect
to any other matter which in the judgment of the Seller if determined adversely
to the Seller would reasonably be expected to materially and adversely affect
the Seller's ability to perform its obligations under this Agreement; and the
Seller is not in default with respect to any order of any court, administrative
agency, arbitrator or governmental body so as to materially and adversely affect
the transactions contemplated by this Agreement.

                                      II-1
<PAGE>

                                  SCHEDULE IIIA

                     WILSHIRE REPRESENTATIONS AND WARRANTIES

      (i) Wilshire is a corporation duly organized, validly existing and in good
standing under the laws of the state of its incorporation;

      (ii) Wilshire has full corporate power to own its property, to carry on
its business as presently conducted and to enter into and perform its
obligations under this Agreement;

      (iii) The execution and delivery by Wilshire of this Agreement have been
duly authorized by all necessary corporate action on the part of Wilshire; and
neither the execution and delivery of this Agreement, nor the consummation of
the transactions herein contemplated hereby, nor compliance with the provisions
hereof, will conflict with or result in a breach of, or constitute a default
under, any of the provisions of any law, governmental rule, regulation,
judgment, decree or order binding on Wilshire or its properties or the
certificate of incorporation or bylaws of Wilshire, except those conflicts,
breaches or defaults which would not reasonably be expected to have a material
adverse effect on Wilshire ability to enter into this Agreement and to
consummate the transactions contemplated hereby;

      (iv) This Agreement has been duly executed and delivered by Wilshire and,
assuming due authorization, execution and delivery by the Trustee, the Seller
and the Depositor, constitutes a valid and binding obligation of Wilshire
enforceable against it in accordance with its terms (subject to applicable
bankruptcy and insolvency laws and other similar laws affecting the enforcement
of the rights of creditors generally); and

      (v) There are no actions, litigation, suits or proceedings pending or to
the knowledge of Wilshire, threatened against Wilshire before or by any court,
administrative agency, arbitrator or governmental body (a) with respect to any
of the transactions contemplated by this Agreement or (b) with respect to any
other matter which in the judgment of Wilshire if determined adversely to
Wilshire would reasonably be expected to materially and adversely affect
Wilshire's ability to perform its obligations under this Agreement, other than
as Servicer has previously advised Seller; and Wilshire is not in default with
respect to any order of any court, administrative agency, arbitrator or
governmental body so as to materially and adversely affect the transactions
contemplated by this Agreement.

                                     IIIA-1
<PAGE>

                                  SCHEDULE IIIB

                                   [Reserved]

                                     IIIB-1
<PAGE>

                                   SCHEDULE IV

          REPRESENTATIONS AND WARRANTIES RELATING TO THE MORTGAGE LOANS

      DLJMC, in its capacity as Seller, hereby makes the representations and
warranties set forth in this Schedule IV to the Depositor and the Trustee, as of
the Closing Date, or the date specified herein, with respect to the Mortgage
Loans identified on Schedule I hereto.

      (i) The Seller or its affiliate is the sole owner of record and holder of
the Mortgage Loan and the indebtedness evidenced by the Mortgage Note.
Immediately prior to the transfer and assignment to the Depositor on the Closing
Date, the Mortgage Loan, including the Mortgage Note and the Mortgage, were not
subject to an assignment or pledge, and the Seller had good and marketable title
to and was the sole owner thereof and had full right to transfer and sell the
Mortgage Loan to the Depositor free and clear of any encumbrance, equity, lien,
pledge, charge, claim or security interest and has the full right and authority
subject to no interest or participation of, or agreement with, any other party,
to sell and assign the Mortgage Loan and following the sale of the Mortgage
Loan, the Depositor will own such Mortgage Loan free and clear of any
encumbrance, equity, participation interest, lien, pledge, charge, claim or
security interest.

      (ii) Any and all requirements of any federal, state or local law
including, without limitation, usury, truth-in-lending, real estate settlement
procedures, consumer credit protection, equal credit opportunity or disclosure
laws applicable to the Mortgage Loan have been complied with in all material
respects.

      (iii) The terms of the Mortgage Note and the Mortgage have not been
impaired, waived, altered or modified in any respect, except by written
instruments which have been recorded to the extent any such recordation is
required by law, or, necessary to protect the interest of the Depositor. No
instrument of waiver, alteration or modification has been executed, and no
Mortgagor has been released, in whole or in part, from the terms thereof except
in connection with an assumption agreement and which assumption agreement is
part of the Mortgage File and the terms of which are reflected in the Mortgage
Loan Schedule; the substance of any such waiver, alteration or modification has
been approved by the issuer of any related Primary Insurance Policy and title
insurance policy, to the extent required by the related policies.

      (iv) The Mortgage Loan complies with all the terms, conditions and
requirements of the originator's underwriting standards in effect at the time of
origination of such Mortgage Loan.

      (v) The information set forth in the Mortgage Loan Schedule, attached to
the Agreement as Schedule I, is complete, true and correct in all material
respects as of the Cut-off Date.

      (vi) With respect to any first lien Mortgage Loan, the related Mortgage is
a valid, subsisting, enforceable and perfected first lien on the Mortgaged
Property and, with respect to any second lien Mortgage Loan, the related
Mortgage is a valid, subsisting, enforceable and perfected second lien on the
Mortgaged Property, and all buildings on the Mortgaged Property and all
installations and mechanical, electrical, plumbing, heating and air conditioning
systems affixed to such buildings, and all additions, alterations and
replacements made at any time with respect to the foregoing securing the
Mortgage Note's

                                      IV-1
<PAGE>

original principal balance. The Mortgage and the Mortgage Note do not contain
any evidence of any security interest or other interest or right thereto. Such
lien is free and clear of all adverse claims, liens and encumbrances having
priority over the first or second lien, as applicable, of the Mortgage subject
only to (1) with respect to any Second Mortgage Loan, the related First Mortgage
Loan, (2) the lien of non-delinquent current real property taxes and assessments
not yet due and payable, (3) covenants, conditions and restrictions, rights of
way, easements and other matters of the public record as of the date of
recording which are acceptable to mortgage lending institutions generally and
either (A) which are referred to or otherwise considered in the appraisal made
for the originator of the Mortgage Loan, or (B) which do not adversely affect
the appraised value of the Mortgaged Property as set forth in such appraisal,
and (4) other matters to which like properties are commonly subject which do not
materially interfere with the benefits of the security intended to be provided
by the Mortgage or the use, enjoyment, value or marketability of the related
Mortgaged Property. Any security agreement, chattel mortgage or equivalent
document related to and delivered in connection with the Mortgage Loan
establishes and creates (1) with respect to any First Mortgage Loan, a valid,
subsisting, enforceable and perfected first lien and first priority security
interest and (2) with respect to any second lien Mortgage Loan, a valid,
subsisting, enforceable and perfected second lien and second priority security
interest, in each case, on the property described therein, and the Seller has
the full right to sell and assign the same to the Depositor.

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

      (viii) All taxes, governmental assessments, insurance premiums, water,
sewer and municipal charges, leasehold payments or ground rents which previously
became due and owing have been paid, or escrow funds have been established in an
amount sufficient to pay for every such escrowed item which remains unpaid and
which has been assessed but is not yet due and payable.

      (ix) The Mortgage Note and the Mortgage are not subject to any right of
rescission, set-off, counterclaim or defense, including, without limitation, the
defense of usury, nor will the operation of any of the terms of the Mortgage
Note or the Mortgage, or the exercise of any right thereunder, render the
Mortgage Note or Mortgage unenforceable, in whole or in part, or subject to any
right of rescission, set-off, counterclaim or defense, including the defense of
usury, and no such right of rescission, set-off, counterclaim or defense has
been asserted with respect thereto.

      (x) The Mortgaged Property is not subject to any material damage by waste,
fire, earthquake, windstorm, flood or other casualty. At origination of the
Mortgage Loan there was, and there currently is, no proceeding pending for the
total or partial condemnation of the Mortgaged Property.

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

                                      IV-2
<PAGE>

      (xii) Seller has delivered or caused to be delivered to the Trustee or the
Custodian on behalf of the Trustee the original Mortgage bearing evidence that
such instruments have been recorded in the appropriate jurisdiction where the
Mortgaged Property is located as determined by the Seller (or, in lieu of the
original of the Mortgage or the assignment thereof, a duplicate or conformed
copy of the Mortgage or the instrument of assignment, if any, together with a
certificate of receipt from the Seller or the settlement agent who handled the
closing of the Mortgage Loan, certifying that such copy or copies represent true
and correct copy(ies) of the original(s) and that such original(s) have been or
are currently submitted to be recorded in the appropriate governmental recording
office of the jurisdiction where the Mortgaged Property is located) or a
certification or receipt of the recording authority evidencing the same.

      (xiii) The Mortgage File contains each of the documents specified in
Section 2.01(b) of the Agreement.

      (xiv) As of the Closing Date, each Mortgage Loan shall be serviced in all
material respects in accordance with the terms of the Agreement.

      (xv) All buildings or other customarily insured improvements upon the
Mortgaged Property are insured by an insurer acceptable under the FNMA Guides,
against loss by fire, hazards of extended coverage and such other hazards as are
provided for in the FNMA Guides or by FHLMC, as well as all additional
requirements set forth in this Agreement. All such standard hazard policies are
in full force and effect and on the date of origination contained a standard
mortgagee clause naming the Seller and its successors in interest and assigns as
loss payee and such clause is still in effect and all premiums due thereon have
been paid. If at the time of origination, the Mortgage Loan was required to have
flood insurance coverage in accordance with the Flood Disaster Protection Act of
1973, as amended, such Mortgage Loan is covered by a flood insurance policy
meeting the requirements of the current guidelines of the Federal Insurance
Administration which policy conforms to FNMA and FHLMC requirements, as well as
all additional requirements set forth in this Agreement. Such policy was issued
by an insurer acceptable under FNMA or FHLMC guidelines. The 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, authorizes the holder of
the Mortgage to maintain such insurance at the Mortgagor's cost and expense and
to seek reimbursement therefor from the Mortgagor.

      (xvi) With respect to each Mortgage Loan that has a Prepayment Penalty
feature, each such Prepayment Penalty is enforceable and, at the time such
Mortgage Loan was originated, each Prepayment Penalty complied with applicable
federal, state and local law, subject to federal preemption where applicable.

      (xvii) As of the Cut-off Date, no Mortgage Loan is (a) a non-performing
loan (i.e. a mortgage loan that is more than 90 days delinquent); (b) a
re-performing loan (i.e. a mortgage loan that was more than 90 days delinquent
within the twelve month period preceding the Cut-off Date but is contractually
current); or (c) a sub-performing loan (i.e. a mortgage loan that is at least 30
days delinquent but subject to a payment plan or agreement pursuant to which the
Mortgagor is contractually current).

      (xviii) The Mortgage Note and the related Mortgage are original and
genuine and each is the legal, valid and binding obligation of the maker
thereof, enforceable in all respects in accordance with its terms

                                      IV-3
<PAGE>

subject to bankruptcy, insolvency, moratorium, reorganization and other laws of
general application affecting the rights of creditors and by general equitable
principles.

      (xix) To the knowledge of the Seller, (i) no proceeds from any Mortgage
Loan were used to finance single-premium credit insurance policies, (ii) no
Mortgage Loan originated prior to October 1, 2002 will impose a Prepayment
Penalty for a term in excess of five years and no Mortgage Loan originated on or
after October 1, 2002 will impose a Prepayment Penalty for a term in excess of
three years, (iii) the related Servicer of each Mortgage Loan has fully
furnished, in accordance with the Fair Credit Reporting Act and its implementing
regulations, accurate and complete information on its borrower credit files to
Equifax, Experian and Trans Union Credit Information on a monthly basis, (iv)
the original principal balance of each Mortgage Loan is within Freddie Mac's
dollar amount for conforming one- to four-family mortgage loans and (v) no
Mortgage Loan secured by a Mortgaged Property located in the State of Georgia
was originated on or after October 1, 2002 and before March 7, 2003, no Mortgage
Loan secured by a Mortgaged Property located in the State of Georgia, originated
on or after October 1, 2002 and before March 7, 2003 is subject to the Georgia
Fair Lending Act (HB 1361) and no Mortgage Loan secured by Mortgaged Property
located in the State of Georgia that was originated on or after March 7, 2003 is
a "high cost home loan" as defined in the Georgia Fair Lending Act (HB 1361), as
amended.

      (xx) Each Mortgage Loan at the time it was made complied in all material
respects with applicable local, state and federal laws, including, but not
limited to, all applicable predatory and abusive lending laws.

      (xxi) No Mortgage Loan is classified as (a) a "high cost mortgage loan"
under the Home Ownership and Equity Protection Act of 1994 or (b) a "high cost
home," "covered," "high cost," "high risk home" or "predatory" loan under any
other applicable state, federal or local law (or a similarly classified loan
using different terminology under a law imposing heightened regulatory scrutiny
or additional legal liability for residential mortgage loans having high
interest rates, points and/or fees).

                                      IV-4DEUTSCHE MORTGAGE SECURITIES, INC.

                                    Depositor

                                       and

                             WELLS FARGO BANK, N.A.

                  Master Servicer and Securities Administrator

                                       and

                                  HSBC BANK USA

                                     Trustee

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

                         POOLING AND SERVICING AGREEMENT

                            Dated as of April 1, 2004

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

                       Mortgage Pass-Through Certificates

                                  Series 2004-3

<PAGE>

<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

                                    ARTICLE I
                                   DEFINITIONS

<S>   <C>                                                                                                       <C>
      Section 1.1    DEFINITIONS..................................................................................6

      Section 1.2    ALLOCATION OF CERTAIN INTEREST SHORTFALL....................................................56

                                   ARTICLE II
           CONVEYANCE OF TRUST FUND; ORIGINAL ISSUANCE OF CERTIFICATES

      Section 2.1    CONVEYANCE OF TRUST FUND....................................................................59

      Section 2.2    ACCEPTANCE BY TRUSTEE.......................................................................59

      Section 2.3    REPURCHASE OR SUBSTITUTION OF LOANS.........................................................59

      Section 2.4    AUTHENTICATION AND DELIVERY OF CERTIFICATES; DESIGNATION OF CERTIFICATES AS REMIC REGULAR
                     AND RESIDUAL INTERESTS......................................................................62

      Section 2.5    REPRESENTATIONS AND WARRANTIES OF THE MASTER SERVICER.......................................62

      Section 2.6    ESTABLISHMENT OF THE TRUST..................................................................64

                                   ARTICLE III
               ADMINISTRATION AND SERVICING OF THE LOANS; ACCOUNTS

      Section 3.1    MASTER SERVICER.............................................................................65

      Section 3.2    REMIC-RELATED COVENANTS.....................................................................66

      Section 3.3    MONITORING OF SERVICERS.....................................................................66

      Section 3.4    FIDELITY BOND...............................................................................67

      Section 3.5    POWER TO ACT; PROCEDURES....................................................................67

      Section 3.6    DUE-ON-SALE CLAUSES; ASSUMPTION AGREEMENTS..................................................68

      Section 3.7    RELEASE OF MORTGAGE FILES...................................................................69

      Section 3.8    DOCUMENTS, RECORDS AND FUNDS IN POSSESSION OF MASTER SERVICER TO BE HELD FOR TRUSTEE........69

      Section 3.9    STANDARD HAZARD INSURANCE AND FLOOD INSURANCE POLICIES......................................70

      Section 3.10   PRESENTMENT OF CLAIMS AND COLLECTION OF PROCEEDS............................................71

      Section 3.11   MAINTENANCE OF THE PRIMARY MORTGAGE INSURANCE POLICIES......................................71

      Section 3.12   TRUSTEE TO RETAIN POSSESSION OF CERTAIN INSURANCE POLICIES AND DOCUMENTS....................71

      Section 3.13   REALIZATION UPON DEFAULTED LOANS............................................................72

      Section 3.14   COMPENSATION FOR THE MASTER SERVICER........................................................72

      Section 3.15   REO PROPERTY................................................................................72

      Section 3.16   ANNUAL OFFICER'S CERTIFICATE AS TO COMPLIANCE...............................................73

      Section 3.17   ANNUAL INDEPENDENT ACCOUNTANT'S SERVICING REPORT............................................74
</TABLE>

                                      -i-

<PAGE>

<TABLE>
<CAPTION>

<S>                  <C>
      Section 3.18   REPORTS FILED WITH SECURITIES AND EXCHANGE COMMISSION.......................................74

      Section 3.19   UCC.........................................................................................75

      Section 3.20   OBLIGATION OF THE MASTER SERVICER IN RESPECT OF COMPENSATING INTEREST.......................75

      Section 3.21   RESERVED....................................................................................75

      Section 3.22   PROTECTED ACCOUNTS..........................................................................75

      Section 3.23   DISTRIBUTION ACCOUNTS.......................................................................77

      Section 3.24   PERMITTED WITHDRAWALS AND TRANSFERS FROM THE DISTRIBUTION ACCOUNTS..........................78

      Section 3.25   RESERVE FUNDS...............................................................................80

      Section 3.26   PREPAYMENT PENALTY VERIFICATION.............................................................81

                                                   ARTICLE IV
                         PAYMENTS TO CERTIFICATEHOLDERS; ADVANCES; STATEMENTS AND REPORTS

      Section 4.1    DISTRIBUTIONS TO GROUP I CERTIFICATEHOLDERS.................................................83

      Section 4.2    ALLOCATION OF REALIZED LOSSES ON THE GROUP I LOANS..........................................89

      Section 4.3    DISTRIBUTIONS TO GROUP II CERTIFICATEHOLDERS................................................91

      Section 4.4    ALLOCATION OF REALIZED LOSSES ON THE GROUP II LOANS.........................................96

      Section 4.5    EFFECT OF DISTRIBUTIONS AND REALIZED LOSSES; FINAL DISTRIBUTIONS ON CERTIFICATES............98

      Section 4.6    STATEMENTS TO CERTIFICATEHOLDERS............................................................99

      Section 4.7    ADVANCES...................................................................................104

      Section 4.8    COMPLIANCE WITH WITHHOLDING REQUIREMENTS...................................................105

      Section 4.9    REMIC DISTRIBUTIONS........................................................................105

                                    ARTICLE V
                                THE CERTIFICATES

      Section 5.1    THE CERTIFICATES...........................................................................111

      Section 5.2    CERTIFICATES ISSUABLE IN CLASSES; DISTRIBUTIONS OF PRINCIPAL AND INTEREST; AUTHORIZED
                     DENOMINATIONS..............................................................................111

      Section 5.3    REGISTRATION OF TRANSFER AND EXCHANGE OF CERTIFICATES......................................112

      Section 5.4    MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES..........................................117

      Section 5.5    PERSONS DEEMED OWNERS......................................................................117

                                             ARTICLE VI
                            THE DEPOSITOR, MASTER SERVICER AND THE CREDIT RISK MANAGER

      Section 6.1    LIABILITY OF THE DEPOSITOR AND THE MASTER SERVICER.........................................118

      Section 6.2    MERGER OR CONSOLIDATION OF THE DEPOSITOR OR THE MASTER SERVICER............................118

      Section 6.3    LIMITATION ON LIABILITY OF THE DEPOSITOR, THE MASTER SERVICER, THE SERVICERS, THE SECURITIES
                     ADMINISTRATOR AND OTHERS...................................................................118
</TABLE>

                                      -ii-

<PAGE>

<TABLE>
<CAPTION>

<S>                  <C>
      Section 6.4    LIMITATION ON RESIGNATION OF THE MASTER SERVICER...........................................119

      Section 6.5    ASSIGNMENT OF MASTER SERVICING.............................................................119

      Section 6.6    RIGHTS OF THE DEPOSITOR IN RESPECT OF THE MASTER SERVICER..................................120

      Section 6.7    DUTIES OF THE CREDIT RISK MANAGER..........................................................120

      Section 6.8    LIMITATION UPON LIABILITY OF THE CREDIT RISK MANAGER.......................................121

      Section 6.9    REMOVAL OF THE CREDIT RISK MANAGER.........................................................121

                                   ARTICLE VII
                                     DEFAULT

      Section 7.1    MASTER SERVICER EVENTS OF DEFAULT..........................................................122

      Section 7.2    TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR...................................................123

      Section 7.3    NOTIFICATION TO CERTIFICATEHOLDERS.........................................................124

      Section 7.4    WAIVER OF MASTER SERVICER EVENTS OF DEFAULT................................................125

                                  ARTICLE VIII
             CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

      Section 8.1    DUTIES OF TRUSTEE AND SECURITIES ADMINISTRATOR.............................................126

      Section 8.2    CERTAIN MATTERS AFFECTING TRUSTEE AND SECURITIES ADMINISTRATOR.............................127

      Section 8.3    TRUSTEE AND SECURITIES ADMINISTRATOR NOT LIABLE FOR CERTIFICATES OR LOANS..................129

      Section 8.4    TRUSTEE, MASTER SERVICER AND SECURITIES ADMINISTRATOR MAY OWN CERTIFICATES.................129

      Section 8.5    FEES AND EXPENSES OF TRUSTEE AND SECURITIES ADMINISTRATOR..................................129

      Section 8.6    ELIGIBILITY REQUIREMENTS FOR TRUSTEE AND SECURITIES ADMINISTRATOR..........................130

      Section 8.7    RESIGNATION AND REMOVAL OF TRUSTEE AND SECURITIES ADMINISTRATOR............................130

      Section 8.8    SUCCESSOR TRUSTEE OR SECURITIES ADMINISTRATOR..............................................131

      Section 8.9    MERGER OR CONSOLIDATION OF TRUSTEE OR SECURITIES ADMINISTRATOR.............................132

      Section 8.10   APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE..............................................132

      Section 8.11   APPOINTMENT OF OFFICE OR AGENCY............................................................133

      Section 8.12   REPRESENTATIONS AND WARRANTIES OF THE TRUSTEE..............................................133

                                   ARTICLE IX
                                   TERMINATION

      Section 9.1    TERMINATION UPON PURCHASE OR LIQUIDATION OF LOANS..........................................135

      Section 9.2    ADDITIONAL TERMINATION REQUIREMENTS........................................................137

                                    ARTICLE X
                                REMIC PROVISIONS
</TABLE>

                                      -iii-

<PAGE>

<TABLE>
<CAPTION>

<S>                  <C>
      Section 10.1   REMIC ADMINISTRATION.......................................................................139

      Section 10.2   PROHIBITED TRANSACTIONS AND ACTIVITIES.....................................................141

      Section 10.3   INDEMNIFICATION............................................................................142

                                   ARTICLE XI
                            MISCELLANEOUS PROVISIONS

      Section 11.1   AMENDMENT..................................................................................143

      Section 11.2   RECORDATION OF AGREEMENT; COUNTERPARTS.....................................................144

      Section 11.3   LIMITATION ON RIGHTS OF CERTIFICATEHOLDERS.................................................144

      Section 11.4   GOVERNING LAW..............................................................................145

      Section 11.5   NOTICES....................................................................................145

      Section 11.6   SEVERABILITY OF PROVISIONS.................................................................146

      Section 11.7   NOTICE TO RATING AGENCIES..................................................................146

      Section 11.8   ARTICLE AND SECTION REFERENCES.............................................................147

      Section 11.9   GRANT OF SECURITY INTEREST.................................................................147

                                   ARTICLE XII
                         CERTAIN MATTERS REGARDING AMBAC

      Section 12.1   RIGHTS OF AMBAC TO EXERCISE RIGHTS OF INSURED CERTIFICATEHOLDERS...........................148

      Section 12.2   CLAIMS UPON THE POLICY; INSURANCE ACCOUNT..................................................148

      Section 12.3   EFFECT  OF PAYMENTS BY THE INSURER; SUBROGATION............................................149

      Section 12.4   NOTICES AND INFORMATION TO AMBAC...........................................................149

      Section 12.5   TRUSTEE TO HOLD POLICY.....................................................................150

      Section 12.6   PAYMENT OF INSURANCE PREMIUM...............................................................150
</TABLE>

                                      -iv-

<PAGE>

<TABLE>
<CAPTION>

                                    EXHIBITS

<S>                  <C>   <C>
Exhibit A-1          -     Forms of Class A Certificates (other than the Class I-A-IO Certificates)
Exhibit A-2          -     Forms of Class I-A-IO Certificates
Exhibit A-3          -     Forms of Class M Certificates
Exhibit A-4          -     Forms of Class CE Certificates
Exhibit A-5          -     Forms of Class P Certificates
Exhibit A-6          -     Forms of Class R Certificates
Exhibit  B           -     [Reserved]
Exhibit C            -     Form of Transfer Affidavit
Exhibit D            -     Form of Transferor Certificate
Exhibit E            -     Form of Investment Letter (Non-Rule 144A)
Exhibit F            -     Form of Rule 144A Investment Letter
Exhibit G            -     Form of Benefit Plan Affidavit
Exhibit H                  Policy
Schedule One         -     Loan Schedule
Schedule Two         -     Prepayment Charge Schedule

</TABLE>

                                      -v-
<PAGE>

         This Pooling and Servicing Agreement, dated and effective as of April
1, 2004 (this "Agreement"), is executed by and among Deutsche Mortgage
Securities, Inc., as depositor (the "Depositor"), Wells Fargo Bank, N. A., as
master servicer (the "Master Servicer") and securities administrator (the
"Securities Administrator"), and HSBC Bank USA, as trustee (the "Trustee").
Capitalized terms used in this Agreement and not otherwise defined have the
meanings ascribed to such terms in Article I hereof.

                              PRELIMINARY STATEMENT

         The Depositor at the Closing Date is the owner of the Loans and the
other property being conveyed by it to the Trustee for inclusion in the Trust
Fund. On the Closing Date, the Depositor will acquire the Certificates from the
Trust Fund as consideration for its transfer to the Trust Fund of the Loans and
certain other assets, and will be the owner of the Certificates. The Depositor
has duly authorized the execution and delivery of this Agreement to provide for
the conveyance to the Trustee of the Loans and the issuance to the Depositor of
the Certificates representing in the aggregate the entire beneficial ownership
of the Trust Fund. All covenants and agreements made by the Depositor, the
Master Servicer, the Securities Administrator and the Trustee herein with
respect to the Loans and the other property constituting the Trust Fund are for
the benefit of the Holders from time to time of the Certificates. The Depositor,
the Master Servicer the Securities Administrator and the Trustee are entering
into this Agreement, and the Trustee is accepting the trust created hereby, for
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged.

         The Certificates issued hereunder, other than the Class CE, Class P and
Class R Certificates, have been offered for sale pursuant to a Prospectus, dated
January 28, 2004, and a Prospectus Supplement, dated April 22, 2004 of the
Depositor (together, the "Prospectus"). The Trust Fund created hereunder is
intended to be the "Trust" as described in the Prospectus and the Certificates
are intended to be the "Certificates" described therein.

                                     REMIC I
                                     -------

         As provided herein, the Trustee shall elect to treat the segregated
pool of assets consisting of the Group I Loans and other related assets (other
than the related Reserve Fund and the related Cap Contract) in the Trust Fund
subject to this Agreement as a REMIC for federal income tax purposes, and such
segregated pool of assets shall be designated as "REMIC I." Component R-1 of the
Class R Certificate shall represent the sole class of "residual interests" in
REMIC I for purposes of the REMIC Provisions under federal income tax law. The
following table irrevocably sets forth the designation, the Uncertificated REMIC
I 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 I Regular Interests. None
of the REMIC I Regular Interests will be certificated.

<TABLE>
<CAPTION>

                                     Initial
                                  Uncertificated        Uncertified REMIC 1        Assumed Final Maturity
         Designation            Principal Balance        Pass-Through Rate                 Date(1)
<S>       <C>                      <C>                      <C>                       <C>
            LTI-1                   $218,749,958.00         Variable(2)                March 25, 2034
          LTI-IO-1                    $6,250,000.00         Variable(2)                March 25, 2034
          LTI-IO-2                    $6,250,000.00         Variable(2)                March 25, 2034
          LTI-IO-3                    $6,250,000.00         Variable(2)                March 25, 2034

                                      -1-
<PAGE>

          LTI-IO-4                   $12,500,000.00         Variable(2)                March 25, 2034
            LTI-P                           $100.00         Variable(2)                March 25, 2034
         ---------------
</TABLE>

(1)      Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date in the month following the maturity
         date for the Group I Loan with the latest 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 I.

(2)      Calculated in accordance with the definition of "Uncertificated REMIC I
         Pass-Through Rate" herein.

                                    REMIC II
                                    --------

         As provided herein, the Trustee shall elect to treat the segregated
pool of assets consisting of the Group II Loans and other related assets (other
than the related Reserve Fund and the related Cap Contracts) in the Trust Fund
subject to this Agreement as a REMIC for federal income tax purposes, and such
segregated pool of assets shall be designated as "REMIC II." Component R-2 of
the Class R Certificate shall represent the sole class of "residual interests"
in REMIC II for purposes of the REMIC Provisions under federal income tax law.
The following table irrevocably sets forth the designation, the Uncertificated
REMIC II 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
II Regular Interests. None of the REMIC II Regular Interests will be
certificated.
<TABLE>
<CAPTION>

                                     Initial
                                  Uncertificated        Uncertified REMIC II       Assumed Final Maturity
         Designation            Principal Balance        Pass-Through Rate                 Date(1)
<S>       <C>                   <C>                         <C>                       <C>
           LTII-1                   $104,050,337.00         Variable(2)                March 25, 2034
           LTII-2                   $145,949,950.00         Variable(2)                March 25, 2034
           LTII-P                           $100.00         Variable(2)                March 25, 2034
         ---------------
</TABLE>

(1)      Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date in the month following the maturity
         date for the Group II Loan with the latest 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 II.

(2)      Calculated in accordance with the definition of "Uncertificated REMIC
         II Pass-Through Rate" herein.

                                    REMIC III

         As provided herein, the Trustee shall elect to treat the segregated
pool of assets consisting of the REMIC I Regular Interests and the REMIC II
Regular Interests as a REMIC for federal income tax purposes, and such
segregated pool of assets shall be designated as "REMIC III". Component R-3 of
the Class R Certificate shall represent the sole class of "residual interests"
in REMIC III for purposes of the REMIC Provisions under federal income tax law.
The following table irrevocably sets forth the designations, the Uncertificated
REMIC III 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
III Regular Interests. None of the REMIC III Regular Interests will be
certificated.

                                      -2-
<PAGE>

<TABLE>
<CAPTION>

                                 Uncertificated REMIC     Initial Uncertificated           Latest
           Designation          III Pass-Through Rate       Principal Balance         Possible Maturity(1)
           -----------------    ---------------------   --------------------------  -----------------------
<S>      <C>                       <C>                   <C>                          <C>
          LTIII-1AA                      (2)               $   244,999,958.84            March 25, 2034
          LTIII -1A1                     (2)               $       865,690.00            March 25, 2034
          LTIII -1A2                     (2)               $       127,790.00            March 25, 2034
          LTIII -1A3                     (2)               $       232,920.00            March 25, 2034
          LTIII -1A4                     (2)               $       166,850.00            March 25, 2034
          LTIII -1A5                     (2)               $       225,510.00            March 25, 2034
          LTIII -1A6                     (2)               $       250,000.00            March 25, 2034
          LTIII -1A7                     (2)               $       500,000.00            March 25, 2034
          LTIII -1M1                     (2)               $        60,000.00            March 25, 2034
          LTIII -1M2                     (2)               $        43,750.00            March 25, 2034
          LTIII -1M3                     (2)               $        18,750.00            March 25, 2034
          LTIII -ZZ                      (2)               $     2,508,739.16            March 25, 2034
         LTIII -IO-A                     (3)                       (4)                   March 25, 2034
         LTIII -IO-B                     (5)                       (6)                   March 25, 2034
           LTIII-1P                      (2)               $           100.00            March 25, 2034
          LTIII-2AA                      (2)               $   122,500,140.63            March 25, 2034
          LTIII-2AR1                     (2)               $       479,930.00            March 25, 2034
          LTIII-2AR2                     (2)               $       673,195.00            March 25, 2034
          LTIII-2MR1                     (2)               $        43,125.00            March 25, 2034
          LTIII-2MR2                     (2)               $        29,375.00            March 25, 2034
          LTIII-2MR3                     (2)               $        24,375.00            March 25, 2034
          LTIII-2ZZ                      (2)               $     1,250,002.87            March 25, 2034
         LTIII-2SUB1                     (2)               $           806.43            March 25, 2034
         LTIII-2GRP1                     (2)               $        10,405.04            March 25, 2034
         LTIII-2SUB2                     (2)               $         1,131.10            March 25, 2034
         LTIII-2GRP2                     (2)               $        14,595.00            March 25, 2034
          LTIII-2XX                      (2)               $   124,973,205.93            March 25, 2034
           LTIII-2P                      (2)               $           100.00            March 25, 2034
-------------------
</TABLE>

(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 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 "Uncertificated REMIC
         III Pass-Through Rate" herein. (3) REMIC III Regular Interest
         LTIII-IO-A will accrue interest at a rate of (i) for the first twelve
         Distribution Dates, 1.00% and (ii) thereafter, 0.00%.
(4)      REMIC III Regular Interest LTIII-IO-A will not have an Uncertificated
         Principal Balance, but will accrue interest on its Uncertificated
         Notional Amount, as defined herein.
(5)      REMIC III Regular Interest LTIII-IO-B will accrue interest at a rate of
         (i) for the first twenty-four Distribution Dates, 3.50% and (ii)
         thereafter, 0.00%.
(6)      REMIC III Regular Interest LTIII-IO-B will not have an Uncertificated
         Principal Balance, but will accrue interest on its Uncertificated
         Notional Amount, as defined herein.

                                    REMIC IV
                                    --------

         As provided herein, the Trustee shall 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 shall be
designated as "REMIC IV". Component R-4 of the Class R Certificate shall
represent 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 designations, the Pass-through Rate and initial Certificate
Principal Balance for each Class of Certificates which, together with the Class
R-4 Component, constitute the entire beneficial

                                      -3-
<PAGE>

interests in REMIC IV. Determined solely for purposes of satisfying Treasury
regulation section 1.860G-1(a)(4)(iii), the "latest possible maturity date" for
each Class of Certificates shall be the first Distribution Date that is two
years after the end of the remaining amortization schedule of the Loan in the
Mortgage Pool that has, as of the Closing Date, the longest remaining
amortization schedule, irrespective of its scheduled maturity:
<TABLE>
<CAPTION>

                                     Initial
                                   Certificate                                            Assumed Final
          Class Designation     Principal Balance          Pass-Through Rate            Maturity Date(1)
          -----------------     -----------------          -----------------            ----------------
<S>        <C>                   <C>                 <C>                                <C>
             Class I-A-1               $86,569,000    One Month LIBOR + 0.18% (2)        March 25, 2034
             Class I-A-2               $12,779,000             2.91% (2)                 March 25, 2034
             Class I-A-3               $23,292,000             3.59% (2)                 March 25, 2034
             Class I-A-4               $16,685,000             4.60% (2)                 March 25, 2034
             Class I-A-5               $22,551,000             5.36% (2)                 March 25, 2034
             Class I-A-6               $25,000,000             4.36% (2)                 March 25, 2034
             Class I-A-7               $50,000,000             3.75% (2)                 March 25, 2034
             Class I-A-IO                 Notional           4.50% (2) (3)               April 25, 2006
             Class I-M-1                $6,000,000             4.87% (2)                 March 25, 2034
             Class I-M-2                $4,375,000             5.32% (2)                 March 25, 2034
             Class I-M-3                $1,875,000             6.07% (2)                 March 25, 2034
              Class I-CE                  $873,958                (4)                    March 25, 2034
              Class I-P                       $100               N/A(6)                  March 25, 2034
            Class II-AR-1              $95,986,000    One Month LIBOR + 0.27% (2)         May 25, 2034
            Class II-AR-2             $134,639,000    One Month LIBOR + 0.39% (2)         May 25, 2034
            Class II-MR-1               $8,625,000    One Month LIBOR + 0.60% (2)         May 25, 2034
            Class II-MR-2               $5,875,000    One Month LIBOR + 1.25% (2)         May 25, 2034
            Class II-MR-3               $4,875,000    One Month LIBOR + 2.00% (2)         May 25, 2034
             Class II-CE                      $287                (5)                     May 25, 2034
              Class II-P                      $100               N/A(6)                   May 25, 2034
-------------------
</TABLE>

(1)      Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date in the month following the maturity
         date for the Loan in the related Loan Group with the latest maturity
         date has been designated as the "latest possible maturity date" for
         each related Class of Certificates.
(2)      Subject to a rate cap as described herein.
(3)      The Class I-A-IO Certificates will accrue interest at their
         Pass-Through Rate on the Notional Amount of the Class I-A-IO
         Certificates calculated in accordance with the definition of "Notional
         Amount" herein. The Pass-Through Rate on the Class I-A-IO Certificates
         will equal 4.50% per annum for the first 12 months following the
         Closing Date, 3.50% per annum for the next 12 months and 0.00% per
         annum for each month thereafter. The Class I-A-IO Certificates will not
         be entitled to distributions in respect of principal. For federal
         income tax purposes, the Class I-A-IO Certificates will not have a
         Notional Amount, but will be entitled to 100% of amounts distributed on
         REMIC III Regular Interest LTIII-IO-A and REMIC III Regular Interest
         LTIII-IO-B.
(4)      The Class I-CE Certificates will not accrue interest on their
         Certificate Principal Balance, but will accrue interest at their
         Pass-Through Rate on the Notional Amount of the Class I-CE Certificates
         outstanding from time to time which shall equal the aggregate of the
         Uncertificated Principal Balances of the REMIC III Group I Regular
         Interests (other than REMIC III Regular Interest LTIII-P, REMIC III
         Regular Interest LTIII-IO-A and REMIC III Regular Interest LTIII-IO-B).
(5)      The Class II-CE Certificates will not accrue interest on their
         Certificate Principal Balance, but will accrue interest at their
         Pass-Through Rate on the Notional Amount of the Class II-CE
         Certificates outstanding

                                      -4-
<PAGE>

         from time to time which shall equal the aggregate of the
         Uncertificated Principal Balances of the REMIC III Group II Regular
         Interests (other than REMIC III Regular Interest LTIII-P).

(6)      The Class P Certificates are not entitled to distributions in respect
         of interest.

                                      -5-
<PAGE>

                               W I T N E S S E T H
                               -------------------

         In consideration of the mutual agreements herein contained, the
Depositor, the Master Servicer, the Securities Administrator and the Trustee
agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

Section 1.1       DEFINITIONS.

         Whenever used herein, the following words and phrases, unless the
context otherwise requires, shall have the meanings specified in this Article:

         ACCEPTED MASTER SERVICING PRACTICES: With respect to any Loan, as
applicable, those customary mortgage servicing practices of prudent mortgage
servicing institutions that master service mortgage loans of the same type and
quality as such Loan in the jurisdiction where the related Mortgaged Property is
located, to the extent applicable to the Master Servicer (except in its capacity
as successor to a Servicer).

         ACCOUNT: The Distribution Accounts and any Protected Account as the
context may require.

         ADJUSTABLE RATE LOAN:  Each of the Group II Loans.

         ADJUSTMENT DATE: With respect to each Adjustable Rate Loan, the first
day of the month in which the Mortgage Interest Rate of an Adjustable Rate Loan
changes pursuant to the related Mortgage Note. The first Adjustment Date
following the Cut-Off Date as to each Adjustable Rate Loan is set forth in the
Loan Schedule.

         ADVANCE: Either (i) a Monthly Advance made by a Servicer as such term
is defined in and pursuant to the related Servicing Agreement or (ii) an advance
made by the Master Servicer pursuant to Section 4.7.

         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. The Trustee may obtain
and rely on an Officer's Certificate of any Servicer or the Depositor to
determine whether any Person is an Affiliate of such party.

         AGGREGATE CERTIFICATE PRINCIPAL BALANCE: At any given time, the sum of
the then current Certificate Principal Balances of all Classes of Certificates.

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

                                      -6-
<PAGE>

         AMBAC: Ambac Assurance Corporation, a Wisconsin-domiciled stock
insurance corporation or its successors in interest.

         ANNIVERSARY: Each anniversary of the Cut-Off Date.

         APPRAISED VALUE: The amount set forth in an appraisal made by or for
the mortgage originator in connection with its origination of each Loan.

         ASSIGNMENT: An assignment of the Mortgage, notice of transfer or
equivalent instrument, in recordable form, sufficient under the laws of the
jurisdiction where the related Mortgaged Property is located to reflect of
record the sale and assignment of the Loan to the Trustee, which assignment,
notice of transfer or equivalent instrument may, if permitted by law, be in the
form of one or more blanket assignments covering Mortgages secured by Mortgaged
Properties located in the same county.

         ASSIGNMENT AGREEMENTS: Shall mean (i) the Assignment, Assumption and
Recognition Agreement, dated as of April 30, 2004, among the Seller, the
Depositor and Greenpoint pursuant to which the Greenpoint Servicing Agreement
was assigned to the Depositor and (ii) the Assignment, Assumption and
Recognition Agreement, dated as of April 30, 2004, among the Seller, the
Depositor and M&T, pursuant to which the M&T Servicing Agreement was assigned to
the Depositor.

         AUTHORIZED DENOMINATION: With respect to the Class A Certificates and
the Class M Certificates, minimum initial Certificate Principal Balances of
$25,000 and integral multiples of $1.00 in excess thereof. With respect to the
Class P Certificates, minimum initial Certificate Principal Balances of $20 and
integral multiples thereof. With respect to the Class CE Certificates, minimum
initial Certificate Principal Balances of $10,000 and integral multiples of
$1.00 in excess thereof.

         AVAILABLE DISTRIBUTION AMOUNT: The Group I Available Distribution
Amount or the Group II Available Distribution Amount, as applicable.

         BANKRUPTCY LOSS: A loss on a Loan as reported by the related Servicer,
arising out of (i) a reduction in the scheduled Monthly Payment for such Loan by
a court of competent jurisdiction in a case under the United States Bankruptcy
Code, other than any such reduction that arises out of clause (ii) of this
definition of "Bankruptcy Loss," including, without limitation, any such
reduction that results in a permanent forgiveness of principal, or (ii) with
respect to any Loan, the positive difference, if any, resulting from the
outstanding Principal Balance on a Loan and the valuation, by a court of
competent jurisdiction in a case under such Bankruptcy Code, of the related
Mortgaged Property.

         BENEFICIAL HOLDER: A Person holding a beneficial interest in any
Book-Entry Certificate as or through a Depository Participant or an Indirect
Depository Participant or a Person holding a beneficial interest in any
Definitive Certificate.

         BOOK-ENTRY CERTIFICATES: The Class A Certificates and the Class M
Certificates beneficial ownership and transfers of which shall be made through
book entries as described in Section 5.1 and Section 5.3.

         BUSINESS DAY: Any day other than a Saturday, a Sunday, or a day on
which banking institutions in Maryland, Minnesota or New York are authorized or
obligated by law or executive order to be closed.

                                      -7-
<PAGE>

         CAP CONTRACTS: Any of the Class I-A-1 Cap Contract, Class II-AR-1 Cap
Contract, Class II-AR-2 Cap Contract, Class II-MR-1 Cap Contract, Class II-MR-2
Cap Contract and Class II-MR-3 Cap Contract.

         CAP PROVIDER: Swiss Re Financial Products Corporation, or any successor
thereto.

         CERTIFICATE: Any one of the Certificates issued pursuant to this
Agreement, executed and authenticated by or on behalf of the Securities
Administrator hereunder in substantially one of the forms set forth in Exhibits
A-1, A-2, A-3, A-4, A-5 and A-6 hereto.

         CERTIFICATE PRINCIPAL BALANCE: With respect to a Senior Certificate
(other than the Class I-A-IO Certificates, which have no Certificate Principal
Balance), Class M Certificate or Class P Certificate outstanding at any time,
the then maximum amount that the holder of such certificate is entitled to
receive as distributions allocable to principal from the cash flow on the
related Loans and the other assets in the Trust Fund. The Certificate Principal
Balance of a Senior Certificate, Class M Certificate or Class P Certificate as
of any date of determination is equal to the initial Certificate Principal
Balance of such Certificate plus, in the case of a Class M Certificate, any
Subsequent Recoveries added to the Certificate Principal Balance of such
certificate pursuant to Section 4.2 or 4.4, as applicable, reduced by the
aggregate of (i) all amounts allocable to principal previously distributed with
respect to that Certificate and (ii) with respect to the Class M Certificates,
any reductions in the Certificate Principal Balance of such certificate deemed
to have occurred in connection with allocations of Realized Losses, if any;
provided, however, that solely for purposes of determining Ambac's rights as
subrogee to the Holders of the Insured Certificates, the Certificate Principal
Balance of any Insured Certificate shall be deemed not to be reduced by any
principal amounts paid to the Holder thereof from Insurance Payments, unless
such amounts have been reimbursed to Ambac pursuant to Section 4.1(a)(iii)(B).
The Certificate Principal Balance of each Class CE Certificate as of any date of
determination is equal to the excess, if any, of (i) the then aggregate
Principal Balance of the related Loans over (ii) the then aggregate Certificate
Principal Balance of the related Senior Certificates, the related Class M
Certificates and the related Class P Certificates. The initial Certificate
Principal Balance of each Class of Certificates is set forth in the Preliminary
Statement hereto.

         CERTIFICATE REGISTER: The register maintained pursuant to Section 5.3.

         CERTIFICATEHOLDER OR HOLDER: The person in whose name a Certificate is
registered in the Certificate Register, except that solely for the purposes of
giving any consent pursuant to this Agreement, any Certificate registered in the
name of the Depositor, the Master Servicer, the Securities Administrator, the
Trustee or any Affiliate thereof shall be deemed not to be outstanding and the
Percentage Interest evidenced thereby shall not be taken into account in
determining whether the requisite percentage of Percentage Interests necessary
to effect any such consent has been obtained. The Trustee or the Securities
Administrator may conclusively rely upon a certificate of the Depositor, the
Seller or the Master Servicer in determining whether a Certificate is held by an
Affiliate thereof. All references herein to "Holders" or

                                      -8-
<PAGE>

"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 or the Securities Administrator 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 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 Depository Participant.

         CLASS: All Certificates having the same priority and rights to payments
from the Available Distribution Amount, designated as a separate Class, as set
forth in the forms of Certificates attached hereto as Exhibits A-1, A-2, A-3,
A-4, A-5 and A-6, as applicable.

         CLASS A CERTIFICATES: The Class I-A-1, I-A-2, I-A-3, I-A-4, I-A-5,
I-A-6, I-A-7, I-A-IO II-AR-1, and II-AR-2 Certificates, collectively, and
designated as such on the face thereof in substantially the forms attached
hereto as Exhibit A-1 or A-2, as applicable.

         CLASS CE CERTIFICATES: The Class I-CE Certificates and Class II-CE
Certificates, collectively, and designated as such on the face thereof in
substantially the form attached hereto as Exhibit A-4.

         CLASS I-A-1 CAP CONTRACT: The cap contract between the Trustee and the
Cap Provider, for the benefit of the Holders of the Class I-A-1 Certificates.

         CLASS I-A-6 LOCKOUT DISTRIBUTION AMOUNT: For any Distribution Date
shall be the Class I-A-6 Lockout Distribution Percentage for that Distribution
Date multiplied by the product of (x) a fraction, the numerator of which is the
Certificate Principal Balance of the Class I-A-6 Certificates and the
denominator of which is the aggregate Certificate Principal Balance of all of
the Group I Senior Certificates, in each case immediately prior to such
Distribution Date and (y) the Group I Senior Principal Distribution Amount for
such Distribution Date.

         CLASS I-A-6 LOCKOUT DISTRIBUTION PERCENTAGE: For each Distribution
Date, the applicable percentage set forth below:

  ------------------------------------------------------------------------------
                                                        CLASS I-A-6 LOCKOUT
                                                        -------------------
                      DISTRIBUTION DATES               DISTRIBUTION PERCENTAGE
                      ------------------               -----------------------
  ------------------------------------------------------------------------------
  May 2004 through and including April 2007                    0%
  ------------------------------------------------------------------------------
  May 2007 through and including April 2009                   45%
  ------------------------------------------------------------------------------
  May 2009 through and including April 2010                   80%
  ------------------------------------------------------------------------------
  May 2010 through and including April 2011                  100%
  ------------------------------------------------------------------------------
  May 2011 and thereafter                                    300%
  ------------------------------------------------------------------------------

                                      -9-
<PAGE>

         CLASS I-M-1 PRINCIPAL DISTRIBUTION AMOUNT: With respect to any
Distribution Date (i) prior to the Group I Stepdown Date or on or after the
Group I Stepdown Date if a Group I Trigger Event is in effect for that
Distribution Date, the remaining Group I Principal Distribution Amount for that
Distribution Date after distribution of the Group I Senior Principal
Distribution Amount or (ii) on or after the Group I Stepdown Date if a Group I
Trigger Event is not in effect for that Distribution Date, the lesser of:

          o    the remaining Group I Principal Distribution Amount for that
               Distribution Date after distribution of the Group I Senior
               Principal Distribution Amount; and

          o    the excess of (A) the aggregate Certificate Principal Balance of
               the Class I-M-1 Certificates immediately prior to that
               Distribution Date over (B) the positive difference between (i)
               the aggregate Principal Balance of the Group I Loans as of the
               last day of the related Due Period (after reduction for Realized
               Losses on the Group I Loans incurred during the related
               Prepayment Period) and (ii) the sum of (x) the aggregate
               Certificate Principal Balance of the Group I Senior Certificates
               (after taking into account the payment of the Group I Senior
               Principal Distribution Amount for such Distribution Date) and (y)
               the product of (a) the aggregate Principal Balance of the Group I
               Loans as of the last day of the related Due Period (after
               reduction for Realized Losses on the Group I Loans incurred
               during the related Prepayment Period) and (b) the sum of 5.00%
               and the related Required Overcollateralization Percentage.

         CLASS I-M-2 PRINCIPAL DISTRIBUTION AMOUNT: With respect to any
Distribution Date (i) prior to the Group I Stepdown Date or on or after the
Group I Stepdown Date if a Group I Trigger Event is in effect for that
Distribution Date, the remaining Group I Principal Distribution Amount for that
Distribution Date after distribution of the Group I Senior Principal
Distribution Amount and the Class I-M-1 Principal Distribution Amount or (ii) on
or after the Group I Stepdown Date if a Group I Trigger Event is not in effect
for that Distribution Date, the lesser of:

          o    the remaining Group I Principal Distribution Amount for that
               Distribution Date after distribution of the Group I Senior
               Principal Distribution Amount and the Class I-M-1 Principal
               Distribution Amount; and

          o    the excess of (A) the aggregate Certificate Principal Balance of
               the Class I-M-2 Certificates immediately prior to that
               Distribution Date over (B) the positive difference between (i)
               the aggregate Principal Balance of the Group I Loans as of the
               last day of the related Due Period (after reduction for Realized
               Losses on the Group I Loans incurred during the related
               Prepayment Period) and (ii) the sum of (x) the aggregate
               Certificate Principal Balance of the Group I Senior Certificates
               and the Class I-M-1 Certificates (after taking into account the
               payment of the Group I Senior Principal Distribution Amount and
               the Class I-M-1 Principal Distribution Amount for such
               Distribution Date) and (y) the product of (a) the aggregate
               Principal Balance of the Group I Loans as of the last day of the
               related Due Period (after reduction for Realized Losses on the
               Group I Loans incurred during the related Prepayment Period) and
               (b) the sum of 1.50% and the related Required
               Overcollateralization Percentage.

                                      -10-
<PAGE>

         CLASS I-M-3 PRINCIPAL DISTRIBUTION AMOUNT: With respect to any
Distribution Date (i) prior to the Group I Stepdown Date or on or after the
Group I Stepdown Date if a Group I Trigger Event is in effect for that
Distribution Date, the remaining Group I Principal Distribution Amount for that
Distribution Date after distribution of the Group I Senior Principal
Distribution Amount, the Class I-M-1 Principal Distribution Amount and the Class
I-M-2 Principal Distribution Amount or (ii) on or after the Group I Stepdown
Date if a Group I Trigger Event is not in effect for that Distribution Date, the
lesser of:

          o    the remaining Group I Principal Distribution Amount for that
               Distribution Date after distribution of the Group I Senior
               Principal Distribution Amount, the Class I-M-1 Principal
               Distribution Amount and the Class I-M-2 Principal Distribution
               Amount; and

          o    the excess of (A) the aggregate Certificate Principal Balance of
               the Class I-M-3 Certificates immediately prior to that
               Distribution Date over (B) the positive difference between (i)
               the aggregate Principal Balance of the Group I Loans as of the
               last day of the related Due Period (after reduction for Realized
               Losses on the Group I Loans incurred during the related
               Prepayment Period) and (ii) the sum of (x) the aggregate
               Certificate Principal Balance of the Group I Senior, Class I-M-1
               and Class I-M-2 Certificates (after taking into account the
               payment of the Group I Senior Principal Distribution Amount, the
               Class I-M-1 Principal Distribution Amount and the Class I-M-2
               Principal Distribution Amount for such Distribution Date) and (y)
               the product of (a) the aggregate Principal Balance of the Group I
               Loans as of the last day of the related Due Period (after
               reduction for Realized Losses on the Group I Loans incurred
               during the related Prepayment Period) and (b) the related
               Required Overcollateralization Percentage.

         CLASS II-AR-1 ALLOCATION PERCENTAGE: For any Distribution Date, the
percentage equivalent of a fraction, the numerator of which is (x) the Group II
Principal Remittance Amount attributable to the Group II-1 Loans for such
Distribution Date and the denominator of which is (y) the Group II Principal
Remittance Amount for such Distribution Date.

         CLASS II-AR-1 CAP CONTRACT: Shall mean the cap agreement between the
Trustee and the Cap Provider, for the benefit of the Holders of the Class
II-AR-1 Certificates.

         CLASS II-AR-1 PRINCIPAL DISTRIBUTION AMOUNT: With respect to any
Distribution Date (i) prior to the Group II Stepdown Date, or on or after the
Group II Stepdown Date if a Group II Trigger Event is in effect for that
Distribution Date, the Group II-1 Principal Distribution Amount, or (ii) on or
after the Group II Stepdown Date if a Group II Trigger Event is not in effect
for that Distribution Date, the lesser of:

          o    the Group II-1 Principal Distribution Amount for that
               Distribution Date; and

          o    the product of the Class II-AR-1 Allocation Percentage and the
               excess (if any) of (A) the sum of the Certificate Principal
               Balances of the Class II-AR-1 Certificates and Class II-AR-2
               Certificates immediately prior to such Distribution Date over (B)
               the positive difference between (i) the aggregate Principal
               Balance of the

                                      -11-
<PAGE>

               Group II Loans as of the last day of the related Due Period
               (after reduction for Realized Losses on the Group II Loans
               incurred during the related Prepayment Period) and (ii) the
               product of (x) aggregate Principal Balance of the Group II Loans
               as of the last day of the related Due Period (after reduction for
               Realized Losses on the Group II Loans incurred during the related
               Prepayment Period) and (y) the sum of (A) 15.50% and (B) the
               related Required Overcollateralization Percentage.

         CLASS II-AR-2 CAP CONTRACT: The cap agreement between the Trustee and
the Cap Provider, for the benefit of the Holders of the Class II-AR-2
Certificates.

         CLASS II-AR-2 ALLOCATION PERCENTAGE: For any Distribution Date, the
percentage equivalent of a fraction, the numerator of which is (x) the Group II
Principal Remittance Amount attributable to the Group II-2 Loans for such
Distribution Date and the denominator of which is (y) the Group II Principal
Remittance Amount for such Distribution Date.

         CLASS II-AR-2 PRINCIPAL DISTRIBUTION AMOUNT: With respect to any
Distribution Date (i) prior to the Group II Stepdown Date, or on or after the
Group II Stepdown Date if a Group II Trigger Event is in effect for that
Distribution Date, the Group II-2 Principal Distribution Amount, or (ii) on or
after the Group II Stepdown Date if a Group II-2 Trigger Event is not in effect
for that Distribution Date, the lesser of:

          o    the Group II-2 Principal Distribution Amount for that
               Distribution Date; and

          o    the product of the Class II-AR-2 Allocation Percentage and the
               excess (if any) of (A) the sum of the Certificate Principal
               Balances of the Class II-AR-1 Certificates and Class II-AR
               Certificates immediately prior to such Distribution Date over (B)
               the positive difference between (i) the aggregate Principal
               Balance of the Group II Loans as of the last day of the related
               Due Period (after reduction for Realized Losses on the Group II
               Loans incurred during the related Prepayment Period) and (ii) the
               product of (x) aggregate Principal Balance of the Group II Loans
               as of the last day of the related Due Period (after reduction for
               Realized Losses on the Group II Loans incurred during the related
               Prepayment Period) and (y) the sum of (A) 15.50% and (B) the
               related Required Overcollateralization Percentage.

         CLASS II-MR-1 CAP CONTRACT: Shall mean the cap agreement between the
Trustee and the Cap Provider, for the benefit of the Holders of the Class
II-MR-1 Certificates.

         CLASS II-MR-1 PRINCIPAL DISTRIBUTION AMOUNT With respect to any
Distribution Date (i) prior to the Group II Stepdown Date, or on or after the
Group II Stepdown Date if a Group II Trigger Event is in effect for that
Distribution Date, the remaining Group II Principal Distribution Amount for that
Distribution Date after distribution of the Group II Senior Principal
Distribution Amount or (ii) on or after the Group II Stepdown Date if a Group II
Trigger Event is not in effect for that Distribution Date, the lesser of:

          o    the remaining Group II Principal Distribution Amount for that
               Distribution Date after distribution of the Group II Senior
               Principal Distribution Amount; and

                                      -12-
<PAGE>

          o    the excess of (A) the aggregate Certificate Principal Balance of
               the Class II-MR-1 Certificates immediately prior to that
               Distribution Date over (B) the positive difference between (i)
               the aggregate Principal Balance of the Group II Loans as of the
               last day of the related Due Period (after reduction for Realized
               Losses on the Group II Loans incurred during the related
               Prepayment Period) and (ii) the sum of (x) the aggregate
               Certificate Principal Balance of the Group II Senior Certificates
               (after taking into account the payment of the Group II Senior
               Principal Distribution Amount for such Distribution Date) and (y)
               the product of (a) the aggregate Principal Balance of the Group
               II Loans as of the last day of the related Due Period (after
               reduction for Realized Losses on the Group II Loans incurred
               during the related Prepayment Period) and (b) the sum of 8.60%
               and the related Required Overcollateralization Percentage.

         CLASS II-MR-2 CAP CONTRACT: The cap agreement between the Trustee and
the Cap Provider, for the benefit of the Holders of the Class II-MR-2
Certificates.

         CLASS II-MR-2 PRINCIPAL DISTRIBUTION AMOUNT: With respect to any
Distribution Date (i) prior to the Group II Stepdown Date, or on or after the
Group II Stepdown Date if a Group II Trigger Event is in effect for that
Distribution Date, the remaining Group II Principal Distribution Amount for that
Distribution Date after distribution of the Group II Senior Principal
Distribution Amount and the Class II-MR-1 Principal Distribution Amount or (ii)
on or after the Group II Stepdown Date if a Group II Trigger Event is not in
effect for that Distribution Date, the lesser of:

          o    the remaining Group II Principal Distribution Amount for that
               Distribution Date after distribution of the Group II Senior
               Principal Distribution Amount and the Class II-MR-1 Principal
               Distribution Amount; and

          o    the excess of (A) the aggregate Certificate Principal Balance of
               the Class II-MR-2 Certificates immediately prior to that
               Distribution Date over (B) the positive difference between (i)
               the aggregate Principal Balance of the Group II Loans as of the
               last day of the related Due Period (after reduction for Realized
               Losses on the Group II Loans incurred during the related
               Prepayment Period) and (ii) the sum of (x) the aggregate
               Certificate Principal Balance of the Group II Senior Certificates
               and the Class II-MR-1 Certificates (after taking into account the
               payment of the Group II Senior Principal Distribution Amount and
               the Class II-MR-1 Principal Distribution Amount for such
               Distribution Date) and (y) the product of (a) the aggregate
               Principal Balance of the Group II Loans as of the last day of the
               related Due Period (after reduction for Realized Losses on the
               Group II Loans incurred during the related Prepayment Period) and
               (b) the sum of 3.90% and the related Required
               Overcollateralization Percentage.

         CLASS II-MR-3 CAP CONTRACT: The cap agreement between the Trustee and
the Cap Provider, for the benefit of the Holders of the Class II-MR-3
Certificates.

