Document:

MASTER
      REPURCHASE AGREEMENT

    

    

    

    Among:

    

    

    DB
      STRUCTURED PRODUCTS, INC., as Buyer

    ASPEN
      FUNDING CORP., as Buyer

    NEWPORT
      FUNDING CORP., as Buyer

    

    

    NEW
      YORK MORTGAGE TRUST, INC., as Guarantor

    

    

    And

    

    

    NYMC
      LOAN CORPORATION, as Seller

    

    

    

    Dated
      as of December 13, 2005

    

    

    

    
      

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

    

    
      	
              1.

            	
              APPLICABILITY

            	
              1

            
	
              2.

            	
              DEFINITIONS
                AND INTERPRETATION

            	
              1

            
	
              3.

            	
              THE
                TRANSACTIONS

            	
              17

            
	
              4.

            	
              CONFIRMATIONS

            	
              18

            
	
              5.

            	
              PAYMENT
                AND TRANSFER

            	
              18

            
	
              6.

            	
              MARGIN
                MAINTENANCE

            	
              18

            
	
              7.

            	
              INCOME
                PAYMENTS

            	
              19

            
	
              8.

            	
              TAXES;
                TAX TREATMENT

            	
              19

            
	
              9.

            	
              SECURITY
                INTEREST; BUYERS’ APPOINTMENT AS ATTORNEY-IN-FACT

            	
              20

            
	
              10.

            	
              CONDITIONS
                PRECEDENT

            	
              22

            
	
              11.

            	
              RELEASE
                OF PURCHASED LOANS

            	
              25

            
	
              12.

            	
              RELIANCE

            	
              25

            
	
              13.

            	
              REPRESENTATIONS
                AND WARRANTIES

            	
              25

            
	
              14.

            	
              COVENANTS
                OF SELLER AND GUARANTOR

            	
              28

            
	
              15.

            	
              REPURCHASE
                DATE PAYMENTS/COLLECTIONS

            	
              33

            
	
              16.

            	
              REPURCHASE
                OF PURCHASED LOANS; CHANGE OF LAW

            	
              34

            
	
              17.

            	
              SUBSTITUTION

            	
              34

            
	
              18.

            	
              REPURCHASE
                TRANSACTIONS

            	
              35

            
	
              19.

            	
              EVENTS
                OF DEFAULT

            	
              35

            
	
              20.

            	
              REMEDIES

            	
              39

            
	
              21.

            	
              DELAY
                NOT WAIVER; REMEDIES ARE CUMULATIVE

            	
              41

            
	
              22.

            	
              USE
                OF EMPLOYEE PLAN ASSETS

            	
              41

            
	
              23.

            	
              INDEMNITY

            	
              41

            
	
              24.

            	
              WAIVER
                OF REDEMPTION AND DEFICIENCY RIGHTS

            	
              43

            
	
              25.

            	
              REIMBURSEMENT;
                SET-OFF

            	
              43

            
	
              26.

            	
              FURTHER
                ASSURANCES

            	
              44

            
	
              27.

            	
              ENTIRE
                AGREEMENT; PRODUCT OF NEGOTIATION

            	
              44

            
	
              28.

            	
              TERMINATION

            	
              44

            
	
              29.

            	
              ASSIGNMENT

            	
              44

            
	
              30.

            	
              AMENDMENTS,
                ETC.

            	
              45

            
	
              31.

            	
              SEVERABILITY

            	
              45

            
	
              32.

            	
              BINDING
                EFFECT; GOVERNING LAW

            	
              45

            
	
              33.

            	
              WAIVER
                OF JURY TRIAL; CONSENT TO JURISDICTION AND VENUE; SERVICE OF
                PROCESS

            	
              45

            
	
              34.

            	
              SINGLE
                AGREEMENT

            	
              46

            
	
              35.

            	
              INTENT

            	
              46

            
	
              36.

            	
              NOTICES
                AND OTHER COMMUNICATIONS

            	
              46

            
	
              37.

            	
              CONFIDENTIALITY

            	
              47

            
	
              38.

            	
              DUE
                DILIGENCE

            	
              48

            
	
              39.

            	
              NO
                PROCEEDINGS

            	
              48

            

    

    

    EXHIBITS
      

    

    
      	
              EXHIBIT
                A-1

            	
              MONTHLY
                CERTIFICATION

            
	
              EXHIBIT
                A-2

            	
              QUARTERLY
                CERTIFICATION

            
	
              EXHIBIT
                B-1

            	
              REPRESENTATIONS
                AND WARRANTIES WITH RESPECT TO LOANS OTHER THAN SMALL BALANCE COMMERCIAL
                LOANS

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              EXHIBIT
                B-2

            	
              REPRESENTATIONS
                AND WARRANTIES WITH RESPECT TO LOANS THAT ARE SMALL BALANCE COMMERCIAL
                LOANS

            
	
              EXHIBIT
                C

            	
              ACQUISITION
                GUIDELINES

            
	
              EXHIBIT
                D

            	
              UNDERWRITING
                GUIDELINES

            
	
              EXHIBIT
                E

            	
              FORM
                OF SECURITY RELEASE CERTIFICATION

            
	
              EXHIBIT
                F

            	
              LITIGATION

            
	
              EXHIBIT
                G

            	
              THIRD
                PARTY GUIDELINES

            

    

    

    
      
        
        

      

      
        -ii-

        
          

        

      

      
        
        

      

    

    MASTER
      REPURCHASE AGREEMENT

    

    Dated
      as
      of December 13, 2005

    

    AMONG:

    

    DB
      STRUCTURED PRODUCTS, INC. (“DBSP”),
      ASPEN
      FUNDING CORP. (“Aspen”),
      NEWPORT FUNDING CORP. (“Newport”
and
      collectively with DBSP and Aspen, the “Buyers”
and
      individually, a “Buyer,”
which
      term shall include any “Principal”
as
      defined and provided for in Annex I), or as agent pursuant hereto (“Agent”),

    

    NEW
      YORK
      MORTGAGE TRUST, INC. (“Guarantor”),
      and

    

    NYMC
      LOAN
      CORPORATION (“Seller”).

     

    1. APPLICABILITY

    

    The
      Buyers may, from time to time, upon the terms and conditions set forth herein,
      agree to enter into transactions in which Seller transfers to the related Buyer
      Eligible Loans against the transfer of funds by the related Buyer, with a
      simultaneous agreement by the related Buyer to transfer to Seller such Purchased
      Loans at a date certain, against the transfer of funds by Seller. Each such
      transaction shall be referred to herein as a “Transaction”,
      and,
      unless otherwise agreed in writing, shall be governed by this
      Agreement.

     

    2. DEFINITIONS
      AND INTERPRETATION

    

    (a) Defined
      Terms.

    

    “Accepted
      Servicing Practices”
means
      with respect to any Loan, those mortgage servicing practices (including
      collection procedures) of prudent mortgage banking institutions which service
      mortgage loans of the same type as the Loans in the jurisdiction where the
      related Mortgaged Property is located, and which are in accordance with Fannie
      Mae servicing practices and procedures for MBS pool mortgages, as defined in
      the
      Fannie Mae servicing guides including future updates.

    

    “Acquisition
      Guidelines”
means
      (i) NYMC’s
      loan acquisition guidelines set forth on Exhibit C in effect as of the date
      of
      this Agreement and which have been approved in writing by Buyers, and (ii)
      certain acquisition guidelines of third parties listed in Exhibit G hereof
      in
      accordance with which NYMC acquires Loans, all
      as
      the same may be amended from time to time in accordance with terms of this
      Agreement.

    

    “Additional
      Purchased Loans”
shall
      have the meaning assigned thereto in Section 6(a) hereof.

    

    “Adjustable
      Rate Mortgage Loan”
means
      a
      Loan which provides for the adjustment of the Mortgage Interest Rate payable
      in
      respect thereto.

    

    “Adjusted
      Tangible Net Worth”
means
      consolidated Net Worth plus Approved Subordinated Debt less goodwill, intangible
      assets and intercompany/interaffiliate receivables (each calculated in
      accordance with GAAP).

    

    “Adjustment
      Date”
means
      with respect to each Adjustable Rate Mortgage Loan, the date set forth in the
      related Note on which the Mortgage Interest Rate on the Loan is adjusted in
      accordance with the terms of the Note.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Affiliate”
means,
      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” 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 meaning of “control”.

    

    “Agent”
means
      any Buyer or any successor.

    

    “Aggregation
      Transaction”
shall
      mean the sale to Buyers of Aggregation Mortgage Loans hereunder.

    

    “Aggregation
      Mortgage Loan”
shall
      mean a Mortgage Loan sold to Buyers that Seller intends to repurchase and sell
      into an affiliated securitization vehicle.

    

    “Agreement”
means
      this Master Repurchase Agreement (including all exhibits, schedules and other
      addenda thereto), as supplemented by the Pricing Side Letter, as it may be
      amended, further supplemented or otherwise modified from time to
      time.

    

    “ALTA”
means
      the American Land Title Association.

    

    “Alt-A
      Loan”
means
      a
      Loan that satisfies the guidelines for such loans set forth in the Underwriting
      Guidelines.

    

    “Appraised
      Value”
means
      the value set forth in an appraisal made in connection with the origination
      of
      the related Loan as the value of the Mortgaged Property.

    

    “Approved
      Subordinated Debt”
means
      (a) all debt of Guarantor or any of its consolidated Subsidiaries to any Person
      that is effectively subordinated in right of payment to all present and future
      Obligations either (1) under a subordination of debt agreement on the form
      prescribed by Buyers or (2) otherwise on terms acceptable to Buyers, and (b)
      debt covenants and conditions of Guarantor or such Subsidiary that are not
      more
      restrictive or onerous than the covenants and conditions imposed on Guarantor
      or
      such Subsidiary under Section 14(g)(ii) herein..

    

    “Approved
      Title Insurance Company”
shall
      mean a title insurance company that has not been disapproved by Buyers in their
      sole discretion in a written notice to the Custodian by the Buyer.

    

    “Assignment
      of Mortgage”
means,
      with respect to any 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
      assignment of the Mortgage to Buyers.

    

    “Assignment
      of the Note and Pledge Agreement”
means
      with respect to a Cooperative Loan, an assignment of the Note and Pledge
      Agreement.

    

    “Assignment
      of the Proprietary Lease”
means
      with respect to a Cooperative Loan, an assignment of the Proprietary
      Lease.

    

    “Balloon
      Loan”
means,
      with respect to a Loan, a final Monthly Payment that is significantly larger
      than the other scheduled Monthly Payments in respect of such Loan.

    

    “Breakage
      Costs”
shall
      have the meaning assigned thereto in Section 3(d) herein.

    

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    “Business
      Day”
means
      any day other than (i) a Saturday or Sunday or (ii) a day upon which the New
      York Stock Exchange, the Federal Reserve Bank of New York or the Custodian
      is
      authorized or obligated by law or executive order to be closed.

    

    “Cash
      Equivalents”
shall
      mean any of the following: (a) marketable direct obligations issued by, or
      unconditionally guaranteed by, the United States Government or issued by any
      agency thereof and backed by the full faith and credit of the United States,
      in
      each case maturing within one year from the date of acquisition; (b)
      certificates of deposit, time deposits, eurodollar time deposits or overnight
      bank deposits having maturities of six months or less from the date of
      acquisition issued by any commercial bank organized under the laws of the United
      States or any state thereof having combined capital and surplus of not less
      than
      $500,000,000; (c) commercial paper of an issuer rated at least A-1 by S&P or
      P-1 by Moody’s Investors Service, Inc. (“Moody’s”),
      or
      carrying an equivalent rating by a nationally recognized rating agency, if
      both
      of the two named rating agencies cease publishing ratings of commercial paper
      issuers generally, and maturing within six months from the date of acquisition;
      (d) repurchase obligations of any commercial bank satisfying the requirements
      of
      clause (b) of this definition, having a term of not more than 30 days, with
      respect to securities issued or fully guaranteed or insured by the United States
      government; (e) securities with maturities of one year or less from the date
      of
      acquisition issued or fully guaranteed by any state, commonwealth or territory
      of the United States, by any political subdivision or taxing authority of any
      such state, commonwealth or territory or by any foreign government, the
      securities of which state, commonwealth, territory, political subdivision,
      taxing authority or foreign government (as the case may be) are rated at least
      A
      by S&P or A by Moody’s; (f) securities with maturities of six months or less
      from the date of acquisition backed by standby letters of credit issued by
      any
      commercial bank satisfying the requirements of clause (b) of this definition;
      or
      (g) shares of money market mutual or similar funds which invest exclusively
      in
      assets satisfying the requirements of clauses (a) through (f) of this
      definition.

    

    “Change
      in Control”
shall
      mean the acquisition by any Person, or two or more Persons acting in concert,
      of
      beneficial ownership (within the meaning of Rule 13d-3 of the Securities and
      Exchange Commission under the Securities Exchange Act of 1934) of outstanding
      shares of voting stock of Guarantor at any time if after giving effect to such
      acquisition such Person or Persons owns fifty percent (50%) or more of such
      outstanding voting stock.

    

    “Change
      in Law”
means
      (a) the adoption of any law, rule or regulation after the date of this
      Agreement, (b) any change in any law, rule or regulation or in the
      interpretation or application thereof by any Governmental Authority after the
      date of this Agreement or (c) compliance by Buyers (or any Affiliate of a Buyer)
      with any request, guideline or directive (whether or not having the force of
      law) of any Governmental Authority made or issued after the date of this
      Agreement.

    

    “Closed
      End Second Lien Loan”
means
      a
      closed-end Second Lien Loan.

    

    “Code”
shall
      mean the Internal Revenue Code of 1986, as amended from time to
      time.

    

    “Collateral”
shall
      have the meaning assigned thereto in Section 9 hereof.

    

    “Collection
      Account”
means
      the following account established by the Seller in accordance with Section
      14(w)
      for the benefit of the Buyers, “DB Structured Products, Inc., Aspen Funding
      Corp., and Newport Funding Corp. - P&I account - Account #
      723207.1”.

    

    “Combined
      Loan-to-Value Ratio”
or
      “CLTV”
      means
      with respect to any First Lien Mortgage Loan or Second Lien Mortgage Loan,
      the
      sum of the original principal balance of such First Lien Mortgage Loan or Second
      Lien Mortgage Loan, as applicable, at the time of origination and the
      outstanding principal balance of any related first lien loan or second lien
      loan, as applicable as of the date of origination of such First Lien Mortgage
      Loan or Second Lien Mortgage Loan, as applicable, divided by the lesser of
      (a)
      the Appraised Value of the related Mortgage Property as of the date of
      origination of such First Lien Mortgage Loan or Second Lien Mortgage Loan,
      as
      applicable and (b) if the related Mortgaged Property was purchased within twelve
      (12) months of the origination of such First Lien Mortgage Loan or Second Lien
      Mortgage Loan, as applicable, the purchase price of such Mortgaged
      Property.

    

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    “Commercial
      Paper Notes”
shall
      mean the short-term promissory notes issued by Aspen or Newport having an
      original term to maturity of 270 days or less (including the date of issuance
      thereof).

    

    “Computer
      Tape”
means
      a
      computer tape or other electronic medium generated by or on behalf of Seller
      and
      delivered or transmitted to Buyers and Custodian which provides information
      relating to the Purchased Loans, including the information set forth in the
      Loan
      Schedule and the information set forth on Annex 1 to the Disbursement Agreement,
      in a format acceptable to Buyers.

    

    “Confirmation”
shall
      have the meaning assigned thereto in Section 4 hereof.

    

    “Conforming
      Mortgage Loan”
means
      a
      Loan which is insured by, and meets all criteria of and is approved through
      the
      Underwriting Systems of, Fannie Mae, Freddie Mac, the FHA or the Department
      of
      Veterans Affairs which is secured by a first lien on the related Mortgaged
      Property.

    

    “Consent”
shall
      mean a document executed by the Cooperative (i) consenting to the sale of the
      Cooperative Apartment to the Mortgagor and (ii) certifying that all maintenance
      charges relating to the Cooperative Apartment have been paid.

    

    “Cooperative”
shall
      mean the private, non profit cooperative apartment corporation which owns all
      of
      the real property that comprises the Project, including the land, separate
      dwelling units and all common areas.

    

    “Cooperative
      Apartment”
shall
      mean the specific dwelling unit relating to a Cooperative Loan.

    

    “Cooperative
      Lien Search”
shall
      mean a search for (a) federal tax liens, mechanics' liens, lis pendens,
      judgments of record or otherwise against (i) the Cooperative, (ii) the seller
      of
      the Cooperative Apartment and (iii) the Mortgagor if the Cooperative Loan is
      a
      Refinanced Loan, (b) filings of Financing Statements and (c) the deed of the
      Project into the Cooperative.

    

    “Cooperative
      Loan”
shall
      mean a Mortgage Loan that is secured by a first lien on and a perfected security
      interest in Cooperative Shares and the related Proprietary Lease granting
      exclusive rights to occupy the related Cooperative Apartment in the building
      owned by the related Cooperative.

    

    “Cooperative
      Shares”
shall
      mean the shares of stock issued by the Cooperative, owned by the Mortgagor,
      and
      allocated to a Cooperative Apartment and represented by a Stock
      Certificate.

    

    “Coop
      Pledge Agreement”
shall
      mean the specific agreement creating a first lien on and pledge of the
      Cooperative Shares and the appurtenant Proprietary Lease securing a Cooperative
      Loan.

    

    “Custodial
      Agreement”
means
      the Custodial Agreement dated as of December 13, 2005 among Seller, Buyer,
      Guarantor, and Custodian as the same may be amended, modified or supplemented
      from time to time.

    

    “Custodian”
means
      LaSalle Bank National Association, or its successors and permitted
      assigns.

    

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    “DBSI”
means
      Deutsche Bank Securities Inc. and any successor thereto.

    

    “Default”
means
      any event, that, with the giving of notice or the passage of time or both,
      would
      constitute an Event of Default.

    

    “Default
      Rate”
means,
      as of any date of determination, the lesser of (i) the Prime Rate plus
      2% and
      (ii)
      the maximum rate permitted by applicable law. The Default Rate is calculated
      on
      the basis of a 360-day year and the actual number of days elapsed between the
      date of Default and the date of determination.

    

    “Delinquent”
means,
      with respect to a Loan, that a monthly payment due thereon is not made by the
      close of business on the Due Date.

    

    “Delinquent
      Loan”
means
      any 30-Day Delinquent Loan, 60-Day Delinquent Loan, or 90-Day Delinquent
      Loan.

    

    “Disbursement
      Agent”
means
      Deutsche Bank National Trust Company, or its successors and permitted
      assigns.

    

    “Disbursement
      Agreement”
means
      the disbursement agreement dated as of December
      13,
      2005
      among Seller, Buyers, Guarantor and the Disbursement Agent.

    

    “Dollars”
or
      “$”
means,
      unless otherwise expressly stated, means lawful money of the United States
      of
      America.

    

    “Dry
      Mortgage Loan”
shall
      mean a first lien or a second lien Loan which is underwritten in accordance
      with
      the Underwriting Guidelines which Mortgage File contains all required Mortgage
      Loan Documents.

    

    “Due
      Date”
means
      the day of the month on which the Monthly Payment is due on a Loan, exclusive
      of
      any days of grace.

    

    “Effective
      Date”
shall
      mean the date set forth on the top of the first page of this
      Agreement.

    

    “Electronic
      Tracking Agreement”
means
      the electronic tracking agreement dated as of December 13, 2005 among Buyers,
      Seller, NYMC, MERSCORP, Inc. and Mortgage Electronic Registration, Systems,
      Inc., in form and substance acceptable to Buyers to be entered into in the
      event
      that any of the Loans become MERS Designated Mortgage Loans as the same may
      be
      amended, modified or supplemented from time to time; provided
      that if
      no Loans are or will be MERS Designated Mortgage Loans, all references herein
      to
      the Electronic Tracking Agreement shall be disregarded.

    

    “Electronic
      Transmission”
means
      the delivery of information in an electronic format acceptable to the applicable
      recipient thereof. An Electronic Transmission shall be considered written notice
      for all purposes hereof (except when a request or notice by its terms requires
      execution).

    

    “Eligible
      Loan”
means
      any Subprime Loan, Alt-A Loan, Conforming Loan, Jumbo Loan, Super Jumbo Loan,
      Small Balance Commercial Loan, 30-Day Delinquent Loan, 60-Day Delinquent Loan,
      90-Day Delinquent Loan, Wet-Ink Subprime Loan, Wet-Ink Alt-A Loan, Wet-Ink
      Conforming Loan, Wet-Ink Jumbo Loan, Wet-Ink Super Jumbo Loan, Wet-Ink Small
      Balance Commercial Loan, Closed End Second Lien Loan or HELOC, that satisfies
      the criteria set forth in the definition of “Eligible Loan” in the Pricing Side
      Letter.

    

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    “Escrow
      Letter”
means
      the escrow or closing letter from the Seller to the Settlement Agent in the
      form
      attached as Annex 17 to the Custodial Agreement 

    

    “Escrow
      Payments”
means
      the amounts constituting ground rents, taxes, assessments, water charges, sewer
      rents, mortgage insurance premiums, fire and hazard insurance premiums and
      other
      payments as may be required to be escrowed by the Mortgagor with the Mortgagee
      pursuant to the terms of any Note or Mortgage.

    

    “Estoppel
      Letter”
shall
      mean a document executed by the Cooperative certifying, with respect to a
      Cooperative Apartment, (i) the appurtenant Proprietary Lease will be in full
      force and effect as of the date of issuance thereof, (ii) the related Stock
      Certificate was registered in the Mortgagor’s name and the Cooperative has not
      been notified of any lien upon, pledge of, levy of execution on or disposition
      of such Stock Certificate, and (iii) the Mortgagor is not in default under
      the
      appurtenant Proprietary Lease and all charges due the Cooperative have been
      paid.

    

    “Event
      of Default”
shall
      have the meaning assigned thereto in Section 19 hereof.

    

    “Fannie
      Mae”
means
      the Federal National Mortgage Association, and its successors in
      interest.

    

    “FHA”
means
      the Federal Housing Administration, an agency within HUD, or any successor
      thereto and including the Federal Housing Commissioner and the Secretary of
      Housing and Urban Development where appropriate under the FHA
      regulations.

    

    “FICO
      Score”
means
      the credit score of the Mortgagor provided by Fair, Isaac & Company, Inc. or
      such other organization providing credit scores at the time of the origination
      of a Loan.

    

    “Financing
      Statement”
shall
      mean a financing statement in the form of a UCC 1 filed pursuant to the Uniform
      Commercial Code to perfect a security interest in the Cooperative Shares and
      Pledge Instruments.

    

    “First
      Lien Mortgage Loan”
means
      a
      Loan secured by a first priority lien on the related Mortgaged
      Property.

    

    “Freddie
      Mac”
means
      the Federal Home Loan Mortgage Corporation, and its successors in
      interest.

    

    “GAAP”
means
      generally accepted accounting principles in the United States of America in
      effect from time to time.

    

    “Governmental
      Authority”
shall
      mean any nation or government, any state or other political subdivision thereof,
      or any entity exercising executive, legislative, judicial, regulatory or
      administrative functions over Seller or Guarantor.

    

    “Gross
      Margin”
means
      with respect to each Adjustable Rate Mortgage Loan, the fixed percentage amount
      set forth in the related Note and the Loan Schedule that is added to the Index
      on each Adjustment Date in accordance with the terms of the related Note to
      determine the new Mortgage Interest Rate for such Loan.

    

    “Guarantee”
means,
      as to any Person, any obligation of such Person directly or indirectly
      guaranteeing any Indebtedness of any other Person or in any manner providing
      for
      the payment of any Indebtedness of any other Person.

    

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    “Guarantor”
means
      New York Mortgage Trust, Inc. and any successor thereto.

    

    “Guaranty”
means
      the Guaranty Agreement of Guarantor in favor of Buyers, dated as of December
      13,
      2005, as the same may be amended, modified or supplemented from time to
      time.

    

    “Hedge
      Instrument”
means
      any interest rate cap agreement, interest rate floor agreement, interest rate
      swap agreement or other interest rate hedging agreement entered into by the
      Seller or the Guarantor with a counterparty approved by the Buyers.

    

    “HELOC”
means
      an open end home equity line of credit secured by a first or second lien and
      underwritten in accordance with the Underwriting Guidelines.

    

    “High
      Cost Loan”
means
      a
      Loan that is (a) subject to, covered by or in violation of the provisions of
      the
      Homeownership and Equity Protection Act of 1994, as amended, (b) a “high cost”,
“covered”, “abusive”, “predatory” or “high risk” mortgage loan under any
      federal, state or local law, or similarly classified loan using different
      terminology under a law imposing heightened regulation scrutiny or additional
      legal liability for residential mortgage loans having high interest rates,
      points and/or fees, or any other state or regulation providing assignee
      liability to holders of such mortgage loans, (c) subject to or in violation
      of
      any such or comparable federal, state or local statutes or regulations, or
      (d) a
“High Cost Loan” or “Covered Loan,” as applicable (as such terms are defined in
      the current Standard & Poor’s LEVELS® Glossary Revised, Appendix
      E.

    

    “HUD”
means
      the Department of Housing and Urban Development, or any federal agency or
      official thereof which may from time to time succeed to the functions thereof
      with regard to FHA mortgage insurance. The term “HUD,” for purposes of this
      Agreement, is also deemed to include subdivisions thereof such as the FHA and
      Government National Mortgage Association.

    

    “Income”
means,
      with respect to any Purchased Loan at any time, any principal and/or interest
      thereon and all dividends, sale proceeds (including, without limitation, any
      proceeds from the securitization of such Purchased Loan or other disposition
      thereof) and other collections and distributions thereon (including, without
      limitation, any proceeds received in respect of mortgage insurance), but not
      including any commitment fees, origination fees and/or servicing fees accrued
      in
      respect of periods on or after the initial Purchase Date with respect to such
      Purchased Loan.

    

    “Indebtedness”
shall
      mean, for any Person: (a) all obligations for borrowed money (excluding
      non-recourse debt obligations); (b) obligations of such Person to pay the
      deferred purchase or acquisition price of Property or services, other than
      trade
      accounts payable (other than for borrowed money) arising, and accrued expenses
      incurred, in the ordinary course of business so long as such trade accounts
      payable are payable and paid within ninety (90) days of the date the respective
      goods are delivered or the respective services are rendered; (c) indebtedness
      of
      others secured by a lien on the Property of such Person, whether or not the
      respective indebtedness so secured has been assumed by such Person; (d)
      obligations (contingent or otherwise) of such Person in respect of letters
      of
      credit or similar instruments issued for account of such Person; (e) capital
      lease obligations of such Person; (f) obligations of such Person under
      repurchase agreements or like arrangements; (g) indebtedness of others
      guaranteed on a recourse basis by such Person; (h) all obligations of such
      Person incurred in connection with the acquisition or carrying of fixed assets
      by such Person; (i) indebtedness of general partnerships of which such Person
      is
      a general partner; and (j) any other contingent liabilities of such
      Person.

    

    “Index”
means
      with respect to each Adjustable Rate Mortgage Loan, the index identified on
      the
      related Loan Schedule and set forth in the related Note for the purpose of
      calculating the interest rate thereon.

    

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    “Insured
      Closing Letter”
shall
      mean a letter of indemnification from an Approved Title Insurance Company
      addressed to Seller with coverage that is customarily acceptable to Persons
      engaged in the origination of mortgage loans, identifying the Settlement Agent
      covered thereby. The Insured Closing Letter shall be either with respect to
      the
      individual Wet-Ink Mortgage Loan being purchased pursuant hereto or a blanket
      Insured Closing Letter which covers closings conducted by the Settlement Agent
      in the jurisdiction in which the closing of such Wet-Ink Mortgage Loan takes
      place.

    

    “Interest-Only
      Loan”
means
      a
      Loan which, by its terms, requires the related Mortgagor to make monthly
      payments of only accrued interest for a certain period of time following
      origination. After such interest-only period, the loan terms provide that the
      Mortgagor’s monthly payment will be recalculated to cover both interest and
      principal so that such Loan will amortize fully on or prior to its final payment
      date.

    

    “Investment
      Company Act”
means
      the Investment Company Act of 1940, as amended, including all rules and
      regulations promulgated thereunder.

    

    “Jumbo
      Loan”
means
      a
      Loan that is secured by a first lien and meets all criteria of Fannie Mae or
      Freddie Mac, except that the outstanding principal balance thereof at
      origination was in excess of Fannie Mae or Freddie Mac’s
      guidelines.

    

    “Lead
      Managed Aggregation Transaction”
shall
      mean an Aggregation Transaction relating to a securitization with respect to
      which DBSP or an Affiliate thereof will be a lead manager or joint lead
      manager.

    

    “LIBOR”
shall
      mean, for each day, the rate determined by Buyers on the related Purchase Date
      on the basis of the offered rate for one-month U.S. dollar deposits, as such
      rate appears on Telerate Page 3750 as of 11:00 a.m. (London time) on such date
      (rounded up to the nearest whole multiple of 1/16%); provided that if such
      rate
      does not appear on Telerate Page 3750, the rate for such date will be the rate
      determined by reference to such other comparable publicly available service
      publishing such rates as may be selected by Buyers in their sole discretion
      and
      communicated to Seller.

    

    “Liquidity”
shall
      mean Unrestricted Cash and mortgage backed securities which (i) have a rating
      by
      S&P of “AAA”, (ii) are free of all liens and encumbrances, and (iii) are on
      the balance sheet of the Guarantor.

    

    “Loan”
means
      (i) a first lien or second lien, fixed rate or adjustable rate, closed-end,
      wet
      or dry-funded, residential mortgage loan or home equity mortgage loan either
      originated in accordance with the Underwriting Guidelines or acquired in
      accordance with the Acquisition Guidelines and in each case, meets the
      representations and warranties attached as Exhibit
      B
      hereto
      and deemed by Buyers to be eligible for securitization in the normal course
      of
      business, (ii) such other type of loan, lease or other receivable as shall
      be
      agreed upon by the parties in writing, or (iii) any interest in, or secured
      by,
      any such loan, lease or other receivable.

    

    “Loan
      Schedule”
means
      the list of Loans delivered by Guarantor or Seller to the related Buyer and
      Custodian together with each Transaction Notice and attached by the Custodian
      to
      the related Trust Receipt. Each Loan Schedule (which shall also include a
      Computer Tape) shall set forth the following information with respect to each
      Loan: product description, purchased loan number, obligor name and address,
      principal balance, coupon, first payment date, last payment date, next payment
      due date, monthly payment, origination date, credit score, debt-to-income ratio,
      property type, property valuation, LTV, CLTV, loan purpose, owner occupancy,
      lien status, senior liens, subordinate liens, purchase price paid, selling
      entity, whether the loans are subject to prepayment charges, any other
      information required by the related Buyer and any other additional items to
      be
      delivered as set forth on Annex 1 to the Custodial Agreement.

    

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    “Loan-to-Value
      Ratio”
or
      “LTV”
means
      with respect to any Loan, the ratio of the outstanding principal amount of
      such
      Loan at the time of origination to the lesser of (a) the Appraised Value of
      the
      related Mortgaged Property at origination of such Loan and (b) if the related
      Mortgaged Property was purchased within twelve (12) months of the origination
      of
      such Loan, the purchase price of the related Mortgaged Property.

    

    “Manufactured
      Home”
means
      a
      prefabricated or manufactured home a lien on which secures a Loan and which
      is
      considered and treated as “real property” under applicable law.

    

    “Margin
      Call”
shall
      have the meaning assigned thereto in Section 6(a) hereof.

    

    “Margin
      Deficit”
shall
      have the meaning assigned thereto in Section 6(a) hereof.

    

    “Market
      Value”
means
      (i) with respect to any Purchased Loan that is an Eligible Loan, as of any
      date
      of determination, the value ascribed to such asset by the related Buyer in
      its
      sole discretion as marked to market daily, and (ii) with respect to a Purchased
      Loan that is not an Eligible Loan or a Purchased Loan that is deemed by the
      related Buyer to be unsecuritizable or otherwise uncollectible,
      zero.

    

    “Master
      Loan Sale Agreement”
means
      the Master Loan Sale Agreement, dated as of December 13, 2005 among NYMC
      and
      Seller, as the same may be amended, modified or supplemented from time to
      time.

    

    “Material
      Adverse Change”
means,
      with respect to a Person, any material adverse change in the business, condition
      (financial or otherwise), operations, performance or properties of such Person
      taken as a whole.

    

    “Material
      Adverse Effect”
means
      (a) a Material Adverse Change with respect to a Person or a Person and its
      Affiliates that are party to any Program Document taken as a whole; (b) a
      material impairment of the ability of a Person or any Affiliate thereof that
      is
      a party to any Program Document to perform its obligations under any Program
      Document; (c) an assertion in writing by a Person or a determination by a court
      or other Governmental Authority having appropriate jurisdiction or authority
      that any Program Document is not legal, valid, binding or enforceable against
      a
      party to any Program Document; or (d) a material adverse effect upon the value
      or marketability of a material portion of the Purchased Loans.

    

    “Maximum
      Aggregate Purchase Price”
means
      Three Hundred Million Dollars ($300,000,000).

    

    “Maximum
      Mortgage Interest Rate”
means
      with respect to each Adjustable Rate Mortgage Loan, a rate that is set forth
      on
      the related Loan Schedule and in the related Mortgage Note and is the maximum
      interest rate to which the Mortgage Interest Rate on such Mortgage Loan may
      be
      increased on any Adjustment Date.

    

    “MERS”
shall
      have the meaning assigned thereto in the Custodial Agreement.

    

    “MERS
      Designated Mortgage Loan”
shall
      have the meaning assigned thereto in the Custodial Agreement.

    

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    “Monthly
      Payment”
means
      with respect to any Loan, the scheduled combined payment of principal and
      interest payable by a Mortgagor under the related Mortgage Note on each Due
      Date.

    

    “Mortgage”
means
      a
      mortgage, deed of trust, or other instrument that creates a lien on the related
      Mortgaged Property and secures a Note.

    

    “Mortgage
      File”
shall
      have the meaning assigned thereto in the Custodial Agreement.

    

    “Mortgage
      Identification Number”
shall
      have the meaning assigned thereto in the Custodial Agreement.

    

    “Mortgage
      Interest Rate”
means,
      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
      Note.

    

    “Mortgage
      Loan Documents”
shall
      have the meaning assigned thereto in the Custodial Agreement.

    

    “Mortgaged
      Property”
means,
      with respect to a Loan, the related Mortgagor’s fee interest in real property or
      leasehold interest in real property and all other collateral securing repayment
      of the debt evidenced by the related Note.

    

    “Mortgagee”
means
      the record holder of a Note secured by a Mortgage.

    

    “Mortgagor”
means
      the obligor or obligors on a Note, including any person who has assumed or
      guaranteed the obligations of the obligor thereunder.

    

    “MV
      Margin Amount”
means,
      with respect to any Transaction, as of any date of determination, the amount
      obtained by application of the MV Margin Percentage to the Repurchase Price
      for
      such Transaction as of such date.

    

    “MV
      Margin Percentage”
shall
      have the meaning assigned thereto in the Pricing Side Letter.

    

    “Negative
      Amortization”
shall
      mean the portion of interest accrued at the Mortgage Interest Rate in any month
      which exceeds the Monthly Payment on the related Loan for such month and which,
      pursuant to the terms of the Mortgage Note, is added to the principal balance
      of
      the Loan.

    

    “Net
      Worth”
shall
      mean, with respect to the Guarantor, the excess of Guarantor’s total assets,
      over Guarantor’s total liabilities, determined in accordance with
      GAAP.

    

    “90-Day
      Delinquent Loan”
shall
      mean a Loan that is ninety (90) days or more Delinquent.

    

    “Non
      Usage Fee”
shall
      have the meaning assigned thereto in the Pricing Side Letter.

    

    “Note”
means,
      with respect to any Loan, the related promissory note together with all riders
      thereto and amendments thereof or other evidence of indebtedness of the related
      Mortgagor.

    

    “NYMC”
means
      The
      New
      York Mortgage Company, LLC
      and any
      successor thereto.