         CLASS II-MR-3 PRINCIPAL DISTRIBUTION AMOUNT: With respect to any
Distribution Date (i) prior to the Group II Stepdown Date, or on or after the
Group II Stepdown Date if a Group II

                                      -13-
<PAGE>

Trigger Event is in effect for that Distribution Date, the remaining Group II
Principal Distribution Amount for that Distribution Date after distribution of
the Group II Senior Principal Distribution Amount, the Class II-MR-1 Principal
Distribution Amount and the Class II-MR-2 Principal Distribution Amount or (ii)
on or after the Group II Stepdown Date if a Group II Trigger Event is not in
effect for that Distribution Date, the lesser of:

          o    the remaining Group II Principal Distribution Amount for that
               Distribution Date after distribution of the Group II Senior
               Principal Distribution Amount, the Class II-MR-1 Principal
               Distribution Amount and the Class II-MR-2 Principal Distribution
               Amount; and

          o    the excess of (A) the aggregate Certificate Principal Balance of
               the Class II-MR-3 Certificates immediately prior to that
               Distribution Date over (B) the positive difference between (i)
               the aggregate principal balance of the Group II Loans as of the
               last day of the related Due Period (after reduction for Realized
               Losses on the Group II Loans incurred during the related
               Prepayment Period) and (ii) the sum of (x) the aggregate
               Certificate Principal Balance of the Group II Senior, Class
               II-MR-1 and Class II-MR-2 Certificates (after taking into account
               the payment of the Group II Senior Principal Distribution Amount,
               the Class II-MR-1 Principal Distribution Amount and the Class
               II-MR-2 Principal Distribution Amount for such Distribution Date)
               and (y) the product of (a) the aggregate principal balance of the
               Group II Loans as of the last day of the related Due Period
               (after reduction for Realized Losses on the Group II Loans
               incurred during the related Prepayment Period) and (b) the
               related Required Overcollateralization Percentage.

         CLASS M CERTIFICATES: The Class I-M-1, I-M-2, I-M-3, II-MR-1, II-MR-2
and II-MR-3 Certificates, collectively, and designated as such on the face
thereof in substantially the form attached hereto as Exhibit A-3.

         CLASS P CERTIFICATES: The Class I-P Certificates and the Class II-P
Certificates, collectively, and designated as such on the face thereof in
substantially the form attached hereto as Exhibit A-5.

         CLASS R CERTIFICATE: The Certificate designated as "Class R" on the
face thereof in substantially the form attached hereto as Exhibit A-6, which has
been designated as the sole class of "residual interests" in REMIC I, REMIC II,
REMIC III and REMIC IV, respectively, pursuant to Section 2.4.

         CLASS R CERTIFICATEHOLDER: The registered Holder of the Class R
Certificate.

         CLEANUP CALL: As defined in Section 9.1.

         CLEARING AGENCY: An organization registered as a "clearing agency"
pursuant to Section 17A of the Securities and Exchange Act of 1934, as amended,
which initially shall be the Depository.

         CLOSING DATE: April 30, 2004.

                                      -14-
<PAGE>

         CODE: The Internal Revenue Code of 1986, as amended.

         COMPENSATING INTEREST: For any Distribution Date, (i) with respect to
each Servicer, an amount equal to the lesser of (a) the aggregate Prepayment
Interest Shortfalls and Curtailment Shortfalls for the Group I Loans or Group II
Loans, as applicable, for such Distribution Date and (b) the Servicing Fee
payable to such Servicer, for such Distribution Date and (ii) with respect to
the Master Servicer, the amount described in Section 3.20 for such Distribution
Date.

         COMPONENT R-1: The uncertificated residual interest in REMIC I.

         COMPONENT R-2: The uncertificated residual interest in REMIC II.

         COMPONENT R-3: The uncertificated residual interest in REMIC III.

         COMPONENT R-4: The uncertificated residual interest in REMIC IV.

         CORPORATE TRUST OFFICE: The principal corporate trust office of the
Trustee or the Securities Administrator, as the case may be, at which at any
particular time its corporate trust business in connection with this Agreement
shall be administered, which office at the date of the execution of this
instrument is located at (i) with respect to the Trustee, HSBC Bank USA, 452
Fifth Avenue, New York, New York 10018, or at such other address as the Trustee
may designate from time to time by notice to the Certificateholders, the
Depositor, the Master Servicer and the Securities Administrator, or (ii) with
respect to the Securities Administrator, (A) for Certificate transfer and
surrender purposes, Wells Fargo Bank, N.A., Sixth Street and Marquette Avenue,
Minneapolis, Minnesota 55479, Attention: DMSI 2004-3 and (B) for all other
purposes, Wells Fargo Bank, N.A., 9062 Old Annapolis Road, Columbia, Maryland
21045, Attention: DMSI 2004-3, or at such other address as the Securities
Administrator may designate from time to time by notice to the
Certificateholders, the Depositor, the Master Servicer and the Trustee.

         CORRESPONDING CERTIFICATE: With respect to:

          (i)  REMIC III Regular Interest LTIII-1A1, the Class I-A-1
               Certificates,

          (ii) REMIC III Regular Interest LTIII-1A2, the Class I-A-2
               Certificates,

          (iii) REMIC III Regular Interest LTIII-1A3, the Class I-A-3
               Certificates,

          (iv) REMIC III Regular Interest LTIII-1A4, the Class I-A-4
               Certificates,

          (v)  REMIC III Regular Interest LTIII-1A5, the Class I-A-5
               Certificates,

          (vi) REMIC III Regular Interest LTIII-1A6, the Class I-A-6
               Certificates,

          (vii) REMIC III Regular Interest LTIII-1A7, the Class I-A-7
               Certificates,

          (viii) REMIC III Regular Interest LTIII-1M1, the Class I-M-1
               Certificates,

                                      -15-
<PAGE>

          (ix) REMIC III Regular Interest LTIII-1M2, the Class I-M-2
               Certificates,

          (x)  REMIC III Regular Interest LTIII-1M3, the Class I-M-3
               Certificates,

          (xi) REMIC III Regular Interest LTIII-1P, the Class I-P Certificates,

          (xii) REMIC III Regular Interest LTIII-2AR1, the Class II-AR-1
                Certificates,

          (xiii) REMIC III Regular Interest LTIII-2AR2, the Class II-AR-2
                 Certificates,

          (xiv) REMIC III Regular Interest LTIII-2MR1, the Class II-MR-1
                Certificates,

          (xv) REMIC III Regular Interest LTIII-2MR2, the Class II-MR-2
               Certificates,

          (xvi) REMIC III Regular Interest LTIII-2MR3, the Class II-MR-3
                Certificates, and

          (xvii) REMIC III Regular Interest LTIII-2P, the Class II-P
                Certificates.

         CREDIT RISK MANAGEMENT AGREEMENT OR CREDIT RISK MANAGEMENT AGREEMENTS:
Each agreement between the Credit Risk Manager and a Servicer or the Master
Servicer, regarding the loss mitigation and advisory services to be provided by
the Credit Risk Manager.

         CREDIT RISK MANAGEMENT FEE: The amount payable to the Credit Risk
Manager on each Distribution Date as compensation for all services rendered by
it in the exercise and performance of any and all powers and duties of the
Credit Risk Manager under any Credit Risk Management Agreement, which amount
shall equal one twelfth of the product of (i) the Credit Risk Management Fee
Rate multiplied by (ii) the Scheduled Principal Balance of the Loans and any
related REO Properties as of the first day of the related Due Period.

         CREDIT RISK MANAGEMENT FEE RATE: 0.01% per annum.

         CREDIT RISK MANAGER:  The Murrayhill Company, a Colorado corporation,
and its successors and assigns.

         CURTAILMENT: Any voluntary payment of principal on a Loan, made by or
on behalf of the related Mortgagor, other than a Monthly Payment, a Prepaid
Monthly Payment or a Payoff, which is applied to reduce the outstanding
Principal Balance of the Loan.

         CURTAILMENT SHORTFALL: With respect to any Distribution Date and any
Curtailment received during the related Prepayment Period, an amount equal to
one month's interest on such Curtailment at the applicable Mortgage Interest
Rate on such Loan, net of the related Servicing Fee Rate.

         CUSTODIAL AGREEMENT: The Custodial Agreement dated as of April 1, 2004,
among the Trustee, Wells Fargo as Custodian, M&T and Greenpoint as such
agreement may be amended or supplemented from time to time, or any other
custodial agreement entered into after the date hereof with respect to any Loan
subject to this Agreement.

                                      -16-
<PAGE>

         CUSTODIAN: Either Wells Fargo or any other custodian appointed under
any custodial agreement entered into after the date of this Agreement.

         CUT-OFF DATE: April 1, 2004; except that with respect to each
Substitute Loan, the Cut-Off Date shall be the date of substitution.

         DEFINITIVE CERTIFICATES: As defined in Section 5.3.

         DELETED LOAN: A Loan replaced or to be replaced by a Substitute Loan.

         DELINQUENCY PERCENTAGE: With respect to any Loan Group, as of the last
day of the related Due Period, the percentage equivalent of a fraction, the
numerator of which is the Principal Balance of all related Loans that, as of the
last day of the previous calendar month, are 60 or more days delinquent, are in
foreclosure, have been converted to REO Properties or have been discharged by
reason of bankruptcy, and the denominator of which is the aggregate Principal
Balance of the related Loans and REO Properties as of the last day of the
previous calendar month.

         DEPOSITOR: Deutsche 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.

         DEPOSITORY AGREEMENT: The Letter of Representations, dated April 29,
2004 by and among the Depository, the Depositor and the Trustee.

         DEPOSITORY PARTICIPANT: A broker, dealer, bank, other financial
institution or other Person for whom the Depository effects book-entry transfers
and pledges of securities deposited with the Depository.

         DETERMINATION DATE: With respect to each Servicer, the day of the month
set forth as the Determination Date in the related Servicing Agreement.

         DISQUALIFIED ORGANIZATION: A "disqualified organization" as defined in
Section 860E(e)(5) of the Code, and, for purposes of Article V herein, any
Person which is not a Permitted Transferee; provided, that a Disqualified
Organization does not include any Pass-Through Entity which owns or holds a
Class R Certificate and if which a Disqualified Organization, directly or
indirectly, may be a stockholder, partner or beneficiary.

         DISTRIBUTION ACCOUNT: Each trust account or accounts related to the
Group I Loans and each trust account or accounts related to the Group II Loans,
in each case created and maintained by the Securities Administrator pursuant to
Section 3.23 for the benefit of the related Certificateholders and designated
"Wells Fargo Bank, N.A., as Securities Administrator, in trust for registered
holders of Deutsche Mortgage Securities, Inc. Mortgage Loan Trust, Series
2004

                                      -17-
<PAGE>

-3, Group I Certificates" and "Wells Fargo Bank, N.A., as Securities
Administrator, in trust for registered holders of Deutsche Mortgage Securities,
Inc. Mortgage Loan Trust, Series 2004-3, Group II Certificates". Funds in each
Distribution Account shall be held in trust for the related Certificateholders
for the uses and purposes set forth in this Agreement. Each Distribution Account
must be an Eligible Account.

         DISTRIBUTION ACCOUNT DEPOSIT DATE: The Business Day prior to such
Distribution Date.

         DISTRIBUTION DATE: The 25th day (or, if such 25th day is not a Business
Day, the Business Day immediately succeeding such 25th day) of each month, with
the first such date being May 25, 2004.

         DUE DATE: The first day of each calendar month, which is the day on
which the Monthly Payment for each Loan is due, exclusive of any days of grace.
The "related Due Date" for any Distribution Date is the Due Date immediately
preceding such Distribution Date.

         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 first day of the month in
which such Distribution Date occurs.

         ELIGIBLE ACCOUNT: Any account or accounts held and established by the
Securities Administrator in trust for the Certificateholders at any Eligible
Institution.

         ELIGIBLE INSTITUTION: An institution having (i) the highest short-term
debt rating, and one of the two highest long-term debt ratings of each Rating
Agency, (ii) with respect to the Distribution Accounts, an unsecured long-term
debt rating of at least one of the two highest unsecured long-term debt ratings
of each Rating Agency, or (iii) the approval of each Rating Agency.

         ELIGIBLE INVESTMENTS: Any one or more of the following obligations or
securities payable on demand or having a scheduled maturity on or before the
Business Day preceding the following Distribution Date (or, with respect to a
Distribution Account maintained with the Securities Administrator, having a
scheduled maturity on or before the following Distribution Date; provided that,
such Eligible Investments shall be managed by, or an obligation of, the
institution that maintains a Distribution Account if such Eligible Investments
mature on the Distribution Date), regardless of whether any such obligation is
issued by the Depositor, the applicable Servicer, the Trustee, the Master
Servicer, the Securities Administrator or any of their respective Affiliates and
having at the time of purchase, or at such other time as may be specified, the
required ratings, if any, provided for in this definition:

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

                  (b) direct obligations of, or guaranteed as to timely payment
of principal and interest by, Freddie Mac, Fannie Mae or the Federal Farm Credit
System, provided, that any such obligation, at the time of purchase or
contractual commitment providing for the purchase thereof,

                                      -18-
<PAGE>

is qualified by each Rating Agency as an investment of funds backing securities
rated "AAA" in the case of S&P and Moody's (the initial rating of the Class A
Certificates);

                  (c) demand and time deposits in or certificates of deposit of,
or bankers' acceptances issued by, any bank or trust company, savings and loan
association or savings bank, provided, that the short-term deposit ratings
and/or long-term unsecured debt obligations of such depository institution or
trust company (or in the case of the principal depository institutions in a
holding company system, the commercial paper or long-term unsecured debt
obligations of such holding company) have, in the case of commercial paper, the
highest rating available for such securities by each Rating Agency and, in the
case of long-term unsecured debt obligations, one of the two highest ratings
available for such securities by each Rating Agency, or in each case such lower
rating as will not result in the downgrading or withdrawal of the rating or
ratings then assigned to any Class of Certificates by any Rating Agency but in
no event less than the initial rating of the Senior Certificates;

                  (d) general obligations of or obligations guaranteed by any
state of the United States or the District of Columbia receiving one of the two
highest long-term debt ratings available for such securities by each Rating
Agency, or such lower rating as will not result in the downgrading or withdrawal
of the rating or ratings then assigned to any Class of Certificates by any
Rating Agency;

                  (e) commercial or finance company paper (including both
non-interest-bearing discount obligations and interest-bearing obligations
payable on demand or on a specified date not more than one year after the date
of issuance thereof) that is rated by each Rating Agency in its highest
short-term unsecured rating category at the time of such investment or
contractual commitment providing for such investment, and is issued by a
corporation the outstanding senior long-term debt obligations of which are then
rated by each Rating Agency in one of its two highest long-term unsecured rating
categories, or such lower rating as will not result in the downgrading or
withdrawal of the rating or ratings then assigned to any Class of Certificates
by any Rating Agency but in no event less than the initial rating of the Senior
Certificates;

                  (f) guaranteed reinvestment agreements issued by any bank,
insurance company or other corporation rated in one of the two highest rating
levels available to such issuers by each Rating Agency at the time of such
investment, provided, that any such agreement must by its terms provide that it
is terminable by the purchaser without penalty in the event any such rating is
at any time lower than such level;

                  (g) repurchase obligations with respect to any security
described in clause (a) or (b) above entered into with a depository institution
or trust company (acting as principal) meeting the rating standards described in
(c) above;

                  (h) 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 rated by each Rating Agency in one of its two
highest long-term unsecured rating categories at the time of such investment or
contractual commitment providing for such investment; provided, however, that
securities issued by any such corporation will not be Eligible Investments to
the extent that investment therein would cause the outstanding principal amount
of securities issued

                                      -19-
<PAGE>

by such corporation that are then held as part of a Distribution Account to
exceed 20% of the aggregate principal amount of all Eligible Investments then
held in such Distribution Account;

                  (i) units of taxable money market funds (including those for
which the Trustee, the Securities Administrator, the Master Servicer or any
affiliate thereof receives compensation with respect to such investment) which
funds have been rated by each Rating Agency rating such fund in its highest
rating category or which have been designated in writing by each Rating Agency
as Eligible Investments with respect to this definition;

                  (j) if previously confirmed in writing to the Trustee and the
Securities Administrator, any other demand, money market or time deposit, or any
other obligation, security or investment, as may be acceptable to each Rating
Agency as a permitted investment of funds backing securities having ratings
equivalent to the initial rating of the Class A Certificates; and

                  (k) such other obligations as are acceptable as Eligible
Investments to each Rating Agency;

provided, however, that such instrument continues to qualify as a "cash flow
investment" pursuant to Code Section 860G(a)(6) and that no instrument or
security shall be an Eligible Investment if (i) such instrument or security
evidences a right to receive only interest payments or (ii) the right to receive
principal and interest payments derived from the underlying investment provides
a yield to maturity in excess of 120% of the yield to maturity at par of such
underlying investment.

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

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

         EXTRA PRINCIPAL DISTRIBUTION AMOUNT: With respect to any Distribution
Date and a Loan Group, the lesser of (i) the related Net Monthly Excess Cashflow
for such Distribution Date and (ii) the related Overcollateralization Increase
Amount for such Distribution Date.

         FANNIE MAE: Fannie Mae, formerly known as the Federal National Mortgage
Association, or any successor thereto.

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

         FINAL TERMINATOR: As defined in Section 9.2.

         FREDDIE MAC:  The Federal Home Loan Mortgage Corporation, or any
successor thereto.

         GREENPOINT: Greenpoint Mortgage Funding, Inc. or any successor thereto.

         GREENPOINT SERVICING AGREEMENT: Shall mean the Master Mortgage Loan
Purchase and Servicing Agreement, dated as of February 1, 2004, between the
Seller and Greenpoint (as modified pursuant to the related Assignment
Agreement).

                                      -20-
<PAGE>

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

         GROUP I AVAILABLE DISTRIBUTION AMOUNT: With respect to a Distribution
Date, the sum of the following amounts:

         (1) the total amount of all cash received by or on behalf of the
related Servicer with respect to the Group I Loans by the Determination Date for
such Distribution Date and not previously distributed (including Liquidation
Proceeds, Insurance Proceeds and Subsequent Recoveries), except:

                  (a) all Prepaid Monthly Payments on the Group I Loans;

                  (b) all Curtailments on the Group I Loans received after the
applicable Prepayment Period;

                  (c) all Payoffs on the Group I Loans received after the
applicable Prepayment Period together with all interest paid by the related
Mortgagors in connection with such Payoffs;

                  (d) Insurance Proceeds, Liquidation Proceeds and Subsequent
Recoveries on the Group I Loans received after the applicable Prepayment Period;

                  (e) all amounts which are due and reimbursable to the related
Servicer pursuant to the terms of the related Servicing Agreement or to the
Master Servicer, the Securities Administrator, the Trustee or the Custodian
pursuant to the terms of this Agreement with respect to the Group I Loans;

                  (f) the Servicing Fee, the Master Servicing Fee and the Credit
Risk Management Fee for each Group I Loan for such Distribution Date;

                  (g) all investment earnings, if any, on amounts on deposit in
the related Distribution Account and each Protected Account;

                  (h) any premiums payable in connection with any lender paid
primary mortgage insurance policies with respect to the Group I Loans;

                  (i) the amount of any Prepayment Charges collected by the
related Servicer in connection with the Principal Prepayment of any of the Group
I Loans.

         (2) to the extent advanced by the related Servicer and/or the Master
Servicer and not previously distributed, the amount of any Advance made by the
related Servicer and/or the Master Servicer with respect to such Distribution
Date relating to the Group I Loans;

         (3) to the extent advanced by the related Servicer and/or the Master
Servicer and not previously distributed, any amount payable as Compensating
Interest by the related Servicer and/or the Master Servicer on such Distribution
Date relating to the Group I Loans; and

                                      -21-
<PAGE>

         (4) the total amount, to the extent not previously distributed, of all
cash received by the Distribution Date by the Trustee or the Master Servicer, in
respect of a Purchase Obligation with respect to a Group I Loan under Section
2.3 or any permitted repurchase of a Group I Loan.

         GROUP I CERTIFICATES: The Class I-A-1, I-A-2, I-A-3, I-A-4, I-A-5,
I-A-6, I-A-7, I-A-IO, I-M-1, I-M-2, I-M-3, I-CE and I-P Certificates.

         GROUP I CLEANUP CALL: As defined in Section 9.1.

         GROUP I CREDIT ENHANCEMENT PERCENTAGE: For any Class of Group I
Certificates and any Distribution Date, the percentage obtained by dividing (x)
the sum of (i) the aggregate Certificate Principal Balances of the Class or
Classes of Group I Certificates subordinate to such Certificate and (ii) the
related Overcollateralization Amount by (y) the aggregate Principal Balance of
the Group I Loans, calculated after taking into account distributions of
principal on the Group I Loans and distribution of the Group I Principal
Distribution Amount to the Holders of the Group I Certificates then entitled to
distributions of principal on such Distribution Date.

         GROUP I LOANS:  Those Loans identified on the Loan Schedule as Group I
Loans.

         GROUP I MARKER RATE: With respect to the Class I-CE Certificates and
any Distribution Date, a per annum rate equal to two (2) times the weighted
average of the Uncertificated REMIC III Pass-Through Rate for each of REMIC III
Regular Interest LTIII-1A1, REMIC III Regular Interest LTIII-1A2, REMIC III
Regular Interest LTIII-1A3, REMIC III Regular Interest LTIII-1A4, REMIC III
Regular Interest LTIII-1A5, REMIC III Regular Interest LTIII-1A6, REMIC III
Regular Interest LTIII-1A7, REMIC III Regular Interest LTIII-1M1, Regular
Interest LTIII-1M2, Regular Interest LTIII-1M3 and Regular Interest LTIII-1ZZ,
with the rate on each such REMIC III Regular Interest (other than REMIC III
Regular Interest LTIII-1ZZ) subject to a cap equal to Pass-Through Rate for the
Corresponding Certificate, and with the rate on REMIC III Regular Interest
LTIII-1ZZ subject to a cap of zero for the purpose of this calculation; provided
however, such cap for REMIC III Regular Interest LTIII-1A1 shall be multiplied
by a fraction the numerator of which is the actual number of days in the related
Interest Accrual Period and the denominator of which is 30.

         GROUP I MEZZANINE CERTIFICATES:  The Class I-M-1, I-M-2 and I-M-3
Certificates.

         GROUP I PRINCIPAL DISTRIBUTION AMOUNT: On any Distribution Date the sum
of (i) the principal portion of all scheduled Monthly Payments on the Group I
Loans due during the related Due Period, whether or not received on or prior to
the related Determination Date; (ii) the principal portion of repurchase
proceeds received with respect to any Group I Loan which was repurchased by the
Depositor pursuant to a Purchase Obligation or as permitted by this Agreement
(or, in the case of a substitution, amounts representing a principal adjustment)
during the related Prepayment Period; (iii) the principal portion of all other
unscheduled collections on the Group I Loans, including Insurance Proceeds,
Liquidation Proceeds, Subsequent Recoveries and all Curtailments and Payoffs
received during the related Prepayment Period, to the extent applied as
recoveries of principal on the Group I Loans MINUS (iv) the amount of any
related Overcollateralization Reduction Amount for such Distribution Date and
any amounts payable or reimbursable therefrom to the related Servicer, the
Trustee, the Custodian, the Master Servicer or the Securities Administrator
prior to distributions being made on the Group I Certificates. In no

                                      -22-
<PAGE>

event will the Group I Principal Distribution Amount with respect to any
Distribution Date be (x) less than zero or (y) greater than the then outstanding
aggregate Certificate Principal Balance of the Group I Certificates.

         GROUP I PRINCIPAL REMITTANCE AMOUNT: For any Distribution Date and the
Group I Loans, the sum of the amounts described in clauses (i) through (iii) of
the definition of Group I Principal Distribution Amount, net of any amounts
payable or reimbursable therefrom to the related Servicer, the Trustee, the
Custodian, the Master Servicer or the Securities Administrator.

         GROUP I REO PROPERTY: A Mortgaged Property related to a Group I Loan,
title to which has been acquired by the related Servicer on behalf of the Trust
Fund through foreclosure, deed in lieu of foreclosure or otherwise.

         GROUP I REQUIRED OVERCOLLATERALIZATION AMOUNT: With respect to any
Distribution Date following the Closing Date, an amount equal to approximately
$874,058.

         GROUP I RESERVE FUND: Shall mean the separate trust account created and
maintained by the Securities Administrator pursuant to Section 3.25 hereof on
behalf of the Holders of the Group I Certificates.

         GROUP I SENIOR CERTIFICATES: The Class I-A-1, I-A-2, I-A-3, I-A-4,
I-A-5, I-A-6, I-A-7 and I-A-IO Certificates.

         GROUP I SENIOR PRINCIPAL DISTRIBUTION AMOUNT: With respect to any
Distribution Date (i) prior to the Group I Stepdown Date or on or after the
Group I Stepdown Date if a Group I Trigger Event is in effect for that
Distribution Date, the Group I Principal Distribution Amount or (ii) on or after
the Group I Stepdown Date if a Group I Trigger Event is not in effect for that
Distribution Date, the lesser of:

          (a)  the Group I Principal Distribution Amount for that Distribution
               Date; and

          (b)  the excess of (A) the aggregate Certificate Principal Balance of
               the Group I Senior Certificates immediately prior to that
               Distribution Date over (B) the positive difference between (i)
               the aggregate Principal Balance of the Group I Loans as of the
               last day of the related Due Period (after reduction for Realized
               Losses on the Group I Loans incurred during the related
               Prepayment Period) and (ii) the product of (x) the aggregate
               Principal Balance of the Group I Loans as of the last day of the
               related Due Period (after reduction for Realized Losses on the
               Group I Loans incurred during the related Prepayment Period) and
               (y) the sum of 9.80% and the related Required
               Overcollateralization Percentage.

         GROUP I STEPDOWN DATE: The earlier to occur of (1) the first
Distribution Date on which the aggregate Certificate Principal Balance of the
Group I Senior Certificates has been reduced to zero and (2) the later to occur
of (x) the Distribution Date in May 2007 and (y) the first Distribution Date on
which the Group I Credit Enhancement Percentage of the Group I Senior
Certificates (calculated for this purpose only after taking into account
distributions of principal on the Group I Loans, but prior to any distribution
of the Group I Principal Distribution Amount

                                      -23-
<PAGE>

to the Holders of the Group I Certificates then entitled to distributions of
principal on the Distribution Date) is greater than or equal to 10.50%.

         GROUP I TERMINATOR: As defined in Section 9.1.

         GROUP I TRIGGER EVENT: With respect to any Distribution Date and the
Group I Certificates, the occurrence of any of the following events: (x) the
related Delinquency Percentage exceeds 50% of the Group I Credit Enhancement
Percentage of the Group I Senior Certificates for the prior Distribution Date,
or (y) the aggregate amount of Realized Losses with respect to the Group I Loans
incurred since the Cut-Off Date through the last day of the related Due Period
divided by the aggregate Principal Balance of the Group I Loans as of the
Cut-Off Date exceeds the applicable percentages set forth below with respect to
such Distribution Date:

------------------------------------------------- -------------------------
                     DISTRIBUTION DATE                   PERCENTAGE
------------------------------------------------- -------------------------
May 2007 to April 2008...........................          0.75%
------------------------------------------------- -------------------------
May 2008 to April 2009...........................          1.00%
------------------------------------------------- -------------------------
May 2009 and thereafter..........................          1.25%
------------------------------------------------- -------------------------

         GROUP II AVAILABLE DISTRIBUTION AMOUNT: With respect to a Distribution
Date, the sum of the following amounts:

         (1) the total amount of all cash received by or on behalf of the
related Servicer with respect to the Group II Loans by the Determination Date
for such Distribution Date and not previously distributed (including Liquidation
Proceeds, Insurance Proceeds and Subsequent Recoveries), except:

                  (a) all Prepaid Monthly Payments on the Group II Loans;

                  (b) all Curtailments on the Group II Loans received after the
applicable Prepayment Period;

                  (c) all Payoffs on the Group II Loans received after the
applicable Prepayment Period together with all interest paid by the related
Mortgagors in connection with such Payoffs;

                  (d) Insurance Proceeds, Liquidation Proceeds and Subsequent
Recoveries on the Group II Loans received after the applicable Prepayment
Period;

                  (e) all amounts which are due and reimbursable to the related
Servicer pursuant to the terms of the related Servicing Agreement or to the
Master Servicer, the Securities Administrator, the Trustee or the Custodian
pursuant to the terms of this Agreement with respect to the Group II Loans;

                  (f) the Servicing Fee, the Master Servicing Fee and the Credit
Risk Management Fee for each Group II Loan for such Distribution Date;

                                      -24-
<PAGE>

                  (g) all investment earnings, if any, on amounts on deposit in
the related Distribution Account and each Protected Account; and

                  (h) the amount of any Prepayment Charges collected by the
related Servicer in connection with the Principal Prepayment of any of the Group
II Loans.

         (2) to the extent advanced by the related Servicer and/or the Master
Servicer and not previously distributed, the amount of any Advance made by the
related Servicer and/or the Master Servicer with respect to such Distribution
Date relating to the Group II Loans;

         (3) to the extent advanced by the related Servicer and/or the Master
Servicer and not previously distributed, any amount payable as Compensating
Interest by the related Servicer and/or the Master Servicer on such Distribution
Date relating to the Group II Loans; and

         (4) the total amount, to the extent not previously distributed, of all
cash received by the Distribution Date by the Trustee or the Master Servicer, in
respect of a Purchase Obligation with respect to a Group II Loan under Section
2.3 or any permitted repurchase of a Group II Loan.

         GROUP II CERTIFICATES: The Class II-AR-1, II-AR-2, II-MR-1, II-MR-2,
II-MR-3, II-CE and II-P Certificates

         GROUP II CLEANUP CALL: As defined in Section 9.1.

         GROUP II CREDIT ENHANCEMENT PERCENTAGE: For any Class of Group II
Certificates and any Distribution Date, the percentage obtained by dividing (x)
the sum of (i) the aggregate Certificate Principal Balance of the Class or
Classes of Group II Certificates subordinate thereto and (ii) the related
Overcollateralization Amount by (y) the aggregate Principal Balance of the Group
II Loans, calculated after taking into account distributions of principal on the
Group II Loans and distribution of the Group II Principal Distribution Amount to
the Holders of the Group II Certificates then entitled to distributions of
principal on such Distribution Date.

         GROUP II LOANS:  Those Loans identified on the Loan Schedule as Group
II Loans.

         GROUP II MARKER RATE: With respect to the Class II-CE Certificates and
any Distribution Date, a per annum rate equal to two (2) times the weighted
average of the Uncertificated REMIC III Pass-Through Rate for each of REMIC III
Regular Interest LTIII-2AR1, REMIC III Regular Interest LTIII-2AR2, REMIC III
Regular Interest LTIII-2MR1, Regular Interest LTIII-2MR2, Regular Interest
LTIII-2MR3 and Regular Interest LTIII-2ZZ, with the rate on each such REMIC III
Regular Interest (other than REMIC III Regular Interest LTIII-2ZZ) subject to a
cap equal to Pass-Through Rate for the Corresponding Certificate, and with the
rate on REMIC III Regular Interest LTIII-2ZZ subject to a cap of zero for the
purpose of this calculation; provided however, each such cap for each REMIC III
Regular Interest (other than REMIC III Regular Interest LTIII-2ZZ) shall be
multiplied by a fraction the numerator of which is the actual number of days in
the related Interest Accrual Period and the denominator of which is 30.

         GROUP II MEZZANINE CERTIFICATES: The Class II-MR-1, II-MR-2 and II-MR-3
Certificates.

                                      -25-
<PAGE>

         GROUP II PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
sum of the Group II-1 Principal Distribution Amount and Group II-2 Principal
Distribution Amount.

         GROUP II PRINCIPAL REMITTANCE AMOUNT: For any Distribution Date and the
Group II Loans, the sum of the amounts described in clauses (i) through (iii) of
the definition of Group II-1 Principal Distribution Amount and Group II-2
Principal Distribution Amount, net of any amounts payable or reimbursable
therefrom to the related Servicer, the Trustee, the Custodian, the Master
Servicer or the Securities Administrator.

         GROUP II REO PROPERTY: A Mortgaged Property related to a Group II Loan,
title to which has been acquired by the related Servicer on behalf of the Trust
Fund through foreclosure, deed in lieu of foreclosure or otherwise.

         GROUP II REQUIRED OVERCOLLATERALIZATION AMOUNT: With respect to any
Distribution Date (a) if such Distribution Date is prior to the Group II
Stepdown Date, 0.60% of the aggregate Principal Balance of the Group II Loans as
of the Cut-Off Date, or (b) if such Distribution Date is on or after the Group
II Stepdown Date, the greater of (i) 1.20% of the then current aggregate
Principal Balance of the Group II 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
after reduction for Realized Losses on the Group II Loans incurred during the
related Prepayment Period) and (ii) the Overcollateralization Floor.

         GROUP II RESERVE FUND: Shall mean the separate trust account created
and maintained by the Securities Administrator pursuant to Section 3.25 hereof
on behalf of the Holders of the Group II Certificates.

         GROUP II SENIOR CERTIFICATES: The Class II-AR-1 Certificates and
II-AR-2 Certificates.

         GROUP II SENIOR PRINCIPAL DISTRIBUTION AMOUNT: The sum of the Class
II-AR-1 Principal Distribution Amount and the Class II-AR-2 Principal
Distribution Amount.

         GROUP II STEPDOWN DATE: The earlier to occur of (1) the first
Distribution Date on which the aggregate Certificate Principal Balance of the
Group II Senior Certificates has been reduced to zero and (2) the later to occur
of (x) the Distribution Date in May 2007 and (y) the first Distribution Date on
which the Group II Credit Enhancement Percentage of the Group II Senior
Certificates (calculated for this purpose only after taking into account
distributions of principal on the Group II Loans, but prior to any distribution
of the Group II Principal Distribution Amount to the Holders of the Group II
Certificates then entitled to distributions of principal on the Distribution
Date) is greater than or equal to 16.70%.

         GROUP II TERMINATOR: As defined in Section 9.1.

         GROUP II TRIGGER EVENT: With respect to any Distribution Date and the
Group II Certificates, the occurrence of any of the following events: (x) the
related Delinquency Percentage exceeds 38% of the Group II Credit Enhancement
Percentage of the Group II Senior Certificates for the prior Distribution Date,
or (y) the aggregate amount of Realized Losses on the Group II Loans incurred
since the Cut-Off Date through the last day of the related Due

                                      -26-
<PAGE>

Period divided by the aggregate Principal Balance of the Group II Loans as of
the Cut-Off exceeds the applicable percentages set forth below with respect to
such Distribution Date:

-------------------------------------------- -------------------------
                     DISTRIBUTION DATE              PERCENTAGE
-------------------------------------------- -------------------------
May 2007 to April 2008......................          1.00%
-------------------------------------------- -------------------------
May 2008 to April 2009......................          1.50%
-------------------------------------------- -------------------------
May 2009 to April 2010......................          1.75%
-------------------------------------------- -------------------------
May 2010 and thereafter.....................          2.00%
-------------------------------------------- -------------------------

         GROUP II-1 LOANS: Those Loans identified on the Loan Schedule as Group
II-1 Loans.

         GROUP II-1 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date,
the sum of (i) the principal portion of all scheduled Monthly Payments on the
Group II-1 Loans due during the related Due Period, whether or not received on
or prior to the related Determination Date; (ii) the principal portion of all
repurchase proceeds received with respect to any Group II-1 Loan which was
repurchased by the Depositor pursuant to a Purchase Obligation or as permitted
by this Agreement (or, in the case of a substitution, certain amounts
representing a principal adjustment) during the related Prepayment Period; (iii)
the principal portion of all other unscheduled collections on the Group II-1
Loans, including Insurance Proceeds, Liquidation Proceeds, Subsequent Recoveries
and all Curtailments and Payoffs, received during the related Prepayment Period,
to the extent applied as recoveries of principal on the Group II-1 Loans minus
(iv) the Class II-AR-1 Allocation Percentage of the amount of any
Overcollateralization Reduction Amount for such Distribution Date and any
amounts payable or reimbursable therefrom to the related Servicer, the Trustee,
the Custodian, the Master Servicer or the Securities Administrator. In no event
will the Group II-1 Principal Distribution Amount with respect to any
Distribution Date be (x) less than zero or (y) greater than the then outstanding
aggregate Certificate Principal Balance of the Group II Certificates.

         GROUP II-2 LOANS: Those Loans identified on the Loan Schedule as Group
II-2 Loans.

         GROUP II-2 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date,
the sum of (i) the principal portion of all scheduled Monthly Payments on the
Group II-2 Loans due during the related Due Period, whether or not received on
or prior to the related Determination Date; (ii) the principal portion of all
repurchase proceeds received with respect to any Group II-2 Loan which was
repurchased by the Depositor pursuant to a Purchase Obligation or as permitted
by this Agreement (or, in the case of a substitution, certain amounts
representing a principal adjustment) during the related Prepayment Period; (iii)
the principal portion of all other unscheduled collections on the Group II-2
Loans, including Insurance Proceeds, Liquidation Proceeds, Subsequent Recoveries
and all Curtailments and Payoffs, received during the related Prepayment Period,
to the extent applied as recoveries of principal on the Group II-2 Loans minus
(iv) the Class II-AR-2 Allocation Percentage of the amount of any
Overcollateralization Reduction Amount for such Distribution Date and any
amounts payable or reimbursable therefrom to the related Servicer, the Trustee,
the Custodian, the Master Servicer or the Securities Administrator. In no event
will the Group II-2 Principal Distribution Amount with respect to any
Distribution

                                      -27-
<PAGE>

Date be (x) less than zero or (y) greater than the then outstanding aggregate
Certificate Principal Balance of the Group II Certificates.

         GUARANTEED DISTRIBUTION: With respect to any Insured Certificates and
any Distribution Date, as defined in the Policy.

         INDEPENDENT: When used with respect to any specified Person, any such
Person who (i) is in fact independent of the Depositor, each Servicer and the
Master Servicer, (ii) does not have any direct financial interest or any
material indirect financial interest in the Depositor, either Servicer or the
Master Servicer or any Affiliate of either and (iii) is not connected with the
Depositor, either Servicer or the Master Servicer as an officer, employee,
promoter, underwriter, trustee, partner, director or person performing similar
functions.

         INDEX: As of any Adjustment Date, the index applicable to the
determination of the Mortgage Interest Rate on each Adjustable Rate Loan will
generally be 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 either (a) as of the first Business Day
45 days prior to such Adjustment Date or (b) as of the first Business Day of the
month preceding the month of such Adjustment Date, as specified in the related
Mortgage Note.

         INDIRECT DEPOSITORY PARTICIPANTS: Entities such as banks, brokers,
dealers or trust companies that clear through or maintain a custodial
relationship with a Depository Participant, either directly or indirectly.

         INSURANCE ACCOUNT: The account established pursuant to Section 12.2(b)
hereof.

         INSURANCE PAYMENT: Any payment made by Ambac with respect to any
Insured Certificates under the Policy.

         INSURANCE PROCEEDS: Proceeds of any title policy, hazard policy,
mortgage guaranty policy or other insurance policy covering a 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
applicable Servicing Agreement.

         INSURED CERTIFICATES: The Class I-A-5 Certificates and Class I-A-6
Certificates.

         INSURER DEFAULT: The existence and continuance of any failure by Ambac
to make a payment required under the Policy in accordance with its terms.

         INSURER PREMIUM: With respect to the Insured Certificates, the premium
payable to Ambac on each Distribution Date in an amount equal to one-twelfth of
the product of the Insurer Premium Rate and the aggregate Certificate Principal
Balance of the Insured Certificates immediately prior to such Distribution Date.

         INSURER PREMIUM RATE:  The per annum rate specified in the Policy.

         INTEREST ACCRUAL PERIOD: With respect to each Distribution Date and the
Group I Senior Certificates (other than the Class I-A-1 Certificates), and the
Group I Mezzanine Certificates, the

                                      -28-
<PAGE>

calendar month preceding the month in which that Distribution Date occurs. The
Interest Accrual Period for the Class I-A-1, Group II Senior and Group II
Mezzanine Certificates shall be (a) as to the Distribution Date in May 2004, the
period commencing on the Closing Date and ending on the day preceding the
Distribution Date in May 2004, and (b) as to any Distribution Date after the
Distribution Date in May 2004, the period commencing on the Distribution Date in
the month immediately preceding the month in which that Distribution Date occurs
and ending on the day preceding that Distribution Date. Interest on the Group I
Senior Certificates, other than the Class I-A-1 Certificates, and on the Group I
Mezzanine Certificates will be calculated based on a 360-day year consisting of
twelve 30-day months. Interest on the Class I-A-1, Group II Senior and Group II
Mezzanine Certificates will be calculated based on a 360-day year and the actual
number of days elapsed in the related Interest Accrual Period.

         INTEREST CARRY FORWARD AMOUNT: With respect to any Distribution Date
and any Class of Class A Certificates or Class M Certificates, the sum of (i)
the amount, if any, by which (a) the related Interest Distribution Amount for
such Class of Certificates for 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 related 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 DISTRIBUTION AMOUNT: On any Distribution Date, for any Class
of Certificates (other than the Class P Certificates and the Class R
Certificates), the amount of interest accrued on such Class during the related
Interest Accrual Period on the related Certificate Principal Balance or Notional
Amount of that, which shall be an amount, not less than zero, equal to (a) the
product of (1) 1/12th of the Pass-Through Rate for such Class and (2) the
Certificate Principal Balance or Notional Amount, as applicable, for such Class
before giving effect to allocations of Realized Losses in connection with such
Distribution Date or distributions to be made on such Distribution Date, REDUCED
BY (b) Uncompensated Interest Shortfalls allocated to such Class pursuant to
Section 1.2 and the interest portion of Realized Losses allocated to such Class
pursuant to Section 1.2.

         INTEREST REMITTANCE AMOUNT: With respect to any Distribution Date and a
Loan Group, that portion of the related Available Distribution Amount
attributable to interest received or advanced on the Group I Loans or the Group
II Loans, as applicable.

         INVESTMENT WITHDRAWAL DISTRIBUTION DATE:  As defined in Section
3.23(c).

         LAST SCHEDULED DISTRIBUTION DATE: With respect to each Class of Group I
Certificates other than the Class I-A-IO Certificates, March 25, 2034. With
respect to the Class I-A-IO Certificates, April 25, 2006. With respect to each
Class of Group II Certificates, May 25, 2034.

         LIBOR: For the initial Interest Accrual Period, on the Closing Date,
the Securities Administrator will determine the One-Month LIBOR for such
Interest Accrual Period based on information available on the second business
day preceding the Closing Date with respect to the Class I-A-1, Group II Senior
and Group II Mezzanine Certificates, and for any Interest Accrual Period
thereafter, the one month rate which appears on the Dow Jones Telerate System,
page 3750, as of 11:00 a.m., London time on the LIBOR Determination Date. If
such rate is not

                                      -29-
<PAGE>

provided, LIBOR shall mean the rate determined by the Securities Administrator
(or a calculation agent on its behalf) in accordance with the following
procedure:

                  (i) The Securities Administrator on the LIBOR Determination
Date will request the principal London offices of each of four major Reference
Banks in the London interbank market, as selected by the Securities
Administrator, to provide the Securities Administrator with its offered
quotation for deposits in United States dollars for the upcoming one-month
period, commencing on the second LIBOR Business Day immediately following such
LIBOR Determination Date, to prime banks in the London interbank market at
approximately 11:00 a.m. London time on such LIBOR Determination Date and in a
principal amount that is representative for a single transaction in United
States dollars in such market at such time. If at least two such quotations are
provided, LIBOR determined on such LIBOR Determination Date will be the
arithmetic mean of such quotations.

                  (ii) If fewer than two quotations are provided, LIBOR
determined on such LIBOR Determination Date will be the arithmetic mean of the
rates quoted at approximately 11:00 a.m. in New York City on such LIBOR
Determination Date by three major banks in New York City selected by the
Securities Administrator for one-month United States dollar loans to lending
European banks, in a principal amount that is representative for a single
transaction in United States dollars in such market at such time; provided,
however, that if the banks so selected by the Securities Administrator are not
quoting as mentioned in this sentence, LIBOR determined on such LIBOR
Determination Date will continue to be LIBOR as then currently in effect on such
LIBOR Determination Date.

         LIBOR BUSINESS DAY: Any day on which dealings in United States dollars
are transacted in the London interbank market.

         LIBOR DETERMINATION DATE: The second LIBOR Business Day before the
first day of the related Interest Accrual Period.

         LIQUIDATED LOAN: A Loan as to which the related Servicer has determined
in accordance with its customary servicing practices that all amounts which it
expects to recover from or on account of such Loan, whether from Insurance
Proceeds, Liquidation Proceeds or otherwise, have been recovered. For purposes
of this definition, acquisition of a Mortgaged Property by the Trust Fund shall
not constitute final liquidation of the related Loan.

         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 applicable Servicer pursuant to the related
Servicing Agreement or 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 Loan through a trustee's
sale, foreclosure sale or otherwise, or (iii) the repurchase, substitution or
sale of a Loan or an REO Property pursuant to or as contemplated by Section 2.3
or Section 9.1.

         LOAN DOCUMENTS: The documents evidencing or relating to each Loan
delivered to the Custodian under the Custodial Agreement on behalf of the
Trustee.

         LOAN GROUP:  The Group I Loans or the Group II Loans, as applicable.

                                      -30-
<PAGE>

         LOAN SCHEDULE: The schedule, as amended from time to time, of Loans,
attached hereto as Schedule One, which shall set forth as to each Loan the
following, among other things:

          (i)  the loan number of the Loan and name of the related Mortgagor;

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

          (iii) the Mortgage Interest Rate as of the Cut-Off Date;

          (iv) the original term and maturity date of the related Mortgage Note;

          (v)  the original Principal Balance;

          (vi) the first payment date;

         (vii) the Monthly Payment in effect as of the Cut-Off Date;

        (viii) the date of the last paid installment of interest;

          (ix) the unpaid Principal Balance as of the close of business on the
               Cut-Off Date;

          (x)  the Loan-to-Value ratio at origination;

          (xi) the type of property and the Original Value of the Mortgaged
               Property;

         (xii) whether a primary mortgage insurance policy is in effect as of
               the Cut-Off Date;

        (xiii) the nature of occupancy at origination;

         (xiv) a code indicating whether the Loan is subject to Prepayment
               Charge, the term of such Prepayment Charge and the amount of such
               Prepayment Charge;

          (xv) with respect to each Adjustable Rate Loan, the first Adjustment
               Date;

         (xvi) with respect to each Adjustable Rate Loan, the Gross Margin;

        (xvii) with respect to each Adjustable Rate Loan, the Maximum Mortgage
               Interest Rate under the terms of the Mortgage Note; (xviii) with
               respect to each Adjustable Rate Loan, the Minimum Mortgage
               Interest Rate under the terms of the Mortgage Note;

         (xix) with respect to each Adjustable Rate Loan, the Periodic Rate
               Cap;

                                      -31-
<PAGE>

          (xx) with respect to each Adjustable Rate Loan, the first Adjustment
               Date immediately following the Cut-off Date;

          (xxi) with respect to each Adjustable Rate Loan, the Index; and

          (xxii) the related Loan Group.

         LOANS: The Mortgages and the related Mortgage Notes, each transferred
and assigned to the Trustee pursuant to the provisions hereof as from time to
time are held as part of the Trust Fund, as so identified in the Loan Schedule.
Each of the Loans is referred to individually in this Agreement as a "Loan".

         LOAN-TO-VALUE RATIO: The original principal amount of a Loan divided by
the Original Value; however, references to "current Loan-to-Value Ratio" shall
mean the then current Principal Balance of a Loan divided by the Original Value.

         M&T:  M&T Mortgage Corporation, a New York banking corporation, or any
successor thereto.

         M&T SERVICING AGREEMENT: The Interim Servicing and Servicing Rights
Purchase Agreement, dated as of December 1, 2003 between Deutsche Bank AG New
York Branch ("DBNY") and M&T, as assigned, with respect to the Group I Loans, by
DBNY to the Seller pursuant to that certain Assignment, Assumption and
Recognition Agreement, dated as of April 30, 2004, among the Seller, DBNY, M&T
and First National Bank of Nevada, and as modified pursuant to the related
Assignment Agreement.

         MASTER SERVICER: As of the Closing Date, Wells Fargo Bank, N.A. and
thereafter, its respective successors in interest who meet the qualifications of
this Agreement. The Master Servicer and the Securities Administrator shall at
all times be the same Person.

         MASTER SERVICER EVENT OF DEFAULT:  One or more of the events described
in Section 7.1 hereof.

         MASTER SERVICING FEE: As to each Loan and any Distribution Date, an
amount equal to one twelfth of the product of the Master Servicing Fee Rate
multiplied by the Scheduled Principal Balance of such Loan as of the Due Date in
the month preceding the month of such Distribution Date.

         MASTER SERVICING FEE RATE:  0.0025% per annum.

         MAXIMUM MORTGAGE INTEREST RATE: With respect to each Adjustable Rate
Loan, the percentage set forth in the related Mortgage Note as the maximum
Mortgage Interest Rate thereunder.

         MINIMUM MORTGAGE INTEREST RATE: With respect to each Adjustable Rate
Loan, the percentage set forth in the related Mortgage Note as the minimum
Mortgage Interest Rate thereunder.

                                      -32-
<PAGE>

         MONTHLY PAYMENT: The scheduled payment of principal and interest on a
Loan which is due on any Due Date for such Loan after giving effect to any
reduction in the amount of interest collectible from any Mortgagor pursuant to
the Relief Act.

         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 Loan Documents pertaining to a particular Loan.

         MORTGAGE INTEREST RATE: With respect to each Loan, the annual rate at
which interest accrues on such Loan from time to time in accordance with the
provisions of the related Mortgage Note without regard to any reduction thereof
as a result of the Relief Act, which rate with respect to each Adjustable Rate
Loan (A) as of any date of determination until the first Adjustment Date
following the Cut-off Date shall be the rate set forth in the Loan Schedule as
the Mortgage Interest Rate in effect immediately following the Cut-off Date and
(B) as of any date of determination thereafter shall be the rate as adjusted on
the most recent Adjustment Date 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 Interest Rate on such
Adjustable Rate Loan on any Adjustment Date shall never be more than the lesser
of (i) the sum of the Mortgage Interest Rate in effect immediately prior to the
Adjustment Date plus the related Periodic Rate Cap, if any, and (ii) the related
Maximum Mortgage Interest Rate, and shall never be less than the greater of (i)
the Mortgage Interest Rate in effect immediately prior to the Adjustment Date
less the Periodic Rate Cap, if any, and (ii) the related Minimum Mortgage
Interest Rate. With respect to each Mortgage Loan that becomes an REO Property,
as of any date of determination, the annual rate determined in accordance with
the immediately preceding sentence as of the date such Mortgage Loan became an
REO Property.

         MORTGAGE LOAN PURCHASE AGREEMENT: The Mortgage Loan Purchase Agreement
dated as of April 30, 2004, between the Depositor and the Seller.

         MORTGAGE NOTE: The note or other evidence of indebtedness evidencing
the indebtedness of a Mortgagor under a Loan.

         MORTGAGE POOL: All of the Loans.

         MORTGAGED PROPERTY: With respect to any Loan, the real property,
together with improvements thereto, securing the indebtedness of the Mortgagor
under the related Loan.

         MORTGAGOR: The obligor on a Mortgage Note.

         NET MONTHLY EXCESS CASHFLOW: With respect to any Distribution Date and
a Loan Group, the sum of (i) any related Overcollateralization Reduction Amount
and (ii) the excess of (x) the related Available Distribution Amount for such
Distribution Date over (y) the sum for such Distribution Date of (A) the
aggregate Senior Interest Distribution Amounts payable to the Holders of the
related Senior Certificates, (B) the aggregate Interest Distribution Amounts

                                      -33-
<PAGE>

payable to the Holders of the related Class M Certificates, (C) the related
Principal Remittance Amount and (D) with respect to the Group I Certificates,
the premium payable to Ambac.

         NET MORTGAGE RATE: For each Loan and for any date of determination, a
per annum rate equal to the Mortgage Interest Rate for such Loan less the
related Servicing Fee Rate, the Master Servicing Fee Rate, the Credit Risk
Management Fee Rate and the rate at which the premium payable in connection with
any lender paid primary mortgage insurance policy is paid, if applicable.

         NET WAC PASS-THROUGH RATE:

         (a) For the Group I Senior Certificates (other than the Class I-A-IO
Certificates) and the Group I Mezzanine Certificates for (i) the May 2004
Distribution Date through the April 2006 Distribution Date, a per annum rate
equal to (1) the weighted average of the Net Mortgage Rates of the Group I Loans
as of the first day of the month preceding the month in which such Distribution
Date occurs minus (2) the Pass-Through Rate for the Class I-A-IO Certificates
for such Distribution Date multiplied by a fraction, the numerator of which is
the Notional Amount of the Class I-A-IO Certificates immediately prior to such
Distribution Date, and the denominator of which is the aggregate Principal
Balance of the Group I Loans before giving effect to distributions on such
Distribution Date and, with respect to the Insured Certificates, minus the
Insurer Premium Rate (ii) any subsequent Distribution Date, a per annum rate
equal to the weighted average of the Net Mortgage Rates of the Group I Loans as
of the first day of the month preceding the month in which such Distribution
Date occurs, minus, with respect to the Insured Certificates, minus the Insurer
Premium Rate; provided that in each case the per annum rate applicable to the
Class I-A-1 Certificates shall be subject to adjustment based on the actual
number of days elapsed in the related Interest Accrual Period. For United States
federal income tax purposes, the equivalent of the foregoing shall be expressed
as the weighted average of the Uncertificated REMIC III Pass-Through Rates on
REMIC III Regular Interest LTIII-1AA, REMIC III Regular Interest LTIII-1A1,
REMIC III Regular Interest LTIII-1A2, REMIC III Regular Interest LTIII-1A3,
REMIC III Regular Interest LTIII-1A4, REMIC III Regular Interest LTIII-1A5,
REMIC III Regular Interest LTIII-1A6, REMIC III Regular Interest LTIII-1A7,
REMIC III Regular Interest LTIII-1M1, Regular Interest LTIII-1M2, Regular
Interest LTIII-1M3, Regular Interest LTIII-1ZZ and REMIC III Regular Interest
LTIII-1P, weighted on the basis of the Uncertificated Principal Balance of each
such REMIC III Regular Interest, and with respect to the Insured Certificates,
minus the Insurer Premium Rate.

         (b) For any Distribution Date and the Class II-AR-1 Certificates, a per
annum rate (subject to adjustment based on the actual number of days elapsed in
the related Interest Accrual Period) equal to the weighted average of the Net
Mortgage Rates of the Group II-1 Loans. For United States federal income tax
purposes, the equivalent of the foregoing shall be expressed as the weighted
average of the Uncertificated REMIC III Pass-Through Rate on REMIC III Regular
Interest LTIII-2GRP1, weighted on the basis of the Uncertificated Principal
Balance of such REMIC III Regular Interest.

         (c) For any Distribution Date and the Class II-AR-2 Certificates, will
be a per annum rate (subject to adjustment based on the actual number of days
elapsed in the related Interest Accrual Period) equal to the weighted average of
the Net Mortgage Rates of the Group II-2

                                      -34-
<PAGE>

Loans. For United States federal income tax purposes, the equivalent of the
foregoing shall be expressed as the weighted average of the Uncertificated REMIC
III Pass-Through Rate on REMIC III Regular Interest LTIII-2GRP2, weighted on the
basis of the Uncertificated Principal Balance of such REMIC III Regular
Interest.

         (d) For any Distribution Date and the Group II Mezzanine Certificates,
will be a per annum rate (subject to adjustment based on the actual number of
days elapsed in the related Interest Accrual Period) equal to the weighted
average (weighted on the basis of the results of subtracting from the aggregate
Principal Balance of the Group II-1 Loans and Group II-2 Loans the Certificate
Principal Balance of the Class II-AR-1 Certificates and Class II-AR-2
Certificates, respectively) of (i) the weighted average of the Net Mortgage
Rates of the Group II-1 Loans, and (ii) the weighted average of the Net Mortgage
Rates of the Group II-2 Loans. For United States federal income tax purposes,
the equivalent of the foregoing shall be expressed as the weighted average of
the Uncertificated REMIC III Pass-Through Rate on (i) REMIC III Regular Interest
LTIII-2SUB1, subject to a cap and a floor equal to the weighted average of the
Net Mortgage Rates on the Group II-1 Loans, and (ii) REMIC III Regular Interest
LTIII-2SUB2, subject to a cap and a floor equal to the weighted average of the
Net Mortgage Rates on the Group II-2 Loans, weighted, in each case, on the basis
of the Uncertificated Principal Balance of such REMIC III Regular Interest.

         NET WAC RATE CARRYOVER AMOUNT: With respect to the Class A Certificates
(other than the Class I-A-IO Certificates) and the Class M Certificates and any
Distribution Date on which the related Pass-Through Rate is limited to the
related Net WAC Pass-Through Rate, an amount equal to the sum of (i) the excess
of (x) the amount of interest such Certificates would have been entitled to
receive on such Distribution Date if the Net WAC Pass-Through Rate had not been
applicable to such Certificates on such Distribution Date over (y) the amount of
interest accrued on such Distribution Date at the related Net WAC Pass-Through
Rate plus (ii) the related Net WAC Rate Carryover Amount for the previous
Distribution Date not previously distributed together with interest thereon at a
rate equal to the related Pass-Through Rate for such Class of Certificates for
the most recently ended Interest Accrual Period determined without taking into
account the applicable Net WAC Pass-Through Rate.

         NONRECOVERABLE ADVANCE: With respect to any Loan, any Advance or
Servicing Advance which the related Servicer shall have determined to be a
Nonrecoverable Advance as defined in and pursuant to the related Servicing
Agreement, or which the Master Servicer shall have determined to be
nonrecoverable pursuant to Section 4.7, respectively, and which was or is
proposed to be made by such Servicer or the Master Servicer.

         NON-U.S. PERSON: A Person that is not a U.S. Person.

         NOTIONAL AMOUNT: With respect to the Class I-A-IO Certificates will be
as follows: the lesser of (x) from and including the 1st Distribution Date
through and including the 6th Distribution Date, $31,250,000; from and including
the 7th Distribution Date through and including the 18th Distribution Date,
$25,000,000; from and including the 19th Distribution Date through and including
the 22nd Distribution Date, $18,750,000; from and including the 23rd
Distribution Date through and including the 24th Distribution Date, $12,500,000;
thereafter $0 and (y) the then aggregate principal balance of the Group I Loans
(prior to giving effect to

                                      -35-
<PAGE>

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). For United States federal income tax purposes,
the Class I-A-IO Certificates will not have a Notional Amount, but will be
entitled to 100% of amounts distributed on REMIC III Regular Interest LTIII-IO-A
and REMIC III Regular Interest LTIII-IO-B. With respect to the Class I-CE
Certificates, immediately prior to any Distribution Date, the aggregate of the
Uncertificated Principal Balances of the REMIC III Group I Regular Interests
(other than REMIC III Regular Interest LTIII-IO-A, REMIC III Regular Interest
LTIII-IO-B and REMIC III Regular Interest LTIII-1P). With respect to the Class
II-CE Certificates, immediately prior to any Distribution Date, the aggregate of
the Uncertificated Principal Balances of the REMIC III Group II Regular
Interests (other than REMIC III Regular Interest LTIII-2P).

         OFFICER'S CERTIFICATE: With respect to any Person, a certificate signed
by the Chairman of the Board, the President or a Vice-President, however
denominated, of such Person (or, in the case of a Person which is not a
corporation, signed by the person or persons having like responsibilities), and
delivered to the Trustee.

         OPINION OF COUNSEL: A written opinion of counsel, who may, without
limitation, be salaried counsel for the Depositor, a Servicer, the Securities
Administrator or the Master Servicer, acceptable to the Trustee, 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.

         ORIGINAL VALUE: With respect to any Loan other than a Loan originated
for the purpose of refinancing an existing mortgage debt, the lesser of (a) the
Appraised Value (if any) of the Mortgaged Property at the time the Loan was
originated or (b) the purchase price paid for the Mortgaged Property by the
Mortgagor. With respect to a Loan originated for the purpose of refinancing
existing mortgage debt, the Original Value shall be equal to the lesser of (a)
the Appraised Value of the Mortgaged Property at the time the Loan was
originated or (b) the appraised value at the time the refinanced mortgage debt
was incurred.

         OTS: The Office of Thrift Supervision, or any successor thereto.

         OVERCOLLATERALIZATION AMOUNT: With respect to any Distribution Date
following the Closing Date, the excess, if any, of (a) the aggregate Principal
Balances of the Loans and REO Properties of a Loan Group immediately following
such Distribution Date over (b) the sum of the aggregate Certificate Principal
Balances of the related Senior Certificates, the related Class M Certificates
and the related Class P Certificates as of such Distribution Date (after taking
into account all payments of principal on such Distribution Date).

         OVERCOLLATERALIZATION FLOOR: For any Distribution Date and the Group II
Certificates, 0.50% of the aggregate Principal Balance of the Group II Loans as
of the Cut-off Date.

         OVERCOLLATERALIZATION INCREASE AMOUNT: With respect to any Distribution
Date and a Loan Group, the amount, if any, by which the related Required
Overcollateralization Amount exceeds the related Overcollateralization Amount
for such Distribution Date (calculated for this purpose only after assuming that
100% of the related Principal Remittance Amount on such Distribution Date has
been distributed).

                                      -36-
<PAGE>

         OVERCOLLATERALIZATION REDUCTION AMOUNT: With respect to any
Distribution Date and a Loan Group, the lesser of (i) the related Principal
Remittance Amount on such Distribution Date and (ii) the excess, if any, of (a)
the related Overcollateralization Amount for such Distribution Date (calculated
for this purpose only after assuming that 100% of the related Principal
Remittance Amount on such Distribution Date has been distributed over (b) the
related Required Overcollateralization Amount for such Distribution Date;
provided however that on any Distribution Date on which a Group I Trigger Event
or Group II Trigger Event, as applicable, is in effect, the
Overcollateralization Reduction Amount shall equal zero.

         OWNERSHIP INTEREST: With respect to any Residual Certificate, any
ownership or security interest in such Residual Certificate, including any
interest in a Residual Certificate as the Holder thereof and any other interest
therein whether direct or indirect, legal or beneficial, as owner or as pledge.

         PASS-THROUGH ENTITY: Any regulated investment company, real estate
investment trust, common trust fund, partnership, trust or estate, and any
organization to which Section 1381 of the Code applies.

         PASS-THROUGH RATE: With respect to the Class A Certificates (other than
the Class I-A-IO Certificates) and Class M Certificates and any Distribution
Date, the lesser of (i) the interest rate listed in the Preliminary Statement
hereto and (ii) the related Net WAC Pass-Through Rate; provided, that with
respect to the Class I-A-5, Class I-A-6, Class I-M-1, Class I-M-2 and Class
I-M-3 Certificates, the interest rate listed in the Preliminary Statement hereto
shall be increased by 0.50% per annum on the Distribution Date following the
date of the first possible Group I Cleanup Call; provided, further, that the
margin applicable to the interest rate listed in the Preliminary Statement
hereto with respect to the Class II-AR-1 Certificates and Class II-AR-2
Certificates will increase by 100% per annum, and the margin applicable to the
interest rate listed in the Preliminary Statement hereto with respect to the
Group II Mezzanine Certificates will increase by 50% per annum, on the
Distribution Date following the date of the first possible Group II Cleanup
Call. With respect to the Class I-A-IO Certificates (i) for the first twelve
Distribution Dates, 4.50% per annum, (ii) for the next twelve Distribution
Dates, 3.50% per annum and (iii) for any Distribution Date thereafter, 0.00%.
For United States federal income tax purposes, however, the Class I-A-IO
Certificates will not have a Pass-Through Rate, and the Interest Distribution
Amount for the Class I-A-IO Certificates and any Distribution Date will be
deemed to be 100% of the amount distributed on REMIC III Regular Interest
LTIII-IO-A and REMIC III Regular Interest LTIII-IO-B for such Distribution Date.

         With respect to the Class I-CE Certificates, on any Distribution Date,
a per annum rate equal to the percentage equivalent of a fraction, the numerator
of which is (x) the sum of the amounts calculated pursuant to clauses (A)
through (M) below, and the denominator of which is (y) the aggregate of the
Uncertificated Principal Balances of the REMIC III Group I Regular Interests
(other than REMIC III Regular Interest LTIII-IO-A, REMIC III Regular Interest
LTIII-IO-B and REMIC III Regular Interest LTIII-1P). For purposes of calculating
the Pass-Through Rate for the Class I-CE Certificates, the numerator is equal to
the sum of the following components:

                                      -37-
<PAGE>

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

                  (B) the Uncertificated REMIC III Pass-Through Rate for REMIC
III Regular Interest LTIII-1A1 minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC III Regular Interest LTIII-1A1;

                  (C) the Uncertificated REMIC III Pass-Through Rate for REMIC
III Regular Interest LTIII-1A2 minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC III Regular Interest LTIII-1A2;

                  (D) the Uncertificated REMIC III Pass-Through Rate for REMIC
III Regular Interest LTIII-1A3 minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC III Regular Interest LTIII-1A3;

                  (E) the Uncertificated REMIC III Pass-Through Rate for REMIC
III Regular Interest LTIII-1A4 minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC III Regular Interest LTIII-1A4;

                  (F) the Uncertificated REMIC III Pass-Through Rate for REMIC
III Regular Interest LTIII-1A5 minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC III Regular Interest LTIII-1A5;

                  (G) the Uncertificated REMIC III Pass-Through Rate for REMIC
III Regular Interest LTIII-1A6 minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC III Regular Interest LTIII-1A6;

                  (H) the Uncertificated REMIC III Pass-Through Rate for REMIC
III Regular Interest LTIII-1A7 minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC III Regular Interest LTIII-1A7;

                  (I) the Uncertificated REMIC III Pass-Through Rate for REMIC
III Regular Interest LTIII-1M1 minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC III Regular Interest LTIII-1M1;

                  (J) the Uncertificated REMIC III Pass-Through Rate for REMIC
III Regular Interest LTIII-1M2 minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC III Regular Interest LTIII-1M2;

                  (K) the Uncertificated REMIC III Pass-Through Rate for REMIC
III Regular Interest LTIII-1M3 minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC III Regular Interest LTIII-1M3;

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

                                      -38-
<PAGE>

                  (M) 100% of the interest distributable on REMIC III Regular
Interest LTIII-1P.

         With respect to the Class II-CE Certificates, on any Distribution Date,
a per annum rate equal to the percentage equivalent of a fraction, the numerator
of which is (x) the sum of the amounts calculated pursuant to clauses (A)
through (H) below, and the denominator of which is (y) the aggregate of the
Uncertificated Principal Balances of REMIC III Regular Interest LTIII-2AA, REMIC
III Regular Interest LTIII-2AR1, REMIC III Regular Interest LTIII-2AR2, REMIC
III Regular Interest LTIII-2MR1, Regular Interest LTIII-2MR2, Regular Interest
LTIII-2MR3 and Regular Interest LTIII-2ZZ. For purposes of calculating the
Pass-Through Rate for the Class II-CE Certificates, the numerator is equal to
the sum of the following components:

                  (A) the Uncertificated REMIC III Pass-Through Rate for REMIC
III Regular Interest LTIII-2AA minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC III Regular Interest LTIII-2AA;

                  (B) the Uncertificated REMIC III Pass-Through Rate for REMIC
III Regular Interest LTIII-2AR1 minus the Marker Rate, applied to an amount
equal to the Uncertificated Principal Balance of REMIC III Regular Interest
LTIII-2AR1;

                  (C) the Uncertificated REMIC III Pass-Through Rate for REMIC
III Regular Interest LTIII-2AR2 minus the Marker Rate, applied to an amount
equal to the Uncertificated Principal Balance of REMIC III Regular Interest
LTIII-2AR2;

                  (D) the Uncertificated REMIC III Pass-Through Rate for REMIC
III Regular Interest LTIII-2MR1 minus the Marker Rate, applied to an amount
equal to the Uncertificated Principal Balance of REMIC III Regular Interest
LTIII-2MR1;

                  (E) the Uncertificated REMIC III Pass-Through Rate for REMIC
III Regular Interest LTIII-2MR2 minus the Marker Rate, applied to an amount
equal to the Uncertificated Principal Balance of REMIC III Regular Interest
LTIII-2MR2;

                  (F) the Uncertificated REMIC III Pass-Through Rate for REMIC
III Regular Interest LTIII-2MR3 minus the Marker Rate, applied to an amount
equal to the Uncertificated Principal Balance of REMIC III Regular Interest
LTIII-2MR3;

                  (G) the Uncertificated REMIC III Pass-Through Rate for REMIC
III Regular Interest LTIII-2ZZ minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC III Regular Interest LTIII-2ZZ;
and

                  (H) 100% of the interest distributable on REMIC III Regular
Interest LTIII-2P.

         PAYOFF: Any voluntary payment of principal on a Loan by a Mortgagor
equal to the entire outstanding Principal Balance of such Loan, if received in
advance of the last scheduled Due

                                      -39-
<PAGE>

Date for such Loan and is not accompanied by scheduled interest due on any date
or dates in any month or months subsequent to the month of such payment-in-full.

         PERCENTAGE INTEREST: With respect to any Class of Certificates (other
than the Residual Certificates) and any date of determination, 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 or Notional Amount of all of the
Certificates of such Class. Each Certificate is issuable only in minimum
Percentage Interests corresponding to the Authorized Denomination of the related
Class of Certificates; provided, however, that a single Certificate of each 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, is as set forth on the
face of such Certificate.

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

         PERMITTED TRANSFEREE: With respect to the holding or ownership of any
Residual Certificate, any Person other than (i) the United States, a State or
any political subdivision thereof, or any agency or instrumentality of any of
the foregoing, (ii) a foreign government or International Organization, or any
agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in Code Section 521) which is
exempt from the taxes imposed by Chapter 1 of the Code (unless such organization
is subject to the tax imposed by Section 511 of the Code on unrelated business
taxable income), (iv) rural electric and telephone cooperatives described in
Code Section 1381(a)(2)(C), (v) any electing large partnership under Section 775
of the Code, (vi) any Person from whom the Trustee or the Securities
Administrator has not received an affidavit to the effect that it is not a
"disqualified organization" within the meaning of Section 860E(e)(5) of the
Code, and (vii) any other Person so designated by the Depositor based upon an
Opinion of Counsel that the transfer of an Ownership Interest in a Residual
Certificate to such Person may cause the Trust Fund to fail to qualify as a
REMIC at any time that the Certificates are outstanding. The terms "United
States," "State" and "International Organization" shall have the meanings set
forth in Code Section 7701 or successor provisions. A corporation shall 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, with the
exception of the Freddie Mac, a majority of its board of directors is not
selected by such governmental unit.

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

                                      -40-
<PAGE>

         PLAN: As defined in Section 5.3.

         POLICY: The Certificate Guaranty Insurance Policy No. AB0753BE issued
by Ambac in respect of the Insured Certificates, including any endorsements
thereto, a copy of which is attached hereto as Exhibit H hereto.

         PREPAID MONTHLY PAYMENT: Any Monthly Payment received prior to its
scheduled Due Date, which is intended to be applied to a Loan on its scheduled
Due Date and held in the related Protected Account until the related Servicer
Remittance Date following its scheduled Due Date.

         PREPAYMENT CHARGE: With respect to any Principal Prepayment, any
prepayment premium, penalty or charge payable by a Mortgagor in connection with
any Principal Prepayment on a Loan pursuant to the terms of the related Mortgage
Note.

         PREPAYMENT CHARGE SCHEDULE: As of any date, the list of Loans providing
for a Prepayment Charge included in the Trust Fund on such date, attached hereto
as Schedule Two (including the prepayment charge summary attached thereto). The
Depositor shall deliver or cause the delivery of the Prepayment Charge Schedule
to the Master Servicer, the Trustee and the Credit Risk Manager on the Closing
Date. The Prepayment Charge Schedule shall set forth the following information
with respect to each Prepayment Charge:

          (i)  the Loan identifying number;

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

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

          (iv) the term of the related Prepayment Charge;

          (v)  the original Principal Balance of the related Loan; and

          (vi) the Principal Balance of the related Loan as of the Cut-off Date.

         PREPAYMENT INTEREST SHORTFALL: For any Distribution Date and any Loan
on which a Payoff was made by a Mortgagor during the related Prepayment Period,
an amount equal to one month's interest at the applicable Net Mortgage Rate on
such Loan less the amount of interest actually paid by the Mortgagor with
respect to such Payoff.

         PREPAYMENT PERIOD: For any Distribution Date and the Group I Loans, the
period beginning on the 16th day of the month preceding the month in which such
Distribution Date occurs and ending on the 15th day of the month in which such
Distribution Date occurs with respect to Payoffs, and the calendar month
immediately preceding the month in which such Distribution Date occurs with
respect to Curtailments. For any Distribution Date and the Group II Loans, the
calendar month immediately preceding the month in which such Distribution Date
occurs.

         PRINCIPAL BALANCE: For any Loan and at the time of any determination,
the principal balance of such Loan remaining to be paid at the close of business
on the Cut-Off Date, after

                                      -41-
<PAGE>

deduction of all principal payments due on or before the Cut-Off Date whether or
not received, reduced by the principal portion of all amounts received with
respect to such Loan after the Cut-Off Date and distributed or to be distributed
to Certificateholders through the Distribution Date in the month of such
determination. In the case of a Substitute Loan, "Principal Balance" shall mean,
at the time of any determination, the principal balance of such Substitute Loan
on the related Cut-Off Date, reduced by the principal portion of all amounts
received with respect to such Loan after the Cut-Off Date and distributed or to
be distributed to Certificateholders through the Distribution Date in the month
of determination. The Principal Balance of a Liquidated Loan shall be zero.

         PRINCIPAL PREPAYMENT: Any payment of principal on a Loan which
constitutes a Payoff or a Curtailment.

         PRINCIPAL PREPAYMENT AMOUNT: On any Distribution Date and for the
Loans, the sum of (i) Curtailments received during the related Prepayment Period
and (ii) Payoffs received during the related Prepayment Period.

         PRINCIPAL REMITTANCE AMOUNT: The Group I Principal Remittance Amount or
Group II Principal Remittance Amount, as applicable.

         PROTECTED ACCOUNT: An account or accounts established and maintained
for the benefit of the Certificateholders by each Servicer with respect to the
related Loans and with respect to REO Property pursuant to the applicable
Servicing Agreement.

         PURCHASE OBLIGATION: An obligation of the Depositor to repurchase Loans
under the circumstances and in the manner provided in Section 2.3.

         PURCHASE PRICE: With respect to any Loan to be purchased pursuant to a
Purchase Obligation, or any Loan to be purchased or repurchased relating to an
REO Property, and as confirmed by an Officers' Certificate from the Master
Servicer to the Trustee and the Securities Administrator, an amount equal to the
sum of (i) 100% of the Principal Balance thereof as of the date of purchase (or,
in the case of an REO Property being purchased pursuant to Section 9.1, 100% of
the fair market value of such REO Property, such valuation to be conducted by an
appraiser mutually agreed upon by the related Terminator and the Securities
Administrator, in their reasonable discretion), (ii) in the case of (x) a Loan,
accrued interest on such Principal Balance at the applicable Net Mortgage Rate
from the date interest was last paid by the related Mortgagor or the date an
Advance by the applicable Servicer or the Master Servicer, which payment or
Advance had as of the date of purchase been distributed pursuant to Section 4.1
or 4.3, through the end of the calendar month in which the purchase is to be
effected (or, in the case of a Loan being purchased pursuant to Section 9.1,
through the end of the calendar month immediately preceding the 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 Net Mortgage Rate from the
date interest was last paid by the related Mortgagor or the date an Advance by
the applicable Servicer or 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

                                      -42-
<PAGE>

Proceeds, Liquidation Proceeds and Advances that as of the date of purchase had
been distributed as or to cover REO Imputed Interest in accordance with the
applicable Servicing Agreement, (iii) any unreimbursed Servicing Advances and
Advances (including Nonrecoverable Advances) and any unpaid Servicing Fees or
Master Servicing Fees allocable to such Loan or REO Property and (iv) in the
case of a Loan required to be purchased pursuant to Section 2.3, expenses
reasonably incurred or to be incurred by the Master Servicer, the Servicers, the
Trustee or the Securities Administrator in respect of the breach or defect
giving rise to a Purchase Obligation and any costs and damages incurred by the
Trust Fund in connection with any violation by any such Mortgage Loan of any
predatory or abusive lending law.

         RATE CHANGE DATE: With respect to a REMIC II Regular Interest
Component, the first month in which the pass-through rate for such component is
equal to 0.00%.

         RATING AGENCY: Initially, each of S&P and Moody's; thereafter, each
nationally recognized statistical rating organization that has rated the
Certificates at the request of the Depositor, or their respective successors in
interest.

         RATINGS: As of any date of determination, the ratings, if any, of the
Certificates as assigned by each Rating Agency.

         REALIZED LOSS: For any Distribution Date and any Loan which became a
Liquidated Loan during the related Prepayment Period, the sum of (i) the
Principal Balance of such Loan remaining outstanding (after all recoveries of
principal have been applied thereto) and the principal portion of Advances which
have been reimbursed with respect to such Loan, and (ii) the accrued interest on
such Loan remaining unpaid and the interest portion of Advances which have been
reimbursed from Liquidation Proceeds with respect to such Loan. The amounts
described in clause (i) shall be the principal portion of Realized Losses and
the amounts described in clause (ii) shall be the interest portion of Realized
Losses. For any Distribution Date and any Loan which is not a Liquidated Loan,
the amount of any Bankruptcy Loss incurred with respect to such Loan as of the
related Due Date shall be treated as a Realized Loss.

         RECORD DATE: With respect to each Distribution Date and each Class of
Certificates, other than the Class I-A-1 Certificates and the Group II Senior
Certificates and Group II Mezzanine Certificates, the last Business Day of the
month immediately preceding the month of the related Distribution Date. With
respect to the Class I-A-1, the Group II Senior Certificates and Group II
Mezzanine Certificates, the Business Day preceding the related Distribution
Date.

         REGULAR INTEREST CERTIFICATES: The Certificates, other than the Class R
Certificate.

         REIMBURSEMENT AMOUNT: will be the aggregate of any payments made with
respect to the Class I-A-5 Certificates and Class I-A-6 Certificates by Ambac
under the Policy to the extent not previously reimbursed, plus interest on that
amount at the Late Payment Rate set forth in the Policy.

         RELIEF ACT: The Servicemembers Civil Relief Act, as amended, or similar
state laws.

         RELIEF ACT INTEREST SHORTFALL: With respect to any Distribution Date
and a Loan, the reduction in the amount of interest collectible on such Loan for
the most recently ended calendar

                                      -43-
<PAGE>

month immediately preceding such Distribution Date 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, with respect to which a REMIC
election is to be made, consisting of: (i) the Group I Loans (exclusive of
payments of principal and interest due on or before the Cut-off Date, if any,
received by the Master Servicer which shall not constitute an asset of the Trust
Fund) as from time to time are subject to this Agreement and all payments under
and proceeds of such Loans (exclusive of any Prepayment Charges and late payment
fees received on such Loans), together with all documents included in the
related Mortgage File, subject to Section 2.1; (ii) such funds or assets as from
time to time are deposited in the related Distribution Account in respect of a
Loan and belonging to the Trust Fund; (iii) any REO Property in respect of a
Group I Loan; (iv) the primary hazard insurance policies, if any, the primary
insurance policies, if any, and all other insurance policies with respect to the
Loans; (v) the Policy; and (v) the Depositor's interest in respect of the
representations and warranties made by the Seller in the Mortgage Loan Purchase
Agreement as assigned to the Trustee pursuant to Section 2.1 hereof. REMIC I
specifically excludes the Group I Reserve Fund and the Class I-A-1 Cap Contract.

         REMIC I REGULAR INTEREST LTI-1: 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 LTI-1 shall accrue
interest at the related Uncertificated REMIC I 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 I REGULAR INTEREST LTI-IO-1: 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 LTI-IO-1 shall accrue
interest at the related Uncertificated REMIC I 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 I REGULAR INTEREST LTI-IO-2: 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 LTI-IO-2 shall accrue
interest at the related Uncertificated REMIC I 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 I REGULAR INTEREST LTI-IO-3: 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 LTI-IO-3 shall accrue
interest at the related Uncertificated REMIC I 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.

                                      -44-
<PAGE>

         REMIC I REGULAR INTEREST LTI-IO-4: 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 LTI-IO-4 shall accrue
interest at the related Uncertificated REMIC I 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 I REGULAR INTEREST LTI-P: 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 LTI-P shall accrue
interest at the related Uncertificated REMIC I 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 I REGULAR INTERESTS: REMIC I Regular Interest LTI-1, REMIC I
Regular Interest LTI-IO-1, REMIC I Regular Interest LTI-IO-2, REMIC I Regular
Interest LTI-IO-3, REMIC I Regular Interest LTI-IO-4 and REMIC I Regular
Interest LTI-P.

         REMIC II: The segregated pool of assets, with respect to which a REMIC
election is to be made, consisting of: (i) the Group II Loans (exclusive of
payments of principal and interest due on or before the Cut-off Date, if any,
received by the Master Servicer which shall not constitute an asset of the Trust
Fund) as from time to time are subject to this Agreement and all payments under
and proceeds of the Group II Loans (exclusive of any Prepayment Charges and late
payment fees received on the Group II Loans), together with all documents
included in the related Mortgage File, subject to Section 2.1; (ii) such funds
or assets as from time to time are deposited in the related Distribution Account
in respect of a Group II Loan and belonging to the Trust Fund; (iii) any REO
Property in respect of a Group II Loan; (iv) the primary hazard insurance
policies, if any, the primary insurance policies, if any, and all other
insurance policies with respect to the Loans and (v) the Depositor's interest in
respect of the representations and warranties made by the Seller in the Mortgage
Loan Purchase Agreement as assigned to the Trustee pursuant to Section 2.1
hereof. REMIC II specifically excludes the Group II Reserve Fund and the Class
II-AR-1 Cap Contract, Class II-AR-2 Cap Contract, Class II-MR-1 Cap Contract,
Class II-MR-2 Cap Contract and Class II-MR-3 Cap Contract.

         REMIC II REGULAR INTEREST LTII-1: 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 LTII-1 shall accrue
interest at the related Uncertificated REMIC II 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 II REGULAR INTEREST LTII-2: 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 LTII-2 shall accrue
interest at the related Uncertificated REMIC II 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.

                                      -45-
<PAGE>

         REMIC II REGULAR INTEREST LTII-P: 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 LTII-P shall accrue
interest at the related Uncertificated REMIC II 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 II REGULAR INTERESTS: REMIC II Regular Interest LTII-1, REMIC II
Regular Interest LTII-2 and REMIC II Regular Interest LTII-P.

         REMIC III: The pool of assets consisting of the REMIC I Regular
Interests and the REMIC II Regular Interests and all payments of principal or
interest on or with respect to the REMIC I Regular Interests and the REMIC II
Regular Interests after the Cut-Off Date.

         REMIC III GROUP I REGULAR INTERESTS: Regular Interest LTIII-1AA, REMIC
III Regular Interest LTIII-1A1, REMIC III Regular Interest LTIII-1A2, REMIC III
Regular Interest LTIII-1A3, REMIC III Regular Interest LTIII-1A4, REMIC III
Regular Interest LTIII-1A5, REMIC III Regular Interest LTIII-1A6, REMIC III
Regular Interest LTIII-1A7, REMIC III Regular Interest LTIII-1M1, REMIC III
Regular Interest LTIII-1M2, REMIC III Regular Interest LTIII-1M3, REMIC III
Regular Interest LTIII-1ZZ, REMIC III Regular Interest LTIII-1P, REMIC III
Regular Interest LTIII-IO-A and REMIC III Regular Interest LTIII-IO-B.

         REMIC III GROUP I INTEREST LOSS ALLOCATION AMOUNT: With respect to any
Distribution Date, an amount equal to (a) the product of (i) the aggregate
Stated Principal Balance of the Group I Loans and related REO Properties then
outstanding and (ii) the Uncertificated REMIC III Pass-Through Rate for REMIC
III Regular Interest LTIII-1AA minus the Group I Marker Rate, divided by (b) 12.

         REMIC III GROUP I OVERCOLLATERALIZATION AMOUNT: With respect to any
date of determination, (i) 1% of the aggregate Uncertificated Principal Balances
of the REMIC III Group I Regular Interests minus (ii) the aggregate of the
Uncertificated Principal Balances of REMIC III Regular Interest LTIII-1A1, REMIC
III Regular Interest LTIII-1A2, REMIC III Regular Interest LTIII-1A3, REMIC III
Regular Interest LTIII-1A4, REMIC III Regular Interest LTIII-1A5, REMIC III
Regular Interest LTIII-1A6, REMIC III Regular Interest LTIII-1A7, REMIC III
Regular Interest LTIII-1M1, REMIC III Regular Interest LTIII-1M2, REMIC III
Regular Interest LTIII-1M3 and REMIC III Regular Interest LTII-1P, in each case
as of such date of determination.

         REMIC III GROUP I OVERCOLLATERALIZATION TARGET AMOUNT: 1% of the Group
I Required Overcollateralization Amount.

         REMIC III GROUP I PRINCIPAL LOSS ALLOCATION AMOUNT: With respect to any
Distribution Date, an amount equal to (a) the product of (i) the aggregate
Stated Principal Balance of the Group I Loans and related REO Properties then
outstanding and (ii) 1 minus a fraction, the numerator of which is two times the
aggregate of the Uncertificated Principal Balances of REMIC III Regular Interest
LTIII-1A1, REMIC III Regular Interest LTIII-1A2, REMIC III Regular Interest
LTIII-1A3, REMIC III Regular Interest LTIII-1A4, REMIC III Regular Interest
LTIII-1A5, REMIC III Regular Interest LTIII-1A6, REMIC III Regular Interest
LTIII-1A7,

                                      -46-
<PAGE>

REMIC III Regular Interest LTIII-1M1, REMIC III Regular Interest LTIII-1M2,
REMIC III Regular Interest LTIII-1M3 and REMIC III Regular Interest LTIII-1ZZ.

         REMIC III GROUP I REGULAR INTEREST LTIII-1ZZ MAXIMUM INTEREST DEFERRAL
AMOUNT: With respect to any Distribution Date, the excess of (i) accrued
interest at the Uncertificated REMIC III Pass-Through Rate applicable to REMIC
III Regular Interest LTIII-1ZZ for such Distribution Date on a balance equal to
the Uncertificated Principal Balance of REMIC III Regular Interest LTIII-1ZZ
minus the REMIC III Group I Overcollateralization Amount, in each case for such
Distribution Date, over (ii) Uncertificated Accrued Interest on REMIC III
Regular Interest LTIII-1A1, REMIC III Regular Interest LTIII-1A2, REMIC III
Regular Interest LTIII-1A3, REMIC III Regular Interest LTIII-1A4, REMIC III
Regular Interest LTIII-1A5, REMIC III Regular Interest LTIII-1A6, REMIC III
Regular Interest LTIII-1A7, REMIC III Regular Interest LTIII-1M1, REMIC III
Regular Interest LTIII-1M2 and REMIC III Regular Interest LTIII-1M3 for such
Distribution Date, with the rate on each such REMIC III Regular Interest subject
to a cap equal to the related Pass-Through Rate for the Corresponding
Certificate.

         REMIC III GROUP II REGULAR INTERESTS: REMIC III Regular Interest
LTIII-2AA, REMIC III Regular Interest LTIII-2AR1, REMIC III Regular Interest
LTIII-2AR2, REMIC III Regular Interest LTIII-2MR1, REMIC III Regular Interest
LTIII-2MR2, REMIC III Regular Interest LTIII-2MR3, REMIC III Regular Interest
LTIII-2ZZ, REMIC III Regular Interest LTIII-2P, REMIC III Regular Interest
LTIII-2SUB1, REMIC III Regular Interest LTIII-2GRP1, REMIC III Regular Interest
LTIII-2SUB2, REMIC III Regular Interest LTIII-2GRP2 and REMIC III Regular
Interest LTIII-2XX.

         REMIC III GROUP II INTEREST LOSS ALLOCATION AMOUNT: With respect to any
Distribution Date, an amount equal to (a) the product of (i) the aggregate
Stated Principal Balance of the Group II Loans and related REO Properties then
outstanding and (ii) the Uncertificated REMIC III Pass-Through Rate for REMIC
III Regular Interest LTIII-2AA minus the Group II Marker Rate, divided by (b)
12.

         REMIC III GROUP II MARKER ALLOCATION PERCENTAGE: 50% of any amount
payable or loss attributable from the Group II Loans, which shall be allocated
to REMIC III Regular Interest LTIII-2AA, REMIC III Regular Interest LTIII-2AR1,
REMIC III Regular Interest LTIII-2AR2, REMIC III Regular Interest LTIII-2MR1,
REMIC III Regular Interest LTIII-2MR2, REMIC III Regular Interest LTIII-2MR3,
REMIC III Regular Interest LTIII-2ZZ and REMIC III Regular Interest LTIII-2P

         REMIC III GROUP II OVERCOLLATERALIZATION AMOUNT: With respect to any
date of determination, (i) 0.50% of the aggregate Uncertificated Principal
Balances of the REMIC III Group II Regular Interests minus (ii) the aggregate of
the Uncertificated Principal Balances of REMIC III Regular Interest LTIII-2AR1,
REMIC III Regular Interest LTIII-2AR2, REMIC III Regular Interest LTIII-2MR1,
REMIC III Regular Interest LTIII-2MR2, REMIC III Regular Interest LTIII-2MR3 and
REMIC III Regular Interest LTIII-2P, in each case as of such date of
determination.

         REMIC III GROUP II OVERCOLLATERALIZATION TARGET AMOUNT: 0.50% of the
Group II Required Overcollateralization Amount.

                                      -47-
<PAGE>

         REMIC III GROUP II PRINCIPAL LOSS ALLOCATION AMOUNT: With respect to
any Distribution Date, an amount equal to (a) the product of (i) the aggregate
Stated Principal Balance of the Group II Loans and related REO Properties then
outstanding and (ii) 1 minus a fraction, the numerator of which is two times the
aggregate of the Uncertificated Principal Balances of REMIC III Regular Interest
LTIII-2AR1, REMIC III Regular Interest LTIII-2AR2, REMIC III Regular Interest
LTIII-2MR1, Regular Interest LTIII-2MR2, Regular Interest LTIII-2MR3 and REMIC
III Regular Interest LTIII-2ZZ.

         REMIC III GROUP II REGULAR INTEREST LTIII-2ZZ MAXIMUM INTEREST DEFERRAL
AMOUNT: With respect to any Distribution Date, the excess of (i) accrued
interest at the Uncertificated REMIC III Pass-Through Rate applicable to REMIC
III Regular Interest LTIII-2ZZ for such Distribution Date on a balance equal to
the Uncertificated Principal Balance of REMIC III Regular Interest LTIII-2ZZ
minus the REMIC III Group II Overcollateralization Amount, in each case for such
Distribution Date, over (ii) Uncertificated Accrued Interest on REMIC III
Regular Interest LTIII-2AR1, REMIC III Regular Interest LTIII-2AR2, REMIC III
Regular Interest LTIII-2MR1, REMIC III Regular Interest LTIII-2MR2 and REMIC III
Regular Interest LTIII-2MR3 for such Distribution Date, with the rate on each
such REMIC III Regular Interest subject to a cap equal to the related
Pass-Through Rate for the Corresponding Certificate.

         REMIC III SUB WAC ALLOCATION PERCENTAGE: 50% of any amount payable from
or loss attributable to the Group II Loans, which shall be allocated to REMIC
III Regular Interest LTIII-2SUB1, REMIC III Regular Interest LTIII-2GRP1, REMIC
III Regular Interest LTIII-2SUB2, REMIC III Regular Interest LTIII-2GRP2 and
REMIC III Regular Interest LTIII-2XX.

         REMIC III SUBORDINATED BALANCE RATIO: The ratio among the
Uncertificated Principal Balances of each REMIC III Regular Interest ending with
the designation "SUB,", equal to the ratio among, with respect to each such
REMIC III Regular Interest, the excess of (x) the aggregate Stated Principal
Balance of the Group II Loans over (y) the current Certificate Principal Balance
of Certificates.

         REMIC III REGULAR INTEREST: Any one 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 Uncertificated REMIC III Pass-Through Rate in effect
from time to time, and shall be entitled to distributions of principal (other
than REMIC III Regular Interest LTIII-IO-A and REMIC III Regular Interest
LTIII-IO-B), 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 IV: The pool of assets consisting of the REMIC III Regular
Interests and all payments of principal or interest on or with respect to the
REMIC III Regular Interests after the Cut Off Date.

         REMIC PROVISIONS: Provisions of the United States federal income tax
law relating to real estate mortgage investment conduits, which appear at
Section 860A through 860G of the Code, and related 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.

                                      -48-
<PAGE>

         REMIC REGULAR INTEREST: A REMIC I Regular Interest, REMIC II Regular
Interest, REMIC III Regular Interest or a Regular Interest Certificate.

         REMITTANCE REPORT: A report by the Securities Administrator pursuant to
Section 4.6.

         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 Scheduled Principal Balance
of such REO Property (or, in the case of the first such calendar month, of the
related Loan, if appropriate) as of the close of business on the Distribution
Date in such calendar month.

         REO PROPERTY: A Group I REO Property or Group II REO Property.

         REQUIRED OVERCOLLATERALIZATION AMOUNT: The Group I Required
Overcollateralization Amount or the Group II Required Overcollateralization
Amount.

         REQUIRED OVERCOLLATERALIZATION PERCENTAGE: For any Distribution Date
and a Loan Group, a percentage equal to (a) the related Required
Overcollateralization Amount divided by (b) the aggregate Principal Balance of
the Loans in the related Loan Group 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 after reduction for
Realized Losses on the Loans in the related Loan Group incurred during the
related Prepayment Period).

         RESIDUAL CERTIFICATE: The Class R Certificate, which is being issued in
a single class. Components R-1, R-2, R-3 and R-4 of the Class R Certificate are
hereby each designated the sole Class of "residual interests" in REMIC I, REMIC
II, REMIC III and REMIC IV, respectively, for purposes of Section 860G(a)(2) of
the Code.

         RESERVE FUND: The Group I Reserve Fund or the Group II Reserve Fund, as
applicable.

         RESERVE INTEREST RATE: The rate per annum that the Securities
Administrator determines to be either (i) the arithmetic mean of the one-month
U.S. dollar lending rates which New York City banks selected by the Securities
Administrator are quoting on the relevant LIBOR Determination Date to the
principal London offices of leading banks in the London interbank market or (ii)
in the event that the Securities Administrator can determine no such arithmetic
mean, the lowest one-month U.S. dollar lending rate which New York City banks
selected by the Securities Administrator are quoting on such Interest
Determination Date to leading European banks.

         RESPONSIBLE OFFICER: When used with respect to the Trustee, any officer
in the corporate trust department or similar group of the Trustee with direct
responsibility for the administration of this Agreement and also, with respect
to a particular corporate trust matter, any other officer to whom such matter is
referred because of his or her knowledge of and familiarity with the particular
subject. When used with respect to the Master Servicer or the Securities
Administrator,

                                      -49-
<PAGE>

the Chairman or Vice-Chairman of the Board of Directors or Trustees, the
Chairman or Vice-Chairman of the Executive or Standing Committee of the Board of
Directors or Trustees, the President, the Chairman of the Committee on Trust
Matters, any Vice-President, any Assistant Vice-President, the Secretary, any
Assistant Secretary, the Treasurer, any Assistant Treasurer, the Cashier, any
Assistant Cashier, any Trust Officer or Assistant Trust Officer, the Controller,
any Assistant Controller or any other officer customarily performing functions
similar to those performed by any of the above-designated officers and in each
case having direct responsibility for the administration of this Agreement, and
also, with respect to a particular matter, any other officer to whom such matter
is referred because of such officer's knowledge of and familiarity with the
particular subject. When used with respect to the Depositor or any other Person,
the Chairman or Vice-Chairman of the Board of Directors, the Chairman or
Vice-Chairman of any executive committee of the Board of Directors, the
President, any Vice-President, the Secretary, any Assistant Secretary, the
Treasurer, any Assistant Treasurer, or any other officer of the Depositor
customarily performing functions similar to those performed by any of the
above-designated officers and also, with respect to a particular matter, any
other officer 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. provided, that at any time it is a Rating Agency.

         SCHEDULED PRINCIPAL BALANCE: With respect to any Loan and a Due Date,
the unpaid principal balance of such Loan as specified in the amortization
schedule (before any adjustment to such schedule by reason of bankruptcy or
similar proceeding or any moratorium or similar waiver or grace period) for such
Due Date, after giving effect to any previously applied Curtailments, the
payment of principal on such Due Date and any reduction of the principal balance
of such Loan by a bankruptcy court, irrespective of any delinquency in payment
by the related Mortgagor.

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

         SECURITIES ADMINISTRATOR: As of the Closing Date, Wells Fargo Bank,
N.A. and thereafter, its respective successors in interest who meet the
qualifications of this Agreement. The Securities Administrator and the Master
Servicer shall at all times be the same Person.

         SELLER: DB Structured Products, Inc., or its successor in interest, in
its capacity as seller under the Mortgage Loan Purchase Agreement and in its
capacity as assignor under the Assignment Agreements.

         SENIOR CERTIFICATES: The Class A Certificates.

         SENIOR INTEREST DISTRIBUTION AMOUNT: With respect to any Distribution
Date and a Loan Group, an amount equal to the sum of (i) the Interest
Distribution Amount for such Distribution Date for the related Senior
Certificates and (ii) the Interest Carry Forward Amount, if any, for such
Distribution Date for the related Senior Certificates.

         SERVICER: M&T or Greenpoint, as applicable, or any successor appointed
under the applicable Servicing Agreement.

                                      -50-
<PAGE>

         SERVICER CREDIT RISK MANAGEMENT AGREEMENT: As defined in Section 3.1.

         SERVICER REMITTANCE DATE: With respect to each Distribution Date shall
mean (i) with respect to M&T, 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 preceding such 18th day and (ii) with respect to
Greenpoint, 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.

         SERVICING ADVANCES: The customary reasonable and necessary
"out-of-pocket" costs and expenses incurred by the applicable Servicer in
connection with a default, delinquency or other unanticipated event by the
applicable 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 Loan and (iii) the management
(including reasonable fees in connection therewith) and liquidation of any REO
Property. No Servicer shall be required to make any Servicing Advance in respect
of a Loan or REO Property that, in the good faith business judgment of such
Servicer, would not be ultimately recoverable from related Insurance Proceeds or
Liquidation Proceeds on such Loan or REO Property as provided herein.

         SERVICING AGREEMENT: The M&T Servicing Agreement or the Greenpoint
Servicing Agreement.

         SERVICING FEE: With respect to each Loan and for any Distribution Date,
an amount equal to one twelfth of the product of the related Servicing Fee Rate
multiplied by the Scheduled Principal Balance of such Loan as of the Due Date in
the month preceding the month of such Distribution Date. The Servicing Fee is
payable solely from collections of interest on the Loans or as otherwise
provided in the related Servicing Agreement.

         SERVICING FEE RATE: With respect to each Group I Loan, 0.25% per annum.
With respect to each Group II Loan (x) prior to the first Adjustment Date on
such Loan, 0.25% per annum and (y) thereafter, 0.375% per annum.

         SERVICING OFFICER: Any individual involved in, or responsible for, the
administration and servicing of the Loans whose name and specimen signature
appear on a list of servicing officers furnished to the Trustee, the Depositor
and the Securities Administrator on the Closing Date by each Servicer and the
Master Servicer, as such lists may from time to time be amended.

         STARTUP DAY: With respect to each REMIC, the day designated as such
pursuant to Section 10.1(b) hereof.

         SUBSEQUENT RECOVERIES: With respect to any Distribution Date and a Loan
Group will be amounts received during the related Prepayment Period by the
related Servicer specifically related to a defaulted Loan or disposition of an
REO Property prior to the related Prepayment Period that resulted in a Realized
Loss, after the liquidation or disposition of such defaulted Loan.

                                      -51-
<PAGE>

         SUBSTITUTE LOAN: A mortgage loan substituted for a Deleted 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 Loan as of the Due Date in the calendar month during which the
substitution occurs, (ii) have a Mortgage Interest Rate not less than (and not
more than one percentage point in excess of) the Mortgage Interest Rate of the
Deleted Loan, (iii) if the mortgage loan is an Adjustable Rate Loan, have a
Maximum Mortgage Interest Rate not less than the Maximum Mortgage Interest Rate
on the Deleted Loan, (iv) if the mortgage loan is an Adjustable Rate Loan, have
a Minimum Mortgage Interest Rate not less than the Minimum Mortgage Interest
Rate of the Deleted Loan, (v) if the mortgage loan is an Adjustable Rate Loan,
have a Gross Margin equal to the Gross Margin of the Deleted Loan, (vi) if the
mortgage loan is an Adjustable Rate Loan, have a next Adjustment Date not more
than two months later than the next Adjustment Date on the Deleted Loan, (vii)
have a remaining term to maturity not greater than (and not more than one year
less than) that of the Deleted Loan, (viii) have the same Due Date as the Due
Date on the Deleted Loan, (ix) have a Loan-to-Value Ratio as of the date of
substitution equal to or lower than the Loan-to-Value Ratio of the Deleted Loan
as of such date, (x) have a risk grading at least equal to the risk grading
assigned on the Deleted Loan, (xi) is a "qualified mortgage" as defined in the
REMIC Provisions and (xii) conform to each representation and warranty set forth
in Section 6 of the Mortgage Loan Purchase Agreement applicable to the Deleted
Loan. In the event that one or more mortgage loans are substituted for one or
more Deleted Loans, the amounts described in clause (i) hereof shall be
determined on the basis of aggregate principal balances, the Mortgage Interest
Rates described in clause (ii) hereof shall be determined on the basis of
weighted average Mortgage Interest Rates, the terms described in clause (vii)
hereof shall be determined on the basis of weighted average remaining term to
maturity, the Loan-to-Value Ratios described in clause (ix) hereof shall be
satisfied as to each such mortgage loan, the risk gradings described in clause
(x) 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 Substitute Loan or
in the aggregate, as the case may be. In the event that the Deleted Loan is a
Discount Loan, the Substitute Loan(s) shall be deemed to be a Discount Loan(s)
regardless of the Net Mortgage Rate thereof.

         TAX MATTERS PERSON: The Holder of the Class R Certificates issued
hereunder or any Permitted Transferee of such Class R Certificateholder shall be
the initial "tax matters person" for REMIC I, REMIC II, REMIC III and REMIC IV
within the meaning of Section 6231(a)(7) of the Code. For tax years commencing
after any transfer of the Class R Certificate, the holder of the greatest
Percentage Interest in the Class R Certificate at year end shall be designated
as the Tax Matters Person with respect to that year. If the Tax Matters Person
becomes a Disqualified Organization, the last preceding Holder of such
Authorized Denomination of the Class R Certificate that is not a Disqualified
Organization shall be Tax Matters Person pursuant to Section 5.3(e). If any
Person is appointed as tax matters person by the Internal Revenue Service
pursuant to the Code, such Person shall be Tax Matters Person.

         TERMINATION PRICE:  As defined in Section 9.1.

         TERMINATOR:  As defined in Section 9.1.

                                      -52-
<PAGE>

         TRANSFER: Any direct or indirect transfer, sale, pledge or other
disposition of, or directly or indirectly transferring, selling or pledging, any
Ownership Interest in a Class CE Certificate, Class P Certificate or Residual
Certificate.

         TRANSFEREE: Any Person who is acquiring by Transfer any Ownership
Interest in a Class CE Certificate, Class P Certificate or Residual Certificate.

         TRUST FUND: Collectively, all of the assets of REMIC I, REMIC II, REMIC
III and REMIC IV, and the Reserve Funds and any amounts on deposit therein and
any proceeds thereof, the Prepayment Charges and the Cap Contracts.

         TRUSTEE: HSBC Bank USA, a New York banking corporation, or its
successor in interest, or any successor trustee appointed as herein provided.

         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, as applicable, of such
REMIC Regular Interest. In each case, Uncertificated Accrued Interest will be
reduced by any Prepayment Interest Shortfalls, Curtailment Shortfalls and
shortfalls resulting from application of the Relief Act (allocated to such REMIC
Regular Interests as set forth in Sections 1.2 and 4.9).

         UNCERTIFICATED NOTIONAL AMOUNT: With respect to REMIC III Regular
Interest LTIII-IO-A and (i) each Distribution Date from and including the 1st
Distribution to and including the 6th Distribution Date, the aggregate
Uncertificated Principal Balances of REMIC I Regular Interest LTI-IO-1 through
REMIC I Regular Interest LTI-IO-4, (ii) each Distribution Date from and
including the 7th Distribution to and including the 18th Distribution Date, the
aggregate Uncertificated Principal Balances of REMIC I Regular Interest LTI-IO-2
through REMIC I Regular Interest LTI-IO-4, (iii) each Distribution Date from and
including the 19th Distribution Date to and including the 22nd Distribution
Date, the aggregate Uncertificated Principal Balances of REMIC I Regular
Interest LTI-IO-3 and REMIC I Regular Interest LTI-IO-4 and (iv) each
Distribution Date from and including the 23rd Distribution Date to and including
the 24th Distribution Date, the aggregate Uncertificated Principal Balance of
REMIC I Regular Interest LTI-IO-4, and (v) each Distribution Date thereafter,
$0.

         UNCERTIFICATED PRINCIPAL BALANCE: With respect to each REMIC Regular
Interest (other than REMIC III Regular Interest LTIII-IO-A and REMIC III Regular
Interest LTIII-IO-B) the principal amount of such REMIC Regular Interest
outstanding as of any date of determination. As of the Closing Date, the
Uncertificated Principal Balance of each 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 REMIC Regular Interest shall be reduced by all
distributions of principal made on such REMIC Regular Interest on such
Distribution Date pursuant to Section 4.9 and, if and to the extent necessary
and appropriate, shall be further reduced on such Distribution Date by Realized
Losses as provided in Section 4.2. The Uncertificated Principal Balance of each
REMIC Regular Interest shall never be less than zero. REMIC III Regular Interest
LTIII-IO-A and REMIC III Regular Interest LTIII-IO-B will not have
Uncertificated Principal Balances.

                                      -53-
<PAGE>

         UNCERTIFICATED REMIC I PASS-THROUGH RATE: A per annum rate equal to the
average of the Net Mortgage Rates of the Group I Loans as of the first day of
the related Due Period, weighted on the basis of the Stated Principal Balances
as of the first day of the related Due Period.

         UNCERTIFICATED REMIC II PASS-THROUGH RATE: A per annum rate equal to
the average of the Net Mortgage Rates of the Group II Loans as of the first day
of the related Due Period, weighted on the basis of the Stated Principal
Balances as of the first day of the related Due Period.

         UNCERTIFICATED REMIC III PASS-THROUGH RATE: With respect to REMIC III
Regular Interest LTIII-1AA, REMIC III Regular Interest LTIII-1A1, REMIC III
Regular Interest LTIII-1A2, REMIC III Regular Interest LTIII-1A3, REMIC III
Regular Interest LTIII-1A4, REMIC III Regular Interest LTIII-1A5, REMIC III
Regular Interest LTIII-1A6, REMIC III Regular Interest LTIII-1A7, REMIC III
Regular Interest LTIII-1M1, REMIC III Regular Interest LTIII-1M2, REMIC III
Regular Interest LTIII-1M3 and REMIC III Regular Interest LTIII-1ZZ, a per annum
rate (but not less than zero) equal to the weighted average of: (x) with respect
to REMIC I Regular Interest LTI-1 and REMIC I Regular Interest LTI-P, the
Uncertificated REMIC I Pass-Through Rate for such REMIC I Regular Interest for
each such Distribution Date, and (y) with respect to REMIC I Regular Interest
LTI-IO-1 through REMIC I Regular Interest LTI-IO-4 for each Distribution Date
listed below, the weighted average of the rates listed below for each such REMIC
I Regular Interest listed below, weighted on the basis of the Uncertificated
Principal Balance of each such REMIC I Regular Interest:
<TABLE>
<CAPTION>

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

 DISTRIBUTION DATE      REMIC I REGULAR INTERESTS                              RATE
-------------------- -------------------------------- -------------------------------------------------------------
<S>                  <C>                              <C>
         1           LTI-IO-1 through LTI-IO-4        (a) Uncertificated  REMIC I Pass-Through Rate over (b) 4.50%
-------------------- -------------------------------- -------------------------------------------------------------
         2           LTI-IO-1 through LTI-IO-4        (a) Uncertificated  REMIC I Pass-Through Rate over (b) 4.50%
-------------------- -------------------------------- -------------------------------------------------------------
         3           LTI-IO-1 through LTI-IO-4        (a) Uncertificated  REMIC I Pass-Through Rate over (b) 4.50%
-------------------- -------------------------------- -------------------------------------------------------------
         4           LTI-IO-1 through LTI-IO-4        (a) Uncertificated  REMIC I Pass-Through Rate over (b) 4.50%
-------------------- -------------------------------- -------------------------------------------------------------
         5           LTI-IO-1 through LTI-IO-4        (a) Uncertificated  REMIC I Pass-Through Rate over (b) 4.50%
-------------------- -------------------------------- -------------------------------------------------------------
         6           LTI-IO-1 through LTI-IO-4        (a) Uncertificated  REMIC I Pass-Through Rate over (b) 4.50%
-------------------- -------------------------------- -------------------------------------------------------------
         7           LTI-IO-2 through LTI-IO-4        (a) Uncertificated  REMIC I Pass-Through Rate over (b) 4.50%
-------------------- -------------------------------- -------------------------------------------------------------
                     LTI-IO-1                         Uncertificated REMIC I Pass-Through Rate
-------------------- -------------------------------- -------------------------------------------------------------
         8           LTI-IO-2 through LTI-IO-4        (a) Uncertificated  REMIC I Pass-Through Rate over (b) 4.50%
-------------------- -------------------------------- -------------------------------------------------------------
                     LTI-IO-1                         Uncertificated REMIC I Pass-Through Rate
-------------------- -------------------------------- -------------------------------------------------------------
         9           LTI-IO-2 through LTI-IO-4        (a) Uncertificated  REMIC I Pass-Through Rate over (b) 4.50%
-------------------- -------------------------------- -------------------------------------------------------------
                     LTI-IO-1                         Uncertificated REMIC I Pass-Through Rate
-------------------- -------------------------------- -------------------------------------------------------------
        10           LTI-IO-2 through LTI-IO-4        (a) Uncertificated  REMIC I Pass-Through Rate over (b) 4.50%
-------------------- -------------------------------- -------------------------------------------------------------
                     LTI-IO-1                         Uncertificated REMIC I Pass-Through Rate
-------------------- -------------------------------- -------------------------------------------------------------
        11           LTI-IO-2 through LTI-IO-4        (a) Uncertificated  REMIC I Pass-Through Rate over (b) 4.50%
-------------------- -------------------------------- -------------------------------------------------------------
                     LTI-IO-1                         Uncertificated REMIC I Pass-Through Rate
-------------------- -------------------------------- -------------------------------------------------------------
        12           LTI-IO-2 through LTI-IO-4        (a) Uncertificated  REMIC I Pass-Through Rate over (b) 4.50%
-------------------- -------------------------------- -------------------------------------------------------------
                     LTI-IO-1                         Uncertificated REMIC I Pass-Through Rate
-------------------- -------------------------------- -------------------------------------------------------------
        13           LTI-IO-2 through LTI-IO-4        (a) Uncertificated  REMIC I Pass-Through Rate over (b) 3.50%
-------------------- -------------------------------- -------------------------------------------------------------
                     LTI-IO-1                         Uncertificated REMIC I Pass-Through Rate
-------------------- -------------------------------- -------------------------------------------------------------
        14           LTI-IO-2 through LTI-IO-4        (a) Uncertificated  REMIC I Pass-Through Rate over (b) 3.50%
-------------------- -------------------------------- -------------------------------------------------------------
                     LTI-IO-1                         Uncertificated REMIC I Pass-Through Rate
-------------------- -------------------------------- -------------------------------------------------------------
        15           LTI-IO-2 through LTI-IO-4        (a) Uncertificated  REMIC I Pass-Through Rate over (b) 3.50%
-------------------- -------------------------------- -------------------------------------------------------------
                     LTI-IO-1                         Uncertificated REMIC I Pass-Through Rate
-------------------- -------------------------------- -------------------------------------------------------------
        16           LTI-IO-2 through LTI-IO-4        (a) Uncertificated  REMIC I Pass-Through Rate over (b) 3.50%
-------------------- -------------------------------- -------------------------------------------------------------
                     LTI-IO-1                         Uncertificated REMIC I Pass-Through Rate
-------------------- -------------------------------- -------------------------------------------------------------
        17           LTI-IO-2 through LTI-IO-4        (a) Uncertificated  REMIC I Pass-Through Rate over (b) 3.50%
-------------------- -------------------------------- -------------------------------------------------------------
                     LTI-IO-1 and LTI-IO-2            Uncertificated REMIC I Pass-Through Rate
-------------------- -------------------------------- -------------------------------------------------------------
        18           LTI-IO-2 through LTI-IO-4        (a) Uncertificated  REMIC I Pass-Through Rate over (b) 3.50%
-------------------- -------------------------------- -------------------------------------------------------------
                     LTI-IO-1 and LTI-IO-2            Uncertificated REMIC I Pass-Through Rate
-------------------- -------------------------------- -------------------------------------------------------------
        19           LTI-IO-3 and LTI-IO-4            (a) Uncertificated  REMIC I Pass-Through Rate over (b) 3.50%
-------------------- -------------------------------- -------------------------------------------------------------
                     LTI-IO-1 and LTI-IO-2            Uncertificated REMIC I Pass-Through Rate
-------------------- -------------------------------- -------------------------------------------------------------
</TABLE>

                                      -54-
<PAGE>

<TABLE>
<CAPTION>

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

 DISTRIBUTION DATE      REMIC I REGULAR INTERESTS                              RATE
-------------------- -------------------------------- -------------------------------------------------------------
<S>                  <C>                              <C>
        20           LTI-IO-3 and LTI-IO-4            (a) Uncertificated  REMIC I Pass-Through Rate over (b) 3.50%
-------------------- -------------------------------- -------------------------------------------------------------
                     LTI-IO-1 and LTI-IO-2            Uncertificated REMIC I Pass-Through Rate
-------------------- -------------------------------- -------------------------------------------------------------
        21           LTI-IO-3 and LTI-IO-4            (a) Uncertificated  REMIC I Pass-Through Rate over (b) 3.50%
-------------------- -------------------------------- -------------------------------------------------------------
                     LTI-IO-1 and LTI-IO-2            Uncertificated REMIC I Pass-Through Rate
-------------------- -------------------------------- -------------------------------------------------------------
        22           LTI-IO-3 and LTI-IO-4            (a) Uncertificated  REMIC I Pass-Through Rate over (b) 3.50%
-------------------- -------------------------------- -------------------------------------------------------------
                     LTI-IO-1 and LTI-IO-2            Uncertificated REMIC I Pass-Through Rate
-------------------- -------------------------------- -------------------------------------------------------------
        23           LTI-IO-4                         (a) Uncertificated  REMIC I Pass-Through Rate over (b) 3.50%
-------------------- -------------------------------- -------------------------------------------------------------
                     LTI-IO-1, LTI-IO-2 and LTI-IO-3  Uncertificated REMIC I Pass-Through Rate
-------------------- -------------------------------- -------------------------------------------------------------
        24           LTI-IO-4                         (a) Uncertificated  REMIC I Pass-Through Rate over (b) 3.50%
-------------------- -------------------------------- -------------------------------------------------------------
                     LTI-IO-1, LTI-IO-2 and LTI-IO-3  Uncertificated REMIC I Pass-Through Rate
-------------------- -------------------------------- -------------------------------------------------------------
 25 and thereafter   LTI-IO-1,   LTI-IO-2,  LTI-IO-3  Uncertificated REMIC I Pass-Through Rate
                     and LTI-IO-4
-------------------- -------------------------------- -------------------------------------------------------------
</TABLE>

With resepect to REMIC III Regular Interest LTIII-1IO-A, (i) for the first
twelve distribution dates, 1.00% and (ii) thereafter, 0.00%. With respect to
REMIC III Regular Interest LTIII-1IO-B, (i) for the first twenty-four
distribution dates, 3.50% and (ii) thereafter, 0.00%.

With respect to REMIC III Regular Interest LTIII-2AA, REMIC III Regular Interest
LTIII-2AR1, REMIC III Regular Interest LTIII-2AR2, REMIC III Regular Interest
LTIII-2MR1, REMIC III Regular Interest LTIII-2MR2, REMIC III Regular Interest
LTIII-2MR3, REMIC III Regular Interest LTIII-2ZZ, REMIC III Regular Interest
LTIII-2P, REMIC III Regular Interest LTIII-2SUB1, REMIC III Regular Interest
LTIII-2SUB2 and REMIC III Regular Interest LTIII-2XX, the weighted average of
the Uncertificated REMIC III Pass-Through Rates on each REMIC III Regular
Interest, weighted on the basis of the Uncertificated Principal Balance of each
such REMIC II Regular Interest.

With respect to REMIC III Regular Interest LTIII-2GRP1, the weighted average of
the Uncertificated REMIC II Pass-Through Rate on REMIC II Regular Interest
LTII-1, weighted on the basis of the Uncertificated Principal Balance of such
REMIC II Regular Interest.

With respect to REMIC III Regular Interest LTIII-2GRP2, the weighted average of
the Uncertificated REMIC II Pass-Through Rate on REMIC II Regular Interest
LTII-2, weighted on the basis of the Uncertificated Principal Balance of such
REMIC II Regular Interest.

         UNCERTIFICATED REMIC REGULAR INTEREST: The REMIC I Regular Interests,
the REMIC II Regular Interests and the REMIC III Regular Interests.

         UNCOLLECTED INTEREST: With respect to any Distribution Date, the sum of
(i) the aggregate Prepayment Interest Shortfalls with respect to the Loans for
such Distribution Date and (ii) the aggregate Curtailment Shortfalls with
respect to the Loans for such Distribution Date.

         UNCOMPENSATED INTEREST SHORTFALL: For any Distribution Date, the
excess, if any, of (i) the sum of (a) the related Uncollected Interest for such
Distribution Date, and (b) any shortfall in interest collections for the Loans
in the calendar month immediately preceding such Distribution Date resulting
from a Relief Act Interest Shortfall over (ii) the aggregate Compensating
Interest

                                      -55-
<PAGE>

paid by the Servicers and the Master Servicer with respect to the Loans for such
Distribution Date, which excess shall be allocated to each Class of
Certificates, pro rata, according to the amount of interest accrued thereon in
reduction thereof.

         UNDERWRITER: Deutsche Bank Securities Inc.

         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 3.9.

         U.S. PERSON: A citizen or resident of the United States, a corporation
or partnership (including an 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 or any state thereof or the District of Columbia
(except, in the case of a partnership, to the extent provided in regulations) 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 such U.S. Persons have the authority to control all substantial decisions
of the trust. To the extent prescribed in regulations by the Secretary of the
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 1 of subchapter J of chapter 1 of the Code), and which was
treated as a U.S. Person on August 20, 1996 may elect to continue to be treated
as a U.S. Person notwithstanding the previous sentence.

         WELLS FARGO: Wells Fargo Bank, N.A., or any successor thereto.

Section 1.2       ALLOCATION OF CERTAIN INTEREST SHORTFALL.

         For purposes of calculating the Interest Distribution Amount for the
Group I Certificates for any Distribution Date, (1) the aggregate amount of any
Prepayment Interest Shortfalls and Curtailment Shortfalls with respect to the
Group I Loans, to the extent not covered by payment by the related Servicer
pursuant to the related Servicing Agreement or the Master Servicer pursuant to
Section 3.20, shall first reduce the related Net Monthly Excess Cashflow for
such Distribution Date, second, reduce the Interest Distribution Amount payable
to the Class I-CE Certificates, third, reduce the Interest Distribution Amount
payable to the Class I-M-3 Certificates, fourth, reduce the Interest
Distribution Amount payable to the Class I-M-2 Certificates, fifth, reduce the
Interest Distribution Amount payable to the Class I-M-1 Certificates and sixth,
reduce the Interest Distribution Amount payable to the Group I Senior
Certificates (on a pro rata basis based on their respective Senior Interest
Distribution Amounts before such reduction), in that order and (2) any Relief
Act Interest Shortfalls on the Group I Loans shall be allocated to the Group I
Certificates on a pro rata basis based on their respective Interest Distribution
Amount before such reduction.

         For purposes of calculating the Interest Distribution Amount for the
Group II Certificates for any Distribution Date, (1) the aggregate amount of any
Prepayment Interest Shortfalls and Curtailment Shortfalls with respect to the
Group II Loans, to the extent not covered by payment by the related Servicer
pursuant to the related Servicing Agreement or the Master Servicer pursuant to
Section 3.20, shall first reduce the related Net Monthly Excess Cashflow for
such Distribution Date, second, reduce the Interest Distribution Amount payable
to the Class II-CE

                                      -56-
<PAGE>

Certificates, third, reduce the Interest Distribution Amount payable to the
Class II-MR-3 Certificates, fourth, reduce the Interest Distribution Amount
payable to the Class II-MR-2 Certificates, fifth, reduce the Interest
Distribution Amount payable to the Class II-MR-1 Certificates and sixth, with
respect to Prepayment Interest Shortfalls and Curtailment Shortfalls on the
Group II-1 Loans, reduce the Interest Distribution Amount payable to the Class
II-AR-1 Certificates and with respect to Prepayment Interest Shortfalls and
Curtailment Shortfalls on the Group II-2 Loans, reduce the Interest Distribution
Amount payable to the Class II-AR-2 Certificates, in that order and (2) any
Relief Act Interest Shortfalls on the Group II-1 Loans shall be allocated to the
Class II-AR-1 Certificates and the Group II Mezzanine Certificates on a pro rata
basis based on their respective Interest Distribution Amount before such
reduction, and any Relief Act Interest Shortfalls on the Group II-2 Loans shall
be allocated to the Group II-AR-2 Certificates and the Group II Mezzanine
Certificates on a pro rata basis based on their respective Interest Distribution
Amount before such reduction.

         For purposes of calculating the amount of Uncertificated Accrued
Interest for the REMIC I Regular Interests for any Distribution Date, the
aggregate amount of any Unpaid Interest Shortfalls incurred in respect of the
Group I Loans for any Distribution Date shall be allocated first, to REMIC I
Regular Interest LTI-1 and REMIC I Regular Interest LTI-P, to the extent of one
month's interest at the then applicable respective Uncertificated REMIC I
Pass-Through Rate on the Uncertificated Principal Balance of each such REMIC I
Regular Interest; and then, to REMIC I Regular Interest LTI-IO-1, REMIC I
Regular Interest LTI-IO-2, REMIC I Regular Interest LTI-IO-3 and REMIC I Regular
Interest LTI-IO-4, in each case to the extent of one month's interest at the
then applicable respective Uncertificated REMIC I Pass-Through Rate on the
respective Uncertificated Notional Amount of each such REMIC I Regular Interest.