    

    “Obligations”
means
      (a) all of Seller’s and Guarantor’s obligation to pay the Repurchase Price on
      the Repurchase Date and other obligations and liabilities of Seller and
      Guarantor to Buyers, its Affiliates, Custodian or any other Person arising
      under, or in connection with, the Program Documents or directly related to
      the
      Purchased Loans, whether now existing or hereafter arising; (b) any and all
      sums
      paid by Buyers or on behalf of Buyers pursuant to the Program Documents in
      order
      to preserve any Purchased Loan or its interest therein; (c) in the event of
      any
      proceeding for the collection or enforcement of any of Seller’s or Guarantor’s
      indebtedness, obligations or liabilities referred to in clause (a), the
      reasonable expenses of retaking, holding, collecting, preparing for sale,
      selling or otherwise disposing of or realizing on any Purchased Loan, or of
      any
      exercise by Buyers or any such Affiliate of their rights under the Program
      Documents, including without limitation, reasonable attorneys’ fees and
      disbursements and court costs; and (d) all of Seller’s and Guarantor’s indemnity
      obligations to Buyers pursuant to the Program Documents.

    

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    “Option
      ARM Loan”
shall
      mean a first lien Alt-A Loan or Conforming Mortgage Loan that is an Adjustable
      Rate Mortgage Loan that (i) provides the Mortgagor with multiple Monthly Payment
      options and (ii) may result in Negative Amortization, as set forth in the
      related Underwriting Guidelines or Acquisition Guidelines, as
      applicable.

    

    “Originator”
shall
      mean NYMC.

    

    “Par
      Margin Amount”
means,
      with respect to any Transaction, as of any date of determination, the amount
      obtained by application of the Par Margin Percentage to the Repurchase Price
      for
      such Transaction as of such date.

    

    “Par
      Margin Percentage”
shall
      have the meaning assigned thereto in the Pricing Side Letter.

    

    “Person”
means
      any legal person, including any individual, corporation, partnership,
      association, joint stock company, trust, limited liability company,
      unincorporated organization, governmental entity or other entity of similar
      nature.

    

    “Pledge
      Agreement”
means
      the Pledge Agreement of NYMC in favor of Buyers, dated as of December 13, 2005,
      as the same may be amended, modified or supplemented from time to
      time.

    

    “Pledge
      Instruments”
shall
      mean the Stock Power, the Assignment of the Proprietary Lease and the Assignment
      of the Note and Coop Pledge Agreement.

    

    “Price
      Differential”
means,
      with respect to each Transaction as of any date of determination, the aggregate
      amount obtained by daily application of the Pricing Rate (or during the
      continuation of an Event of Default, by daily application of the Default Rate)
      for such Transaction to the Purchase Price for such Transaction on a
      360-day-per-year basis for the actual number of days elapsed during the period
      commencing on (and including) the Purchase Date and ending on (but excluding)
      the Repurchase Date (reduced by any amount of such Price Differential in respect
      of such period previously paid by Seller to Buyers with respect to such
      Transaction).

    

    “Pricing
      Rate”
means
      the per annum percentage rate for determination of the Price Differential as
      set
      forth in the Pricing Side Letter.

    

    “Pricing
      Side Letter”
means
      the pricing side letter, dated as of December 13, 2005, among Seller, Guarantor
      and Buyers, as the same may be amended, supplemented or modified from time
      to
      time.

    

    “Prime
      Rate”
means
      the daily prime loan rate as reported in The Wall Street Journal or if more
      than
      one rate is published, the highest of such rates.

    

    “Principal”
shall
      have the meaning given to it in Annex I.

    

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    “Program
      Documents”
      means this
      Agreement, the Custodial Agreement, the Disbursement Agreement, any Servicing
      Agreement, the Servicing Side Letter, the Pledge Agreement, the Guaranty, any
      assignment of Hedge Instrument, the Master Loan Sale Agreement, the Pricing
      Side
      Letter, the Electronic Tracking Agreement and any other agreement entered into
      by Seller and/or Guarantor and/or the Servicer, on the one hand, and the Buyers
      or one of their Affiliates (or Custodian on its behalf) on the other, in
      connection herewith or therewith.

    

    “Project”
shall
      mean all real property owned by the Cooperative including the land, separate
      dwelling units and all common areas.

    

    “Proprietary
      Lease”
shall
      mean a lease on a Cooperative Apartment evidencing the possessory interest
      of
      the Mortgagor in such Cooperative Apartment.

    

    “Property”
means
      any right or interest in or to property of any kind whatsoever, whether real,
      personal or mixed and whether tangible or intangible.

    

    “Purchase
      Date”
means,
      with respect to each Transaction, the date on which Purchased Loans are sold
      by
      Seller to the related Buyer hereunder.

    

    “Purchase
      Price”
shall
      have the meaning assigned thereto in the Pricing Side Letter.

    

    “Purchased
      Loans”
means
      any of the following assets sold by Seller to one or more Buyers in a
      Transaction: the related Loans, together with the related Records, Servicing
      Rights, Seller’s or Guarantor’s rights under any related Hedge Instruments,
      Seller’s or Guarantor’s rights
      under any takeout commitment related to the Loans and other Collateral, such
      other property, rights, titles or interest as are specified on a related
      Transaction Notice, and all instruments, chattel paper, and general intangibles
      comprising or relating to all of the foregoing. The term “Purchased Loans” with
      respect to any Transaction at any time also shall include Additional Purchased
      Loans delivered pursuant to Section 6(a) hereof and Substitute Loans delivered
      pursuant to Section 17 hereof.

    

    “Reacquired
      Loans”
shall
      have the meaning assigned thereto in Section 17.

    

    “Recognition
      Agreement”
means
      an agreement whereby a Cooperative and a lender with respect to a Cooperative
      Loan (i) acknowledge that such lender may make, or intends to make, such
      Cooperative Loan, and (ii) make certain agreements with respect to such
      Cooperative Loan.

    

    “Records”
means
      all instruments, agreements and other books, records, and reports and data
      generated by other media for the storage of information maintained by Seller
      or
      any other person or entity with respect to a Purchased Loan. Records shall
      include, without limitation, the Notes, any Mortgages, the Mortgage Files,
      the
      Servicing File, and any other instruments necessary to document or service
      a
      Loan that is a Purchased Loan, including, without limitation, the complete
      payment and modification history of each Loan that is a Purchased
      Loan.

    

    “Refinanced
      Mortgage Loan”
means
      a
      Mortgage Loan the proceeds of which were not used to purchase the related
      Mortgaged Property.

    

    “REIT”
means
      a
      real estate investment trust, as defined in Section 856 of the
      Code.

    

    “REIT
      Status”
means
      with respect to any Person, such Person’s status as a real estate investment
      trust, as defined in Section 856(a) of the Code that satisfies the conditions
      and limitations set forth in Sections 856(b) and 856(c) of the
      Code.

    

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    “Repurchase
      Date”
means
      the date occurring on (i) the 21st
      day of
      each month (or if such date is not a Business Day, the following Business
      Day), (ii)
      any
      other Business Day set forth in the related Transaction Notice and/or the
      related Confirmation, or
      (iii)
      the date determined by application of Section 20, as applicable; provided,
      however, that in no event shall the Repurchase Date for any Purchased Loan
      be
      more than 364 days after the Purchase Date of such Purchased Loan.

    

    “Repurchase
      Price”
means
      the price at which Purchased Loans are to be transferred from the related Buyer
      to Seller upon termination of a Transaction, which will be determined in each
      case (including Transactions terminable upon demand) as the sum of the Purchase
      Price for such Purchased Loans and the Price Differential as of the date of
      such
      determination.

    

    “Requirement
      of Law”
means
      as to any Person, the certificate of incorporation and by-laws or other
      organizational or governing documents of such Person, and any law, treaty,
      rule
      or regulation or determination of an arbitrator or a court or other Governmental
      Authority, in each case applicable to or binding upon such Person or any of
      its
      property or to which such Person or any of its property is subject.

    

    “Residential
      Dwelling”
means
      any one of the following: (i) a detached single family dwelling, (ii) a
      two-to-four family dwelling, (iii) a one-family dwelling unit in a Fannie Mae
      eligible condominium project, (iv) a townhouse, or (v) a detached single family
      dwelling in a planned unit development none of which is a co-operative
      commercial property. Mortgaged Properties that consist of the following property
      types are not Residential Dwellings: (a) mixed use properties, (b) log homes,
      (c) earthen homes, (d) underground homes, (e) mobile homes or manufactured
      housing units not secured by real property, (f) any dwelling situated on more
      than ten acres of property and (g) any dwelling situated on a leasehold
      estate.

    

    “S&P”
means
      Standard & Poor’s Rating Services.

    

    “Second
      Lien Mortgage Loan”
means
      an Eligible Loan secured by a lien on the Mortgaged Property, which is subject
      to one prior lien on such Mortgaged Property.

    

    “Security
      Agreement”
means
      with respect to any Loan, any contract, instrument or other document related
      to
      security for repayment thereof (other than the related Mortgage and Note),
      executed by the Mortgagor and/or others in connection with such Loan, including
      without limitation, any security agreement, guaranty, title insurance policy,
      hazard insurance policy, chattel mortgage, letter of credit or certificate
      of
      deposit or other pledged accounts, and any other documents and records relating
      to any of the foregoing.

    

    “Security
      Release Certification”
shall
      mean a security release certification in substantially the form set forth as
      Exhibit
      E
      hereto.

    

    “Servicer”
means
      Cenlar F.S.B. and any successor thereto, or any other servicer approved by
      Buyers in their sole discretion.

    

    “Servicing
      Agreement”
means
      any agreement (other than the Custodial Agreement) giving rise or relating
      to
      Servicing Rights with respect to a Purchased Loan, including any assignment
      or
      other agreement relating to such agreement.

    

    “Servicing
      File”
means
      with respect to each Loan, the file retained by Seller consisting of all
      documents that a prudent originator and servicer would have, including copies
      of
      the Mortgage Loan Documents, all documents necessary to document and service
      the
      Loans and any and all documents required to be delivered pursuant to any of
      the
      Program Documents.

    

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    “Servicing
      Rights”
means
      contractual, possessory or other rights of Seller or any other Person, whether
      arising under a Servicing Agreement or otherwise, to administer or service
      a
      Purchased Loan or to possess related Records.

    

    “Servicing
      Side Letter”
means
      the servicing side letter dated as of December 13, 2005 among the Buyers,
      the Seller, the Guarantor and the Servicer, as the same may be amended, modified
      or supplemented from time to time.

    

    “Settlement
      Agent”
means,
      with respect to any Wet-Ink Mortgage Loan, the Person specified in the
      Transaction Notice (which may be a title company, escrow company or attorney
      in
      accordance with local law and practice in the jurisdiction where the related
      Wet-Ink Mortgage Loan is being originated and which is not listed as an
      Unapproved Settlement Agent on Annex
      15
      to the
      Custodial Agreement as revised from time to time by Buyers) to which the
      proceeds of the related Purchase Price with respect to such Wet-Ink Mortgage
      Loan are to be distributed by the Disbursement Agent.

    

    “60-Day
      Delinquent Loan”
means
      a
      Loan which is more than fifty-nine (59) days Delinquent but less than ninety
      (90) days Delinquent.

    

    “Small
      Balance Commercial Loan”
means
      any Loan that is secured by a multi-family, small commercial or mixed use
      property and is not a Residential Dwelling.

    

    “Stock
      Certificates”
means
      the certificates evidencing ownership of the Cooperative Shares issued by the
      Cooperative.

    

    “Stock
      Power”
means
      an assignment of the Stock Certificate or an assignment of the Cooperative
      Shares issued by the Cooperative.

    

    “Subprime
      Loan”
means
      any Loan (other than a Wet-Ink Loan) that is not a Conforming Loan or an Alt-A
      Loan.

    

    “Subsidiary”
means,
      with respect to any Person, any corporation, partnership or other entity of
      which at least a majority of the securities or other ownership interests having
      by the terms thereof ordinary voting power to elect a majority of the board
      of
      directors or other persons performing similar functions of such corporation,
      partnership or other entity (irrespective of whether or not at the time
      securities or other ownership interests of any other class or classes of such
      corporation, partnership or other entity shall have or might have voting power
      by reason of the happening of any contingency) is at the time directly or
      indirectly owned or controlled by such Person or one or more Subsidiaries of
      such Person or by such Person and one or more Subsidiaries of such Person.
      Notwithstanding the foregoing, the term “Subsidiary”, when used with respect to
      the Guarantor, shall not include any trust or other issuing entity formed for
      the purpose of issuing mortgage-backed securities, the beneficial ownership
      interest or interests in which are owned, directly or indirectly, by the
      Guarantor.

    

    “Substitute
      Loans”
has
      the
      meaning assigned thereto in Section 17.

    

    “Termination
      Date”
means
      the earlier of (i) 364 days following the Effective Date, (ii) at Buyers’
option, upon the occurrence of an Event of Default, or (iii) at Buyers’ option,
      upon the occurrence of any outbreak or material escalation of hostilities,
      declaration by the United States of a national emergency or war or other
      calamity or crisis, the effect of which on the financial markets is such as
      to
      make it, in the reasonable judgment of Buyers, impracticable to continue this
      Agreement.

    

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    “Total
      Indebtedness”
shall
      mean with respect to any Person, for any period, the aggregate Indebtedness
      of
      such Person and its Subsidiaries during such Period.

    

    “30-Day
      Delinquent Loan”
shall
      mean a Loan which is more than twenty-nine (29) days Delinquent but less than
      sixty (60) days Delinquent.

    

    “Transaction”
has
      the
      meaning assigned thereto in Section 1.

    

    “Transaction
      Notice”
means
      a
      written request of Seller to enter into a Transaction, in a form attached as
      Exhibit A to the Custodial Agreement or such other form as shall be mutually
      agreed upon among Seller and Buyers, which is delivered to the related Buyer,
      the Disbursement Agent and the Custodian.

    

    “Trust
      Receipt”
means
      a
      Trust Receipt and Certification as defined in the Custodial
      Agreement.

    

    “Underwriting
      Guidelines”
means
      (i) NYMC’s loan underwriting guidelines set forth on Exhibit D in effect as of
      the date of this Agreement and which have been approved in writing by Buyers,
      and (ii) certain underwriting guidelines of third parties listed in Exhibit
      G
      hereof in accordance with which NYMC underwrites Loans, as the same may be
      amended from time to time in accordance with terms of this
      Agreement.

    

    “Uniform
      Commercial Code”
means
      the Uniform Commercial Code as in effect on the date hereof in the State of
      New
      York or the Uniform Commercial Code as in effect in the applicable
      jurisdiction.

    

    “Unrestricted
      Cash”
means
      cash and Cash Equivalents, of the Guarantor that are not subject to a lien
      in
      favor of any Person other than the Buyers pursuant to the Guaranty or that
      are
      not required to be maintained by the Guarantor pursuant to a contractual
      agreement (other than this Agreement) or requirement of law.

    

    “USC”
shall
      have the meaning assigned thereto in Section 35.

    

    “Wet
      Funding Package”
shall
      have the meaning set forth in the Custodial Agreement.

    

    “Wet-Ink
      Mortgage Loan”
means
      a
      first lien or second lien Loan that is sold to the related Buyer simultaneously
      with the origination thereof by the Originator, which origination is in
      accordance with the Underwriting Guidelines and is funded in part or in whole
      with proceeds of the sale of the Loan to the related Buyer paid directly to
      a
      Settlement Agent and for which all of the Mortgage Loan Documents specified
      in
      the Custodial Agreement have not been delivered to Custodian in accordance
      with
      the Custodial Agreement. For the avoidance of doubt Wet-Ink Mortgage Loans
      shall
      include each Wet-Ink Conforming Loan, Wet-Ink Alt-A Loan, Wet-Ink HELOC, Wet-Ink
      Subprime Loan, Wet-Ink Jumbo Loan and Wet-Ink Small Balance Commercial
      Loan.

    

    “Wet-Ink
      Alt-A Loan”
means
      any Wet-Ink Mortgage Loan that is an Alt-A Loan.

    

    “Wet-Ink
      Conforming Loan”
means
      any Wet-Ink Mortgage Loan that
      is a
      Conforming Loan.

    

    “Wet-Ink
      HELOC”
means
      any Wet-Ink Mortgage Loan that
      is a
      HELOC.

    

    “Wet-Ink
      Jumbo Loan”
means
      any Wet-Ink Mortgage Loan that is a Jumbo Loan.

    

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    “Wet
      Ink Small Balance Commercial Loan”
means
      any Wet-Ink Mortgage Loan that is a Small Balance Commercial Loan.

    

    “Wet-Ink
      Subprime Loan”
means
      any Wet-Ink Loan that is not a Wet-Ink Conforming Loan or a Wet-Ink Alt-A
      Loan.

    

    (b) Capitalized
      terms used but not defined in this Agreement shall have the meanings assigned
      thereto in the Custodial Agreement.

    

    (c) Interpretation.

    

    Headings
      are for convenience only and do not affect interpretation. The following rules
      of this subsection (c) apply unless the context requires otherwise. The singular
      includes the plural and conversely. A gender includes all genders. Where a
      word
      or phrase is defined, its other grammatical forms have a corresponding meaning.
      A reference to a subsection, Section, Annex or Exhibit is, unless otherwise
      specified, a reference to a Section of, or annex or exhibit to, this Agreement.
      A reference to a party to this Agreement or another agreement or document
      includes the party’s successors and permitted substitutes or assigns. A
      reference to an agreement or document is to the agreement or document as
      amended, modified, novated, supplemented or replaced, except to the extent
      prohibited by any Program Document. A reference to legislation or to a provision
      of legislation includes a modification or re-enactment of it, a legislative
      provision substituted for it and a regulation or statutory instrument issued
      under it. A reference to writing includes a facsimile transmission and any
      means
      of reproducing words in a tangible and permanently visible form. A reference
      to
      conduct includes, without limitation, an omission, statement or undertaking,
      whether or not in writing. An Event of Default exists until it has been waived
      in writing by Buyers or has been timely cured. The words “hereof”, “herein”,
“hereunder” and similar words refer to this Agreement as a whole and not to any
      particular provision of this Agreement. The term “including” is not limiting and
      means “including without limitation”. In the computation of periods of time from
      a specified date to a later specified date, the word “from” means “from and
      including”, the words “to” and “until” each mean “to but excluding”, and the
      word “through” means “to and including”. This Agreement may use several
      different limitations, tests or measurements to regulate the same or similar
      matters. All such limitations, tests and measurements are cumulative and shall
      each be performed in accordance with their terms. Unless the context otherwise
      clearly requires, all accounting terms not expressly defined herein shall be
      construed, and all financial computations required under this Agreement shall
      be
      made, in accordance with GAAP, consistently applied. References herein to
“fiscal year” and “fiscal quarter” refer to such fiscal periods of Seller or
      Guarantor, as applicable.

    

    Except
      where otherwise provided in this Agreement, any determination, consent,
      approval, statement or certificate made or confirmed in writing with notice
      to
      Seller or Guarantor by any Buyer or an authorized officer of any Buyer provided
      for in this Agreement is conclusive and binds the parties in the absence of
      manifest error. A reference to an agreement includes a security interest,
      guarantee, agreement or legally enforceable arrangement whether or not in
      writing related to such agreement.

    

    A
      reference to a document includes an agreement (as so defined) in writing or
      a
      certificate, notice, instrument or document, or any information recorded in
      computer disk form. Where Seller or Guarantor is required to provide any
      document to Buyers under the terms of this Agreement, the relevant document
      shall be provided in writing or printed form unless Buyers request otherwise.
      At
      the request of Buyers, the document shall be provided in computer disk form
      or
      both printed and computer disk form.

    

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    This
      Agreement is the result of negotiations among, and has been reviewed by counsel
      to, Buyers, Guarantor and Seller, and is the product of all parties. In the
      interpretation of this Agreement, no rule of construction shall apply to
      disadvantage one party on the ground that such party proposed or was involved
      in
      the preparation of any particular provision of this Agreement or this Agreement
      itself. Except where otherwise expressly stated, Buyers may give or withhold,
      or
      give conditionally, approvals and consents and may form opinions and make
      determinations at its absolute discretion. Any requirement of good faith,
      discretion or judgment by Buyers shall not be construed to require Buyers to
      request or await receipt of information or documentation not immediately
      available from or with respect to Seller, Guarantor, a servicer of the Purchased
      Loans, any other Person or the Purchased Loans themselves.

     

    3. THE
      TRANSACTIONS

    

    (a) Subject
      to the terms and conditions of the Program Documents, the Buyers may enter
      into
      Transactions with an aggregate Purchase Price for all Purchased Loans acquired
      by all Buyers not to exceed the Maximum Aggregate Purchase Price. Unless
      otherwise agreed, (i) with respect to the purchase of Loans that are Dry
      Mortgage Loans, Seller shall give the related Buyer and Custodian notice of
      any
      proposed purchase by delivering on the proposed purchase prior to 11:00 a.m.
      New
      York City time two (2) Business Days prior to the proposed Purchase Date (the
      date on which such notice is so given, the “Notice
      Date”)
      (A) a
      Transaction Notice, a Loan Schedule and a Computer Tape to the related Buyer
      and
      Custodian, and (B) the Mortgage File to Custodian for each Loan subject to
      such Transaction, and (ii) with respect to the purchase of Wet-Ink Mortgage
      Loans, prior to 3:00 p.m., New York City time, on the Business Day prior to
      the
      purchase of such Wet-Ink Mortgage Loans by a Buyer, Seller shall notify the
      related Buyer of an estimate of the Purchase Price of such Wet-Ink Mortgage
      Loans and Seller shall give the related Buyer and Custodian notice of any
      proposed purchase and shall deliver a Transaction Notice, a Loan Schedule,
      a
      Computer Tape and the Escrow Letter to the related Buyer, the Disbursement
      Agent
      and Custodian, each in accordance with the applicable delivery times specified
      in the Custodial Agreement and the Disbursement Agreement (also, a “Notice
      Date”).
      In
      addition to other information provided on the applicable Notice Date, Seller
      or
      Guarantor, as applicable shall simultaneously deliver by electronic mail the
      applicable notice set forth in Exhibit
      A
      to the
      Master Loan Sale Agreement which shall be included in the Transaction
      Notice.

    

    (b) Seller
      shall repurchase Purchased Loans from the related Buyer on each related
      Repurchase Date. Each obligation to repurchase exists without regard to any
      prior or intervening liquidation or foreclosure with respect to any Purchased
      Loan. Seller is obligated to obtain the Purchased Loans from the related Buyer
      or its designee (including the Custodian) at Seller’s expense on (or after) the
      related Repurchase Date. Provided that the applicable conditions in Sections
      10(a) and (b) have been satisfied, the Seller may request that each Purchased
      Loan that is repurchased by Seller on the Repurchase Date become subject to
      a
      new Transaction by delivering notice of such request to the related Buyer at
      least one (1) Business Day prior to any such Repurchase Date; provided that
      if the
      Repurchase Date so determined is later than the Termination Date, the Repurchase
      Date for such Transaction shall automatically reset to the Termination Date,
      and
      the provisions of this sentence as it might relate to a new Transaction shall
      expire on such date. For each new Transaction, unless otherwise agreed, (y)
      the
      accrued and unpaid Price Differential shall be settled in cash on each related
      Repurchase Date, and (z) the Pricing Rate shall be as set forth in the Pricing
      Side Letter.

    

    (c) If
      Seller
      repurchases Purchased Loans on any day which is not a Repurchase Date for such
      Purchased Loans, Seller shall indemnify the related Buyer and hold the related
      Buyer harmless from any losses, costs and/or expenses which the related Buyer
      may sustain or incur arising from the reemployment of funds obtained by the
      related Buyer hereunder or from fees payable to terminate the deposits from
      which such funds were obtained, in each case for the remainder of the applicable
      30 day period (“Breakage
      Costs”).
      The
      related Buyer shall deliver to Seller a statement setting forth the amount
      and
      basis of determination of any Breakage Costs in such detail as determined in
      good faith by the related Buyer to be adequate, it being agreed that such
      statement and the method of its calculation shall be adequate and shall be
      conclusive and binding upon Seller, absent manifest error. The provisions of
      this Section 3(c) shall survive termination of this Agreement and the repurchase
      of all Purchased Loans subject to Transactions hereunder.

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

    4. CONFIRMATIONS

    

    In
      the
      event that the parties hereto desire to enter into a Transaction on terms other
      than as set forth in this Agreement (as amended by the Pricing Side Letter),
      the
      parties shall execute a “Confirmation” specifying such terms prior to entering
      into such Transaction, including, without limitation, the Purchase Date, the
      Purchase Price, the Pricing Rate therefor and the Repurchase Date. Any such
      Confirmation and the related Transaction Notice, together with this Agreement,
      shall constitute conclusive evidence of the terms agreed to between the related
      Buyer and Seller with respect to the Transaction to which the Confirmation
      relates. In the event of any conflict between this Agreement and a Confirmation,
      the terms of the Confirmation shall control with respect to the related
      Transaction.

     

    5. PAYMENT
      AND TRANSFER

    

    Unless
      otherwise agreed, all transfers of funds hereunder shall be in immediately
      available funds and all Purchased Loans transferred shall be transferred to
      the
      Custodian pursuant to the Custodial Agreement. Any Repurchase Price or Price
      Differential received by the related Buyer after 2:00 p.m. New York City time
      shall be applied on the next succeeding Business Day.

     

    6. MARGIN
      MAINTENANCE

    

    (a) If
      at any
      time either (i) the aggregate Market Value of all Purchased Loans subject to
      all
      Transactions is less than the aggregate MV Margin Amount for all such
      Transactions, or (ii) the aggregate unpaid principal balance of the Purchased
      Loans for all Transactions is less than the sum of the aggregate Par Margin
      Amount for all such Transactions (either such event, a “Margin
      Deficit”),
      then
      the related Buyer may by notice to Seller require Seller in such Transactions
      to
      transfer to the related Buyer cash or, at the related Buyer’s option (and
      provided Seller has additional Eligible Loans), additional Eligible Loans
      (“Additional
      Purchased Loans”)
      within
      one (1) Business Day of such notice by such Buyer, so that both (x) the cash
      and
      aggregate Market Value of such Purchased Loans, including any such Additional
      Purchased Loans, will thereupon equal or exceed such aggregate MV Margin Amount,
      and (y) the cash and unpaid principal balance of such Purchased Loans, including
      any such Additional Purchased Loans and any Purchased Loans, will thereupon
      equal or exceed such aggregate Par Margin Amount (either such requirement,
      a
“Margin
      Call”).

    

    (b) Notice
      required pursuant to Section 6(a) may be given by any means provided in
      Section 36 hereof. Any notice given on a Business Day shall be met, and the
      related Margin Call satisfied, no later than 5:00 p.m. New York City time on
      the
      following Business Day. The failure of any Buyer, on any one or more occasions,
      to exercise its rights hereunder, shall not change or alter the terms and
      conditions to which this Agreement is subject or limit the right of such Buyer
      to do so at a later date. Seller, Guarantor and Buyer each agree that a failure
      or delay by any Buyer to exercise its rights hereunder shall not limit or waive
      Buyers’ rights under this Agreement or otherwise existing by law or in any way
      create additional rights for Seller or Guarantor.

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

    7. INCOME
      PAYMENTS

    

    Where
      a
      particular term of a Transaction extends over the date on which Income is paid
      in respect of any Purchased Loan subject to that Transaction, such Income shall
      be the property of Buyers. Notwithstanding the foregoing, and provided no
      Default has occurred and is continuing, Buyers agree that Seller shall be
      entitled to receive an amount equal to all Income received by Servicer or Seller
      in respect of any Purchased Loan to the full extent it would be so entitled
      if
      the Purchased Loans had not been sold to Buyers; provided
      that any
      Income received by Servicer or Seller while the related Transaction is
      outstanding shall be deemed to be held by Servicer or Seller, as applicable,
      solely in trust for Buyers pending the repurchase on the related Repurchase
      Date; provided further
      that
      Seller shall cause Servicer to hold all such Income in the accounts established
      by Servicer for the benefit of Buyers and upon remittance by Servicer to Seller
      of all such amounts, Seller shall hold all such Income in the Collection Account
      established hereunder. Provided no Default has occurred, Buyers shall, as the
      parties may agree with respect to any Transaction (or, in the absence of any
      such agreement, as Buyers shall reasonably determine in their sole discretion),
      on the Repurchase Date following the date such Income is received by Buyers
      (or
      a servicer on their behalf) either (i) release to Seller such Income with
      respect to any Purchased Loans subject to such Transaction or (ii) if a Margin
      Deficit then exists, apply the Income payment to reduce the amount, if any,
      to
      be transferred to Buyers by Seller upon termination of such Transaction. Buyers
      shall not be obligated to take any action pursuant to the preceding sentences
      (A) to the extent that such action would result in the creation of a Margin
      Deficit, unless prior thereto or simultaneously therewith Seller transfers
      to
      Buyers cash or Additional Purchased Loans sufficient to eliminate such Margin
      Deficit, or (B) if an Event of Default with respect to Seller has occurred
      and
      is then continuing at the time such Income is paid.

     

    8. TAXES;
      TAX TREATMENT

    

    (a) All
      payments made by the Seller under this Repurchase Agreement shall be made free
      and clear of, and without deduction or withholding for or on account of, any
      present or future taxes, levies, imposts, deductions, charges or withholdings,
      and all liabilities (including penalties, interest and additions to tax) with
      respect thereto imposed by any Governmental Authority thereof or therein,
      excluding income taxes, branch profits taxes, franchise taxes or any other
      tax
      imposed on the net income by the United States, a state or a foreign
      jurisdiction under the laws of which the Buyers are organized or of their
      applicable lending office, or any political subdivision thereof (collectively,
      “Taxes”),
      all
      of which shall be paid by the Seller for its own account not later than the
      date
      when due. If the Seller is required by law or regulation to deduct or withhold
      any Taxes from or in respect of any amount payable hereunder, it shall: (a)
      make
      such deduction or withholding; (b) pay the amount so deducted or withheld to
      the
      appropriate Governmental Authority not later than the date when due; (c) deliver
      to Buyers, promptly, original tax receipts and other evidence satisfactory
      to
      Buyers of the payment when due of the full amount of such Taxes; and (d) pay
      to
      the Buyers such additional amounts as may be necessary so that such Buyers
      receive, free and clear of all Taxes, a net amount equal to the amount it would
      have received under this Agreement, as if no such deduction or withholding
      had
      been made.

    

    (b) In
      addition, the Seller agrees to pay to the relevant Governmental Authority in
      accordance with applicable law any current or future stamp or documentary taxes
      or any other excise or property taxes, charges or similar levies (including,
      without limitation, mortgage recording taxes, transfer taxes and similar fees)
      imposed by the United States or any taxing authority thereof or therein that
      arise from any payment made hereunder or from the execution, delivery or
      registration of, or otherwise with respect to, this Repurchase Agreement
      (“Other
      Taxes”).

    

    (c) The
      Seller agrees to indemnify the Buyers for the full amount of Taxes (including
      additional amounts with respect thereto) and Other Taxes, and the full amount
      of
      Taxes of any kind imposed by any jurisdiction on amounts payable under this
      Section 8, and any liability (including penalties, interest and expenses)
      arising therefrom or with respect thereto, provided that the Buyers shall have
      provided the Seller with evidence, reasonably satisfactory to the Seller, of
      payment of Taxes or Other Taxes, as the case may be.

    

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

    (d) Any
      Buyer
      that
      is not
      incorporated under the laws of the United States, any State thereof, or the
      District of Columbia
      (a
“Foreign
      Buyer”)
      shall
      provide the Seller with properly completed United States Internal Revenue
      Service (“IRS”)
      Form
      W-8BEN or W-8ECI or any successor form prescribed by the IRS, certifying that
      such Foreign Buyer is entitled to benefits under an income tax treaty to which
      the United States is a party which reduces the rate of withholding tax on
      payments of interest or certifying that the income receivable pursuant to this
      Agreement is effectively connected with the conduct of a trade or business
      in
      the United States on or prior to the date upon which each such Foreign Buyer
      becomes a Buyer. Each Foreign Buyer will resubmit the appropriate form on the
      earliest of (A) the third anniversary of the prior submission or (B) on or
      before the expiration of thirty (30) days after there is a “change in
      circumstances” with respect to such Foreign Buyer as defined in Treas. Reg.
      Section 1.1441(e)(4)(ii)(D). For any period with respect to which a Foreign
      Buyer has failed to provide the Seller with the appropriate form or other
      relevant document pursuant to this Section 8(d) (unless such failure is due
      to a
      change in treaty, law, or regulation occurring subsequent to the date on which
      a
      form originally was required to be provided), such Foreign Buyer shall not
      be
      entitled to any “gross-up” of Taxes or indemnification under Section 8(c) with
      respect to Taxes imposed by the United States; provided,
      however,
      that
      should a Foreign Buyer, which is otherwise exempt from a withholding tax, become
      subject to Taxes because of its failure to deliver a form required hereunder,
      the Seller shall take such steps as such Foreign Buyer shall reasonably request
      to assist such Foreign Buyer to recover such Taxes.

    

    (e) Without
      prejudice to the survival or any other agreement of Seller hereunder, the
      agreements and obligations of Seller contained in this Section 8 shall survive
      the termination of this Repurchase Agreement. Nothing contained in this Section
      8 shall require Buyers to make available any of their tax returns or other
      information that it deems to be confidential or proprietary.

    

    (f) Each
      party to this Repurchase Agreement acknowledges that it is its intent for
      purposes of U.S. federal, state and local income and franchise taxes to treat
      each Transaction as indebtedness of Seller that is secured by the Purchased
      Loans and that the Purchased Loans are owned by Seller in the absence of an
      Event Default by Seller. All parties to this Repurchase Agreement agree to
      such
      treatment and agree to take no action inconsistent with this treatment, unless
      required by law.

     

    9. SECURITY
      INTEREST; BUYERS’ APPOINTMENT AS ATTORNEY-IN-FACT

    

    (a) Seller
      and Buyers intend that the Transactions hereunder be sales to Buyers of the
      Purchased Loans and not loans from Buyers to Seller secured by the Purchased
      Loans. However, in order to preserve Buyers’ rights under this Agreement in the
      event that a court or other forum recharacterizes the Transactions hereunder
      as
      other than sales, and as security for Seller’s performance of all of its
      Obligations, Seller hereby grants Buyers a fully perfected first priority
      security interest, in the following property, whether now existing or hereafter
      acquired: the Purchased Loans, the related Records, all related Servicing
      Rights, all mortgage guaranties and insurance relating to such Purchased Loans
      (issued by governmental agencies or otherwise) or the related Mortgaged Property
      and any mortgage insurance certificate or other document evidencing such
      mortgage guaranties or insurance and all claims and payments thereunder, the
      Seller’s rights under the Master Loan Sale Agreement (including, without
      limitation, the security interest in favor of Seller pursuant to Section 4
      thereof) any purchase agreements or other agreements or contracts relating
      to or
      constituting any or all of the foregoing, all “accounts” as defined in the
      Uniform Commercial Code relating to or constituting any or all of the foregoing,
      all other insurance policies and insurance proceeds relating to any Purchased
      Loan or the related Mortgage Property and any other contract rights, payments,
      rights to payment (including payments of interest or finance charges), and
      all
      instruments, chattel paper, securities, investment property and general
      intangibles and other assets comprising or relating to the Purchased Loans,
      any
      security account and all rights to Income and the rights to enforce such
      payments arising from any of the Purchased Loans, all guarantees or other
      support for the Purchased Loans, and any and all replacements, substitutions,
      distributions on, or proceeds with respect to, any of the foregoing
      (collectively the “Collateral”).
      Seller acknowledges and agrees that its rights with respect to the Collateral
      (including without limitation, its security interest in the Purchased Loans
      and
      any other collateral granted to Seller pursuant to any other agreement) are
      and
      shall continue to be at all times junior and subordinate to the rights of Buyers
      hereunder. Seller acknowledges and agrees that its rights with respect to the
      Collateral (including without limitation, its security interest in the Purchased
      Loans and any other collateral granted to Seller pursuant to any other
      agreement) are and shall continue to be at all times junior and subordinate
      to
      the rights of Buyers hereunder.

    

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

    (b) Seller
      hereby irrevocably constitutes and appoints Buyers and any officer or agent
      thereof, with full power of substitution, as its true and lawful
      attorney-in-fact with full irrevocable power and authority in the place and
      stead of Seller and in the name of Seller or in its own name, from time to
      time
      in Buyers’ discretion, for the purpose of carrying out the terms of this
      Repurchase Agreement, to take any and all appropriate action and to execute
      any
      and all documents and instruments which may be reasonably necessary or desirable
      to accomplish the purposes of this Repurchase Agreement, to file such financing
      statement or statements relating to the Purchased Loans and the Collateral
      without Seller’s signature thereon as Buyers at their option may deem
      appropriate, and, without limiting the generality of the foregoing, Seller
      hereby gives Buyers the power and right, on behalf of Seller, without assent
      by,
      but with notice to, Seller, if an Event of Default shall have occurred and
      be
      continuing, to do the following:

    

    (i) in
      the
      name of Seller, or in its own name, or otherwise, to take possession of and
      endorse and collect any checks, drafts, notes, acceptances or other instruments
      for the payment of moneys due with respect to any other Purchased Loans and
      to
      file any claim or to take any other action or proceeding in any court of law
      or
      equity or otherwise deemed appropriate by Buyers for the purpose of collecting
      any and all such moneys due with respect to any other Purchased Loans whenever
      payable;

    

    (ii) to
      pay or
      discharge taxes and Liens levied or placed on or threatened against the
      Purchased Loans;

    

    (iii) (A)
      to
      direct any party liable for any payment under any Purchased Loans to make
      payment of any and all moneys due or to become due thereunder directly to Buyers
      or as Buyers shall direct; (B) to ask or demand for, collect, receive payment
      of
      and receipt for, any and all moneys, claims and other amounts due or to become
      due at any time in respect of or arising out of any Purchased Loans; (C) to
      sign
      and endorse any invoices, assignments, verifications, notices and other
      documents in connection with any Purchased Loans; (D) to commence and prosecute
      any suits, actions or proceedings at law or in equity in any court of competent
      jurisdiction to collect the Purchased Loans or any proceeds thereof and to
      enforce any other right in respect of any Purchased Loans; (E) to defend any
      suit, action or proceeding brought against Seller with respect to any Purchased
      Loans; (F) to settle, compromise or adjust any suit, action or proceeding
      described in clause (E) above and, in connection therewith, to give such
      discharges or releases as Buyers may deem appropriate; and (G) generally, to
      sell, transfer, pledge and make any agreement with respect to or otherwise
      deal
      with any Purchased Loans as fully and completely as though the related Buyer
      were the absolute owner thereof for all purposes, and to do, at Buyers’ option
      and Seller’s expense, at any time, and from time to time, all acts and things
      which Buyers deem necessary to protect, preserve or realize upon the Purchased
      Loans and the Collateral and Buyers’ Liens thereon and to effect the intent of
      this Repurchase Agreement, all as fully and effectively as Seller might
      do.

    

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

    Seller
      hereby ratifies all that said attorneys shall lawfully do or cause to be done
      by
      virtue hereof. This power of attorney is a power coupled with an interest and
      shall be irrevocable.

    

    Seller
      also authorizes Buyers, if an Event of Default shall have occurred, from time
      to
      time, to execute, in connection with any sale provided for in Section 20 hereof,
      any endorsements, assignments or other instruments of conveyance or transfer
      with respect to the Purchased Loans.

    

    The
      powers conferred on Buyers hereunder are solely to protect Buyers’ interests in
      the Purchased Loans and shall not impose any duty upon it to exercise any such
      powers. Buyers shall be accountable only for amounts that it actually receives
      as a result of the exercise of such powers, and neither it nor any of its
      officers, directors, employees or agents shall be responsible to Seller for
      any
      act or failure to act hereunder, except for its or their own gross negligence
      or
      willful misconduct.

     

    10. CONDITIONS
      PRECEDENT

    

    (a) As
      conditions precedent to the initial Transaction, Buyers shall have received
      on
      or before the day of such initial Transaction the following, in form and
      substance satisfactory to Buyers and duly executed by each party thereto (as
      applicable):

    

    (i) The
      Program Documents duly executed and delivered by the parties thereto and being
      in full force and effect, free of any modification, breach or
      waiver;

    

    (ii) A
      certified copy of Seller’s and Guarantor’s consents or corporate resolutions, as
      applicable, approving the Program Documents and Transactions thereunder (either
      specifically or by general resolution), and all documents evidencing other
      necessary corporate action or governmental approvals as may be required in
      connection with the Program Documents;

    

    (iii) An
      incumbency certificate of the secretaries of Seller and Guarantor certifying
      the
      names, true signatures and titles of Seller’s and Guarantor’s representatives
      duly authorized to request Transactions hereunder and to execute the Program
      Documents and the other documents to be delivered thereunder;

    

    (iv) An
      opinion of Seller’s and Guarantor’s counsel as to such matters as Buyers may
      reasonably request (including, without limitation, perfected security interest
      in the Collateral, Investment Company Act opinion, a “true sale” and a
      non-consolidation opinion with respect to the Seller and the Guarantor, and
      a
“repurchase agreement” opinion) each in form and substance acceptable to
      Buyers;

    

    (v) A
      copy of
      the Acquisition Guidelines (referred to in (i) of the definition thereof) and
      the Underwriting Guidelines (referred to in (i) of the definition thereof),
      each
      certified by an officer of Loan Seller;

    

    (vi) To
      the
      extent applicable, a waiver from Guarantor’s lenders permitting Guarantor to
      issue the Guaranty;

    

    (vii) The
      payment in respect of the legal fees as set forth in the Pricing Side
      Letter;

    

    (viii) Evidence
      of the establishment of the Collection Account;

    

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

    (ix) A
      copy of
      the insurance required by Section 14(o) of this Agreement;

    

    (x) The
      original stock certificates, representing 100% beneficial ownership in the
      Seller issued in the name of NYMC and an original conveyance power in blank
      executed by NYMC.

    

    (xi) Buyers
      shall have completed the due diligence review pursuant to Section 38, and such
      review shall be satisfactory to Buyers in their sole discretion;
      and

    

    (xii) Any
      other
      documents reasonably requested by Buyers.

    

    (b) The
      obligation of Buyers to enter into each Transaction pursuant to this Agreement
      is subject to the following conditions precedent:

    

    (i) Buyers
      or
      their designee shall have received on or before the day of a Transaction with
      respect to such Purchased Loans (unless otherwise specified in this Agreement)
      the following, in form and substance satisfactory to Buyers and (if applicable)
      duly executed:

    

    
      	 	
              (A)

            	
              The
                Transaction Notice, Loan Schedule and Computer Tape with respect
                to such
                Purchased Loans, delivered pursuant to Section
                3(a);

            

    

    

    
      	 	
              (B)

            	
              The
                Trust Receipt with respect to such Purchased Loans, with the Loan
                Schedule
                attached;

            

    

    

    
      	 	
              (C)

            	
              Such
                certificates, customary opinions of counsel or other documents as
                Buyers
                may reasonably request, provided that such opinions of counsel shall
                not
                be required routinely in connection with each Transaction but shall
                only
                be required from time to time as deemed necessary by Buyers in its
                commercially reasonable judgment;

            

    

    

    
      	 	
              (D)

            	
              A
                copy of the applicable Underwriting Guidelines (referred to in (i)
                of the
                definition thereof) or Acquisition Guidelines (referred to in (i)
                of the
                definition thereof) to the extent either of such guidelines have
                been
                amended since the last Transaction;

            

    

    

    
      	 	
              (E)

            	
              A
                copy of the applicable notice set forth in Exhibit
                A
                of
                the Master Loan Sale Agreement (which may be contained in the related
                Transaction Notice); and

            

    

    

    
      	 	
              (F)

            	
              To
                the extent applicable, a Security Release
                Certification.

            

    

    

    (ii) No
      Default or Event of Default shall have occurred and be continuing.

    

    (iii) Buyers
      shall not have reasonably determined that the introduction of or a change in
      any
      requirement of law or in the interpretation or administration of any requirement
      of law applicable to Buyers has made it unlawful, and no Governmental Authority
      shall have asserted that it is unlawful, for Buyers to enter into Transactions
      with a Pricing Rate based on LIBOR.

    

    (iv) To
      the
      extent that an Insured Closing Letter previously provided to Buyer does not
      cover the Loans subject to the proposed Transaction, an Insured Closing Letter
      covering such Loans.

    

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

    (v) All
      representations and warranties in the Program Documents shall be true and
      correct on the date of such Transaction and Seller and Guarantor are in
      compliance with the terms and conditions of the Program Documents.

    

    (vi) The
      then
      aggregate outstanding Purchase Price for all Purchased Loans, when added to
      the
      Purchase Price for the requested Transaction, shall not exceed the Maximum
      Aggregate Purchase Price.

    

    (vii) Satisfaction
      of any conditions precedent to the initial Transaction as set forth in clause
      (a) of this Section 10 that were not satisfied prior to such initial Purchase
      Date.

    

    (viii) Buyers
      shall have determined that all actions necessary or, in the opinion of Buyers,
      desirable to maintain the related Buyer’s perfected interest in the Purchased
      Loans and other Collateral have been taken, including, without limitation,
      duly
      executed and filed Uniform Commercial Code financing statements on Form
      UCC-1.

    

    (ix) If
      the
      Purchased Loans are being acquired or originated under the Acquisition
      Guidelines (referred to in (ii) of the definition thereof) or the Underwriting
      Guidelines (referred to in (ii) of the definition thereof), Buyers shall have
      approved such Underwriting Guidelines or Acquisition Guidelines. If Buyers
      have
      previously approved such Underwriting Guidelines or Acquisition Guidelines
      and
      there has since been any material modification or amendment thereto, a copy
      of
      such modification or amendment shall have been approved by Buyers. 

    

    (x) Seller
      shall have paid to Buyers any accrued and unpaid Non Usage Fees and all other
      fees and expenses owed to Buyers in accordance with the Program
      Documents.

    

    (xi) Buyers
      or
      their designee shall have received any other documents reasonably requested
      by
      Buyers.

    

    (xii) Such
      Transaction, when added to all other Transactions previously entered into on
      such Business Day shall not exceed four (4) Transactions.

    

    (xiii) There
      is
      no Margin Deficit at the time immediately prior to entering into a new
      Transaction.

    

    (xiv) The
      Purchase Price for the requested Transaction shall not be less than
      $2,000,000.

    

    (xv) No
      event
      or events shall have been reasonably determined by Buyers to have occurred
      resulting in the effective absence of a whole loan or asset backed securities
      market or commercial paper market.

    

    (xvi) Each
      secured party (including any party that has a precautionary security interest
      in
      a Loan) has released all of its right, title and interest in, to and under
      such
      Loan (including, without limitation, any security interest that such secured
      party or secured party’s agent may have by virtue of its possession, custody or
      control thereof) and has filed Uniform Commercial Code termination statements
      in
      respect of any Uniform Commercial Code filings made in respect of such Loan,
      and
      each such release and Uniform Commercial Code termination statement has been
      delivered to the Buyers prior to each Transaction and to the Custodian as part
      of the Mortgage File.

     

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

    11. RELEASE
      OF PURCHASED LOANS

    

    Upon
      timely payment in full of the Repurchase Price and all other Obligations (if
      any) then owing with respect to a Purchased Loan, unless a Default or Event
      of
      Default shall have occurred and be continuing, then (a) Buyers shall be deemed
      to have terminated any security interest that Buyers may have in such Purchased
      Loan and any Collateral solely related to such Purchased Loan and (b) with
      respect to such Purchased Loan, Buyers shall direct Custodian to release such
      Purchased Loan and any Collateral solely related to such Purchased Loan to
      Seller unless such release and termination would give rise to or perpetuate
      a
      Margin Deficit. Except as set forth in Sections 6(a) and 17, Seller shall give
      at least one (1) Business Day prior written notice to Buyers if such repurchase
      shall occur on any date other than the Repurchase Date.

    

    If
      such a
      Margin Deficit is applicable, the related Buyer shall notify Seller of the
      amount thereof and Seller may thereupon satisfy the Margin Call in the manner
      specified in Section 6.

     

    12. RELIANCE

    

    With
      respect to any Transaction, Buyers may conclusively rely upon, and shall incur
      no liability to Seller or Guarantor in acting upon, any request or other
      communication that Buyers reasonably believe to have been given or made by
      a
      person authorized to enter into a Transaction on Seller’s or Guarantor’s
      behalf.

     

    13. REPRESENTATIONS
      AND WARRANTIES

    

    Each
      of
      Seller and Guarantor hereby represents and warrants, and shall on and as of
      the
      Purchase Date for any Transaction and on and as of each date thereafter through
      and including the related Repurchase Date be deemed to represent and warrant
      that:

    

    (a) Due
      Organization and Qualification.
      Each of
      Seller and Guarantor is duly organized, validly existing and in good standing
      under the laws of the jurisdiction under whose laws it is organized. Each of
      Seller and Guarantor is duly qualified to do business and has obtained all
      necessary licenses, permits, charters, registrations and approvals necessary
      for
      the conduct of its business as currently conducted and the performance of its
      obligations under the Program Documents except where any failure to obtain
      such
      a license, permit, charter, registration or approval will not cause a Material
      Adverse Effect with respect to Seller or Guarantor or impair the enforceability
      of any Loan.

    

    (b) Power
      and Authority.
      Each of
      Seller and Guarantor has all necessary power and authority to conduct its
      business as currently conducted, to execute, deliver and perform its obligations
      under the Program Documents and to consummate the Transactions.

    

    (c) Due
      Authorization.
      The
      execution, delivery and performance of the Program Documents by each of Seller
      and Guarantor have been duly authorized by all necessary action and do not
      require any additional approvals or consents or other action by or any notice
      to
      or filing with any Person other than any that have heretofore been obtained,
      given or made.

    

    (d) Noncontravention.
      None of
      the execution and delivery of the Program Documents by Seller or Guarantor
      or
      the consummation of the Transactions and transactions thereunder:

    

    (i) conflicts
      with, breaches or violates any provision of the organizational documents or
      material agreements of Seller or Guarantor or any law, rule, regulation, order,
      writ, judgment, injunction, decree, determination or award currently in effect
      having applicability to Seller or Guarantor or its properties;

    

    
      
        
        

      

      
        -25-

        
          

        

      

      
        
        

      

    

    (ii) constitutes
      a material default by Seller or Guarantor under any loan or repurchase
      agreement, mortgage, indenture or other agreement or instrument to which Seller
      or Guarantor is a party or by which it or any of its properties is or may be
      bound or affected; or

    

    (iii) results
      in or requires the creation of any lien upon or in respect of any of the assets
      of Seller or Guarantor except the lien relating to the Program
      Documents.

    

    (e) Legal
      Proceeding.
      Except
      as disclosed in Exhibit F, there is no action, proceeding or investigation
      by or
      before any court, governmental or administrative agency or arbitrator affecting
      any of the Purchased Loans, Seller, Guarantor or any of their Affiliates,
      pending or threatened, which, if decided adversely, would have a Material
      Adverse Effect with respect to Seller or Guarantor.

    

    (f) Valid
      and Binding Obligations.
      Each of
      the Program Documents to which Seller
      or
      Guarantor
      is a
      party, when executed and delivered by Seller or Guarantor, as applicable, will
      constitute the legal, valid and binding obligations of Seller or Guarantor,
      as
      applicable, enforceable against Seller or Guarantor, as applicable, in
      accordance with their respective terms, except as such enforceability may be
      limited by bankruptcy, insolvency, reorganization, moratorium or other similar
      laws affecting creditors’ rights generally and general equitable principles
      (regardless of whether enforcement is sought in a proceeding in equity or at
      law).

    

    (g) Financial
      Statements.
      The
      financial statements of Guarantor, copies of which have been furnished to
      Buyers, (i) are, as of the dates and for the periods referred to therein,
      complete and correct in all material respects, (ii) present fairly the financial
      condition and results of operations of Guarantor as of the dates and for the
      periods indicated and (iii) have been prepared in accordance with GAAP
      consistently applied, except as noted therein (subject as to interim statements
      to normal year-end adjustments). Since the date of the most recent financial
      statements, there has been no Material Adverse Change with respect to Guarantor.
      Except as disclosed in such financial statements, Guarantor is not subject
      to
      any contingent liabilities or commitments that, individually or in the
      aggregate, have a material possibility of causing a Material Adverse Change
      with
      respect to Guarantor.

    

    (h) Accuracy
      of Information.
      None of
      the documents or information prepared by or on behalf of Seller or Guarantor
      and
      provided to Buyers relating to Seller’s or Guarantor’s financial condition
      contain any statement of a material fact with respect to Seller or Guarantor,
      or
      the Transactions that was untrue or misleading in any material respect when
      made. Since the furnishing of such documents or information, there has been
      no
      change, nor any development or event involving a prospective change known to
      Seller or Guarantor, that would render any of such documents or information
      untrue or misleading in any material respect.

    

    (i) No
      Consents.
      No
      consent, license, approval or authorization from, or registration, filing or
      declaration with, any regulatory body, administrative agency, or other
      governmental, instrumentality, nor any consent, approval, waiver or notification
      of any creditor, lessor or other non-governmental person, is required in
      connection with the execution, delivery and performance by Seller or Guarantor
      of this Agreement or the consummation by Seller or Guarantor of any other
      Program Document, other than any that have heretofore been obtained, given
      or
      made.

    

    (j) Compliance
      With Law, Etc.
      No
      practice, procedure or policy employed or proposed to be employed by Seller
      or
      Guarantor in the conduct of their businesses violates any law, regulation,
      judgment, agreement, regulatory consent, order or decree applicable to it which,
      if enforced, would result in either a Material Adverse Change or a Material
      Adverse Effect with respect to Seller or Guarantor.

    

    
      
        
        

      

      
        -26-

        
          

        

      

      
        
        

      

    

    (k) Solvency:
      Fraudulent Conveyance.
      Each of
      Seller and Guarantor is solvent and will not be rendered insolvent by the
      Transaction and, after giving effect to such Transaction, neither Seller nor
      Guarantor will be left with an unreasonably small amount of capital with which
      to engage in its business. Neither Seller nor Guarantor intends to incur, nor
      believes that it has incurred, debts beyond its ability to pay such debts as
      they mature. Neither Seller nor Guarantor is contemplating the commencement
      of
      insolvency, bankruptcy, liquidation or consolidation proceedings or the
      appointment of a receiver, liquidator, conservator, trustee or similar official
      in respect of Seller or Guarantor or any of their assets. The amount of
      consideration being received by Seller upon the sale of the Purchased Loans
      to
      Buyers constitutes reasonably equivalent value and fair consideration for such
      Purchased Loans. Seller is not transferring any Purchased Loans with any intent
      to hinder, delay or defraud any of its creditors. The amount of consideration
      being received by Guarantor upon the sale of the Purchased Loans to Seller,
      respectively, constitutes reasonably equivalent value and fair consideration
      for
      such Purchased Loans. Guarantor is not transferring any Purchased Loans with
      any
      intent to hinder, delay or defraud any of its creditors.

    

    (l) Investment
      Company Act Compliance.
      Seller
      is not required to be registered as an “investment company” as defined under the
      Investment Company Act nor as an entity under the control of an “investment
      company” as defined under the Investment Company Act.

    

    (m) Taxes.
      Each of
      Seller and Guarantor has filed all federal and state tax returns which are
      required to be filed and paid all taxes, including any assessments received
      by
      it, to the extent that such taxes have become due (other than for taxes that
      are
      being contested in good faith or for which it has established adequate
      reserves). Any taxes, fees and other governmental charges payable by Seller
      or
      Guarantor in connection with a Transaction and the execution and delivery of
      the
      Program Documents have been paid.

    

    (n) Additional
      Representations.
      With
      respect to each Loan to be sold hereunder by Seller to Buyers, Seller and
      Guarantor, jointly and severally, hereby make all of the applicable
      representations and warranties set forth in Exhibit B as of the date the related
      Mortgage File, or Wet Funding Package, as applicable, is delivered to the
      Custodian with respect to the Loans and continuously while such Loan is subject
      to a Transaction. Further, as of each Purchase Date, Seller and Guarantor shall
      be deemed to have represented and warranted in like manner that neither Seller
      nor Guarantor have any knowledge that any such representation or warranty may
      have ceased to be true in a material respect as of such date, except as
      otherwise stated in a Transaction Notice, any such exception to identify the
      applicable representation or warranty and specify in reasonable detail the
      related knowledge of Seller or Guarantor. In addition, the Guarantor agrees
      to
      make the representations and warranties set forth in Exhibit B to this Agreement
      as of the “cut-off date” of the securitization or whole loan sale of the related
      Loans by Seller or the related Buyer, as applicable; provided,
      however,
      that to
      the extent that the Guarantor has at the time of such securitization or whole
      loan sale actual knowledge of any facts or circumstances that would render
      any
      of such representations and warranties materially false, the Guarantor shall
      have no obligation to make such materially false representation and
      warranty.

    

    (o) No
      Broker.
      Neither
      Seller nor Guarantor has dealt with any broker, investment banker, agent, or
      other person, except for Buyers, who may be entitled to any commission or
      compensation in connection with the sale of Purchased Loans pursuant to this
      Agreement; provided, that if Seller or Guarantor has dealt with any broker,
      investment banker, agent, or other person, except for Buyers, who may be
      entitled to any commission or compensation in connection with the sale of
      Purchased Loans pursuant to this Agreement, such commission or compensation
      shall have been paid in full by Seller or Guarantor, as applicable.

    

    
      
        
        

      

      
        -27-

        
          

        

      

      
        
        

      

    

    (p) Corporate
      Separateness.

    

    (i) The
      capital of Seller and Guarantor is adequate for the respective business and
      undertakings of Seller and Guarantor.

    

    (ii) Other
      than as provided in this Agreement and the other Program Documents, Seller
      is
      not engaged in any business transactions with Guarantor or any of its Affiliates
      other than transactions in the ordinary course of its business on an
“arms-length” basis.

    

    (iii) The
      funds
      and assets of Seller are not and will not be, commingled with the funds of
      any
      other Person.

    

    The
      representations and warranties set forth in this Agreement shall survive
      transfer of the Purchased Loans to Buyers and shall continue for so long as
      the
      Purchased Loans are subject to this Agreement.

     

    14. COVENANTS
      OF SELLER AND GUARANTOR

    

    Each
      of
      Seller and Guarantor, as applicable, hereby covenants with Buyers as
      follows:

    

    (a) Defense
      of Title.
      Each of
      Seller and Guarantor warrants and will defend the right, title and interest
      of
      Buyers in and to all Collateral against all adverse claims and
      demands.

    

    (b) No
      Amendment or Compromise.
      Without
      Buyers’ prior written consent, none of Seller, Guarantor or those acting on
      Seller’s or Guarantor’s behalf shall amend or modify, or waive any term or
      condition of, or settle or compromise any claim in respect of, any item of
      the
      Purchased Loans, any related rights or any of the Program Documents, provided
      that any such party may amend or modify a Loan if such amendment or modification
      does not affect the amount or timing of any payment of principal or interest,
      extend its scheduled maturity date, modify its interest rate, or constitute
      a
      cancellation or discharge of its outstanding principal balance and does not
      materially and adversely affect the security afforded by the real property,
      furnishings, fixtures, or equipment securing the Loan.

    

    (c) No
      Assignment.
      Except
      as permitted herein, none of Seller, Guarantor, or any servicer shall sell,
      assign, transfer or otherwise dispose of, or grant any option with respect
      to,
      or pledge, hypothecate or grant a security interest in or lien on or otherwise
      encumber (except pursuant to the Program Documents), any of the Purchased Loans
      or any interest therein, provided
      that
      this Section 14(c) shall not prevent any of the following: any contribution,
      sale, assignment, transfer or conveyance of Purchased Loans in accordance with
      the Program Documents; servicing arrangement between the Servicer and Seller
      or
      its Affiliates; and any forward purchase commitment or other type of take out
      commitment for the Purchased Loans.

    

    (d) Servicing
      of Loans.
      Seller
      and Guarantor shall cause Servicer to service, or cause to be serviced, all
      Loans that are part of the Purchased Loans in accordance with Accepted Servicing
      Practices, pending any delivery of such servicing to Buyers pursuant to Section
      14(r), employing
      at least the same procedures and exercising the same care that Servicer
      customarily employs in servicing Loans for its own account. Seller shall notify
      all Servicers and subservicers of Buyers’ interests hereunder and Seller shall
      notify Buyers of the name and address of all Servicers and subservicers of
      Purchased Loans. Buyers shall have the right to approve each such Servicer
      or
      subservicer and the form of all Servicing Agreements or servicing side letter
      agreements with respect thereto. Seller and Guarantor shall cause the Servicer
      to hold or cause to be held all funds collected with respect to such Loans
      in a
      principal and interest account and an escrow account and shall apply the same
      for the purposes for which such funds were collected and shall remit all amounts
      with respect to principal and interest into the Collection Account in accordance
      with the provisions of the Servicing Side Letter. Upon Buyers’ request, Seller
      shall provide reasonably promptly to Buyers a letter addressed to and agreed
      to
      each servicer of Loans, in form and substance reasonably satisfactory to Buyers,
      advising such servicer of such matters as Buyers may reasonably request.
 If Seller should discover that, for any reason whatsoever, Seller or any
      entity responsible to Seller or Guarantor by contract for managing or servicing
      any such Loan has failed to perform fully Seller’s or Guarantor’s obligations
      under the Program Documents with respect to the servicing of the Purchased
      Loans
      or any of the obligations of such entities with respect to the Purchased Loans,
      Seller shall promptly notify Buyers.

    

    
      
        
        

      

      
        -28-

        
          

        

      

      
        
        

      

    

    (e) Preservation
      of Collateral: Collateral Value.
      Each of
      Seller and Guarantor shall do all things necessary to preserve the Collateral
      so
      that it remains subject to a first priority perfected security interest
      hereunder. Without limiting the foregoing, Seller and Guarantor will comply
      with
      all applicable laws, rules, regulations and other laws of any Governmental
      Authority applicable to Seller or Guarantor relating to the Collateral and
      cause
      the Collateral to comply with all applicable laws, rules, regulations and other
      laws of any such Governmental Authority. Neither Seller nor Guarantor will
      allow
      any default to occur for which Seller or Guarantor is responsible under any
      Collateral or any Program Documents and Seller and Guarantor shall fully perform
      or cause to be performed when due all of its obligations under any Collateral
      or
      the Program Documents.

    

    (f) Maintenance
      of Papers, Records and Files.
      Seller
      and Guarantor shall acquire, and Seller
      or
      Guarantor shall
      build, maintain and have available, a complete file in accordance with lending
      industry custom and practice for each Purchased Loan. Seller or
      Guarantor will
      maintain all such Records not in the possession of Custodian in good and
      complete condition in accordance with industry practices and preserve them
      against loss.

    

    (i) Seller
      and Guarantor shall
      collect and maintain or cause to be collected and maintained all Records
      relating to the Purchased Loans in accordance with industry custom and practice,
      including those maintained pursuant to the preceding subsection, and all such
      Records shall be in Custodian’s possession unless Buyers otherwise approve.
      Neither Seller nor Guarantor will
      cause or authorize any such papers, records or files that are an original or
      an
      only copy to leave Custodian’s possession, except for individual items removed
      in connection with servicing a specific Loan, in which event Seller or
      Guarantor will
      obtain or cause to be obtained a receipt from the Custodian for any such paper,
      record or file.

    

    (ii) For
      so
      long as Buyers have an interest in or lien on any Purchased Loan, Seller and
      Guarantor will
      hold
      or cause to be held all related Records in trust for Buyers. Seller or Guarantor
      shall notify, or cause to be notified, every other party holding any such
      Records of the interests and liens granted hereby.

    

    (iii) Upon
      reasonable advance notice from Custodian or Buyers, Seller and
      Guarantor shall
      (x)
      make any and all such Records available to Custodian or Buyers to examine any
      such Records, either by its own officers or employees, or by agents or
      contractors, or both, and make copies of all or any portion thereof, (y) permit
      Buyers or their authorized agents to discuss the affairs, finances and accounts
      of Seller or Guarantor with
      its
      respective chief operating officer and chief financial officer and to discuss
      the affairs, finances and accounts of Seller or Guarantor with its independent
      certified public accountants.

    

    
      
        
        

      

      
        -29-

        
          

        

      

      
        
        

      

    

    (g) Financial
      Statements and Other Information; Financial Covenants.

    

    (i) Guarantor
      shall keep or cause to be kept in reasonable detail books and records of Seller
      and Guarantor setting forth an account of their respective assets and business
      and shall clearly reflect therein the transfer of Purchased Loans to Buyers.
      Seller and Guarantor shall furnish or cause to be furnished to Buyers the
      following:

    

    (A) Financial
      Statements.
      (x) As
      soon as available and in any event within ninety (90) days after the end of
      each
      fiscal year of Guarantor, the Guarantor’s consolidated, audited balance sheets
      as of the end of each such fiscal year, and the Guarantor’s consolidated,
      audited financial statements of income and changes in equity and audited
      statement of cash flows, each for such fiscal year, (y) as soon as available
      and
      in any event within forty-five (45) days after the end of each of the first
      three quarters of each fiscal year of Guarantor, the Guarantor’s consolidated,
      unaudited balance sheets as of the end of each quarter, and the Guarantor’s
      unaudited financial statements of income and changes in equity and unaudited
      statement of cash flows, each for the portion of the fiscal year then ended,
      and
      (z) within thirty (30) days after the end of each month, monthly consolidated
      and unaudited financial statements (excluding cash flow statements) and balance
      sheets as provided in clause (y), all of which shall have been prepared in
      accordance with GAAP. Seller and Guarantor shall furnish or cause to be
      furnished to Buyers any other financial information regarding Guarantor and/or
      Seller reasonably requested by Buyers.

    

    (B) Loan
      Data.
      Monthly
      reports in form and scope satisfactory to Buyers, setting forth data regarding
      the performance of the Purchased Loans for the immediately preceding month,
      and
      such other information as Buyers may reasonably request, including, without
      limitation, all collections, delinquencies, losses and recoveries related to
      the
      Purchased Loans, any other information regarding the Purchased Loans requested
      by Buyers and the performance of any loans serviced by or on behalf of Servicer
      and any other financial information regarding Seller reasonably requested by
      Buyers.

    

    (C) Monthly
      Servicing Diskettes.
      On or
      before the tenth (10th)
      day of
      each calendar month (or if such day is not a Business Day, the immediately
      following Business Day), or any other time as Buyers request, a computer tape
      or
      a diskette (or any other Electronic Transmission acceptable to Buyers) in a
      format acceptable to Buyers containing such information with respect to the
      Purchased Loans as Buyers may reasonably request.

    

    (D) Other
      Information.
      Upon
      the request of Buyers, such other information or reports as Buyers may from
      time
      to time reasonably request.

     

    (ii) Guarantor
      shall comply with the following financial covenants: (A) the Adjusted Tangible
      Net Worth of the Guarantor shall at all times exceed $90,000,000; (B) the ratio
      of the Guarantor’s Total Indebtedness to Adjusted Tangible Net Worth shall at no
      time exceed 15:1; (C) the Guarantor shall at all times maintain Liquidity of
      at
      least the greater of $15,000,000 and one percent (1%) of the unpaid principal
      balance of all assets of Guarantor subject to a repurchase or secured credit
      arrangement to which the Guarantor is a party; and (D) the Guarantor’s net
      income before taxes, for any period of two consecutive fiscal quarters
      (commencing with the period ending September 30, 2005), shall not be less than
      $1.00.

    

    
      
        
        

      

      
        -30-

        
          

        

      

      
        
        

      

    

    (iii) Certifications.
      Seller
      shall execute and deliver a monthly certification substantially in the form
      of
Exhibit
      A-1
      attached
      hereto within thirty (30) days after the end of each calendar month and
      Guarantor shall execute and deliver a quarterly certification substantially
      in
      the form of Exhibit
      A-2
      attached
      hereto within forty-five (45) days after the end of each fiscal
      quarter.

    

    (h) Notice
      of Material Events.
      Each of
      Seller and Guarantor shall promptly inform Buyers in writing of any of the
      following:

    

    (i) any
      Default, Event of Default or default or breach by Seller or Guarantor of any
      material obligation
      under any Program Document, or the occurrence or existence of any event or
      circumstance that Seller or Guarantor reasonably expects will with the passage
      of time become a Default, Event of Default or such a default or breach by Seller
      or Guarantor;

    

    (ii) any
      material change in the insurance coverage required of Seller or Guarantor or
      any
      other Person pursuant to any Program Document, with copy of evidence of same
      attached;

    

    (iii) any
      material dispute, licensing issue, litigation, investigation, proceeding or
      suspension between Seller or Guarantor, on the one hand, and any Governmental
      Authority or any other Person;

    

    (iv) any
      material adverse change in accounting policies or financial reporting practices
      of Seller or Guarantor;

    

    (v) the
      occurrence of any material employment dispute or licensing issue and a
      description of the strategy for resolving it; and

    

    (vi) any
      event, circumstance or condition that has resulted, or has a reasonable
      likelihood of resulting in either a Material Adverse Change or a Material
      Adverse Effect with respect to Seller or Guarantor.

    

    (i) Maintenance
      of Licenses.
      Each of
      Seller and Guarantor shall (i) maintain all licenses, permits or other approvals
      necessary for each of Seller and Guarantor to conduct its business and to
      perform its obligations under the Program Documents, (ii) remain in good
      standing under the laws of each state in which it conducts business or any
      Mortgage Property is located, and (iii) shall conduct its business strictly
      in
      accordance with applicable law.

    

    (j) Taxes,
      Etc.
      The
      Seller shall pay and discharge or cause to be paid and discharged, when due
      all
      taxes, assessments and governmental charges or levies imposed upon them or
      upon
      their income and profits or upon any of its property, real, personal or mixed
      (including without limitation, the Purchased Loans) or upon any part thereof,
      as
      well as any other lawful claims which, if unpaid, might become a Lien upon
      such
      properties or any part thereof, except for any such taxes, assessments and
      governmental charges, levies or claims as are appropriately contested in good
      faith by appropriate proceedings diligently conducted and with respect to which
      adequate reserves are provided. The Seller shall file on a timely basis all
      federal, and material state and local tax and information returns, reports
      and
      any other information statements or schedules required to be filed by or in
      respect of it.

    

    (k) Nature
      of Business.
      Neither
      Seller nor Guarantor shall make any material change in the nature of its
      business as carried on at the date hereof.

    

    
      
        
        

      

      
        -31-

        
          

        

      

      
        
        

      

    

    (l) Limitation
      on Distributions.
      Guarantor shall have the right to pay dividends or
      distributions
      at all
      times in order to maintain Guarantor’s REIT Status. Guarantor shall have the
      right to make further dividends or distributions so long as Guarantor remains
      in
      compliance with the financial covenants set forth in Section 14(g)(ii)
      immediately following such dividend or distribution. Notwithstanding anything
      to
      the contrary herein,
      if a
      Default has occurred and is occurring, neither Seller nor Guarantor shall pay
      any dividends or distributions with respect to any capital stock or other equity
      interests in Seller or Guarantor (other than dividends or distributions
      necessary to maintain Guarantor’s REIT Status), whether now or hereafter
      outstanding, or make any other distribution in respect thereof, either directly
      or indirectly, whether in cash or property or in obligations of Seller or
      Guarantor.

    

    (m) Use
      of
      Custodian.
      Without
      the prior written consent of Buyers, Seller and Guarantor shall use no third
      party custodian as document custodian other than the Custodian with respect
      to
      third party purchasers, prospective third party purchasers, lenders and
      prospective third party lenders with respect to loans of the same type as the
      Purchased Loans.

    

    (n) Merger
      of Guarantor.
      Guarantor shall not at any time, directly or indirectly, (i) liquidate or
      dissolve or enter into any consolidation or merger or be subject to a Change
      in
      Control without Buyers’ prior consent; (ii) form or enter into any partnership,
      joint venture, syndicate or other combination which would have a Material
      Adverse Effect with respect to Guarantor; or (iii) make any Material Adverse
      Change with respect to Guarantor or Guarantor’s Subsidiaries.

    

    (o) Insurance.
      Seller
      will, and Seller and Guarantor shall cause NYMC and the Servicer to obtain
      and
      maintain insurance with responsible companies in such amounts and against such
      risks as are customarily carried by business entities engaged in similar
      businesses similarly situated, and will furnish Buyers on request full
      information as to all such insurance, and provide within fifteen (15) days
      after
      receipt of such request the certificates or other documents evidencing renewal
      of each such policy. Seller and NYMC shall continue to maintain coverage, for
      itself and its subsidiaries, that encompasses employee dishonesty, forgery
      or
      alteration, theft, disappearance and destruction, robbery and safe burglary,
      property (other than money and securities), and computer fraud in an aggregate
      amount of at least $3,500,000.

    

    (p) Affiliate
      Transaction.
      Neither
      Seller nor Guarantor will at any time, directly or indirectly, sell, lease
      or
      otherwise transfer any property or assets to, or otherwise acquire any property
      or assets from, or otherwise engage in any transactions with, any of their
      Affiliates unless the terms thereof are no less favorable to Seller or
      Guarantor, as applicable, than those that could be obtained at the time of
      such
      transaction in an arm’s length transaction with a Person who is not such an
      Affiliate.