         For purposes of calculating the amount of Uncertificated Accrued
Interest for the REMIC II Regular Interests for any Distribution Date, the
aggregate amount of any Unpaid Interest Shortfalls incurred in respect of the
Group II Loans for any Distribution Date shall be allocated to REMIC II Regular
Interest LTII-1, REMIC II Regular Interest LTII-2 and REMIC II Regular Interest
LTII-P, to the extent of one month's interest at the then applicable respective
Uncertificated REMIC II Pass-Through Rate on the Uncertificated Principal
Balance of each such REMIC II Regular Interest.

         For purposes of calculating the amount of Uncertificated Accrued
Interest for the REMIC III Group I Regular Interests for any Distribution Date,
the aggregate amount of any Unpaid Interest Shortfalls incurred in respect of
the Group I Loans for any Distribution Date shall be allocated first, to
Uncertificated Accrued Interest payable to REMIC III Regular Interest LTIII-1-AA
and REMIC III Regular Interest LTIII-1 ZZ up to an aggregate amount equal to the
REMIC III Group I Interest Loss Allocation Amount, 98% and 2%, respectively, and
thereafter among REMIC III Regular Interest LTIII-1A1, REMIC III Regular
Interest LTIII-1A2, REMIC III Regular Interest LTIII-1A3, REMIC III Regular
Interest LTIII-1A4, REMIC III Regular Interest LTIII-1A5, REMIC III Regular
Interest LTIII-1A6, REMIC III Regular Interest LTIII-1A7, REMIC III Regular
Interest LTIII-1M1, REMIC III Regular Interest LTIII-1M2, REMIC III Regular
Interest LTIII-1M3 and REMIC III Regular Interest LTIII-1ZZ, pro rata based on,
and to the extent of, one month's interest at the then applicable respective
Uncertificated REMIC III Pass-Through Rate on the respective Uncertificated
Principal Balance of each such REMIC III Regular Interest.

                                      -57-
<PAGE>

         For purposes of calculating the amount of Uncertificated Accrued
Interest for the REMIC III Group II Regular Interests for any Distribution Date:

                  (A) The REMIC III Group II Marker Allocation Percentage of the
aggregate amount of any Unpaid Interest Shortfalls incurred in respect of the
Group II Loans for any Distribution Date shall be allocated first, to
Uncertificated Accrued Interest payable to REMIC III Regular Interest LTIII-2AA
and REMIC III Regular Interest LTIII-2ZZ up to an aggregate amount equal to the
REMIC III Group II Interest Loss Allocation Amount, 98% and 2%, respectively,
and thereafter among, REMIC III Regular Interest LTIII-2AR1, REMIC III Regular
Interest LTIII-2AR2, REMIC III Regular Interest LTIII-2MR1, REMIC III Regular
Interest LTIII-2MR2, REMIC III Regular Interest LTIII-2MR3, REMIC III Regular
Interest LTIII-2ZZ, pro rata based on, and to the extent of, one month's
interest at the then applicable respective Uncertificated REMIC III Pass-Through
Rate on the respective Uncertificated Principal Balance of each such REMIC III
Regular Interest; and

                  (B) The REMIC III Sub WAC Allocation Percentage of the
aggregate amount of any Unpaid Interest Shortfalls incurred in respect of the
Group II Loans for any Distribution Date shall be allocated to Uncertificated
Accrued Interest payable to REMIC III Regular Interest LTIII-2SUB1, REMIC III
Regular Interest LTIII-2GRP1, REMIC III Regular Interest LTIII-2SUB2, REMIC III
Regular Interest LTIII--2GRP2 and REMIC III Regular Interest LTIII-2XX, pro rata
based on, and to the extent of, one month's interest at the then applicable
respective Uncertificated REMIC III Pass-Through Rate on the respective
Uncertificated Principal Balance of each such REMIC III Regular Interest.

                                      -58-
<PAGE>

                                   ARTICLE II
                            CONVEYANCE OF TRUST FUND;
                        ORIGINAL ISSUANCE OF CERTIFICATES

         Section 2.1 CONVEYANCE OF TRUST FUND. The Depositor, concurrently with
the execution and delivery hereof, does hereby transfer, assign, set over and
otherwise convey to the Trustee, on behalf of the Trust, without recourse, for
the benefit of the Certificateholders all the right, title and interest of the
Depositor, including any security interest therein for the benefit of the
Depositor, in and to the Loans identified on the Loan Schedule, the rights of
the Depositor under the Mortgage Loan Purchase Agreement and the Assignment
Agreements (including, without limitation the right to enforce the obligations
of the other parties thereto thereunder), and all other assets included or to be
included in REMIC I and REMIC II. Such assignment includes all interest and
principal received by the Depositor or the applicable Servicer on or with
respect to the Loans (other than payments of principal and interest due on such
Loans on or before the Cut-Off Date). The Depositor herewith delivers to the
Trustee executed copies of the Mortgage Loan Purchase Agreement, the Servicing
Agreements and the Assignment Agreements.

                  In connection with such transfer and assignment, the Depositor
does hereby deliver to, and deposit with, the Custodian pursuant to the
Custodial Agreement the documents with respect to each Loan as described under
Section 2 of the Custodial Agreement (the "Loan Documents"). In connection with
such delivery and as further described in the Custodial Agreement, the Custodian
will be required to review such Loan Documents and deliver to the Trustee, the
Depositor, the Master Servicer and the Seller certifications (in the forms
attached to the Custodial Agreement) with respect to such review with exceptions
noted thereon. In addition, the Depositor under the Custodial Agreement will
have to cure certain defects with respect to the Loan Documents for the related
Loans after the delivery thereof by the Depositor to the Custodian as more
particularly set forth therein.

         Section 2.2 ACCEPTANCE BY TRUSTEE.

         The Trustee acknowledges receipt, subject to the provisions of Section
2.1 hereof and Section 2 of the Custodial Agreement, of the Loan Documents and
all other assets included in the definitions of "REMIC I" and "REMIC II" under
clauses (i), (iii), (iv) and (v) (to the extent of amounts deposited into the
Distribution Accounts) and declares that it holds (or the Custodian on its
behalf holds) and will hold such documents and the other documents delivered to
it constituting a Loan Document, and that it holds (or the Custodian on its
behalf holds) or will hold all such assets and such other assets included in the
definitions of "REMIC I" and "REMIC II" in trust for the exclusive use and
benefit of all present and future Certificateholders.

         Section 2.3 REPURCHASE OR SUBSTITUTION OF LOANS.

         (a) Upon discovery or receipt of notice of any materially defective
document in, or that a document is missing from, a Mortgage File or of a breach
by the Seller of any representation, warranty or covenant under the Mortgage
Loan Purchase Agreement in respect of any Loan that materially and adversely
affects the value of such Loan or the interest therein of the
Certificateholders, the Trustee shall promptly notify the Seller of such defect,
missing document or breach and request that the Seller deliver such missing
document, cure such defect

                                      -59-
<PAGE>

or breach within 60 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 obligations of the Seller under the
Mortgage Loan Purchase Agreement to repurchase such Loan from REMIC I or REMIC
II, as applicable at the Purchase Price within 90 days after the date on which
the Seller was notified of such missing document, defect or breach, if and to
the extent that the Seller is obligated to do so under the Mortgage Loan
Purchase Agreement. The Purchase Price for the repurchased Loan shall be
deposited in the related Distribution Account and the Trustee, upon receipt of
written certification from the Securities Administrator of such deposit and
receipt by the Custodian of a properly completed request for release for such
Loan in the form of EXHIBIT 3 to the Custodial Agreement, shall release or cause
the Custodian to release to the Seller the related Mortgage File and the Trustee
shall execute and deliver such instruments of transfer or assignment, in each
case without recourse, representation or warranty, as the Seller shall furnish
to it and as shall be necessary to vest in the Seller any 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 Loan as provided above, if
so provided in the Mortgage Loan Purchase Agreement, the Seller may cause such
Loan to be removed from REMIC I or REMIC II (in which case it shall become a
Deleted Loan) and substitute one or more Substitute Loans in the manner and
subject to the limitations set forth in Section 2.3(b). It is understood and
agreed that the obligation of the Seller to cure or to repurchase (or to
substitute for) any Loan as to which a document is missing, a material defect in
a constituent 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 and the Certificateholders.

                  In addition, should the Master Servicer become aware of or in
the event of its receipt of notice by a Responsible Officer of the Master
Servicer of the breach of the representation or covenant of the Seller set forth
in Section 5(x) of the Mortgage Loan Purchase Agreement which materially and
adversely affects the interests of a Holder of a Class P Certificate in any
Prepayment Charge, the Master Servicer shall promptly notify the Seller and the
Trustee of such breach. The Trustee shall enforce the obligations of the Seller
under the Mortgage Loan Purchase Agreement to remedy such breach to the extent
and in the manner set forth in the Mortgage Loan Purchase Agreement.

(b) Any substitution of Substitute Loans for Deleted Loans made pursuant to
Section 2.3(a) must be effected prior to the date which is two years after the
Startup Day for the REMIC I or REMIC II.

                  As to any Deleted Loan for which the Seller, substitutes a
Substitute Loan or Loans, such substitution shall be effected by the Seller
delivering to the Trustee or the Custodian on behalf of the Trustee, for such
Substitute 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 of the Custodial Agreement,
as applicable, together with an Officers' Certificate providing that each such
Substitute Loan satisfies the definition thereof and specifying the Substitution
Shortfall Amount (as described below), if any, in connection with such
substitution. The Custodian on behalf of the Trustee shall acknowledge receipt
of such Substitute Loan or Loans and, within ten Business Days thereafter,
review such documents and deliver to the Depositor, the Trustee and the Master
Servicer, with respect to such

                                      -60-
<PAGE>

Substitute Loan or Loans, an initial certification pursuant to the Custodial
Agreement, with any applicable exceptions noted thereon. Within one year of the
date of substitution, the Custodian on behalf of the Trustee shall deliver to
the Depositor, the Trustee and the Master Servicer a final certification
pursuant to the Custodial Agreement with respect to such Substitute Loan or
Loans, with any applicable exceptions noted thereon. Monthly Payments due with
respect to Substitute Loans in the month of substitution are not part of REMIC I
or REMIC II and shall be retained by the Seller. For the month of substitution,
distributions to Certificateholders shall reflect the Monthly Payment due on
such Deleted Loan on or before the Due Date in the month of substitution, and
the Seller shall thereafter be entitled to retain all amounts subsequently
received in respect of such Deleted Loan. The Depositor shall give or cause to
be given written notice to the Certificateholders that such substitution has
taken place, shall amend the Loan Schedule to reflect the removal of such
Deleted Loan from the terms of this Agreement and the substitution of the
Substitute Loan or Loans and shall deliver a copy of such amended Loan Schedule
to the Trustee and the Master Servicer. Upon such substitution, such Substitute
Loan or Loans shall constitute part of the Trust Fund and shall be subject in
all respects to the terms of this Agreement and the Mortgage Loan Purchase
Agreement including all applicable representations and warranties thereof
included herein or in the Mortgage Loan Purchase Agreement.

                  For any month in which the Seller substitutes one or more
Substitute Loans for one or more Deleted Loans, the Master Servicer shall
determine the amount (the "Substitution Shortfall Amount"), if any, by which the
aggregate Purchase Price of all such Deleted Loans exceeds the aggregate of, as
to each such Substitute Loan, the Scheduled Principal Balance thereof as of the
Due Date in the month of substitution, together with one month's interest on
such Scheduled Principal Balance at the applicable Net Mortgage Rate, plus all
outstanding Advances and Servicing Advances (including Nonrecoverable Advances)
related thereto. On the date of such substitution, the Seller shall deliver or
cause to be delivered to the Securities Administrator for deposit in the related
Distribution Account an amount equal to the Substitution Shortfall Amount, if
any, and the Trustee or the Custodian on behalf of the Trustee, upon receipt of
the related Substitute Loan or Loans and certification by the Securities
Administrator of such deposit and receipt by the Custodian of a properly
completed request for release for such Loan in the form of EXHIBIT 3 to the
Custodial Agreement, shall release to the Seller the related Mortgage File or
Files and the Trustee shall execute and deliver such instruments of transfer or
assignment, in each case without recourse, representation or warranty, as the
Seller shall deliver to it and as shall be necessary to vest therein any Deleted
Loan released pursuant hereto.

                  In addition, the Seller shall obtain at its own expense and
deliver to the Trustee an Opinion of Counsel to the effect that such
substitution will not cause (a) any federal tax to be imposed on any 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 REMIC to fail
to qualify as a REMIC at any time that any Certificate is outstanding.

         (c) Upon discovery by the Depositor, the Seller, the Master Servicer or
the Trustee that any 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 Seller shall repurchase or substitute one or more
Substitute Loans for the affected Loan within 90 days of the earlier of

                                      -61-
<PAGE>

discovery or receipt of such notice with respect to such affected Loan. Such
repurchase or substitution shall be made by (i) the Seller, if the affected
Loan's status as a non-qualified mortgage is or results from a breach of any
representation, warranty or covenant made by the Seller under the Mortgage Loan
Purchase Agreement or (ii) the Depositor, if the affected Loan's status as a
non-qualified mortgage does not result from a breach of representation or
warranty. Any such repurchase or substitution shall be made in the same manner
as set forth in Section 2.3(a). The Trustee shall reconvey to the Seller or the
Depositor the Loan to be released pursuant hereto in the same manner, and on the
same terms and conditions, as it would a Loan repurchased for breach of a
representation or warranty.

         (d) Within 90 days of 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 2.5 which
materially and adversely affects the interests of the Certificateholders in any
Loan or Prepayment Charge, the Master Servicer shall cure such breach in all
material respects.

         Section 2.4 AUTHENTICATION AND DELIVERY OF CERTIFICATES; DESIGNATION OF
CERTIFICATES AS REMIC REGULAR AND RESIDUAL INTERESTS.

         (a) The Trustee acknowledges the transfer to the extent provided herein
and assignment to it of the Trust Fund and, concurrently with such transfer and
assignment, has caused the Securities Administrator to execute and authenticate
and has delivered to or upon the order of the Depositor, in exchange for the
Trust Fund, Certificates evidencing the entire ownership of the Trust Fund.

         (b) This Agreement shall be construed so as to carry out the intention
of the parties that each of REMIC I, REMIC II, REMIC III and REMIC IV be treated
as a REMIC at all times prior to the date on which the Trust Fund is terminated.
The "regular interests" (within the meaning of Section 860G(a)(1) of the Code)
in REMIC IV shall consist of the Class A Certificates, the Class M Certificates,
the Class CE Certificates and the Class P Certificates. The "residual interest"
(within the meaning of Section 860G(a)(2) of the Code) in REMIC IV shall consist
of Component R-4. The "regular interests" (within the meaning of Section
860G(a)(1) of the Code) of REMIC III shall consist of the REMIC I Regular
Interests and REMIC II Regular Interests. The "residual interest" (within the
meaning of Section 860(G)(a)(2) of the Code) of REMIC III shall consist of
Component R-3. The "regular interests" (within the meaning of Section 860G(a)(1)
of the Code) of REMIC II shall consist of the REMIC II Regular Interests. The
"residual interest" (within the meaning of Section 860(G)(a)(2) of the Code) of
REMIC II shall consist of Component R-2. The "regular interests" (within the
meaning of Section 860G(a)(1) of the Code) of REMIC I shall consist of the REMIC
I Regular Interests. The "residual interest" (within the meaning of Section
860(G)(a)(2) of the Code) of REMIC I shall consist of Component R-1.

         Section 2.5 REPRESENTATIONS AND WARRANTIES 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 the
Depositor that as of the Closing Date or as of such date specifically provided
herein:

                                      -62-
<PAGE>

          (i)  The Master Servicer is a national banking association duly
               formed, validly existing and in good standing under the laws of
               the United States of America and is duly authorized and qualified
               to transact any and all business contemplated by this Agreement
               to be conducted by the Master Servicer;

          (ii) The Master Servicer has the full power and authority to conduct
               its business as presently conducted by it and to execute, deliver
               and perform, and to enter into and consummate, all transactions
               contemplated by this Agreement. The Master Servicer has duly
               authorized the execution, delivery and performance of this
               Agreement, has duly executed and delivered this Agreement, and
               this Agreement, assuming due authorization, execution and
               delivery by the Depositor and the Trustee, constitutes a legal,
               valid and binding obligation of the Master Servicer, enforceable
               against it in accordance with its terms except as the
               enforceability thereof may be limited by bankruptcy, insolvency,
               reorganization or similar laws affecting the enforcement of
               creditors' rights generally and by general principles of equity;

          (iii) The execution and delivery of this Agreement by the Master
               Servicer, the consummation by the Master Servicer 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 charter and 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 does not believe, nor does it have any reason
               or cause to believe, that it cannot perform each and every
               covenant made by it and contained in this Agreement;

          (v)  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 perform any of its other obligations hereunder in
               accordance with the terms hereof,

          (vi) There are no actions or proceedings against, or investigations
               known to it of, the Master Servicer before any court,
               administrative or other tribunal (A) that might prohibit its
               entering into this Agreement, (B) seeking to prevent the
               consummation of the transactions contemplated by this Agreement
               or (C) that might

                                      -63-
<PAGE>

               prohibit or materially and adversely affect the performance by
               the Master Servicer of its obligations under, or validity or
               enforceability of, this Agreement; and

         (vii) 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
               by it 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.

         It is understood and agreed that the representations, warranties and
covenants set forth in this Section 2.5 shall inure to the benefit of the
Trustee, the Depositor and the Certificateholders.

         Section 2.6 ESTABLISHMENT OF THE TRUST.

         The Depositor does hereby establish, pursuant to the further provisions
of this Agreement and the laws of the State of New York, an express trust to be
known, for convenience, as "Deutsche Mortgage Securities, Inc., Mortgage Loan
Trust, Series 2004-3" and does hereby appoint HSBC Bank USA, as Trustee in
accordance with the provisions of this Agreement.

                                      -64-
<PAGE>

                                  ARTICLE III
               ADMINISTRATION AND SERVICING OF THE LOANS; ACCOUNTS

         Section 3.1 MASTER SERVICER. The Master Servicer shall supervise,
monitor and oversee the obligation of the Servicers to service and administer
their respective Loans in accordance with the terms of the applicable Servicing
Agreement and shall have full power and authority to do any and all things which
it may deem necessary or desirable in connection with such master servicing and
administration. In performing its obligations hereunder, the Master Servicer
shall act in a manner consistent with Accepted Master Servicing Practices.
Furthermore, the Master Servicer shall oversee and consult with each Servicer as
necessary from time-to-time to carry out the Master Servicer's obligations
hereunder, shall receive, review and evaluate all reports, information and other
data provided to the Master Servicer by each Servicer and shall cause each
Servicer to perform and observe the covenants, obligations and conditions to be
performed or observed by such Servicer under the applicable Servicing Agreement.
The Master Servicer shall independently and separately monitor each Servicer's
servicing activities with respect to each related Loan, reconcile the results of
such monitoring with such information provided in the previous sentence on a
monthly basis and coordinate corrective adjustments to the Servicers' and Master
Servicer's records, and based on such reconciled and corrected information,
prepare the statements specified in Section 4.6 and any other information and
statements required to be provided by the Master Servicer hereunder. The Master
Servicer shall reconcile the results of its Loan monitoring with the actual
remittances of the Servicers to the related Distribution Account pursuant to the
applicable Servicing Agreements.

         Notwithstanding anything in this Agreement or any Servicing Agreement
to the contrary, the Master Servicer shall not have any duty or obligation to
enforce any Credit Risk Management Agreement that a Servicer is a party to (a
"Servicer Credit Risk Management Agreement") or to supervise, monitor or oversee
the activities of the Credit Risk Manager under any such Servicer Credit Risk
Management Agreement with respect to any action taken or not taken by the
applicable Servicer pursuant to a recommendation of the Credit Risk Manager.

         The Trustee shall furnish the Servicers and the Master Servicer with
any limited powers of attorney and other documents in form as provided to it
necessary or appropriate to enable the Servicers and the Master Servicer to
service or master service and administer the related Loans and REO Property. The
Trustee shall have no responsibility for any action of the Master Servicer or
any Servicer pursuant to any such limited power of attorney and shall be
indemnified by the Master Servicer or such Servicer for any cost, liability or
expense arising from the misuse thereof by the Master Servicer or such Servicer.

         The Trustee, the Custodian and the Securities Administrator shall
provide access to the records and documentation in possession of the Trustee,
the Custodian or the Securities Administrator regarding the related Loans and
REO Property and the servicing thereof to the Certificateholders, the FDIC, and
the supervisory agents and examiners of the FDIC, such access being afforded
only upon reasonable prior written request and during normal business hours at
the office of the Trustee, the Custodian or the Securities Administrator;
provided, however, that, unless otherwise required by law, none of the Trustee,
the Custodian or the Securities Administrator shall be required to provide
access to such records and documentation if the

                                      -65-
<PAGE>

provision thereof would violate the legal right to privacy of any Mortgagor. The
Trustee, the Custodian and the Securities Administrator shall allow
representatives of the above entities to photocopy any of the records and
documentation and shall provide equipment for that purpose at a charge that
covers the Trustee's, the Custodian's or the Securities Administrator's actual
costs.

         The Trustee shall execute and deliver to the related Servicer or the
Master Servicer upon request any court pleadings, requests for trustee's sale or
other documents necessary or desirable and, in each case, provided to the
Trustee by such Servicer or Master Servicer to (i) the foreclosure or trustee's
sale with respect to a Mortgaged Property; (ii) any legal action brought to
obtain judgment against any Mortgagor on the Mortgage Note or any other Loan
Document; (iii) obtain a deficiency judgment against the Mortgagor; or (iv)
enforce any other rights or remedies provided by the Mortgage Note or any other
Loan Document or otherwise available at law or equity.

         Section 3.2 REMIC-RELATED COVENANTS. For as long as each REMIC shall
exist, the Trustee and the Securities Administrator shall treat such REMIC as a
REMIC, and the Trustee and the Securities Administrator shall comply with any
directions of the Seller, the related Servicer or the Master Servicer to assure
such continuing treatment. In particular, the Trustee shall not (a) sell or
permit the sale of all or any portion of the Loans or of any investment of
deposits in an Account unless such sale is as a result of a repurchase of the
Loans pursuant to this Agreement or the Trustee has received an Opinion of
Counsel stating that such sale will not result in an Adverse REMIC Event as
defined in Section 10.1(f) hereof prepared at the expense of the Trust Fund; and
(b) other than with respect to a substitution pursuant to the Mortgage Loan
Purchase Agreements, the Assignment Agreements or Section 2.3 of this Agreement,
as applicable, accept any contribution to any REMIC after the Startup Day
without receipt of an Opinion of Counsel stating that such contribution will not
result in an Adverse REMIC Event as defined in Section 10.1(f) hereof.

         Section 3.3 MONITORING OF SERVICERS.

         (a) The Master Servicer shall be responsible for monitoring the
compliance by each Servicer with its duties under the related Servicing
Agreement. In the review of each Servicer's activities, the Master Servicer may
rely upon an officer's certificate of any Servicer with regard to such
Servicer's compliance with the terms of its Servicing Agreement. In the event
that the Master Servicer, in its judgment, determines that a Servicer should be
terminated in accordance with its Servicing Agreement, or that a notice should
be sent pursuant to such Servicing Agreement with respect to the occurrence of
an event that, unless cured, would constitute grounds for such termination, the
Master Servicer shall notify the Seller and the Trustee thereof and the Master
Servicer shall issue such notice or take such other action as it deems
appropriate.

         (b) The Master Servicer, for the benefit of the Trustee and the
Certificateholders, shall enforce the obligations of each Servicer under the
related Servicing Agreement, and shall, in the event that a Servicer fails to
perform its obligations in accordance with the related Servicing Agreement,
subject to the preceding paragraph, terminate the rights and obligations of such
Servicer thereunder and act as servicer of the related Loans or to cause the
Trustee to enter in to a new Servicing Agreement with a successor Servicer
selected by the

                                      -66-
<PAGE>

Master Servicer; provided, however, it is understood and acknowledged by the
parties hereto that there will be a period of transition (not to exceed 90 days)
before the actual servicing functions can be fully transferred to such successor
Servicer. Such enforcement, including, without limitation, the legal prosecution
of claims, termination of 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 Loans. The Master Servicer shall
pay the costs of such enforcement at its own expense, provided that the Master
Servicer shall not be required to prosecute or defend any legal action except to
the extent that the Master Servicer shall have received indemnity reasonably
acceptable to it for its costs and expenses in pursuing such action.

         (c) To the extent that the costs and expenses of the Master Servicer
related to any termination of a Servicer, appointment of a successor Servicer or
the transfer and assumption of servicing by the Master Servicer with respect to
any Servicing Agreement (including, without limitation, (i) all legal costs and
expenses and all due diligence costs and expenses associated with an evaluation
of the potential termination of the Servicer as a result of an event of default
by such Servicer and (ii) all costs and expenses associated with the complete
transfer of servicing, including all servicing files and all servicing data and
the completion, correction or manipulation of such servicing data as may be
required by the successor servicer to correct any errors or insufficiencies in
the servicing data or otherwise to enable the successor servicer to service the
Loans in accordance with the related Servicing Agreement) are not fully and
timely reimbursed by the terminated Servicer, the Master Servicer shall be
entitled to reimbursement of such costs and expenses from the related
Distribution Account.

         (d) The Master Servicer shall require each Servicer to comply with the
remittance requirements and other obligations set forth in the related Servicing
Agreement.

         (e) If the Master Servicer acts as Servicer, it shall not assume
liability for the representations and warranties of the Servicer, if any, that
it replaces.

         Section 3.4 FIDELITY BOND. The Master Servicer, at its expense, shall
maintain in effect a blanket fidelity bond and an errors and omissions insurance
policy that would meet the requirements of Fannie Mae or Freddie Mac, affording
coverage with respect to all directors, officers, employees and other Persons
acting on such Master Servicer's behalf, and covering errors and omissions in
the performance of the Master Servicer's obligations hereunder. The errors and
omissions insurance policy and the fidelity bond shall be in such form and
amount generally acceptable for entities serving as master servicers or
trustees. Any such errors and omissions policy and fidelity bond may not be
cancelable without thirty (30) days' prior written notice to the Trustee.

         Section 3.5 POWER TO ACT; PROCEDURES. The Master Servicer shall master
service the Loans and shall have full power and authority, subject to the REMIC
Provisions and the provisions of Article X hereof, to do any and all things that
it may deem necessary or desirable in connection with the master servicing and
administration of the Loans, including but not limited to the power and
authority (i) to execute and deliver, on behalf of the Certificateholders and
the Trustee, customary consents or waivers and other instruments and documents,
(ii) to consent to transfers of any Mortgaged Property and assumptions of the
Mortgage Notes and related

                                      -67-
<PAGE>

Mortgages, (iii) to collect any Insurance Proceeds and Liquidation Proceeds, and
(iv) to effectuate foreclosure or other conversion of the ownership of the
Mortgaged Property securing any Loan, in each case, in accordance with the
provisions of this Agreement and the related Servicing Agreement, as applicable;
provided, however, that the Master Servicer shall not (and, consistent with its
responsibilities under Section 3.3, shall not permit any Servicer to) knowingly
or intentionally take any action, or fail to take (or fail to cause to be taken)
any action reasonably within its control and the scope of duties more
specifically set forth herein, that, under the REMIC Provisions, if taken or not
taken, as the case may be, would cause REMIC I, REMIC II REMIC III or REMIC IV
to fail to qualify as a REMIC or 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) unless the Master Servicer, the
Securities Administrator has received an Opinion of Counsel (but not at the
expense of the Master Servicer, the Securities Administrator) to the effect that
the contemplated action will not cause REMIC I, REMIC II, REMIC III or REMIC IV
to fail to qualify as a REMIC or result in the imposition of a tax upon REMIC I,
REMIC II, REMIC III or REMIC IV, as the case may be. The Trustee shall furnish
the Master Servicer, upon written request from a Servicing Officer, with any
powers of attorney empowering the Master Servicer or any Servicer to execute and
deliver instruments of satisfaction or cancellation, or of partial or full
release or discharge, and to foreclose upon or otherwise liquidate Mortgaged
Property, and to appeal, prosecute or defend in any court action relating to the
Loans or the Mortgaged Property, in accordance with the applicable Servicing
Agreement and this Agreement, and the Trustee shall execute and deliver such
other documents, as the Master Servicer or applicable Servicer may request, to
enable the Master Servicer to master service and administer the Loans and carry
out its duties hereunder, in each case in accordance with Accepted Master
Servicing Practices (and the Trustee shall have no liability for the misuse of
any such powers of attorney by the Master Servicer or any Servicer and shall be
indemnified by the Master Servicer or such Servicer for any costs, liabilities
or expenses incurred by the Trustee in connection with such misuse). If the
Master Servicer or the Trustee has been advised that it is likely that the laws
of the state in which action is to be taken prohibit such action if taken in the
name of the Trustee or that the Trustee would be adversely affected under the
"doing business" or tax laws of such state if such action is taken in its name,
the Master Servicer shall join with the Trustee in the appointment of a
co-trustee pursuant to Section 8.10 hereof. In the performance of its duties
hereunder, the Master Servicer shall be an independent contractor and shall not,
except in those instances where it is taking action authorized pursuant to this
Agreement to be taken by it in the name of the Trustee, be deemed to be the
agent of the Trustee.

         Section 3.6 DUE-ON-SALE CLAUSES; ASSUMPTION AGREEMENTS. To the extent
provided in the applicable Servicing Agreement and to the extent Loans contain
enforceable due-on-sale clauses, the Master Servicer shall cause the Servicers
to enforce such clauses in accordance with the applicable Servicing Agreement.
If applicable law prohibits the enforcement of a due-on-sale clause or such
clause is otherwise not enforced in accordance with the applicable Servicing
Agreement, and, as a consequence, a Loan is assumed, the original Mortgagor may
be released from liability in accordance with the applicable Servicing
Agreement.

                                      -68-
<PAGE>

         Section 3.7 RELEASE OF MORTGAGE FILES.

         (a) Upon becoming aware of the payment in full of any Loan, or the
receipt by any Servicer of a notification that payment in full has been escrowed
in a manner customary for such purposes for payment to Certificateholders on the
next Distribution Date, the applicable Servicer will (or if the Servicer does
not, the Master Servicer may), if required under the applicable Servicing
Agreement, promptly furnish to the Custodian, on behalf of the Trustee, two
copies of a request for release substantially in the form attached to the
Custodial Agreement, and signed by a Servicing Officer or in a mutually
agreeable electronic format which will, in lieu of a signature on its face,
originate from a Servicing Officer (which certification shall include a
statement to the effect that all amounts received in connection with such
payment that are required to be deposited in the Protected Account maintained by
the applicable Servicer pursuant to its Servicing Agreement have been or will be
so deposited) and shall request that the Custodian, on behalf of the Trustee,
deliver to the applicable Servicer the related Mortgage File. Upon receipt of
such certification and request, the Custodian, on behalf of the Trustee, shall
promptly release the related Mortgage File to the applicable Servicer and the
Trustee and Custodian shall have no further responsibility with regard to such
Mortgage File. Upon any such payment in full, each Servicer is authorized to
give, as agent for the Trustee, as the mortgagee under the Mortgage that secured
the Loan, an instrument of satisfaction (or assignment of mortgage without
recourse) regarding the Mortgaged Property subject to the Mortgage, which
instrument of satisfaction or assignment, as the case may be, shall be delivered
to the Person or Persons entitled thereto against receipt therefor of such
payment, it being understood and agreed that no expenses incurred in connection
with such instrument of satisfaction or assignment, as the case may be, shall be
chargeable to the related Distribution Account.

         (b) From time to time and as appropriate for the servicing or
foreclosure of any Loan and in accordance with the applicable Servicing
Agreement, the Trustee shall execute such documents as shall be prepared and
furnished to the Trustee by a Servicer or the Master Servicer (in form
reasonably acceptable to the Trustee) and as are necessary to the prosecution of
any such proceedings. The Custodian, on behalf of the Trustee, shall, upon the
request of a Servicer or the Master Servicer, and delivery to the Custodian, on
behalf of the Trustee, of two copies of a request for release signed by a
Servicing Officer substantially in the form attached to the Custodial Agreement
(or in a mutually agreeable electronic format which will, in lieu of a signature
on its face, originate from a Servicing Officer), release the related Mortgage
File held in its possession or control to the Servicer or the Master Servicer,
as applicable. Such request for release shall obligate the Servicer or the
Master Servicer to return the Mortgage File to the Custodian on behalf of the
Trustee, when the need therefor by the Servicer or the Master Servicer no longer
exists unless the Loan shall be liquidated, in which case, upon receipt of a
certificate of a Servicing Officer similar to that hereinabove specified, the
Mortgage File shall be released by the Custodian, on behalf of the Trustee, to
the Servicer or the Master Servicer.

Section 3.8       DOCUMENTS, RECORDS AND FUNDS IN POSSESSION OF MASTER SERVICER
                  -------------------------------------------------------------
                  TO BE HELD FOR TRUSTEE.
                  -----------------------

         (a) The Master Servicer shall transmit and each Servicer (to the extent
required by the related Servicing Agreement) shall transmit to the Trustee or
Custodian such documents and instruments coming into the possession of the
Master Servicer or such Servicer

                                      -69-
<PAGE>

from time to time as are required by the terms hereof, or in the case of the
Servicers, the applicable Servicing Agreement, to be delivered to the Trustee or
Custodian. Any funds received by the Master Servicer or by a Servicer in respect
of any Loan or which otherwise are collected by the Master Servicer or by a
Servicer as Liquidation Proceeds, Insurance Proceeds or Subsequent Recoveries in
respect of any Loan shall be held for the benefit of the Trustee and the related
Certificateholders subject to the Master Servicer's right to retain or withdraw
from the related Distribution Account the Master Servicing Compensation and
other amounts provided in this Agreement, and to the right of each Servicer to
retain its Servicing Fee and other amounts as provided in the applicable
Servicing Agreement. The Master Servicer shall, and (to the extent provided in
the applicable Servicing Agreement) shall cause each Servicer to, provide access
to information and documentation regarding the Loans to the Trustee, its agents
and accountants at any time upon reasonable request and during normal business
hours, and to Certificateholders that are savings and loan associations, banks
or insurance companies, the OTS, the FDIC and the supervisory agents and
examiners of such Office and Corporation or examiners of any other federal or
state banking or insurance regulatory authority if so required by applicable
regulations of the OTS or other regulatory authority, such access to be afforded
without charge but only upon reasonable request in writing and during normal
business hours at the offices of the Master Servicer designated by it. In
fulfilling such a request the Master Servicer shall not be responsible for
determining the sufficiency of such information.

         (b) All Mortgage Files and funds collected or held by, or under the
control of, the Master Servicer, in respect of any Loans, whether from the
collection of principal and interest payments or from Liquidation Proceeds or
Insurance Proceeds, shall be held by the Master Servicer for and on behalf of
the Trustee and the related Certificateholders and shall be and remain the sole
and exclusive property of the Trustee; provided, however, that the Master
Servicer and each Servicer shall be entitled to setoff against, and deduct from,
any such funds any amounts that are properly due and payable to the Master
Servicer or such Servicer under this Agreement or the applicable Servicing
Agreement.

Section 3.9       STANDARD HAZARD INSURANCE AND FLOOD INSURANCE POLICIES.
                  ------------------------------------------------------

         (a) For each Loan, the Master Servicer shall enforce any obligation of
the Servicers under the related Servicing Agreements to maintain or cause to be
maintained standard fire and casualty insurance and, where applicable, flood
insurance, all in accordance with the provisions of the related Servicing
Agreements. It is understood and agreed that such insurance shall be with
insurers meeting the eligibility requirements set forth in the applicable
Servicing Agreement and that no earthquake or other additional insurance is to
be required of any Mortgagor or to be maintained on property acquired in respect
of a defaulted loan, other than pursuant to such applicable laws and regulations
as shall at any time be in force and as shall require such additional insurance.

         (b) Pursuant to Section 3.23, any amounts collected by the Master
Servicer, or by any Servicer, under any insurance policies (other than amounts
to be applied to the restoration or repair of the property subject to the
related Mortgage or released to the Mortgagor in accordance with the applicable
Servicing Agreement) shall be deposited into the related Distribution Account,
subject to withdrawal pursuant to Section 3.24. Any cost incurred by the Master
Servicer or any Servicer in maintaining any such insurance if the Mortgagor
defaults

                                      -70-
<PAGE>

in its obligation to do so shall be added to the amount owing under the Loan
where the terms of the Loan so permit; provided, however, that the addition of
any such cost shall not be taken into account for purposes of calculating the
distributions to be made to Certificateholders and shall be recoverable by the
Master Servicer or such Servicer pursuant to Section 3.24.

         Section 3.10 PRESENTMENT OF CLAIMS AND COLLECTION OF PROCEEDS. The
Master Servicer shall (to the extent provided in the applicable Servicing
Agreement) cause the related Servicer to, prepare and present on behalf of the
Trustee and the related Certificateholders all claims under any insurance
policies and take such actions (including the negotiation, settlement,
compromise or enforcement of the insured's claim) as shall be necessary to
realize recovery under such policies. Any proceeds disbursed to the Master
Servicer (or disbursed to a Servicer and remitted to the Master Servicer) in
respect of such policies, bonds or contracts shall be promptly deposited in the
related Distribution Account upon receipt, except that any amounts realized that
are to be applied to the repair or restoration of the related Mortgaged Property
as a condition precedent to the presentation of claims on the related Loan to
the insurer under any applicable insurance policy need not be so deposited (or
remitted).

         Section 3.11 MAINTENANCE OF THE PRIMARY MORTGAGE INSURANCE POLICIES.
                      ------------------------------------------------------

         (a) The Master Servicer shall not take, or permit any Servicer (to the
extent such action is prohibited under the applicable Servicing Agreement) to
take, any action that would result in noncoverage under any primary mortgage
insurance policy or any loss which, but for the actions of such Master Servicer
or Servicer, would have been covered thereunder. The Master Servicer shall use
its best reasonable efforts to cause each Servicer (to the extent required under
the related Servicing Agreement) to keep in force and effect (to the extent that
the Loan requires the Mortgagor to maintain such insurance), primary mortgage
insurance applicable to each Loan in accordance with the provisions of this
Agreement and the related Servicing Agreement, as applicable. The Master
Servicer shall not, and shall not permit any Servicer (to the extent required
under the related Servicing Agreement) to, cancel or refuse to renew any primary
mortgage insurance policy that is in effect at the date of the initial issuance
of the Mortgage Note and is required to be kept in force hereunder except in
accordance with the provisions of this Agreement and the related Servicing
Agreement, as applicable.

         (b) The Master Servicer agrees to cause each Servicer (to the extent
required under the related Servicing Agreement) to present, on behalf of the
Trustee and the related Certificateholders, claims to the insurer under any
primary mortgage insurance policies and, in this regard, to take such reasonable
action as shall be necessary to permit recovery under any primary mortgage
insurance policies respecting defaulted Loans. Pursuant to Section 3.22 and
3.23, any amounts collected by the Master Servicer or any Servicer under any
primary mortgage insurance policies shall be deposited by the related Servicer
in its Protected Account or by the Master Servicer in the related Distribution
Account, subject to withdrawal pursuant to Sections 3.22 or 3.24, as applicable.

Section 3.12      TRUSTEE TO RETAIN POSSESSION OF CERTAIN INSURANCE POLICIES AND
                  --------------------------------------------------------------
                  DOCUMENTS.
                  ----------

                  The Trustee or the applicable Custodian, shall retain
possession and custody of the originals (to the extent available) of any primary
mortgage insurance policies, or certificate of insurance if applicable, and any
certificates of renewal as to the foregoing as may be issued

                                      -71-
<PAGE>

from time to time as contemplated by this Agreement. Until all amounts
distributable in respect of the Group I Certificates and Group II Certificates
have been distributed in full and the Master Servicer otherwise has fulfilled
its obligations under this Agreement, the Trustee or the Custodian shall also
retain possession and custody of each related Mortgage File in accordance with
and subject to the terms and conditions of this Agreement and the Custodial
Agreement. The Master Servicer shall promptly deliver or cause to be delivered
to the Trustee or the Custodian, upon the execution or receipt thereof the
originals of any primary mortgage insurance policies, any certificates of
renewal, and such other documents or instruments that constitute Loan Documents
that come into the possession of the Master Servicer from time to time.

Section 3.13 REALIZATION UPON DEFAULTED LOANS. The Master Servicer shall cause
each Servicer (to the extent required under the related Servicing Agreement) to
foreclose upon, repossess or otherwise comparably convert the ownership of
Mortgaged Properties securing such of the Loans as come into and continue in
default and as to which no satisfactory arrangements can be made for collection
of delinquent payments, all in accordance with the applicable Servicing
Agreement.

         Section 3.14 COMPENSATION FOR THE MASTER SERVICER.

         (a) In addition to the Master Servicer's right to receive its Master
Servicing Fee, all income and gain realized from any investment of funds in each
Distribution Account shall be for the benefit of the Master Servicer as
compensation. Servicing compensation in the form of assumption fees, if any,
late payment charges, as collected, if any, or otherwise (but not including any
Prepayment Charges) shall be retained by the applicable Servicer and shall not
be deposited in the Protected Account. The Master Servicer shall be required to
pay all expenses incurred by it in connection with its activities hereunder and
shall not be entitled to reimbursement therefor except as provided in this
Agreement.

         (b) The amount of the aggregate compensation payable as set forth in
Section 3.14(a) (the "Master Servicing Compensation") to the Master Servicer in
respect of any Distribution Date shall be reduced in accordance with Section
3.20.

         Section 3.15 REO PROPERTY.

         (a) In the event the Trust Fund acquires ownership of any REO Property
in respect of any related Loan, the deed or certificate of sale shall be issued
to the Trustee, or to its nominee, on behalf of the related Certificateholders.
The Master Servicer shall, to the extent provided in the applicable Servicing
Agreement, cause the applicable Servicer to sell any REO Property as
expeditiously as possible and in accordance with the provisions of this
Agreement and the related Servicing Agreement, as applicable. Further, the
Master Servicer shall, to the extent provided in the related Servicing
Agreement, cause the applicable Servicer to sell any REO Property prior to three
years after the end of the calendar year of its acquisition by REMIC I or REMIC
II, as applicable, unless (i) the Trustee and the Securities Administrator shall
have been supplied with an Opinion of Counsel to the effect that the holding by
the Trust Fund of such REO Property subsequent to such three-year period will
not result in the imposition of taxes on "prohibited transactions" of any REMIC
hereunder as defined in section 860F of the Code or cause any REMIC hereunder to
fail to qualify as a REMIC at any time that any Certificates are outstanding, in
which case the Trust Fund may continue to hold such Mortgaged Property

                                      -72-
<PAGE>

(subject to any conditions contained in such Opinion of Counsel) or (ii) the
applicable Servicer shall have applied for, prior to the expiration of such
three-year period, an extension of such three-year period in the manner
contemplated by Section 856(e)(3) of the Code, in which case the three-year
period shall be extended by the applicable extension period. The Master Servicer
shall cause the applicable Servicer (to the extent provided in the related
Servicing Agreement) to protect and conserve, such REO Property in the manner
and to the extent required by the applicable Servicing Agreement, in accordance
with the REMIC Provisions and in a manner that does not result in a tax on "net
income from foreclosure property" or cause such REO Property to fail to qualify
as "foreclosure property" within the meaning of Section 860G(a)(8) of the Code.

                  (b) The Master Servicer shall, to the extent required by the
related Servicing Agreement, cause the applicable Servicer to deposit all funds
collected and received in connection with the operation of any REO Property in
the Protected Account.

                  (c) The Master Servicer and the applicable Servicer, upon the
final disposition of any REO Property, shall be entitled to reimbursement for
any related unreimbursed Advances and other unreimbursed advances as well as any
unpaid Servicing Fees from Liquidation Proceeds received in connection with the
final disposition of such REO Property; provided, that any such unreimbursed
Advances as well as any unpaid Servicing Fees may be reimbursed or paid, as the
case may be, prior to final disposition, out of any net rental income or other
net amounts derived from such REO Property.

                  (d) To the extent provided in the related Servicing Agreement,
the Liquidation Proceeds from the final disposition of the REO Property, net of
any payment to the Master Servicer and the applicable Servicer as provided above
shall be deposited in the Protected Account on or prior to the Determination
Date in the month following receipt thereof and be remitted by wire transfer in
immediately available funds to the Master Servicer for deposit into the related
Distribution Account on the next succeeding Remittance Date.

         Section 3.16 ANNUAL OFFICER'S CERTIFICATE AS TO COMPLIANCE.

                  (a) The Master Servicer shall deliver to the Trustee, Ambac
and the Rating Agencies on or before March 15 of each year, commencing on March
15, 2005, an Officer's Certificate signed by a Servicing Officer, certifying
that with respect to the period ending December 31 of the prior year: (i) such
Servicing Officer has reviewed the activities of such Master Servicer during the
preceding calendar year or portion thereof and its performance under this
Agreement, (ii) to the best of such Servicing Officer's knowledge, based on such
review, such Master Servicer has performed and fulfilled its duties,
responsibilities and obligations under this Agreement in all material respects
throughout such year, or, if there has been a default in the fulfillment of any
such duties, responsibilities or obligations, specifying each such default known
to such Servicing Officer and the nature and status thereof, (iii) nothing has
come to the attention of such Servicing Officer to lead such Servicing Officer
to believe that any Servicer has failed to perform any of its duties,
responsibilities and obligations under its Servicing Agreement in all material
respects throughout such year, or, if there has been a material default in the
performance or fulfillment of any such duties, responsibilities or obligations,
specifying each such default known to such Servicing Officer and the nature and
status thereof.

                                      -73-
<PAGE>

                  (b) Copies of such statements shall be provided to any
Certificateholder upon request, by the Master Servicer or by the Trustee at the
Master Servicer's expense if the Master Servicer failed to provide such copies
(unless (i) the Master Servicer shall have failed to provide the Trustee with
such statement or (ii) the Trustee shall be unaware of the Master Servicer's
failure to provide such statement).

         Section 3.17 ANNUAL INDEPENDENT ACCOUNTANT'S SERVICING REPORT. If the
Master Servicer has, during the course of any fiscal year, directly serviced any
of the Loans, then the Master Servicer at its expense shall cause a nationally
recognized firm of independent certified public accountants to furnish a
statement to the Trustee, the Rating Agencies, Ambac and the Seller on or before
March 15 of each year, commencing on March 15, 2005 to the effect that, with
respect to the most recently ended fiscal year, such firm has examined certain
records and documents relating to the Master Servicer's performance of its
servicing obligations under this Agreement and pooling and servicing and trust
agreements in material respects similar to this Agreement and to each other and
that, on the basis of such examination conducted substantially in compliance
with the audit program for mortgages serviced for Freddie Mac or the Uniform
Single Attestation Program for Mortgage Bankers, such firm is of the opinion
that the Master Servicer's activities have been conducted in compliance with
this Agreement, or that such examination has disclosed no material items of
noncompliance except for (i) such exceptions as such firm believes to be
immaterial, (ii) such other exceptions as are set forth in such statement and
(iii) such exceptions that the Uniform Single Attestation Program for Mortgage
Bankers or the Audit Program for Mortgages Serviced by Freddie Mac requires it
to report. Copies of such statements shall be provided to any Certificateholder
upon request by the Master Servicer, or by the Trustee at the expense of the
Master Servicer if the Master Servicer shall fail to provide such copies (unless
(i) the Master Servicer shall have failed to provide the Trustee with such
statement or (ii) the Trustee shall be unaware of the Master Servicer's failure
to provide such statement). If such report discloses exceptions that are
material, the Master Servicer shall advise the Trustee whether such exceptions
have been or are susceptible of cure, and shall take prompt action to do so.

         Section 3.18 REPORTS FILED WITH SECURITIES AND EXCHANGE COMMISSION.

                  (a) Within 15 days after each Distribution Date, the Master
Servicer shall, in accordance with industry standards, file with the Commission
via the Electronic Data Gathering and Retrieval System ("EDGAR"), a Form 8-K
with a copy of the statement to be furnished by the Securities Administrator to
the Certificateholders for such Distribution Date as an exhibit thereto. Prior
to January 30, 2005, the Master Servicer shall, in accordance with industry
standards, file a Form 15 Suspension Notice with respect to the Trust Fund, if
applicable. Prior to March 30, 2005 and annually thereafter (if required), the
Master Servicer shall file a Form 10-K, in substance conforming to industry
standards, with respect to the Trust Fund. Such Form 10-K shall include, to the
extent available, as exhibits (i) each applicable Servicer's annual statement of
compliance described under the related Servicing Agreement, (ii) each applicable
Servicer's accountant's report described under the related Servicing Agreement,
(iii) the Master Servicer's accountant's report described in Section 3.17, if
applicable, in each case to the extent timely delivered, if applicable, to the
Master Servicer, and (iv) a written certification signed by an officer of the
Master Servicer that complies with the Sarbanes-Oxley Act of 2002 as in effect
on the date of this Agreement and the February 3, 2003, Statement by the Staff
of the Division of

                                      -74-
<PAGE>

Corporation Finance of the Commission Regarding Compliance by Asset-Backed
Issuers with Exchange Act Rules 13a-14 and 15d-14 as in effect as of the date of
this Agreement. The Depositor hereby grants to the Master Servicer a limited
power of attorney to execute and file each Form 8-K and Form 10-K on behalf of
the Depositor. Such power of attorney shall continue until either the earlier of
(i) receipt by the Master Servicer from the Depositor of written termination of
such power of attorney and (ii) the termination of the Trust Fund. The Depositor
and the Trustee each agree to promptly furnish to the Master Servicer, from time
to time upon request, such further information, reports and financial statements
within its control related to this Agreement and the Loans as the Master
Servicer reasonably deems appropriate to prepare and file all necessary reports
with the Commission. The Master Servicer shall cooperate with the Depositor in
connection with any additional filings with respect to the Trust Fund as the
Depositor deems necessary under the Exchange Act. Copies of all reports filed by
the Master Servicer under the Exchange Act shall be sent to the Depositor.

                  (b) The Master Servicer shall indemnify and hold harmless the
Depositor, the Trustee and their respective 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 Master Servicer's
obligations under this Section 3.18 or the Master Servicer's negligence, bad
faith or willful misconduct in connection therewith. Fees and expenses incurred
by the Master Servicer in connection with this Section 3.18 shall not be
reimbursable from the Trust Fund.

         Section 3.19 UCC. The Depositor shall file any financing statements or
amendments thereto required by any change in the Uniform Commercial Code. The
Depositor agrees to file continuation statements for any such Uniform Commercial
Code financing statements which the Seller or the Depositor filed in connection
with the Trust Fund.

         Section 3.20 OBLIGATION OF THE MASTER SERVICER IN RESPECT OF
COMPENSATING INTEREST. The Master Servicer shall deposit in the related
Distribution Account not later than each related Distribution Account Deposit
Date an amount equal to the lesser of (i) the aggregate amounts required to be
paid by the related Servicer under the related Servicing Agreement with respect
to Compensating Interest on the related Loans for the related Distribution Date,
and not so paid by such Servicer and (ii) the Master Servicing Fee with respect
to the related Loan Group for such Distribution Date, without reimbursement
therefor.

         Section 3.21 RESERVED.

         Section 3.22 PROTECTED ACCOUNTS.

                  (a) The Master Servicer shall enforce the obligation of each
Servicer to establish and maintain a Protected Account in accordance with the
applicable Servicing Agreement, with records to be kept with respect thereto on
a Loan by Loan basis, into which accounts shall be deposited within 48 hours (or
as of such other time specified in the related Servicing Agreement) of receipt
all collections of principal and interest on any Loan and with respect to any
REO Property received by a Servicer, including Principal Prepayments, Insurance
Proceeds, Liquidation Proceeds, Subsequent Recoveries and advances made from the
Servicer's own funds (less servicing compensation as permitted by the applicable
Servicing Agreement in the case of any Servicer) and all other amounts to be
deposited in the Protected Account. Each

                                      -75-
<PAGE>

Servicer is hereby authorized to make withdrawals from and deposits to the
related Protected Account for purposes required or permitted by the related
Servicing Agreement. To the extent provided in the related Servicing Agreement,
the Protected Account shall be held in a depository institution and segregated
on the books of such institution in the name of the Trustee for the benefit of
the related Certificateholders.

                  (b) To the extent provided in the related Servicing Agreement,
amounts on deposit in a Protected Account may be invested in Eligible
Investments in the name of the Trustee for the benefit of Certificateholders
and, except as provided in the preceding paragraph, not commingled with any
other funds, such Eligible Investments to mature, or to be subject to redemption
or withdrawal, no later than the date on which such funds are required to be
withdrawn for deposit in the related Distribution Account, and shall be held
until required for such deposit. The income earned from Eligible Investments
made pursuant to this Section 3.22 shall be paid to the related Servicer under
the applicable Servicing Agreement, and amounts required to be distributed to
the Certificateholders resulting from the loss of monies from such investments
shall be borne by and be the risk of the related Servicer. The related Servicer
(to the extent provided in the Servicing Agreement) shall deposit the amount of
any such loss in the Protected Account within two Business Days of receipt of
notification of such loss but not later than the second Business Day prior to
the Distribution Date on which the moneys so invested are required to be
distributed to the Certificateholders.

                  (c) To the extent provided in the related Servicing Agreement
and subject to this Article III, on or before each Servicer Remittance Date, the
related Servicer shall withdraw or shall cause to be withdrawn from the
Protected Accounts and shall immediately deposit or cause to be deposited in the
related Distribution Account amounts representing the following collections and
payments (other than with respect to principal of or interest on the Loans due
on or before the Cut-Off Date):

                  (i) Monthly Payments on the Loans received or any related
         portion thereof advanced by the Servicers pursuant to the Servicing
         Agreements which were due on or before the related Due Date, net of the
         amount thereof comprising the Servicing Fees;

                  (ii) Principal Prepayments, Liquidation Proceeds, Insurance
         Proceeds and Subsequent Recoveries received by the Servicers with
         respect to such Loans in the related Prepayment Period, Compensating
         Interest and the amount of any related Prepayment Charges; and

                  (iii) Any amount to be used as an Advance.

                  (d) Withdrawals may be made from an Account only to make
remittances as provided in Section 3.22(c), 3.23 and 3.24 or as otherwise
provided in the Servicing Agreements; to reimburse the Master Servicer or a
Servicer for Advances which have been recovered by subsequent collection from
the related Mortgagor; to remove amounts deposited in error; to remove fees,
charges or other such amounts deposited on a temporary basis; or to clear and
terminate the account at the termination of this Agreement in accordance with
Section 9.1. As provided in Sections 3.22(c) and 3.23(b) or as otherwise
provided in the Servicing Agreements

                                      -76-
<PAGE>

certain amounts otherwise due to the Servicers may be retained by them and need
not be deposited in the related Distribution Account.

                  Section 3.23 DISTRIBUTION ACCOUNTS.

                  (a) The Securities Administrator shall establish and maintain,
for the benefit of the Certificateholders, a Distribution Account with respect
to the Group I Loans and a Distribution Account with respect to the Group II
Loans, in each case as a segregated trust account or accounts. The Master
Servicer shall deposit in the related Distribution Account as identified by the
Master Servicer and as received by the Master Servicer, the following amounts
with respect to the related Loan Group:

                  (i) Any amounts withdrawn from a Protected Account;

                  (ii) Any Advance and any amounts in respect of Prepayment
         Interest Shortfalls or Curtailment Shortfalls;

                  (iii) Any Insurance Proceeds, Liquidation Proceeds, or
         Subsequent Recoveries received by or on behalf of the Master Servicer;

                  (iv) The Purchase Price with respect to any Loans purchased by
         the Seller pursuant to Section 2.3 and all proceeds of any Loans or
         property acquired with respect thereto purchased by the Master Servicer
         pursuant to Section 9.1;

                  (v) Any amounts required to be deposited by the Master
         Servicer or any Servicer with respect to losses on investments of
         deposits in an Account; and

                  (vi) Any other amounts received by or on behalf of the Master
         Servicer and required to be deposited in a Distribution Account
         pursuant to this Agreement.

                  (b) All amounts deposited to a Distribution Account shall be
held by the Securities Administrator in trust for the benefit of the related
Certificateholders in accordance with the terms and provisions of this
Agreement. The requirements for crediting the related Distribution 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 or
assumption, tax service, statement account or payoff, substitution,
satisfaction, release and other like fees and charges, need not be credited by
the Master Servicer or the related Servicer to the related Distribution Account.
In the event that the Master Servicer shall deposit or cause to be deposited to
a Distribution Account any amount not required to be credited thereto, the
Securities Administrator, upon receipt of a written request therefor signed by a
Servicing Officer of the Master Servicer, shall promptly transfer such amount to
the Master Servicer, any provision herein to the contrary notwithstanding.

                  (c) The Distribution Accounts shall constitute trust accounts
of the Trust Fund segregated on the books of the Securities Administrator and
held by the Securities Administrator in trust in its Corporate Trust Office, and
the Distribution Accounts and the funds deposited therein shall not be subject
to, and shall be protected from, all claims, liens, and encumbrances of any
creditors or depositors of the Securities Administrator (whether made directly,
or indirectly

                                      -77-
<PAGE>

through a liquidator or receiver of the Securities Administrator). The amount at
any time credited to the Distribution Accounts shall be invested in the name of
the Master Servicer, in such Eligible Investments selected by the Master
Servicer or deposited in demand deposits with such depository institutions as
selected by the Master Servicer, provided that time deposits of such depository
institutions would be an Eligible Investment. All Eligible Investments shall
mature or be subject to redemption or withdrawal on or before, and shall be held
until, the Distribution Date following the date of the investment of such funds
(the "Investment Withdrawal Distribution Date") if the obligor for such Eligible
Investment is the Securities Administrator or, if such obligor is any other
Person, the Business Day preceding such Investment Withdrawal Distribution Date.
All investment earnings on amounts on deposit in the Distribution Accounts from
time to time shall be for the account of the Master Servicer. The Master
Servicer shall be permitted to receive distribution of any and all investment
earnings from the Distribution Accounts on each Distribution Date. If there is
any loss on an Eligible Investment or demand deposit, the Master Servicer shall
deposit such amount in the related Distribution Account. With respect to each
Distribution Account and the funds deposited therein, the Securities
Administrator shall take such action as may be necessary to ensure that the
related Certificateholders shall be entitled to the priorities afforded to such
a trust account (in addition to a claim against the estate of the Securities
Administrator) as provided by 12 U.S.C. ss. 92a(e), and applicable regulations
pursuant thereto, if applicable, or any applicable comparable state statute
applicable to state chartered banking corporations.

         Section 3.24 PERMITTED WITHDRAWALS AND TRANSFERS FROM THE DISTRIBUTION
ACCOUNTS.

                  (a) The Securities Administrator shall, from time to time on
demand of the Master Servicer make or cause to be made such withdrawals or
transfers from the related Distribution Account as the Master Servicer has
designated for such transfer or withdrawal pursuant to the Servicing Agreements
with respect to the related Loans for the following purposes, not in any order
of priority:

                  (i) to reimburse the Master Servicer or any Servicer for any
         Advance of its own funds, the right of the Master Servicer or a
         Servicer to reimbursement pursuant to this subclause (i) being limited
         to amounts received on a particular Loan (including, for this purpose,
         the Purchase Price therefor, Insurance Proceeds and Liquidation
         Proceeds) which represent late payments or recoveries of the principal
         of or interest on such Loan respecting which such Advance was made;

                  (ii) to reimburse the Master Servicer or any Servicer from
         Insurance Proceeds or Liquidation Proceeds relating to a particular
         Loan for amounts expended by the Master Servicer or such Servicer in
         good faith in connection with the restoration of the related Mortgaged
         Property which was damaged by an Uninsured Cause or in connection with
         the liquidation of such Loan;

                  (iii) to reimburse the Master Servicer or any Servicer from
         Insurance Proceeds relating to a particular Loan for insured expenses
         incurred with respect to such Loan and to reimburse the Master Servicer
         or such Servicer from Liquidation Proceeds from a particular Loan for
         Liquidation Expenses incurred with respect to such Loan;

                                      -78-
<PAGE>

                  (iv) to pay the Master Servicer or any Servicer, as
         appropriate, from Liquidation Proceeds or Insurance Proceeds received
         in connection with the liquidation of any Loan, the amount which it or
         such Servicer would have been entitled to receive under subclause (vii)
         of this Subsection (a) as servicing compensation on account of each
         defaulted scheduled payment on such Loan if paid in a timely manner by
         the related Mortgagor;

                  (v) to pay the Master Servicer or any Servicer from the
         Purchase Price for any Loan, the amount which it or such Servicer would
         have been entitled to receive under subclause (vii) of this Subsection
         (a) as servicing compensation;

                  (vi) to reimburse the Master Servicer or any Servicer for any
         Nonrecoverable Advance, after a Realized Loss has been allocated with
         respect to the related Loan if the Advance or Servicing Advance has not
         been reimbursed pursuant to clause (i);

                  (vii) to pay the Servicing Fee to the Servicers (to the extent
         such Servicing Fee was not retained by the Servicer pursuant to the
         related Servicing Agreement), the Master Servicing Fee to the Master
         Servicer and the Credit Risk Management Fee to the Credit Risk Manager
         for such Distribution Date and the amount of any income or gain
         realized from investments of funds on deposit in the Distribution
         Account pursuant to Section 3.14 hereof and to reimburse the Master
         Servicer for expenses, costs and liabilities incurred by and
         reimbursable to it pursuant to Sections 3.3, 6.3, 8.5 and 10.1;

                  (viii) to reimburse or pay any Servicer any such amounts as
         are due thereto under the applicable Servicing Agreement and have not
         been retained by or paid to the Servicer, to the extent provided in the
         related Servicing Agreement;

                  (ix) to reimburse the Trustee, the Custodian and the
         Securities Administrator for expenses, costs and liabilities, if any,
         incurred by or reimbursable to such parties pursuant to this Agreement;

                  (x) to remove amounts deposited in error; and

                  (xi) to clear and terminate the related Distribution Account
         pursuant to Section 9.1.

                  (b) The Master Servicer shall keep and maintain separate
accounting, on a Loan by Loan basis, for the purpose of accounting for any
reimbursement from the related Distribution Account pursuant to subclauses (i)
through (v), inclusive, or with respect to any such amounts which would have
been covered by such subclauses had the amounts not been retained by the Master
Servicer without being deposited in the related Distribution Account under
Section 3.23(b).

                  (c) On each Distribution Date, the Securities Administrator
shall distribute the Available Distribution Amount with respect to each Loan
Group to Ambac and to the Holders of the related Certificates in accordance with
Section 4.1 or 4.3, as applicable.

                                      -79-
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         Section 3.25 RESERVE FUNDS.

                  (a) No later than the Closing Date, the Securities
Administrator shall establish and maintain (i) a separate, segregated trust
account titled, "Reserve Fund, Wells Fargo Bank, N.A., in trust for the
registered holders of Deutsche Mortgage Securities, Inc. Mortgage Loan Trust,
Series 2004-3, Mortgage Pass-Through Certificates, Group I Certificates" (the
"Group I Reserve Fund") and (ii) a separate, segregated trust account titled,
"Reserve Fund, Wells Fargo Bank, N.A., in trust for the registered holders of
Deutsche Mortgage Securities, Inc. Mortgage Loan Trust, Series 2004-3, Mortgage
Pass-Through Certificates, Group II Certificates" (the "Group II Reserve Fund").
On the Closing Date, the Depositor will deposit, or cause to be deposited, into
each Reserve Fund $1,000. In addition, (x) the amount deposited in the Group I
Reserve Fund shall be increased by any payments received by the Securities
Administrator under the Class I-A-1 Cap Contract which shall be deposited into
the Group I Reserve Fund for the benefit of the related Certificateholders and
(y) the amount deposited in the Group II Reserve Fund shall be increased by any
payments received by the Securities Administrator under the Class II-AR-1 Cap
Contract, Class II-AR-2 Cap Contract, Class II-MR-1 Cap Contract, Class II-MR-2
Cap Contract and Class II-MR-3 Cap Contract, which payments shall be deposited
into the Group II Reserve Fund for the benefit of the related
Certificateholders.

                  (b) (i) On each Distribution Date as to which there is a Net
WAC Rate Carryover Amount payable to the Group I Senior Certificates, the
Securities Administrator will deposit into the Group I Reserve Fund the amounts
described in Section 4.1(a)(iii)(F) rather than distributing such amounts to the
Class I-CE Certificateholders. On each such Distribution Date, the Securities
Administrator shall hold all such amounts for the benefit of the Holders of the
Group I Senior Certificates (other than the Class I-A-IO Certificates) and the
Group I Mezzanine Certificates, and will distribute such amounts to the Holders
of the Group I Senior Certificates (other than the Class I-A-IO Certificates)
and the Group I Mezzanine Certificates in the amounts and priorities set forth
in the last paragraph of Section 4.1(a)(iii). If no Net WAC Rate Carryover
Amounts related to the Group I Certificates are payable on a Distribution Date,
the Securities Administrator shall deposit into the Group I Reserve Fund on
behalf of the Class I-CE Certificateholders, from amounts otherwise
distributable to the Class I-CE Certificateholders, an amount such that when
added to other amounts already on deposit in such Reserve Fund, the aggregate
amount on deposit therein is equal to $1,000.

                           (ii) On each Distribution Date as to which there is a
Net WAC Rate Carryover Amount payable to the Group II Senior Certificates and
the Group II Mezzanine Certificates, the Securities Administrator will deposit
into the related Reserve Fund the amounts described in Section 4.3(a)(iii)(E)
rather than distributing such amounts to the Class II-CE Certificateholders. On
each such Distribution Date, the Securities Administrator shall hold all such
amounts for the benefit of the Holders of the Group II Senior Certificates and
the Group II Mezzanine Certificates, and will distribute such amounts to the
Holders of the Group II Senior Certificates and the Group II Mezzanine
Certificates in the amounts and priorities set forth in the last paragraph of
Section 4.3(a)(iii). If no Net WAC Rate Carryover Amounts related to the Group
II Certificates are payable on a Distribution Date, the Securities Administrator
shall deposit into the Group II Reserve Fund on behalf of the Class II-CE
Certificateholders, from amounts otherwise distributable to the Class II-CE
Certificateholders, an amount such that when

                                      -80-
<PAGE>

added to other amounts already on deposit in such Reserve Fund, the aggregate
amount on deposit therein is equal to $1,000.

                  (c) For federal and state income tax purposes, the Class I-CE
Certificateholders will be deemed to be the owners of the Group I Reserve Fund
and the Class II-CE Certificateholders will be deemed to be the owners of the
Group II Reserve Fund and all amounts deposited into the related Reserve Fund
(other than the initial deposit therein of $1,000) shall be treated as amounts
distributed by REMIC IV to the Holders of the related Class CE Certificates.
Upon the termination of the Trust Fund, a Cleanup Call pursuant to Section 9.1
or the payment in full of the Class A Certificates and the Class M Certificates
of a Loan Group, all amounts remaining on deposit in the related Reserve Funds
will be released by the Trust Fund and distributed to the related Class CE
Certificateholders or their designees. The Reserve Funds will be part of the
Trust Fund but not part of any REMIC and any payments to the Holders of the
Class A Certificates or the Class M 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 that the Securities Administrator will deposit
into the related Reserve Fund the amounts described above on each Distribution
Date rather than distributing such amounts to the Class CE Certificateholders.
By accepting a Class CE Certificate, each Class CE Certificateholder further
agrees that its agreement to such action by the Securities Administrator is
given for good and valuable consideration, the receipt and sufficiency of which
is acknowledged by such acceptance.

                  (e) The Securities Administrator shall direct any depository
institution maintaining a Reserve Fund 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
Securities Administrator 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 Securities Administrator or
an Affiliate manages or advises such investment. All income and gain earned upon
such investment shall be deposited into the related Reserve Fund. In no event
shall the Securities Administrator be liable for any investments made pursuant
to this clause (e).

                  (f) For federal tax return and information reporting, the
right of the Class A Certificateholders and the Class M Certificateholders to
receive payments from the related Reserve Fund in respect of any Net WAC Rate
Carryover Amount shall be assigned a value of zero.

         Section 3.26 PREPAYMENT PENALTY VERIFICATION.

                  On or prior to each Servicer Remittance Date, each Servicer
shall, to the extent provided in the respective Servicing Agreement, provide in
an electronic format acceptable to the Master Servicer the data necessary for
the Master Servicer to perform its verification duties agreed to by the Master
Servicer and the Depositor. The Master Servicer or a third party

                                      -81-
<PAGE>

reasonably acceptable to the Master Servicer and the Depositor (the
"Verification Agent") will perform such verification duties and will use its
best efforts to issue its findings in a report (the "Verification Report")
delivered to the Master Servicer and the Depositor within ten (10) Business Days
following the related Distribution Date; provided, however, that if the
Verification Agent is unable to issue the Verification Report within ten (10)
Business Days following the Distribution Date, the Verification Agent may issue
and deliver to the Master Servicer and the Depositor the Verification Report
upon the completion of its verification duties. The Master Servicer shall
forward the Verification Report to the respective Servicer and shall notify such
Servicer if the Master Servicer has determined that such Servicer did not
deliver the appropriate Prepayment Charges to the Master Servicer in accordance
with the respective Servicing Agreement. Such written notification from the
Master Servicer shall include the loan number, prepayment penalty code and
prepayment penalty amount as calculated by the Master Servicer or the
Verification Agent, as applicable, of each Loan for which there is a
discrepancy. If the respective Servicer agrees with the verified amounts, such
Servicer shall adjust the immediately succeeding Remittance Report and the
amount remitted to the Master Servicer with respect to prepayments accordingly.
If the respective Servicer disagrees with the determination of the Master
Servicer, such Servicer shall, within five (5) Business Days of its receipt of
the Verification Report, notify the Master Servicer of such disagreement and
provide the Master Servicer with detailed information to support such Servicer's
position. The respective Servicer and the Master Servicer shall cooperate to
resolve any discrepancy on or prior to the immediately succeeding Servicer
Remittance Date, and such Servicer will indicate the effect of such resolution
on the related Remittance Report and shall adjust the amount remitted with
respect to prepayments on such Servicer Remittance Date accordingly.

                  During such time as the respective Servicer and the Master
Servicer are resolving discrepancies with respect to the Prepayment Charges, no
payments in respect of any disputed Prepayment Charges will be remitted to the
related Distribution Account(s) and the Master Servicer shall not be obligated
to remit such payments, unless otherwise required pursuant to Section 7.1
hereof. In connection with such duties, the Master Servicer shall be able to
rely solely on the information provided to it (if any) by the respective
Servicer in accordance with this Section. The Master Servicer shall not be
responsible for verifying the accuracy of any of the information provided to it
by the respective Servicer.

                                      -82-
<PAGE>

                                   ARTICLE IV
                    PAYMENTS TO CERTIFICATEHOLDERS; ADVANCES;
                             STATEMENTS AND REPORTS

         Section 4.1 DISTRIBUTIONS TO GROUP I CERTIFICATEHOLDERS.

                  (a) On each Distribution Date, the Securities Administrator,
to the extent on deposit therein and based solely upon the Remittance Report for
such Distribution Date, shall withdraw from the Distribution Account for the
Group I Loans, the Group I Available Distribution Amount for such Distribution
Date and distribute to each Certificateholder of a Group I Certificate, as
applicable, by wire transfer in immediately available funds for the account of
such Certificateholder or by any other means of payment acceptable to each
related Certificateholder of record on the immediately preceding Record Date
(other than as provided in Section 9.1 respecting the final distribution) as
specified by each such Certificateholder and at the address of such Holder
appearing in the Certificate Register, from the amount so withdrawn and to the
extent of such Group I Available Distribution Amount, such Certificateholder's
Percentage Interest of the following amounts and in following order and
priority:

                  (i) On each Distribution Date, the Securities Administrator
         shall distribute the Interest Remittance Amount with respect to the
         Group I Certificates for such Distribution Date in the following order
         and priority:

                           (A)      first, to Ambac, the Insurer Premium;

                           (B)      second, to the Holders of each Class of
                                    Group I Senior Certificates, the related
                                    Senior Interest Distribution Amount for such
                                    Distribution Date and such Class to the
                                    extent of the Interest Remittance Amount
                                    remaining after payment of the Insurer
                                    Premium to Ambac pursuant to clause (A)
                                    above, on a pro rata basis based on the
                                    entitlement of each such Class;

                           (C)      third, to the Holders of the Class I-M-1
                                    Certificates, the related Interest
                                    Distribution Amount allocable to such
                                    Certificates to the extent of the related
                                    Interest Remittance Amount for such
                                    Distribution Date remaining after payment of
                                    the Insurer Premium to Ambac and the related
                                    Senior Interest Distribution Amount to the
                                    Group I Senior Certificates;

                           (D)      fourth, to the Holders of the Class I-M-2
                                    Certificates, the Interest Distribution
                                    Amount allocable to such Certificates to the
                                    extent of the related Interest Remittance
                                    Amount for such Distribution Date remaining
                                    after payment of the Insurer Premium to
                                    Ambac, the related Senior Interest
                                    Distribution Amount to the Group I Senior
                                    Certificates and the related Interest
                                    Distribution Amount to the Class I-M-1
                                    Certificates;

                                      -83-
<PAGE>

                           (E)      fourth, to the Holders of the Class I-M-3
                                    Certificates, the Interest Distribution
                                    Amount allocable to such Certificates to the
                                    extent of the related Interest Remittance
                                    Amount for such Distribution Date remaining
                                    after payment of the Insurer Premium to
                                    Ambac, the related Senior Interest
                                    Distribution Amount to the Group I Senior
                                    Certificates and the related Interest
                                    Distribution Amount to the Class I-M-1
                                    Certificates and the Class I-M-2
                                    Certificates;

                  (ii) On each Distribution Date, the Securities Administrator
         shall distribute the Group I Principal Distribution Amount to the
         Holders of each Class of Group I Certificates, other than the Class
         I-A-IO, Class I-P Certificates and Class I-CE Certificates, in the
         following order and priority:

                           (A)      The Group I Senior Principal Distribution
                                    Amount will be distributed as follows:

                                             (1) first, to the Class I-A-6
                                    Certificates, an amount up to the Class
                                    I-A-6 Lockout Distribution Amount for that
                                    Distribution Date, until the Certificate
                                    Principal Balance thereof has been reduced
                                    to zero; and

                                             (2) second, any remaining Group I
                                    Senior Principal Distribution Amount after
                                    the distributions described above,
                                    sequentially:

                                              (a) to the Class I-A-1
                                              Certificates, until the
                                              Certificate Principal Balance
                                              thereof has been reduced to zero;

                                              (b) concurrently (i) to the Class
                                              I-A-2, Class I-A-3 and Class I-A-4
                                              Certificates and (ii) to the Class
                                              I-A-7 Certificates, on a pro rata
                                              basis based on the Certificate
                                              Principal Balance of each such
                                              Class, until the Certificate
                                              Principal Balance of each such
                                              Class has been reduced to zero;
                                              provided, however, that the pro
                                              rata allocation to the Class
                                              I-A-2, Class I-A-3 and Class I-A-4
                                              Certificates pursuant to this
                                              clause shall be based on the total
                                              Certificate Principal Balance of
                                              the Class I-A-2, Class I-A-3 and
                                              Class I-A-4 Certificates, but
                                              shall be distributed to the Class
                                              I-A-2, Class I-A-3 and Class I-A-4
                                              Certificates on a sequential
                                              basis, in that order, until the
                                              Certificate Principal Balance of
                                              each such Class has been reduced
                                              to zero; and

                                              (c) to the Class I-A-5
                                              Certificates and Class I-A-6
                                              Certificates, sequentially, in
                                              that order, until the Certificate
                                              Principal Balance of each such
                                              Class has been reduced to zero.

                                      -84-
<PAGE>

                           (B)      Holders of the Class I-M-1 Certificates will
                                    be entitled to receive on each Distribution
                                    Date, to the extent of the portion of the
                                    Group I Principal Distribution Amount
                                    remaining after the Group I Senior Principal
                                    Distribution Amount has been distributed,
                                    the Class I-M-1 Principal Distribution
                                    Amount in reduction of the Certificate
                                    Principal Balance thereof, until the
                                    Certificate Principal Balance of the Class
                                    I-M-1 Certificates has been reduced to zero.

                           (C)      Holders of the Class I-M-2 Certificates will
                                    be entitled to receive on each Distribution
                                    Date, to the extent of the portion of the
                                    Group I Principal Distribution Amount
                                    remaining after the sum of the Group I
                                    Senior Principal Distribution Amount and the
                                    Class I-M-1 Principal Distribution Amount
                                    has been distributed, the Class I-M-2
                                    Principal Distribution Amount in reduction
                                    of the Certificate Principal Balance
                                    thereof, until the Certificate Principal
                                    Balance of the Class I-M-2 Certificates has
                                    been reduced to zero.

                           (D)      Holders of the Class I-M-3 Certificates will
                                    be entitled to receive on each Distribution
                                    Date, to the extent of the portion of the
                                    Group I Principal Distribution Amount
                                    remaining after the sum of the Group I
                                    Senior Principal Distribution Amount, the
                                    Class I-M-1 Principal Distribution Amount
                                    and the Class I-M-2 Principal Distribution
                                    Amount has been distributed, the Class I-M-3
                                    Principal Distribution Amount in reduction
                                    of the Certificate Principal Balance
                                    thereof, until the Certificate Principal
                                    Balance of the Class I-M-3 Certificates has
                                    been reduced to zero.

                  (iii) On each Distribution Date, the Securities Administrator
         shall distribute any related Net Monthly Excess Cashflow for such
         Distribution Date in the following order of priority:

                           (A)      to the Holders of the Group I Senior
                                    Certificates (other than the Class I-A-IO
                                    Certificates) and Group I Mezzanine
                                    Certificates, an amount equal to the related
                                    Extra Principal Distribution Amount for such
                                    Distribution Date in accordance with clause
                                    (iv) below;

                           (B)      to Ambac, for payment of any Reimbursement
                                    Amount;

                           (C)      to the Holders of the Class I-M-1
                                    Certificates, in an amount equal to the
                                    related Interest Carry Forward Amount for
                                    such Distribution Date allocable to such
                                    Class of Certificates;

                           (D)      to the Holders of the Class I-M-2
                                    Certificates, in an amount equal to the
                                    related Interest Carry Forward Amount for
                                    such Distribution Date allocable to such
                                    Class of Certificates;

                                      -85-
<PAGE>

                           (E)      to the Holders of the Class I-M-3
                                    Certificates, in an amount equal to the
                                    related Interest Carry Forward Amount for
                                    such Distribution Date allocable to such
                                    Class of Certificates;

                           (F)      to the Group I Reserve Fund, an amount equal
                                    to (a) with respect to the Group I Senior
                                    Certificates (other than the Class I-A-1
                                    Certificates and the Class I-A-IO
                                    Certificates), the sum of the related Net
                                    WAC Rate Carryover Amounts, if any, and (b)
                                    with respect to the Class I-A-1
                                    Certificates, the amount by which the sum of
                                    the Net WAC Rate Carryover Amounts with
                                    respect to the Class I-A-1 Certificates
                                    exceeds the sum of any amounts received by
                                    the Securities Administrator with respect to
                                    the Class I-A-I Cap Contract since the prior
                                    Distribution Date;

                           (G)      to the Holders of the Class I-CE
                                    Certificates, the related Interest
                                    Distribution Amount and any related
                                    Overcollateralization Reduction Amount for
                                    such Distribution Date; and

                           (H)      to the Holders of the Class R Certificates,
                                    in respect of Component R-3, any remaining
                                    amounts; provided that if such Distribution
                                    Date is the Distribution Date immediately
                                    following the expiration of the latest
                                    Prepayment Charge term on the Group I Loans
                                    as identified on the Loan Schedule or any
                                    Distribution Date thereafter, then any such
                                    remaining amounts will be distributed first,
                                    to the Holders of the Class I-P
                                    Certificates, until the Certificate
                                    Principal Balance thereof has been reduced
                                    to zero; and second, to the Holders of the
                                    Class R Certificates.

         On each Distribution Date, the Securities Administrator, after making
the required distributions of interest and principal to the Group I Senior
Certificates and Group I Mezzanine Certificates as described in Section
4.1(a)(i) and (ii) above, and after the distribution of the Net Monthly Excess
Cashflow with respect to the Group I Loans as described in Section 4.1(a)(iii),
the Securities Administrator will withdraw from the Group I Reserve Fund the
amounts on deposit therein and distribute such amounts to the Group I Senior
Certificates (other than the Class I-A-IO Certificates) and the Group I
Mezzanine Certificates, in respect of any Net WAC Rate Carryover Amounts in the
following manner and order of priority: first, concurrently to the Group I
Senior Certificates, other than the Class I-A-IO Certificates, on a pro rata
basis, the related Net WAC Rate Carryover Amount for such Distribution Date for
each such Class; second, to the Class I-M-1 Certificates, the related Net WAC
Rate Carryover Amount for such Distribution Date for such Class; third, to the
Class I-M-2 Certificates, the related Net WAC Rate Carryover Amount for such
Distribution Date for such Class; and fourth, to the Class I-M-3 Certificates,
the related Net WAC Rate Carryover Amount for such Distribution Date for such
Class.

                  (iv) (A) On each Distribution Date (a) prior to the Group I
         Stepdown Date or (b) on which a Group I Trigger Event is in effect, the
         related Extra Principal Distribution Amount shall be distributed in the
         following order of priority:

                                      -86-
<PAGE>

                           (1) first, to the Holders of the Class I-A-6
                  Certificates, up to the Class A-6 Lockout Distribution Amount;

                           (2) second, to the Holders of the Class I-A-1
                  Certificates, until the Certificate Principal Balance thereof
                  has been reduced to zero;

                           (3) third, concurrently (i) to the Holders of the
                  Class I-A-2, Class I-A-3 and Class I-A-4 Certificates and (ii)
                  to the Holders of the Class I-A-7 Certificates, on a pro rata
                  basis based on the Certificate Principal Balance of each such
                  Class, until the Certificate Principal Balance of each such
                  Class has been reduced to zero; provided, however, that the
                  pro rata allocation to the Class I-A-2, Class I-A-3 and Class
                  I-A-4 Certificateholders pursuant to this clause shall be
                  based on the total Certificate Principal Balance of the Class
                  I-A-2, Class I-A-3 and Class I-A-4 Certificates, but shall be
                  distributed to the Class I-A-2, Class I-A-3 and Class I-A-4
                  Certificateholders on a sequential basis, in that order, until
                  the Certificate Principal Balance of each such Class has been
                  reduced to zero;

                           (4) fourth, to the Holders of the Class I-A-5
                  Certificates and Class I-A-6 Certificates, sequentially, in
                  that order, until the Certificate Principal Balance of each
                  such Class has been reduced to zero;

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

                           (6) sixth, to the Holders of the Class I-M-2
                  Certificates, until the Certificate Principal Balance thereof
                  has been reduced to zero; and

                           (7) seventh, to the Holders of the Class I-M-3
                  Certificates, until the Certificate Principal Balance thereof
                  has been reduced to zero.

         (B)      On each Distribution Date (a) on or after the Group I Stepdown
                  Date and (b) on which a Group I Trigger Event is not in
                  effect, distributions of principal to the extent of the
                  related Extra Principal Distribution Amount shall be
                  distributed in the following order of priority:

                           (1) first, the lesser of (x) the related Extra
                  Principal Distribution Amount and (y) the Class A-6 Lockout
                  Distribution Amount, shall be distributed to the Holders of
                  the Class I-A-6 Certificates until the Certificate Principal
                  Balance thereof has been reduced to zero;

                           (2) second, the lesser of (x) the excess of (i) the
                  related Extra Principal Distribution Amount over (ii) the
                  amount distributed to the Holders of the Class I-A-6
                  Certificates under clause (1) immediately above, and (y) the
                  Group I Senior Principal Distribution Amount, shall

                                      -87-
<PAGE>

                  be distributed to the Holders of the Class I-A-1 Certificates
                  until the Certificate Principal Balance of the Class I-A-1
                  Certificates has been reduced to zero;

                           (3) third, the lesser of (x) the excess of (i) the
                  related Extra Principal Distribution Amount and (ii) the
                  amount distributed to the Holders of the Class I-A-6
                  Certificates and Class I-A-1 Certificates under clauses (1)
                  and (2) immediately above, and (y) the Group I Senior
                  Principal Distribution Amount, shall be distributed
                  concurrently to (i) the Holders of the Class I-A-2, Class
                  I-A-3 and Class I-A-4 Certificates and (ii) to the Holders of
                  the Class I-A-7 Certificates, on a pro rata basis based on the
                  Certificate Principal Balance of each such Class, until the
                  Certificate Principal Balance of each such Class has been
                  reduced to zero; provided, however, that the pro rata
                  allocation to the Class I-A-2, Class I-A-3 and Class I-A-4
                  Certificates pursuant to this clause shall be based on the
                  total Certificate Principal Balance of the Class I-A-2, Class
                  I-A-3 and Class I-A-4 Certificates, but shall be distributed
                  to the Class I-A-2, Class I-A-3 and Class I-A-4 Certificates
                  on a sequential basis, in that order, until the Certificate
                  Principal Balance of each such Class has been reduced to zero;

                           (4) fourth, the lesser of (x) the excess of (i) the
                  related Extra Principal Distribution Amount and (ii) the
                  amount distributed to the Holders of the Class I-A-6, Class
                  I-A-1, Class I-A-2, Class I-A-3, Class I-A-4 and Class I-A-7
                  Certificates under clauses (1), (2) and (3) immediately above
                  and (y) the Group I Senior Principal Distribution Amount,
                  shall be distributed to the Holders of the Class I-A-5
                  Certificates and Class I-A-6 Certificates, sequentially, in
                  that order, until the Certificate Principal Balance of each
                  such Class has been reduced to zero;

                           (5) fifth, the lesser of (x) the excess of (i) the
                  related Extra Principal Distribution Amount over (ii) the
                  amount distributed to the Holders of the Group I Senior
                  Certificates under clauses (1), (2), (3) and (4) immediately
                  above, and (y) the Class I-M-1 Principal Distribution Amount,
                  shall be distributed to the Holders of the Class I-M-1
                  Certificates, until the Certificate Principal Balance of the
                  Class I-M-1 Certificates has been reduced to zero;

                           (6) sixth, the lesser of (x) the excess of (i) the
                  related Extra Principal Distribution Amount over (ii) the sum
                  of the amounts distributed to the Holders of the Group I
                  Senior Certificates under clauses (1), (2), (3) and (4)
                  immediately above and to the holders of the Class I-M-1
                  Certificates under clause (5) immediately above, and (y) the
                  Class I-M-2 Principal Distribution Amount, shall be
                  distributed to the Holders of the Class I-M-2 Certificates,
                  until the Certificate

                                      -88-
<PAGE>

                  Principal Balance of the Class I-M-2 Certificates has been
                  reduced to zero; and

                           (7) seventh, the lesser of (x) the excess of (i) the
                  related Extra Principal Distribution Amount over (ii) the sum
                  of the amount distributed to the Holders of the Group I Senior
                  Certificates under clause (1), (2), (3) and (4) immediately
                  above, to the holders of the Class I-M-1 Certificates under
                  clause (5) immediately above and to the Holders of the Class
                  I-M-2 Certificates under clause (6) immediately above, and (y)
                  the Class I-M-3 Principal Distribution Amount, shall be
                  distributed to the Holders of the Class I-M-3 Certificates,
                  until the Certificate Principal Balance of the Class I-M-3
                  Certificates has been reduced to zero.

                  (v) On each Distribution Date, the Securities Administrator
         shall withdraw any amounts then on deposit in the related Distribution
         Account that represent Prepayment Charges received on the Group I Loans
         and shall distribute such amounts to the Holders of the Class I-P
         Certificates.

         Section 4.2 ALLOCATION OF REALIZED LOSSES ON THE GROUP I LOANS.

         Prior to each Distribution Date, the Master Servicer, based solely on
the information provided by the related Servicer, shall determine the amount of
Realized Losses, if any, with respect to the Group I Loans.

         Realized Losses on the Group I Loans for any Distribution Date will
first, cause a reduction in the related Net Monthly Excess Cash Flow for that
Distribution Date and second, cause a reduction in the Certificate Principal
Balance of the Class I-CE Certificates for that Distribution Date, until the
Certificate Principal Balance thereof has been reduced to zero. To the extent
that Realized Losses on the Group I Loans on a Distribution Date cause the
aggregate Certificate Principal Balance of the Group I Senior Certificates
(other than the Class I-A-IO Certificates) and the Group I Mezzanine
Certificates, after taking into account all distributions on such Distribution
Date to exceed the aggregate Principal Balance of the Group I Loans as of the
last day of the related Due Period, such excess will be allocated first, to the
Class I-M-3 Certificates; second, to the Class I-M-2 Certificates; and third, to
the Class I-M-1 Certificates in each case to reduce the Certificate Principal
Balance thereof until it has been reduced to zero. In addition, to the extent
the related Servicer receives Subsequent Recoveries with respect to any
defaulted Group I Loan, the amount of the Realized Loss with respect to that
defaulted Group I Loan will be reduced to the extent such recoveries are applied
to reduce the Certificate Principal Balance of any class of Group I Certificates
on any Distribution Date.

         Any allocation of a Realized Loss on a Group I Loan to a Group I
Mezzanine Certificate on any Distribution Date shall be made by reducing the
Certificate Principal Balance thereof by the amount so allocated as of such
Distribution Date after all distributions on such Distribution Date have been
made. Any allocation of Realized Losses on a Group I Loan to a Class I-CE
Certificate shall be made by reducing the amount otherwise payable in respect
thereof pursuant to Section 4.1(a)(iii)(G). No allocations of Realized Losses
shall be made to the Group I Senior Certificates or the Class I-P Certificates.
Notwithstanding anything to the contrary in this

                                      -89-
<PAGE>

Agreement, in no event will the Certificate Principal Balance of any Group I
Mezzanine Certificate be reduced more than once in respect of any particular
amount both (i) allocable to the Group I Mezzanine Certificate in respect of
Realized Losses and (ii) payable as principal to the Holder of the Certificate
from the related Net Monthly Excess Cashflow.

         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 allocated among the Certificates of such Class in
proportion to the Percentage Interests evidenced thereby.

         In the event that the related Servicer collects a Subsequent Recovery
with respect to a defaulted Group I Liquidated Loan with respect to which a
Realized Loss has been incurred, such Subsequent Recovery will be distributed as
part of the Group I Available Distribution Amount in accordance with the
priorities described under Section 4.1. Additionally, the Certificate Principal
Balance of each class of Group I Mezzanine Certificates that has been reduced by
the allocation of a Realized Loss to such Certificate will be increased, in
order of seniority, by the amount of such Subsequent Recovery, but not in excess
of the amount of any Realized Losses previously allocated to such Class of
Certificates. Holders of such Certificates will not be entitled to any payment
in respect of current interest on the amount of such increases for any Interest
Accrual Period preceding the Distribution Date on which such increase occurs.

         The principal portion of all Realized Losses on the Group I Loans shall
be allocated on each Distribution Date first, to REMIC I Regular Interest LTI-1
and REMIC I Regular Interest LTI-P, until the Uncertificated Principal Balances
have been reduced to zero and then sequentially to REMIC I Regular Interest
LTI-IO-1, REMIC I Regular Interest LTI-IO-2, REMIC I Regular Interest LTI-IO-3
and REMIC I Regular Interest LTI-IO-4, until the Uncertificated Principal
Balances have been reduced to zero.

         All Realized Losses on the REMIC I Regular Interests shall be allocated
on each Distribution Date to the following REMIC III Regular Interests in the
specified percentages, as follows: first, to Uncertificated Accrued Interest
payable to the REMIC III Regular Interest LTIII-1AA and REMIC III Regular
Interest LTIII-1ZZ up to an aggregate amount equal to the REMIC III Group I
Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the
Uncertificated Principal Balances of the REMIC III Regular Interest LTIII-1AA
and REMIC III Regular Interest LTIII-1ZZ up to an aggregate amount equal to the
REMIC III Group I Principal Loss Allocation Amount, 98% and 2%, respectively;
third, to the Uncertificated Principal Balances of REMIC III Regular Interest
LTIII-1AA, 98%, to REMIC III Regular Interest LTIII-1M3, 1% and to REMIC III
Regular Interest LTIII-1ZZ, 1%, respectively, until the Uncertificated Principal
Balance of REMIC III Regular Interest LTIII-1M3 has been reduced to zero;
fourth, to the Uncertificated Principal Balances of REMIC III Regular Interest
LTIII-1AA, REMIC III Regular Interest LTIII-1M2 and REMIC III Regular Interest
LTIII-1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
Balance of REMIC III Regular Interest LTIII-1M2 has been reduced to zero; and
fifth, to the Uncertificated Principal Balances of REMIC III Regular Interest
LTIII-1AA, REMIC III Regular Interest LTIII-1M1 and REMIC III

                                      -90-
<PAGE>

Regular Interest LTIII-1ZZ, 98%, 1% and 1%, respectively, until the
Uncertificated Principal Balance of REMIC III Regular Interest LTIII-1M1 has
been reduced to zero.

         Section 4.3 DISTRIBUTIONS TO GROUP II CERTIFICATEHOLDERS.

                  (a) On each Distribution Date, the Securities Administrator,
to the extent on deposit therein and based solely upon the Remittance Report for
such Distribution Date, shall withdraw from the Distribution Account for the
Group II Loans, the Group II Available Distribution Amount for such Distribution
Date and distribute to each Certificateholder of a Group II Certificate, as
applicable, by wire transfer in immediately available funds for the account of
such Certificateholder or by any other means of payment acceptable to each
related Certificateholder of record on the immediately preceding Record Date
(other than as provided in Section 9.1 respecting the final distribution) as
specified by each such Certificateholder and at the address of such Holder
appearing in the Certificate Register, from the amount so withdrawn and to the
extent of such Group II Available Distribution Amount, such Certificateholder's
Percentage Interest of the following amounts and in following order and
priority:

                  (i) (A) On each Distribution Date, the Securities
         Administrator shall distribute the portion of the Interest Remittance
         Amount relating to the Group II-1 Loans for such Distribution Date in
         the following order and priority:

                           (1) first, to the Holders Class II-AR-1 Certificates,
                  the related Senior Interest Distribution Amount for such
                  Distribution Date;

                           (2) second, to the Holders of the Class II-AR-2
                  Certificates, the related Senior Interest Distribution Amount
                  to the extent remaining unpaid after the distributions of the
                  Interest Remittance Amount related to the Group II-2 Loans as
                  set forth in clause (B)(1) immediately below;

                           (3) third, to the Holders of the Class II-M-1
                  Certificates, the Interest Distribution Amount allocable to
                  such Certificates to the extent of the Interest Remittance
                  Amount remaining after distribution of the related Senior
                  Interest Distribution Amount to the Group II Senior
                  Certificates;

                           (4) fourth, to the Holders of the Class II-M-2
                  Certificates, the Interest Distribution Amount allocable to
                  such Certificates to the extent of the Interest Remittance
                  Amount remaining after distribution of the Senior Interest
                  Distribution Amount to the Group II Senior Certificates and
                  the Interest Distribution Amount to the Class II-M-1
                  Certificates; and

                           (5) fifth, to the Holders of the Class II-M-3
                  Certificates, the Interest Distribution Amount allocable to
                  such Certificates to the extent of the Interest Remittance
                  Amount remaining after distribution of the Senior Interest
                  Distribution Amount to the Group II Senior

                                      -91-
<PAGE>

                  Certificates and the Interest Distribution Amount to the Class
                  II-M-1 and the Class II-M-2 Certificates;

         (B)      On each Distribution Date, the Securities Administrator shall
                  distribute the portion of the Interest Remittance Amount
                  relating to the Group II-2 Loans for such Distribution Date in
                  the following order and priority:

                           (1) first, to the Holders Class II-AR-2 Certificates,
                  the related Senior Interest Distribution Amount for such
                  Distribution Date;

                           (2) second, to the Holders of the Class II-AR-1
                  Certificates, the related Senior Interest Distribution Amount
                  to the extent remaining unpaid after the distributions of the
                  Interest Remittance Amount related to the Group II-2 Loans as
                  set forth in clause (A)(1) immediately above;

                           (3) third, to the Holders of the Class II-M-1
                  Certificates, the Interest Distribution Amount allocable to
                  such Certificates to the extent of the Interest Remittance
                  Amount remaining after distribution of the related Senior
                  Interest Distribution Amount to the Group II Senior
                  Certificates;

                           (4) fourth, to the Holders of the Class II-M-2
                  Certificates, the Interest Distribution Amount allocable to
                  such Certificates to the extent of the Interest Remittance
                  Amount remaining after distribution of the Senior Interest
                  Distribution Amount to the Group II Senior Certificates and
                  the Interest Distribution Amount to the Class II-M-1
                  Certificates; and

                           (5) fifth, to the Holders of the Class II-M-3
                  Certificates, the Interest Distribution Amount allocable to
                  such Certificates to the extent of the Interest Remittance
                  Amount remaining after distribution of the Senior Interest
                  Distribution Amount to the Group II Senior Certificates and
                  the Interest Distribution Amount to the Class II-M-1 and the
                  Class II-M-2 Certificates;

                  (ii) On each Distribution Date, the Securities Administrator
         shall distribute the Group II Principal Distribution Amount to the
         Holders of each Class of Group II Certificates, other than the Class
         II-P Certificates and Class II-CE Certificates, in the following order
         and priority:

                  (A)      The Class II-AR-1 Principal Distribution Amount will
                           be distributed as follows:

                                    (1) first, to the Class II-AR-1 Certificates
                           until the Certificate Principal Balance thereof has
                           been reduced to zero; and

                                    (2) second, to the Class II-AR-2
                           Certificates, after taking into account the
                           distribution of the Class II-AR-2 Principal
                           Distribution

                                      -92-
<PAGE>

                           Amount as described in clause (B)(1) immediately
                           below, until the Certificate Principal Balance
                           thereof has been reduced to zero.

                  (B)      The Class II-AR-2 Principal Distribution Amount will
                           be distributed as follows:

                                    (1) first, to the Class II-AR-2 Certificates
                           until the Certificate Principal Balance thereof has
                           been reduced to zero; and

                                    (2) second, to the Class II-AR-1
                           Certificates, after taking into account the
                           distribution of the Class II-AR-1 Principal
                           Distribution Amount as described in clause (A)(1)
                           immediately above, until the Certificate Principal
                           Balance thereof has been reduced to zero.

                  (C)      Holders of the Class II-MR-1 Certificates will be
                           entitled to receive on each Distribution Date, to the
                           extent of the portion of the Group II Principal
                           Distribution Amount remaining after the Group II
                           Senior Principal Distribution Amount has been
                           distributed, the Class II-MR-1 Principal Distribution
                           Amount in reduction of the Certificate Principal
                           Balance thereof, until the Certificate Principal
                           Balance of the Class II-MR-1 Certificates has been
                           reduced to zero.

                  (D)      Holders of the Class II-MR-2 Certificates will be
                           entitled to receive on each Distribution Date, to the
                           extent of the portion of the Group II Principal
                           Distribution Amount remaining after the sum of the
                           Group II Senior Principal Distribution Amount and the
                           Class II-MR-1 Principal Distribution Amount has been
                           distributed, the Class II-MR-2 Principal Distribution
                           Amount in reduction of the Certificate Principal
                           Balance thereof, until the Certificate Principal
                           Balance of the Class II-MR-2 Certificates has been
                           reduced to zero.

                  (E)      Holders of the Class II-MR-3 Certificates will be
                           entitled to receive on each Distribution Date, to the
                           extent of the portion of the Group II Principal
                           Distribution Amount remaining after the sum of the
                           Group II Senior Principal Distribution Amount, the
                           Class II-MR-1 Principal Distribution Amount and the
                           Class II-MR-2 Principal Distribution Amount has been
                           distributed, the Class II-MR-3 Principal Distribution
                           Amount in reduction of the Certificate Principal
                           Balance thereof, until the Certificate Principal
                           Balance of the Class II-MR-3 Certificates has been
                           reduced to zero.

                  (iii) On each Distribution Date, the Securities Administrator
         shall distribute any related Net Monthly Excess Cashflow for such
         Distribution Date in the following order of priority:

                  (A)      to the Holders of the Group II Senior Certificates
                           and Group II Mezzanine Certificates, an amount equal
                           to the related Extra Principal

                                      -93-
<PAGE>

                           Distribution Amount for such Distribution Date in
                           accordance with clause (iv) below;

                  (B)      to the Holders of the Class II-MR-1 Certificates, in
                           an amount equal to the related Interest Carry Forward
                           Amount for such Distribution Date allocable to such
                           Class of Certificates;

                  (C)      to the Holders of the Class II-MR-2 Certificates, in
                           an amount equal to the related Interest Carry Forward
                           Amount for such Distribution Date allocable to such
                           Class of Certificates;

                  (D)      to the Holders of the Class II-MR-3 Certificates, in
                           an amount equal to the related Interest Carry Forward
                           Amount for such Distribution Date allocable to such
                           Class of Certificates;

                  (E)      to the Group II Reserve Fund, an amount equal to the
                           sum of:

                                    (1) the amount by which the sum of the Net
                           WAC Rate Carryover Amounts with respect to the Class
                           II-AR-1 Certificates exceeds the sum of any amounts
                           received by the Securities Administrator with respect
                           to the Class II-AR-1 Cap Contract;

                                    (2) the amount by which the sum of the Net
                           WAC Rate Carryover Amounts with respect to the Class
                           II-AR-2 Certificates exceeds the sum of any amounts
                           received by the Securities Administrator with respect
                           to the Class II-AR-2 Cap Contract;

                                    (3) the amount by which the sum of the Net
                           WAC Rate Carryover Amounts with respect to the Class
                           II-MR-1 Certificates exceeds the sum of any amounts
                           received by the Securities Administrator with respect
                           to the Class II-MR-1 Cap Contract;

                                    (4) the amount by which the sum of the Net
                           WAC Rate Carryover Amounts with respect to the Class
                           II-MR-2 Certificates exceeds the sum of any amounts
                           received by the Securities Administrator with respect
                           to the Class II-MR-2 Cap Contract;

                                    (5) the amount by which the sum of the Net
                           WAC Rate Carryover Amounts with respect to the Class
                           II-MR-3 Certificates exceeds the sum of any amounts
                           received by the Securities Administrator with respect
                           to the Class II-MR-3 Cap Contract;

                  (F)      to the Holders of the Class II-CE Certificates, the
                           related Interest Distribution Amount and any related
                           Overcollateralization Reduction Amount for such
                           Distribution Date; and

                  (G)      to the Holders of the Class R Certificates, in
                           respect of the Component R-3, any remaining amounts;
                           provided that if such Distribution Date is

                                      -94-
<PAGE>

                           the Distribution Date immediately following the
                           expiration of the latest Prepayment Charge term on
                           the Group II Loans as identified on the 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.

         On each Distribution Date, after making the required distributions of
interest and principal to the Group II Certificates as described in Section
4.3(a)(i) and (ii) above and after the distribution of the related Net Monthly
Excess Cashflow with respect to the Group II Loans as described in Section
4.3(a)(iii), the Securities Administrator will withdraw from the Group II
Reserve Fund the amounts on deposit therein and distribute such amounts to the
Group II Senior Certificates and the Group II Mezzanine Certificates, in respect
of any Net WAC Rate Carryover Amounts in the following manner and order of
priority: first, concurrently to the Group II Senior Certificates, on a pro rata
basis, the related Net WAC Rate Carryover Amount for such Distribution Date for
each such Class; second, to the Class II-MR-1 Certificates, the related Net WAC
Rate Carryover Amount for such Distribution Date for such Class; third, to the
Class II-MR-2 Certificates, the related Net WAC Rate Carryover Amount for such
Distribution Date for such Class; and fourth, to the Class II-MR-3 Certificates,
the related Net WAC Rate Carryover Amount for such Distribution Date for such
Class.

                  (iv) (A) On each Distribution Date (a) prior to the Group II
         Stepdown Date or (b) on which a Group II Trigger Event is in effect,
         the related Extra Principal Distribution Amount shall be distributed in
         the following order of priority:

                           (1) first, concurrently to the Holders of Group II
                  Senior Certificates, on a pro rata basis based on the
                  Certificate Principal Balance of each such Class, until the
                  Certificate Principal Balance of each such Class has been
                  reduced to zero;

                           (2) second, to the Holders of the Class II-MR-1
                  Certificates, until the Certificate Principal Balance of such
                  Certificates has been reduced to zero;

                           (3) third, to the Holders of the Class II-MR-2
                  Certificates, until the Certificate Principal Balance of such
                  Certificates has been reduced to zero; and

                           (4) fourth, to the Holders of the Class II-MR-3
                  Certificates, until the Certificate Principal Balance of such
                  Certificates has been reduced to zero.

         (B)      On each Distribution Date (a) on or after the Group II
                  Stepdown Date and (b) on which a Group II Trigger Event is not
                  in effect, distributions of principal to the extent of the
                  related Extra Principal Distribution Amount shall be
                  distributed in the following order of priority:

                                      -95-
<PAGE>

                           (1) first, concurrently (a) the lesser of (x) the
                  Group II-1 Principal Distribution Amount and (y) the Class
                  II-AR-1 Principal Distribution Amount, shall be distributed to
                  the Holders of the Class II-AR-1 Certificates until the
                  Certificate Principal Balance of the Class II-AR-1
                  Certificates has been reduced to zero and (b) the lesser of
                  (x) the Group II-2 Principal Distribution Amount and (y) the
                  Class II-AR-2 Principal Distribution Amount, shall be
                  distributed to the Holders of the Class II-AR-2 Certificates
                  until the Certificate Principal Balance of the Class II-AR-2
                  Certificates has been reduced to zero;

                           (2) second, the lesser of (x) the excess of (i) the
                  Group II Principal Distribution Amount over (ii) the amount
                  distributed to the Holders of the Group II Senior Certificates
                  under clause (1) immediately above, and (y) the Class II-MR-1
                  Principal Distribution Amount, shall be distributed to the
                  Holders of the Class II-MR-1 Certificates until the
                  Certificate Principal Balance of the Class II-MR-1
                  Certificates has been reduced to zero;

                           (3) third, the lesser of (x) the excess of (i) the
                  Group II Principal Distribution Amount over (ii) the sum of
                  the amounts distributed to the Holders of the Group II Senior
                  Certificates and Class II-MR-1 Certificates under clauses (1)
                  and (2) immediately above, and (y) the Class II-MR-2 Principal
                  Distribution Amount, shall be distributed to the Holders of
                  the Class II-MR-2 Certificates until the Certificate Principal
                  Balance of the Class II-MR-2 Certificates has been reduced to
                  zero; and

                           (4) fourth, the lesser of (x) the excess of (i) the
                  Group II Principal Distribution Amount and (ii) the sum of the
                  amounts distributed to the Holders of the Group II Senior,
                  Class II-MR-1 and Class II-MR-2 Certificates under clauses
                  (1), (2) and (3) immediately above and (y) the Class II-MR-3
                  Principal Distribution Amount, shall be distributed to the
                  Holders of the Class II-MR-3 Certificates until the
                  Certificate Principal Balance of the Class II-MR-3
                  Certificates has been reduced to zero.

                  (v) On each Distribution Date, the Securities Administrator
         shall withdraw any amounts then on deposit in the related Distribution
         Account that represent Prepayment Charges received on the Group II
         Loans and shall distribute such amounts to the Holders of the Class
         II-P Certificateholders.

         Section 4.4 ALLOCATION OF REALIZED LOSSES ON THE GROUP II LOANS.

         Prior to each Distribution Date, the Master Servicer, based solely on
the information provided by the related Servicer, shall determine the amount of
Realized Losses, if any, with respect to the Group II Loans.

                                      -96-
<PAGE>

         Realized Losses on the Group II Loans for any Distribution Date will
first, cause a reduction in the related Net Monthly Excess Cash Flow for that
Distribution Date and second, cause a reduction in the Certificate Principal
Balance of the Class II-CE Certificates for that Distribution Date, until the
Certificate Principal Balance thereof has been reduced to zero. To the extent
that Realized Losses on the Group II Loans on a Distribution Date cause the
aggregate Certificate Principal Balance of the Group II Senior Certificates and
the Group II Mezzanine Certificates, after taking into account all distributions
on such Distribution Date to exceed the aggregate Principal Balance of the Group
II Loans as of the last day of the related Due Period, such excess will be
allocated first, to the Class II-MR-3 Certificates; second, to the Class II-MR-2
Certificates; and third, to the Class II-MR-1 Certificates in each case to
reduce the Certificate Principal Balance thereof until it has been reduced to
zero. In addition, to the extent the related Servicer receives Subsequent
Recoveries with respect to any defaulted Group II Loan, the amount of the
Realized Loss with respect to that defaulted Group II Loan will be reduced to
the extent such recoveries are applied to reduce the Certificate Principal
Balance of any class of Group II Certificates on any Distribution Date.

         Any allocation of a Realized Loss on a Group II Loan to a Group II
Mezzanine Certificate on any Distribution Date shall be made by reducing the
Certificate Principal Balance thereof by the amount so allocated as of such
Distribution Date after all distributions on such Distribution Date have been
made. Any allocation of Realized Losses on a Group II Loan to a Class II-CE
Certificate shall be made by reducing the amount otherwise payable in respect
thereof pursuant to Section 4.3(a)(iii)(F). No allocations of Realized Losses
shall be made to the Group II Senior Certificates or the Class II-P
Certificates. Notwithstanding anything to the contrary in this Agreement, in no
event will the Certificate Principal Balance of any Group II Mezzanine
Certificate be reduced more than once in respect of any particular amount both
(i) allocable to the Group II Mezzanine Certificate in respect of Realized
Losses and (ii) payable as principal to the Holder of the Certificate from the
related Net Monthly Excess Cashflow.

         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 allocated among the Certificates of such Class in
proportion to the Percentage Interests evidenced thereby.

         In the event that the related Servicer collects any Subsequent Recovery
with respect to a defaulted Group II Liquidated Loan with respect to which a
Realized Loss has been incurred, such Subsequent Recovery will be distributed as
part of the Group II Available Distribution Amount in accordance with the
priorities described under Section 4.3. Additionally, the Certificate Principal
Balance of each class of Group II Mezzanine Certificates that has been reduced
by the allocation of a Realized Loss to such Certificate will be increased, in
order of seniority, by the amount of such Subsequent Recovery, but not in excess
of the amount of any Realized Losses previously allocated to such Class of
Certificates. Holders of such Certificates will not be entitled to any payment
in respect of current interest on the amount of such increases for any Interest
Accrual Period preceding the Distribution Date on which such increase occurs.

                                      -97-
<PAGE>

         The principal portion of all Realized Losses on the Group II Loans
shall be allocated on each Distribution Date to REMIC II Regular Interest
LTII-1, REMIC II Regular Interest LTII-2 and REMIC II Regular Interest LTII-P,
until the Uncertificated Principal Balances have been reduced to zero.

         The REMIC III Group II Marker Allocation Percentage of all Realized
Losses on the REMIC II Regular Interests shall be allocated on each Distribution
Date to the following REMIC III Regular Interests in the specified percentages,
as follows: first, to Uncertificated Accrued Interest payable to the REMIC III
Regular Interest LTIII-2AA and REMIC III Regular Interest LTIII-2ZZ up to an
aggregate amount equal to the REMIC III Group II Interest Loss Allocation
Amount, 98% and 2%, respectively; second, to the Uncertificated Principal
Balances of the REMIC III Regular Interest LTIII-2AA and REMIC III Regular
Interest LTIII-2ZZ up to an aggregate amount equal to the REMIC III Group II
Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the
Uncertificated Principal Balances of REMIC III Regular Interest LTIII-2AA, 98%,
to REMIC III Regular Interest LTIII-2MR3, 1% and to REMIC III Regular Interest
LTIII-2ZZ, 1%, respectively, until the Uncertificated Principal Balance of REMIC
III Regular Interest LTIII-2MR3 has been reduced to zero; fourth, to the
Uncertificated Principal Balances of REMIC III Regular Interest LTIII-2AA, REMIC
III Regular Interest LTIII-2MR2 and REMIC III Regular Interest LTIII-2ZZ, 98%,
1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC III
Regular Interest LTIII-2MR2 has been reduced to zero; and fifth, to the
Uncertificated Principal Balances of REMIC III Regular Interest LTIII-2AA, REMIC
III Regular Interest LTIII-2MR1 and REMIC III Regular Interest LTIII-2ZZ, 98%,
1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC III
Regular Interest LTIII-2MR1 has been reduced to zero.

         The REMIC III Sub WAC Allocation Percentage of all Realized Losses on
the Group II Loans shall be applied after all distributions have been made on
each Distribution Date first, so as to keep the Uncertificated Principal Balance
of each REMIC III Group II Regular Interest ending with the designation "GRP"
equal to 0.01% of the aggregate Stated Principal Balance of the Group II Loans;
second, to each REMIC III Regular Interest ending with the designation "SUB," so
that the Uncertificated Principal Balance of each such REMIC III Regular
Interest is equal to 0.01% of the excess of (x) the aggregate Stated Principal
Balance of the Group II Loans over (y) the current Certificate Principal Balance
of the Group II Senior Certificates (except that if any such excess is a larger
number than in the preceding distribution period, the least amount of Realized
Losses shall be applied to such REMIC III Regular Interests such that the REMIC
III Subordinated Balance Ratio is maintained); and third, any remaining Realized
Losses on the Group II Loans shall be allocated to REMIC III Regular Interest
LTIII-2XX.

         Section 4.5 EFFECT OF DISTRIBUTIONS AND REALIZED LOSSES; FINAL
DISTRIBUTIONS ON CERTIFICATES.

                  (a) All reductions in the Certificate Principal Balance of a
Certificate effected by distributions of principal or allocations of Realized
Losses with respect to Group I Loans or Group II Loans, as applicable, made on
any Distribution Date shall be binding upon all Holders of such Certificate and
of any Certificate issued upon the registration of transfer or exchange therefor
or in lieu thereof, whether or not such distribution is noted on such
Certificate. The final distribution of principal of each Certificate (and the
final distribution with respect to the Class R

                                      -98-
<PAGE>

Certificate upon termination of the Trust Fund) shall be payable in the manner
provided in Sections 4.1 and 4.3 only upon presentation and surrender thereof on
or after the Distribution Date therefor at the office or agency of the
Securities Administrator specified in the notice delivered pursuant to Section
4.5(b) or Section 9.1.

                  (b) Whenever, on the basis of Curtailments, Payoffs and
Monthly Payments on the Group I Loans or Group II Loans, as applicable, and
related Insurance Proceeds and Liquidation Proceeds received and expected to be
received during the applicable Prepayment Period, the Securities Administrator
believes that the entire remaining unpaid Certificate Principal Balance of any
Class of Certificates shall become distributable on the next Distribution Date,
the Securities Administrator shall, no later than the Determination Date of the
month of such Distribution Date, mail or cause to be mailed to each Person in
whose name a Certificate to be so retired is registered at the close of business
on the Record Date, to the Underwriter and to each Rating Agency a notice to the
effect that:

                  (i) it is expected that funds sufficient to make such final
         distribution shall be available in the related Distribution Account on
         such Distribution Date, and

                  (ii) if such funds are available, (A) such final distribution
         shall be payable on such Distribution Date, but only upon presentation
         and surrender of such Certificate at the office or agency of the
         Securities Administrator maintained for such purpose (the address of
         which shall be set forth in such notice), and (B) no interest shall
         accrue on such Certificate after such Distribution Date.

         Section 4.6 STATEMENTS TO CERTIFICATEHOLDERS.

                  (a) On each Distribution Date, the Securities Administrator
shall provide or make available, upon request to each Holder of a Group I
Certificate, Ambac and the Credit Risk Manager, a statement (each, a "Remittance
Report") 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 Group I Certificates of each Class allocable
         to principal and the amount of the distribution made on such
         Distribution Date to the Holders of the Class I-P Certificates
         allocable to Prepayment Charges;

                  (ii) the amount of the distribution made on such Distribution
         Date to the Holders of the Group I Certificates of each Class allocable
         to interest;

                  (iii) The aggregate Servicing Fee received by the related
         Servicer and Master Servicing Fee received by the Master Servicer
         during the related Due Period with respect to the Group I Loans;

                  (iv) The number and aggregate Principal Balance of the Group I
         Loans delinquent 31-60 days, 61-90 days or 91 or more days;

                  (v) The (A) number and aggregate Principal Balance of Group I
         Loans with respect to which foreclosure proceedings have been
         initiated, and (B) number and

                                      -99-
<PAGE>

         aggregate Principal Balance of Mortgaged Properties related to the
         Group I Loans acquired through foreclosure, deed in lieu of foreclosure
         or other exercise of rights respecting the Trustee's security interest
         in the Group I Loans;

                  (vi) The aggregate Principal Balance of the Group I Loans as
         of the close of business on the last day of the related Prepayment
         Period;

                  (vii) The aggregate amount of Principal Prepayments on the
         Group I Loans made during the related Prepayment Period and the
         aggregate amount of any Prepayment Charges received in respect thereof;

                  (viii) The amount of Realized Losses with respect to the Group
         I Loans allocable to the Group I Certificates on the related
         Distribution Date and the cumulative amount of Realized Losses incurred
         on the Group I Loans and allocated to the Group I Certificates since
         the Cut-Off Date;

                  (ix) The amount of interest accrued but not paid to each Class
         of Group I Certificates entitled to interest since (a) the prior
         Distribution Date and (b) the Closing Date;

                  (x) The amount of funds advanced related to the Group I Loans
         by the related Servicer and the Master Servicer for such Distribution
         Date;

                  (xi) The total amount of Payoffs and Curtailments related to
         the Group I Loans received during the related Prepayment Period;

                  (xii) With respect to any Group I Loan that became an REO
         Property during the preceding calendar month, the loan number of such
         Group I Loan, the unpaid principal balance and the Scheduled Principal
         Balance of such Group I Loan;

                  (xiii) To the extent provided by the related Servicer, the
         book value of any Group I REO Property as of the close of business on
         the last Business Day of the calendar month preceding the Distribution
         Date;

                  (xiv) The aggregate amount of extraordinary Trust Fund
         expenses withdrawn from the Distribution Account related to the Group I
         Loans for such Distribution Date;

                  (xv) The Certificate Principal Balance of each Class of Group
         I Certificates, after giving effect to the distributions and
         allocations of Group I Realized Losses made on such Distribution Date,
         separately identifying any reduction thereof due to allocations of
         Group I Realized Losses;

                  (xvi) The aggregate amount of any Prepayment Interest
         Shortfalls and Curtailment Shortfalls related to the Group I Loans for
         such Distribution Date, to the extent not covered by payments by the
         Master Servicer pursuant to Section 3.20;

                                     -100-
<PAGE>

                  (xvii) The aggregate amount of Relief Act Interest Shortfalls
         related to the Group I Loans for such Distribution Date;

                  (xviii) The Group I Required Overcollateralization Amount and
         the Group I Credit Enhancement Percentage for such Distribution Date;

                  (xix) The Overcollateralization Increase Amount related to the
         Group I Certificates, if any, for such Distribution Date;

                  (xx) The Overcollateralization Reduction Amount related to the
         Group I Certificates, if any, for such Distribution Date;

                  (xxi) The Net WAC Rate Carryover Amount, if any, for such
         Distribution Date;

                  (xxii) The Net WAC Rate Carryover Amount, if any, outstanding
         after reimbursements therefor on such Distribution Date and any amounts
         received under the Class I-A-1 Cap Contract;

                  (xxiii) The respective Pass-Through Rates applicable to each
         Class of Group I Certificates for such Distribution Date;

                  (xxiv) The amount of any deposit to the Group I Reserve Fund
         contemplated by Section 3.25;

                  (xxv) The balance of the Group I Reserve Fund prior to the
         deposit or withdrawal of any amounts on such Distribution Date;

                  (xxvi) The amount of any withdrawal from the Group I Reserve
         Fund pursuant to the last paragraph of Section 4.1(a)(iii);

                  (xxvii) The balance of the Group I Reserve Fund after all
         deposits and withdrawals on such Distribution Date; and

                  (xxviii) The amount of any Guaranteed Distribution paid on
         such Distribution Date, the amount of any Reimbursement Amount paid to
         Ambac on such Distribution Date pursuant to Section 4.1(a)(iii)(B) and
         the amount of any Reimbursement Amount remaining after giving effect to
         any such payments to Ambac.