    

    (q) Change
      of Fiscal Year.
      Neither
      Seller nor Guarantor will at any time, directly or indirectly, except upon
      ninety (90) days’ prior written notice to Buyers, change the date on which
      Seller’s or Guarantor’s fiscal year begins from Seller’s or Guarantor’s current
      fiscal year beginning date.

    

    (r) Delivery
      of Servicing Rights.
      With
      respect to the Servicing Rights of each Loan, Seller shall deliver such
      Servicing Rights to the designee of Buyers, within 30 days of a Purchase Date,
      unless otherwise stated in writing by Buyers; provided that
      on each
      Repurchase Date that is subject to a new Transaction, such delivery requirement
      is deemed restated for such new Transaction (and the immediately preceding
      delivery requirement is deemed to be rescinded) in the absence of directions
      to
      the contrary from Buyers, and a new 30 day period is deemed to commence as
      of
      such Repurchase Date. Seller’s and Servicer’s transfer of the Servicing Rights
      under this Section shall be in accordance with customary standards in the
      industry.

    

    (s) Acquisition
      Guidelines or Underwriting Guidelines.
      No
      material modifications shall be made to the Acquisition Guidelines (referred
      to
      in (i) of the definition thereof) or the Underwriting Guidelines (referred
      to in
      (i) of the definition thereof) that will impact either the Buyers or the
      Purchased Loans without the prior consent of Buyers (such consent not to be
      unreasonably withheld). Seller agrees to deliver to Buyers copies of the
      Acquisition Guidelines (referred to in (i) of the definition thereof) or
      Underwriting Guidelines (referred to in (i) of the definition thereof) in the
      event that any changes are made thereto following the Closing Date.

    

    
      
        
        

      

      
        -32-

        
          

        

      

      
        
        

      

    

    (t) No
      Other Indebtedness.
      Without
      the prior written consent of the Buyers, the Seller shall not incur any
      Indebtedness or guaranty the Indebtedness of any other Person other than any
      Indebtedness deemed incurred under the Program Documents.

    

    (u) MERS.
      The
      Seller will and will cause the Originator to comply in all material respects
      with the rules and procedures of MERS in connection with the servicing of the
      MERS Designated Mortgage Loans for as long as such Purchased Loans are
      registered with MERS.

    

    (v) Non
      Usage Fee.
      The
      Seller agrees to pay to the Buyers on each Repurchase Date the accrued and
      unpaid Non Usage Fees.

    

    (w) Establishment
      of Collection Account.
      Prior
      to the initial Purchase Date, the Seller shall establish, for the benefit of
      the
      Buyers, a collection account in the Buyers’ name for the sole and exclusive
      benefit of the Buyers. The Seller shall segregate all amounts remitted by
      Servicer with respect to the Purchased Loans, to be held in trust for the
      benefit of the Buyers, and shall remit such collections in accordance with
      the
      Buyers’ written instructions. No amounts deposited into such account shall be
      removed without the Buyers’ prior written consent. The Seller shall follow the
      instructions of Buyers with respect to the Purchased Loans and deliver to Buyers
      any information with respect to the Purchased Loans reasonably requested by
      Buyers. Each of the Guarantor, Originator and Seller shall, and shall cause
      Servicer to, deposit or credit to the Collection Account all items to be
      deposited or credited thereto irrespective of any right of setoff or
      counterclaim arising in favor of it (or any third party claiming through it)
      under any other agreement or arrangement.

    

    (x) Corporate
      Separateness.
      The
      Seller shall at all times comply with the separateness provisions set forth
      in
      its organizational documents, including but not limited to Articles V and X
      of
      its Certificate of Incorporation.

    

    (y) Organizational
      Documents.
      Seller
      shall not amend, modify or supplement any of its organizational documents
      without the prior written consent of Buyers. The Seller’s organizational
      documents shall at all times require at least one (1) independent director
      to
      serve on the board of directors of Seller.

    

    (z) REIT
      Status.
      The
      Guarantor will take all steps necessary to maintain its status as a
      REIT.

    

    (aa) Cooperative
      Loans.
      With
      respect to each Cooperative Loan, in the event that new, replacement, substitute
      or additional Stock Certificates are issued with respect to existing Cooperative
      Shares, the related Seller immediately shall deliver to the Custodian the new
      Stock Certificates, together with the related Stock Powers in blank. Such new
      Stock Certificates shall be subject to the related Pledge Instruments and shall
      be subject to all of the terms, covenants and conditions of this
      Agreement.

     

    15. REPURCHASE
      DATE PAYMENTS/COLLECTIONS

    

    On
      each
      Repurchase Date, Seller shall remit or shall cause to be remitted to the related
      Buyer the Repurchase Price together with any other Obligations then due and
      payable.

     

    
      
        
        

      

      
        -33-

        
          

        

      

      
        
        

      

    

    16. REPURCHASE
      OF PURCHASED LOANS; CHANGE OF LAW

    

    (a) Upon
      discovery by Seller or Guarantor of a breach of any of the representations
      and
      warranties set forth on Exhibit
      B
      to this
      Agreement, Seller or Guarantor shall give prompt written notice thereof to
      Buyers. Upon any such discovery by Buyers, Buyers will notify Seller. It is
      understood and agreed that the representations and warranties set forth in
      Exhibit
      B
      to this
      Agreement with respect to the Purchased Loans shall survive delivery of the
      respective Mortgage Files to the Custodian with respect to the Purchased Loans
      and shall inure to the benefit of Buyers. The fact that Buyers have conducted
      or
      have failed to conduct any partial or complete due diligence investigation
      in
      connection with their purchase of any Purchased Loan shall not affect Buyers’
right to demand repurchase as provided under this Agreement. Seller shall,
      within five (5) Business Days of the earlier of Seller’s or Guarantor’s
      discovery or either Seller or Guarantor receiving notice with respect to any
      Purchased Loan of (i) any breach of a representation or warranty contained
      in
Exhibit
      B
      of this
      Agreement or (ii) any failure to deliver any of the items required to be
      delivered as part of the Mortgage File within the time period required for
      delivery pursuant to the Custodial Agreement, promptly cure such breach or
      delivery failure in all material respects. If within five (5) Business Days
      after the earlier of Seller’s or Guarantor’s discovery of such breach or
      delivery failure or Seller or Guarantor receiving notice thereof that such
      breach or delivery failure has not been remedied by Seller, Seller shall
      promptly upon receipt of written instructions from Buyers, at Buyers’ option,
      either (i) repurchase such Purchased Loan at a purchase price equal to the
      Repurchase Price with respect to such Purchased Loan by wire transfer to the
      account designated by Buyers, or (ii) transfer comparable Substitute Loans
      to
      Buyers, as provided in Section 17 hereof.

    

    (b) If
      Buyers
      determine that the introduction of, any change in, or the interpretation or
      administration of, any requirement of law has made it unlawful or commercially
      impracticable to engage in any Transactions with the applicable Pricing Rate
      based on LIBOR, then Seller (i) shall, upon its receipt of notice of such fact
      and demand from Buyers (with a copy of such notice to Custodian), repurchase
      the
      Purchased Loans subject to the Transaction on the next succeeding Business
      Day
      and, at Seller’s election, concurrently enter into a new Transaction with Buyers
      with a Pricing Rate based on the Prime Rate plus the margin set forth in the
      Pricing Side Letter as part of the Pricing Rate and (ii) may elect, by giving
      notice to Buyers and Custodian, that all new Transactions shall have Pricing
      Rates based on the Prime Rate plus such margin.

    

    (c) If
      Buyers
      determines in their sole discretion that any Change in Law or any change in
      accounting rules regarding capital requirements has or would have the effect
      of
      reducing the rate of return on Buyers’ capital or on the capital of any
      Affiliate of Buyers as a consequence of such Change in Law on this Agreement,
      then from time to time Seller will compensate Buyers or Buyers’ Affiliate, as
      applicable, for such reduced rate of return suffered as a consequence of such
      Change in Law on terms similar to those imposed by Buyers on their other
      similarly affected customers. Buyers shall provide Seller with prompt notice
      as
      to any Change in Law. Notwithstanding any other provisions in this Agreement,
      in
      the event of any such Change in Law, Seller will have the right to terminate
      all
      Transactions then outstanding as of a date selected by Seller, which date shall
      be prior to the then applicable Repurchase Date and which date shall thereafter
      for all purposes hereof be deemed to be the Repurchase Date.

     

    17. SUBSTITUTION

    

    Seller
      may, subject to agreement with and acceptance by Buyers upon one (1) Business
      Day’s notice, substitute other assets which are substantially the same as the
      Purchased Loans (the “Substitute
      Loans”)
      for
      any Purchased Loans. Such substitution shall be made by transfer to Buyers
      of
      such other Substitute Loans and transfer to Seller of such Purchased Loans
      (the
“Reacquired
      Loans”)
      along
      with the other information to be provided with respect to the applicable
      Purchased Loan as described in Section 4. After substitution, the Substitute
      Loans shall be deemed to be Purchased Loans, the Reacquired Loans shall no
      longer be deemed Purchased Loans, Buyers shall be deemed to have terminated
      any
      security interest that Buyers may have in the Reacquired Loans and any
      Collateral solely related to such Reacquired Loans to Seller unless such
      termination and released would give rise to or perpetuate a Margin Deficit.
      Concurrently with any termination and release described in this Section 17,
      Buyers shall execute and deliver to Seller upon request and Buyers hereby
      authorize Seller to file and record such documents as Seller may reasonably
      deem
      necessary or advisable in order to evidence such termination and
      release.

     

    
      
        
        

      

      
        -34-

        
          

        

      

      
        
        

      

    

    18. REPURCHASE
      TRANSACTIONS

    

    Buyers
      may, in their sole election, engage in repurchase transactions with the
      Purchased Loans or otherwise pledge, hypothecate, assign, transfer or otherwise
      convey the Purchased Loans with a counterparty of Buyers’ choice, in all cases
      subject to Buyers’ obligation to reconvey the Purchased Loans (and not
      substitutes therefor) on the Repurchase Date. In the event Buyers engage in
      a
      repurchase transaction with any of the Purchased Loans or otherwise pledges
      or
      hypothecates any of the Purchased Loans, Buyers shall have the right to assign
      to Buyers’ counterparty any of the applicable representations or warranties in
      Exhibit B to this Agreement and the remedies for breach thereof, as they relate
      to the Purchased Loans that are subject to such repurchase
      transaction.

     

    19. EVENTS
      OF DEFAULT

    

    With
      respect to any Transactions covered by or related to this Agreement, the
      occurrence of any of the following events shall constitute an “Event
      of Default”:

    

    (a) Seller
      fails to transfer the Purchased Loans to the related Buyer on the applicable
      Purchase Date (provided such Buyer has tendered the related Purchase
      Price);

    

    (b) Seller
      either fails to repurchase the Purchased Loans on the applicable Repurchase
      Date
      or fails to perform its obligations under Section 6;

    

    (c) Either
      Seller or Guarantor shall fail to perform, observe or comply with any other
      material term, covenant or agreement contained in the Program Documents (other
      than Exhibit
      B
      to this
      Agreement and the other “Events of Default” set forth in this Section 19) and
      such failure is not cured within the time period expressly provided or, if
      no
      such cure period is provided, within five (5) Business Days (or one (1) Business
      Day with respect to a default on any payment obligation of Seller or Guarantor
      under the Program Documents not otherwise addressed in this Section 19 or one
      (1) Business Day if the Purchased Loans exceed any applicable sublimits) of
      the
      earlier of (i) such party’s receipt of written notice from Buyers or Custodian
      of such breach or (ii) the date on which such party obtains notice or knowledge
      of the facts giving rise to such breach;

    

    (d) Any
      representation or warranty made by Seller or Guarantor (or any of Seller’s or
      Guarantor’s officers) in the Program Documents or in any other document
      delivered in connection therewith shall have been incorrect or untrue in any
      material respect when made or repeated or deemed to have been made or repeated
      (other than the representations or warranties in Exhibit B which shall be
      considered solely for the purpose of determining whether the related Purchased
      Loan is an Eligible Loan, unless Seller shall have made any such representations
      or warranties with the knowledge that they were materially false or misleading
      at the time made or repeated or deemed to have been made or
      repeated);

    

    (e) Guarantor
      or any of Guarantor’s Subsidiaries shall
      default under or shall otherwise fail to perform as requested under, or shall
      otherwise breach the material terms of, in each case beyond any applicable
      cure
      period, any instrument, agreement or contract relating to Indebtedness in excess
      of Two Million Dollars ($2,000,000) and such default, failure or breach shall
      entitle any counterparty to declare such Indebtedness to be due and payable
      prior to the maturity thereof;

    

    
      
        
        

      

      
        -35-

        
          

        

      

      
        
        

      

    

    (f) A
      custodian, receiver, conservator, liquidator, trustee, sequestrator or similar
      official for Seller, Guarantor or any of Seller’s or Guarantor’s Subsidiaries,
      or of any of Seller’s, Guarantor’s or their respective Property (as a debtor or
      creditor protection procedure), is appointed or takes possession of such
      Property; or Seller, Guarantor or any of Seller’s or Guarantor’s Subsidiaries
      generally fails to pay Seller’s, Guarantor’s or Seller’s or Guarantor’s
      Subsidiaries debts as they become due; or Seller, Guarantor or any of Seller’s
      or Guarantor’s Subsidiaries is adjudicated bankrupt or insolvent; or an order
      for relief is entered under the Federal Bankruptcy Code, or any successor or
      similar applicable statute, or any administrative insolvency scheme, against
      Seller, Guarantor or any of Seller’s or Guarantor’s Subsidiaries; or any of
      Seller’s, Guarantor’s or Seller’s or Guarantor’s Subsidiaries’ Property is
      sequestered by court or administrative order; or a petition is filed against
      Seller, Guarantor or any of Seller’s or Guarantor’s Subsidiaries under any
      bankruptcy, reorganization, arrangement, insolvency, readjustment of debt,
      dissolution, moratorium, delinquency or liquidation law of any jurisdiction,
      whether now or subsequently in effect;

    

    (g) Seller,
      Guarantor or any of Seller’s or Guarantor’s Subsidiaries files a voluntary
      petition in bankruptcy, seeks relief under any provision of any bankruptcy,
      reorganization, moratorium, delinquency, arrangement, insolvency, readjustment
      of debt, dissolution or liquidation law of any jurisdiction whether now or
      subsequently in effect; or consents to the filing of any petition against it
      under any such law; or consents to the appointment of or taking possession
      by a
      custodian, receiver, conservator, trustee, liquidator, sequestrator or similar
      official for Seller, Guarantor or any of Seller’s or Guarantor’s Subsidiaries,
      or of all or any part of Seller’s, Guarantor’s or Seller’s or Guarantor’s
      Subsidiaries Property; or makes an assignment for the benefit of Seller,
      Guarantor or Seller’s or Guarantor’s Subsidiaries’ creditors;

    

    (h) Any
      final
      judgment or order for the payment of money in excess of Ten Thousand Dollars
      ($10,000) with respect to the Seller, or Two Million Dollars ($2,000,000) with
      respect to the Guarantor in the aggregate (to the extent that it is, in the
      reasonable determination of Buyers, uninsured and provided that any insurance
      or
      other credit posted in connection with an appeal shall not be deemed insurance
      for these purposes) shall be rendered against Seller, Guarantor or any of
      Seller’s or Guarantor’s Subsidiaries by one or more courts, administrative
      tribunals or other bodies having jurisdiction over them and the same shall
      not
      be discharged (or provisions shall not be made for such discharge) satisfied,
      or
      bonded, or a stay of execution thereof shall not be procured, within thirty
      (30)
      days from the date of entry thereof and Seller, Guarantor or any of Seller’s or
      Guarantor’s Subsidiaries, as applicable, shall not, within said period of thirty
      (30) days, or such longer period during which execution of the same shall have
      been stayed or bonded, appeal therefrom and cause the execution thereof to
      be
      stayed during such appeal;

    

    (i) Any
      Governmental Authority or any person, agency or entity acting or purporting
      to
      act under governmental authority shall have taken any action to condemn, seize
      or appropriate, or to assume custody or control of, all or any substantial
      part
      of the Property of Seller, Guarantor or any of Seller’s or Guarantor’s
      Subsidiaries, or shall have taken any action to displace the management of
      Seller, Guarantor or any of Seller’s or Guarantor’s Subsidiaries or
      to
      curtail its authority in the conduct of the business of Seller, Guarantor or
      any
      of Seller’s or Guarantor’s Subsidiaries, or takes any action in the nature of
      enforcement to remove, limit or restrict the approval of Seller, Guarantor
      or
      any of Seller’s or Guarantor’s Subsidiaries as an issuer, buyer or a
      seller/servicer of Loans or securities backed thereby;

    

    
      
        
        

      

      
        -36-

        
          

        

      

      
        
        

      

    

    (j) Any
      Material Adverse Effect shall have occurred with respect to Seller, Guarantor
      or
      any of Seller’s or Guarantor’s Subsidiaries;

    

    (k) Either
      (i) Seller or Guarantor shall admit in writing its inability to, or intention
      not to, perform any of Seller’s or Guarantor’s respective material Obligations,
      or (ii) Buyers shall have determined in good faith that either of Seller or
      Guarantor is unable to meet its commitments;

    

    (l) Except
      as
      expressly permitted in this Agreement, Seller or Guarantor dissolves, merges
      or
      consolidates with another entity, or sells, transfers, or otherwise disposes
      of
      a material portion of Seller’s or Guarantor’s (as applicable) business or assets
      unless Buyers’ written consent is given;

    

    (m) This
      Agreement shall for any reason cease to create a valid, first priority security
      interest or ownership interest upon transfer in any material portion of the
      Purchased Loans or Collateral purported to be covered hereby;

    

    (n) Either
      Seller’s or Guarantor’s audited annual financial statements or the notes thereto
      or other opinions or conclusions stated therein shall be qualified or limited
      by
      reference to the status of Seller or Guarantor as a “going concern” or a
      reference of similar import or shall indicate that Seller or Guarantor has
      a
      negative net worth or is insolvent;

    

    (o) A
      Change
      in Control of Guarantor, Servicer or Seller or a material change in the
      management of the Guarantor or Seller shall have occurred which has not been
      approved by Buyers, including the resignation, removal or other substantial
      change in the management responsibilities of David Akre, Steven Schnall or
      Michael Wirth;

    

    (p) Buyers
      shall reasonably request, specifying the reasons for such request, reasonable
      information, and/or written responses to such requests, regarding the financial
      well-being of Seller or Guarantor and such reasonable information and/or
      responses shall not have been provided within five (5) Business Days of such
      request;

    

    (q) If
      Seller
      or Guarantor admits its inability or is manifestly unable to perform fully
      when
      such performance will become due any obligation on Seller’s or Guarantor’s part
      to any broker, dealer, bank or other financial institution in respect of a
      transaction involving securities, commodities or other instruments not then
      due
      (regardless of whether Buyers have any right, title or interest
      therein);

    

    (r) Guarantor
      shall fail to satisfy any of the financial covenants set forth in Section
      14(g)(ii) of this Agreement;

    

    (s) If
      the
      Seller, Guarantor or any of their Affiliates shall default in respect of any
      transaction with Buyers or any of their Affiliates and such breach is not
      remedied in one (1) Business Day;

    

    (t) Any
      material amendment is made to the Underwriting Guidelines (referred to in (i)
      of
      the definition thereof) or Acquisition Guidelines (referred to in (i) of the
      definition thereof) that shall not have been previously approved by
      Buyer;

    

    (u) An
      event
      of default (as defined in the Servicing Agreement) on the part of the Servicer
      under the Servicing Agreement shall have occurred and shall be continuing (a
      “Servicer
      Event of Default”)
      but
      only if and when (1) such Servicer Event of Default shall have a material
      adverse effect upon the collectibility, enforceability or payment performance
      of
      the Purchased Loans, and (2) Seller has failed to either repurchase the affected
      Purchased Loans at the Repurchase Price or transfer servicing of the affected
      Purchased Loans to a successor servicer reasonably acceptable to the Buyers
      within sixty (60) days of such Servicer Event of Default;

    

    
      
        
        

      

      
        -37-

        
          

        

      

      
        
        

      

    

    (v) The
      failure of such Guarantor to continue to be (i) qualified as a REIT as defined
      in Section 856 of the Code and (ii) entitled to a dividend paid deduction under
      Section 857 of the Code with respect to dividends paid by it with respect to
      each taxable year for which it claims a deduction on its Form 1120 - REIT filed
      with the United States Internal Revenue Service for such year, or the entering
      into by a Guarantor of any material “prohibited transactions” as defined in
      Sections 857(b) and 856(c) of the Code; or

    

    (w) After
      such time as a Guarantor has elected to be treated as a REIT, the failure of
      such Guarantor to satisfy any of the following asset or income tests and a
      Material Adverse Effect has occurred:

    

    (i) At
      the
      close of each taxable year, at least 75 percent of such Guarantor’s gross income
      consists of (A) “rents from real property” within the meaning of Section
      856(c)(3)(A) of the Code, (B) interest on obligations secured by mortgages
      on
      real property or on interests in real property, within the meaning of Section
      856(c)(3)(B) of the Code, (C) gain from the sale or other disposition of real
      property (including interests in real property and interests in mortgages on
      real property) which is not property described in Section 1221(a)(1) of the
      Code, within the meaning of Section 856(c)(3)(C) of the Code, (D) dividends
      or
      other distributions on, and gain (other than gain from “prohibited transactions”
within the meaning of Section 857(b)(6)(B)(iii) of the Code) from the sale
      or
      other disposition of, transferable shares (or transferable certificates of
      beneficial interest) in other qualifying REITs within the meaning of Section
      856(d)(3)(D) of the Code, and (E) amounts described in Sections 856(c)(3)(E)
      through 856(c)(3)(I) of the Code;

    

    (ii) At
      the
      close of each taxable year, at least 95 percent of such Guarantor’s gross income
      consists of (A) the items of income described in paragraph (i) hereof (other
      than those described in Section 856(c)(3)(I) of the Code), (B) gain realized
      from the sale or other disposition of stock or securities which are not property
      described in Section 1221(a)(1) of the Code, (C) interest and (D) dividends,
      in
      each case within the meaning of Section 856(c)(2) of the Code;

    

    (iii) At
      the
      close of each quarter of the Guarantor’s taxable year, at least 75 percent of
      the value of such Guarantor’s total assets (as determined in accordance with
      Treasury Regulations Section 1.856-2(d)) has consisted of and will consist
      of
      real estate assets within the meaning of Sections 856(c)(4) and 856(c)(5)(B)
      of
      the Code, cash and cash items (including receivables which arise in the ordinary
      course of the Guarantor’s operations, but not including receivables purchased
      from another person), and Government Securities;

    

    (iv) At
      the
      close of each quarter of each of the Guarantor’s taxable years, (A) not more
      than 25 percent of the Guarantor’s total asset value will be represented by
      securities (other than those described in paragraph 3), (B) not more than 20
      percent of the Guarantor’s total asset value will be represented by securities
      of one or more taxable REIT subsidiaries, and (C) (1) not more than 5 percent
      of
      the value of the Guarantor’s total assets will be represented by securities of
      any one issuer (other than Government Securities and securities of taxable
      REIT
      subsidiaries), and (2) the Guarantor will not hold securities possessing more
      than 10 percent of the total voting power or value of the outstanding securities
      of any one issuer (other than Government Securities, securities of taxable
      REIT
      subsidiaries, and securities of a qualified REIT subsidiary within the meaning
      of Section 856(i) of the Code).

     

    
      
        
        

      

      
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    20. REMEDIES

    

    Upon
      the
      occurrence of an Event of Default, Buyers, at their option (which option shall
      be deemed to have been exercised immediately upon the occurrence of an Event
      of
      Default pursuant to Section 19(f), (g) or (k) hereof), shall have the right
      to
      exercise any or all of the following rights and remedies:

    

    (a)  a)  The
      Repurchase Date for each Transaction hereunder shall, if it has not already
      occurred, be deemed immediately to occur (except that, in the event that the
      Purchase Date for any Transaction has not yet occurred as of the date of such
      exercise or deemed exercise, such Transaction shall be deemed immediately
      canceled). Seller’s obligations hereunder to repurchase all Purchased Loans at
      the Repurchase Price therefor on the Repurchase Date in such Transactions shall
      thereupon become immediately due and payable; all Income paid after such
      exercise or deemed exercise shall be remitted to and retained by Buyers and
      applied to the aggregate Repurchase Prices and any other amounts owing by Seller
      hereunder; each of Seller, Servicer (unless Servicer is not an Affiliate of
      Guarantor or Seller) and Guarantor shall immediately deliver to Buyers or their
      designee any and all original papers, records and files relating to the
      Purchased Loans subject to such Transaction then in its possession and/or
      control; and all right, title and interest in and entitlement to such Purchased
      Loans and Servicing Rights thereon shall be deemed transferred to Buyers or
      their designee.

    

    (ii) Buyers
      may (A) sell, on or following the Business Day following the date on which
      the
      Repurchase Price became due and payable pursuant to Section 20(a)(i) without
      notice or demand of any kind, at a public or private sale and at such price
      or
      prices as Buyers may reasonably deem satisfactory any or all Purchased Loans
      and/or (B) in its sole discretion elect, in lieu of selling all or a portion
      of
      such Purchased Loans, to give Seller credit for such Purchased Loans in an
      amount equal to the Market Value of the Purchased Loans against the aggregate
      unpaid Repurchase Price and any other amounts owing by Seller hereunder. Seller
      shall remain liable to Buyers for any amounts that remain owing to Buyers
      following a sale and/or credit under the preceding sentence. The proceeds of
      any
      disposition of Purchased Loans shall be applied first
      to the
      reasonable costs and expenses incurred by Buyers in connection with or as a
      result of an Event of Default; second
      to
      Breakage Costs, costs of cover and/or related hedging transactions; third
      to the
      aggregate Repurchase Prices; and fourth
      to all
      other Obligations.

    

    (iii) The
      parties recognize that it may not be possible to purchase or sell all of the
      Purchased Loans on a particular Business Day, or in a transaction with the
      same
      purchaser, or in the same manner because the market for such Purchased Loans
      may
      not be liquid. In view of the nature of the Purchased Loans, the parties agree
      that liquidation of a Transaction or the underlying Purchased Loans does not
      require a public purchase or sale and that a good faith private purchase or
      sale
      shall be deemed to have been made in a commercially reasonable manner.
      Accordingly, Buyers may elect the time and manner of liquidating any Purchased
      Loan and nothing contained herein shall obligate Buyers to liquidate any
      Purchased Loan on the occurrence of an Event of Default or to liquidate all
      Purchased Loans in the same manner or on the same Business Day or constitute
      a
      waiver of any right or remedy of Buyers. Notwithstanding the foregoing, the
      parties to this Agreement agree that the Transactions have been entered into
      in
      consideration of and in reliance upon the fact that all Transactions hereunder
      constitute a single business and contractual obligation and that each
      Transaction has been entered into in consideration of the other
      Transactions.

    

    (b) Seller
      hereby acknowledges, admits and agrees that Seller’s obligations under this
      Agreement are recourse obligations of Seller to which Seller pledges its full
      faith and credit. In addition to their rights hereunder, Buyers shall have
      the
      right to proceed against any of Seller’s assets which may be in the possession
      of Buyers, any of Buyers’ Affiliates or their designee (including the
      Custodian), including the right to liquidate such assets and to set-off the
      proceeds against monies owed by Seller to Buyers pursuant to this Agreement.
      Buyers may set off cash, the proceeds of the liquidation of the Purchased Loans
      and Additional Purchased Loans, any other Collateral or its proceeds and all
      other sums or obligations owed by Buyers to Seller against all of Seller’s
      Obligations to Buyers, whether under this Agreement, under a Transaction, or
      under any other agreement between the parties, or otherwise, whether or not
      such
      Obligations are then due, without prejudice to Buyers’ right to recover any
      deficiency.

    

    
      
        
        

      

      
        -39-

        
          

        

      

      
        
        

      

    

    (c) Buyers
      shall have the right to obtain physical possession of the Records and all other
      files of Seller relating to the Purchased Loans and all documents relating
      to
      the Purchased Loans which are then or may thereafter come into the possession
      of
      Seller or any third party acting for Seller and Seller shall deliver to Buyers
      such assignments as Buyers shall request.

    

    (d) Buyers
      shall have the right to direct all Persons servicing the Purchased Loans to
      take
      such action with respect to the Purchased Loans as Buyers determine
      appropriate.

    

    (e) Buyers
      shall, without regard to the adequacy of the security for the Obligations,
      be
      entitled to the appointment of a receiver by any court having jurisdiction,
      without notice, to take possession of and protect, collect, manage, liquidate,
      and sell the Purchased Loans and any other Collateral or any portion thereof,
      collect the payments due with respect to the Purchased Loans and any other
      Collateral or any portion thereof, and do anything that Buyers are authorized
      hereunder to do. Seller shall pay all costs and expenses incurred by Buyers
      in
      connection with the appointment and activities of such receiver.

    

    (f) Buyers
      may, at their option, enter into one or more Hedge Instruments covering all
      or a
      portion of the Purchased Loans, and the Seller shall be responsible for all
      damages, judgments, costs and expenses of any kind which may be imposed on,
      incurred by or asserted against the Lender relating to or arising out of such
      Hedge Instruments; including without limitation any losses resulting from such
      Hedge Instruments.

    

    (g) In
      addition to all the rights and remedies specifically provided herein, Buyers
      shall have all other rights and remedies provided by applicable federal, state,
      foreign, and local laws, whether existing at law, in equity or by statute,
      including, without limitation, all rights and remedies available to a
      purchaser/secured party under the Uniform Commercial Code.

    

    Except
      as
      otherwise expressly provided in this Agreement, Buyers shall have the right
      to
      exercise any of their rights and/or remedies without presentment, demand,
      protest or further notice of any kind other than as expressly set forth herein,
      all of which are hereby expressly waived by Seller.

    

    Buyers
      may enforce their rights and remedies hereunder without prior judicial process
      or hearing, and Seller hereby expressly waives, to the extent permitted by
      law,
      any right Seller might otherwise have to require Buyers to enforce their rights
      by judicial process. Seller also waives, to the extent permitted by law, any
      defense Seller might otherwise have to the Obligations, arising from use of
      nonjudicial process, enforcement and sale of all or any portion of the Purchased
      Loans and any other Collateral or from any other election of remedies. Seller
      recognizes that nonjudicial remedies are consistent with the usages of the
      trade, are responsive to commercial necessity and are the result of a bargain
      at
      arm’s length.

    

    Seller
      shall cause all sums received by it or any of its Affiliates or the Servicer
      with respect to the Purchased Loans to be deposited with Buyers or Buyers’
designee promptly upon receipt thereof. Seller shall be liable to Buyers for
      the
      amount of all expenses (plus interest thereon at a rate equal to the Default
      Rate), and Breakage Costs including, without limitation, all costs and expenses
      incurred within thirty (30) days of the Event of Default in connection with
      hedging or covering transactions related to the Purchased Loans, conduit
      advances and payments for mortgage insurance.

     

    
      
        
        

      

      
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    21. DELAY
      NOT WAIVER; REMEDIES ARE CUMULATIVE

    

    No
      failure on the part of Buyers to exercise, and no delay in exercising, any
      right, power or remedy hereunder shall operate as a waiver thereof, nor shall
      any single or partial exercise by Buyers of any right, power or remedy hereunder
      preclude any other or further exercise thereof or the exercise of any other
      right, power or remedy. All rights and remedies of Buyers provided for herein
      are cumulative and in addition to any and all other rights and remedies provided
      by law, the Program Documents and the other instruments and agreements
      contemplated hereby and thereby, and are not conditional or contingent on any
      attempt by Buyers to exercise any of their rights under any other related
      document. Buyers may exercise at any time after the occurrence of an Event
      of
      Default one or more remedies, as they so desire, and may thereafter at any
      time
      and from time to time exercise any other remedy or remedies.

     

    22. USE
      OF EMPLOYEE PLAN ASSETS

    

    No
      assets
      of an employee benefit plan subject to any provision of the Employee Retirement
      Income Security Act of 1974, as amended (“ERISA”)
      shall
      be used by either party hereto in a Transaction.

     

    23. INDEMNITY

    

    (a) Seller
      and Guarantor agree to pay on demand (with interest thereon at the Default
      Rate
      following an Event of Default) (i) all reasonable out-of-pocket costs and
      expenses of Buyers and the Custodian in connection with the preparation,
      execution, delivery, modification, administration and amendment of the Program
      Documents (including, without limitation, (A) all collateral review and UCC
      search and filing fees and expenses and (B) the reasonable fees and expenses
      of
      counsel for Buyers with respect to advising Buyers as to their rights and
      responsibilities, or the perfection, protection or preservation of rights or
      interests, under this Agreement, with respect to negotiations with Seller or
      Guarantor or with other creditors of Seller or Guarantor or any of their
      Subsidiaries arising out of any Default or any events or circumstances that
      may
      give rise to a Default and with respect to presenting claims in or otherwise
      participating in or monitoring any bankruptcy, insolvency or other similar
      proceeding involving creditors’ rights generally and any proceeding ancillary
      thereto), (ii) all reasonable out-of-pocket expense and reasonable attorneys’
fees in connection with the taking of any action, including legal, required
      or
      permitted to be taken by Buyers and/or Custodian pursuant to the Program
      Documents, any “due diligence” or loan agent reviews conducted by Buyers on
      their behalf and (iii) all costs and expenses of Buyers in connection with
      the enforcement of this Agreement (including any waivers), whether in any
      action, suit or litigation, any bankruptcy, insolvency or other similar
      proceeding affecting creditors’ rights generally (including, without limitation,
      the reasonable fees and expenses of counsel for Buyers) whether or not the
      transactions contemplated hereby are consummated.

    

    (b) Seller
      and Guarantor agree to indemnify and hold harmless Buyers and each of their
      Affiliates and their respective officers, directors, employees, agents and
      advisors (each, an “Indemnified
      Party”)
      from
      and against (and will reimburse each Indemnified Party as the same is incurred)
      any and all claims, damages, losses, liabilities and expenses (including,
      without limitation, reasonable fees and expenses of counsel and allocated costs
      of internal counsel) that may be incurred by or asserted or awarded against
      any
      Indemnified Party, in each case arising out of or in connection with or by
      reason of (including without limitation, in connection with) (i) any
      investigation, litigation or other proceeding (whether or not such Indemnified
      Party is a party thereto) relating to, resulting from or arising out of any
      of
      the Program Documents and all other documents related thereto, any breach of
      a
      representation or warranty of Seller or Guarantor or Seller’s or Guarantor’s
      officer in this Agreement or any other Program Document, and all actions taken
      pursuant thereto, (ii) the Transactions, the actual or proposed use of the
      proceeds of the Transactions, this Agreement or any of the transactions
      contemplated thereby, including, without limitation, any acquisition or proposed
      acquisition, or any indemnity payable under the Servicing Agreement or other
      servicing arrangement, (iii) the actual or alleged presence of hazardous
      materials on any Property or any environmental action relating in any way to
      any
      Property, or (iv) the actual or alleged violation of any federal, state,
      municipal or local predatory lending laws, except to the extent such claim,
      damage, loss, liability or expense is found in a final, non-appealable judgment
      by a court of competent jurisdiction to have resulted from such Indemnified
      Party’s gross negligence or willful misconduct or is the result of a claim made
      by Seller or Guarantor against the Indemnified Party, and Seller or Guarantor
      is
      ultimately the successful party in any resulting litigation or arbitration.
      Seller and Guarantor also agree not to assert (and to cause Servicer not to
      assert) any claim against Buyers or any of their Affiliates, or any of their
      respective officers, directors, employees, attorneys and agents, on any theory
      of liability, for special, indirect, consequential or punitive damages arising
      out of or otherwise relating to the Program Documents, the actual or proposed
      use of the proceeds of the Transactions, this Agreement or any of the
      transactions contemplated thereby. THE FOREGOING INDEMNITY AND AGREEMENT NOT
      TO
      ASSERT CLAIMS EXPRESSLY APPLIES, WITHOUT LIMITATION, TO THE NEGLIGENCE (BUT
      NOT
      GROSS NEGLIGENCE OR WILLFUL MISCONDUCT) OF THE INDEMNIFIED PARTIES.