                  (b) On each Distribution Date, the Securities Administrator
shall provide or make available, upon request to each Holder of a Group II
Certificate and the Credit Risk Manager, a statement (each, a "Remittance
Report") 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 Group II Certificates of each Class
         allocable to principal and the amount of the distribution made on such
         Distribution Date to the Holders of the Class II-P Certificates
         allocable to Prepayment Charges;

                                     -101-
<PAGE>

                  (ii) the amount of the distribution made on such Distribution
         Date to the Holders of the Group II Certificates of each Class
         allocable to interest;

                  (iii) The aggregate Servicing Fee received by the related
         Servicer and Master Servicing Fee received by the Master Servicer
         during the related Due Period;

                  (iv) The number and aggregate Principal Balance of the Group
         II Loans delinquent 31-60 days, 61-90 days or 91 or more days;

                  (v) The (A) number and aggregate Principal Balance of Group II
         Loans with respect to which foreclosure proceedings have been
         initiated, and (B) number and aggregate Principal Balance of Mortgaged
         Properties related to the Group II Loans acquired through foreclosure,
         deed in lieu of foreclosure or other exercise of rights respecting the
         Trustee's security interest in the Group II Loans;

                  (vi) The aggregate Principal Balance of the Group II Loans as
         of the close of business on the last day of the related Prepayment
         Period;

                  (vii) The aggregate amount of Principal Prepayments on the
         Group II Loans made during the related Prepayment Period and the
         aggregate amount of any Prepayment Charges received in respect thereof;

                  (viii) The amount of Realized Losses with respect to the Group
         II Loans allocable to the Group II Certificates on the related
         Distribution Date and the cumulative amount of Realized Losses incurred
         on the Group II Loans and allocated to the Group II Certificates since
         the Cut-Off Date;

                  (ix) The amount of interest accrued but not paid to each Class
         of Group II Certificates entitled to interest since (a) the prior
         Distribution Date and (b) the Closing Date;

                  (x) The amount of funds advanced related to the Group II Loans
         by the related Servicer and the Master Servicer for such Distribution
         Date;

                  (xi) The total amount of Payoffs and Curtailments related to
         the Group II Loans received during the related Prepayment Period;

                  (xii) With respect to any Group II Loan that became an REO
         Property during the preceding calendar month, the loan number of such
         Group II Loan, the unpaid principal balance and the Scheduled Principal
         Balance of such Group II Loan;

                  (xiii) To the extent provided by the related Servicer, the
         book value of any Group II REO Property as of the close of business on
         the last Business Day of the calendar month preceding the Distribution
         Date;

                  (xiv) The aggregate amount of extraordinary Trust Fund
         expenses withdrawn from the Distribution Account related to the Group
         II Loans for such Distribution Date;

                                     -102-
<PAGE>

                  (xv) The Certificate Principal Balance of each Class of Group
         II Certificates, after giving effect to the distributions and
         allocations of Group II Realized Losses made on such Distribution Date,
         separately identifying any reduction thereof due to allocations of
         Group II Realized Losses;

                  (xvi) The aggregate amount of any Prepayment Interest
         Shortfalls and Curtailment Shortfalls related to the Group II Loans for
         such Distribution Date, to the extent not covered by payments by the
         Master Servicer pursuant to Section 3.20;

                  (xvii) The aggregate amount of Relief Act Interest Shortfalls
         related to the Group II Loans for such Distribution Date.

                  (xviii) The Group II Required Overcollateralization Amount and
         the Group II Credit Enhancement Percentage for such Distribution Date;

                  (xix) The Overcollateralization Increase Amount related to the
         Group II Certificates, if any, for such Distribution Date;

                  (xx) The Overcollateralization Reduction Amount related to the
         Group II Certificates, if any, for such Distribution Date;

                  (xxi) The Net WAC Rate Carryover Amount, if any, for such
         Distribution Date;

                  (xxii) The Net WAC Rate Carryover Amount, if any, outstanding
         after reimbursements therefor on such Distribution Date and any amounts
         received under the Cap Contracts (other than the Class I-A-1 Cap
         Contract);

                  (xxiii) The respective Pass-Through Rates applicable to each
         Class of Group II Certificates for such Distribution Date;

                  (xxiv) The amount of any deposit to the Group II Reserve Fund
         contemplated by Section 3.25;

                  (xxv) The balance of the Group II Reserve Fund prior to the
         deposit or withdrawal of any amounts on such Distribution Date;

                  (xxvi) The amount of any withdrawal from the Group II Reserve
         Fund pursuant to the last paragraph of Section 4.3(a)(iii); and

                  (xxvii) The balance of the Group II Reserve Fund after all
         deposits and withdrawals on such Distribution Date.

                  (c) The Securities Administrator shall make such statements
(and, at its option, any additional files containing the same information in an
alternative format) in one report available each month to both the
Certificateholders of the Group I Certificates and the Certificateholders of the
Group II Certificates, the Trustee, Ambac and the Rating Agencies via the
Securities Administrator's internet website. The Securities Administrator's
internet website shall initially be located at http:\\www.ctslink.com and
assistance in using the website can be

                                     -103-
<PAGE>

obtained by calling the Securities Administrator's customer service desk at
1-301-815-6600. Parties that are unable to use the above distribution option are
entitled to have a paper copy mailed to them via first class mail by calling the
customer service desk and indicating such. The Securities Administrator shall
have the right to change the way such statements are distributed in order to
make such distribution more convenient and/or more accessible to the above
parties and the Securities Administrator shall provide timely and adequate
notification to all above parties regarding any such changes.

         In the case of information furnished pursuant to subclauses (a)(i),
(b)(i), (a)(ii) and (b)(ii) 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 Securities Administrator shall furnish to each Person who at any time during
the calendar year was a Holder of a Regular Interest Certificate a statement
containing the information set forth in subclauses (a)(i), (b)(i), (a)(ii) and
(b)(ii) above, aggregated for such calendar year or applicable portion thereof
during which such person was a Certificateholder. Such obligation of the
Securities Administrator shall be deemed to have been satisfied to the extent
that substantially comparable information shall be provided by the Securities
Administrator 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 Securities Administrator shall furnish to 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.

         The Securities Administrator shall, upon request, furnish to each
Certificateholder, 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.

         On each Distribution Date the Securities Administrator 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 Securities Administrator and Bloomberg.

         Section 4.7 ADVANCES.

         If the Monthly Payment on a Loan or a portion thereof is delinquent as
of its Due Date, other than as a result of interest shortfalls due to bankruptcy
proceedings or application of the Relief Act, and the related Servicer fails to
make an advance of the delinquent amount pursuant to the related Servicing
Agreement, the Master Servicer shall deposit in the related Distribution
Account, from its own funds or from amounts on deposit in such Distribution
Account that are held for future distribution, not later than the related
Distribution Account Deposit Date immediately preceding the related Distribution
Date an amount equal to such delinquency, net of

                                     -104-
<PAGE>

the Servicing Fee and Master Servicing Fee for such Loan except to the extent
the Master Servicer determines any such advance to be nonrecoverable from
Liquidation Proceeds, Insurance Proceeds or future payments on the Loan for
which such Advance was made. Any amounts held for future distribution and so
used shall be appropriately reflected in the Master Servicer's records and
replaced by the Master Servicer by deposit in the related Distribution Account
on or before any future Distribution Account Deposit Date to the extent that the
related Available Distribution Amount for the related Distribution Date
(determined without regard to Advances to be made on the related Distribution
Account Deposit Date) shall be less than the total amount that would be
distributed to the Classes of Certificateholders of Group I Certificates
pursuant to Section 4.1 or Group II Certificates pursuant to Section 4.3, as
applicable, on such Distribution Date if such amounts held for future
distributions had not been so used to make Advances. Subject to the foregoing,
the Master Servicer shall continue to make such Advances through the date that
the related Servicer is required to do so under its Servicing Agreement. In the
event the Master Servicer elects not to make an Advance because the Master
Servicer deems such Advance nonrecoverable pursuant to this Section 4.7, on the
Distribution Account Deposit Date, the Master Servicer shall present an
Officer's Certificate to the Trustee and, with respect to any determination with
respect to a Group I Mortgage Loan, Ambac (i) stating that the Master Servicer
elects not to make an Advance in a stated amount and (ii) detailing the reason
it deems the advance to be nonrecoverable.

         Section 4.8 COMPLIANCE WITH WITHHOLDING REQUIREMENTS.

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

         Section 4.9 REMIC DISTRIBUTIONS.

                  (a) On each Distribution Date, the following amounts, in the
following order of priority and in accordance with the Remittance Report, shall
be distributed by REMIC I to REMIC III on account of the REMIC I Regular
Interests or withdrawn from the related Distribution Account and distributed to
the Holders of the Class R Certificates, as the case may be:

                  (i) first, to the Holders of REMIC I Regular Interest
         LTI-IO-1, REMIC I Regular Interest LTI-IO-2, REMIC I Regular Interest
         LTI-IO-3 and REMIC I Regular Interest LTI-IO-4, 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 the Holders of REMIC I Regular
         Interest LTI-1 and REMIC I Regular Interest LTI-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;

                                     -105-
<PAGE>

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

                  (iii) on each Distribution Date, the remainder of the Group I
         Available Distribution Amount for such Distribution Date after the
         distributions made pursuant to clause (i) and clause (ii) above, first,
         to the Holders of REMIC I Regular Interest LTI-1 until the
         Uncertificated Principal Balance of such REMIC I Regular Interest is
         reduced to zero, and second, sequentially to the Holders of REMIC I
         Regular Interest LTI-IO-1, REMIC I Regular Interest LTI-IO-2, REMIC I
         Regular Interest LTI-IO-3 REMIC I Regular Interest LTI-IO-4, until the
         Uncertificated Principal Balance of each such REMIC I Regular Interest
         is reduced to zero; and

                  (iv) to the Holders of the Class R Certificates (in respect of
         Component R-1), any amounts remaining after the distributions pursuant
         to clauses (i) through (iii) above.

         On each Distribution Date, all amounts representing Prepayment Charges
in respect of the Group I Loans received during the related Prepayment Period
will be distributed by REMIC I to the Holders of REMIC I Regular Interest LTI-P.
The payment of the foregoing amounts to the Holders of REMIC I Regular Interest
LTI-P shall not reduce the Uncertificated Principal Balance thereof.

                  (b) On each Distribution Date, the following amounts, in the
following order of priority and in accordance with the Remittance Report, shall
be distributed by REMIC III to REMIC IV on account of the REMIC III Regular
Interests or withdrawn from the related Distribution Account and distributed to
the Holders of the Class R Certificates, as the case may be:

                  (i) first, to the Holders of REMIC III Regular Interest
         LTIII-IO-A and REMIC Regular Interest LTIII-IO-B, in an amount equal to
         (A) the Uncertificated Accrued Interest for such REMIC III Regular
         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 LTIII-1AA, REMIC III Regular
         Interest LTIII-1A1, REMIC III Regular Interest LTIII-1A2, REMIC III
         Regular Interest LTIII-1A3, REMIC III Regular Interest LTIII-1A4, REMIC
         III Regular Interest LTIII-1A5, REMIC III Regular Interest LTIII-1A6,
         REMIC III Regular Interest LTIII-1A7, REMIC III Regular Interest
         LTIII-1M1, REMIC III Regular Interest LTIII-1M2, REMIC III Regular
         Interest LTIII-1M3, REMIC III Regular Interest LTIII-1ZZ and REMIC III
         Regular Interest LTIII-1P, pro rata, in an amount equal to (A) the
         Uncertificated Accrued Interest for each such REMIC III Group I Regular
         Interest for such Distribution Date, plus (B) any amounts in respect
         thereof remaining unpaid from previous Distribution Dates. Amounts
         payable as Uncertificated Accrued Interest in respect of REMIC III
         Regular Interest LTIII-1ZZ shall be reduced and deferred when the REMIC
         III Group I Overcollateralization Amount is less than the REMIC III
         Group I Overcollateralization Target Amount, by the lesser of (x) the
         amount of such

                                     -106-
<PAGE>

         difference and (y) the REMIC III Group I Regular Interest LTIII-1ZZ
         Maximum Interest Deferral Amount and such amount will be payable to the
         Holders of REMIC III Regular Interest LTIII-1A1, REMIC III Regular
         Interest LTIII-1A2, REMIC III Regular Interest LTIII-1A3, REMIC III
         Regular Interest LTIII-1A4, REMIC III Regular Interest LTIII-1A5, REMIC
         III Regular Interest LTIII-1A6, REMIC III Regular Interest LTIII-1A7,
         REMIC III Regular Interest LTIII-1M1, REMIC III Regular Interest
         LTIII-1M2 and REMIC III Regular Interest LTIII-1M3 in the same
         proportion as the related Overcollateralization Increase Amount is
         allocated to the Corresponding Certificates, provided, however, that
         the Uncertificated Principal Balance of REMIC III Regular Interest
         LTIII-1ZZ is increased by such amount;

                  (ii) second, to the Holders of REMIC III Group I Regular
         Interests, in an amount equal to the remainder of the Group I Available
         Distribution Amount for such Distribution Date after the distributions
         made pursuant to clause (i) above, allocated as follows:

                            to the Holders of REMIC III Regular Interest
                    LTIII-1AA and REMIC III Regular Interest LTIII-1P, 98.00% of
                    such remainder (other than amounts payable under clause (d)
                    below), until the Uncertificated Principal Balance of such
                    REMIC III Regular Interest is reduced to zero, provided,
                    however, that the Uncertificated Principal Balance of REMIC
                    III Regular Interest LTIII-1P shall not be reduced until the
                    Distribution Date in February 2009 or any Distribution Date
                    thereafter, at which point such amount shall be distributed
                    to REMIC III Regular Interest LTIII-1P, until $100 has been
                    distributed pursuant to this clause;

                            to the Holders of REMIC III Regular Interest
                    LTIII-1A1, REMIC III Regular Interest LTIII-1A2, REMIC III
                    Regular Interest LTIII-1A3, REMIC III Regular Interest
                    LTIII-1A4, REMIC III Regular Interest LTIII-1A5, REMIC III
                    Regular Interest LTIII-1A6, REMIC III Regular Interest
                    LTIII-1A7, REMIC III Regular Interest LTIII-1M1, REMIC III
                    Regular Interest LTIII-1M2 and REMIC III Regular Interest
                    LTIII-1M3, 1.00% of such remainder (other than amounts
                    payable under clause (iii) below), in the same proportion as
                    principal payments are allocated to the Corresponding
                    Certificates, until the Uncertificated Principal Balances of
                    such REMIC III Regular Interests are reduced to zero;

                            to the Holders of REMIC III Regular Interest
                    LTIII-1ZZ, 1.00% of such remainder (other than amounts
                    payable under the proviso below), until the Uncertificated
                    Principal Balance of such REMIC III Regular Interest is
                    reduced to zero; then

                           any remaining amount to the Holders of the Class R
                  Certificates (in respect of Component R-3); and

                  (iii) third, to REMIC III Regular Interest LTIII-1P, 100% of
         the amount paid in respect of REMIC I Regular Interest LTI-P;

                                     -107-
<PAGE>

         provided, however, that (i) 98.00% and (ii) 2.00% of any principal
payments that are attributable to a related Overcollateralization Reduction
Amount shall be allocated to Holders of (i) REMIC III Regular Interest LTIII-1AA
and REMIC III Regular Interest LTIII-1P, in that order and (ii) REMIC III
Regular Interest LTIII-1ZZ, respectively; provided that REMIC III Regular
Interest LTIII-1P shall not be reduced until the Distribution Date in November
2008, at which point such amount shall be distributed to REMIC III Regular
Interest LTIII-1P, until $100 has been distributed pursuant to this clause.

                  (c) On each Distribution Date, the following amounts, in the
following order of priority and in accordance with the Remittance Report, shall
be distributed by REMIC II to REMIC III on account of the REMIC II Regular
Interests or withdrawn from the related Distribution Account and distributed to
the Holders of the Class R Certificates, as the case may be:

                  (i) first, to the Holders of REMIC II Regular Interest LTII-1,
         REMIC II Regular Interest LTII-2 and REMIC I Regular Interest LTII-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;

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

                  (iii) to the extent of amounts remaining after the
         distributions made pursuant to clause (i) and (ii) above, to the Holder
         of REMIC I Regular Interest LTII-1 and REMIC II Regular Interest
         LTII-2, until the Uncertificated Principal Balances of such REMIC II
         Regular Interests are reduced to zero; and

                  (iv) to the Holders of the Class R Certificates (in respect of
         Component R-2), any amounts remaining after the distributions pursuant
         to clauses (i) through (iii) above.

                  (d) On each Distribution Date, all amounts representing
Prepayment Charges in respect of the Group II Loans received during the related
Prepayment Period will be distributed by REMIC II to the Holders of REMIC II
Regular Interest LTII-P. The payment of the foregoing amounts to the Holders of
REMIC I Regular Interest LTII-P shall not reduce the Uncertificated Principal
Balance thereof.

                  (e) On each Distribution Date, the following amounts, in the
following order of priority and in accordance with the Remittance Report, shall
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, as the case may be:

                  (i) first, to Holders of REMIC III Regular Interest LTIII-2AA,
         REMIC III Regular Interest LTIII-2AR1, REMIC III Regular Interest
         LTIII-2AR2, REMIC III Regular Interest LTIII-2MR1, REMIC III Regular
         Interest LTIII-2MR2, REMIC III Regular Interest LTIII-2MR3, REMIC III
         Regular Interest LTIII-2ZZ and REMIC III

                                     -108-
<PAGE>

         Regular Interest LTIII-2P, pro rata, in an amount equal to (A) the
         Uncertificated Accrued Interest for each such REMIC III Group II
         Regular Interest for such Distribution Date, plus (B) any amounts in
         respect thereof remaining unpaid from previous Distribution Dates.
         Amounts payable as Uncertificated Accrued Interest in respect of REMIC
         III Regular Interest LTIII-2ZZ shall be reduced and deferred when the
         REMIC III Group II Overcollateralization Amount is less than the REMIC
         III Group II Overcollateralization Target Amount, by the lesser of (x)
         the amount of such difference and (y) the REMIC III Group II Regular
         Interest LTIII-2ZZ Maximum Interest Deferral Amount and such amount
         will be payable to the Holders of REMIC III Regular Interest
         LTIII-2AR1, REMIC III Regular Interest LTIII-2AR2, REMIC III Regular
         Interest LTIII-2MR1, REMIC III Regular Interest LTIII-2MR2, REMIC III
         Regular Interest LTIII-2MR3 in the same proportion as the related
         Overcollateralization Increase Amount is allocated to the Corresponding
         Certificates, provided, however, that the Uncertificated Principal
         Balance of REMIC III Regular Interest LTIII-2ZZ is increased by such
         amount;

                  (ii) to Holders of REMIC III Regular Interest LTIII-2SUB1,
         REMIC III Regular Interest LTIII-2GRP1, REMIC III Regular Interest
         LTIII-2SUB2, REMIC III Regular Interest LTIII-2GRP2 and REMIC III
         Regular Interest LTIII-2XX, PRO RATA, in an amount equal to (A) the
         Uncertificated Accrued Interest for such Distribution Date, plus (B)
         any amounts in respect thereof remaining unpaid from previous
         Distribution Dates;

                  (iii) second, to the Holders of REMIC III Group II Regular
         Interests, in an amount equal to the REMIC III Group II Marker
         Allocation Percentage of the remainder of the Available Distribution
         Amount for such Distribution Date after the distributions made pursuant
         to clause (i) above, allocated as follows:

                            to the Holders of REMIC III Regular Interest
                    LTIII-2AA and REMIC III Regular Interest LTIII-2P, 98.00% of
                    such remainder (other than amounts payable under clause (d)
                    below), until the Uncertificated Principal Balance of such
                    REMIC III Regular Interest is reduced to zero, provided,
                    however, that the Uncertificated Principal Balance of REMIC
                    III Regular Interest LTIII-2P shall not be reduced until the
                    Distribution Date in [February 2009] or any Distribution
                    Date thereafter, at which point such amount shall be
                    distributed to REMIC III Regular Interest LTIII-2P, until
                    $100 has been distributed pursuant to this clause;

                            to the Holders of REMIC Regular Interest LTIII-2AR1,
                    REMIC Regular Interest LTIII-2AR2, REMIC III Regular
                    Interest LTIII-2MR1, REMIC III Regular Interest LTIII-2MR2,
                    REMIC III Regular Interest LTIII-2MR3, 1.00% of such
                    remainder (other than amounts payable under clause (d)
                    below), in the same proportion as principal payments are
                    allocated to the Corresponding Certificates, until the
                    Uncertificated Principal Balances of such REMIC III Regular
                    Interests are reduced to zero;

                                     -109-
<PAGE>

                            to the Holders of REMIC III Regular Interest
                    LTIII-2ZZ, 1.00% of such remainder (other than amounts
                    payable under the proviso below), until the Uncertificated
                    Principal Balance of such REMIC III Regular Interest is
                    reduced to zero; then

                           any remaining amount to the Holders of the Class R
                  Certificates (in respect of Component R-3); and

                  (iv) third, to REMIC III Regular Interest LTIII-2P, 100% of
         the amount paid in respect of REMIC I Regular Interest LTI-P;

         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 LTIII-2AA and REMIC
III Regular Interest LTIII-2P, in that order and (ii) REMIC III Regular Interest
LTIII-2ZZ, respectively; provided that REMIC III Regular Interest LTIII-2P shall
not be reduced until the Distribution Date in November 2008, at which point such
amount shall be distributed to REMIC III Regular Interest LTIII-2P, until $100
has been distributed pursuant to this clause.

                  (v) to the Holders of REMIC III Regular Interests, in an
         amount equal to the remainder of the REMIC III Sub WAC Allocation
         Percentage of Group II Available Distribution Amount for such
         Distribution Date after the distributions made pursuant to clause (i)
         above, such that distributions of principal shall be deemed to be made
         to the REMIC III Regular Interests first, so as to keep the
         Uncertificated Principal Balance of each REMIC III Regular Interest
         ending with the designation "GRP" equal to 0.01% of the aggregate
         Stated Principal Balance of the Group II Loans; second, to each REMIC
         III Regular Interest ending with the designation "SUB," so that the
         Uncertificated Balance of each such REMIC III Regular Interest is equal
         to 0.01% of the excess of (x) the aggregate Stated Principal Balance of
         the Group II Loans over (y) the current Certificate Principal Balance
         of the Group II Senior Certificate (except that if any such excess is a
         larger number than in the preceding distribution period, the least
         amount of principal shall be distributed to such REMIC III Regular
         Interests such that the REMIC III Subordinated Balance Ratio is
         maintained); and third, any remaining principal to REMIC III Regular
         Interest LTIII-2XX.

                                     -110-
<PAGE>

                                   ARTICLE V
                                THE CERTIFICATES

         Section 5.1 THE CERTIFICATES.

                  (a) Each of the Certificates shall be substantially in the
forms annexed hereto as exhibits, and shall, on original issue, be executed and
authenticated by the Securities Administrator and delivered by the Trustee to or
upon the receipt of a written order to authenticate from the Depositor
concurrently with the sale and assignment to the Trustee of the Trust Fund. The
Certificates shall be issuable in Authorized Denominations.

         The Certificates shall be executed by manual or facsimile signature on
behalf of the Trust Fund by a Responsible Officer of the Securities
Administrator. Certificates bearing the manual or facsimile signatures of
individuals who were, at the time such signatures were affixed, authorized to
sign on behalf of the Securities Administrator shall bind the Trust Fund,
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 Securities
Administrator substantially in the form provided for herein, and such
authentication upon any Certificate shall be conclusive evidence, and the only
evidence, that such Certificate has been duly authenticated and delivered
hereunder. All Certificates shall be dated the date of their authentication.
Subject to Section 5.3, the Class A Certificates and Class M Certificates shall
be Book-Entry Certificates. On the Closing Date, the Class CE, Class P and Class
R Certificates shall not be Book-Entry Certificates but shall be issued in fully
registered certificate form.

                  (b) Neither the Trustee nor the Securities Administrator shall
have any liability to the Trust Fund and shall be indemnified by the Trust Fund
for, any cost, liability or expense incurred by them arising from a registration
of a Certificate or transfer, pledge sale or other disposition of a Certificate
in reliance upon a certification, Officer's Certificate, affidavit, ruling or
Opinion of Counsel described in this Article V.

         Section 5.2 CERTIFICATES ISSUABLE IN CLASSES; DISTRIBUTIONS OF
PRINCIPAL AND INTEREST; AUTHORIZED DENOMINATIONS. The aggregate principal amount
of the Group I Certificates that may be authenticated and delivered under this
Agreement is limited to the aggregate Principal Balance of the Group I Loans as
of the Cut-Off Date, as specified in the Preliminary Statement to this
Agreement, except for Certificates authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Certificates pursuant
to Section 5.3. The aggregate principal amount of the Group II Certificates that
may be authenticated and delivered under this Agreement is limited to the
aggregate Principal Balance of the Group II Loans as of the Cut-Off Date, as
specified in the Preliminary Statement to this Agreement, except for
Certificates authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Certificates pursuant to Section 5.3. Such
aggregate principal amount shall be allocated among one or more Classes having
designations, types of interests, initial per annum Pass-Through Rates, initial
Certificate Principal Balances and last scheduled Distribution Dates as
specified in the Preliminary Statement to this Agreement. The aggregate
Percentage Interest of each Class of Certificates of which the Certificate
Principal Balance equals zero as of the

                                     -111-
<PAGE>

Cut-Off Date that may be authenticated and delivered under this Agreement is
limited to 100%. Certificates shall be issued in Authorized Denominations.

         Section 5.3 REGISTRATION OF TRANSFER AND EXCHANGE OF CERTIFICATES. (a)
The Securities Administrator shall cause to be kept at its Corporate Trust
Office a Certificate Register in which, subject to such reasonable regulations
as it may prescribe, the Securities Administrator shall provide for the
registration of Certificates and of transfers and exchanges of Certificates as
herein provided.

         Upon surrender for registration of transfer of any Certificate at the
Corporate Trust Office of the Securities Administrator maintained for such
purpose pursuant to the foregoing paragraph for certificate transfer and
surrender purposes, and, in the case of the Class CE Certificates, the Class P
Certificates or the Class R Certificates, upon satisfaction of the conditions
set forth in Sections 5.3(c), (d) and (e) below, as applicable, the Securities
Administrator on behalf of the Trust 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 Securities Administrator shall execute, 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 Securities
Administrator) be duly endorsed by, or be accompanied by a written instrument of
transfer satisfactory to the Trustee and the Securities Administrator duly
executed by, the Holder thereof or his attorney duly authorized in writing.

                  (a) Except as provided herein, the Book-Entry Certificates
shall at all times remain registered in the name of the Depository or its
nominee and at all times: (i) registration of such Certificates may not be
transferred by the Trustee or the Securities Administrator except to another
Depository; (ii) the Depository shall maintain book-entry records with respect
to the Certificate Owners and with respect to ownership and transfers of such
Certificates; (iii) ownership and transfers of registration of such Certificates
on the books of the Depository shall be governed by applicable rules established
by the Depository; (iv) the Depository may collect its usual and customary fees,
charges and expenses from its Depository Participants; (v) the Trustee and the
Securities Administrator shall for all purposes deal with the Depository as
representative of the Certificate Owners of the Certificates for purposes of
exercising the rights of Holders under this Agreement, and requests and
directions for and votes of such representative shall not be deemed to be
inconsistent if they are made with respect to different Certificate Owners; (vi)
the Trustee and the Securities Administrator may rely and shall be fully
protected in relying upon information furnished by the Depository with respect
to its Depository Participants and furnished by the Depository Participants with
respect to indirect participating firms and Persons shown on the books of such
indirect participating firms as direct or indirect Certificate Owners; and (vii)
the direct participants of the Depository shall have no rights under this
Agreement under or with respect to any of the Certificates held on their behalf
by the Depository, and the Depository may be treated by the Trustee, the
Securities Administrator and

                                     -112-
<PAGE>

either the Trustee's or the Securities Administrator's agents, employees,
officers and directors as the absolute owner of the Certificates for all
purposes whatsoever.

         All transfers by Certificate Owners of Book-Entry Certificates shall be
made in accordance with the procedures established by the Depository Participant
or brokerage firm representing such Certificate Owners. Each Depository
Participant shall only transfer Book-Entry Certificates of Certificate Owners
that it represents or of brokerage firms for which it acts as agent in
accordance with the Depository's normal procedures. The parties hereto are
hereby authorized to execute a Letter of Representations with the Depository or
take such other action as may be necessary or desirable to register a Book-Entry
Certificate to the Depository. In the event of any conflict between the terms of
any such Letter of Representation and this Agreement, the terms of this
Agreement shall control.

                  (b) If (i)(x) the Depository or the Depositor advises the
Securities Administrator in writing that the Depository is no longer willing or
able to discharge properly its responsibilities as Depository and (y) the
Securities Administrator or the Depositor is unable to locate a qualified
successor, (ii) the Depositor, at its sole option, with the consent of the
Securities Administrator, elects to terminate the book-entry system through the
Depository or (iii) after the occurrence of a Master Servicer Event of Default,
the Certificate Owners of the Book-Entry Certificates representing Percentage
Interests of such Classes aggregating not less than 66% advise the Securities
Administrator and Depository through the Depository Participants 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 Securities Administrator shall
notify all Holders of Book-Entry Certificates of the occurrence of any such
event and of the availability of definitive, fully registered Certificates
("Definitive Certificates") to Certificate Owners requesting the same. Upon
surrender to the Securities Administrator of the Book-Entry Certificates by the
Depository, accompanied by registration instructions from the Depository for
registration, the Securities Administrator shall, at the Depositor's expense, in
the case of (i) and (ii) above, or the Master Servicer's expense, in the case of
(iii) above, execute on behalf of the Trust and authenticate the Definitive
Certificates. None of the Depositor, the Master Servicer, the Trustee or the
Securities Administrator shall be liable for any delay in delivery of such
instructions and may conclusively rely on, and shall be protected in relying on,
such instructions. Upon the issuance of Definitive Certificates, the Trustee,
the Securities Administrator, the Master Servicer and the Depositor shall
recognize the Holders of the Definitive Certificates as Certificateholders
hereunder.

                  (c) No Transfer of a Class CE Certificate, Class P Certificate
or Class R Certificate shall be made unless such Transfer is made pursuant to an
effective registration statement under the Securities Act and any applicable
state securities laws or such transfer is made pursuant to the requirements of
this Section 5.3 and is exempt from the registration requirements under the
Securities Act and such state securities laws. In the event of any such transfer
in reliance upon an exemption from the Securities Act and such state securities
laws, in order to assure compliance with the Securities Act and such state
securities laws, either (i) the Certificateholder desiring to effect such
Transfer shall certify to the Trustee and the Securities Administrator in
writing the facts surrounding the Transfer in substantially the form set forth
in EXHIBIT D (the "TRANSFEROR CERTIFICATE") and the prospective Transferee shall
certify to the Trustee and the Securities Administrator in writing the facts
surrounding the Transfer by

                                     -113-
<PAGE>

delivering a letter in substantially the form of either EXHIBIT E (the
"Investment Letter") or EXHIBIT F (the "Rule 144A Letter") or (ii) there shall
be delivered to the Trustee, the Depositor and the Securities Administrator an
Opinion of Counsel acceptable to and in form reasonably satisfactory to the
Trustee, the Depositor and the Securities Administrator that such Transfer may
be made pursuant to an exemption from the Securities Act, which Opinion of
Counsel shall not be an expense of the Depositor, the Seller, the Master
Servicer, the Securities Administrator or the Trustee. Each Holder of a Class CE
Certificate, Class P Certificate or Class R Certificate desiring to effect such
Transfer shall, and does hereby agree to, indemnify the Trustee, the Depositor,
the Seller, the Securities Administrator 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.

                  (d) No transfer of a Class CE Certificate, Class P Certificate
or Class R Certificate or any interest therein shall be made to any Plan subject
to ERISA or Section 4975 of the Code (each, a "Plan"), 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 each such Transferee in the form of EXHIBIT G, unless the
Securities Administrator is provided with an Opinion of Counsel for the benefit
of the Depositor, the Master Servicer, the Trustee, the Securities Administrator
and the Master Servicer and on which they may rely which establishes to the
satisfaction of each of them 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, the Securities
Administrator, any Servicer 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, the
Securities Administrator or the Trust Fund. Neither a certification nor an
Opinion of Counsel 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 and the Securities Administrator shall be entitled to
conclusively rely upon a representation (which, upon the request of the Trustee
or the Securities Administrator, shall be a written representation) from the
Depositor of the status of such transferee as an affiliate of the Depositor.

         Each Transferee of a Class M Certificate will be deemed to have
represented by virtue of its purchase or holding of such Certificate (or
interest therein) that either (a) such Transferee is not a Plan or purchasing
such Certificate with Plan Assets, (b) it has acquired and is holding such
Certificate in reliance on Prohibited Transaction Exemption ("PTE") 94-84 or FAN
97-03, as amended by PTE 97-34, 62 Fed. Reg. 39021 (July 21, 1997), PTE 2000-58,
65 Fed. Reg. 67765 (November 13, 2000) and PTE 2002-41 67 Fed. Reg. 54487
(August 22, 2002) (the "Exemption"), and that it understands that there are
certain conditions to the availability of the Exemption including that such
Certificate must be rated, at the time of purchase, not lower than "BBB-" (or
its equivalent) by a Rating Agency or (c) the following conditions are
satisfied: (i) such Transferee is an insurance company, (ii) the source of funds
used to purchase or hold such Certificate (or interest therein) is an "insurance
company general account" (as defined in U.S.

                                     -114-
<PAGE>

Department of Labor Prohibited Transaction Class Exemption ("PTCE") 95-60, and
(iii) the conditions set forth in Sections I and III of PTCE 95-60 have been
satisfied.

         If any Class M Certificate, Class CE Certificate, Class P Certificate
or Class R Certificate or any interest therein is acquired or held in violation
of the provisions of this Section 5.3(d), 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 two
preceding paragraphs shall indemnify and hold harmless the Depositor, the Master
Servicer, the Trustee, the Securities Administrator 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.

                  (e) Each Transferee of a Class R Certificate shall be deemed
by the acceptance or acquisition of the related Ownership Interest to have
agreed to be bound by the following provisions and to have irrevocably appointed
the Depositor or its designee as its attorney-in-fact to negotiate the terms of
any mandatory sale under clause (v) below and to execute all instruments of
transfer and to do all other things necessary in connection with any such sale,
and the rights of each Transferee of a Class R Certificate are expressly subject
to the following provisions:

                  (i) Each such Transferee shall be a Permitted Transferee and
         shall promptly notify the Securities Administrator 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 Securities
         Administrator 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 C 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

                                     -115-
<PAGE>

         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 Securities
         Administrator 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 Securities Administrator received the documents specified
         in clause (iii). The Securities Administrator 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 Securities Administrator shall be distributed and
         delivered by the Securities Administrator to the prior Holder of such
         Class R Certificate that is a Permitted Transferee.

                  (v) If any Person other than a Permitted Transferee acquires
         any Ownership Interest in a Class R Certificate in violation of the
         restrictions in this Section, then the Securities Administrator 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 Securities Administrator to the previous
         Holder of such Class R Certificate that is a Permitted Transferee,
         except that in the event that the Securities Administrator 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 Securities Administrator may withhold a corresponding
         amount from such remittance as security for such claim. The terms and
         conditions of any sale under this clause (v) shall be determined in the
         sole discretion of the Securities Administrator and it shall not be
         liable to any Person having an Ownership Interest in 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 Securities Administrator upon
         receipt of reasonable compensation will provide to the Internal Revenue
         Service, and to the persons specified in Sections 860E(e)(3) and (6) of
         the Code, information needed to compute the tax imposed under Section
         860E(e)(5) of the Code on transfers of Class R interests to
         Disqualified Organizations.

         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 Securities Administrator, in form and substance satisfactory to
the Securities Administrator, (i) written notification from each Rating Agency
that the removal of the restrictions on transfer set forth in this Section will
not cause such Rating Agency to downgrade its rating of the Certificates and
(ii) an Opinion of Counsel to the effect that such removal will not cause any
REMIC created hereunder to fail to

                                     -116-
<PAGE>

qualify as a REMIC. The Holder of the Class R Certificate issued hereunder,
while not a Disqualified Organization, is the Tax Matters Person.

                  (f) No service charge shall be made for any registration of
transfer or exchange of Certificates of any Class, but the Securities
Administrator 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 Securities Administrator and disposed of pursuant to
its standard procedures.

         Section 5.4 MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES.

         If (i) any mutilated Certificate is surrendered to the Trustee or the
Securities Administrator, or (ii) the Trustee or the Securities Administrator
receives evidence to their satisfaction of the destruction, loss or theft of any
Certificate, and there is delivered to the Trustee and the Securities
Administrator such security or indemnity as may be required by them to save each
of them harmless, then, in the absence of notice to the Securities Administrator
that such Certificate has been acquired by a protected purchaser, the Securities
Administrator shall execute, authenticate and deliver, in exchange for or in
lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
Certificate of like Percentage Interest. Upon the issuance of any new
Certificate under this Section 5.4, the Trustee or the Securities Administrator
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 connected therewith. Any replacement Certificate issued pursuant to
this Section 5.4 shall constitute complete and indefeasible evidence of
ownership in the Trust Fund, as if originally issued, whether or not the lost or
stolen Certificate shall be found at any time.

         Section 5.5 PERSONS DEEMED OWNERS.

         The Depositor, the Securities Administrator, the Master Servicer, the
Trustee, Ambac 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 4.1 and 4.3, as applicable, and
for all other purposes whatsoever, and none of the Depositor, the Securities
Administrator, the Master Servicer, the Trustee, Ambac or any agent of the
Depositor, the Securities Administrator, the Master Servicer, the Trustee or
Ambac shall be affected by notice to the contrary.

                                     -117-
<PAGE>

                                   ARTICLE VI
           THE DEPOSITOR, MASTER SERVICER AND THE CREDIT RISK MANAGER

         Section 6.1 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 upon them in their respective capacities as Depositor and
Master Servicer and undertaken hereunder by the Depositor and the Master
Servicer herein.

         Section 6.2 MERGER OR CONSOLIDATION OF THE DEPOSITOR OR THE MASTER
                     SERVICER.

         Subject to the following paragraph, the Depositor shall 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 shall keep in full effect its existence, rights and franchises
as a corporation under the laws of the jurisdiction of its formation. The
Depositor and the Master Servicer each shall obtain and preserve its
qualification to do business as a foreign corporation in each jurisdiction in
which such qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, the Certificates or any of the 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, that the Rating Agencies' ratings of the 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 6.3 LIMITATION ON LIABILITY OF THE DEPOSITOR, THE MASTER
SERVICER, THE SERVICERS, THE SECURITIES ADMINISTRATOR AND OTHERS.

         None of the Depositor, the Master Servicer, the Securities
Administrator, the Servicers or any of the directors, officers, employees or
agents of the Depositor, the Master Servicer, the Securities Administrator or
the Servicers 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 the Servicing Agreements, or
for errors in judgment; provided, however, that this provision shall not protect
the Depositor, the Master Servicer, the Securities Administrator or any such
person against any breach of warranties, representations or covenants made
herein or in the Servicing Agreements, or against any specific liability imposed
on the Master Servicer, the Securities Administrator or the Servicers pursuant
hereto or pursuant to the Servicing Agreements, or against any liability which
would otherwise be imposed by reason of willful misfeasance, bad faith or gross
negligence in the performance of duties or by reason of reckless disregard of
obligations and duties hereunder or under the Servicing Agreements. The
Depositor, the Master Servicer, the Securities Administrator, the Servicers and

                                     -118-
<PAGE>

any director, officer, employee or agent of the Depositor, the Master Servicer,
the Securities Administrator or the Servicers 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 or under the Servicing
Agreements. The Depositor, the Master Servicer, the Servicers, the Securities
Administrator, the Custodian and any director, officer, employee or agent of the
Depositor, the Master Servicer, the Servicers, the Custodian or the Securities
Administrator 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, the Certificates or any Servicing Agreement, or any
loss, liability or expense incurred by any of such Persons other than by reason
of such Person's willful misfeasance, bad faith or gross negligence in the
performance of its duties hereunder or by reason of reckless disregard of its
obligations and duties hereunder. None of the Depositor, the Master Servicer,
the Securities Administrator, the Custodian or any 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, the Custodial
Agreement or the applicable Servicing Agreement and, in its opinion, does not
involve it in any expense or liability; provided, however, that each of the
Depositor, the Master Servicer, the Custodian and the Securities Administrator
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, 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 gross 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 Master Servicer, the Custodian, the Servicers and the Securities
Administrator shall be entitled to be reimbursed therefor from the Distribution
Account as and to the extent provided in Article III, any such right of
reimbursement being prior to the rights of the Certificateholders to receive any
amount in the Distribution Account.

         Section 6.4 LIMITATION ON RESIGNATION OF THE MASTER SERVICER.

         The Master Servicer shall not resign from the obligations and duties
hereby imposed on it except upon determination that its duties hereunder are no
longer permissible under applicable law. Any such determination pursuant to 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 Rating Agencies. No
resignation of the Master Servicer shall become effective until the Trustee or a
successor Master Servicer shall have assumed the Master Servicer's
responsibilities, duties, liabilities (other than those liabilities arising
prior to the appointment of such successor) and obligations under this
Agreement.

         Section 6.5 ASSIGNMENT OF MASTER SERVICING.

         The Master Servicer may sell and assign its rights and delegate its
duties and obligations in its entirety as Master Servicer under this Agreement;
provided, however, that: (i) the purchaser or transferee accepting such
assignment and delegation (a) shall be a Person which shall be qualified to
service mortgage loans for Fannie Mae or Freddie Mac; (b) shall have a net worth
of not less than $15,000,000 (unless otherwise approved by each Rating Agency
pursuant to clause

                                     -119-
<PAGE>

(ii) below); (c) shall be reasonably satisfactory to the Trustee (as evidenced
in a writing signed by the Trustee); and (d) shall execute and deliver to the
Trustee an agreement, in form and substance reasonably satisfactory to the
Trustee, which contains an assumption by such Person of the due and punctual
performance and observance of each covenant and condition to be performed or
observed by it as master servicer under this Agreement, any custodial agreement
from and after the effective date of such agreement; (ii) each Rating Agency
shall be given prior written notice of the identity of the proposed successor to
the Master Servicer and each Rating Agency's rating of the Certificates in
effect immediately prior to such assignment, sale and delegation will not be
downgraded, qualified or withdrawn as a result of such assignment, sale and
delegation, as evidenced by a letter to such effect delivered to the Master
Servicer and the Trustee; and (iii) the Master Servicer assigning and selling
the master servicing shall deliver to the Trustee an officer's certificate and
an Opinion of Independent counsel, each stating that all conditions precedent to
such action under this Agreement have been completed and such action is
permitted by and complies with the terms of this Agreement. No such assignment
or delegation shall affect any liability of the Master Servicer arising prior to
the effective date thereof.

         Section 6.6 RIGHTS OF THE DEPOSITOR IN RESPECT OF THE MASTER SERVICER.

         The Master Servicer shall afford the Depositor and the Trustee, upon
reasonable notice, during normal business hours, access to all records
maintained by the Master Servicer in respect of the Master Servicer's rights and
obligations hereunder and access to officers of the Master Servicer responsible
for such obligations. Upon request, the Master Servicer shall furnish to the
Depositor and the Trustee the most recent financial statements of its parent and
such other information relating to the Master Servicer's capacity to perform its
obligations under this Agreement as it possesses. To the extent such information
is not otherwise available to the public, the Depositor and the Trustee shall
not disseminate any information obtained pursuant to the preceding two sentences
without the Master 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
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 any case, the Depositor 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 6.7 DUTIES OF THE CREDIT RISK MANAGER.

         For and on behalf of the Depositor, pursuant to the Credit Risk
Management Agreements the Credit Risk Manager will provide reports and
recommendations concerning certain

                                     -120-
<PAGE>

delinquent and defaulted Loans, and as to the collection of any Prepayment
Charges with respect to the Loans. Such reports and recommendations will be
based upon information provided to the Credit Risk Manager pursuant to the
related Credit Risk Management Agreement, and the Credit Risk Manager shall look
solely to the related Servicer for all information and data (including loss and
delinquency information and data) relating to the servicing of the related
Loans. Upon any termination of the Credit Risk Manager or the appointment of a
successor Credit Risk Manager, the Depositor shall give written notice thereof
to the Servicers, the Master Servicer, the Trustee, Ambac and each Rating
Agency. Notwithstanding the foregoing, the termination of the Credit Risk
Manager pursuant to this Section shall not become effective until the
appointment of a successor Credit Risk Manager.

         Section 6.8 LIMITATION UPON LIABILITY OF THE CREDIT RISK MANAGER.

         Neither the Credit Risk Manager, nor any of its directors, officers,
employees, or agents shall be under any liability to the Trustee, the
Certificateholders, or the Depositor for any action taken or for refraining from
the taking of any action made in good faith pursuant to this Agreement, in
reliance upon information provided by a Servicer under a Credit Risk Management
Agreement, or for errors in judgment; provided, however, that this provision
shall not protect the Credit Risk Manager or any such person against liability
that would otherwise be imposed by reason of willful malfeasance or bad faith in
its performance of its duties. The Credit Risk Manager and any director,
officer, employee, or agent of the Credit Risk Manager may rely in good faith on
any document of any kind prima facie properly executed and submitted by any
Person respecting any matters arising hereunder, and may rely in good faith upon
the accuracy of information furnished by a Servicer pursuant to a Servicer
Credit Risk Management Agreement in the performance of its duties thereunder and
hereunder.

         Section 6.9 REMOVAL OF THE CREDIT RISK MANAGER.

         The Credit Risk Manager may be removed as Credit Risk Manager by
Certificateholders evidencing, in aggregate, not less than 66 2/3% of the
aggregate Percentage Interests of all Classes of Certificates, in the exercise
of its or their sole discretion. The Certificateholders shall provide written
notice of the Credit Risk Manager's removal to the Trustee. Upon receipt of such
notice, the Trustee shall provide written notice to the Credit Risk Manager of
its removal, which shall be effective upon receipt of such notice by the Credit
Risk Manager.

                                     -121-
<PAGE>

                                  ARTICLE VII
                                     DEFAULT

         Section 7.1 MASTER SERVICER EVENTS OF DEFAULT.

                  (a) "Master Servicer Event of Default," wherever used herein,
means any one of the following events:

                  (i) [Reserved];

                  (ii) any failure on the part of the Master Servicer duly to
         observe or perform in any material respect any other of the covenants
         or agreements on the part of the Master Servicer contained in this
         Agreement, or the breach by the Master Servicer of any representation
         and warranty contained in Section 2.5, which continues unremedied for a
         period of 30 days after 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 Holders of Certificates
         evidencing, in aggregate, not less than 25% of the aggregate
         Certificate Principal Balance of the Certificates; 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 such decree or order shall have remained in force
         undischarged or unstayed for a period of 90 days; 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 it or of or relating to all or substantially all of
         its property; or

                  (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 of the Master Servicer to make any Advance on
         any Distribution Account Deposit Date required to be made from its own
         funds pursuant to Section 4.7 which continues unremedied until 3:00
         p.m. New York time on the Business Day immediately following the
         Distribution Account Deposit Date.

If a Master Servicer Event of Default described in clauses (ii) through (v) 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 or
the Trustee may, and at the written direction of the Holders of Certificates
evidencing, in aggregate, not less than 51% of the aggregate

                                     -122-
<PAGE>

Certificate Principal Balance of the Certificates, 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) with a copy to each Rating Agency,
terminate all of the rights and obligations of the Master Servicer (and the
Securities Administrator if the Master Servicer and the Securities Administrator
are the same entity) in its capacity as Master Servicer (and in its capacity as
Securities Administrator if the Master Servicer and the Securities Administrator
are the same entity) under this Agreement, to the extent permitted by law, and
in and to the Loans and the proceeds thereof. Except as otherwise provided in
Section 7.4, if a Master Servicer Event of Default described in clause (i) or
(vi) 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 (and the Securities Administrator if the Master Servicer and the
Securities Administrator are the same entity) in its capacity as Master Servicer
under this Agreement (and in its capacity as Securities Administrator if the
Master Servicer and the Securities Administrator are the same entity) and in and
to the Loans and the proceeds thereof. On or after the receipt by the Master
Servicer of such written notice, all authority and power of the Master Servicer
(and, if applicable, the Securities Administrator) under this Agreement, whether
with respect to the Certificates (other than as a Holder of any Certificate) or
the 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, (and, if
applicable, the Securities Administrator) 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 Loans and related
documents, or otherwise. The Master Servicer (and, if applicable, the Securities
Administrator) agrees 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 (and, if
applicable, the Securities Administrator's) functions under this Agreement, and
to cooperate with the Trustee in effecting the termination of the Master
Servicer's (and, if applicable, the Securities Administrator's) responsibilities
and rights under this Agreement (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 entitled to the
benefits of Section 6.3, notwithstanding any such termination, with respect to
events occurring prior to such termination). For purposes of this Section 7.1,
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 of any event which is in fact such a Master Servicer Event of
Default is received by the Trustee and such notice references the Certificates,
the Trust or this Agreement. The Trustee shall promptly notify the Rating
Agencies of the occurrence of a Master Servicer Event of Default of which it has
knowledge as provided above.

         Section 7.2 TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR.

         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 (and, if applicable, the Securities Administrator) in its capacity as
Master Servicer (and, if applicable, the Securities Administrator) under this
Agreement and the transactions set forth or provided for herein, and all

                                     -123-
<PAGE>

the responsibilities, duties and liabilities relating thereto and arising
thereafter shall be assumed by the Trustee (except for any representations or
warranties of the Master Servicer under this Agreement, the responsibilities,
duties and liabilities contained in Section 2.3 and the obligation to deposit
amounts in respect of losses pursuant to Section 3.23(c)) by the terms and
provisions hereof including, without limitation, the Master Servicer's
obligations to make Advances no later than each Distribution Date pursuant to
Section 4.7; 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 4.7; 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 7.1 shall not be considered a default by the Trustee as
successor to the Master Servicer hereunder. As compensation therefor, the
Trustee shall be entitled to the Master Servicing Fee and all funds relating to
the Loans, investment earnings on the Distribution Accounts and all other
remuneration to which the Master Servicer would have been entitled if it had
continued to act hereunder. Notwithstanding the above and subject to the
immediately following 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 evidencing, in aggregate, not less than 51% of the aggregate
Certificate Principal Balance of the Certificates so request in writing promptly
appoint or petition a court of competent jurisdiction to appoint, an established
mortgage loan servicing institution acceptable to each Rating Agency 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 (and, if
applicable, the Securities Administrator) under this Agreement shall be
effective until the assumption by the successor of all of the Master Servicer's
(and, if applicable, the Securities Administrator's) responsibilities, duties
and liabilities hereunder. In connection with such appointment and assumption
described herein, the Trustee may make such arrangements for the compensation of
such successor out of payments on Loans as it and such successor shall agree;
PROVIDED, HOWEVER, that no such compensation shall be in excess of that
permitted the Master Servicer (and, if applicable, the Securities Administrator)
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.
The transition costs and expenses incurred by the Trustee in connection with the
replacement of the Master Servicer (and, if applicable, the Securities
Administrator) shall be reimbursed out of the Trust.

         Section 7.3 NOTIFICATION TO CERTIFICATEHOLDERS.

                  (a) Upon any termination of the Master Servicer pursuant to
Section 7.1 above or any appointment of a successor to the Master Servicer
pursuant to Section 7.2 above, the Trustee shall give prompt written notice
thereof to the Certificateholders 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

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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
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 7.4 WAIVER OF MASTER SERVICER EVENTS OF DEFAULT.

         The Holders evidencing, in aggregate, not less than 66 2/3% of the
aggregate Percentage Interests of the 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 (vi) of Section 7.1 may be waived only by
all of the Holders of the Regular Interest Certificates. 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 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 AND THE SECURITIES ADMINISTRATOR

         Section 8.1 DUTIES OF TRUSTEE AND SECURITIES ADMINISTRATOR.

         The Trustee, prior to the occurrence of a Master Servicer Event of
Default and after the curing or waiver of all Master Servicer Events of Default
which may have occurred, and the Securities Administrator each undertake to
perform such duties and only such duties as are specifically set forth in this
Agreement as duties of the Trustee and the Securities Administrator,
respectively. During the continuance of 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 its 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.

         Each of the Trustee and the Securities Administrator, upon receipt of
all resolutions, certificates, statements, opinions, reports, documents, orders
or other instruments furnished to it, 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, the Trustee or the Securities Administrator, as
the case may be, shall take such action as it deems appropriate to have the
instrument corrected, and if the instrument is not corrected to its
satisfaction, the Securities Administrator shall provide notice to the Trustee
thereof and the Trustee shall provide notice to the Certificateholders.

         No provision of this Agreement shall be construed to relieve the
Trustee or the Securities Administrator from liability for its own negligent
action, its own negligent failure to act or its own misconduct; PROVIDED,
HOWEVER, that:

                  (i) Prior to the occurrence of a Master Servicer Event of
         Default, and after the curing or waiver of all such Master Servicer
         Events of Default which may have occurred with respect to the Trustee,
         and at all times with respect to the Securities Administrator, the
         duties and obligations of the Trustee and the Securities Administrator
         shall be determined solely by the express provisions of this Agreement,
         neither the Trustee nor the Securities Administrator shall be liable
         except for the performance of such duties and obligations as are
         specifically set forth in this Agreement, no implied covenants or
         obligations shall be read into this Agreement against the Trustee or
         the Securities Administrator and, in the absence of bad faith on the
         part of the Trustee or the Securities Administrator, respectively, the
         Trustee or the Securities Administrator, respectively, may conclusively
         rely, as to the truth of the statements and the correctness of the
         opinions expressed therein, upon any certificates or opinions furnished
         to the Trustee or the Securities Administrator, respectively, that
         conform to the requirements of this Agreement;

                  (ii) Neither the Trustee nor the Securities Administrator
         shall be liable for an error of judgment made in good faith by a
         Responsible Officer or Responsible Officers of the Trustee or an
         officer or officers of the Securities Administrator,

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         respectively, unless it shall be proved that the Trustee or the
         Securities Administrator, respectively, was negligent in ascertaining
         the pertinent facts; and

                  (iii) Neither the Trustee nor the Securities Administrator
         shall be 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
         Holders of Certificates evidencing, in aggregate, not less than 25% (or
         such other percentage set forth in this Agreement) of the aggregate
         Certificate Principal Balance of the Certificates, relating to the
         time, method and place of conducting any proceeding for any remedy
         available to the Trustee or the Securities Administrator or exercising
         any trust or power conferred upon the Trustee or the Securities
         Administrator under this Agreement.

         Section 8.2 CERTAIN MATTERS AFFECTING TRUSTEE AND SECURITIES
                     ADMINISTRATOR.

                  (a) Except as otherwise provided in Section 8.1:

                  (i) The Trustee and the Securities Administrator may request
         and rely upon and shall be protected in acting or refraining from
         acting upon any resolution, Officers' Certificate, certificate of
         auditors or any other certificate, statement, instrument, opinion,
         report, notice, request, consent, order, appraisal, bond or other paper
         or document reasonably believed by it to be genuine and to have been
         signed or presented by the proper party or parties;

                  (ii) The Trustee and the Securities Administrator may consult
         with counsel of its selection and any advice of such counsel or 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 advice or Opinion
         of Counsel;

                  (iii) Neither the Trustee nor the Securities Administrator
         shall 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, pursuant to the provisions
         of this Agreement, unless such Certificateholders shall have offered to
         the Trustee or the Securities Administrator, as the case may be,
         reasonable security or indemnity 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) Neither the Trustee nor the Securities Administrator
         shall be 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;

                                     -127-
<PAGE>

                  (v) Prior to the occurrence of a Master Servicer Event of
         Default hereunder and after the curing or waiver of all Master Servicer
         Events of Default which may have occurred with respect to the Trustee,
         and at all times with respect to the Securities Administrator, neither
         the Trustee nor the Securities Administrator shall be bound to make any
         investigation into the facts or matters stated in any resolution,
         certificate, statement, instrument, opinion, report, notice, request,
         consent, order, approval, bond or other paper or document, unless
         requested in writing to do so by the Holders of Certificates
         evidencing, in aggregate, not less than 25% of the Trust Fund;
         PROVIDED, HOWEVER, that if -------- ------- the payment within a
         reasonable time to the Trustee or the Securities Administrator of the
         costs, expenses or liabilities likely to be incurred by it in the
         making of such investigation is, in the opinion of the Trustee or the
         Securities Administrator, as applicable, not reasonably assured to the
         Trustee or the Securities Administrator by such Certificateholders, the
         Trustee or the Securities Administrator, as applicable, may require
         reasonable indemnity satisfactory to it against such expense, or
         liability from such Certificateholders 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 the Trustee shall not be responsible
         for any misconduct or negligence on the part of any agent or attorney
         appointed with due care by it hereunder;

                  (vii) The Securities Administrator shall not be liable for any
         loss resulting from the investment of funds held in a Distribution
         Account at the direction of the Master Servicer pursuant to Section
         3.23(c);

                  (viii) Neither the Trustee nor the Securities Administrator
         shall be liable for any action taken, suffered, or omitted to be taken
         by it in good faith and reasonably believed by it to be authorized or
         within the discretion or rights or powers conferred upon it by this
         Agreement;

                  (ix) The Trustee shall not be deemed to have notice of any
         default or Master Servicer Event of Default unless a Responsible
         Officer of the Trustee has actual knowledge thereof or unless written
         notice of any event which is in fact such a default is received by the
         Trustee at the Corporate Trust Office of the Trustee, and such notice
         references the Certificates and this Agreement;

                  (x) The rights, privileges, protections, immunities and
         benefits given to the Trustee, including, without limitation, its right
         to be indemnified, are extended to, and shall be enforceable by, each
         agent, custodian and other Person employed to act hereunder; and

                  (b) The Trustee is hereby directed by the Depositor to execute
each Cap Contract on behalf of the Trust Fund in the form presented to it by the
Depositor and shall have no responsibility for the contents of the Cap
Contracts, including, without limitation, the representations and warranties
contained therein. Any funds payable by the Trustee under the Cap Contracts at
closing shall be paid by the Depositor. Notwithstanding anything to the contrary
contained herein or in the Cap Contracts, the Trustee shall not be required to
make any payments to the counterparty under the Cap Contracts.

                                     -128-
<PAGE>

                  (c) 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 its name for the benefit of all
the Holders of such Certificates, subject to the provisions of this Agreement.

         Section 8.3 TRUSTEE AND SECURITIES ADMINISTRATOR NOT LIABLE FOR
                     CERTIFICATES OR LOANS.

         The recitals contained herein and in the Certificates (other than the
signature of the Securities Administrator, the authentication of the Securities
Administrator on the Certificates, the acknowledgments of the Trustee contained
in Article II and the representations and warranties of the Trustee in Section
8.12) shall be taken as the statements of the Depositor and neither the Trustee
nor the Securities Administrator assumes any responsibility for their
correctness. Neither the Trustee nor the Securities Administrator makes any
representations or warranties as to the validity or sufficiency of this
Agreement (other than as specifically set forth in Section 8.12) or of the
Certificates (other than the signature of the Securities Administrator and
authentication of the Securities Administrator on the Certificates) or of any
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 Loans or deposited in or
withdrawn from the Distribution Account.

         Section 8.4 TRUSTEE, MASTER SERVICER AND SECURITIES ADMINISTRATOR MAY
OWN CERTIFICATES.

         Each of the Trustee, the Master Servicer and the Securities
Administrator in its individual capacity or any other capacity may become the
owner or pledgee of Certificates and may transact business with other interested
parties and their Affiliates with the same rights it would have if it were not
the Trustee, the Master Servicer or the Securities Administrator.

         Section 8.5 FEES AND EXPENSES OF TRUSTEE AND SECURITIES ADMINISTRATOR.

         The fees of the Trustee and the Securities Administrator hereunder and
of Wells Fargo under the Custodial Agreement shall be paid in accordance with a
side letter agreement with the Master Servicer and at the sole expense of the
Master Servicer. In addition, the Trustee, the Securities Administrator, the
Custodian and any director, officer, employee or agent of the Trustee, the
Securities Administrator and the Custodian shall be indemnified by the Trust and
held harmless against any loss, liability or expense (including reasonable
attorney's fees and expenses) incurred by the Trustee or the Securities
Administrator in connection with any default administration to be performed by
the Trustee or the Securities Administrator pursuant to this Agreement or other
agreements related hereto and 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 respective obligations and duties under this
Agreement or the Cap Contracts, including other agreements related hereto, other
than any loss, liability or expense (i) for which the Trustee is indemnified by
the Master Servicer, (ii) that constitutes a specific liability of the Trustee
or the Securities Administrator pursuant to Section 10.1(g) or (iii) any loss,
liability or expense incurred by reason of willful misfeasance, bad faith or
gross negligence in the performance of duties hereunder by reason of reckless
disregard of obligations and duties

                                     -129-
<PAGE>

hereunder. The Master Servicer agrees to indemnify the Trustee, from, and hold
the Trustee harmless against, any loss, liability or expense (including
reasonable attorney's fees and expenses) incurred by the Trustee by reason of
the Master Servicer's willful misfeasance, bad faith or gross negligence in the
performance of its duties under this Agreement or by reason of the Master
Servicer's reckless disregard of its 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 any REMIC therefor.

         Section 8.6 ELIGIBILITY REQUIREMENTS FOR TRUSTEE AND SECURITIES
ADMINISTRATOR.

         The Trustee and the Securities Administrator shall at all times be a
corporation or an association (other than the Depositor, the Seller, 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 (or a member of a bank holding company whose capital and
surplus is 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 or the
Securities Administrator, as applicable, shall cease to be eligible in
accordance with the provisions of this Section, the Trustee or the Securities
Administrator, as applicable, shall resign immediately in the manner and with
the effect specified in Section 8.7.

         Section 8.7 RESIGNATION AND REMOVAL OF TRUSTEE AND SECURITIES
ADMINISTRATOR.

         The Trustee and the Securities Administrator may at any time resign
(including, in the case of the Securities Administrator, in connection with the
resignation or termination of the Master Servicer) and be discharged from the
trust hereby created by giving written notice thereof to the Depositor, to the
Master Servicer, to the Securities Administrator (or the Trustee, if the
Securities Administrator resigns) and to the Certificateholders. Upon receiving
such notice of resignation, the Depositor shall promptly appoint a successor
trustee or successor securities administrator by written instrument, in
duplicate, which instrument shall be delivered to the resigning Trustee or
Securities Administrator, as applicable, and to the successor trustee or
successor securities administrator, as applicable. A copy of such instrument
shall be delivered to the Certificateholders, the Trustee, the Securities
Administrator and the Master Servicer by the Depositor. If no successor trustee
or successor securities administrator shall have been so appointed and have
accepted appointment within 30 days after the giving of such notice of
resignation, the resigning Trustee or Securities Administrator, as the case may
be, may, at the expense of the Trust Fund, petition any court of competent
jurisdiction for the appointment of a successor trustee, successor securities
administrator, Trustee or Securities Administrator, as applicable.

         If at any time the Trustee or the Securities Administrator shall cease
to be eligible in accordance with the provisions of Section 8.6 and shall fail
to resign after written request

                                     -130-
<PAGE>

therefor by the Depositor, or if at any time the Trustee or the Securities
Administrator shall become incapable of acting, or shall be adjudged bankrupt or
insolvent, or a receiver of the Trustee or the Securities Administrator or of
its property shall be appointed, or any public officer shall take charge or
control of the Trustee or the Securities Administrator or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation, then the
Depositor may remove the Trustee or the Securities Administrator, as applicable
and appoint a successor trustee or successor securities administrator, as
applicable, by written instrument, in duplicate, which instrument shall be
delivered to the Trustee or the Securities Administrator so removed and to the
successor trustee or successor securities administrator.

         The Holders of Certificates evidencing, in aggregate, not less than 51%
of the Certificate Principal Balance of the Certificates may at any time remove
the Trustee or the Securities Administrator and appoint a successor trustee or
successor securities administrator 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 or the Securities Administrator so removed and one
complete set to the successor so appointed. A copy of such instrument shall be
delivered to the Certificateholders, the Trustee (in the case of the removal of
the Securities Administrator), the Securities Administrator (in the case of the
removal of the Trustee) and the Master Servicer by the Depositor. All costs and
expenses incurred by the Trustee in connection with its removal without cause
hereunder shall be reimbursed to it by the Trust Fund.

         Any resignation or removal of the Trustee or the Securities
Administrator and appointment of a successor trustee or successor securities
administrator pursuant to any of the provisions of this Section shall not become
effective until acceptance of appointment by the successor trustee or successor
securities administrator, as applicable, as provided in Section 8.8.

         Notwithstanding anything to the contrary contained herein, the Master
Servicer and the Securities Administrator shall at all times be the same Person.

         Section 8.8 SUCCESSOR TRUSTEE OR SECURITIES ADMINISTRATOR.

         Any successor trustee or successor securities administrator appointed
as provided in Section 8.7 shall execute, acknowledge and deliver to the
Depositor and its predecessor trustee or predecessor securities administrator an
instrument accepting such appointment hereunder, and thereupon the resignation
or removal of the predecessor trustee or predecessor securities administrator
shall become effective and such successor trustee or successor securities
administrator without any further act, deed or conveyance, shall become fully
vested with all the rights, powers, duties and obligations of its predecessor
hereunder, with the like effect as if originally named as trustee or securities
administrator herein. The predecessor trustee or predecessor securities
administrator shall deliver to the successor trustee or successor securities
administrator all Loan Documents and related documents and statements to the
extent held by it hereunder, as well as all moneys, held by it hereunder, and
the Depositor and the predecessor trustee or predecessor securities
administrator 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 or successor securities administrator all
such rights, powers, duties and obligations.

                                     -131-
<PAGE>

         No successor trustee or successor securities administrator shall accept
appointment as provided in this Section unless at the time of such acceptance
such successor trustee or successor securities administrator shall be eligible
under the provisions of Section 8.6 and the appointment of such successor
trustee or successor securities administrator shall not result in a downgrading
of any Class of Certificates by any Rating Agency, as evidenced by a letter from
each Rating Agency.

         Upon acceptance of appointment by a successor trustee or successor
securities administrator 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 or successor securities administrator, the
successor trustee or successor securities administrator shall cause such notice
to be mailed at the expense of the Depositor.

         Section 8.9 MERGER OR CONSOLIDATION OF TRUSTEE OR SECURITIES
ADMINISTRATOR.

         Any corporation or association into which the Trustee or the Securities
Administrator 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 or the Securities Administrator shall be a
party, or any corporation or association succeeding to the business of the
Trustee or the Securities Administrator shall be the successor of the Trustee or
the Securities Administrator hereunder, provided such corporation or association
shall be eligible under the provisions of Section 8.6, 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 REMIC II or property securing the same may at the time be located,
the Trustee shall have the power and shall execute and deliver all instruments
to appoint one or more Persons approved by the Trustee 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 or REMIC II, and to vest in such Person or
Persons, in such capacity, and for the benefit of the Holders of the
Certificates, such title to REMIC I or REMIC II, or any part thereof, and,
subject to the other provisions of this Section 8.10, such powers, duties,
obligations, rights and trusts as the Trustee may consider necessary or
desirable. No co-trustee or separate trustee hereunder shall be required to meet
the terms of eligibility as a successor trustee under Section 8.6 hereunder and
no notice to Holders of Certificates of the appointment of co-trustee(s) or
separate trustee(s) shall be required under Section 8.8 hereof.

         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 a defaulting Master Servicer hereunder),
the Trustee shall be incompetent or unqualified to perform such act or acts, in
which event such rights, powers, duties and

                                     -132-
<PAGE>

obligations (including the holding of title to REMIC I, REMIC II 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.

         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 or co-trustee.

         Section 8.11 APPOINTMENT OF OFFICE OR AGENCY.

         The Securities Administrator shall appoint an office or agency in the
City of Minneapolis located at Sixth Street and Marquette Avenue, Minneapolis,
Minnesota 55479, 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 Securities Administrator in respect of the Certificates
and this Agreement may be served.

         Section 8.12 REPRESENTATIONS AND WARRANTIES OF THE TRUSTEE.

         The Trustee hereby represents and warrants to the Master Servicer, the
Securities Administrator and the Depositor as applicable, as of the Closing
Date, that:

                  (i) It is a banking corporation duly organized, validly
         existing and in good standing under the laws of the State of New York.

                  (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 articles of incorporation 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.

                                     -133-
<PAGE>

                  (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 of its
         knowledge, threatened against it, which would prohibit it from entering
         into this Agreement or, in its good faith reasonable judgment, is
         likely to materially and adversely affect either the ability of it to
         perform its obligations under this Agreement or its financial
         condition.

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<PAGE>

                                   ARTICLE IX
                                   TERMINATION

         Section 9.1 TERMINATION UPON PURCHASE OR LIQUIDATION OF LOANS.

                  (a) Subject to Section 9.2, the respective obligations and
responsibilities under this Agreement of the Depositor, the Master Servicer, the
Securities Administrator and the Trustee (other than the obligations of the
Master Servicer to the Securities Administrator pursuant to Section 8.5 and of
the Master Servicer to pay Compensating Interest to the Securities Administrator
and the Securities Administrator to make payments in respect of REMIC 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) a Group I Cleanup Call (as defined below) and a Group II Cleanup
Call (as defined below) and (ii) the final payment or other liquidation (or any
advance with respect thereto) of the last Loan or REO Property remaining in
REMIC I and REMIC II; 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.

                  (b) The Master Servicer shall have the right (the party
exercising such right, the "Group I Terminator") to purchase all of the Group I
Loans and each Group I REO Property remaining in REMIC I no later than the
Determination Date in the month immediately preceding the Distribution Date on
which the Group I Certificates will be retired (a "Group I Cleanup Call");
PROVIDED, HOWEVER, that the Group I Terminator may elect to institute a Group I
Cleanup Call only if (a) the aggregate Scheduled Principal Balance of the Group
I Loans and each Group I REO Property remaining in the Trust Fund at the time of
such election is less than 10% of the aggregate Scheduled Principal Balance of
the Group I Loans as of the Cut-Off Date and (b) in the event such Group I
Cleanup Call would cause a draw on the Policy, Ambac provides written consent to
such Group I Cleanup Call to the Group I Terminator, the Trustee and the
Securities Administrator.

                  (c) The Master Servicer shall have the right (the party
exercising such right, the "Group II Terminator" and each of the Group I
Terminator and Group II Terminator, a "Terminator"), to purchase all of the
Group II Loans and each Group II REO Property remaining in REMIC II no later
than the Determination Date in the month immediately preceding the Distribution
Date on which the Group II Certificates will be retired (a "Group II Cleanup
Call"; either of the Group I Cleanup Call or a Group II Cleanup Call, a "Cleanup
Call"); PROVIDED, however, that the Group II Terminator may elect to institute a
Group II Cleanup Call only if the aggregate Scheduled Principal Balance of the
Group II Loans and each Group II REO Property remaining in the Trust Fund at the
time of such election is less than 10% of the aggregate Scheduled Principal
Balance of the Group II Loans as of the Cut-Off Date.

                  (d) A Group I Cleanup Call or Group II Cleanup Call shall be
at a price (each, a "Termination Price") equal to (i) with respect to a Group I
Cleanup Call, the aggregate Purchase Price of all the Group I Loans and Group I
REO Properties included in REMIC I plus any amounts due to Ambac in respect of
unpaid premiums and unpaid Reimbursement Amounts

                                     -135-
<PAGE>

and (ii) with respect to a Group II Cleanup Call, the aggregate Purchase Price
of all the Group II Loans and Group II REO Properties included in REMIC II. In
the event of any such Cleanup Call, the related Terminator shall deliver to the
Securities Administrator for deposit in the related Distribution Account not
later than the last Business Day of the month next preceding the month of the
final distribution on the Certificates an amount in immediately available funds
equal to the above-described Termination Price. The Securities Administrator
shall remit (a) to the Master Servicer from such funds deposited in the related
Distribution Account (i) any amounts which the Master Servicer notifies it in
writing that the Master Servicer would be permitted to withdraw and retain from
the related Distribution Account pursuant to Section 3.24 and (ii) any other
amounts otherwise payable by the Securities Administrator to the Master Servicer
from amounts on deposit in the related Distribution Account pursuant to the
terms of this Agreement and notified by the Master Servicer in writing and (b)
to the related Servicer, any amounts reimbursable to such Servicer pursuant to
the related Servicing Agreement, in each case prior to making any final
distributions pursuant to Section 9.1(f) below. Upon certification to the
Trustee and the Securities Administrator by a Servicing Officer of the making of
such final deposit, the Trustee shall promptly release to the related Terminator
the Mortgage Files for the remaining Group I Loans or Group II Loans, as
applicable, and the Trustee shall execute all assignments, endorsements and
other instruments necessary to effectuate such transfer in each case without
recourse, representation or warranty.

                  (e) Notice of the redemption of Certificates shall be given
promptly by the Securities Administrator by letter to the Certificateholders
mailed (a) in the event such notice is given in connection with a Cleanup Call,
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 related 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 or the related Certificates will
be redeemed, as applicable, and the final payment in respect of the related
REMIC Regular Interests or the related Certificates will be made upon
presentation and surrender of the related Certificates at the office of the
Securities Administrator therein designated, (ii) the amount of any such final
payment, (iii) that no interest shall accrue in respect of the related REMIC
Regular Interests or the related 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
with respect to the related Certificates, payments being made only upon
presentation and surrender of such Certificates at the office of the Securities
Administrator.

                  (f) Upon presentation of the Certificates by the
Certificateholders on the related final Distribution Date pursuant to paragraph
(e) above, the Securities Administrator shall distribute to each
Certificateholder so presenting and surrendering its Certificates the amount
otherwise distributable on such Distribution Date in accordance with Section 4.1
or Section 4.3, as applicable, 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 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 9.1 shall not have been surrendered for cancellation
within six months after the time specified in such notice, the Securities
Administrator shall mail a second notice to the remaining non-tendering

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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 Securities Administrator shall, directly or through an agent,
mail a final notice to the remaining 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 (related to the Group I Loans in the case of a Group I Cleanup Call and
the Group II Loans in the case of a Group II Cleanup Call) remaining in the
trust funds. If within one year after the final notice any such Certificates
shall not have been surrendered for cancellation, the Securities Administrator
shall pay to the Depositor 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 Securities Administrator as a result of such Certificateholder's failure
to surrender its Certificate(s) for final payment thereof in accordance with
this Section 9.1. Any such amounts held in trust by the Securities Administrator
shall be held in an Eligible Account and the Securities Administrator may direct
any depository institution maintaining such account to invest the funds in one
or more Eligible Investments. All income and gain realized from the investment
of funds deposited in such accounts held in trust by the Securities
Administrator shall be for the benefit of the Securities Administrator;
PROVIDED, HOWEVER, that the Securities Administrator shall deposit in such
account the amount of any loss of principal incurred in respect of any such
Eligible Investment made with funds in such accounts immediately upon the
realization of such loss.

                  Immediately following the deposit of funds in trust hereunder
in respect of the Certificates, the related REMIC shall terminate.

         Section 9.2 ADDITIONAL TERMINATION REQUIREMENTS.

                  (a) In the event of (x) a Group I Cleanup Call or Group II
Cleanup Call or (y) the final payment on or other liquidation of the last Loan
or REO Property remaining in REMIC I or REMIC II pursuant to Section 9.1, in
each case, the related REMIC shall be terminated in accordance with the
following additional requirements:

                  (i) The Securities Administrator shall specify the first day
         in the 90-day liquidation period in a statement attached to each
         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 by and 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
         Securities Administrator (on behalf of the Trustee) shall sell all of
         the assets of REMIC I or REMIC II, as applicable, to the Terminator for
         cash;

                  (iii) At the time of the making of the final payment on the
         Certificates, the Securities Administrator shall distribute or credit,
         or cause to be distributed or credited, 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;

                                     -137-
<PAGE>

                  (iv) If the Trust Fund is being terminated as a result of the
         occurrence of the event described in clause (x) of the first paragraph
         of this Section 9.2, the Final Terminator (as described below), at its
         own expense, shall prepare or cause to be prepared the documentation
         required in connection with the adoption of a plan of liquidation of
         each REMIC pursuant to this Section 9.2. The Final Terminator pursuant
         to this 9.2(a)(iv) shall be the (A) Group I Terminator if the Group I
         Cleanup Call occurs later than the Group II Cleanup Call or (B) the
         Group II Terminator if the Group II Cleanup Call occurs later than the
         Group I Cleanup Call; and

                  (v) If the Trust Fund is being terminated as a result of the
         occurrence of the event described in clause (y) of the first paragraph
         of Section 9.2, at the expense of the Trust Fund, the Securities
         Administrator shall prepare or cause to be prepared the documentation
         required in connection with the adoption of a plan of liquidation of
         each related REMIC pursuant to this Section 9.2.

                  (b) By their acceptance of Certificates, the Holders thereof
hereby agree to authorize the Securities Administrator to specify the 90-day
liquidation period for each REMIC, which authorization shall be binding upon all
successor Certificateholders.

                                     -138-
<PAGE>

                                   ARTICLE X
                                REMIC PROVISIONS

         Section 10.1 REMIC ADMINISTRATION.

                  (a) The Trustee shall elect to treat each REMIC under the Code
and, if necessary, under applicable state law and as instructed by the
Securities Administrator. Each such election shall be made by the Securities
Administrator 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 Component R-1 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 Component R-2 shall
be designated as the Residual Interest in REMIC II. The Certificates (other than
the Class R Certificates) shall be designated as the Regular Interests in REMIC
III and Component R-3 shall be designated as the Residual Interest in REMIC III.
The Trustee shall not permit the creation of any "interests" in each Trust REMIC
(within the meaning of Section 860G of the Code) other than the REMIC I Regular
Interests, REMIC II 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 Securities Administrator shall be reimbursed for any
and all expenses relating to any tax audit of the Trust Fund (including, but not
limited to, any professional fees or any administrative or judicial proceedings
with respect to each REMIC that involve the Internal Revenue Service or state
tax authorities), including the expense of obtaining any tax related Opinion of
Counsel except as specified herein. The Securities Administrator, as agent for
each REMIC's tax matters person shall (i) act on behalf of the Trust Fund in
relation to any tax matter or controversy involving any 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
Securities Administrator or an Affiliate as its agent to perform all of the
duties of the tax matters person for the Trust Fund.

                  (d) The Securities Administrator shall prepare and file and
the Trustee shall sign 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 Securities Administrator without any right of reimbursement therefor.

                  (e) The Securities Administrator shall perform on behalf of
each REMIC all reporting and other tax compliance duties that are the
responsibility of such REMIC under the Code, the REMIC Provisions or other
compliance guidance issued by the Internal Revenue Service or any state or local
taxing authority. Among its other duties, as required by the Code,

                                     -139-
<PAGE>

the REMIC Provisions or other such compliance guidance, the Securities
Administrator 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 upon receipt of additional reasonable compensation, (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 shall serve as the representative of each
REMIC. The Depositor shall provide or cause to be provided to the Securities
Administrator, within ten (10) days after the Closing Date, all information or
data that the Securities Administrator 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) To the extent in the control of the Trustee or the
Securities Administrator, each such Person (i) 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,
(ii) shall not take any action, cause the 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 (A) endanger the status of each
Trust REMIC as a REMIC or (B) 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 such action or inaction is permitted under this Agreement or the
Trustee and the Securities Administrator have received an Opinion of Counsel,
addressed to them (at the expense of the party seeking to take such action but
in no event at the expense of the Trustee or the Securities Administrator) to
the effect that the contemplated action will not, with respect to any REMIC,
endanger such status or result in the imposition of such a tax, nor (iii) shall
the Securities Administrator take or fail to take any action (whether or not
authorized hereunder) as to which the Trustee 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; provided that the Securities
Administrator may conclusively rely on such Opinion of Counsel and shall incur
no liability for its action or failure to act in accordance with such Opinion of
Counsel. In addition, prior to taking any action with respect to any REMIC or
the respective assets of each, or causing any REMIC to take any action, which is
not contemplated under the terms of this Agreement, the Securities Administrator
shall consult with the Trustee or its designee, in writing, with respect to
whether such action could cause an Adverse REMIC Event to occur with respect to
any REMIC, and the Securities Administrator shall not take any such action or
cause any REMIC to take any such action as to which the Trustee has advised it
in writing that an Adverse REMIC Event could occur. The Trustee 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 permitted by this Agreement, but in no
event shall such cost be an expense of the Trustee.

                  (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

                                     -140-
<PAGE>

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 10.3 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 Securities Administrator pursuant to Section 10.3 hereof, if such tax arises
out of or results from a breach by the Securities Administrator of any of its
obligations under this Article X, (iii) to the Master Servicer pursuant to
Section 10.3 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 under this
Article X, or (iv) against amounts on deposit in the Distribution Account and
shall be paid by withdrawal therefrom.

                  (h) The Trustee and the Securities Administrator shall, for
federal income tax purposes, maintain books and records with respect to each
REMIC on a calendar year and on an accrual basis.

                  (i) Following the Startup Day, the Trustee shall not accept
any contributions of assets to any REMIC other than in connection with any
Substitute Loan delivered in accordance with Section 2.3 unless it shall have
received an Opinion of Counsel addressed to it 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.

                  (j) Neither the Trustee nor the Securities Administrator shall
knowingly enter into any arrangement by which any Trust REMIC will receive a fee
or other compensation for services nor permit either REMIC to receive any income
from assets other than "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.

                  (k) The Securities Administrator shall apply for an employer
identification number with the Internal Revenue Service via a Form SS-4 or other
comparable method for each REMIC. In connection with the foregoing, the
Securities Administrator shall provide the name and address of the person who
can be contacted to obtain information required to be reported to the holders of
Regular Interests in each REMIC as required by IRS Form 8811.

         Section 10.2 PROHIBITED TRANSACTIONS AND ACTIVITIES.

         None of the Depositor, the Securities Administrator, the Master
Servicer or the Trustee shall sell, dispose of or substitute for any of the
Loans (except in connection with (i) the foreclosure of a 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 Article IX of this Agreement, (iv) a substitution pursuant
to Article II of this Agreement or (v) a purchase of Loans pursuant to Article
II of this Agreement), nor acquire any assets for any REMIC (other than REO
Property acquired in respect of a defaulted Loan), nor sell or dispose of any
investments in the Distribution Account for gain, nor accept any contributions
to any REMIC after the Closing Date (other than a Substitute Loan delivered in
accordance with Section 2.3), unless it has received an Opinion of Counsel,
addressed to the Trustee (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

                                     -141-
<PAGE>

sale, disposition, substitution, acquisition or contribution will not (a) affect
adversely the status of any REMIC as a REMIC or (b) cause any REMIC to be
subject to a tax on "prohibited transactions" or "contributions" pursuant to the
REMIC Provisions.

         Section 10.3 INDEMNIFICATION.

                  (a) The Trustee agrees to be liable for any taxes and costs
incurred by the Trust Fund, the Depositor, the Securities Administrator or the
Master Servicer including, without limitation, any reasonable attorneys fees
imposed on or incurred by the Trust Fund, the Depositor, the Securities
Administrator or the Master Servicer as a result of the Trustee's failure to
perform its covenants set forth in this Article X in accordance with the
standard of care of the Trustee set forth in this Agreement.

                  (b) The Master Servicer agrees to indemnify the Trust Fund,
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 the Master Servicer's failure
to perform its covenants set forth in Article III in accordance with the
standard of care of the Master Servicer set forth in this Agreement.

                  (c) The Securities Administrator agrees to be liable for any
taxes and costs incurred by the Trust Fund, the Depositor or the Trustee
including, without limitation, any reasonable attorneys fees imposed on or
incurred by the Trust Fund, the Depositor or the Trustee as a result of the
Securities Administrator's failure to perform its covenants set forth in this
Article X in accordance with the standard of care of the Securities
Administrator set forth in this Agreement.

                                     -142-
<PAGE>

                                   ARTICLE XI
                            MISCELLANEOUS PROVISIONS

         Section 11.1 AMENDMENT. This Agreement may be amended from time to
time, by the Depositor, the Master Servicer, the Securities Administrator and
the Trustee, without the consent of any of the Certificateholders, (a) to cure
any ambiguity, to correct or supplement any provision herein which may be
inconsistent with any other provision herein, or to make any other provisions
with respect to matters or questions arising under this Agreement, (b) to
modify, eliminate or add to any provisions to such extent as shall be necessary
to maintain the qualification of the Trust Fund as four REMICs at all times that
any Class A, Class M , Class CE or Class P Certificates are outstanding,
provided, that such action shall not, as evidenced by an Opinion of Counsel
addressed to the Trustee and delivered to the Trustee, 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.

         This Agreement may also be amended from time to time by the Depositor,
the Master Servicer, the Securities Administrator and the Trustee with the
consent of the Holders of Certificates evidencing, in aggregate, not less than
66-2/3% of the Certificate Principal Balance of the Certificates 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 shall (i)
reduce in any manner the amount of, or delay the timing of, payments received on
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 in a manner,
other than as described in (i), without the consent of the Holders of
Certificates of such Class evidencing at least 66-2/3% of the aggregate
Certificate Principal Balance of such Class, 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 11.1, Certificates registered in the name of
the Depositor or the Servicer or any Affiliate thereof shall be entitled to
Voting Rights with respect to matters affecting such Certificates. Without
limiting the generality of the foregoing, any amendment to this Agreement
required in connection with the compliance with or the clarification of any
reporting obligations described in Section 4.6 hereof shall not require the
consent of any Certificateholder and without the need for any Opinion of Counsel
or Rating Agency confirmation.

         Notwithstanding any contrary provision of this Agreement, the Trustee
shall not consent to any amendment to this Agreement unless it shall have first
received an Opinion of Counsel addressed to it to the effect that such amendment
will not cause either REMIC I, REMIC II, REMIC III or REMIC IV of the Trust Fund
to fail to qualify as a REMIC at any time that REMIC I Regular Interests, REMIC
II Regular Interests, REMIC III Regular Interests or Certificates are
outstanding.

                                     -143-
<PAGE>

         As soon as practicable after the execution of any such amendment, the
Trustee shall furnish written notification of the substance of such amendment to
each Certificateholder and Rating Agency.

         It shall not be necessary for the consent of the Certificateholders
under this Section 11.1 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.

         Prior to the execution of any amendment to this Agreement, the Trustee
shall be entitled to receive and rely upon an Opinion of Counsel addressed to it
stating that the execution of such amendment is authorized or permitted by this
Agreement. The Trustee may, but shall not be obligated to, enter into any such
amendment which affects the Trustee's own rights, duties or immunities under
this Agreement.

         Section 11.2 RECORDATION OF AGREEMENT; COUNTERPARTS. To the extent
permitted by applicable law, this Agreement (or an abstract hereof, if
acceptable by the applicable recording office) 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 Depositor at the expense of
the Certificateholders, but only after the Depositor has delivered to the
Trustee 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 11.3 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 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.

         Except as otherwise expressly provided herein no Certificateholder,
solely by virtue of its status as Certificateholder, shall have any right to
vote 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 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, solely by virtue of its status as
Certificateholder, shall have any right by virtue or by availing 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

                                     -144-
<PAGE>

continuance thereof, as hereinbefore provided, and unless all of the Holders of
Certificates evidencing, in aggregate, not less than 25% of the Trust Fund shall
have made written request upon the Trustee to institute such action, suit or
proceeding in its own name as Trustee hereunder and shall have offered to the
Trustee such reasonable indemnity as it may require against the costs, expenses
and liabilities to be incurred therein or thereby, and the Trustee, for 60 days
after its receipt of such notice, request and offer of indemnity, shall have
neglected or refused to institute any such action, suit or proceeding; it being
understood and intended, and being 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 or by availing 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 benefit of all Certificateholders. For the protection and
enforcement of the provisions of this Section 11.3, each and every
Certificateholder and the Trustee shall be entitled to such relief as can be
given either at law or in equity.

         Section 11.4 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO CONFLICTS
OF LAWS PRINCIPLES OTHER THAN 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

         Section 11.5 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 certified or registered mail, return receipt requested
(a) in the case of the Depositor, to 60 Wall Street, New York, New York 10005,
Attention: Deutsche Mortgage Securities, Inc., Mortgage Loan Trust, Series
2004-3, telecopy number: (212) 250-2500, or such other address or telecopy
number as may hereafter be furnished to the Master Servicer and the Trustee in
writing by the Depositor, (b) in the case of the Master Servicer and the
Securities Administrator, P.O. Box 98, Columbia, Maryland 21046 and for
overnight delivery to 9062 Old Annapolis Road, Columbia, Maryland 21045,
Attention: Deutsche Mortgage Securities, Inc., 2004-3 (telecopy number: (410)
715-2380), or such other address or telecopy number as may hereafter be
furnished to the Trustee and the Depositor in writing by the Master Servicer or
the Securities Administrator, (c) in the case of the Trustee, at the Corporate
Trust Office or such other address or telecopy number as the Trustee may
hereafter be furnish to the Master Servicer and the Depositor in writing by the
Trustee and (d) in the case of Ambac, Ambac Assurance Corporation, One State
Street Plaza, New York, New York 10004, Attention: Consumer Asset-Backed
Securities Group or such other address as may be hereafter furnished to the
Depositor, the Trustee and the Master Servicer in writing by Ambac. 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.

                                     -145-
<PAGE>

         Section 11.6 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 11.7 NOTICE TO RATING AGENCIES.

         The Trustee shall use its best efforts promptly to provide notice to
the Rating Agencies 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 Loans pursuant to
                           or as contemplated by Section 2.3;

                  5.       The final payment to the Holders of any Class of
                           Certificates;

                  6.       Any change in the location of a Distribution Account;

                  7.       Any event that would result in the inability of the
                           Trustee to make advances regarding delinquent Loans
                           pursuant to Section 7.2; and

                  8.       Any Insurer Default that has not been cured.

                  The Master Servicer shall make available to each Rating Agency
copies of the following:

                  1.       Each annual statement as to compliance described in
                           Section 3.16; and

                  2.       Each annual independent public accountants' servicing
                           report described in Section 3.17.

                  Any such notice pursuant to this Section 11.7 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 Standard & Poor's, a division of The McGraw-Hill Companies, Inc., 55 Water
Street, New York, New York 10041 and to Moody's Investors Service, Inc., 99
Church Street, New York, New York 10007 or such other addresses as the Rating
Agencies may designate in writing to the parties hereto.

                                     -146-
<PAGE>

         Section 11.8 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 11.9 GRANT OF SECURITY INTEREST.

         It is the express intent of the parties hereto that the conveyance of
the Loans by the Depositor to the Trustee, on behalf of the Trust Fund and for
the benefit of the Certificateholders, be, and be construed as, a sale of the
Loans by the Depositor and not a pledge of the Loans to secure a debt or other
obligation of the Depositor. However, in the event that, notwithstanding the
aforementioned intent of the parties, the Loans are held to be property of the
Depositor, then, (a) it is the express intent of the parties that such
conveyance be deemed a pledge of the Loans by the Depositor to the Trustee, on
behalf of the Trust Fund and for the benefit of the Certificateholders, to
secure a debt or other obligation of the Depositor 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 2.1 hereof shall be
deemed to be a grant by the Depositor to the Trustee, on behalf of the Trust
Fund and for the benefit of the Certificateholders, of a security interest in
all of the Depositor's right, title and interest in and to the Loans and all
amounts payable to the holders of the 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 Distribution Accounts, 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 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 security interest under applicable law.
Accordingly, the Depositor hereby grants to the Trustee, on behalf of the Trust
Fund and for the benefit of the Certificateholders, a security interest in the
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 obligations described in clause (3) of the preceding sentence.
Notwithstanding the foregoing, the parties hereto intend the conveyance pursuant
to Section 2.1 to be a true, absolute and unconditional sale of the Loans and
assets constituting the Trust Fund by the Depositor to the Trustee, on behalf of
the Trust Fund and for the benefit of the Certificateholders.

                                     -147-
<PAGE>

                                  ARTICLE XII
                         CERTAIN MATTERS REGARDING AMBAC

         Section 12.1 RIGHTS OF AMBAC TO EXERCISE RIGHTS OF INSURED
CERTIFICATEHOLDERS.

         By accepting its Certificate, each Holder of an Insured Certificate
agrees that unless an Insurer Default exists, Ambac shall have the right to
exercise all consent, voting, direction and other control rights of the Holders
of Insured Certificates under this Agreement without any further consent of the
Holders of the Insured Certificates.

         Section 12.2 CLAIMS UPON THE POLICY; INSURANCE ACCOUNT.

                  (a) If, on the Business Day next succeeding the Determination
Date, the Securities Administrator determines that (i) the funds that will be on
deposit in the Distribution Account established for the benefit of the Group I
Certificateholders on the related Distribution Account Deposit Date, to the
extent distributable to the Holders of the Insured Certificates pursuant to
Section 4.1, are insufficient to pay the related Interest Distribution Amount
and related Group I Senior Principal Distribution Amount for such Distribution
Date, net of (a) any Prepayment Interest Shortfalls and Curtailment Shortfalls
allocated to the Insured Certificates and (b) any shortfalls relating to
application of the Relief Act or (ii) the funds available on the final
Distribution Date will be insufficient to reduce the Certificate Principal
Balance of the Insured Certificates to zero, the Securities Administrator shall
give notice by telephone or telecopy of the aggregate amount of such deficiency,
confirmed in writing in the form set forth as Exhibit A to the endorsement of
the Policy, to Ambac at or before 12:00 noon, New York City time, on the
Business Day prior to such Distribution Date. If, subsequent to such notice, and
prior to payment by Ambac pursuant to such notice, additional amounts are
deposited in the Certificate Account, the Securities Administrator shall
reasonably promptly notify Ambac and withdraw the notice or reduce the amount
claimed, as appropriate.

                  (b) The Securities Administrator shall establish a separate
special purpose trust account for the benefit of Holders of the Insured
Certificates and Ambac referred to herein as the "Insurance Account" over which
Securities Administrator shall have exclusive control and sole right of
withdrawal. The Securities Administrator shall deposit any amount paid to it
under the Policy in the Insurance Account and distribute such amount only for
purposes of payment to Holders of Insured Certificates of the Guaranteed
Distribution for which a claim was made. Such amount may not be applied to
satisfy any costs, expenses or liabilities of the Master Servicer, the
Securities Administrator, the Trustee or the Trust Fund. Amounts paid under the
Policy shall be transferred to the Distribution Account established for the
benefit of the Group I Certificateholders in accordance with the next succeeding
paragraph and disbursed by the Securities Administrator to Holders of Insured
Certificates in accordance with Section 4.1 or Section 9.1, as applicable. It
shall not be necessary for such payments to be made by checks or wire transfers
separate from the checks or wire transfers used to pay the Guaranteed
Distribution with other funds available to make such payment. However, the
amount of any payment of principal of or interest on the Insured Certificates to
be paid from funds transferred from the Insurance Account shall be noted as
provided in paragraph (c) below and in the statement to be furnished to Holders
of the Certificates pursuant to Section 4.6. Funds held in the Insurance Account
shall not be invested by the Securities Administrator.

                                     -148-
<PAGE>

         On any Distribution Date with respect to which a claim has been made
under the Policy, the amount of any funds received by the Securities
Administrator (on behalf of the Trustee) as a result of any claim under the
Policy, to the extent required to make the Guaranteed Distribution on such
Distribution Date, shall be withdrawn by the Securities Administrator from the
Insurance Account and deposited in the Distribution Account established for the
benefit of the Group I Certificateholders and applied by the Securities
Administrator, together with the other funds to be distributed to the Insured
Certificateholders pursuant to Section 4.1, directly to the payment in full of
the Guaranteed Distribution due on the Insured Certificates. Any funds remaining
in the Insurance Account on the first Business Day following a Distribution Date
shall be remitted by the Securities Administrator to Ambac, pursuant to the
written instructions of Ambac, by the end of such Business Day.

                  (c) The Securities Administrator shall keep a complete and
accurate record of the amount of interest and principal paid into the Insurance
Account in respect of any Insured Certificate from moneys received by the
Securities Administrator under the Policy. Ambac shall have the right to inspect
such records at reasonable times during normal business hours upon two Business
Day's prior written notice to the Securities Administrator.

         Section 12.3 EFFECT OF PAYMENTS BY THE INSURER; SUBROGATION.

         Anything herein to the contrary notwithstanding, for purposes of this
Section 12.3, any payment with respect to principal of or interest on the
Insured Certificates which is made with monies received pursuant to the terms of
the Policy shall not be considered payment of the Insured Certificates from the
Trust Fund. The Master Servicer, the Securities Administrator and the Trustee
acknowledge, and each Holder by its acceptance of an Insured Certificate agrees,
that without the need for any further action on the part of Ambac, the Master
Servicer, the Securities Administrator, the Trustee or the Certificate
Registrar, to the extent Ambac makes payments, directly or indirectly, on
account of principal of or interest on the Insured Certificates to the Holders
of such Certificates, Ambac will be fully subrogated to, and each Holder of an
Insured Certificate and the Securities Administrator hereby delegate and assign
to Ambac, to the fullest extent permitted by law, the rights of such Holders to
receive such principal and interest from the Trust Fund; provided that Ambac
shall be paid such amounts only from the sources and in the manner explicitly
provided for herein.

         The Trustee, the Securities Administrator and the Master Servicer shall
cooperate in all respects with any reasonable request by Ambac for action to
preserve or enforce Ambac's rights or interests under this Agreement without
limiting the rights or affecting the interests of the Holders as otherwise set
forth herein.

         Section 12.4 NOTICES AND INFORMATION TO AMBAC.

                  (a) All notices, statements, reports, certificates or opinions
required by this Agreement to be sent or made available to any other party
hereto or to the Certificateholders shall also be sent or made available to
Ambac.

                  (b) The Master Servicer shall designate a Person who shall be
available to Ambac to provide reasonable access to information regarding the
Group I Loans.

                                     -149-
<PAGE>

         Section 12.5 TRUSTEE TO HOLD POLICY.

         The Trustee will hold the Policy in trust as agent for the Insured
Certificateholders for the purpose of making claims thereon and distributing the
proceeds thereof. Neither the Policy, nor the amounts paid on the Policy will
constitute part of the Trust Fund or assets of any REMIC created by this
Agreement. Each Holder of an Insured Certificate, by accepting its Certificate,
appoints the Trustee as attorney-in-fact for the purpose of making claims on the
Policy. The Trustee shall surrender the Policy to Ambac for cancellation upon
the expiration of the term of the Policy as provided in the Policy following the
retirement of the Insured Certificates. To the extent that the Policy
constitutes a reserve fund for federal income tax purposes, (1) it shall be an
outside credit support agreement and not an asset of any REMIC and (2) it shall
be owned by the Insurer, all within the meaning of Section 1.860G-2(h) of the
Treasury Regulations.

         Section 12.6 PAYMENT OF INSURANCE PREMIUM.

         Unless otherwise designated in writing by the President or a Managing
Director of Ambac to the Trustee and the Securities Administrator, the Insurer
Premium to be paid pursuant to Section 4.1(a)(i)(A) shall be paid by the
Securities Administrator to Ambac by wire transfer with the following details
specifically stated in the wire transfer:

         Bank: Citibank, N.A.
         ABA Number: 021000089
         For the account of: Ambac Assurance Corporation
         Account Number: 40609486
         Re: AB0753BE DMSI 2004-3
         Attention: Joe Sievers

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                     -150-
<PAGE>

         IN WITNESS WHEREOF, the Depositor, the Master Servicer, the Securities
Administrator and the Trustee have caused their names to be signed hereto by
their respective officers thereunto duly authorized, all as of the day and year
first above written.

                                  DEUTSCHE MORTGAGE SECURITIES, INC.,
                                  as Depositor

                                  By    /s/ Michael A. Commaroto
                                    --------------------------------------
                                  Name: MICHAEL A. COMMAROTO
                                  Its:  PRESIDENT

                                  By    /s/ Ted Hsueh
                                    --------------------------------------
                                  Name: TED HSUEH
                                  Its:  Authorized Signatory

                                  WELLS FARGO BANK,
                                  N.A.,
                                  as Master Servicer and Securities
                                  Administrator

                                  By    /s/ Peter A. Gobell
                                    --------------------------------------
                                  Name: Peter A. Gobell
                                  Its:  Vice President

                                  HSBC BANK USA,  not in its  individual
                                  capacity but solely as Trustee

                                  By: /S/ RICHARD WU
                                     -------------------------------------
                                  Name:    Richard Wu
                                  Its:     Vice President

<PAGE>

With Respect to Sections 6.7, 6.8 and 6.9:

THE MURRAYHILL COMPANY

By:    s/s Kevin J. Kanouff
   -----------------------------------------
Name:  Kevin J. Kanouff
       PRESIDENT AND GENERAL COUNSEL

<PAGE>

STATE OF             )
                     ) ss.:
COUNTY OF            )

         On the ___ day of April 2004, before me, a notary public in and for
said State, personally appeared _____________________ known to me to be a
_____________________ of Deutsche 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          )
                  ) ss.:
COUNTY OF         )

                  On the ___ day of April 2004, before me, a notary public in
and for said State, personally appeared _____________________ known to me to be
a _____________________ of Deutsche 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          )
                  ) ss.:
COUNTY OF         )

                  On the __ day of April 2004, before me, a notary public in and
for said State, personally appeared ___________________________ known to me to
be a ____________________ of Wells Fargo Bank, N.A., 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          )
                  ) ss.:
COUNTY OF         )

                  On the ___ day of April 2004, before me, a notary public in
and for said State, personally appeared _______________ known to me to be a
_______________ of HSBC Bank USA, 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>
                                   EXHIBIT A-1

       FORM OF CLASS [I-A-[1][2][3][4][5][6][7]][II-AR-[1][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").

                  THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE
DECREASED BY THE PRINCIPAL PAYMENTS HEREON AS DESCRIBED IN THE AGREEMENT
REFERRED TO HEREIN. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE OF THE
CERTIFICATES, THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE
MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE SECURITIES
ADMINISTRATOR NAMED HEREIN.

                  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS
MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.

<PAGE>

<TABLE>
<CAPTION>

<S>                                                       <C>
Certificate No. [1]                                       Pass-Through Rate: [___ %][Variable]

Class [I-A-[1][2][3][4][5][6][7]][II-AR-[1][2]]
Senior                                                    Percentage Interest: _____

Date of Pooling and Servicing Agreement and               Aggregate Initial Certificate Principal Balance
Cut-Off Date:                                             of this Class as of the Cut-Off Date:
April 1, 2004                                             $

First Distribution Date:                                  Initial Certificate Principal Balance of this
May 25, 2004                                              Certificate as of the Cut-Off Date:
                                                          $-----------

Master Servicer:
Wells Fargo Bank, N.A.                                    CUSIP: ___________

Final Distribution Date:
[March][May] 2034
</TABLE>

                        MORTGAGE PASS-THROUGH CERTIFICATE
                                  SERIES 2004-3

         evidencing a fractional undivided interest in the distributions
         allocable to the Class [I-A-[1][2][3][4][5][6][7]][II-AR-[1][2]]
         Certificates with respect to a trust fund consisting primarily of a
         pool of conventional one- to four-family fixed and adjustable interest
         rate mortgage loans secured by one- to four- family residences, units
         in planned unit developments and individual condominium units (the
         "Trust Fund") sold by DEUTSCHE MORTGAGE SECURITIES, INC.

                  This Certificate is payable solely from certain assets of the
Trust Fund as described in the Agreement (as defined below), and does not
represent an obligation of or interest in Deutsche Mortgage Securities, Inc.,
the Master Servicer, the Trustee or the Securities Administrator referred to
below or any of their affiliates or any other person. Neither this Certificate
nor the underlying Group [I][II] Loans (as defined below) are guaranteed or
insured by any governmental entity or by Deutsche Mortgage Securities, Inc., the
Master Servicer, the Trustee or the Securities Administrator or any of their
affiliates or any other person. None of Deutsche Mortgage Securities, Inc., the
Master Servicer or any of their affiliates will have any obligation with respect
to any certificate or other obligation secured by or payable from payments on
the Certificates.

                  This certifies that [Cede & Co.] is the registered owner of
the Percentage Interest evidenced hereby in the beneficial ownership interest of
Certificates of the same Class as this Certificate in the [fixed][adjustable]
rate mortgage loans and related assets included in the Trust Fund (the "Group
[I] [II] Loans") sold by Deutsche Mortgage Securities, Inc. ("DMSI"). The Group

                                      A-1-2

<PAGE>

[I][II] Loans were sold by DB Structured Products, Inc. to DMSI. Wells Fargo
Bank, N.A. will act as master servicer of the Group [I][II] Loans (the "Master
Servicer," which term includes any successors thereto under the Agreement
referred to below). The Trust Fund was created pursuant to the Pooling and
Servicing Agreement dated as of the Cut-Off Date specified above (the
"Agreement"), among DMSI, as depositor (the "Depositor"), Wells Fargo Bank,
N.A., as Master Servicer and securities administrator (the "Securities
Administrator") and HSBC Bank USA, as trustee (the "Trustee"), a summary of
certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, capitalized terms used herein shall have the meaning
ascribed to them 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 its acceptance hereof
assents and by which such Holder is bound.

                  [[GROUP I SENIOR CERTIFICATES, OTHER THAN THE CLASS I-A-1 AND
CLASS I-A-IO CERTIFICATES:]The Pass-Through Rate applicable to the calculation
of interest payable with respect to this Certificate on any Distribution Date
(as hereinafter defined) shall be a rate per annum equal to the lesser of (i)
[___]% [[CLASS I-A-5 AND I-A-6 CERTIFICATES:], provided, however, such rate
shall be increased to ____% on each Distribution Date following the Distribution
Date on which the aggregate principal balance of the Group I Loans (and
properties acquired in respect thereof) remaining in the Trust Fund is reduced
to less than 10% of the aggregate principal balance of the Group I Loans as of
the Cut-off Date] and (ii) the applicable Net WAC Pass-Through Rate for such
Distribution Date. The Securities Administrator will distribute on the 25th day
of each month, or, if such 25th day is not a Business Day, the immediately
following Business Day (each, a "Distribution Date"), commencing on the First
Distribution Date specified above, to the Person in whose name this Certificate
is registered at the close of business on the last Business Day of the calendar
month immediately preceding the month of such Distribution Date, an amount equal
to the product of the Percentage Interest evidenced by this Certificate and the
amount (of interest and principal, if any) required to be distributed to the
Holders of Certificates of the same Class as this Certificate. Any such
distributions will be made by wire transfer in immediately available funds to
the account of such Person or by any other means of payment acceptable to such
Person. The last scheduled Distribution Date is the Distribution Date in March
2034.]

                  [[CLASS I-A-1 AND GROUP II SENIOR CERTIFICATES:] The
Pass-Through Rate applicable to the calculation of interest payable with respect
to this Certificate on any Distribution Date (as hereinafter defined) shall be a
rate per annum equal to the lesser of (i) One-Month LIBOR plus [_____]% [[GROUP
II SENIOR CERTIFICATES:], in the case of each Distribution Date through and
including the Distribution Date on which the aggregate principal balance of the
Group II Loans (and properties acquired in respect thereof) remaining in the
Trust Fund is reduced to less than 10% of the aggregate principal balance of the
Group II Loans as of the Cut-off Date, or One-Month LIBOR plus [_____]%, in the
case of any Distribution Date thereafter] and (ii) the applicable Net WAC
Pass-Through Rate for such Distribution Date. The Securities Administrator will
distribute on the 25th day of each month, or, if such 25th day is not a Business
Day, the immediately following Business Day (each, a "Distribution Date"),
commencing on the First Distribution Date specified above, to the Person in
whose name this Certificate is registered at the close of business on the
Business Day immediately preceding such Distribution Date, an amount equal to
the product of the Percentage Interest evidenced by this Certificate and the
amount (of interest and principal, if any) required to be distributed to the
Holders of Certificates of the same Class as this Certificate. Any

                                      A-1-3

<PAGE>

such distributions will be made by wire transfer in immediately available funds
to the account of such Person or by any other means of payment acceptable to
such Person. The last scheduled Distribution Date is the Distribution Date in
[March]][May] 2034.]

                  Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Securities Administrator of the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Securities Administrator
for that purpose and designated in such notice. The initial Certificate
Principal Balance of this Certificate is set forth above. The Certificate
Principal Balance hereof will be reduced to the extent of distributions
allocable to principal hereon as described in the Agreement.

                  This Certificate is one of a duly authorized issue of
Certificates designated as set forth on the face hereof (the "Certificates").
The Certificates, in the aggregate, evidence the entire beneficial ownership
interest in the Trust Fund formed pursuant to the Agreement.

                  The Certificateholder, by its acceptance of this Certificate,
agrees that it will look solely to the Trust Fund for payment hereunder, and
that none of the Depositor, the Trustee, the Master Servicer or the Securities
Administrator is 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 hereby, and the rights,
duties and immunities of the Securities Administrator.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor and the rights of the Certificateholders under the
Agreement from time to time by the parties thereto with the consent of the
Holders of Certificates affected thereby evidencing not less than 66-2/3% of the
aggregate Certificate Principal Balance of the related Class or Classes of
Certificates. 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 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
with the Securities Administrator upon surrender of this Certificate for
registration of transfer at the offices or agencies maintained by the Securities
Administrator for such purposes, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Securities Administrator duly
executed by the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates in authorized denominations
representing a like aggregate Percentage Interest will be issued to the
designated transferee.

                                      A-1-4

<PAGE>

                  The Certificates are issuable only as registered Certificates
without coupons in the Classes and denominations specified in the Agreement. As
provided in the Agreement and subject to certain limitations therein set forth,
this Certificate is exchangeable for one or more new Certificates evidencing the
same Class and in the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

                  No service charge will be made to the Certificateholders for
any such registration of transfer, but the Securities Administrator may require
payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith. The Depositor, the Master Servicer, the
Securities Administrator, the Trustee and any agent of any of them 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 Securities
Administrator, the Trustee or any such agent shall be affected by notice to the
contrary.

                  The obligations created by the Agreement with respect to this
Certificate (other than the obligations to make payments to Certificateholders
with respect to the termination of the Agreement) shall terminate upon the
remittance of all funds due under the Agreement with respect to this
Certificate, coinciding with or following the earlier to occur of (i) the
maturity or other liquidation (or Advance with respect thereto) of the last
[Group I][Group II] Loan remaining in the Trust Fund and disposition of all
property acquired upon foreclosure or deed in lieu of foreclosure of any [Group
I][Group II] Loan or (ii) the optional repurchase by the party named in the
Agreement of all the [Group I][Group II] Loans and other related assets of the
Trust Fund in accordance with the terms of the Agreement. Such optional
repurchase may be made only on or after the Distribution Date on which the
aggregate Scheduled Principal Balance of the [Group I][Group II] Loans is less
than the percentage of the aggregate Scheduled Principal Balance specified in
the Agreement of the [Group I][Group II] Loans at the Cut-Off Date. The exercise
of such right will effect the early retirement of this Certificate. In no event
will the Trust Fund created by the Agreement continue beyond the expiration of
21 years after the death of certain persons identified in the Agreement.

                  Unless this Certificate has been countersigned by an
authorized signatory of the Securities Administrator by manual signature, this
Certificate shall not be entitled to any benefit under the Agreement, or be
valid for any purpose.

                                      A-1-5

<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated: April 30, 2004

                                  WELLS FARGO BANK, N.A.
                                  as Securities Administrator

                                  By:_______________________________________
                                               Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

                  This is one of the Class
[I-A-[1][2][3][4][5][6][7]][II-AR-[1][2]] Certificates referred to in the
within-mentioned Agreement.

                                  WELLS FARGO BANK, N.A.
                                  as Securities Administrator

                                  By:________________________________________
                                              Authorized Signatory

<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) a Percentage
Interest evidenced by the within Mortgage Pass- Through Certificate and hereby
authorizes the transfer of registration of such interest to assignee on the
Certificate Register of the Trust Fund.

                  I (We) further direct the Securities Administrator 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

                                      _________________________________________
                                             Signature Guaranteed

                            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 I-A-IO 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").

                  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS
MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.

<PAGE>

<TABLE>
<CAPTION>

<S>                                                       <C>
Certificate No. [1]                                       Pass-Through Rate: Variable

Class I-A-IO                                              Percentage Interest: _____

Date of Pooling and Servicing Agreement and               Aggregate Initial Notional Amount of this
Cut-Off Date:                                             Class as of the Cut-Off Date:
April 1, 2004                                             $___________

First Distribution Date:                                  Initial Notional Amount of this Certificate as
May 25, 2004                                              of the Cut-Off Date:
                                                          $-----------

Master Servicer:
Wells Fargo Bank, N.A.

Final Distribution Date:
April 25, 2006                                            CUSIP: ___________
</TABLE>

                        MORTGAGE PASS-THROUGH CERTIFICATE
                                  SERIES 2004-3

         evidencing a fractional undivided interest in the distributions
         allocable to the Class I-A-IO Certificates with respect to a trust fund
         consisting primarily of a pool of conventional one- to four-family
         fixed and adjustable interest rate mortgage loans secured by one- to
         four- family residences, units in planned unit developments and
         individual condominium units (the "Trust Fund") sold by DEUTSCHE
         MORTGAGE SECURITIES, INC.

                  This Certificate is payable solely from certain assets of the
Trust Fund as described in the Agreement (as defined below), and does not
represent an obligation of or interest in Deutsche Mortgage Securities, Inc.,
the Master Servicer, the Trustee or the Securities Administrator referred to
below or any of their affiliates or any other person. Neither this Certificate
nor the underlying Group [I][II] Loans (as defined below) are guaranteed or
insured by any governmental entity or by Deutsche Mortgage Securities, Inc., the
Master Servicer, the Trustee or the Securities Administrator or any of their
affiliates or any other person. None of Deutsche Mortgage Securities, Inc., the
Master Servicer or any of their affiliates will have any obligation with respect
to any certificate or other obligation secured by or payable from payments on
the Certificates.

                  This certifies that [Cede & Co.] is the registered owner of
the Percentage Interest evidenced hereby in the beneficial ownership interest of
Certificates of the same Class as this Certificate in the [fixed][adjustable]
rate mortgage loans and related assets included in the Trust Fund (the "Group
[I] [II] Loans") sold by Deutsche Mortgage Securities, Inc. ("DMSI"). The Group
[I][II] Loans were sold by DB Structured Products, Inc. to DMSI. Wells Fargo
Bank, N.A. will act

                                      A-2-2

<PAGE>

as master servicer of the Group [I][II] Loans (the "Master Servicer," which term
includes any successors thereto under the Agreement referred to below). The
Trust Fund was created pursuant to the Pooling and Servicing Agreement dated as
of the Cut-Off Date specified above (the "Agreement"), among DMSI, as depositor
(the "Depositor"), Wells Fargo Bank, N.A., as Master Servicer and securities
administrator (the "Securities Administrator") and HSBC Bank USA, as trustee
(the "Trustee"), a summary of certain of the pertinent provisions of which is
set forth hereafter. To the extent not defined herein, capitalized terms used
herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such Holder is bound.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date (as
hereinafter defined) shall be a rate per annum equal to (i) 4.50% with respect
the first twelve Distribution Dates following the Closing Date, (ii) 3.50% with
respect to the next twelve Distribution Dates and (iii) 0.00% thereafter. The
Securities Administrator will distribute on the 25th day of each month, or, if
such 25th day is not a Business Day, the immediately following Business Day
(each, a "Distribution Date"), commencing on the First Distribution Date
specified above, to the Person in whose name this Certificate is registered at
the close of business on the last Business Day of the calendar month preceding
the month of such Distribution Date, an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount of interest
required to be distributed to the Holders of Certificates of the same Class as
this Certificate. Any such distributions will be made by wire transfer in
immediately available funds to the account of such Person or by any other means
of payment acceptable to such Person. The last scheduled Distribution Date is
the Distribution Date in April 2006.

                  Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Securities Administrator of the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Securities Administrator
for that purpose and designated in such notice. The Class I-A-IO Certificates
have no Certificate Principal Balance. The initial Notional Amount of this
Certificate is set forth above.

                  This Certificate is one of a duly authorized issue of
Certificates designated as set forth on the face hereof (the "Certificates").
The Certificates, in the aggregate, evidence the entire beneficial ownership
interest in the Trust Fund formed pursuant to the Agreement.

                  The Certificateholder, by its acceptance of this Certificate,
agrees that it will look solely to the Trust Fund for payment hereunder, and
that none of the Depositor, the Trustee, the Master Servicer or the Securities
Administrator is 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 hereby, and the rights,
duties and immunities of the Securities Administrator.

                                      A-2-3

<PAGE>

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor and the rights of the Certificateholders under the
Agreement from time to time by the parties thereto with the consent of the
Holders of Certificates affected thereby evidencing not less than 66-2/3% of the
aggregate Certificate Principal Balance of the related Class or Classes of
Certificates. 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 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
with the Securities Administrator upon surrender of this Certificate for
registration of transfer at the offices or agencies maintained by the Securities
Administrator for such purposes, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Securities Administrator duly
executed by the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates in authorized denominations
representing a like aggregate Percentage Interest will be issued to the
designated transferee.

                  The Certificates are issuable only as registered Certificates
without coupons in the Classes and denominations specified in the Agreement. As
provided in the Agreement and subject to certain limitations therein set forth,
this Certificate is exchangeable for one or more new Certificates evidencing the
same Class and in the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

                  No service charge will be made to the Certificateholders for
any such registration of transfer, but the Securities Administrator may require
payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith. The Depositor, the Master Servicer, the
Securities Administrator, the Trustee and any agent of any of them 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 Securities
Administrator, the Trustee or any such agent shall be affected by notice to the
contrary.

                  The obligations created by the Agreement with respect to this
Certificate (other than the obligations to make payments to Certificateholders
with respect to the termination of the Agreement) shall terminate upon the
remittance of all funds due under the Agreement with respect to this
Certificate, coinciding with or following the earlier to occur of (i) the
maturity or other liquidation (or Advance with respect thereto) of the last
Group I Loan remaining in the Trust Fund and disposition of all property
acquired upon foreclosure or deed in lieu of foreclosure of any Group I Loan or
(ii) the optional repurchase by the party named in the Agreement of all the
Group I Loans and other related assets of the Trust Fund in accordance with the
terms of the Agreement. Such optional repurchase may be made only on or after
the Distribution Date on which the aggregate Scheduled Principal Balance of the
Group I Loans is less than the percentage of the aggregate Scheduled Principal
Balance specified in the Agreement of the Group I Loans at the Cut-Off Date. The
exercise of such right will effect the early retirement of this Certificate. In
no event will the

                                      A-2-4

<PAGE>

Trust Fund created by the Agreement continue beyond the expiration of 21 years
after the death of certain persons identified in the Agreement.

                  Unless this Certificate has been countersigned by an
authorized signatory of the Securities Administrator by manual signature, this
Certificate shall not be entitled to any benefit under the Agreement, or be
valid for any purpose.

                                      A-2-5

<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated: April 30, 2004

                                 WELLS FARGO BANK, N.A.
                                 as Securities Administrator

                                 By:_______________________________________
                                              Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

                  This is one of the Class I-A-IO Certificates referred to in
the within-mentioned Agreement.

                                 WELLS FARGO BANK, N.A.
                                 as Securities Administrator

                                 By:_______________________________________
                                            Authorized Signatory

<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) a Percentage
Interest evidenced by the within Mortgage Pass- Through Certificate and hereby
authorizes the transfer of registration of such interest to assignee on the
Certificate Register of the Trust Fund.

                  I (We) further direct the Securities Administrator 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

                                      _________________________________________
                                             Signature Guaranteed

                            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 [I-M][II-MR]-[1][2][3] CERTIFICATE

                  THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE
[GROUP I][GROUP II] SENIOR CERTIFICATES [AND][,][ THE CLASS [I-M-1][II- MR-1]
CERTIFICATES, [AND] THE CLASS [I-M-2][II-MR-2] CERTIFICATES], AS DESCRIBED IN
THE AGREEMENT (AS DEFINED HEREIN).

                  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").

                  THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE
DECREASED BY THE PRINCIPAL PAYMENTS HEREON AND CERTAIN LOSSES ALLOCABLE HERETO
AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN. ACCORDINGLY, FOLLOWING THE
INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING
THIS CERTIFICATE MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF
THE SECURITIES ADMINISTRATOR NAMED HEREIN.

                  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS
MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.

                  ANY TRANSFEREE OF THIS CERTIFICATE SHALL BE DEEMED TO MAKE THE
REPRESENTATIONS SET FORTH IN SECTION 5.3(d) OF THE AGREEMENT REFERRED TO HEREIN.

<PAGE>

<TABLE>
<CAPTION>

<S>                                                       <C>
Certificate No. [1]                                       Pass-Through Rate:   [___%][Variable]

Class [I-M][II-MR]-[1][2][3]                              Percentage Interest: _____

Date of Pooling and Servicing Agreement and               Aggregate Initial Certificate Principal Balance
Cut-Off Date:                                             of this Class as of the Cut-Off Date:
April 1, 2004                                             $___________

First Distribution Date:                                  Initial Certificate Principal Balance of this
May 25, 2004                                              Certificate as of the Cut-Off Date:
                                                          $-----------

Master Servicer:
Wells Fargo Bank, N.A.                                    CUSIP: ___________

Final Distribution Date:
[March][May] 2034
</TABLE>

                        MORTGAGE PASS-THROUGH CERTIFICATE
                                  SERIES 2004-3

         evidencing a fractional undivided interest in the distributions
         allocable to the Class [I-M][II-MR]-[1][2][3] Certificates with respect
         to a trust fund consisting primarily of a pool of conventional one- to
         four-family fixed and adjustable interest rate mortgage loans secured
         by one- to four- family residences, units in planned unit developments
         and individual condominium units (the "Trust Fund") sold by DEUTSCHE
         MORTGAGE SECURITIES, INC.

                  This Certificate is payable solely from certain assets of the
Trust Fund as described in the Agreement (as defined below), and does not
represent an obligation of or interest in Deutsche Mortgage Securities, Inc.,
the Master Servicer, the Trustee or the Securities Administrator referred to
below or any of their affiliates or any other person. Neither this Certificate
nor the underlying Group [I][II] Loans (as defined below) are guaranteed or
insured by any governmental entity or by Deutsche Mortgage Securities, Inc., the
Master Servicer, the Trustee or the Securities Administrator or any of their
affiliates or any other person. None of Deutsche Mortgage Securities, Inc., the
Master Servicer or any of their affiliates will have any obligation with respect
to any certificate or other obligation secured by or payable from payments on
the Certificates.

                  This certifies that [Cede & Co.] is the registered owner of
the Percentage Interest evidenced hereby in the beneficial ownership interest of
Certificates of the same Class as this Certificate in the [fixed][adjustable]
rate mortgage loans and related assets included in the Trust Fund (the "Group
[I] [II] Loans") sold by Deutsche Mortgage Securities, Inc. ("DMSI"). The Group
[I][II] Loans were sold by DB Structured Products, Inc. to DMSI. Wells Fargo
Bank, N.A. will act as master servicer of the Group [I][II] Loans (the "Master
Servicer," which term includes any

                                      A-3-2

<PAGE>

successors thereto under the Agreement referred to below). The Trust Fund was
created pursuant to the Pooling and Servicing Agreement dated as of the Cut-Off
Date specified above (the "Agreement"), among DMSI, as depositor (the
"Depositor"), Wells Fargo Bank, N.A., as Master Servicer and securities
administrator (the "Securities Administrator") and HSBC Bank USA, as trustee
(the "Trustee"), a summary of certain of the pertinent provisions of which is
set forth hereafter. To the extent not defined herein, capitalized terms used
herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such Holder is bound.