    

    
      
        
        

      

      
        -41-

        
          

        

      

      
        
        

      

    

    (c) If
      any
      action or proceeding (including any governmental investigation) shall be brought
      or asserted against any Indemnified Party in respect of which the indemnity
      provided above may be sought from Seller or Guarantor (the “Indemnifying
      Party”)
      each
      such Indemnified Party shall promptly notify the Indemnifying Party in writing,
      and the Indemnifying Party shall assume the defense thereof, including the
      employment of counsel satisfactory to the Indemnified Party and the payment
      of
      all expenses and reasonable legal fees; provided
      that
      failure to notify the Indemnifying Party shall not relieve it from any liability
      it may have to such Indemnified Party except to the extent that it shall be
      actually prejudiced thereby. The Indemnified Party shall have the right to
      employ separate counsel in any such action and to participate in the defense
      thereof at the expense of the Indemnified Party; provided,
      however
      that the
      fees and expenses of separate counsel to the Indemnified Party in any such
      proceeding shall be at the expense of the Indemnifying Party if (i) the
      Indemnifying Party has agreed to pay such fees and expenses, (ii) the
      Indemnifying Party shall have failed to assume the defense of such action or
      proceeding or employ counsel satisfactory to the Indemnified Party in any such
      action or proceeding within a reasonable time after the commencement of such
      action or (iii) the named parties to any such action or proceeding (including
      any impleaded parties) include both the Indemnified Party and the Indemnifying
      Party, and the Indemnified Party shall have been advised in writing by counsel
      that there may be one or more legal defenses available to it which are different
      from or additional to those available to the Indemnifying Party which gives
      rise
      to a conflict of interest (in which case, if the Indemnified Party notifies
      the
      Indemnifying Party in writing that it elects to employ separate counsel at
      the
      expense of the Indemnifying Party, the Indemnifying Party shall not have the
      right to assume the defense of such action or proceeding on behalf of such
      Indemnified Party, it being understood, however, that the Indemnifying Party
      shall not, in connection with any one such action or proceeding or separate
      but
      substantially similar or related actions or proceedings in the same jurisdiction
      arising out of the same general allegations or circumstances, be liable for
      the
      reasonable fees and expenses of more than one separate firm of attorneys at
      any
      time for the Indemnified Parties, which firm shall be designated in writing
      by
      the Indemnified Party and shall be acceptable to the Indemnified Party). The
      Indemnifying Party shall not be liable for any settlement of any such action
      or
      proceeding effected without its written consent to the extent that any such
      settlement shall be prejudicial to the Indemnifying Party (to which the
      Indemnified Party did not consent), but, if settled with its written consent,
      or
      if there is a final non-appealable judgment for the plaintiff in any such action
      or proceeding with respect to which the Indemnifying Party shall have received
      notice in accordance with this paragraph, the Indemnifying Party agrees to
      indemnify and hold the Indemnified Parties harmless from and against any loss
      or
      liability by reason of such settlement or judgment.

    

    
      
        
        

      

      
        -42-

        
          

        

      

      
        
        

      

    

    (d) Without
      limitation on the provisions of Section 6, if any payment of the Repurchase
      Price of any Transaction is made by Seller other than on the then scheduled
      Repurchase Date thereto as a result of an acceleration of the Repurchase Date
      pursuant to Section 20 or for any other reason, Seller shall upon demand by
      Buyers, pay to Buyers any Breakage Costs incurred as of a result of such
      payment.

    

    (e) If
      Seller
      fails to pay when due any costs, expenses or other amounts payable by it under
      this Agreement, including, without limitation, reasonable fees and expenses
      of
      counsel and indemnities, such amount may be paid on behalf of Seller by Buyers,
      in their sole discretion and Seller shall remain liable for any such payments
      by
      Buyers. No such payment by Buyers shall be deemed a waiver of any of Buyers’
rights under the Program Documents.

    

    (f) Without
      prejudice to the survival of any other agreement of Seller hereunder, the
      covenants and obligations of Seller contained in this Section 23 shall survive
      the payment in full of the Repurchase Price and all other amounts payable
      hereunder and delivery of the Purchased Loans by Buyers against full payment
      therefore.

     

    24. WAIVER
      OF REDEMPTION AND DEFICIENCY RIGHTS

    

    Seller
      hereby expressly waives, to the fullest extent permitted by law, every statute
      of limitation on a deficiency judgment, any reduction in the proceeds of any
      Purchased Loans as a result of restrictions upon Buyers or Custodian contained
      in the Program Documents or any other instrument delivered in connection
      therewith, and any right that it may have to direct the order in which any
      of
      the Purchased Loans shall be disposed of in the event of any disposition
      pursuant hereto.

     

    25. REIMBURSEMENT;
      SET-OFF

    

    All
      sums
      reasonably expended by Buyers in connection with the exercise of any right
      or
      remedy provided for herein shall be and remain Seller’s obligation. Seller
      agrees to pay, with interest at the Default Rate to the extent that an Event
      of
      Default has occurred, the reasonable out-of-pocket expenses and reasonable
      attorneys’ fees incurred by Buyers and/or Custodian in connection with the
      preparation, negotiation, enforcement (including any waivers), administration
      and amendment of the Program Documents (regardless of whether a Transaction
      is
      entered into hereunder), the taking of any action, including legal or Guarantor
      action, required or permitted to be taken by Buyers (without duplication to
      Buyers) and/or Custodian pursuant thereto, any “due diligence” or loan agent
      reviews conducted by Buyers or on their behalf or by refinancing or
      restructuring in the nature of a “workout.”

    

    If
      Buyers
      determine that, due to the introduction of, any change in, or the compliance
      by
      Buyers with (i) any eurocurrency reserve requirement, or (ii) the interpretation
      of any law, regulation or any guideline or request from any central bank or
      other Governmental Authority (whether or not having the force of law), there
      shall be an increase in the cost to Buyers in engaging in the present or any
      future Transactions, then Seller agrees to pay to Buyers, from time to time,
      upon demand by Buyers (with a copy to Custodian) the actual cost of additional
      amounts as specified by Buyers to compensate Buyers for such increased costs.
      Notwithstanding any other provisions in this Agreement, in the event of any
      such
      change in the eurocurrency reserve requirement or the interpretation of any
      law,
      regulation or any guideline or request from any central bank or other
      Governmental Authority, Seller will have the right to terminate all Transactions
      then outstanding as of a date selected by Seller, which date shall be prior
      to
      the applicable Repurchase Date and which date shall thereafter for all purposes
      hereof, be deemed to be the Repurchase Date. In addition, Buyers shall promptly
      notify Seller if any events in clause (i) or (ii) of this Section 25
      occur.

    

    
      
        
        

      

      
        -43-

        
          

        

      

      
        
        

      

    

    In
      addition to any rights and remedies of Buyers hereunder and by law, Buyers
      shall
      have the right, without prior notice to Seller, any such notice being expressly
      waived by Seller to the extent permitted by applicable law, upon any amount
      becoming due and payable by Seller hereunder (whether at the stated maturity,
      by
      acceleration or otherwise) to set-off and appropriate and apply against such
      amount any and all deposits (general or special, time or demand, provisional
      or
      final), in any currency, and any other credits, indebtedness or claims, in
      any
      currency, in each case whether direct or indirect, absolute or contingent,
      matured or unmatured, at any time held or owing by Buyers or any Affiliate
      thereof to or for the credit or the account of Seller, Guarantor or Originator.
      Buyers agrees to promptly notify Seller after any such set-off and application
      made by Buyers; provided
      that the
      failure to give such notice shall not affect the validity of such set-off and
      application.

     

    26. FURTHER
      ASSURANCES

    

    Seller
      and Guarantor agree to do such further acts and things and to execute and
      deliver to Buyers such additional assignments, acknowledgments, agreements,
      powers and instruments as are reasonably required by Buyers to carry into effect
      the intent and purposes of this Agreement, to perfect the interests of Buyers
      in
      the Purchased Loans or to better assure and confirm unto Buyers their rights,
      powers and remedies hereunder.

     

    27. ENTIRE
      AGREEMENT; PRODUCT OF NEGOTIATION

    

    This
      Agreement supersedes and integrates all previous negotiations, contracts,
      agreements and understandings between the parties relating to a sale and
      repurchase of Purchased Loans and Additional Purchased Loans thereto, and it,
      together with the other Program Documents, and the other documents delivered
      pursuant hereto or thereto, contains the entire final agreement of the parties.
      No prior negotiation, agreement, understanding or prior contract shall have
      any
      validity hereafter.

     

    28. TERMINATION

    

    This
      Agreement shall remain in effect until the Termination Date provided,
      however,
      that no
      such termination shall affect Seller’s outstanding obligations to Buyers at the
      time of such termination. Seller’s obligations to indemnify Buyers pursuant to
      this Agreement and the other Program Documents shall survive the termination
      hereof.

     

    29. ASSIGNMENT

    

    The
      Program Documents are not assignable by Seller or Guarantor. Buyers in their
      sole discretion may at any time assign all or a portion of their rights and
      obligations under this Agreement and the Program Documents; provided,
      however,
      that
      Buyers shall maintain, for review by Seller upon written request, a register
      of
      assignees and a copy of an executed assignment and acceptance by Buyers and
      assignee (“Assignment
      and Acceptance”),
      specifying the percentage or portion of such rights and obligations assigned.
      Upon such assignment, (a) such assignee shall be a party hereto and to each
      Program Document to the extent of the percentage or portion set forth in the
      Assignment and Acceptance, and shall succeed to the applicable rights and
      obligations of Buyers hereunder, and (b) Buyers shall, to the extent that such
      rights and obligations have been so assigned by it to either (i) an Affiliate
      of
      any Buyer which assumes the obligations of such Buyer or (ii) to another Person
      which assumes the obligations of such Buyer, be released from its obligations
      hereunder accruing thereafter and under the Program Documents. Unless otherwise
      stated in the Assignment and Acceptance, Seller shall continue to take
      directions solely from Buyers unless otherwise notified by Buyers in writing.
      Buyers may distribute to any prospective assignee any document or other
      information delivered to Buyers by Seller. Notwithstanding any assignment by
      Buyers pursuant to this Section 29, Buyers shall remain liable as to the
      Transactions.

     

    
      
        
        

      

      
        -44-

        
          

        

      

      
        
        

      

    

    30. AMENDMENTS,
      ETC.

    

    No
      amendment or waiver of any provision of this Agreement nor any consent to any
      failure to comply herewith or therewith shall in any event be effective unless
      the same shall be in writing and signed by Guarantor, Seller and Buyers, and
      then such amendment, waiver or consent shall be effective only in the specific
      instance and for the specific purpose for which given.

     

    31. SEVERABILITY

    

    If
      any
      provision of any Program Document is declared invalid by any court of competent
      jurisdiction, such invalidity shall not affect any other provision of the
      Program Documents, and each Program Document shall be enforced to the fullest
      extent permitted by law.

     

    32. BINDING
      EFFECT; GOVERNING LAW

    

    This
      Agreement shall be binding and inure to the benefit of the parties hereto and
      their respective successors and assigns, except that neither Guarantor nor
      Seller may assign or transfer any of their respective rights or obligations
      under this Agreement or any other Program Document without the prior written
      consent of Buyers. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND
      GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE
      CONFLICT OF LAWS PRINCIPLES THEREOF (EXCEPT FOR SECTION 5-1401 OF THE NEW YORK
      GENERAL OBLIGATIONS LAW).

     

    33. WAIVER
      OF JURY TRIAL; CONSENT TO JURISDICTION AND VENUE; SERVICE OF
      PROCESS

    

    EACH
      OF
      SELLER AND GUARANTOR HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
      PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY LEGAL
      PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE PROGRAM DOCUMENTS
      OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.  EACH
      OF
      SELLER AND GUARANTOR HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY CONSENTS,
      ON
      BEHALF OF ITSELF AND ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF ANY
      COURT OF THE STATE OF NEW YORK, OR IN THE UNITED STATES DISTRICT COURT FOR
      THE
      SOUTHERN DISTRICT OF NEW YORK, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
      RELATING TO THE PROGRAM DOCUMENTS IN ANY ACTION OR PROCEEDING. EACH OF SELLER
      AND GUARANTOR HERETO HEREBY SUBMITS TO, AND WAIVES ANY OBJECTION SUCH PARTY
      MAY
      HAVE TO, NON-EXCLUSIVE PERSONAL JURISDICTION AND VENUE IN THE COURTS OF THE
      STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT
      OF NEW YORK, WITH RESPECT TO ANY DISPUTES ARISING OUT OF OR RELATING TO THE
      PROGRAM DOCUMENTS. EACH OF SELLER AND GUARANTOR HERETO HEREBY IRREVOCABLY
      CONSENTS TO THE SERVICE OF A SUMMONS AND COMPLAINT AND OTHER PROCESS IN ANY
      ACTION, CLAIM OR PROCEEDING BROUGHT BY ANOTHER PARTY IN CONNECTION WITH THIS
      AGREEMENT OR THE OTHER PROGRAM DOCUMENTS, ANY RIGHTS OR OBLIGATIONS HEREUNDER
      OR
      THEREUNDER, OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS, ON BEHALF OF
      ITSELF OR ITS PROPERTY, IN THE MANNER SPECIFIED IN THIS SECTION 33 AND TO SUCH
      PARTY’S ADDRESS SPECIFIED IN SECTION 36 OR SUCH OTHER ADDRESS AS SUCH PARTY
      SHALL HAVE PROVIDED IN WRITING TO THE OTHER PARTIES HERETO. NOTHING IN THIS
      SECTION 33 SHALL AFFECT THE RIGHT OF ANY PARTY HERETO TO (I) SERVE LEGAL PROCESS
      IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW, OR (II) BRING ANY ACTION OR
      PROCEEDING AGAINST ANY OTHER PARTY OR ITS PROPERTIES IN THE COURTS OF ANY OTHER
      JURISDICTIONS.

     

    
      
        
        

      

      
        -45-

        
          

        

      

      
        
        

      

    

    34. SINGLE
      AGREEMENT

    

    Seller,
      Guarantor and Buyers acknowledge that, and have entered hereinto and will enter
      into each Transaction hereunder in consideration of and in reliance upon the
      fact that, all Transactions hereunder constitute a single business and
      contractual relationship and have been made in consideration of each other.
      Accordingly, Seller, Guarantor and Buyers each agree (i) to perform all of
      its
      obligations in respect of each Transaction hereunder, and that a default in
      the
      performance of any such obligations shall constitute a default by it in respect
      of all Transactions hereunder, and (ii) that payments, deliveries and other
      transfers made by any of them in respect of any Transaction shall be deemed
      to
      have been made in consideration of payments, deliveries and other transfers
      in
      respect of any other Transaction hereunder, and the obligations to make any
      such
      payments, deliveries and other transfers may be applied against each other
      and
      netted.

     

    35. INTENT

    

    Seller
      and Buyers recognize that each Transaction is a “repurchase agreement” as that
      term is defined in Section 101 of Title 11 of the United States Code, as amended
      (“USC”),
      a
“forward contract” as that term is defined in Section 101 of Title 11 of the
      USC, and a “securities contract” as that term is defined in Section 741 of Title
      11 of the USC.

    

    It
      is
      understood that each Buyer’s right to liquidate the Purchased Loans delivered to
      it in connection with the Transactions hereunder, to accelerate or terminate
      this Agreement or to exercise any other remedies pursuant to Section 20 hereof
      is a contractual right to liquidate, terminate and accelerate such Transaction
      as described in Sections 555 and 559 of Title 11 of the USC.

     

    36. NOTICES
      AND OTHER COMMUNICATIONS

    

    Except
      as
      provided herein, all notices required or permitted by this Agreement shall
      be in
      writing (including without limitation by Electronic Transmission, email or
      facsimile) and shall be effective and deemed delivered only when received by
      the
      party to which it is sent; provided,
      however,
      that a
      facsimile transmission shall be deemed to be received when transmitted so long
      as the transmitting machine has provided an electronic confirmation (without
      error message) of such transmission and notices being sent by first class mail,
      postage prepaid, shall be deemed to be received five (5) Business Days following
      the mailing thereof. Any such notice shall be sent to a party at the address
      or
      facsimile transmission number set forth below:

     

    
      	
              if
                to Seller:

            	
              NYMC
                Mortgage Loan Corporation

            
	 	
              1301
                Avenue of the Americas 

            
	 	
              7th
                Floor

              New
                York, New York 10019

            
	 	
              Attention:
                President

            
	 	
              Telephone:
                212-634-9400

            
	 	Facsimile:
              212-655-6269

    

     

    
      
        
        

      

      
        -46-

        
          

        

      

      
        
        

      

    

    
      	
              With
                a copy to:

            	
              New
                York Mortgage Trust, Inc.

              Attention:
                General Counsel

              Telephone:
                212-634-9400

              Facsimile:
                212-655-6269

            
	 	 
	
              if
                to Guarantor: 

            	
              New
                York Mortgage Trust, Inc.

            
	 	
              1301
                Avenue of the Americas 

            
	 	
              7th
                Floor

              New
                York, New York 10019

            
	 	
              Attention:
                President

            
	 	
              Telephone:
                212-634-9400

            
	
               

               

              With
                a copy to:

            	
              Facsimile:
                212-655-6269

               

              NYMC
                Mortgage Loan Corporation

              Attention:
                General Counsel

              Telephone:
                212-634-9400

              Facsimile:
                212-655-6269

            
	 	 
	
              if
                to Aspen:

            	
              Aspen
                Funding Corp.

            
	 	
              60
                Wall Street

            
	 	
              New
                York, NY 10005

            
	 	
              Attention:
                Vincent D’Amore

            
	 	
              Telephone:
                (212) 250-7328

            
	 	
              Facsimile:
                (212) 797-5160

            
	 	 
	
              if
                to Newport:

            	
              Newport
                Funding Corp.

            
	 	
              60
                Wall Street

            
	 	
              New
                York, NY 10005

            
	 	
              Attention:
                Vincent D’Amore

            
	 	
              Telephone:
                (212) 250-7328

            
	 	
              Facsimile:
                (212) 797-5160

            
	 	 
	
              if
                to DBSP:

            	
              DB
                Structured Products, Inc.

            
	 	
              60
                Wall Street

            
	 	
              New
                York, NY 10005

            
	 	
              Attention:
                Vincent D’Amore

            
	 	
              Telephone:
                (212) 250-7328

            
	 	
              Facsimile:
                (212) 797-5160

            

    

     

    or
      to
      such other address or facsimile number as either party may notify to the other
      in writing from time to time. Notices required hereunder to be provided to
      one
      Buyer must be simultaneously provided to all Buyers.

     

    37. CONFIDENTIALITY

    

    The
      Program Documents and their respective terms, provisions, supplements and
      amendments, and transactions and notices hereunder, are proprietary to Buyers
      and Agent and shall be held by Seller and Guarantor (and Seller and Guarantor
      shall cause Servicer to hold it) in strict confidence and shall not be disclosed
      to any third party without the consent of Buyers except for (i) disclosure
      to
      Seller’s or Guarantor’s direct and indirect parent companies, directors,
      attorneys, agents or accountants, provided that such attorneys or accountants
      likewise agree to be bound by this covenant of confidentiality, or are otherwise
      subject to confidentiality restrictions or (ii) with prior written notice to
      Buyers, disclosure required by law, rule, regulation or order of a court or
      other regulatory body or (iii) with prior written notice to Buyers, disclosure
      to any approved hedge counterparty to the extent necessary to obtain any Hedge
      Instrument hereunder or (iv) with prior written notice to Buyers, any
      disclosures or filing required under Securities and Exchange Commission
      (“SEC”)
      or
      state securities’ laws; provided
      that in
      the case of (iv), the Seller and the Guarantor shall not file the Pricing Side
      Letter with the SEC or state securities office. Notwithstanding anything herein
      to the contrary, except as reasonably necessary to comply with applicable
      securities laws, each party (and each employee, representative, or other agent
      of each party) may disclose to any and all persons, without limitation of any
      kind, the tax treatment and tax structure of the transaction and all materials
      of any kind (including opinions or other tax analyses) that are provided to
      it
      relating to such tax treatment and tax structure. For this purpose, tax
      treatment and tax structure shall not include (i) the identity of any existing
      or future party (or any Affiliate of such party) to this Agreement or (ii)
      any
      specific pricing information or other commercial terms, including the amount
      of
      any fees, expenses, rates or payments arising in connection with the
      transactions contemplated by this Agreement.

     

    
      
        
        

      

      
        -47-

        
          

        

      

      
        
        

      

    

    38. DUE
      DILIGENCE

    

    Each
      of
      Seller and Guarantor agrees to promptly provide Buyers and their agents with
      access to, copies of and extracts from any and all documents, records,
      agreements, instruments or information (including, without limitation, any
      of
      the foregoing in computer data banks and computer software systems) relating
      to
      its financial condition, the performance of its obligations under the Program
      Documents, the documents contained in the Servicing File or the Purchased Loans
      in the possession, or under the control, of Servicer, Seller or Guarantor.
      In
      addition, Buyers have the right to perform continuing due diligence reviews
      on a
      quarterly basis (or with respect to the Servicer, as provided in the Servicing
      Side Letter) (x) Seller, Servicer, Guarantor and their respective Affiliates,
      directors, officers, employees and significant shareholders, including, without
      limitation, their respective financial condition and performance of their
      obligations under the Program Documents, and (y) the Servicing File and the
      Purchased Loans. Seller shall also make available to Buyers a knowledgeable
      financial or accounting officer for the purpose of answering questions
      respecting the Purchased Loans. Without limiting the generality of the
      foregoing, Seller acknowledges that Buyers shall enter into transactions with
      Seller based solely upon the information provided by Seller to Buyers and the
      representations, warranties and covenants contained herein, and that Buyers,
      at
      their option, has the right at nay time to conduct a partial or complete due
      diligence review on some or all of the Purchased Loans, including, without
      limitation, ordering new credit reports, new appraisals on the related Mortgaged
      Properties and otherwise re-generating the information used to originate such
      Purchased Loans. Seller and Guarantor shall pay Buyers’ out-of-pocket costs and
      expenses incurred in connection with any due diligence hereunder or under the
      Servicing Side Letter.

     

    39. NO
      PROCEEDINGS

    

    (a) The
      Guarantor and Seller hereby covenant and agree (which agreement, shall, pursuant
      to the terms of this Agreement, be binding upon its successors and assigns)
      that
      it shall not institute against, or join any other Person in instituting against,
      Aspen or Newport any bankruptcy, reorganization, arrangement, insolvency or
      liquidation proceeding or other proceedings under any federal or state
      bankruptcy or similar law, for one year and a day after the latest maturing
      Commercial Paper Note (whether or not issued to fund a Transaction under this
      Agreement) issued by Aspen or Newport, as applicable, is paid. Notwithstanding
      anything in this Agreement to the contrary, any breach of the terms or
      conditions of this Section 39 shall not be subject to any grace or cure period.
      The agreements in this Section 39(a) shall survive the termination of this
      Agreement and the satisfaction of all Obligations under the Program
      Documents.

    

    
      
        
        

      

      
        -48-

        
          

        

      

      
        
        

      

    

    (b) The
      Guarantor hereby covenants and agrees that it will not at any time (until the
      expiration of one year and one day following the satisfaction of all Obligations
      under the Program Documents) institute against the Seller, or solicit or join
      in
      or cooperate with or encourage any institution against the Seller of, any
      bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
      or other proceedings under any United States Federal or State bankruptcy or
      similar law in connection with any obligations under the Program Documents.
      Notwithstanding anything to the contrary contained in this Agreement, any breach
      of the terms or conditions of this Agreement shall not be subject to any grace
      or cure period. The agreements in this Section 39(b) shall survive the
      termination of this Agreement and the satisfaction of all Obligations under
      the
      Program Documents.

    

    [Signature
      Page Follows]

    

    
      
        
        

      

      
        -49-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, Seller, Guarantor and Buyers have caused their names to be
      signed to this Master Repurchase Agreement by their respective officers
      thereunto duly authorized as of the date first above written.

     

    
      	
              NYMC
                LOAN CORPORATION, as Seller

               

               

              By: /s/
                Steven B. Schnall

              Name:
                Steven B. Schnall

              Title:
                Chief Executive Officer

            
	 
	
              NEW
                YORK MORTGAGE TRUST, INC., as Guarantor

               

               

              
                
                  By: /s/
                    Steven B. Schnall

                  Name:
                    Steven B. Schnall

                  Title:
                    Chief Executive Officer

                

              

            
	 
	
              DB
                STRUCTURED PRODUCTS, INC., as Buyer and Agent, as applicable

               

               

              
                By: /s/
                  Vincent D'Amore
Name:
                Vincent D'Amore

              Title:
                Authorized Signature

            
	 
	
              
                By:                                                                           
                    
Name:
                

              Title:

            
	 
	
              ASPEN
                FUNDING CORP., as Buyer and Agent, as applicable

               

               

              
                By: /s/
                  Doris J. Hearn
Name:
                Doris J. Hearn

              Title:
                Vice President

            
	 
	
              NEWPORT
                FUNDING CORP., as Buyer and Agent, as applicable

               

               

              
                By: /s/
                  Doris J. Hearn
Name:
                Doris J. Hearn

              Title:
                Vice President

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ANNEX
      I

    

    BUYER
      ACTING AS AGENT

    

    This
      Annex I forms a part of the Master Repurchase Agreement dated as of December
      13,
      2005 (the “Agreement”)
      among
      DB Structured Products, Inc., Aspen Funding Corp., Newport Funding Corp., NYMC
      Loan Corporation and New York Mortgage Trust, Inc. This Annex I sets forth
      the
      terms and conditions governing all transactions in which the Buyer selling
      assets or buying assets, as the case may be (“Agent”),
      in a
      Transaction is acting as agent for one or more third parties (each, a
“Principal”).
      Capitalized terms used but not defined in this Annex I shall have the meanings
      ascribed to them in the Agreement.

    

    
      	
              1.

            	
              Additional
                Representations.
                Agent hereby makes the following representations, which shall continue
                during the term of any Transaction: Principal has duly authorized
                Agent to
                execute and deliver the Agreement on its behalf, has the power to
                so
                authorize Agent and to enter into the Transactions contemplated by
                the
                Agreement and to perform the obligations of Seller or the related
                Buyer,
                as the case may be, under such Transactions, and has taken all necessary
                action to authorize such execution and delivery by Agent and such
                performance by it.

            

    

    

    
      	
              2.

            	
              Identification
                of Principals.
                Agent agrees (a) to provide the other party, prior to the date on
                which
                the parties agree to enter into any Transaction under the Agreement,
                with
                a written list of Principals for which it intends to act as Agent
                (which
                list may be amended in writing from time to time with the consent
                of the
                other party) and (b) to provide the other party, before the close
                of
                business on the next business day after orally agreeing to enter
                into a
                Transaction, with notice of the specific Principal or Principals
                for whom
                it is acting in connection with such Transaction. If (i) Agent fails
                to
                identify such Principal or Principals prior to the close of business
                on
                such next business day or (ii) the other party shall determine in
                its sole
                discretion any Principal or Principals identified by Agent are not
                acceptable to it, the other party may reject and rescind any Transaction
                with such Principal or Principals, return to Agent any Purchased
                Loans or
                portion of the Purchase Price, as the case may be, previously transferred
                to the other party and refuse any further performance under such
                Transaction, and Agent shall immediately return to the other party
                any
                portion of the Purchase Price or Purchased Loans, as the case may
                be,
                previously transferred to Agent in connection with such Transaction;
                provided, however, that (A) the other party shall promptly (and in
                any
                event within one business day) notify Agent of its determination
                to reject
                and rescind such Transaction and (B) to the extent that any performance
                was rendered by any party under any Transaction rejected by the other
                party, and such party shall remain entitled to any Price Differential
                or
                other amounts that would have been payable to it with respect to
                such
                performance if such Transaction had not been rejected. The other
                party
                acknowledges that Agent shall not have any obligation to provide
                it with
                confidential information regarding the financial status of its Principals;
                Agent agrees, however, that it will assist the other party in obtaining
                from Agent’s Principals such Information regarding the financial status of
                such Principals as the other party may reasonably
                request.

            

    

    

    
      	
              3.

            	
              Limitation
                of Agent’s Liability.
                The parties expressly acknowledge that if the representations of
                Agent
                under the Agreement, including this Annex I, are true and correct
                in all
                material respects during the term of any Transaction and Agent otherwise
                complies with the provisions of this Annex I, then (a) Agent’s obligations
                under the Agreement shall not include a guarantee of performance
                by its
                Principal or Principals; provided that Agent shall remain liable
                for
                performance pursuant to Section 11 of the Agreement, and (b) the
                other
                party’s remedies shall not include a right of setoff in respect of rights
                or obligations, if any, of Agent arising in other transactions in
                which
                Agent is acting as principal.

            

    

    

    
      
        
        

      

      
        Annex
          - 1

        
          

        

      

      
        
        

      

    

    
      	
              4.

            	
              Multiple
                Principals.

            

    

    

    
      	 	
              (a)

            	
              In
                the event that Agent proposes to act for more than one Principal
                hereunder, Agent and the other party shall elect whether (i) to treat
                Transactions under the Agreement as transactions entered into on
                behalf of
                separate Principals or (ii) to aggregate such Transactions as if
                they were
                transactions by a single Principal. Failure to make such an election
                in
                writing shall be deemed an election to treat Transactions under the
                Agreement as transactions on behalf of a single
                Principal.

            

    

    

    
      	 	
              (b)

            	
              In
                the event that Agent and the other party elect (or are deemed to
                elect) to
                treat Transactions under the Agreement as transactions on behalf
                of
                separate Principals, the parties agree that (i) Agent will provide
                the
                other party, together with the notice described in Section 2(b) of
                this
                Annex I, notice specifying the portion of each Transaction allocable
                to
                the account of each of the Principals for which it is acting (to
                the
                extent that any such Transaction is allocable to the account of more
                than
                one Principal); (ii) the portion of any individual Transaction allocable
                to each Principal shall be deemed a separate Transaction under the
                Agreement; (iii) the margin maintenance obligations of Seller under
                Section 6(a) of the Agreement shall be determined on a
                Transaction-by-Transaction basis (unless the parties agree to determine
                such obligations on a Principal-by-Principal basis); and (iv) Buyers’ and
                Seller’s remedies under the Agreement upon the occurrence of an Event of
                Default shall be determined as if Agent had entered into a separate
                Agreement with the other party on behalf of each of its
                Principals.

            

    

    

    
      	 	
              (c)

            	
              In
                the event that Agent and the other party elect to treat Transactions
                under
                the Agreement as if they were transactions by a single Principal,
                the
                parties agree that (i) Agent’s notice under Section 2(b) of this Annex I
                need only identify the names of its Principals but not the portion
                of each
                Transaction allocable to each Principal’s account; (ii) the margin
                maintenance obligations of Seller under Section 6(a) of the Agreement
                shall, subject to any greater requirement imposed by applicable law,
                be
                determined on an aggregate basis for all Transactions entered into
                by
                Agent on behalf of any Principal; and (iii) Buyer’s and Seller’s remedies
                upon the occurrence of an Event of Default shall be determined as
                if all
                Principals were a single Seller or Buyer, as the case may
                be.

            

    

    

    
      	 	
              (d)

            	
              Notwithstanding
                any other provision of the Agreement (including, without limitation,
                this
                Annex I), the parties agree that any Transactions by Agent on behalf
                of an
                employee benefit plan under ERISA shall be treated as Transactions
                on
                behalf of separate Principals in accordance with Section 4(b) of
                this
                Annex I (and all margin maintenance obligations of the parties shall
                be
                determined on a Transaction-by-Transaction
                basis).

            

    

    

    
      
        
        

      

      
        Annex
          - 2

        
          

        

      

      
        
        

      

    

    
      	
              5.

            	
              Interpretation
                of Terms.
                All references to “Seller” or “Buyer”, as the case may be, in the
                Agreement shall, subject to the provisions of this Annex I (including,
                among other provisions, the limitations on Agent’s liability in Section 3
                of this Annex 1), be construed to reflect that (i) each Principal
                shall
                have, in connection with any Transaction or Transactions entered
                into by
                Agent on its behalf, the rights, responsibilities, privileges and
                obligations of a “Seller” or “Buyer”, as the case may be, directly
                entering into such Transaction or Transactions with the other party
                under
                the Agreement, and (ii) Agent’s Principal or Principals have designated
                Agent as their sole agent for performance of Seller’s obligations to
                Buyers or Buyers’ obligations to Seller, as the case may be, and for
                receipt of performance by Buyers of their obligations to Seller or
                Seller
                of its obligations to Buyers as the case may be, in connection with
                any
                Transaction or Transactions under the Agreement (including, among
                other
                things, as Agent for each Principal in connection with transfers
                of
                securities, cash or other property and as agent for giving and receiving
                all notices under the Agreement). Both Agent and its Principal or
                Principals shall be deemed “parties” to the Agreement and all references
                to a “party” or “either party” in the Agreement shall be deemed revised
                accordingly.

            

    

    

    
      
        
        

      

      
        Annex
          - 3

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-1

    

    MONTHLY
      CERTIFICATION

    

    I,
      _______________________, _______________________ of NYMC Loan Corporation (the
      “Company”), do hereby certify that the Company is in compliance with all
      provisions and terms of the Master Repurchase Agreement, dated as of December
      13, 2005, by and among DB Structured Products, Inc., Aspen Funding Corp. and
      Newport Funding Corp., New York Mortgage Trust, Inc. and the
      Company.

    

    IN
      WITNESS WHEREOF, I have signed this certificate.

    

    Date:
      ____________, 200_

    
      	
              NYMC
                LOAN CORPORATION

               

               

            
	
              By:________________________

            
	
              Name:

            
	
              Title:

            

    

     

    [SEAL]

    

    I,
      ________________________, ___________________ of the Company, do hereby certify
      that _____________________ is the duly elected or appointed, qualified and
      acting __________________of the Company, and the signature set forth above
      is
      the genuine signature of such officer on the date hereof.

    

    
      
        
        

      

      
        A-1
          - 1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-2

    QUARTERLY
      CERTIFICATION

    

    I,
      _______________________, _______________________ of New York Mortgage Trust,
      Inc. (the “Guarantor”),
      in
      accordance with that certain Master Repurchase Agreement (“Agreement”),
      dated
      as of December 13, 2005, by and among DB Structured Products, Inc., Aspen
      Funding Corp. and Newport Funding Corp., NYMC Loan Corporation and the Guarantor
      do hereby certify that:

    
      	 	
              (i)

            	
              there
                have not been any modifications to the Acquisition Guidelines (referred
                to
                in (i) of the definition thereof) or the Underwriting Guidelines
                (referred
                to in (i) of the definition thereof) that have not been approved
                by
                Buyer;

            

    

    

    
      	 	
              (ii)

            	
              all
                additional modifications to the Acquisition Guidelines (referred
                to in (i)
                of the definition thereof) or the Underwriting Guidelines (referred
                to in
                (i) of the definition thereof) since the date of the most recent
                disclosure to Buyers of any modification thereto are set forth
                herewith;

            

    

    

    
      	 	
              (iii)

            	
              the
                Adjusted Tangible Net Worth of the Guarantor exceeds
                $90,000,000;

            

    

    

    
      	 	
              (iv)

            	
              the
                ratio of the Guarantor’s Total Indebtedness to Adjusted Tangible Net Worth
                is less than 15:1;

            

    

    

    
      	 	
              (v)

            	
              the
                Guarantor has maintained at all times during this fiscal quarter
                Liquidity
                of at least the greater of $15,000,000 and one percent (1%) of the
                unpaid
                principal balance of all assets of Guarantor under repurchase or
                secured
                credit arrangements to which the Guarantor is a party;
                and

            

    

    

    
      	 	
              (vi)

            	
              the
                Guarantor’s net income before taxes, for any period of two consecutive
                fiscal quarters (commencing with the period ending September, 2005),
                is
                not less than $1.00.

            

    

    

    Capitalized
      terms used but not defined herein shall have the meanings assigned thereto
      in
      the Agreement.

    

    IN
      WITNESS WHEREOF, I have signed this certificate.

    

    
      Date:
        ____________, 200_

       

    

    
      	
              NEW
                YORK MORTGAGE TRUST, INC.

               

            
	
               

            
	
              By:_________________________
                

              Name:

              Title:

            

    

     

    [SEAL]

    

    I,
      ________________________, ___________________ of the Guarantor, do hereby
      certify that _____________________ is the duly elected or appointed, qualified
      and acting __________________of the Guarantor, and the signature set forth
      above
      is the genuine signature of such officer on the date hereof.

    

    
      
        
        

      

      
        A-2
          - 1

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      B-1

    

    REPRESENTATIONS
      AND WARRANTIES WITH RESPECT TO LOANS OTHER THAN SMALL BALANCE COMMERCIAL
      LOANS

    

    All
      capitalized terms below shall have the definitions set forth in the
      Agreement.

    

    (a) Loans
      as Described.
      The
      information set forth on the Loan Schedule is complete, true and
      correct.

    

    (b) Payments
      Current.
      Other
      than Delinquent Loans which are subject to the sub-limits set forth on Exhibit
      A
      to the Pricing Side Letter, all
      payments required to be made up to the related Purchase Date for the Loan under
      the terms of the Note have been made and credited. Other than Delinquent Loans
      which are subject to the sub-limits set forth in the Pricing Side Letter, as
      of
      the date of the related Purchase Date, no payment required under the Loan is
      Delinquent nor has any payment under the Loan been Delinquent for thirty (30)
      days or more.

    

    (c) No
      Outstanding Charges.
      There
      are no defaults in complying with the terms of the Mortgage securing the Loan,
      and 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 an escrow of funds has been established in
      an
      amount sufficient to pay for every such item which remains unpaid and which
      has
      been assessed but is not yet due and payable. Neither the Seller nor the related
      Originator have advanced funds, or induced, solicited or knowingly received
      any
      advance of funds by a party other than the Mortgagor, directly or indirectly,
      for the payment of any amount required under the Loan, except for interest
      accruing from the date of the Note or date of disbursement of the Loan proceeds,
      whichever is earlier, to the day which precedes by one month the Due Date of
      the
      first installment of principal and interest.

    

    (d) Original
      Terms Unmodified.
      The
      terms of the Note and Mortgage have not been impaired, waived, altered or
      modified in any respect, except by a written instrument which has been recorded,
      if necessary to protect the interests of Buyers and which has been delivered
      to
      Custodian and the terms of which are reflected in the Loan Schedule. The
      substance of any such waiver, alteration or modification has been approved
      by
      the title insurer, to the extent required by the policy, and its terms are
      reflected on the Loan Schedule. No Mortgagor has been released, in whole or
      in
      part, except in connection with an assumption agreement approved by the title
      insurer, to the extent required by the policy, and which assumption agreement
      is
      part of the Mortgage File delivered to Custodian and the terms of which are
      reflected in the Loan Schedule.

    

    (e) No
      Defenses.
      The
      Loan is 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 Note or the Mortgage, or the exercise
      of
      any right thereunder, render either the Note or the Mortgage unenforceable,
      in
      whole or in part, or subject to any right of rescission, set-off, counterclaim
      or defense, including without limitation the defense of usury, and no such
      right
      of rescission, set-off, counterclaim or defense has been asserted with respect
      thereto. No Mortgagor was or is a debtor in any state or federal bankruptcy
      or
      insolvency proceeding at, or subsequent to, the time the Loan was originated
      or
      as of the date hereof.

    

    
      
        
        

      

      
        B-1
          - 1

        
          

        

      

      
        
        

      

    

    (f) Hazard
      Insurance.
      Pursuant to the terms of the Mortgage, all buildings or other improvements
      upon
      the Mortgaged Property are insured by a generally acceptable insurer against
      loss by fire, hazards of extended coverage and such other hazards as are
      customary in the area where the Mortgaged Property is located pursuant to
      insurance policies conforming to the requirements of Fannie Mae and Freddie
      Mac
      in an amount not less than the greater of (i) 100% of the replacement cost
      of
      all improvements to the Mortgaged Property or (ii) the outstanding principal
      balance of the Loan, but in any event at least equal to the amount necessary
      to
      avoid the operation of any co-insurance provisions with respect to the Mortgaged
      Property, and consistent with the amount that would have been required as of
      the
      date of origination in accordance with that required by Fannie Mae and Freddie
      Mac. If upon origination of the Loan, the Mortgaged Property was in an area
      identified in the Federal Register by the Federal Emergency Management Agency
      as
      having special flood hazards (and such flood insurance has been made available)
      a flood insurance policy meeting the requirements of the current guidelines
      of
      the Federal Flood Insurance Administration is in effect which policy conforms
      to
      the requirements of Fannie Mae and Freddie Mac. All individual insurance
      policies contain a standard mortgagee clause naming the originator and its
      successors and assigns as mortgagee, and all premiums thereon have been paid
      and
      such policies may not be reduced, terminated or cancelled without thirty (30)
      days’ prior written notice to the mortgagee. The Mortgage obligates the
      Mortgagor thereunder to maintain the hazard insurance policy at the Mortgagor’s
      cost and expense, and on the Mortgagor’s failure to do so, authorizes the holder
      of the Mortgage to obtain and maintain such insurance at such Mortgagor’s cost
      and expense, and to seek reimbursement therefor from the Mortgagor. Where
      required by state law or regulation, the Mortgagor has been given an opportunity
      to choose the carrier of the required hazard insurance, provided the policy
      is
      not a “master” or “blanket” hazard insurance policy covering the common
      facilities of a planned unit development. The hazard insurance policy is the
      valid and binding obligation of the insurer, is in full force and effect, and
      will be in full force and effect and inure to the benefit of Buyers upon the
      consummation of the transactions contemplated by this Agreement. Neither the
      Seller nor the related Originator have engaged in, and have no knowledge of
      the
      Mortgagor’s or any subservicer’s having engaged in, any act or omission which
      would impair the coverage of any such policy, the benefits of the endorsement
      provided for therein, or the validity and binding effect of either, including,
      without limitation, no unlawful fee, commission, kickback or other unlawful
      compensation or value of any kind has been or will be received, retained or
      realized by any attorney, firm or other person or entity, and no such unlawful
      items have been received, retained or realized by the Seller or the related
      Originator.

    

    (g) Compliance
      with Applicable Laws.
      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
      Loan have been complied with, the consummation of the transactions contemplated
      hereby will not involve the violation of any such laws or regulations and the
      Seller shall maintain in its possession, available for Buyers’ inspection, and
      shall deliver to Buyers, upon demand, evidence of compliance with all such
      requirements;

    

    (h) No
      Satisfaction of Mortgage.
      The
      Mortgage has not been satisfied, canceled, subordinated or rescinded, in whole
      or in part, and the Mortgaged Property has not been released from the lien
      of
      the Mortgage, in whole or in part, nor has any instrument been executed that
      would effect any such release, cancellation, subordination or rescission.
      Neither the Seller nor the related Originator have waived the performance by
      the
      Mortgagor of any action, if the Mortgagor’s failure to perform such action would
      cause the Loan to be in default, nor has the Seller or the related Originator
      waived any default resulting from any action or inaction by the
      Mortgagor.

    

    
      
        
        

      

      
        B-1
          - 2

        
          

        

      

      
        
        

      

    

    (i) Location
      and Type of Mortgaged Property.
      The
      Mortgaged Property is a fee simple property located in the state identified
      in
      the Loan Schedule and is not secured by an interest in a leasehold estate,
      the
      Mortgaged Property consists of a single parcel of real property with a detached
      single family residence erected thereon, or a two- to four- family dwelling,
      or
      a Fannie Mae eligible condominium project, or an individual unit in a planned
      unit development or a co-operative unit and such residence or dwelling is not
      a
      mobile home or a manufactured home (other than a Manufactured Home),
provided,
      however
      that any
      condominium unit or planned unit development shall not fall within any of the
      “Ineligible Projects” of part VIII, Section 102 of the Fannie Mae Selling Guide
      and shall conform with the Acquisition Guidelines or Underwriting Guidelines
      (as
      applicable). No portion of the Mortgaged Property is used for commercial
      purposes; provided that Mortgaged Properties which contain a home office shall
      not be considered as being used for commercial purposes as long as the Mortgaged
      Property has not been altered for commercial purposes and is not storing any
      chemicals or raw materials other than those commonly used for homeowner repair,
      maintenance and/or household purposes. With respect to each Loan that is a
      Manufactured Home, such unit is a “single family residence” within the meaning
      of Section 25(e)(1) of the Code, and has a minimum of 400 square feet of living
      space, a minimum width of 102 inches and is of a kind customarily used at a
      fixed location. The fair market value of the Manufactured Home securing each
      contract was at least equal to 80% of the adjusted issue price of the contract
      at either (i) the time the contract was originated (determined pursuant to
      the
      REMIC Provisions) or (ii) the time the contract is transferred to the
      purchaser.

    

    (j) Valid
      First or Second Lien.
      The
      Mortgage (including any Negative Amortization that may arise thereunder in
      respect of an Option ARM Loan, to the extent permitted under the Pricing Side
      Letter) is a valid, subsisting, enforceable and perfected first or second
      priority lien and first or second priority security interest on the Mortgaged
      Property, including all buildings on the Mortgaged Property and all
      installations and mechanical, electrical, plumbing, heating and air conditioning
      systems located in or annexed to such buildings, and all additions, alterations
      and replacements made at any time with respect to the foregoing. The lien of
      the
      Mortgage is subject only to:

    

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

    

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

    

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

    

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

    

    Any
      Security Agreement, chattel mortgage or equivalent document related to and
      delivered in connection with the Loan establishes and creates a valid,
      subsisting and enforceable (i) first lien and first priority perfected security
      interest with respect to each First Lien Mortgage Loan, or (ii) second lien
      and
      second priority perfected security interest with respect to each Second Lien
      Mortgage Loan, in either case, on the property described therein and the Seller
      has full right to sell and assign the same to the related Buyer. Except with
      respect to any Second Lien Mortgage Loan, the Mortgaged Property was not, as
      of
      the date of origination of the Loan, subject to a mortgage, deed of trust,
      deed
      to secure debt or other security instrument creating a lien subordinate to
      the
      lien of the Mortgage.

    

    (k) Validity
      of Loan Documents.
      The
      Note, the Mortgage and any other agreement executed and delivered by a Mortgagor
      or guarantor, if applicable, in connection with the Loan are genuine, and each
      is the legal, valid and binding obligation of the maker thereof enforceable
      in
      accordance with its terms. All parties to the Note, the Mortgage and any other
      related agreement had legal capacity to enter into the Loan and to execute
      and
      deliver the Note, the Mortgage and any other related agreement, and the Note,
      the Mortgage and any other related agreement have been duly and properly
      executed by such parties. The documents, instruments and agreements submitted
      for loan underwriting were not falsified and contain no untrue statement of
      material fact or omit to state a material fact required to be stated therein
      or
      necessary to make the information and statements therein not misleading. No
      fraud, error, negligence, misrepresentation or omission of fact with respect
      to
      a Loan has taken place on the part of the Seller, the related Originator or
      the
      Mortgagor or any other party involved in the origination or servicing of the
      Loan. The Seller and the related Originator have reviewed all of the documents
      constituting the Servicing File and have made such inquiries as they deem
      necessary to make and confirm the accuracy of the representations set forth
      herein.

    

    
      
        
        

      

      
        B-1
          - 3

        
          

        

      

      
        
        

      

    

    (l) Full
      Disbursement of Proceeds.
      The
      Loan has been closed and the proceeds of the Loan have been fully disbursed
      and
      there is no requirement for future advances thereunder, and any and all
      requirements as to completion of any on-site or off-site improvement and as
      to
      disbursements of any escrow funds therefor have been complied with. All costs,
      fees and expenses incurred in making or closing the Loan and the recording
      of
      the Mortgage were paid, and the Mortgagor is not entitled to any refund of
      any
      amounts paid or due under the Note or Mortgage.

    

    (m) Ownership.
      Immediately prior to the date hereof, the related Originator, and on the date
      hereof the Seller is the sole owner of record and holder of the Loan. The Loan
      is not assigned or pledged, and the Seller has good, indefeasible and marketable
      title thereto, and has full right to transfer and sell the Loan therein to
      the
      related Buyer free and clear of any encumbrance, equity, participation interest,
      lien, pledge, charge, claim or security interest, and has full right and
      authority subject to no interest or participation of, or agreement with, any
      other party, to sell and assign each Loan pursuant to this Agreement and
      following the sale of each Loan, the related Buyer will own such Loan free
      and
      clear of any encumbrance, equity, participation interest, lien, pledge, charge,
      claim or security interest.

    

    (n) Doing
      Business.
      All
      parties which have had any interest in the Loan, whether as Mortgagee, assignee,
      pledgee or otherwise, are (or, during the period in which they held and disposed
      of such interest, were) (1) in compliance with any and all applicable licensing
      requirements of the laws of the state wherein the Mortgaged Property is located,
      and (2) organized under the laws of such state, or (3) qualified to do business
      in such state, or (4) federal savings and loan associations or national banks
      having principal offices in such state, or (5) not doing business in such
      state.

    

    (o) Title
      Insurance.
      The
      Loan is covered by an ALTA lender’s title insurance policy or other generally
      acceptable form of policy of insurance acceptable to Fannie Mae or Freddie
      Mac,
      issued by a title insurer acceptable to Fannie Mae or Freddie Mac and qualified
      to do business in the jurisdiction where the Mortgaged Property is located,
      insuring the Mortgagee, its successors and assigns, as to the first priority
      lien of the Mortgage in the original principal amount of the Loan (including,
      to the extent a Note provides for Negative Amortization, the maximum amount
      of
      Negative Amortization in accordance with the Mortgage),
      and
      against any loss by reason of the invalidity or unenforceability of the lien
      resulting from the provisions of the Mortgage providing for adjustment in the
      Mortgage Interest Rate, Monthly Payment
      and
      Negative Amortization, subject
      only to the exceptions contained in clauses (A), (B), and (C), and with respect
      to each Second Lien Mortgage Loan, clause (D) of Paragraph (j) of this Exhibit
      B. Where required by state law or regulation, the Mortgagor has been given
      the
      opportunity to choose the carrier of the required mortgage title insurance.
      Additionally, such lender’s title insurance policy affirmatively insures ingress
      and egress, and against encroachments by or upon the Mortgaged Property or
      any
      interest therein. The title policy does not contain any special exceptions
      (other than the standard exclusions) for zoning and uses and has been marked
      to
      delete the standard survey exception or to replace the standard survey exception
      with a specific survey reading. The Mortgagee, its successors and assigns is
      the
      sole insured of such lender’s title insurance policy, and such lender’s title
      insurance policy is in full force and effect and will be in force and effect
      upon the consummation of the transactions contemplated by this Agreement. No
      claims have been made under such lender’s title insurance policy, and no prior
      holder or servicer of the Mortgage, including Seller and Guarantor, have done,
      by act or omission, anything which would impair the coverage of such lender’s
      title insurance policy, including, without limitation, no unlawful fee,
      commission, kickback or other unlawful compensation or value of any kind has
      been or will be received, retained or realized by any attorney, firm or other
      Person, and no such unlawful items have been received, retained or realized
      by
      Seller or Guarantor.

    

    
      
        
        

      

      
        B-1
          - 4

        
          

        

      

      
        
        

      

    

    (p) No
      Defaults.
      There
      is no default, breach, violation or event of acceleration existing under the
      Mortgage or the Note and no event which, with the passage of time or with notice
      and the expiration of any grace or cure period, would constitute a default,
      breach, violation or event of acceleration, and neither Seller, Guarantor nor
      any of their predecessors have waived any default, breach, violation or event
      of
      acceleration. With respect to each Second Lien Mortgage Loan, (i) the prior
      mortgage is in full force and effect, (ii) there is no default, breach,
      violation or event of acceleration existing under such prior mortgage or the
      related mortgage note, (iii) no event which, with the passage of time or with
      notice and the expiration of any grace or cure period, would constitute a
      default, breach, violation or event of acceleration thereunder, and either
      (A)
      the prior mortgage contains a provision which allows or (B) applicable law
      requires, the mortgagee under the Second Lien Mortgage Loan to receive notice
      of, and affords such mortgagee an opportunity to cure any default by payment
      in
      full or otherwise under the prior mortgage.

    

    (q) No
      Mechanics’ Liens.
      There
      are no mechanics’ or similar liens or claims which have been filed for work,
      labor or material (and no rights are outstanding that under the law could give
      rise to such liens) affecting the related Mortgaged Property which are or may
      be
      liens prior to, or equal or coordinate with, the lien of the related
      Mortgage.

    

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

    

    (s) Origination;
      Payment Terms.
      At the
      time the Loan was originated, the originator was a mortgagee approved by the
      Secretary of Housing and Urban Development pursuant to Sections 203 and 211
      of
      the National Housing Act or a savings and loan association, a savings bank,
      a
      commercial bank or similar banking institution which is supervised and examined
      by a Federal or State authority. Except for an Option ARM Loan (to the extent
      permitted under the Pricing Side Letter), no Loan is a Negative Amortization
      Loan. Except for an Interest-Only Loan or Option ARM Loan (each to the extent
      permitted under the Pricing Side Letter), principal payments on the Loan
      commenced no more than sixty (60) days after funds were disbursed in connection
      with the Loan. The Mortgage Interest Rate is adjusted, with respect to
      adjustable rate Loans, on each Adjustment Date to equal the applicable Index
      plus the Gross Margin (rounded up or down to the nearest 0.125%), subject to
      the
      Maximum Mortgage Interest Rate. Except for an Interest-Only Loan or Option
      ARM
      Loan (each to the extent permitted under the Pricing Side Letter), the Note
      is
      payable on the first day of each month in equal monthly installments of
      principal and interest, which installments of interest, with respect to an
      Adjustable Rate Mortgage Loan, are subject to change due to the adjustments
      to
      the Mortgage Interest Rate on each Adjustment Date, with interest calculated
      and
      payable in arrears, sufficient to amortize the Loan fully by the stated maturity
      date, over an original term of not more than thirty (30) years from commencement
      of amortization. The Due Date of the first payment under the Note is no more
      than sixty (60) days from the date of the Note. With respect to each
      Interest-Only Loan, the interest-only period shall not exceed the period
      specified on the Loan Schedule and following the expiration of such
      interest-only period, the remaining Monthly Payments shall be sufficient to
      fully amortize the original principal balance over the remaining term of the
      Loan. With
      respect to an Option ARM Loan
      (to the
      extent permitted under the Pricing Side Letter),
      the
      related Note requires a Monthly Payment which is sufficient during the period
      following each Payment Adjustment Date, to fully amortize the outstanding
      principal balance as of the first day of such period (including any Negative
      Amortization) over the then remaining term of such Note and to pay interest
      at
      the related Mortgage Interest Rate; provided that the Monthly Payment shall
      not
      increase to an amount that exceeds 107.5% of the amount of the Monthly Payment
      that was due immediately prior to the Payment Adjustment Date; provided,
      further, that the payment adjustment cap shall not be applicable with respect
      to
      the adjustment made to the Monthly Payment that occurs in a year in which the
      Loan has been outstanding for a multiple of five (5) years and in any such
      year
      the Monthly Payment shall be adjusted to fully amortize the Loan over the
      remaining term. 

    

    
      
        
        

      

      
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    (t) Customary
      Provisions.
      The
      Mortgage contains customary and enforceable provisions such as to render the
      rights and remedies of the holder thereof adequate for the realization against
      the Mortgaged Property of the benefits of the security provided thereby,
      including, (i) in the case of a Mortgage designated as a deed of trust, by
      trustee’s sale, and (ii) otherwise by judicial foreclosure. Upon default by a
      Mortgagor on a Loan and foreclosure on, or trustee’s sale of, the Mortgaged
      Property pursuant to the proper procedures, the holder of the Loan will be
      able
      to deliver good and merchantable title to the Mortgaged Property. There is
      no
      homestead or other exemption available to the Mortgagor which would interfere
      with the right to sell the Mortgaged Property at a trustee’s sale or the right
      to foreclose the Mortgage subject to applicable federal and state laws and
      judicial precedent with respect to bankruptcy and right of
      redemption.

    

    (u) Conformance
      with Acquisition Guidelines, Underwriting Guidelines and Agency
      Standards.
      The
      Loan was acquired or underwritten in accordance with the Acquisition Guidelines
      or the Underwriting Guidelines, as to the case may be, in effect at the time
      the
      Loan was originated. The Note and Mortgage are on forms acceptable to Fannie
      Mae
      or Freddie Mac and Seller and Guarantor have not made any representations to
      a
      Mortgagor that are inconsistent with the mortgage instruments used.

    

    (v) Occupancy
      of the Mortgaged Property.
      As of
      the related Purchase Date the Mortgaged Property is lawfully occupied under
      applicable law. All inspections, licenses and certificates required to be made
      or issued with respect to all occupied portions of the Mortgaged Property and,
      with respect to the use and occupancy of the same, including but not limited
      to
      certificates of occupancy and fire underwriting certificates, have been made
      or
      obtained from the appropriate authorities. Seller and Guarantor have not
      received notification from any Governmental Authority that the Mortgaged
      Property is in material non-compliance with such laws or regulations, is being
      used, operated or occupied unlawfully or has failed to have or obtain such
      inspection, licenses or certificates, as the case may be. Seller and Guarantor
      have not received notice of any violation or failure to conform with any such
      law, ordinance, regulation, standard, license or certificate.

    

    (w) No
      Additional Collateral.
      The
      Note is not and has not been secured by any collateral except the lien of the
      corresponding Mortgage and the security interest of any applicable Security
      Agreement or chattel mortgage referred to in Paragraph (j) above.

    

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

    

    
      
        
        

      

      
        B-1
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    (y) Acceptable
      Investment.
      The
      Mortgagor is not in bankruptcy or insolvent and Seller and Guarantor have no
      knowledge of any circumstances or conditions with respect to the Mortgage,
      the
      Mortgaged Property, the Mortgagor or the Mortgagor’s credit standing that can
      reasonably be expected to cause private institutional investors to regard the
      Loan as an unacceptable investment, cause the Loan to become Delinquent, or
      adversely affect the value or marketability of the Loan.

    

    (z) Delivery
      of Mortgage Loan Documents.
      Other
      than with respect to Wet-Ink Mortgage Loans, the Note, the Mortgage, the
      Assignment of Mortgage and any other documents required to be delivered by
      Seller under this Agreement have been delivered to Buyers or Custodian, and
      Seller is in possession of a complete, true and accurate Mortgage File in
      compliance with Section 2 of the Custodial Agreement, except for such documents
      the originals of which have been delivered to Buyers or Custodian.

    

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

    

    (bb) Transfer
      of Loans.
      The
      Assignment of Mortgage is in recordable form and is acceptable for recording
      under the laws of the jurisdiction in which the Mortgaged Property is
      located.

    

    (cc) No
      Buydown Provisions; No Graduated Payments or Contingent
      Interests.
      The
      Loan does not contain provisions pursuant to which Monthly Payments are paid
      or
      partially paid with funds deposited in any separate account established by
      Seller, the Mortgagor or anyone on behalf of the Mortgagor, or paid by any
      source other than the Mortgagor nor does it contain any other similar provisions
      currently in effect which may constitute a “buydown” provision. The Loan is not
      a graduated payment mortgage loan and the Loan does not have a shared
      appreciation or other contingent interest feature.

    

    (dd) Consolidation
      of Future Advances.
      Any
      future advances made prior to the related Purchase Date have been consolidated
      with the outstanding principal amount secured by the Mortgage, and the secured
      principal amount, as consolidated, bears a single interest rate and single
      repayment term. The lien of the Mortgage securing the consolidated principal
      amount (including any Negative Amortization) is expressly insured as having
      first or second lien priority by a title insurance policy, an endorsement to
      the
      policy insuring the Mortgagee’s consolidated interest (including any Negative
      Amortization) or by other title evidence acceptable to Fannie Mae and Freddie
      Mac. Except with respect to an Option ARM Loan (to the extent permitted under
      the Pricing Side Letter), the consolidated principal amount does not exceed
      the
      original principal amount of the Loan. 

    

    (ee) Mortgaged
      Property Undamaged.
      There
      is no proceeding pending or threatened for the total or partial condemnation
      of
      the Mortgaged Property. The Mortgaged Property is undamaged by waste, fire,
      earthquake or earth movement, windstorm, flood, tornado or other casualty so
      as
      to affect adversely the value of the Mortgaged Property as security for the
      Loan
      or the use for which the premises were intended.

    

    (ff) Collection
      Practices; Escrow Deposits; Adjustable Rate Mortgage Loan
      Adjustments.
      The
      origination and collection practices used with respect to the Loan have been
      in
      accordance with Accepted Servicing Practices and in all respects in compliance
      with all applicable laws and regulations. With respect to escrow deposits and
      Escrow Payments (other than with respect to Second Lien Mortgage Loans for
      which
      the mortgagee under the prior mortgage lien is collecting Escrow Payments),
      all
      such payments are in the possession of Seller, Servicer or any third-party
      servicer and there exist no deficiencies in connection therewith for which
      customary arrangements for repayment thereof have not been made. Each Loan
      is
      covered by a life of loan tax service contract. All Escrow Payments have been
      collected in full compliance with state and federal laws. An escrow of funds
      is
      not prohibited by applicable law and has been established in an amount
      sufficient to pay for every item which remains unpaid and which has been
      assessed but is not yet due and payable. No escrow deposits or Escrow Payments
      or other charges or payments due Seller have been capitalized under the Mortgage
      or the Note. All Mortgage Interest Rate adjustments have been made in strict
      compliance with state and federal laws and the terms of the related Note. Any
      interest required to be paid pursuant to state and local laws has been properly
      paid and credited.

    

    
      
        
        

      

      
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    (gg) Appraisal.
      The
      Servicing File includes an appraisal of the Mortgaged Property signed prior
      to
      the final approval of the Mortgage application by an appraiser qualified under
      Fannie Mae and Freddie Mac guidelines who at that time (i) was licensed in
      the
      state where the Mortgaged Property is located, (ii) had no interest, direct
      or
      indirect, in the Mortgaged Property or in any Loan or the security therefor,
      and
      (iii) did not receive compensation that was affected by the approval or
      disapproval of the Loan. The appraisal shall have been made within one hundred
      and eighty (180) days of the origination of the Loan, be completed in compliance
      with the Uniform Standards of Professional Appraisal Practice and all applicable
      Federal and state laws and regulations. If the appraisal was made more than
      one
      hundred and twenty (120) days before the origination of the Loan, Seller shall
      have received and included in the Servicing File a recertification of the
      appraisal.

    

    (hh) Servicemembers’
      Civil Relief Act.
      The
      Mortgagor has not notified Seller or Guarantor, and Seller and Guarantor have
      no
      knowledge of, any relief requested or allowed to the Mortgagor under the
      Servicemembers’ Civil Relief Act or any similar state statute.

    

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

    

    (jj) No
      Construction Loans.
      No Loan
      was made in connection with (a) facilitating the trade-in or exchange of a
      Mortgaged Property or (b) the construction or rehabilitation of a Mortgaged
      Property, unless the Loan is a construction-to-permanent mortgage loan listed
      on
      the Loan Schedule which has been fully disbursed, all construction work is
      complete and a completion certificate has been issued.

    

    (kk) No
      Denial of Insurance.
      No
      action, inaction, or event has occurred and no state of fact exists or has
      existed that has resulted or will result in the exclusion from, denial of,
      or
      defense to coverage under any applicable pool insurance policy, primary mortgage
      insurance policy, special hazard insurance policy, or bankruptcy bond,
      irrespective of the cause of such failure of coverage. In connection with the
      placement of any such insurance, no commission, fee, or other compensation
      has
      been or will be received by Seller or the related Originator or any designee
      of
      Seller or the related Originator or any corporation in which Seller or the
      related Originator or any officer, director, or employee had a financial
      interest at the time of placement of such insurance.

    

    (ll) Regarding
      the Mortgagor.
      The
      Mortgagor is one or more natural persons and/or trustees for an Illinois land
      trust or a trustee under a “living trust” and such “living trust” is in
      compliance with Fannie Mae guidelines for such trusts.

    

    
      
        
        

      

      
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    (mm) Mortgagor
      Acknowledgment.
      The
      Mortgagor has received all disclosure materials required by applicable law
      with
      respect to the making of Adjustable Rate Mortgage Loans. Seller shall maintain
      such documents in the Servicing File.

    

    (nn) Predatory
      Lending Regulations.
      No Loan
      is a High Cost Loan.

    

    (oo) Qualified
      Mortgage.
      The
      Loan is a “qualified mortgage” within the meaning of Section 860G(a)(3) or any
      successor provision thereof of the Code.

    

    (pp) Insurance.
      Seller
      has caused or will cause to be performed any and all acts required to preserve
      the rights and remedies of Buyers in any insurance policies applicable to the
      Loans including, without limitation, any necessary notifications of insurers,
      assignments of policies or interests therein, and establishments of coinsured,
      joint loss payee and mortgagee rights in favor of Buyer.

    

    (qq) Simple
      Interest Mortgage Loans.
      None of
      the Loans are simple interest Loans.

    

    (rr) Prepayment
      Fee.
      With
      respect to each Loan that has a prepayment fee feature, each such prepayment
      fee
      is enforceable and was originated in compliance with all applicable federal,
      state and local laws and will be enforced by Seller for the benefit of Buyers,
      and is only payable (i) with respect to a Loan originated prior to October
      1,
      2002, during the first 5 years of the term of the Loan, and (ii) with respect
      to
      a Loan originated on or after October 1, 2002, during the first 3 years of
      the
      term of the Loan.

    

    (ss) Flood
      Certification Contract.
      Seller
      shall have obtained a life of loan, transferable flood certification contract
      for each Loan and shall assign all such contracts to Buyer.

    

    (tt) CLTV.
      No
      First Lien Mortgage Loan or Second Lien Mortgage Loan has a CLTV in excess
      of
      100%;

    

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

    

    (vv) Wet-Ink
      Mortgage Loans.
      With
      respect to each Wet-Ink Mortgage Loan, the Settlement Agent has been instructed
      in writing by Seller to hold the related Mortgage File as agent and bailee
      for
      Buyers or Buyers’ agent and to promptly forward such Mortgage File in accordance
      with the provisions of the Custodial Agreement and the Escrow Instruction
      Letter.

    

    (ww) No
      Equity Participation.
      No
      document relating to the Loan provides for any contingent or additional interest
      in the form of participation in the cash flow of the Mortgaged Property or
      a
      sharing in the appreciation of the value of the Mortgaged Property. The
      indebtedness evidenced by the Note is not convertible to an ownership interest
      in the Mortgaged Property or the Mortgagor and Seller and Guarantor have not
      financed nor do they own directly or indirectly, any equity of any form in
      the
      Mortgaged Property or the Mortgagor.

    

    (xx) Proceeds
      of Loan.
      The
      proceeds of the Loan have not been and shall not be used to satisfy, in whole
      or
      in part, any debt owed or owing by the Mortgagor to Seller or any Affiliate
      or
      correspondent thereof unless such debt was originated more than 12 months prior
      to the origination of such Loan.

    

    (yy) Withdrawn
      Loans.
      If the
      Loan has been released to Seller or its designee pursuant to a Request for
      Release as permitted under Section 5(a) or 5(b) of the Custodial Agreement,
      then
      the Note relating to the Loan was returned to Custodian within ten (10) calendar
      days and if released under a bailee letter pursuant to Section 5(c), such Note
      was returned within forty-five (45) calendar days.

    

    
      
        
        

      

      
        B-1
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    (zz) Origination
      Date.
      Other
      than Delinquent Loans which are subject to the sub-limits set forth in the
      Pricing Side Letter, the origination date is no earlier than ninety (90) days
      prior to the date the Loan is initially purchased by the related
      Buyer.

    

    (aaa) No
      Exception.
      Custodian has not noted any material exceptions on a Loan Schedule as an
      Exception (as defined in the Custodial Agreement) with respect to the Loan
      which
      would materially and adversely affect the Loan or the related Buyer’s ownership
      of the Loan, unless consented to by the related Buyer.

    

    (bbb) Mortgage
      Submitted for Recordation.
      The
      Mortgage either has been or will promptly be submitted for recordation in the
      appropriate governmental recording office of the jurisdiction where the
      Mortgaged Property is located.

    

    (ccc) Endorsements.
      Each
      Note has been endorsed by a duly authorized officer of Seller or Guarantor
      for
      its own account and not as a fiduciary, trustee, trustor or beneficiary under
      a
      trust agreement.

    

    (ddd) Accuracy
      of Information.
      All
      information provided to Buyers by Seller and Guarantor with respect to the
      Loans
      is accurate in all material respects.

    

    (eee) Servicing.
      The
      Servicer is the servicer of the Loans.

    

    (fff) Single
      Premium Credit Insurance.
      No
      Mortgagor is offered or required to purchase single premium credit insurance
      in
      connection with the origination of the related Loan.

    

    (ggg) Insured
      Closing Letters.
      With
      respect to each Eligible Loan that is a Wet-Ink Mortgage Loan, Seller has
      received an insured closing letter from the related Settlement
      Agent. 

    

    (hhh) MIP
      Insurance.
      With
      respect to each Loan insured by HUD or the Department of Veterans Affairs,
      all
      insurance premiums (“MIP”)
      payable
      to HUD or the Department of Veterans Affairs, as applicable, in connection
      with
      such Loan were paid within the timeframe required by such agency to avoid the
      imposition of any late fees or penalty fees.

    

    (iii) MIP
      Insurance Certificate.
      With
      respect to each Loan insured by HUD or the Department of Veterans Affairs,
      Seller or Guarantor have received the related insurance certificate from the
      applicable agency evidencing such insurance within sixty (60) days of the
      origination date of such Loan.

    

    (jjj) MIP
      Documents.
      With
      respect to each Loan insured by HUD or the Department of Veterans Affairs,
      Seller or Guarantor have submitted all documents required by the applicable
      agency to insure such Loan (regardless of whether such documents are required
      to
      be contained in the related Servicing File) within thirty (30) days of the
      origination date of such Loan.

    

    (kkk) MIP
      Access.
      With
      respect to each Loan insured by HUD or the Department of Veterans Affairs,
      Seller or Guarantor have provided access to Buyers to the lender number,
      password or any other information that may be required by the applicable agency
      or otherwise for Buyers to verify that the related MIP payments have been
      made.

    

    
      
        
        

      

      
        B-1
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    (lll) Georgia
      Loans.
      No Loan
      originated on or after October 1, 2002 and prior to March 7, 2003 is secured
      by
      property located in the State of Georgia.

    

    (mmm) [Reserved]

    

    (nnn) Fair
      Credit Reporting Act.
      Each of
      the Seller and any predecessor servicer has fully furnished, in accordance
      with
      the Fair Credit Reporting Act and its implementing regulations, accurate and
      complete information (e.g., favorable and unfavorable) on its borrower credit
      files to Equifax, Experian and Trans Union Credit Information Company (three
      of
      the credit repositories), on a monthly basis; and the Seller will fully furnish,
      in accordance with the Fair Credit Reporting Act and its implementing
      regulations, accurate and complete information (e.g., favorable and unfavorable)
      on its borrower credit files to Equifax, Experian and Trans Credit Information
      Company (three of the credit repositories), on a monthly basis.

    

    (ooo) Predatory
      Lending Practices.
      No
      predatory, abusive or deceptive lending practices, including but not limited
      to,
      the extension of credit to a Mortgagor without regard for the Mortgagor’s
      ability to repay the Loan and the extension of credit to a Mortgagor which
      has
      no tangible net benefit to the Mortgagor, were employed in connection with
      the
      origination of the Loan. Each Loan is in compliance with the anti-predatory
      lending eligibility for purchase requirements of Fannie Mae’s Selling
      Guide.

    

    (ppp) USA
      Patriot Act of 2001.
      Each of
      the Seller and Guarantor has complied with all applicable anti-money laundering
      laws and regulations, including without limitation the USA Patriot Act of 2001
      (collectively, the “Anti-Money
      Laundering Laws”).
      Each
      of the Seller and Guarantor has established an anti-money laundering compliance
      program as required by the Anti-Money Laundering Laws, has conducted the
      requisite due diligence in connection with the origination of each Loan for
      purposes of the Anti-Money Laundering Laws, including with respect to the
      legitimacy of the applicable mortgagor and the origin of the assets used by
      the
      said mortgagor to purchase the property in question, and maintains, and will
      maintain, sufficient information to identify the applicable mortgagor for
      purposes of the Anti-Money Laundering Laws. No Loan is subject to nullification
      pursuant to Executive Order 13224 (the “Executive
      Order”)
      or the
      regulations promulgated by the Office of Foreign Assets Control of the United
      States Department of the Treasury (the “OFAC
      Regulations”)
      or in
      violation of the Executive Order or the OFAC Regulations, and no Mortgagor
      is
      subject to the provisions of such Executive Order or the OFAC Regulations nor
      listed as a “blocked person” for purposes of the OFAC Regulations.

    

    (qqq) Compliance
      with Predatory Laws.
      Any and
      all requirements of any federal, state or local predatory and abusive lending
      laws applicable to the origination and servicing of mortgage loans of a type
      similar to the Loans have been complied with and the consummation of the
      transactions contemplated hereby will not involve the violation of any such
      laws, and the Seller shall maintain in its possession, available for the
      inspection of the Buyers or their designees, and shall deliver to the Buyers
      or
      their designees, upon two business days’ request, evidence of compliance with
      such requirements.