                  [[GROUP I MEZZANINE CERTIFICATES:]The Pass-Through Rate
applicable to the calculation of interest payable with respect to this
Certificate on any Distribution Date (as hereinafter defined) shall be a rate
per annum equal to the lesser of (i) [___]%; provided, however, such rate shall
be increased to ____% on each Distribution Date (as hereinafter defined)
following the Distribution Date on which the aggregate principal balance of the
Group I Loans (and properties acquired in respect thereof) remaining in the
Trust Fund is reduced to less than 10% of the aggregate principal balance of the
Group I Loans as of the Cut-off Date and (ii) the applicable Net WAC Pass-
Through Rate for such Distribution Date. The Securities Administrator will
distribute on the 25th day of each month, or, if such 25th day is not a Business
Day, the immediately following Business Day (each, a "Distribution Date"),
commencing on the First Distribution Date specified above, to the Person in
whose name this Certificate is registered at the close of business on the last
Business Day of the calendar month preceding the month of such Distribution
Date, an amount equal to the product of the Percentage Interest evidenced by
this Certificate and the amount (of interest and principal, if any) required to
be distributed to the Holders of Certificates of the same Class as this
Certificate. Any such distributions will be made by wire transfer in immediately
available funds to the account of such Person or by any other means of payment
acceptable to such Person. The last scheduled Distribution Date is the
Distribution Date in March 2034.]

                  [[GROUP II MEZZANINE CERTIFICATES:] The Pass-Through Rate
applicable to the calculation of interest payable with respect to this
Certificate on any Distribution Date (as hereinafter defined) shall be a rate
per annum equal to the lesser of (i) One-Month LIBOR plus [_____]%, in the case
of each Distribution Date through and including the Distribution Date on which
the aggregate principal balance of the Group II Loans (and properties acquired
in respect thereof) remaining in the Trust Fund is reduced to less than 10% of
the aggregate principal balance of the Group II Loans as of the Cut-off Date, or
One-Month LIBOR plus [_____]%, in the case of any Distribution Date thereafter
and (ii) the applicable Net WAC Pass-Through Rate for such Distribution Date.
The Securities Administrator will distribute on the 25th day of each month, or,
if such 25th day is not a Business Day, the immediately following Business Day
(each, a "Distribution Date"), commencing on the First Distribution Date
specified above, to the Person in whose name this Certificate is registered at
the close of business on the Business Day immediately preceding such
Distribution Date, an amount equal to the product of the Percentage Interest
evidenced by this Certificate and the amount (of interest and principal, if any)
required to be distributed to the Holders of Certificates of the same Class as
this Certificate. Any such distributions will be made by wire transfer in
immediately available funds to the account of such Person or by any other means
of payment acceptable to such Person. The last scheduled Distribution Date is
the Distribution Date in May 2034.]

                                      A-3-3

<PAGE>

                  Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Securities Administrator of the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Securities Administrator
for that purpose and designated in such notice. The initial Certificate
Principal Balance of this Certificate is set forth above. The Certificate
Principal Balance hereof will be reduced to the extent of distributions
allocable to principal hereon and any Realized Losses allocable hereto as
described in the Agreement.

                  Any transferee of this Certificate shall be deemed to make the
representations set forth in section 5.3(d) of the Agreement.

                  This Certificate is one of a duly authorized issue of
Certificates designated as set forth on the face hereof (the "Certificates").
The Certificates, in the aggregate, evidence the entire beneficial ownership
interest in the Trust Fund formed pursuant to the Agreement.

                  The Certificateholder, by its acceptance of this Certificate,
agrees that it will look solely to the Trust Fund for payment hereunder and that
none of the Depositor, the Trustee, the Master Servicer or the Securities
Administrator is 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 hereby, and the rights,
duties and immunities of the Securities Administrator.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor and the rights of the Certificateholders under the
Agreement from time to time by the parties thereto with the consent of the
Holders of Certificates affected thereby evidencing not less than 66-2/3% of the
aggregate Certificate Principal Balance of the related Class or Classes of
Certificates. 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 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
with the Securities Administrator upon surrender of this Certificate for
registration of transfer at the offices or agencies maintained by the Securities
Administrator for such purposes, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Securities Administrator duly
executed by the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates in authorized denominations
representing a like aggregate Percentage Interest will be issued to the
designated transferee.

                  The Certificates are issuable only as registered Certificates
without coupons in the Classes and denominations specified in the Agreement. As
provided in the Agreement and subject

                                      A-3-4

<PAGE>

to certain limitations therein set forth, this Certificate is exchangeable for
one or more new Certificates evidencing the same Class and in the same aggregate
Percentage Interest, as requested by the Holder surrendering the same.

                  No service charge will be made to the Certificateholders for
any such registration of transfer, but the Securities Administrator may require
payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith. The Depositor, the Master Servicer, the
Trustee, the Securities Administrator and any agent of any of them 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
Securities Administrator or any such agent shall be affected by notice to the
contrary.

                  The obligations created by the Agreement with respect to this
Certificate (other than the obligations to make payments to Certificateholders
with respect to the termination of the Agreement) shall terminate upon the
remittance of all funds due under the Agreement with respect to this
Certificate, coinciding with or following the earlier to occur of (i) the
maturity or other liquidation (or Advance with respect thereto) of the last
[Group I][Group II] Loan remaining in the Trust Fund and disposition of all
property acquired upon foreclosure or deed in lieu of foreclosure of any [Group
I][Group II] Loan or (ii) the optional repurchase by the party named in the
Agreement of all the [Group I][Group II] Loans and other related assets of the
Trust Fund in accordance with the terms of the Agreement. Such optional
repurchase may be made only on or after the Distribution Date on which the
aggregate Scheduled Principal Balance of the [Group I][Group II] Loans is less
than the percentage of the aggregate Scheduled Principal Balance specified in
the Agreement of the [Group I][Group II] Loans at the Cut-Off Date. The exercise
of such right will effect the early retirement of this Certificate. In no event
will the Trust Fund created by the Agreement continue beyond the expiration of
21 years after the death of certain persons identified in the Agreement.

                  Unless this Certificate has been countersigned by an
authorized signatory of the Securities Administrator by manual signature, this
Certificate shall not be entitled to any benefit under the Agreement, or be
valid for any purpose.

                                      A-3-5

<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated: April 30, 2004

                                  WELLS FARGO BANK, N.A.
                                  as Securities Administrator

                                  By:_______________________________________
                                               Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

                  This is one of the Class [I-M][II-MR]-[1][2][3] Certificates
referred to in the within-mentioned Agreement.

                                  WELLS FARGO BANK, N.A.
                                  as Securities Administrator

                                  By:_______________________________________
                                             Authorized Signatory

<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) a Percentage
Interest evidenced by the within Mortgage Pass- Through Certificate and hereby
authorizes the transfer of registration of such interest to assignee on the
Certificate Register of the Trust Fund.

                  I (We) further direct the Securities Administrator 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

                                      _________________________________________
                                             Signature Guaranteed

                            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 [I][II]-CE CERTIFICATE

                  THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE
GROUP [I][II] SENIOR CERTIFICATES AND THE GROUP [I][II] MEZZANINE CERTIFICATES,
AS DESCRIBED IN THE AGREEMENT (AS DEFINED HEREIN).

                  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").

                  DISTRIBUTIONS ON 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 AS
THE DENOMINATION OF THIS CERTIFICATE.

                  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 5.3(c) OF THE AGREEMENT.

                  NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON,
UNLESS THE TRANSFEREE PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 5.3(d)
OF THE AGREEMENT OR AN OPINION OF COUNSEL UNDER SECTION 5.3(d) OF THE AGREEMENT
THAT THE PURCHASE OF THIS CERTIFICATE IS PERMISSIBLE UNDER APPLICABLE LAW, WILL
NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION
406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA"), OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE DEPOSITOR, THE
MASTER SERVICER, THE TRUSTEE, THE SECURITIES ADMINISTRATOR, ANY SERVICER OR THE
TRUST FUND TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE
AGREEMENT.

<PAGE>

<TABLE>
<CAPTION>

<S>                                                       <C>
Certificate No. [1]

Class [I][II]-CE                                          Percentage Interest: _____

Date of Pooling and Servicing Agreement and               Aggregate Initial Certificate Principal Balance
Cut-Off Date:                                             of this Class as of the Cut-Off Date:
April 1, 2004                                             $_________

First Distribution Date:                                  Initial Certificate Principal Balance of this
May 25, 2004                                              Certificate as of the Cut-Off Date:
                                                          $----------

Master Servicer:
Wells Fargo Bank, N.A.                                    CUSIP:

Final Distribution Date:
[March][May] 2034
</TABLE>

                        MORTGAGE PASS-THROUGH CERTIFICATE
                                  SERIES 2004-3

                  evidencing a fractional undivided interest in the
                  distributions allocable to the Class [I][II]-CE Certificates
                  with respect to a trust fund consisting primarily of a pool of
                  conventional one- to four- family fixed and adjustable
                  interest rate mortgage loans secured by one- to four- family
                  residences, units in planned unit developments and individual
                  condominium units (the "Trust Fund") sold by DEUTSCHE MORTGAGE
                  SECURITIES, INC.

         This Certificate is payable solely from certain assets of the Trust
Fund as described in the Agreement (as defined below), and does not represent an
obligation of or interest in Deutsche Mortgage Securities, Inc., the Master
Servicer, the Trustee or the Securities Administrator referred to below or any
of their affiliates or any other person. Neither this Certificate nor the
underlying Group [I][II] Loans (as defined below) are guaranteed or insured by
any governmental entity or by Deutsche Mortgage Securities, Inc., the Master
Servicer, the Trustee or the Securities Administrator or any of their affiliates
or any other person. None of Deutsche Mortgage Securities, Inc., the Master
Servicer or any of their affiliates will have any obligation with respect to any
certificate or other obligation secured by or payable from payments on the
Certificates.

         This certifies that [______________________] is the registered owner of
the Percentage Interest evidenced hereby in the beneficial ownership interest of
Certificates of the same Class as this Certificate in the [fixed][adjustable]
rate mortgage loans and related assets included in the Trust Fund (the "Group
[I] [II] Loans") sold by Deutsche Mortgage Securities, Inc. ("DMSI"). The Group
[I][II] Loans were sold by DB Structured Products, Inc. to DMSI. Wells Fargo
Bank, N.A. will act as master

                                      A-4-2

<PAGE>

servicer of the Group [I][II] Loans (the "Master Servicer," which term includes
any successors thereto under the Agreement referred to below). The Trust Fund
was created pursuant to the Pooling and Servicing Agreement dated as of the
Cut-Off Date specified above (the "Agreement"), among DMSI, as depositor (the
"Depositor"), Wells Fargo Bank, N.A., as Master Servicer and securities
administrator (the "Securities Administrator") and HSBC Bank USA as trustee (the
"Trustee"), a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, capitalized terms used herein
shall have the meaning ascribed to them 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 its
acceptance hereof assents and by which such Holder is bound.

         The Securities Administrator will distribute on the 25th day of each
month, or, if such 25th day is not a Business Day, the immediately following
Business Day (each, a "Distribution Date"), commencing on the First Distribution
Date specified above, to the Person in whose name this Certificate is registered
at the close of business on the last Business Day of the calendar month
preceding the month of such Distribution Date, 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 Certificates of the same Class as this
Certificate. Any such distributions will be made by wire transfer in immediately
available funds to the account of such Person or by any other means of payment
acceptable to such Person. The last scheduled Distribution Date is the
Distribution Date in [March][May] 2034.

         Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Securities Administrator of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Securities Administrator for that
purpose and designated in such notice. The initial Certificate Principal Balance
of this Certificate is set forth above. The Certificate Principal Balance hereof
will be reduced to the extent of distributions allocable to principal hereon and
Realized Losses allocable hereto as described in the Agreement.

         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 Securities Administrator shall require
receipt of (i) 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 D and either
Exhibit E or Exhibit F, as applicable, or (ii) an Opinion of Counsel reasonably
satisfactory to the Trustee, the Depositor and the Securities Administrator 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, the Securities Administrator, the Master Servicer or any
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 Master Servicer, the Securities
Administrator 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

                                      A-4-3

<PAGE>

without registration or qualification. Any Holder desiring to effect a transfer
of this Certificate shall be required to indemnify the Trustee, the Securities
Administrator, the Depositor, the Seller 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 Class [I][II]-CE Certificate will be made unless
the Depositor, the Trustee and the Securities Administrator have received either
(i) an opinion of counsel under Section 5.3(d) of the Agreement stating, among
other things, that the transferee's acquisition of a Class[I][II]-CE Certificate
is permissible under applicable law, will not constitute or result in a
non-exempt prohibited transaction under Section 406 of the Employee Retirement
Income Security Act of 1974, as amended ("ERISA") or Section 4975 of the
Internal Revenue Code (the "Code") and will not subject the Depositor, the
Trustee, the Securities Administrator, the Master Servicer, any Servicer or the
Trust Fund to any obligation or liability in addition to those undertaken in the
Agreement or (ii) a representation letter, in the form as described by the
Agreement, stating that the transferee is not an employee benefit or other plan
subject to the prohibited transaction provisions of ERISA or Section 4975 of the
Code (a "Plan"), or any other person (including an investment manager, a named
fiduciary or a trustee of any Plan) acting, directly or indirectly, on behalf of
or purchasing any Certificate with "plan assets" of any Plan.

         This Certificate is one of a duly authorized issue of Certificates
designated as set forth on the face hereof (the "Certificates"). The
Certificates, in the aggregate, evidence the entire beneficial ownership
interest in the Trust Fund formed pursuant to the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the Trust Fund for payment hereunder and that none
of the Depositor, the Trustee, the Master Servicer or the Securities
Administrator is 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 hereby, and the rights,
duties and immunities of the Securities Administrator.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor and the rights of the Certificateholders under the Agreement from time
to time by the parties thereto with the consent of the Holders of Certificates
affected thereby evidencing not less than 66-2/3% of the aggregate Certificate
Principal Balance of the related Class or Classes of Certificates. 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 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 with the Securities
Administrator upon surrender of this Certificate for registration of transfer at
the offices or agencies maintained by the Securities Administrator for

                                      A-4-4

<PAGE>

such purposes, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Securities Administrator duly executed by
the Holder hereof or such Holder's attorney duly authorized in writing, and
thereupon one or more new Certificates in authorized denominations representing
a like aggregate Percentage Interest will be issued to the designated
transferee.

         The Certificates are issuable only as registered Certificates without
coupons in the Classes and denominations specified in the Agreement. As provided
in the Agreement and subject to certain limitations therein set forth, this
Certificate is exchangeable for one or more new Certificates evidencing the same
Class and in the same aggregate Percentage Interest, as requested by the Holder
surrendering the same.

         No service charge will be made to the Certificateholders for any such
registration of transfer, but the Securities Administrator may require payment
of a sum sufficient to cover any tax or other governmental charge payable in
connection therewith. The Depositor, the Master Servicer, the Trustee, the
Securities Administrator and any agent of any of them 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 Securities
Administrator or any such agent shall be affected by notice to the contrary.

         The obligations created by the Agreement with respect to this
Certificate (other than the obligations to make payments to Certificateholders
with respect to the termination of the Agreement) shall terminate upon the
remittance of all funds due under the Agreement with respect to this
Certificate, coinciding with or following the earlier to occur of (i) the
maturity or other liquidation (or Advance with respect thereto) of the last
[Group I][Group II] Loan remaining in the Trust Fund and disposition of all
property acquired upon foreclosure or deed in lieu of foreclosure of any [Group
I][Group II] Loan or (ii) the optional repurchase by the party named in the
Agreement of all the [Group I][Group II] Loans and other related assets of the
Trust Fund in accordance with the terms of the Agreement. Such optional
repurchase may be made only on or after the Distribution Date on which the
aggregate Scheduled Principal Balance of the [Group I][Group II] Loans is less
than the percentage of the aggregate Scheduled Principal Balance specified in
the Agreement of the [Group I][Group II] Loans at the Cut-Off Date. The exercise
of such right will effect the early retirement of this Certificate. In no event
will the Trust Fund created by the Agreement continue beyond the expiration of
21 years after the death of certain persons identified in the Agreement.

         Unless this Certificate has been countersigned by an authorized
signatory of the Securities Administrator by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement, or be valid for any
purpose.

                                      A-4-5

<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated: April 30, 2004

                                  WELLS FARGO BANK, N.A.
                                  as Securities Administrator

                                  By:_______________________________________
                                              Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

                  This is one of the Class[I][II]-CE Certificates referred to in
the within-mentioned Agreement.

                                  WELLS FARGO BANK, N.A.
                                  as Securities Administrator

                                  By:_______________________________________
                                             Authorized Signatory

<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) a Percentage
Interest evidenced by the within Mortgage Pass- Through Certificate and hereby
authorizes the transfer of registration of such interest to assignee on the
Certificate Register of the Trust Fund.

                  I (We) further direct the Securities Administrator 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

                                      _________________________________________
                                             Signature Guaranteed

                            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 [I][II]-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 5.3 OF THE AGREEMENT.

                  NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON,
UNLESS THE TRANSFEREE PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 5.3(d)
OF THE AGREEMENT OR AN OPINION OF COUNSEL UNDER SECTION 5.3(d) OF THE AGREEMENT
THAT THE PURCHASE OF THIS CERTIFICATE IS PERMISSIBLE UNDER APPLICABLE LAW, WILL
NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION
406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA"), OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE DEPOSITOR, THE
MASTER SERVICER, THE TRUSTEE, THE SECURITIES ADMINISTRATOR, ANY SERVICER OR THE
TRUST FUND TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE
AGREEMENT.

<PAGE>

<TABLE>
<CAPTION>

<S>                                                       <C>
Certificate No. [1]

Class [I][II]-P                                           Percentage Interest: _____

Date of Pooling and Servicing Agreement and               Aggregate Initial Certificate Principal Balance
Cut-Off Date:                                             of this Class as of the Cut-Off Date:
April 1, 2004                                             $100.00

First Distribution Date:                                  Initial Certificate Principal Balance of this
May 25, 2004                                              Certificate as of the Cut-Off Date:
                                                          $100.00

Master Servicer:
Wells Fargo Bank, N.A.                                    CUSIP:

Final Distribution Date:
[March][May] 2034
</TABLE>

                        MORTGAGE PASS-THROUGH CERTIFICATE
                                  SERIES 2004-3

                           evidencing a fractional undivided interest in the
                           distributions allocable to the Class [I][II]-P
                           Certificates with respect to a trust fund consisting
                           primarily of a pool of conventional one- to four-
                           family fixed and adjustable interest rate mortgage
                           loans secured by one- to four- family residences,
                           units in planned unit developments and individual
                           condominium units (the "Trust Fund") sold by DEUTSCHE
                           MORTGAGE SECURITIES, INC.

         This Certificate is payable solely from certain assets of the Trust
Fund as described in the Agreement (as defined below), and does not represent an
obligation of or interest in Deutsche Mortgage Securities, Inc., the Master
Servicer, the Trustee or the Securities Administrator referred to below or any
of their affiliates or any other person. Neither this Certificate nor the
underlying Group [I][II] Loans (as defined below) are guaranteed or insured by
any governmental entity or by Deutsche Mortgage Securities, Inc., the Master
Servicer, the Trustee or the Securities Administrator or any of their affiliates
or any other person. None of Deutsche Mortgage Securities, Inc., the Master
Servicer or any of their affiliates will have any obligation with respect to any
certificate or other obligation secured by or payable from payments on the
Certificates.

         This certifies that [_______________________] is the registered owner
of the Percentage Interest evidenced hereby in the beneficial ownership interest
of Certificates of the same Class as this Certificate in the [fixed][adjustable]
rate mortgage loans and related assets included in the Trust Fund (the "Group
[I] [II] Loans") sold by Deutsche Mortgage Securities, Inc. ("DMSI"). The Group
[I][II]

                                      A-5-2

<PAGE>

Loans were sold by DB Structured Products, Inc. to DMSI. Wells Fargo Bank, N.A.
will act as master servicer of the Group [I][II] Loans (the "Master Servicer,"
which term includes any successors thereto under the Agreement referred to
below). The Trust Fund was created pursuant to the Pooling and Servicing
Agreement dated as of the Cut-Off Date specified above (the "Agreement"), among
DMSI, as depositor (the "Depositor"), Wells Fargo Bank, N.A., as Master Servicer
and securities administrator (the "Securities Administrator") and HSBC Bank USA
as trustee (the "Trustee"), a summary of certain of the pertinent provisions of
which is set forth hereafter. To the extent not defined herein, capitalized
terms used herein shall have the meaning ascribed to them 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 its 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 such 25th day (a "Distribution Date"),
commencing on the First Distribution Date specified above, to the Person in
whose name this Certificate is registered on the last Business Day of the
calendar month immediately preceding the month in which the related Distribution
Date occurs, 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 the Class [I][II]-P Certificates on such Distribution Date pursuant
to the Agreement. Any such distributions will be made by wire transfer in
immediately available funds to the account of such Person or by any other means
of payment acceptable to such Person.

                  Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Securities Administrator of the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Securities Administrator
for that purpose and designated in such notice. The initial Certificate
Principal Balance of this Certificate is set forth above.

                  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 Securities Administrator shall require
receipt of (i) 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 D and either
Exhibit E or Exhibit F, as applicable, or (ii) an Opinion of Counsel reasonably
satisfactory to the Trustee, the Depositor and the Securities Administrator 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, the Securities Administrator, the Master Servicer or any
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 Master Servicer, the Securities
Administrator 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 Securities Administrator, the
Depositor, the Seller and the

                                      A-5-3

<PAGE>

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 Class [I][II]-P Certificate will be made
unless the Depositor, the Trustee and the Securities Administrator have received
either (i) an opinion of counsel under Section 5.3(d) of the Agreement stating,
among other things, that the transferee's acquisition of a Class [I][II]-P
Certificate is permissible under applicable law, will not constitute or result
in a non-exempt prohibited transaction under Section 406 of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA") or Section 4975 of
the Internal Revenue Code (the "Code") and will not subject the Depositor, the
Trustee, the Securities Administrator, the Master Servicer, any Servicer or the
Trust Fund to any obligation or liability in addition to those undertaken in the
Agreement or (ii) a representation letter, in the form as described by the
Agreement, stating that the transferee is not an employee benefit or other plan
subject to the prohibited transaction provisions of ERISA or Section 4975 of the
Code (a "Plan"), or any other person (including an investment manager, a named
fiduciary or a trustee of any Plan) acting, directly or indirectly, on behalf of
or purchasing any Certificate with "plan assets" of any Plan.

                  This Certificate is one of a duly authorized issue of
Certificates designated as set forth on the face hereof (the "Certificates").
The Certificates, in the aggregate, evidence the entire beneficial ownership
interest in the Trust Fund formed pursuant to the Agreement.

                  The Certificateholder, by its acceptance of this Certificate,
agrees that it will look solely to the Trust Fund for payment hereunder and that
none of the Depositor, the Trustee, the Master Servicer or the Securities
Administrator is 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 hereby, and the rights,
duties and immunities of the Securities Administrator.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor and the rights of the Certificateholders under the
Agreement from time to time by the parties thereto with the consent of the
Holders of Certificates affected thereby evidencing not less than 66-2/3% of the
aggregate Certificate Principal Balance of the related Class or Classes of
Certificates. 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 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
with the Securities Administrator upon surrender of this Certificate for
registration of transfer at the offices or agencies maintained by the Securities
Administrator for such purposes, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Securities Administrator duly
executed by the Holder hereof or such Holder's

                                      A-5-4

<PAGE>

attorney duly authorized in writing, and thereupon one or more new Certificates
in authorized denominations representing a like aggregate Percentage Interest
will be issued to the designated transferee.

                  The Certificates are issuable only as registered Certificates
without coupons in the Classes and denominations specified in the Agreement. As
provided in the Agreement and subject to certain limitations therein set forth,
this Certificate is exchangeable for one or more new Certificates evidencing the
same Class and in the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

                  No service charge will be made to the Certificateholders for
any such registration of transfer, but the Securities Administrator may require
payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith. The Depositor, the Master Servicer, the
Securities Administrator, the Trustee and any agent of any of them 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 Securities
Administrator, the Trustee or any such agent shall be affected by notice to the
contrary.

                  The obligations created by the Agreement with respect to this
Certificate (other than the obligations to make payments to Certificateholders
with respect to the termination of the Agreement) shall terminate upon the
remittance of all funds due under the Agreement with respect to this
Certificate, coinciding with or following the earlier to occur of (i) the
maturity or other liquidation (or Advance with respect thereto) of the last
[Group I][Group II] Loan remaining in the Trust Fund and disposition of all
property acquired upon foreclosure or deed in lieu of foreclosure of any [Group
I][Group II] Loan or (ii) the optional repurchase by the party named in the
Agreement of all the [Group I][Group II] Loans and other related assets of the
Trust Fund in accordance with the terms of the Agreement. Such optional
repurchase may be made only on or after the Distribution Date on which the
aggregate Scheduled Principal Balance of the [Group I][Group II] Loans is less
than the percentage of the aggregate Scheduled Principal Balance specified in
the Agreement of the [Group I][Group II] Loans at the Cut-Off Date. The exercise
of such right will effect the early retirement of this Certificate. In no event,
however, will the Trust Fund created by the Agreement continue beyond the
expiration of 21 years after the death of certain persons identified in the
Agreement.

                  Unless this Certificate has been countersigned by an
authorized signatory of the Securities Administrator by manual signature, this
Certificate shall not be entitled to any benefit under the Agreement, or be
valid for any purpose.

                                      A-5-5

<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated: April 30, 2004

                                  WELLS FARGO BANK, N.A.
                                  as Securities Administrator

                                  By:_______________________________________
                                               Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

                  This is one of the Class [I][II]-P Certificates referred to in
the within-mentioned Agreement.

                                  WELLS FARGO BANK, N.A.
                                  as Securities Administrator

                                  By:_______________________________________
                                              Authorized Signatory

<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) a Percentage
Interest evidenced by the within Mortgage Pass- Through Certificate and hereby
authorizes the transfer of registration of such interest to assignee on the
Certificate Register of the Trust Fund.

                  I (We) further direct the Securities Administrator 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

                                      _________________________________________
                                             Signature Guaranteed

                            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 R CERTIFICATE

         THIS CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED
STATES PERSON OR A DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

         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 (THE "CODE").

         ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE
MADE ONLY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.3(c) AND 5.3(e) OF THE
AGREEMENT REFERRED TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE
TRANSFEREE PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 5.3(d) OF THE
AGREEMENT OR AN OPINION OF COUNSEL UNDER SECTION 5.3(d) OF THE AGREEMENT THAT
THE PURCHASE OF THIS CERTIFICATE IS PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF
THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR
SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE MASTER SERVICER, THE TRUSTEE,
THE DEPOSITOR, THE SECURITIES ADMINISTRATOR, ANY SERVICER OR THE TRUST FUND TO
ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE AGREEMENT.

         ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE
MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES (I) AN AFFIDAVIT TO THE SECURITIES
ADMINISTRATOR 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 IMPOSED BY SECTION 511
OF THE CODE, (3) ANY ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF THE CODE
(ANY SUCH PERSON 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

<PAGE>

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 5.3(d) OF THE
AGREEMENT REFERRED TO HEREIN. ANY PERSON THAT IS A DISQUALIFIED ORGANIZATION IS
PROHIBITED FROM ACQUIRING BENEFICIAL OWNERSHIP OF THIS CERTIFICATE.

         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 5.3(c) AND 5.3(e) OF THE AGREEMENT.

                                      A-6-2

<PAGE>

Certificate No. [1]

Class R                                              Percentage Interest: 100%

Date of Pooling and Servicing Agreement and
Cut-Off Date:
April 1, 2004

First Distribution Date:
May 25, 2004

Master Servicer:
Wells Fargo Bank, N.A.                               CUSIP:

Final Distribution Date:
[May] 2034

                        MORTGAGE PASS-THROUGH CERTIFICATE
                                  SERIES 2004-3

                  evidencing a fractional undivided interest in the
                  distributions allocable to the Class R Certificates with
                  respect to a trust fund consisting primarily of a pool of
                  conventional one- to four-family fixed and adjustable interest
                  rate mortgage loans secured by one- to four- family
                  residences, units in planned unit developments and individual
                  condominium units (the "Trust Fund") sold by DEUTSCHE MORTGAGE
                  SECURITIES, INC.

         This Certificate is payable solely from the assets of the Trust Fund as
described in the Agreement (as defined below), and does not represent an
obligation of or interest in Deutsche Mortgage Securities, Inc., the Master
Servicer, the Trustee or the Securities Administrator referred to below or any
of their affiliates or any other person. Neither this Certificate nor the
underlying Mortgage Loans (as defined below) are guaranteed or insured by any
governmental entity or by Deutsche Mortgage Securities, Inc., the Master
Servicer, the Trustee or the Securities Administrator or any of their affiliates
or any other person. None of Deutsche Mortgage Securities, Inc., the Master
Servicer or any of their affiliates will have any obligation with respect to any
certificate or other obligation secured by or payable from payments on the
Certificates.

         This certifies that [_____________________] is the registered owner of
the Percentage Interest evidenced hereby in the beneficial ownership interest of
Certificates of the same Class as this Certificate in the fixed and adjustable
rate mortgage loans and related assets included in the Trust Fund (the "Mortgage
Loans") sold by Deutsche Mortgage Securities, Inc. ("DMSI"). The Mortgage Loans
were sold by DB Structured Products, Inc. to DMSI. Wells Fargo Bank, N.A. will
act as master

                                      A-6-3

<PAGE>

servicer of the Mortgage Loans (the "Master Servicer," which term includes any
successors thereto under the Agreement referred to below). The Trust Fund was
created pursuant to the Pooling and Servicing Agreement dated as of the Cut-Off
Date specified above (the "Agreement"), among DMSI, as depositor (the
"Depositor"), Wells Fargo Bank, N.A., as Master Servicer and securities
administrator (the "Securities Administrator") and HSBC Bank USA as trustee (the
"Trustee"), a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, capitalized terms used herein
shall have the meaning ascribed to them 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 its
acceptance hereof assents and by which such Holder is bound.

         Each Holder of this Certificate will be deemed to have agreed to be
bound by the restrictions set forth in the Agreement to the effect that (i) each
person holding or acquiring any Ownership Interest in this Certificate must be a
United States Person and a Permitted Transferee, (ii) the transfer of any
Ownership Interest in this Certificate will be conditioned upon the delivery to
the Securities Administrator of, among other things, an affidavit to the effect
that it is a United States Person and Permitted Transferee, (iii) 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, and (iv) if any person other than a United States
Person and a Permitted Transferee acquires any Ownership Interest in this
Certificate in violation of such restrictions, then the Depositor will have the
right, in its sole discretion and without notice to the Holder of this
Certificate, to sell this Certificate to a purchaser selected by the Depositor,
which purchaser may be the Depositor, or any affiliate of the Depositor, on such
terms and conditions as the Depositor may choose.

         The Securities Administrator will distribute on the 25th day of each
month, or, if such 25th day is not a Business Day, the immediately following
Business Day (each, a "Distribution Date"), commencing on the First Distribution
Date specified above, to the Person in whose name this Certificate is registered
at the close of business on the last Business Day of the calendar month
immediately preceding the month in which such Distribution Date occurs, an
amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amounts required to be distributed to the Holders of
Certificates of the same Class as this Certificate. Any such distributions will
be made by wire transfer in immediately available funds to the account of such
Person or by any other means of payment acceptable to such Person. The last
scheduled Distribution Date is the Distribution Date in May 2034.

         Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Securities Administrator of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Securities Administrator for that
purpose and designated in such notice.

         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 Securities Administrator shall require
receipt of (i) written certifications from the Holder of the Certificate
desiring to effect the

                                      A-6-4

<PAGE>

transfer, and from such Holder's prospective transferee, substantially in the
forms attached to the Agreement as Exhibit D and either Exhibit E or Exhibit F,
as applicable, or (ii) 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, the Securities Administrator 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 Master Servicer, the Securities Administrator 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 Securities Administrator, the Depositor, the Seller 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 Class R Certificate will be made unless the
Depositor, the Trustee and the Securities Administrator have received either (i)
an opinion of counsel under Section 5.3(d) of the Agreement stating, among other
things, that the transferee's acquisition of a Class R Certificate is
permissible under applicable law, will not constitute or result in a non-exempt
prohibited transaction under Section 406 of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA") or Section 4975 of the Internal
Revenue Code (the "Code") and will not subject the Depositor, the Trustee, the
Securities Administrator, the Master Servicer, any Servicer or the Trust Fund to
any obligation or liability in addition to those undertaken in the Agreement or
(ii) a representation letter, in the form as described by the Agreement, stating
that the transferee is not an employee benefit or other plan subject to the
prohibited transaction provisions of ERISA or Section 4975 of the Code (a
"Plan"), or any other person (including an investment manager, a named fiduciary
or a trustee of any Plan) acting, directly or indirectly, on behalf of or
purchasing any Certificate with "plan assets" of any Plan.

         This Certificate is one of a duly authorized issue of Certificates
designated as set forth on the face hereof (the "Certificates"). The
Certificates, in the aggregate, evidence the entire beneficial ownership
interest in the Trust Fund formed pursuant to the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the Trust Fund for payment hereunder and that none
of the Depositor, the Trustee, the Master Servicer or the Securities
Administrator is 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 hereby, and the rights,
duties and immunities of the Securities Administrator.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor and the rights of the Certificateholders under the Agreement from time
to time by the parties thereto with the consent of the Holders of Certificates
affected thereby evidencing not less than 66-2/3% of the aggregate

                                      A-6-5

<PAGE>

Certificate Principal Balance of the related Class or Classes of Certificates.
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 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 with the Securities
Administrator upon surrender of this Certificate for registration of transfer at
the offices or agencies maintained by the Securities Administrator for such
purposes, duly endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Securities Administrator duly executed by the Holder
hereof or such Holder's attorney duly authorized in writing, and thereupon one
or more new Certificates in authorized denominations representing a like
aggregate Percentage Interest will be issued to the designated transferee.

         The Certificates are issuable only as registered Certificates without
coupons in the Classes and denominations specified in the Agreement. As provided
in the Agreement and subject to certain limitations therein set forth, this
Certificate is exchangeable for one or more new Certificates evidencing the same
Class and in the same aggregate Percentage Interest, as requested by the Holder
surrendering the same.

                  No service charge will be made to the Certificateholders for
any such registration of transfer, but the Securities Administrator may require
payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith. The Depositor, the Master Servicer, the
Securities Administrator, the Trustee and any agent of any of them 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 Securities
Administrator, the Trustee or any such agent shall be affected by notice to the
contrary.

                  The obligations created by the Agreement with respect to this
Certificate (other than the obligations to make payments to Certificateholders
with respect to the termination of the Agreement) shall terminate upon the
remittance of all funds due under the Agreement, coinciding with or following
the earlier to occur of (i) the maturity or other liquidation (or Advance with
respect thereto) of the last Mortgage Loan remaining in the Trust Fund and
disposition of all property acquired upon foreclosure or deed in lieu of
foreclosure of any Mortgage Loan or (ii) the optional purchase by the party
named in the Agreement of all the Mortgage Loans and other related assets of the
Trust Fund remaining in the outstanding Loan Group in accordance with the terms
of the Agreement. Such optional purchase may be made only on or after the
Distribution Date on which the aggregate Scheduled Principal Balance of the
Mortgage Loans in such Loan Group is less than the percentage of the aggregate
Scheduled Principal Balance specified in the Agreement of the Mortgage Loans in
such Loan Group at the Cut-Off Date. The exercise of such right will effect the
early retirement of this Certificate. In no event, however, will the Trust Fund
created by the Agreement continue beyond the expiration of 21 years after the
death of certain persons identified in the Agreement.

                                      A-6-6

<PAGE>

         Unless this Certificate has been countersigned by an authorized
signatory of the Securities Administrator by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement, or be valid for any
purpose.

                                      A-6-7

<PAGE>

         IN WITNESS WHEREOF, the Securities Administrator has caused this
Certificate to be duly executed.

Dated: April 30, 2004

                                  WELLS FARGO BANK, N.A.
                                  as Securities Administrator

                                  By:_______________________________________
                                               Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

                  This is one of the Class R Certificates referred to in the
within-mentioned Agreement.

                                  WELLS FARGO BANK, N.A.
                                  as Securities Administrator

                                  By:_______________________________________
                                               Authorized Signatory

<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) a Percentage
Interest evidenced by the within Mortgage Pass- Through Certificate and hereby
authorizes the transfer of registration of such interest to assignee on the
Certificate Register of the Trust Fund.

                  I (We) further direct the Securities Administrator 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

                                      _________________________________________
                                             Signature Guaranteed

                            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]
                                   ----------

<PAGE>

                                                                       EXHIBIT C

                           FORM OF TRANSFER AFFIDAVIT

                                             Affidavit pursuant to Section
                                             860E(e)(4) of the Internal Revenue
                                             Code of 1986, as amended, and for
                                             other purposes

STATE OF          )
                  )ss:
COUNTY OF         )

         [NAME OF OFFICER], being first duly sworn, deposes and says:

         1. That he/she is [Title of Officer] of [Name of Investor] (the
"Investor"), a [savings institution] [corporation] duly organized and existing
under the laws of [the State of _____] [the United States], on behalf of which
he makes this affidavit.

         2. That (i) the Investor is not a "disqualified organization" as
defined in Section 860E(e)(5) of the Internal Revenue Code of 1986, as amended
(the "Code"), and will not be a disqualified organization as of [Closing Date]
[date of purchase]; (ii) it is not acquiring the Deutsche Mortgage Securities,
Inc. Mortgage Loan Trust, Series 2004-3 Mortgage Pass-Through Certificates,
Class R Certificates (the "Residual Certificates") for the account of a
disqualified organization; (iii) it consents to any amendment of the Pooling and
Servicing Agreement that shall be deemed necessary by Deutsche Mortgage
Securities, Inc. (upon advice of counsel) to constitute a reasonable arrangement
to ensure that the Residual Certificates will not be owned directly or
indirectly by a disqualified organization; and (iv) it will not transfer such
Residual Certificates unless (a) it has received from the transferee an
affidavit in substantially the same form as this affidavit containing these same
four representations and (b) as of the time of the transfer, it does not have
actual knowledge that such affidavit is false.

         3. That the Investor is one of the following: (i) a citizen or resident
of the United States, (ii) a corporation or partnership (including an entity
treated as a corporation or partnership for federal income tax purposes) created
or organized in, or under the laws of, the United States or any state thereof or
the District of Columbia (except, in the case of a partnership, to the extent
provided in regulations), provided that 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 United States Persons, (iii) an
estate whose income is subject to United States federal income tax regardless of
its source, or (iv) a trust other than a "foreign trust," as defined in Section
7701 (a)(31) of the Code.

         4. That the Investor's taxpayer identification number is
______________________.

         5. That no purpose of the acquisition of the Residual Certificates is
to avoid or impede the assessment or collection of tax.

<PAGE>

         6. That the Investor understands that, as the holder of the Residual
Certificates, the Investor may incur tax liabilities in excess of any cash flows
generated by such Residual Certificates.

         7. That the Investor intends to pay taxes associated with holding the
Residual Certificates as they become due.

         IN WITNESS WHEREOF, the Investor has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
[Title of Officer] this ____ day of _________, 20__.

                [NAME OF INVESTOR]

                By:
                      --------------------------------------------------------
                      [Name of Officer]
                      [Title of Officer]
                      [Address of Investor for receipt of distributions]

                      Address of Investor for receipt of tax
                      information:

                                       C-2

<PAGE>

         Personally appeared before me the above-named [Name of Officer], known
or proved to me to be the same person who executed the foregoing instrument and
to be the [Title of Officer] of the Investor, 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
Investor.

         Subscribed and sworn before me this ___ day of _________, 20___.

NOTARY PUBLIC

COUNTY OF

STATE OF

My commission expires the ___ day of ___________________, 20___.

                                       C-3

<PAGE>

                                                                       EXHIBIT D

                         FORM OF TRANSFEROR CERTIFICATE

                                               ______________,200___

HSBC Bank USA
452 Fifth Avenue
New York, New York 10018
Attention: Deutsche Mortgage Securities Trust 2004-3

Wells Fargo Bank, N.A.
Sixth Street & Marquette Avenue
Minneapolis, Minnesota 55479
Attention:     Deutsche Mortgage Securities, Inc., 2004-3

Deutsche Mortgage Securities, Inc.
60 Wall Street
New York, New York 10005
Attention:     Deutsche Mortgage Securities, Inc.
               Alternative Loan Trust, Series 2004-3

Re:      Deutsche Mortgage Securities, Inc. Mortgage Loan Trust, Series 2004-3,
         Class [[I][II]-CE][[I][II]-P][R]Mortgage Pass-Through Certificates
         --------------------------------------------------------------------

Ladies and Gentlemen:

         In connection with the sale by ___________ (the "Seller") to ________
(the "Purchaser") of $_________ Initial Certificate Principal Balance of Series
2004-3 Mortgage Pass-Through Certificates, Class _____ (the "Certificates"),
issued pursuant to the Pooling and Servicing Agreement (the "Pooling and
Servicing Agreement"), dated as of April 1, 2004 among Deutsche Mortgage
Securities, Inc., as depositor (the "Depositor"), Wells Fargo Bank, N.A., as
master servicer and securities administrator, and HSBC Bank USA, as trustee (the
"Trustee"). The Seller hereby certifies, represents and warrants to, a covenants
with, the Depositor, the Trustee and the Securities Administrator that:

         Neither the Seller 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, or
(e) has taken any other action, that (as to any of (a) through (e) above) would
constitute a distribution of the Certificates under the Securities Act of 1933
(the "Act"), that would render the disposition of any Certificate a violation of
Section 5 of the Act or any state securities law, or that

<PAGE>

would require registration or qualification pursuant thereto. The Seller will
not act in any manner set forth in the foregoing sentence with respect to any
Certificate. The Seller has not and will not sell or otherwise transfer any of
the Certificates, except in compliance with the provisions of the Pooling and
Servicing Agreement.

                                       Very truly yours,

                                       (Seller)

                                       By:
                                          --------------------------------------

                                       Name:
                                            ------------------------------------

                                       Title:
                                             -----------------------------------

                                       D-2

<PAGE>

                                                                       EXHIBIT E

             FORM OF INVESTOR REPRESENTATION LETTER (NON-RULE 144A)

                                                 ___________,200__

HSBC Bank USA
452 Fifth Avenue
New York, New York 10018
Attention: Deutsche Mortgage Securities Trust 2004-3

Wells Fargo Bank, N.A.
Sixth Street & Marquette Avenue
Minneapolis, Minnesota 55479
Attention: Deutsche Mortgage Securities, Inc., 2004-3

Deutsche Mortgage Securities, Inc.
60 Wall Street
New York, New York 10005
Attention: Deutsche Mortgage Securities, Inc.
           Alternative Loan Trust, Series 2004-3

         Re:      Deutsche Mortgage Securities, Inc. Mortgage Loan Trust, Series
                  2004-3, Class [[I][II]-CE][[I][II]-P][R] Mortgage Pass-Through
                  Certificates
                  -------------------------------------------------------------

Ladies and Gentlemen:

         ______________ (the "Purchaser") intends to purchase from
______________ (the "Seller") $_________ Initial Certificate Principal Balance
of Series 2004-3 Mortgage Pass-Through Certificates, Class _____ (the
"Certificates"), issued pursuant to the Pooling and Servicing Agreement (the
"Pooling and Servicing Agreement"), dated as of April 1, 2004 among Deutsche
Mortgage Securities, Inc., as depositor (the "Depositor"), Wells Fargo Bank,
N.A., as master servicer and securities administrator, and HSBC Bank USA, as
trustee (the "Trustee"). All terms used herein and not otherwise defined shall
have the meanings set forth in the Pooling and Servicing Agreement. The
Purchaser hereby certifies, represents and warrants to, and covenants with, the
Depositor, the Securities Administrator and the Trustee that:

                           1. The Purchaser understands that (a) the
                  Certificates have not been and will not be registered or
                  qualified under the Securities Act of 1933, as amended (the
                  "Act") or any state securities law, (b) the Depositor is not
                  required to so register or qualify the Certificates, (c) the
                  Certificates may be resold only if registered and qualified
                  pursuant to the provisions of the Act or any state securities
                  law, or if an exemption from such registration and
                  qualification is available, (d) the Pooling and Servicing
                  Agreement contains restrictions regarding the transfer of the
                  Certificates and (e) the Certificates will bear a legend to
                  the foregoing effect.

<PAGE>

                           2. The Purchaser is acquiring the Certificates for
                  its own account for investment only and not with a view to or
                  for sale in connection with any distribution thereof in any
                  manner that would violate the Act or any applicable state
                  securities laws.

                           3. The Purchaser is (a) a substantial, sophisticated
                  institutional investor having such knowledge and experience in
                  financial and business matters, and, in particular, in such
                  matters related to securities similar to the Certificates,
                  such that it is capable of evaluating the merits and risks of
                  investment in the Certificates, (b) able to bear the economic
                  risks of such an investment and (c) an "accredited investor"
                  within the meaning of Rule 501 (a) promulgated pursuant to the
                  Act.

                           4. The Purchaser has been furnished with, and has had
                  an opportunity to review (a) [a copy of the Private Placement
                  Memorandum, dated ______, 2004, relating to the Certificates
                  (b)] a copy of the Pooling and Servicing Agreement and [(b)]
                  [(c)] such other information concerning the Certificates, the
                  Mortgage Loans and the Depositor as has been requested by the
                  Purchaser from the Depositor or the Seller and is relevant to
                  the Purchaser's decision to purchase the Certificates. The
                  Purchaser has had any questions arising from such review
                  answered by the Depositor or the Seller to the satisfaction of
                  the Purchaser. [If the Purchaser did not purchase the
                  Certificates from the Seller in connection with the initial
                  distribution of the Certificates and was provided with a copy
                  of the Private Placement Memorandum (the "Memorandum")
                  relating to the original sale (the "Original Sale") of the
                  Certificates by the Depositor, the Purchaser acknowledges that
                  such Memorandum was provided to it by the Seller, that the
                  Memorandum was prepared by the Depositor solely for use in
                  connection with the Original Sale and the Depositor did not
                  participate in or facilitate in any way the purchase of the
                  Certificates by the Purchaser from the Seller, and the
                  Purchaser agrees that it will look solely to the Seller and
                  not to the Depositor with respect to any damage, liability,
                  claim or expense arising out of, resulting from or in
                  connection with (a) error or omission, or alleged error or
                  omission, contained in the Memorandum, or (b) any information,
                  development or event arising after the date of the
                  Memorandum.]

                           5. The Purchaser has not and will not nor has it
                  authorized or will it authorize any person to (a) offer,
                  pledge, sell, dispose of or otherwise transfer any
                  Certificate, any interest in any Certificate or any other
                  similar security to any person in any manner, (b) solicit any
                  offer to buy or to accept a pledge, disposition of other
                  transfer of any Certificate, any interest in any Certificate
                  or any other similar security from any person in any manner,
                  (c) otherwise approach or negotiate with respect to any
                  Certificate, any interest in any Certificate or any other
                  similar security with any person in any manner, (d) make any
                  general solicitation by means of general advertising or in any
                  other manner or (e) take any other action, that (as to any of
                  (a) through (e) above) would constitute a distribution of any
                  Certificate under the Act, that would render the disposition
                  of any Certificate a violation of Section 5 of the Act or any
                  state securities law, or that would require registration or
                  qualification pursuant thereto. The Purchaser will not sell or
                  otherwise transfer any of the Certificates, except in
                  compliance with the provisions of the Pooling and Servicing
                  Agreement.

<PAGE>

                                         Very truly yours,

                                         (Purchaser)

                                         By:
                                            ------------------------------------

                                         Name:
                                              ----------------------------------

                                         Title:
                                               ---------------------------------

                                       E-3

<PAGE>

                                                                       EXHIBIT F

                       FORM OF RULE 144A INVESTMENT LETTER

                                                                        [Date]

HSBC Bank USA
452 Fifth Avenue
New York, New York 10018
Attention: Deutsche Mortgage Securities Trust 2004-3

Wells Fargo Bank, N.A.
Sixth Street & Marquette Avenue
Minneapolis, Minnesota 55479
Attention: Deutsche Mortgage Securities, Inc., 2004-3

Deutsche Mortgage Securities, Inc.
60 Wall Street
New York, New York 10005
Attention: Deutsche Mortgage Securities, Inc.
           Alternative Loan Trust, Series 2004-3

         Re:      Deutsche Mortgage Securities, Inc. Mortgage Loan Trust, Series
                  2004-3 Mortgage Pass-Through Certificates, (the
                  "Certificates"), including the Class I-CE, II-CE, I-P, II-P
                  and R Certificates (the "Privately Offered Certificates")
                  ---------------------------------------------------------

Dear Ladies and Gentlemen:

         In connection with our purchase of Privately Offered Certificates, we
confirm that:

                  (i)      we understand that the Privately Offered Certificates
                           are not being registered under the Securities Act of
                           1933, as amended (the "Act") or any applicable state
                           securities or "Blue Sky" laws, and are being sold to
                           us in a transaction that is exempt from the
                           registration requirements of such laws;

                  (ii)     any information we desired concerning the
                           Certificates, including the Privately Offered
                           Certificates, the trust in which the Certificates
                           represent the entire beneficial ownership interest
                           (the "Trust") or any other matter we deemed relevant
                           to our decision to purchase Privately Offered
                           Certificates has been made available to us;

                  (iii)    we are able to bear the economic risk of investment
                           in Privately Offered Certificates; we are an
                           institutional "accredited investor" as defined in
                           Section 501(a) of Regulation D promulgated under the
                           Act and a sophisticated institutional investor;

<PAGE>

                  (iv)     we are acquiring Privately Offered Certificates for
                           our own account, not as nominee for any other person,
                           and not with a present view to any distribution or
                           other disposition of the Privately Offered
                           Certificates;

                  (v)      we agree the Privately Offered Certificates must be
                           held indefinitely by us (and may not be sold,
                           pledged, hypothecated or in any way disposed of)
                           unless subsequently registered under the Act and any
                           applicable state securities or "Blue Sky" laws or an
                           exemption from the registration requirements of the
                           Act and any applicable state securities or "Blue Sky"
                           laws is available;

                  (vi)     we agree that in the event that at some future time
                           we wish to dispose of or exchange any of the
                           Privately Offered Certificates (such disposition or
                           exchange not being currently foreseen or
                           contemplated), we will not transfer or exchange any
                           of the Privately Offered Certificates unless:

                                    (A) (1) the sale is to an Eligible Purchaser
                           (as defined below), (2) if required by the Pooling
                           and Servicing Agreement (as defined below) a letter
                           to substantially the same effect as either this
                           letter or, if the Eligible Purchaser is a Qualified
                           Institutional Buyer as defined under Rule 144A of the
                           Act, the Rule 144A and Related Matters Certificate in
                           the form attached to the Pooling and Servicing
                           Agreement (as defined below) (or such other
                           documentation as may be acceptable to the Securities
                           Administrator) is executed promptly by the purchaser
                           and delivered to the addressees hereof and (3) all
                           offers or solicitations in connection with the sale,
                           whether directly or through any agent acting on our
                           behalf, are limited only to Eligible Purchasers and
                           are not made by means of any form of general
                           solicitation or general advertising whatsoever; and

                                    (B) if the Privately Offered Certificate is
                           not registered under the Act (as to which we
                           acknowledge you have no obligation), the Privately
                           Offered Certificate is sold in a transaction that
                           does not require registration under the Act and any
                           applicable state securities or "blue sky" laws and,
                           if Wells Fargo Bank, N.A. (the "Securities
                           Administrator") so requests, a satisfactory Opinion
                           of Counsel is furnished to such effect, which Opinion
                           of Counsel shall be an expense of the transferor or
                           the transferee;

                  (vii)    we agree to be bound by all of the terms (including
                           those relating to restrictions on transfer) of the
                           Pooling and Servicing, pursuant to which the Trust
                           was formed; we have reviewed carefully and understand
                           the terms of the Pooling and Servicing Agreement;

                  (viii)   we either: (i) are not acquiring the Privately
                           Offered Certificate directly or indirectly by, or on
                           behalf of, an employee benefit plan or other
                           retirement arrangement which is subject to Title I of
                           the Employee Retirement Income Security Act of 1974,
                           as amended ("ERISA"), and/or section 4975 of the
                           Internal Revenue Code of 1986, as amended (the
                           "Code"), or (ii) are

                                       F-2

<PAGE>

                           providing an opinion of counsel to the effect that
                           the proposed transfer and holding of a Privately
                           Offered Certificate: (I) is permissible under
                           applicable law, (II) will not result in any
                           non-exempt prohibited transaction under Section 406
                           of ERISA or Section 4975 of the Code and (III) will
                           not subject the Depositor, the Trustee, the Master
                           Servicer, the Securities Administrator, any Servicer
                           or the Trust Fund to any obligation or liability in
                           addition to those undertaken in the Agreement.

                  (ix)     We understand that each of the Class I-CE, II-CE,
                           I-P, II-P and R Certificates bears, and will continue
                           to bear, a legend to substantiate the following
                           effect: "THIS CERTIFICATE MAY NOT BE HELD BY OR
                           TRANSFERRED TO A NON-UNITED STATES PERSON OR A
                           DISQUALIFIED ORGANIZATION (AS DEFINED BELOW). 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 (THE "CODE").
                           ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS
                           CERTIFICATE MAY BE MADE ONLY IN ACCORDANCE WITH THE
                           PROVISIONS OF SECTION 5.3 OF THE AGREEMENT REFERRED
                           TO HEREIN. NO TRANSFER OF THIS CERTIFICATE MAY BE
                           MADE TO ANY PERSON, UNLESS THE TRANSFEREE PROVIDES
                           EITHER A CERTIFICATION PURSUANT TO SECTION 5.3(d) OF
                           THE AGREEMENT OR AN OPINION OF COUNSEL UNDER SECTION
                           5.3(d) OF THE AGREEMENT THAT THE PURCHASE OF THIS
                           CERTIFICATE IS PERMISSIBLE UNDER APPLICABLE LAW, WILL
                           NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED
                           TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE
                           RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
                           ("ERISA"), OR SECTION 4975 OF THE CODE AND WILL NOT
                           SUBJECT THE MASTER SERVICER, THE TRUSTEE, THE
                           DEPOSITOR, THE SECURITIES ADMINISTRATOR, ANY SERVICER
                           OR THE TRUST FUND TO ANY OBLIGATION OR LIABILITY IN
                           ADDITION TO THOSE UNDERTAKEN IN THE AGREEMENT. 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 IMPOSED BY SECTION
                           511 OF THE CODE, (3) ANY ORGANIZATION DESCRIBED IN
                           SECTION 1381(a)(2)(C) OF THE CODE (ANY SUCH

                                       F-3

<PAGE>

                           PERSON 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 5.3(d) OF THE AGREEMENT
                           REFERRED TO HEREIN. ANY PERSON THAT IS A DISQUALIFIED
                           ORGANIZATION IS PROHIBITED FROM ACQUIRING BENEFICIAL
                           OWNERSHIP OF THIS CERTIFICATE. 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 5.3 OF THE AGREEMENT."

                  "Eligible Purchaser" means a corporation, partnership or other
entity which we have reasonable grounds to believe and do believe (i) can make
representations with respect to itself to substantially the same effect as the
representations set forth herein, and (ii) is either a Qualified Institutional
Buyer as defined under Rule 144A of the Act or an institutional "Accredited
Investor" as defined under Rule 501 of the Act.

                  Terms not otherwise defined herein shall have the meanings
assigned to them in the Pooling and Servicing Agreement, dated as of April 1,
2004, between Deutsche Mortgage Securities, Inc., as depositor, Wells Fargo
Bank, N.A., as master servicer and securities administrator, and HSBC Bank USA,
as Trustee (the "Agreement").

                  If the Purchaser proposes that its Certificates be registered
in the name of a nominee on its behalf, the Purchaser has identified such
nominee below, and has caused such nominee to complete the Nominee
Acknowledgment at the end of this letter.

                                       F-4

<PAGE>

Name of Nominee (if any):
                          ---------------------------------

                                       F-5

<PAGE>

                  IN WITNESS WHEREOF, this document has been executed by the
undersigned who is duly authorized to do so on behalf of the undersigned
Eligible Purchaser on the ___ day of ________, 20___.

                                       Very truly yours,

                                       [PURCHASER]

                                       By:
                                            -----------------------------------
                                                (Authorized Officer)

                                       [By:
                                           ------------------------------------
                                                Attorney-in-fact]

<PAGE>

                             Nominee Acknowledgment

         The undersigned hereby acknowledges and agrees that as to the
Certificates being registered in its name, the sole beneficial owner thereof is
and shall be the Purchaser identified above, for whom the undersigned is acting
as nominee.

                                         [NAME OF NOMINEE]

                                         By:
                                            -----------------------------------
                                                  (Authorized Officer)

                                         [By:
                                               --------------------------------
                                                  Attorney-in-fact]

<PAGE>

                                                                       EXHIBIT G

                         FORM OF BENEFIT PLAN AFFIDAVIT
[Date]

HSBC Bank USA
452 Fifth Avenue
New York, New York 10018
Attention: Deutsche Mortgage Securities Trust 2004-3

Wells Fargo Bank, N.A.
Sixth Street & Marquette Avenue
Minneapolis, Minnesota 55479
Attention: Deutsche Mortgage Securities, Inc., 2004-3

Deutsche Mortgage Securities, Inc.
60 Wall Street
New York, New York 10005
Attention: Deutsche Mortgage Securities, Inc.
           Mortgage Loan Trust, Series 2004-3

         Re:      Deutsche Mortgage Securities, Inc. Mortgage Loan Trust, Series
                  2004-3 Mortgage Pass-through Certificates, (the "Trust") Class
                  I-CE, II-CE, I-P, II-P and R Certificates (the "Purchased
                  Certificates")
                  -------------------------------------------------------------

Under penalties of perjury, I, ___________________, declare that, to the best of
my knowledge and belief, the following representations are true, correct and
complete; and

                  1. That I am the _________ of _________________ (the
"Purchaser"), whose taxpayer identification number is ___________, and on behalf
of which I have the authority to make this affidavit.

                  2. That the Purchaser is acquiring a Purchased Certificate
representing an interest in the Trust.

                  3. The Purchaser either (a) is not an employee benefit plan
subject to the Employee Retirement Income Security Act of 1974, as amended
("ERISA") or a "plan" described in Section 4975 of the Internal Revenue Code of
1986, as amended (the "Code") or any entity deemed to hold plan assets of any of
the foregoing by reason of a plan's investment in such entity (a "Plan") or (b)
has provided the opinion of counsel required by Section 5.3(d) of the
Agreement.]

<PAGE>

IN WITNESS WHEREOF, the Purchaser has caused this instrument to be duly executed
on its behalf, by its duly authorized officer this    day of _____________, 20 .

                                            [Purchaser]
                                            By:_______________________________
                                            Its:

                                       G-2

<PAGE>

                                                                    SCHEDULE ONE
                                  LOAN SCHEDULE

                 [TO BE PROVIDED BY THE DEPOSITOR UPON REQUEST]

<PAGE>

                                                                    SCHEDULE TWO
                           PREPAYMENT CHARGE SCHEDULE

<PAGE>

                                 DEUTSCHE BANK @
                                  CMO POSITION
                         PRELIMINARY COLLATERAL ANALYSIS
                           DMSI 04-3 - FIXED - GROUP I
                                  1,330 RECORDS
                              BALANCE: 250,000,058

<TABLE>
<CAPTION>

------------------------------------------------------------------------------------------------------------------------------
                                        DMSI 04-3 - FIXED - GROUP I
------------------------------------------------------------------------------------------------------------------------------
                                                            CURRENT
PRODUCT                                 PRINCIPAL
TYPE                                     BALANCE       0-1 YEARS    1-2 YEARS   2-3 YEARS   3-4 YEARS    4-5 YEARS   5 YEARS
------------------------------------------------------------------------------------------------------------------------------
<S>                                  <C>                  <C>          <C>       <C>         <C>           <C>       <C>
Fixed - 15 Year                         10,085,672.36        24.05        10.6      8.22        15.72         0         41.42
------------------------------------------------------------------------------------------------------------------------------
Fixed - 20 Year                            822,181.46        10.27           0         0        47.05         0         42.67
------------------------------------------------------------------------------------------------------------------------------
Fixed - 30 Year                        203,310,119.65           29       19.41      7.56        17.69         0         26.34
------------------------------------------------------------------------------------------------------------------------------
Balloon - 15/30                          2,765,567.04            0       89.78      7.06            0         0          3.16
------------------------------------------------------------------------------------------------------------------------------
Fixed - 30 Year - 10 Year IO            33,016,517.09        27.33       18.67      9.31        12.05         0         32.65
------------------------------------------------------------------------------------------------------------------------------
TOTAL:                                 250,000,057.60         28.2       19.67      7.79        16.76         0         27.58
------------------------------------------------------------------------------------------------------------------------------

</TABLE>

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