    

    (rrr) Eligibility
      Criteria.
      The
      Loan is an Eligible Loan and complies with any other eligibility requirements
      set forth in the Pricing Side Letter.

    

    (sss) MERS
      Designated Mortgage Loans.
      With
      respect to each MERS Designated Mortgage Loans, a Mortgage Identification Number
      has been assigned by MERS and such Mortgage Identification Number is accurately
      provided on the Loan Schedule. The related Assignment of Mortgage to MERS has
      been duly and properly recorded. With respect to each MERS Mortgage Loan, no
      Mortgagor has received any notice of liens or legal actions with respect to
      such
      Mortgage Loan and no such notices have been electronically posted by
      MERS.

    

    
      
        
        

      

      
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    (ttt) No
      Litigation.
      There
      is no pending or to the knowledge of the Seller, threatened action, proceeding
      or investigation by or before any court, governmental or administrative agency
      or arbitrator affecting any of the loans.

    

    (uuu) Validity
      of Loans.
      With
      respect to each Cooperative Loan, each Coop Pledge Agreement creates a valid,
      enforceable and subsisting first security interest in the collateral securing
      the related Mortgage Note subject only to (a) the lien of the related
      Cooperative for unpaid assessments representing the Mortgagor’s pro rata share
      of the Cooperative’s payments for its blanket mortgage, current and future real
      property taxes, insurance premiums, maintenance fees and other assessments
      to
      which like collateral is commonly subject and (b) other matters to which like
      collateral is commonly subject which do not materially interfere with the
      benefits of the security intended to be provided by the Coop Pledge Agreement;
      provided, however, that the appurtenant Proprietary Lease may be subordinated
      or
      otherwise subject to the lien of any mortgage on the Project. There are no
      liens
      against or security interests in the collateral which have priority over the
      lender's security interest in the collateral, and such priority interest cannot
      be created in the future.

    

    (vvv) Due
      Execution.
      With
      respect to each Cooperative Loan, all parties to the Mortgage Note and the
      Mortgage Loan had legal capacity to execute and deliver the Mortgage Note,
      the
      Coop Pledge Agreement, the Proprietary Lease, the Stock Power, the Recognition
      Agreement, the Financing Statement and the Assignment of the Proprietary Lease
      and such documents have been duly and properly executed by such parties. Each
      Stock Power (i) has all signatures guaranteed or (ii) if all signatures are
      not
      guaranteed, then such Cooperative Shares will be transferred by the stock
      transfer agent of the Cooperative if the Seller undertakes to convert the
      ownership of the collateral securing the related Cooperative Loan.

    (www) No
      Default.
      With
      respect to each Cooperative Loan, there is no default in complying with the
      terms of the Mortgage Note, the Coop Pledge Agreement and the Proprietary Lease
      and all maintenance charges and assessments (including assessments payable
      in
      the future installments, which previously became due and owing) have been paid.
      The Seller has the right under the terms of the Mortgage Note, Coop Pledge
      Agreement and Recognition Agreement to pay any maintenance charges or
      assessments owed by the Mortgagor.

    (xxx) Cooperative
      Lien Search.
      With
      respect to each Cooperative Loan, a Cooperative Lien Search has been made by
      a
      company competent to make the same which company is acceptable to FNMA and
      qualified to do business in the jurisdiction where the Cooperative Apartment
      is
      located.

    

    (yyy) Coop
      Pledge Agreement.
      With
      respect to each Cooperative Loan, each Coop Pledge Agreement contains
      enforceable provisions such as to render the rights and remedies of the holder
      thereof adequate for the realization of the benefits of the security provided
      thereby. The Coop Pledge Agreement contains an enforceable provision for the
      acceleration of the payment of the unpaid principal balance of the Mortgage
      Note
      in the event the Cooperative Apartment is transferred or sold without the
      consent of the holder thereof.

    

    (zzz) Lawful
      Occupation.
      In the
      case of a Cooperative Loan, the related Cooperative Apartment is lawfully
      occupied under applicable law; all inspections, licenses and certificates
      required to be made or issued with respect to all occupied portions of the
      Cooperative Apartment and the related Project and, with respect to the use
      and
      occupancy of the same, including but not limited to certificates of occupancy,
      have been made or obtained from the appropriate authorities.

    

    (aaaa) Proprietary
      Lease.
      With
      respect to each Cooperative Loan, (i) the terms of the related Proprietary
      Lease
      is longer than the terms of the Cooperative Loan, (ii) there is no provision
      in
      any Proprietary Lease which requires the Mortgagor to offer for sale the
      Cooperative Shares owned by such Mortgagor first to the Cooperative, (iii)
      there
      is no prohibition in any Proprietary Lease against pledging the Cooperative
      Shares or assigning the Proprietary Lease and (iv) the Recognition Agreement
      is
      on a form of agreement published by the Aztech Document Systems, Inc. or
      includes provisions which are no less favorable to the lender than those
contained
      in such agreement.

    

    
      
        
        

      

      
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    (bbbb) Financing
      Statements.
      With
      respect to each Cooperative Loan, each original UCC financing statement,
      continuation statement or other governmental filing or recordation necessary
      to
      create or preserve the perfection and priority of the first priority lien and
      security interest in the Cooperative Shares and Proprietary Lease has been
      timely and properly made. Any security agreement, chattel mortgage or equivalent
      document related to the Cooperative Loan establishes in the Seller a valid
      and
      subsisting perfected first lien on and security interest in the Mortgaged
      Property described therein, and the Seller has full right to sell and assign
      the
      same.

    

    
      
        
        

      

      
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    EXHIBIT
      B-2

    

    REPRESENTATIONS
      AND WARRANTIES WITH RESPECT TO LOANS THAT ARE SMALL BALANCE COMMERCIAL
      LOANS

    

    All
      capitalized terms used below shall have the definitions set forth in the
      Agreement.

    

    (a) Loan
      Schedule.
      The
      information set forth on the Loan Schedule is complete, true and
      correct.

    

    (b) Status
      of Loan.
      Each
      Loan is current with respect to all payments of interest and principal due
      prior
      to the related Closing Date.

    

    (c) Whole
      Loan; Ownership of Mortgage Loans.
      Each
      Loan is a whole loan and not a participation interest in a mortgage loan.
      Immediately prior to the date hereof, the related Originator, and on the date
      hereof the Seller has good title to, and is the sole owner of, each Loan and
      has
      full right, power and authority to transfer, pledge and assign each of the
      Loans
      to the Buyers free and clear of any and all pledges, liens, charges, security
      interests and/or other encumbrances. Each holder of the Loan was qualified
      and
      appropriately licensed (or was exempt from such qualification or license) to
      transact business in the jurisdiction in which the related Mortgaged Property
      is
      located at the time such entity had possession of the Mortgage Note except
      where
      the failure to be qualified or licensed would not have a material adverse effect
      on the Mortgage Loans. The pledge of the Loans to the related Buyer does not
      require the Seller to obtain any governmental or regulatory approval or consent
      that has not been obtained. None of the Mortgage Loan Documents restricts the
      Seller’s right to transfer the Loan to the related Buyer.

    

    (d) Taxes
      and Other Assessments and Ground Lease Rents.
      There
      are no delinquent real estate taxes, ground rents, water charges, sewer rents,
      Ground Lease rents, assessments, insurance premiums, leasehold payments,
      including assessments payable in future installments or other outstanding
      charges affecting the Mortgage Property.

    

    (e) Lien;
      Valid Assignment.
      The
      Mortgage related to and delivered in connection with each Loan constitutes
      a
      valid and, subject to the exceptions set forth below, enforceable first priority
      lien upon the related Mortgaged Property, prior to all other liens and
      encumbrances, except for (a) the lien for current real estate taxes and
      assessments not yet past due and payable, (b) covenants, conditions and
      restrictions, rights of way, easements and other matters that are of public
      record and/or are referred to in the related lender’s title insurance policy,
      (c) exceptions and exclusions specifically referred to in such lender’s title
      insurance policy, and (d) other matters to which like properties are commonly
      subject, none of which matters referred to in clauses (b), (c) or (d),
      individually or in the aggregate, materially interferes with the security
      intended to be provided by such Mortgage, the value or current use or operation
      of the Mortgaged Property or the current ability of the Mortgaged Property
      to
      generate operating income sufficient to service the Loan debt (the foregoing
      items (a) through (d) being herein referred to as the “Permitted
      Encumbrances”).
      The
      related Assignment of Mortgage executed and delivered to the Custodian in blank,
      is otherwise in recordable form and constitutes a legal, valid and binding
      assignment, and, assuming that the assignee has the capacity to acquire such
      Mortgage, sufficient to convey to the assignee named therein all of the
      assignor’s right, title and interest in, to and under such Mortgage.
      Notwithstanding the fact that the Seller shall not be required to file Uniform
      Commercial Code financing statements or continuation statements, such Mortgage,
      together with any separate security agreements, chattel mortgages or equivalent
      instruments, establishes and creates a valid and, subject to the exceptions
      set
      forth in this paragraph (iv) above, enforceable security interest in favor
      of
      the holder thereof in all of the related Mortgagor’s personal property used in
      the operation of the related Mortgaged Property. The Mortgage Note and the
      Mortgage have not been assigned or pledged, other than to lenders whose liens
      will be released prior to the related Closing Date or simultaneously with the
      related Buyer’s purchase hereunder, on the related Closing Date. Any security
      agreement, chattel mortgage or equivalent document related to and delivered
      in
      connection with the Loan establishes and creates a valid, existing and
      enforceable first or second lien and first or second priority security interest
      on the property described therein. As of the related Closing Date, Seller is
      the
      sole owner thereof and has full right to transfer and sell the Loans to Buyers
      free and clear of any lien or encumbrance equity, charge, claim or other
      security interest;

    

    
      
        
        

      

      
        B-2
          - 1

        
          

        

      

      
        
        

      

    

    (f) Assignment
      of Leases and Rents.
      The
assignment
      of leases, rents and profits or similar agreement delivered
      in connection with each Loan and
      executed
      by the Mortgagor, assigning to the mortgagee all of the income, rents and
      profits derived from the ownership, operation leasing or disposition of all
      or a
      portion of each Mortgaged Property, in the form which was duly executed,
      acknowledged and delivered, and as amended, modified, renewed or extended
      through the date hereof and from time to time hereafter (each an “Assignment
      of Leases and Rents”)
      establishes and creates a valid and enforceable first priority collateral
      assignment in the related Mortgagor’s interest in all leases, sub-leases,
      licenses or other agreements pursuant to which any person is entitled to occupy,
      use or possess all or any portion of the real property subject to the related
      Mortgage, subject to legal limitations of general applicability to Loans similar
      to the Mortgage Loans, and the Mortgagor and each assignor of such Assignment
      of
      Leases and Rents to the Seller have the full right to assign the same. The
      related assignment of any Assignment of Leases and Rents not included in a
      Mortgage has been executed and delivered to the Buyers’ custodian in blank, is
      otherwise in recordable form and constitutes a legal, valid and binding
      assignment, sufficient to convey to the assignee named therein (assuming that
      the assignee has the capacity to acquire such Assignment of Leases and Rents)
      all of the assignor’s right, title and interest in, to and under such Assignment
      of Leases and Rents.

    

    (g) Servicing.
      The
      servicing and collection practices with respect to each Mortgage Note and
      Mortgage have been in all respects legal, proper, prudent and customary in
      the
      mortgage servicing business, as conducted by prudent mortgage lending
      institutions which service Loans of the same type in the jurisdiction in which
      the Mortgaged Property is located and in accordance with the terms of the
      Mortgage Note, Mortgage and other loan documents, whether such servicing was
      done by Seller, its affiliates or any servicing agent of any of the foregoing;
      the servicer of the Loan has not assessed the Mortgagor any delinquent payment
      fees that are not specifically permitted in the Mortgage or Mortgage Note,
      including but not limited to demand letter charges, or assessed the Mortgagor
      interest on any advances made by the servicer.

    

    (h) Mortgage
      Status; Waivers and Modifications.
      No
      Mortgage has been satisfied, cancelled, rescinded or (except for Permitted
      Encumbrances) subordinated in whole or in part, and the related Mortgaged
      Property has not been released from the lien of such Mortgage, in whole or
      in
      part, nor has any instrument been executed that would effect any such
      satisfaction, cancellation, subordination (except for Permitted Encumbrances),
      rescission or release, in any manner that, in each case, materially and
      adversely affects the value of the related Mortgaged Property except for any
      partial reconveyances of real property that are included in the related Mortgage
      File. None of the terms of any Mortgage Note, Mortgage or Assignment of Leases
      and Rents has been impaired, waived, altered or modified, in each case in any
      material respect. Any non-material waivers, alterations or modifications with
      respect to any Loan are evidenced by written instruments, all of which are
      included in the related Mortgage File.

    

    (i) Condition
      of Property; Condemnation.
      The
      Mortgaged Property for each Loan is in good repair and condition and free of
      any
      structural deficiencies or deferred maintenance that would influence the
      originator’s decision to originate any such Loan. As
      of the
      date of its origination, there was no proceeding pending for the total or
      partial condemnation of any related Mortgaged Property that materially affects
      the value thereof, there is no pending proceeding for the total or partial
      condemnation of the related Mortgaged Property that materially affects the
      value
      thereof. As of the date of the origination of each Mortgage Loan, all of the
      material improvements on the related Mortgaged Property that were considered
      in
      determining the value of the Mortgaged Property lay wholly within the boundaries
      of such property, except for encroachments that are insured against by the
      lender’s title insurance policy referred to herein or that do not materially and
      adversely affect the value or marketability of such Mortgaged Property, and
      no
      improvements on adjoining properties materially encroached upon such Mortgaged
      Property so as to materially and adversely affect the value or marketability
      of
      such Mortgaged Property, except those encroachments that are insured against
      by
      the Title Policy referred to herein.

    

    
      
        
        

      

      
        B-2
          - 2

        
          

        

      

      
        
        

      

    

    (j) Title
      Insurance.
      Each
      Mortgaged Property is covered by an American Land Title Association (or an
      equivalent form of) lender’s title insurance policy or pro forma policy (the
“Title
      Policy”)
      in the
      original principal amount of the related Loan after all advances of principal.
      Each Title Policy insures the Seller and its successors and assigns that the
      related Mortgage is a valid first priority lien on such Mortgaged Property,
      subject only to the Permitted Encumbrances stated therein (or a marked up title
      insurance commitment or pro forma policy marked as binding and counter-signed
      by
      the title insurer or its authorized agent on which the required premium has
      been
      paid exists which evidences that such Title Policy will be issued). Each Title
      Policy (or, if it has yet to be issued, the coverage to be provided thereby)
      is
      in full force and effect, all premiums thereon have been paid, no material
      claims have been made thereunder and no claims have been paid thereunder.
      Neither the Seller nor any prior holder under the related Mortgage has done,
      by
      act or omission, anything that would materially impair the coverage under such
      Title Policy. The insurer issuing such Title Policy is qualified to do business
      in the jurisdiction in which the related Mortgaged Property is located. Such
      Title Policy contains no exclusions for or affirmatively insures (other than
      in
      jurisdictions where affirmative insurance is unavailable), (i) access to public
      roads, and (ii) against material losses due to encroachments of any part of
      the
      building thereon over easements.

    

    (k) No
      Holdbacks.
      The
      proceeds of each Loan have been fully disbursed and there is no obligation
      for
      future advances with respect thereto. With respect to each Loan, any and all
      requirements as to completion of any on-site or off-site improvement and as
      to
      disbursements of any funds escrowed for such purpose that were to have been
      complied with on or before the related Closing Date have been complied with,
      or
      any such funds so escrowed have not been released. All costs, fees and expenses
      incurred in making or closing the Loan and the recording of the Mortgage have
      been paid, and the Mortgagor is not entitled to any refund or any amounts paid
      or due to the Mortgagee pursuant to the Mortgage Note or Mortgage.

    

    (l) Mortgage
      Provisions.
      The
      Mortgage Note or Mortgage for each Loan, together with applicable state law,
      contains customary and enforceable provisions (subject to the exceptions set
      forth in paragraph (e) above), including foreclosure, such as to render the
      rights and remedies of the holder thereof adequate for the practical realization
      against the related Mortgaged Property of the principal benefits of the security
      intended to be provided thereby. The related Mortgage Loan Documents provide
      for
      the appointment of a receiver of rents following an event of default under
      such
      loan documents, to the extent available under applicable law.

    

    (m) Trustee
      under Deed of Trust.
      If any
      Mortgage is a deed of trust, (a) a trustee, duly qualified under applicable
      law
      to serve as such, is properly designated and serving under such Mortgage, and
      (b) no fees or expenses are payable to such trustee by the Seller, the Buyers
      or
      any transferee thereof except in connection with a trustee’s sale after default
      by the related Mortgagor or in connection with any full or partial release
      of
      the related Mortgaged Property or related security for the related
      Loan.

    

    
      
        
        

      

      
        B-2
          - 3

        
          

        

      

      
        
        

      

    

    (n) Environmental
      Conditions.
      Each
      Loan will be covered an environmental insurance policy issued by Zurich American
      Insurance Company or a comparable insurance company acceptable to the Buyers
      in
      its reasonable discretion. Such insurance policy shall cover losses resulting
      from an environmental condition on a Mortgaged Property after the default of
      the
      related Mortgagor and the insured amount under each such insurance policy,
      in
      the aggregate, will be at least equal to 125% of the aggregate principal balance
      of all Loans purchased by the Buyers pursuant to this Agreement. In the event
      that the originator has obtained an environmental site assessment meeting ASTM
      standards and assessing all hazards generally assessed for similar properties
      (as of the date of such assessment), including type, use and tenants for such
      similar properties (“Environmental
      Report”)
      with
      respect to any Mortgaged Property in connection with the origination of any
      Mortgage Loan, the Seller shall provide such Environmental Report to the Buyers,
      upon the Buyers’ request.

    

    With
      respect to each Mortgaged Property for which an Environmental Report was
      prepared, other than as disclosed in such Environmental Report, to the best
      of
      Seller’s knowledge, (X) no Hazardous Material is present on such Mortgaged
      Property, such that (1) the value, use or operations of such Mortgaged Property
      is materially and adversely affected, or (2) under applicable federal, state
      or
      local law and regulations, (i) such Hazardous Material could be required to
      be
      eliminated, remediated or otherwise responded to at a cost or in a manner
      materially and adversely affecting the value, use or operations of the Mortgaged
      Property before such Mortgaged Property could be altered, renovated, demolished
      or transferred or (ii) the presence of such Hazardous Material could (upon
      action by the appropriate governmental authorities) subject the owner of such
      Mortgaged Property, or the holders of a security interest therein, to liability
      for the cost of eliminating, remediating or otherwise responding to such
      Hazardous Material or the hazard created thereby at a cost or in a manner
      materially and adversely affecting the value, use or operations of the Mortgaged
      Property, and (Y) such Mortgaged Property is in material compliance with all
      applicable federal, state and local laws and regulations pertaining to Hazardous
      Materials or environmental hazards, any noncompliance with such laws or
      regulations does not have a material adverse effect on the value, use or
      operations of such Mortgaged Property and neither Seller nor the related
      Mortgagor or any current tenant thereon, has received any notice of any
      violation or potential violation of any such law or regulation. With respect
      to
      any condition disclosed in the Environmental Report, which condition constituted
      a violation of applicable laws or regulations or would materially and adversely
      affect the value, use or operations of the related Mortgaged Property if not
      remedied, such condition has either been satisfactorily remedied, consistent
      with prudent multi-family, commercial or mixed-use mortgage lending practices
      (as applicable), or the applicable loan documents contain provisions which
      address such condition to the satisfaction of the Seller, consistent with
      prudent multi-family, commercial and or mixed-use mortgage lending practices
      (as
      applicable), and adequate funding or resources, consistent with prudent
      multi-family, commercial or mixed-use mortgage lending practices (as
      applicable), were available to remedy or otherwise respond to such
      condition.

    

    Each
      Mortgage requires the related Mortgagor to comply with all applicable federal,
      state and local environmental laws and regulations.

    

    “Hazardous
      Materials”
means
      gasoline, petroleum products, explosives, radioactive materials, polychlorinated
      biphenyls or related or similar materials, and any other substance, material
      or
      waste as may be defined as a hazardous or toxic substance, material or waste
      by
      an federal, state or local environmental law, ordinance, rule, regulation or
      order, including without limitation, the Comprehensive Environmental Response,
      Compensation and Liability Act of 1980, as amended (42 U.S.C. §§ 9601
et
      seq.),
      the
      Hazardous Materials Transportation Act, as amended (49 U.S.C. §§ 1801
et
      seq.),
      the
      Resource Conservation and Recovery Act, as amended (42 U.S.C. §§ 6901
et
      seq.),
      the
      Federal Water Pollution Control Act, as amended (33 U.S.C. §§ 1251 et
      seq.),
      the
      Clean Air Act, as amended (42 U.S.C. §§ 7401 et seq.), and any regulations
      promulgated pursuant thereto.

    

    
      
        
        

      

      
        B-2
          - 4

        
          

        

      

      
        
        

      

    

    (o) Loan
      Document Status.
      Each
      Mortgage Note, Mortgage and other agreement that evidences or secures such
      Loan
      and that was executed by or on behalf of the related Mortgagor is genuine and
      each the legal, valid and binding obligation of the maker thereof (subject
      to
      any non-recourse provisions contained in any of the foregoing agreements and
      any
      applicable state anti-deficiency or market value limit deficiency legislation),
      enforceable in accordance with its terms, except with respect to provisions
      relating to default interest, yield maintenance charges and prepayment premiums
      and as such enforcement may be limited by bankruptcy, insolvency, reorganization
      or other similar laws affecting the enforcement of creditors’ rights generally,
      and by general principles of equity (regardless of whether such enforcement
      is
      considered in a proceeding in equity or at law) and free from any right of
      offset, counterclaim, rescission or other claim or defense, including the
      defense of usury. All parties to the Mortgage Note and the Mortgage had the
      legal capacity to enter into the Loan and to execute and deliver the Mortgage
      Note and the Mortgage and the Mortgage Note and the Mortgage have been duly
      and
      property executed by such parties. The obligor under the Mortgage Note is a
      natural person.

    

    (p) Status
      of Mortgage.
      The
      Mortgage has not been satisfied, cancelled, subordinated or rescinded, in whole
      or in part, and the Mortgaged Property has not been released from the lien
      of he
      Mortgage, in whole or in part, nor has any instrument been executed that would
      effect any such satisfaction, cancellation, subordination, rescission or
      release.

    

    (q) Insurance.
      Each
      Mortgaged Property is required (or the holder of the Mortgage can require)
      pursuant to the related Mortgage to be, and at origination the originator
      received evidence that such Mortgaged Property was, insured by (a) a fire and
      extended perils insurance policy providing coverage against loss or damage
      sustained by reason of fire, lightning, hail, windstorm (except with respect
      to
      the Loans set forth in a written notice to the Buyers upon the Buyers’ request),
      explosion, riot, riot attending a strike, civil commotion, aircraft, vehicles
      and smoke, and, to the extent required as of the date of origination by the
      originator of such Loan consistent with its normal multi-family, commercial
      or
      mixed use mortgage lending practices (as applicable), against other risks
      insured against by persons operating like properties in the locality of the
      Mortgaged Property, in an amount not less than the lesser of the principal
      balance of the related Loan and the replacement cost of the improvements on
      the
      Mortgaged Property, and with no provisions for a deduction for depreciation
      in
      respect of awards for the reconstruction of the improvements, and not less
      than
      the amount necessary to avoid the operation of any co-insurance provisions
      with
      respect to the Mortgaged Property; and (b) a flood insurance policy (if any
      portion of buildings or other structures (excluding parking) on the Mortgaged
      Property are located in an area identified by the Federal Emergency Management
      Agency (“FEMA”)
      as a
      special flood hazard area (which “special flood hazard area” does not include
      areas designated by FEMA as Zones B, C or X)). With respect to each Mortgaged
      Property, such Mortgaged Property is required pursuant to the related Mortgage
      to be (or the holder of the Mortgage can require that the Mortgaged Property
      be), and at origination the originator received evidence that such Mortgaged
      Property was, insured by a multi-family, commercial or mixed use general
      liability insurance policy (as applicable) in amounts as are generally required
      by multi-family, commercial or mixed use mortgage lenders (as applicable) for
      similar properties, and in any event not less than $1 million per occurrence.
      Under such insurance policies either (A) the originator and its successors
      and
      assigns is named as mortgagee under a standard mortgagee clause or (B) the
      originator and its successors and assigns is named as an additional insured,
      and
      is entitled to receive prior notice as the holder of the Mortgage of termination
      or cancellation. No such notice has been received, including any notice of
      nonpayment of premiums, that has not been cured. Each Mortgage obligates the
      related Mortgagor to maintain or cause to be maintained all such insurance
      and,
      upon such Mortgagor’s failure to do so, authorizes the holder of the Mortgage to
      maintain or to cause to be maintained such insurance at the Mortgagor’s cost and
      expense and to seek reimbursement therefor from such Mortgagor. Each Loan
      provides that casualty insurance proceeds will be applied either to the
      restoration or repair of the related Mortgaged Property or to the reduction
      of
      the principal amount of the Mortgage Loan. Each Mortgage provides that any
      related insurance proceeds, other than for a total loss or taking, will be
      applied either to the repair or restoration of all or part of the related
      Mortgaged Property, with the mortgagee or a trustee appointed by the mortgagee
      having the right to hold and disburse such proceeds as the repair or restoration
      progresses (except in such cases where a provision entitling another party
      to
      hold and disburse such proceeds would not be viewed as commercially unreasonable
      by a prudent multi-family, commercial or mixed-use mortgage lender(as
      applicable)), or to the payment of the outstanding principal balance of the
      Loan
      together with any accrued interest thereon, and any insurance proceeds in
      respect of a total or substantially total loss or taking may be applied either
      to payment of outstanding principal and interest on the Loan (except as
      otherwise provided by law) or to rebuilding of the Mortgaged
      Property.

    

    
      
        
        

      

      
        B-2
          - 5

        
          

        

      

      
        
        

      

    

    (r) Mortgagor
      Bankruptcy.
      No
      Mortgagor is a debtor in any state or federal bankruptcy or insolvency
      proceeding and no Mortgaged Property or any portion thereof is subject to a
      plan
      in any such proceeding.

    

    (s) Leasehold
      Estate.
      Each
      Mortgaged Property consists of the related Mortgagor’s fee simple estate in real
      estate (the “Fee
      Interest”)
      or the
      related Loan is secured in whole or in part by the interest of the related
      Mortgagor as a lessee under a ground lease of the Mortgaged Property (a
“Ground
      Lease”),
      and
      if secured in whole or in part by a Ground Lease, either (1) the ground lessor’s
      fee interest is subordinated to the lien of the Mortgage and the Mortgage will
      not be subject to any lien or encumbrances on the ground lessor’s fee interest,
      other than Permitted Encumbrances, and the holder of the Mortgage is permitted
      to foreclose the ground lessor’s fee interest within a commercially reasonable
      time period or (2) the following apply to such Ground Lease:

    

    1. Such
      Ground Lease or a memorandum thereof has been or will be duly recorded; such
      Ground Lease (or the related estoppel letter or lender protection agreement
      between the originator and related lessor) permits the interest of the lessee
      thereunder to be encumbered by the related Mortgage; does not restrict the
      use
      of the related Mortgaged Property by the lessee or its permitted successors
      and
      assigns in a manner that would materially and adversely affect the security
      provided by the related Mortgage; and there has been no material change in
      the
      payment terms of such Ground Lease since the origination of the related Mortgage
      Loan, with the exception of material changes reflected in written instruments
      that are a part of the related Mortgage File;

    

    2. The
      lessee’s interest in such Ground Lease is not subject to any liens or
      encumbrances superior to, or of equal priority with, the related Mortgage,
      other
      than the ground lessor’s related fee interest and Permitted
      Encumbrances;

    

    3. The
      Mortgagor’s interest in such Ground Lease is assignable to the Buyers and its
      successors and assigns upon notice to, but (except in the case where such
      consent cannot be unreasonably withheld) without the consent of, the lessor
      thereunder (or, if such consent is required, it has been obtained prior to
      the
      related Closing Date) and, in the event that it is so assigned, is further
      assignable by the Buyers and its successors and assigns upon notice to, but
      without the need to obtain the consent of, such lessor (except in the case
      where
      such consent cannot be unreasonably withheld);

    

    4. Such
      Ground Lease is in full force and effect, and the Seller has received no notice
      that an event of default has occurred thereunder, and, to the best of Seller’s
      knowledge, there exists no condition that, but for the passage of time or the
      giving of notice, or both, would result in an event of default under the terms
      of such Ground Lease;

    

    
      
        
        

      

      
        B-2
          - 6

        
          

        

      

      
        
        

      

    

    5. Such
      Ground Lease, or an estoppel letter or other agreement, requires the lessor
      under such Ground Lease to give notice of any material default by the lessee
      to
      the mortgagee (concurrent with notice given to the lessee), provided that the
      mortgagee has provided the lessor with notice of its lien in accordance with
      the
      provisions of such Ground Lease, and such Ground Lease, or an estoppel letter
      or
      other agreement, further provides that no notice of termination given under
      such
      Ground Lease is effective against the mortgagee unless a copy has been delivered
      to the mortgagee. The Seller has provided the lessor under the Ground Lease
      with
      notice of the Seller’s lien on the Mortgaged Property in accordance with the
      provisions of such Ground Lease;

    

    6. A
      mortgagee is permitted a reasonable opportunity (including, where necessary,
      sufficient time to gain possession of the interest of the lessee under such
      Ground Lease) to cure any default under such Ground Lease, which is curable
      after the receipt of notice of any such default, before the lessor thereunder
      may terminate such Ground Lease by reason of such default;

    

    7. Such
      Ground Lease has an original term, along with any extensions set forth in such
      Ground Lease, not less than 10 years beyond the full amortization term of the
      Mortgage Loan;

    

    8. Under
      the
      terms of such Ground Lease and the related Mortgage, taken together, any related
      insurance proceeds, other than for a total loss or taking, will be applied
      either to the repair or restoration of all or part of the related Mortgaged
      Property, with the mortgagee or a trustee appointed by the mortgagee having
      the
      right to hold and disburse such proceeds as the repair or restoration progresses
      (except in such cases where a provision entitling another party to hold and
      disburse such proceeds would not be viewed as commercially unreasonable by
      a
      prudent multi-family, commercial or mixed-use mortgage lender (as applicable)),
      or to the payment of the outstanding principal balance of the Loan together
      with
      any accrued interest thereon, and any insurance proceeds in respect of a total
      or substantially total loss or taking may be applied either to payment of
      outstanding principal and interest on the Loan (except as otherwise provided
      by
      law) or to rebuilding of the Mortgaged Property;

    

    9. Such
      Ground Lease does not impose any restrictions on subletting which would be
      viewed, as of the date of origination of the related Mortgage Loan, as
      commercially unreasonable by the Seller; and such Ground Lease contains a
      covenant that the lessor thereunder is not permitted, in the absence of an
      uncured default, to disturb the possession, interest or quiet enjoyment of
      any
      subtenant of the lessee, or in any manner, which would materially and adversely
      affect the security provided by the related Mortgage;

    

    10. Such
      Ground Lease or an estoppel or other agreement requires the lessor to enter
      into
      a new lease with the Seller or its successors or assigns under terms which
      do
      not materially vary from the economic terms of the Ground Lease, in the event
      of
      a termination of the Ground Lease by reason of a default by the Mortgagor under
      the Ground Lease, including rejection of the Ground Lease in a bankruptcy
      proceeding; and

    

    11. Such
      Ground Lease may not be materially amended, modified or, except in the case
      of a
      default, cancelled or terminated without the prior written consent of the holder
      of the Mortgage Loan, and any such action without such consent is not binding
      on
      such holder, including any increase in the amount of rent payable by the lessee
      thereunder during the term of the Mortgage Loan.

    

    
      
        
        

      

      
        B-2
          - 7

        
          

        

      

      
        
        

      

    

    (t) Escrow
      Deposits.
      All
      escrow deposits and payments relating to each Loan that are required to be
      deposited or paid have been so deposited or paid, and those escrow deposits
      and
      payments are under control of the Seller or its agents.

    

    (u) No
      Fraud.
      There
      has
      been no error, omission, fraud, dishonesty, misrepresentation, negligence or
      similar occurrence on the part of any person, including without limitation
      the
      mortgagor, the related Originator, any appraiser, any builder or developer,
      or
      any other party in connection with the solicitation of the Loan, the origination
      of the Loan, the application of any insurance in relation to such Loan or in
      connection with the sale of such Loan to Buyers.

    

    (v) Advancement
      of Funds.
      Neither
      the Seller nor the related Originator has advanced funds, or induced, solicited
      or knowingly received any advance of funds from a party other than the owner
      of
      the related Mortgaged Property (or any tenant required to make its lease
      payments directly to the holder of the related Loan), directly or indirectly,
      for the payment of any amount required by such Loan.

    

    (w) Assignment
      of Mortgage.
      The
      Assignment of Mortgage is in recordable form, except for the insertion of the
      name of the assignee, and is acceptable for recording under the laws of the
      jurisdiction in which the Mortgaged Property is located. The endorsement of
      the
      Mortgage Note is valid, legal and enforceable under the laws of the jurisdiction
      in which the Mortgaged Property is located.

    

    (x) No
      Mechanics’ Liens.
      Each
      Mortgaged Property is free and clear of any and all mechanics’ and materialmen’s
      liens that are prior or equal to the lien of the related Mortgage and no rights
      are outstanding that under law could give rise to any such lien that would
      be
      prior or equal to the lien of the related Mortgage except, in each case, for
      liens insured against by the Title Policy referred to herein, or, if any such
      liens existing are not insured against by the Title Policy referred to herein,
      such liens will not have a material adverse effect on the value of the related
      Mortgaged Property.

    

    (y) Cross-collateralization.
      No Loan
      is cross-collateralized or cross-defaulted with any loan other than one or
      more
      other Loans.

    

    (z) Compliance
      with Laws.
      To
      the
      extent required under applicable law, each originator and subsequent mortgagee
      or servicer of the Loan complied with all licensing requirements and was
      authorized to transact and do business in the jurisdiction in which the related
      Mortgaged Property is located at all times when it held or serviced the Loan.
      Any and all requirements of any federal, state or local laws or regulations,
      including, without limitation, usury, truth-in-lending, consumer credit
      protection, abusive lending, fair credit reporting, unfair collection practice,
      equal credit opportunity, fair housing and disclosure laws and regulations,
      applicable to the solicitation, origination, collection and servicing of such
      Loan have been complied with in all material respects; and any obligations
      of
      the holder of the Mortgage Note, Mortgage and other loan documents have been
      complied with in all material respects and the consummation of the transaction
      contemplated hereby will not involve the violation of any such laws or
      regulations, and Seller shall maintain in its possession, available for
      inspection of Buyers or their designee, and shall deliver to Buyers or their
      designee, upon two (2) Business Days’ request, evidence of compliance with such
      requirements.

    

    (aa) Releases
      of Mortgaged Property.
      No
      Mortgage Note or Mortgage requires the mortgagee to release all or any material
      portion of the related Mortgaged Property that was included in the valuation
      for
      such Mortgaged Property, and/or generates income, from the lien of the related
      Mortgage except upon payment in full of all amounts due under the related Loan,
      or upon satisfaction of the defeasance provisions of such Loan, other than
      the
      Loans that require the mortgagee to grant a release of a portion of the related
      Mortgaged Property upon (a) the satisfaction of certain legal and underwriting
      requirements where the portion of the related Mortgaged Property permitted
      to be
      released was not considered by the originator to be material in underwriting
      the
      Loan or, in the case of a substitution, where the Mortgagor is entitled to
      substitute a replacement parcel at its unilateral option upon the satisfaction
      of specified conditions, and/or (b) the payment of a release price and
      prepayment consideration in connection therewith, consistent with the related
      Originator’s normal multi-family, commercial or mixed-use mortgage lending
      practices (as applicable) (and in both (a) and (b), any release of the Mortgaged
      Property has been reflected in the Loan Schedule). Except as described in the
      prior sentence (other than with respect to defeasance and substitution), no
      Loan
      permits the full or partial release or substitution of collateral unless (1)
      the
      Mortgagor is entitled to substitute a replacement parcel at its unilateral
      option upon satisfaction of specified conditions, and (2) the mortgagee or
      servicer can require the Mortgagor to provide an opinion of tax counsel to
      the
      effect that such release or substitution of collateral (a) would not constitute
      a “significant modification” of such Loan within the meaning of Treas. Reg.
§1.1001-3 and (b) would not cause such Loan to fail to be a “qualified mortgage”
within the meaning of Section 860G(a)(3)(A) of the Code. The loan documents
      with
      respect to each Loan that permits the full or partial release or substitution
      of
      collateral require the related Mortgagor to bear the cost of such
      opinion.

    

    
      
        
        

      

      
        B-2
          - 8

        
          

        

      

      
        
        

      

    

    (bb) No
      Equity Participation or Contingent Interest.
      No Loan
      is a negative amortization mortgage loan, contains any equity participation
      or
      provides for any contingent or additional interest in the form
      of
      participation in the cash flow of the related Mortgaged Property. Neither the
      Seller nor
      any
      Affiliate thereof has any obligation to make any capital contribution to the
      Mortgagor under the Loan or otherwise.

    

    (cc) No
      Material Default.
      There
      exists no material default, breach, violation or event giving the lender the
      right to accelerate the Loan (and, no event has occurred which, with the passage
      of time or the giving of notice, or both, would constitute any of the foregoing)
      under the documents evidencing or securing the Mortgage Loan, in any such case
      to the extent the same materially and adversely affects the value of the Loan
      and the related Mortgaged Property. Neither the related Originator nor the
      Seller
      has
      waived any material default, breach, violation or event of acceleration under
      any of such documents and under the terms of each Mortgage Loan, each related
      Mortgage Note, each related Mortgage and the other Mortgage Loan Documents,
      no
      person or party other than the mortgagee may declare an event of default or
      accelerate the related indebtedness under such Loan, Mortgage Note or
      Mortgage.

    

    (dd) Local
      Law Compliance.
      The
      improvements located on or forming part of each Mortgaged Property comply with
      applicable zoning laws and ordinances, or constitute a legal non-conforming
      use
      or structure or, if any such improvement does not so comply, such non-compliance
      does not materially and adversely affect the value of the related Mortgaged
      Property, such value as determined by the appraisal or internal or external
      market study performed at origination. The Mortgage Property is lawfully
      occupied under applicable law; all inspections, licenses and certificates
      required in connection with the origination of any Loan with respect to the
      occupancy of the same, including but not limited to certificates of occupancy
      and fire underwriting certificates, have been made or obtained from the
      appropriate authorities.

    

    (ee) Junior
      Liens.
      Except
      as otherwise approved by the prior written consent of the Lender, none of the
      Loans permits the related Mortgaged Property to be encumbered by any lien (other
      than a Permitted Encumbrance) junior to or of equal priority with the lien
      of
      the related Mortgage.

    

    (ff) Actions
      Concerning Loans.
      There
      are no actions, suits or proceedings before any court, administrative agency
      or
      arbitrator concerning any Loan, Mortgagor or related Mortgaged Property that
      could reasonably be expected to adversely affect title to the Mortgaged Property
      or the validity or enforceability of the related Mortgage or that could
      reasonably be expected to materially and adversely affect the value of the
      Mortgaged Property as security for the Loan or the use for which the premises
      were intended.

    

    
      
        
        

      

      
        B-2
          - 9

        
          

        

      

      
        
        

      

    

    (gg) Licenses
      and Permits.
      The
      related Mortgagor is in possession of all material licenses, permits and
      franchises required by applicable law for the ownership and operation of the
      related Mortgaged Property as it is operated.

    

    (hh) Collateral
      in Trust.
      The
      Mortgage Note for each Loan is not secured by a pledge of any collateral that
      has not been assigned to the Buyers.

    

    (ii) Due
      on
      Sale/Due on Encumbrance.
      Each
      Loan contains a “due on sale” clause, which provides for the acceleration of the
      payment of the unpaid principal balance of the Loan if, without prior written
      consent of the holder of the Mortgage, the property subject to the Mortgage
      or
      any material portion thereof, is transferred, sold or encumbered by a junior
      mortgage or deed of trust; provided, however, that certain Loans provide a
      mechanism for the assumption of the loan by a third party upon the Mortgagor’s
      satisfaction of certain conditions precedent, and upon payment of a transfer
      fee, if any, or transfer of interests in the Mortgagor or constituent entities
      of the Mortgagor to a third party or parties related to the Mortgagor upon
      the
      Mortgagor’s satisfaction of certain conditions precedent.

    

    (jj) Recourse.
      Subject
      to the requirements and restrictions of governing law, each Loan provides for
      full recourse to the Mortgagor or the guarantor. Either the Mortgagor or a
      guarantor with respect to each Loan is a natural person.

    

    (kk) Servicemembers’
      Civil Relief Act.
      The
      Mortgagor has not notified Seller and Seller has no knowledge of any relief
      requested or allowed to the Mortgagor under the Servicemembers’ Civil Relief Act
      or similar state laws.

    

    (ll) Underwriting
      Policies.
      Each
      Loan was either originated, purchased, acquired or arranged by the originator
      thereof, and each such origination, purchase, acquisition or arrangement of
      such
      Loan substantially complied in all material respects with the Underwriting
      Guidelines and Acquisition Guidelines in effect as of such Mortgage Loan’s
      origination date.

    

    (mm) REMIC
      Eligibility.
      Each
      Loan is a “qualified mortgage” as such term is defined in Section 860G(a)(3) of
      the Code (without regard to Treasury Regulations Section 1.860G-2(f)(2), which
      treats certain defective Loans as qualified mortgages). Each Mortgaged Property
      will qualify as foreclosure property within the meaning of Section 856(e) of
      the
      Code if obtained by foreclosure or deed in lieu of foreclosure.

    

    (nn) Property
      Appraisal.
      Each
      Loan will contain an appraisal, which appraisal is signed by an appraiser,
      who
      had no interest, direct or indirect, in the Mortgaged Property or the Mortgagor
      or in any loan made on the security thereof, and whose compensation is not
      affected by the approval or disapproval of the Mortgage Loan. Each appraisal
      of
      the Loan was made in accordance with the relevant provisions of the Financial
      Institutions Reform, Recovery, and Enforcement Act of 1989. Such appraisal
      conforms to Uniform Standards of Professional Appraisal Practice guidelines.
      For
      each Loan with an original principal balance greater than $1,000,000, the Seller
      has provided a full self-contained report written in summary format including
      three valuation approaches and for each Loan with an original principal balance
      less than $1,000,000, the Seller has provided either a full self-contained
      report written in summary format including three valuation approaches or a
      report in summary form prepared in the standard Freddie Mac format (FHLMC Form
      71(B)) or form UCIAR-EP 7/90.

    

    (oo) Yield
      Maintenance Premium.
      Subject
      to the requirements and restrictions of governing law, each yield maintenance
      premium is consistent with that charged by the related Originator in its
      customary lending practices with respect to Loans of the size and character
      of
      the Loans.

    

    
      
        
        

      

      
        B-2
          - 10

        
          

        

      

      
        
        

      

    

    (pp) No
      Construction or Rehabilitation Loans.
      No Loan
      was made in connection with (A) the construction or rehabilitation of a
      Mortgaged Property or (B) facilitating the trade in or exchange of a Mortgage
      Property.

    

    (qq) Residential
      Leases.
      If the
      Mortgaged Property is shown as Multifamily Property on the Loan Schedule,
      at
      least 80% of the related Mortgage Property (calculated on the basis of net
      rentable space) is used for residential purposes and at least 80% of the gross
      income from the related Mortgaged Property is derived from residential
      leases.

    

    (rr) Loan
      Provisions.
      No Loan
      contains a provision that by its terms would automatically or at the unilateral
      option of the Mortgagor cause such Loan not be a “qualified mortgage” as such
      term is defined in Section 860G(a)(3) of the Code.

    

    (ss) Defeasance
      and Assumption Costs.
      If the
      related Mortgage Loan Documents provide for defeasance, such documents provide
      that the related Mortgagor is responsible for the payment of all reasonable
      costs and expenses of Buyers incurred in connection with the defeasance of
      such
      Loan and the release of the related Mortgaged Property. The related Mortgage
      Loan Documents require the related Mortgagor to pay all reasonable costs and
      expenses of Buyers associated with the approval of an assumption of such
      Loan.

    

    (tt) Defeasance.
      No Loan
      provides that it can be defeased prior to the date that is two years after
      the
      related origination date.

    

    (uu) Confidentiality.
      There
      are no provisions in any Mortgage Note, Mortgage or related loan documents
      with
      respect to any Loan, nor any other agreements or enforceable understandings
      with
      any Mortgagor, Mortgagor principal or guarantor, which restrict the
      dissemination of information regarding any Mortgagor, Mortgagor principal,
      guarantor or Mortgaged Property by the owner or holder of the Loan or requires
      such owner or holder to treat any information regarding any Mortgagor, Mortgagor
      principal, guarantor or Mortgaged Property as confidential; provided, however
      that state ad federal laws may specifically limit the use and/or dissemination
      of such information.

    

    (vv) No
      Predatory Practices.
      No
      predatory or deceptive lending practices, including but not limited to, the
      extension of credit to the Mortgagor without regard for the Mortgagor’s ability
      to repay the Loan and the extension of credit to the Mortgagor which has no
      apparent benefit to the Mortgagor, were employed by the originator of the Loan
      in connection with the origination of the Loan.

    

    (ww) No
      Residential Mortgage Loans.
      All of
      the Loans secured by residential properties that have fewer than five units
      have
      commercial use.

    

    (xx) Compliance
      with Anti-Money Laundering Laws.
      Seller
      has complied with all applicable anti-money laundering laws and regulations,
      including without limitation the USA PATRIOT Act of 2001 (collectively, the
      “Anti-Money
      Laundering Laws”);
      Seller has established an anti-money laundering compliance program as required
      by the Anti-Money Laundering Laws, has conducted the requisite due diligence
      in
      connection with the origination of each Loan for purposes of the Anti-Money
      Laundering Laws, including with respect to the legitimacy of the applicable
      Mortgagor and the origin of the assets used by the said Mortgagor to purchase
      the property in question, and maintains, and will maintain, sufficient
      information to identify the applicable Mortgagor for purposes of the Anti-Money
      Laundering Laws; no Loan is subject to nullification pursuant to Executive
      Order
      13224 (the “Executive
      Order”)
      or the
      regulations promulgated by the Office of Foreign Assets Control of the United
      States Department of the Treasury (the “OFAC
      Regulations”)
      or in
      violation of the Executive Order or the OFAC Regulations, and no Mortgagor
      is
      subject to the provisions of such Executive Order or the OFAC Regulations nor
      listed as a “blocked person” for purposes of the OFAC Regulations.

    

    
      
        
        

      

      
        B-2
          - 11

        
          

        

      

      
        
        

      

    

    (yy) Eligibility
      Criteria.
      The
      Loan is an Eligible Loan and complies with any other eligibility requirements
      set forth in the Pricing Side Letter.

    

    (zz) Separate
      Tax Lots.
      Each
      Mortgaged Property contains one or more separate tax lots (or will constitute
      separate tax
      lots
      when the next tax maps are issued) or is subject to an endorsement under the
      related Title Policy. 

    

    (aaa) Insured
      Closing Letters.
      With
      respect to each Eligible Loan that is a Wet-Ink Mortgage Loan, Seller has
      received an insured closing letter from the related Settlement Agent if such
      Settlement Agent is not a title insurance company. 

    

    (bbb) MERS
      Designated Mortgage Loans.
      With
      respect to each MERS Designated Mortgage Loans, a Mortgage Identification Number
      has been assigned by MERS and such Mortgage Identification Number is accurately
      provided on the Loan Schedule. The related Assignment of Mortgage to MERS has
      been duly and properly recorded. With respect to each MERS Mortgage Loan, no
      Mortgagor has received any notice of liens or legal actions with respect to
      such
      Mortgage Loan and no such notices have been electronically posted by
      MERS.

    

    
      
        
        

      

      
        B-2
          - 12

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C

    

    ACQUISITION
      GUIDELINES

    

    [Please
      See Attached CD]

    

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

    

    UNDERWRITING
      GUIDELINES

    

    [Please
      see Exhibit C]

    

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      E

    

    FORM
      OF SECURITY RELEASE CERTIFICATION

    

    I. Release
      of Security Interest

    

    Effective
      as of [DATE], [NAME OF SECURED PARTY] hereby relinquishes any and all right,
      title and interest it may have in and to the Mortgage Loans described in Exhibit
      A attached hereto upon purchase thereof by [DB Structured Products, Inc.] [Aspen
      Funding Corp.][Newport Funding Corp.] from the Seller named below pursuant
      to
      that certain Master Repurchase Agreement, dated as of December 13, 2005 as
      of
      the date and time of receipt by [NAME OF SECURED PARTY] of $____________ for
      such
      Mortgage Loans (the “Date and Time of Sale”) and certifies that all notes,
      mortgages, assignments and other documents in its possession relating to such
      Mortgage Loans have been delivered and released to the Seller named below or
      its
      designees as of the Date and Time of Sale.

    

    Name
      and
      Address of Secured Party:

    

    [NAME
      OF
      SECURED PARTY]

    [                
       ]

    For
      Credit Account No.
      [                
 ]

    Attention:
      [                
 ]

    Phone:
      [                
 ]

    Further
      Credit -
      [                
 ]

    

    

    
      	 	
              By:_________________________________

              Name:

              Title:

            

    

     

    II. CERTIFICATION
      OF RELEASE

    

    The
      Seller named below hereby certifies to [DB
      Structured Products, Inc.] [Aspen Funding Corp.][Newport Funding Corp.]
that,
      as
      of the Date and Time of Sale of the above mentioned Mortgage Loans to
[DB
      Structured Products, Inc.] [Aspen Funding Corp.][Newport Funding
      Corp.],
      the
      security interests in the Mortgage Loans released by the above named corporation
      comprise all security interests relating to or affecting any and all such
      Mortgage Loans. The Seller warrants that, as of such time, there are and will
      be
      no other security interests affecting any or all of such Mortgage
      Loans.

     

     

    
      	 	
              NYMC
                LOAN CORPORATION, as Seller

              

              

              
                By:_________________________________
Name:_______________________________

              Title:________________________________

            

    

    
       

      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      TO SECURITY RELEASE CERTIFICATION

    

    [List
      of
      Mortgage Loans]

    

    
      
        
        

      

      
        E-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      F

    

    LITIGATION

    

    Wanek
      v. The New York Mortgage Company, LLC,
      No.:
      05-C-4774 (United States District Court for the Northern District of Illinois).
      Plaintiff has filed this purported class action against NYMC alleging violations
      of the Fair Credit Reporting Act, 15 U.S.C. § 1681 et
      seq.
      (“FCRA”). Plaintiff asserts that an NYMC mailing sent to him offering an FHA
      streamline refinance loan violated FCRA in two respects. First, plaintiff
      contends that the mailing failed to constitute a “firm offer of credit” under
      section 1681b of FCRA because it did not contain specific terms. Second,
      plaintiff asserts that the mailing did not contain the “clear and conspicuous”
disclosures mandated by section 1681m of FCRA regarding a consumer’s ability to
      prohibit the use of credit information in a transaction not initiated by the
      consumer. 

    

    NYMC
      has
      moved to dismiss plaintiff’s Complaint on the ground that there is no longer a
      private right of action under section 1681m of FCRA that requires “clear and
      conspicuous” disclosures. As to the section 1681b claim that NYMC’s offer was
      not a “firm offer of credit,” given the specialized type of loan product
      involved, New York Mortgage asserts that the offer letter was sufficiently
      detailed for purposes of FCRA. NYMC has retained the Washington, DC law firm
      of
      Weiner Brodsky Sidman Kider PC, experts in the areas of regulatory compliance
      and consumer class action defense, to handle this litigation. The motion to
      dismiss has been fully briefed and is currently pending before the Court.
      Because this case is still in its early stages, we are unable to predict the
      outcome of the lawsuit or estimate the potential financial exposure to NYMC,
      if
      any.

    

    

    It
      is not
      possible for the Guarantor to determine with certainty whether the legal
      proceedings listed below are or will be material to NYMC, the Seller, the
      Guarantor or its Subsidiaries. By disclosing these legal proceedings on this
      Schedule, the Guarantor does not intend to imply, and is not admitting, that
      the
      legal proceedings are in fact material legal proceedings within the meaning
      of
      Item 103 of Regulation S-K under the federal securities laws or SEC Staff
      Accounting Release 99.

    

    
      
        
        

      

      
        F-1

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      G

    

    THIRD
      PARTY GUIDELINES

    

    INVESTOR
      GUIDELINE LINKS

    

    PRIME

    

    Agency
      (FNMA/FHLMC)

    http://www.allregs.com/

    

    Chase
      Correspondent (03):

    http://www.chaseb2b.com/content/portal/body/Correspondent/OnLineGuidesFrame.html

    

    Ohio
      Savings (04) 

    https://www2.gemstoneohio.com/MtgMktg/products/matrix/group/ohio_matrix.pdf

    

    Thornburg
      (05)

    http://www.thornburgmortgage.com/PDFs/SELLERS%20GUIDE%20October%202005.pdf

    

    Citimortgage
      (10)

    https://correspondent.citimortgage.com/Correspondent/GetManual.do

    

    Aurora
      (11)

    https://www.alservices.com/Conduit/UI/SSL/SellersGuide/TOC.aspx

    

    Wells
      Fargo (12)

    https://ilnet.wellsfargo.com/ildocs/guidelines/lendersalliance/index.jsp

    

    Astoria
      Federal (15)

    https://www.astoriamortgage.com/policies_procedures/index.jsp

    

    Countrywide
      (33)

    https://cld.countrywide.com/cld/

    

    Indymac
      (43)

    https://new-e-mits.indymacb2b.com/eMITS/Frames.asp

    

    CSFB
      (49) 

    https://www.csfbconnect.com/UWGuidelines.asp

    

    Bayview
      Financial (51) - mixed use/mult-family

    http://www.silverhillfinancial.com/client_learning.jsp

    

    FHA

    http://www.hud.gov

    

    Connecticut
      Bond - CHFA

    http://www.chfa.org

    

    Delaware
      Bond - DSHA

    http://www2.state.de.us/dsha/research_frame.htm

    

    
      
        
        

      

      
        G-1

        
          

        

      

      
        
        

      

    

    New
      Hampshire Bond - NHHFA

    http://www.nhhfa.org/

    

    Pennsylvania
      Bond - PHFA

    http://www.phfa.org/

    

    Rhode
      Island Bond 

    http://www.rihousing.com/

    

    

    SUB-PRIME
      

    

    Countrywide
      Sub-prime (S-1) 

    https://cld.countrywide.com/cld/

    

    New
      Century (S-4) 

    https://www.newcentury.com/sellersGuide/index.jsp

    

    WMC
      (S-5)

    https://www.wmcdirect.com/default.asp

    

    Deutsche
      Bank (S-6)

    https://clg.db.com/pages/corrlend/home.html

    

    Impac
      Sub-prime (S-9)

    http://www.impacfundingcorp.com/SellerGuide2003/sellersguide.asp

    

    Novastar
      (S-11)

    http://www.novastaris.com/manuals/netbranch_manuals.asp

    

    Option
      One (S-12)

    http://oomc.com/acquisitions/acquisitions_uwpolicies.asp

    

    Decision
      One (S-13)

    https://www.d1online.com/content/d1_corr_guidelines.pdf

    

    

    
      
        
        

      

      
        G-2

        
          

        

      

      
        
        

      

    

    

    ALT-A
      BULK INVESTORS

    Impac
      (9)

    Citigroup
      (10A)

    Nomura
      (16)

    Indymac
      (43)

    Bear
      Stearns (44)

    Wintergroup
      (45)

    UBS
      Warburg (46)

    Greenwich
      Capital (47)

    CSFB
      (49)

    Countrywide
      Securities (52)

    US
      Bank (54)

    Greenpoint
      Correspondent (55)

    Lehman
      Brothers Sec (56)

    RFC
      (58)

    WAMU
      Securities (59)

    Merrill
      Lynch (60)

    Goldman
      Sachs (62)

    Morgan
      Stanley (63)

    WMC
      (S-5)

    Deutsche
      Bank (S-6)

    Option
      One (S-12)

    Wells
      Fargo Sub-prime (12SP)

    BB&T

    FNMA

    JP
      Morgan

    Opteum
      Funding

    Smith
      Barney

    Wachovia

    Bank
      of America

    Sovereign
      Securities

    CDC
      

    C-Bass

    

    
      
        
        

      

      
        G-3CUSTODIAL
      AGREEMENT

     

     

    Among:

     

     

    DB
      STRUCTURED PRODUCTS, INC., as Buyer

     

    ASPEN
      FUNDING CORP., as Buyer

     

    NEWPORT
      FUNDING CORP., as Buyer

     

    NYMC
      LOAN CORPORATION, as Seller

     

    NEW
      YORK MORTGAGE TRUST, INC., as Guarantor

     

     

    and

     

     

    LASALLE
      BANK NATIONAL ASSOCIATION, as Custodian,

     

    Dated
      as of December 13, 2005

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

     

    

      
        	
                Section
                  1

              	
                Definitions

              	
                 1

              
	
                Section
                  2

              	
                Delivery
                  of Mortgage File

              	
                 6

              
	
                Section
                  3

              	
                Trust
                  Receipt and Loan Schedule and Exception Report

              	
                 8

              
	
                Section
                  4

              	
                Obligations
                  of the Custodian

              	
                 9

              
	
                Section
                  5

              	
                Release
                  of Purchased Loans

              	
                 10

              
	
                Section
                  6

              	
                Fees
                  and Expenses of Custodian

              	
                 12

              
	
                Section
                  7

              	
                Removal
                  or Resignation of Custodian

              	
                 13

              
	
                Section
                  8

              	
                Examination
                  of Mortgage Files

              	
                 13

              
	
                Section
                  9

              	
                Insurance
                  of Custodian

              	
                 13

              
	
                Section
                  10

              	
                Representations
                  and Warranties

              	
                 14

              
	
                Section
                  11

              	
                Statements

              	
                 14

              
	
                Section
                  12

              	
                No
                  Adverse Interest of Custodian

              	
                 15

              
	
                Section
                  13

              	
                Indemnification
                  of Custodian

              	
                 15

              
	
                Section
                  14

              	
                Concerning
                  the Custodian

              	
                 16

              
	
                Section
                  15

              	
                Term
                  of Custodial Agreement

              	
                 16

              
	
                Section
                  16

              	
                Notices

              	
                 17

              
	
                Section
                  17

              	
                GOVERNING
                  LAW

              	
                 17

              
	
                Section
                  18

              	
                Authorized
                  Representatives

              	
                 17

              
	
                Section
                  19

              	
                Amendment

              	
                 17

              
	
                Section
                  20

              	
                Cumulative
                  Rights

              	
                 17

              
	
                Section
                  21

              	
                Binding
                  Upon Successors

              	
                 17

              
	
                Section
                  22

              	
                Entire
                  Agreement; Severability

              	
                 18

              
	
                Section
                  23

              	
                Execution
                  In Counterparts

              	
                 18

              
	
                Section
                  24

              	
                Tax
                  Reports

              	
                 18

              
	
                Section
                  25

              	
                Assignment

              	
                 18

              
	
                Section
                  26

              	
                Transmission
                  of Mortgage Files

              	
                 19

              
	
                Section
                  27

              	
                Submission
                  To Jurisdiction; Waivers

              	
                 19

              
	
                Section
                  28

              	
                Confidentiality

              	
                 20

              

      

    

     

    ANNEXES

    

    
      	Annex
              1	
              Required
                Fields for Loan Schedule

            

    

    
      	Annex
              1-A	
              Required
                Fields for Loan Schedule with respect to Wet-Ink Mortgage
                Loans

            

    

    
      	Annex
              2	
              Form
                of Trust Receipt

            

    

    
      	Annex
              3	
              Form
                of Notice of Sale and Request for
                Release

            

    

    
      	Annex
              4	
              Review
                Procedures

            

    

    
      	Annex
              5	
              Request
                For Release and Receipt

            

    

    
      	Annex
              6	
              Authorized
                Representatives of Buyers

            

    

    
      	Annex
              7	
              Authorized
                Representatives of Seller

            

    

    
      	Annex
              8	
              Authorized
                Representatives of Guarantor

            

    

    
      	Annex
              9	
              Authorized
                Representatives of Custodian

            

    

    
      	Annex
              10	
              Form
                of Lost Note Affidavit

            

    

    
      	Annex
              11	
              Notice
                of Assignment

            

    

    
      	Annex
              12	
              (Third
                Party) Transmittal Letter

            

    

    
      	Annex
              13	
              Attorney’s
                Bailee Letter 

            

    

    
      	Annex
              14	
              Exception
                Codes

            

    

    
    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

    
      	
              Annex
                15

            	
              List
                of Unapproved Settlement Agents

            

    

    
      	Annex
              16	
              Mortgage
                File Submission Package

            

    

    
      	Annex
              17	
              Form
                of Escrow Letter

            

    

    
      	Annex
              18	
              Notice
                By Assignee To Custodian Of The Buyer’s
                Default

            

    

    

    EXHIBITS

    

    
      	Exhibit
              A	
              Form
                of Transaction Notice

            

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

    CUSTODIAL
      AGREEMENT

     

    CUSTODIAL
      AGREEMENT
      (this
“Custodial
      Agreement”)
      dated
      as of December 13, 2005, made by and among:

     

    
      	
            	(i)	
              NYMC
                LOAN CORPORATION
                (“Seller”);

            

    

     

    
      	
            	(ii)	
              NEW
                YORK MORTGAGE TRUST,
                INC. (“Guarantor”)

            

    

     

    
      	
            	(iii)	
              LASALLE
                BANK NATIONAL ASSOCIATION,
                as custodian for Buyers (in such capacity, the “Custodian”);

            

    

     

    
      	
            	(iv)	
              DB
                STRUCTURED PRODUCTS, INC.
                (including
                its successors in interest,
                “DBSP”)

            

    

     

    
      	
            	(v)	
              ASPEN FUNDING CORP.
                (including
                its successors in interest,
                “Aspen”);
                and

            

    

     

    
      	
            	(vi)	
              NEWPORT FUNDING
                CORP.
                (including
                its successors in interest,
                “Newport”
                and collectively with DBSP and Aspen, the “Buyers”
                and individually, a “Buyer”).

            

    

     

    RECITALS

     

    Seller,
      Buyers and Guarantor are parties to the Master Repurchase Agreement, dated
      as of
      December 13, 2005 (as amended, supplemented or otherwise modified and in effect
      from time to time, the “Repurchase
      Agreement”),
      pursuant to which Buyers and Seller have agreed, subject to the terms and
      conditions of the Repurchase Agreement, to enter into Transactions (as defined
      therein) in
      which
      Buyers have agreed to purchase from time to time from Seller certain Loans,
      with
      a simultaneous agreement by Seller to repurchase such Loans.

     

    It
      is a
      condition precedent to the effectiveness of the Repurchase Agreement that the
      parties hereto execute and deliver this Custodial Agreement to provide for
      the
      appointment of the Custodian as custodian hereunder. Accordingly, the parties
      hereto agree as follows:

     

    Section
      1.  Definitions.

     

    Unless
      otherwise defined herein, terms defined in the Repurchase Agreement shall have
      their respective assigned meanings when used herein, and the following terms
      shall have the following meanings:

     

    “Acceptable
      Attorney”
shall
      mean any attorney-at-law to which the Custodian has sent an
      Attorney’s Bailee Letter, except for an attorney whom Buyers have notified
      the Custodian and the Seller in writing that such attorney is not reasonably
      satisfactory to Buyers.

     

    “Acquisition
      Guidelines”
means
      (i) NYMC’s loan acquisition guidelines set forth in Exhibit C to the Repurchase
      Agreement and (ii) certain acquisition guidelines of third parties listed in
      Exhibit G to the Repurchase Agreement in accordance with which NYMC acquires
      Loans, as the same may be amended from time to time in accordance with the
      terms
      of the Repurchase Agreement.

     

    “Additional
      Documents”
shall
      have the meaning specified in Section 2(b) hereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “AM
      Funded Wet-Ink Mortgage Loans”
shall
      mean Wet-Ink Mortgage Loans
      that
      will be
      funded
      before 10:30 a.m. (New York City time) on any Business Day.

     

    “Applicable
      Guide”
shall
      mean with respect to Fannie Mae or Freddie Mac, the applicable guide published
      by either Fannie Mae or Freddie Mac setting forth the requirements each Loan
      needs to satisfy in order to be eligible for purchase by Fannie Mae or Freddie
      Mac, as such guide may be amended or supplemented from time to time or any
      other
      set of criteria established by Fannie Mae or Freddie Mac that a Loan must
      satisfy in order to be eligible for purchase by Fannie Mae or Freddie
      Mac.

    

    “Approved
      Purchaser”
shall
      mean any third party purchaser of a Mortgage Loan, except for any person whom
      the Buyer has notified the Custodian and the Seller in writing that such person
      is not reasonably satisfactory to the Buyer.

     

    “Approved
      Title Insurance Company”
shall
      mean a title insurance company that has not been disapproved by Buyers in their
      sole discretion in a written notice to the Custodian by the Buyer.

     

    “Assignment
      of Mortgage”
shall
      mean with respect to any Mortgage, an assignment of the Mortgage, notice of
      transfer or equivalent instrument in recordable form (excluding only the name
      of
      the assignee), reflecting the assignment and pledge of the
      Mortgage.

     

    “Attorney’s
      Bailee Letter”
shall
      mean a letter substantially in the form of Annex
      13
      hereto.

     

    “Authorized
      Representative”
shall
      have the meaning specified in Section 18 hereof.

     

    “Business
      Day”
means
      any day other than (i) a Saturday or Sunday or (ii) a day upon which the banking
      institutions in the State of New York or any of Custodian, Seller or Buyers
      are
      authorized or obligated by law or executive order to be closed.

     

    “Computer
      Tape”
shall
      mean a computer tape or other electronic medium generated by or on behalf of
      Seller and delivered or transmitted to Buyers and Custodian which provides
      information relating to the Purchased Loans, including the information set
      forth
      in the Loan Schedule, in a format acceptable to Buyers and the
      Custodian.

     

    “Custodial
      Delivery Failure”
shall
      have the meaning specified in Section 13 hereof.

     

    “Daily
      Aged Report”
shall
      have the meaning set forth in Section 3(g) hereof.

     

    “Disbursement
      Account”
shall
      mean the Disbursement Account established by the Disbursement Agent in
      accordance with the Disbursement Agreement.

     

    “Disbursement
      Agent”
shall
      mean Deutsche Bank National Trust Company and any successor
      thereto.

     

    “Disbursement
      Agreement”
shall
      mean the Disbursement Agreement among the Disbursement Agent, Seller, Guarantor
      and Buyers dated as of December 13, 2005, as the same may be amended,
      supplemented or otherwise modified from time to time.

     

    “Dry
      Mortgage Loan”
shall
      mean a first or second lien Mortgage Loan which is underwritten in accordance
      with the Underwriting Guidelines which Mortgage File contains all required
      Mortgage Loan Documents and is received by the Custodian.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Electronic
      Agent”
shall
      mean MERSCORP, Inc.

     

    “Electronic
      Tracking Agreement”
shall
      mean the Electronic Tracking Agreement, dated as of the date hereof, among
      Seller, Buyers, Servicer, the Electronic Agent and MERS, as the same may be
      amended, supplemented or otherwise modified from time to time.

     

    “Electronic
      Transmission”
shall
      mean the delivery of information in an electronic format acceptable to the
      applicable recipient thereof. An Electronic Transmission shall be considered
      written notice for all purposes hereof (except when a request or notice by
      its
      terms requires execution).

     

    “Escrow
      Letter”
shall
      mean an escrow or closing letter from Seller to the Settlement Agent in the
      form
      of Annex
      17.

     

    “Event
      of Default”
shall
      have the meaning provided in Section 19 of the Repurchase
      Agreement.

     

    “Exception”
shall
      mean, with respect to any Mortgage Loan, any of the following: (a) any variance
      from the requirements of Annex
      4
      hereof
      with respect to the Mortgage Files (taking into consideration the Seller’s right
      to deliver certified copies in lieu of original documents in certain
      circumstances); (b) any Exception identified on Annex
      14
      hereto
      or as otherwise reasonably determined by Buyers; or (c) any Mortgage Loan with
      respect to which a Responsible Officer of the Custodian receives written notice
      or has actual knowledge of a lien or security interest in favor of a Person
      other than any Buyer with respect to such Mortgage Loan.

     

    “Loan”
means
      (i) a first lien or second lien, fixed rate or adjustable rate, closed-end,
      wet
      or dry-funded, home equity residential mortgage loan either originated in
      accordance with the Underwriting Guidelines or acquired in accordance with
      the
      Acquisition Guidelines and in each case, meets the representations and
      warranties attached as Exhibit B to the Repurchase Agreement and deemed by
      Buyers to be eligible for securitization in the normal course of business,
      (ii)
      such other type of loan, lease or other receivable as shall be agreed upon
      by
      the parties in writing, or (iii) any interest in, or secured by, any such loan,
      lease or other receivable.

     

    “Loan
      Schedule”
shall
      mean a computer-readable transmission in a standardized text format
      delivered by the Seller to Buyers, the Custodian and the Disbursement Agent
      incorporating the fields identified on Annex
      1,
      with
      respect to Dry Mortgage Loans, or Annex
      1-A,
      with
      respect to Wet-Ink Mortgage Loans, or as otherwise mutually agreed upon by
      Buyers, Seller and the Custodian.

     

    “Loan
      Schedule and Exception Report”
shall
      mean in the case of each Mortgage Loan, a computer-readable transmission
      containing the following information to be delivered by the Custodian to the
      related Buyer pursuant to this Custodial Agreement: the Mortgage Loan number,
      Mortgagor’s name, a code indicating whether the Mortgage Loan is a MERS
      Designated Mortgage Loan, and if so, the MERS Identification Number, codes
      indicating Exceptions and, with respect to any Mortgage Files which have been
      released (i) to the Seller pursuant to Section 5(a) hereof pursuant to a Request
      for Release and Receipt, (ii) as described in Section 5(b) hereof, or (iii)
      pursuant to an Attorney Bailee Letter as described in Section 5(c) hereof,
      the
      date such Mortgage Files were released and to whom they were released. The
      Custodian shall incorporate all current data provided by Seller to the Custodian
      into the Loan Schedule and Exception Report.

     

    “Margin
      Deficit”
shall
      have the meaning assigned thereto in the Repurchase Agreement.

     

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

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    “MERS
      Designated Mortgage Loan”
shall
      mean any Mortgage Loan as to which the related Mortgage or Assignment of
      Mortgage has been recorded in the name of MERS, as agent for the holder from
      time to time of the Mortgage Note and which is identified as a MERS Mortgage
      Loan on the related Loan Schedule.

     

    “MERS
      Identification Number”
shall
      mean the eighteen digit number permanently assigned to each MERS Mortgage
      Loan.

     

    “Midday
      Funded Wet-Ink Mortgage Loans”
shall
      mean Wet-Ink Mortgage Loans
      that
      will be
      funded
      after 10:30 a.m. (New York City time), but on or prior to 1:30 p.m. (New York
      City time) on any Business Day.

     

    “Mortgage”
shall
      mean the mortgage, deed of trust or other instrument, which creates a valid
      lien
      on the fee simple or leasehold estate in such real property.

     

    “Mortgage
      File”
shall
      mean, as to each Mortgage Loan, those documents listed on Annex
      16
      hereto
      that are delivered to the Custodian or which at any time come into the
      possession of the Custodian.

     

    “Mortgage
      Loan”
shall
      mean a Loan which the Custodian has been instructed to hold for Buyers pursuant
      to this Custodial Agreement.

     

    “Mortgage
      Loan Documents”
shall
      mean, with respect to a Mortgage Loan, the documents comprising the Mortgage
      File for such Mortgage Loan.

     

    “Mortgage
      Note”
shall
      mean the original executed promissory note or other evidence of the indebtedness
      of a Mortgagor with respect to a Mortgage Loan and secured by the related
      Mortgaged Property.

     

    “Mortgaged
      Property”
means
      the real property (including all improvements, buildings, fixtures, building
      equipment and personal property affixed thereto and all additions, alterations
      and replacements made at any time with respect to the foregoing) and all other
      collateral securing repayment of the debt evidenced by a Mortgage
      Note.

     

    “Mortgagor”
means
      the obligor on a Mortgage Note.

     

    “Notice
      and Information”
shall
      have the meaning specified in Section 2(a)(i) hereof.

     

    “Notice
      of Sale and Request for Release”
shall
      mean a notice to the Custodian and Buyers in the form of Annex
      3
      hereto
      that certain of the Mortgage Loans are being sold and specifying the date of
      such sale and the amount of the Repurchase Price being paid off with the
      proceeds of such sale and requesting that certain documents with respect to
      such
      Mortgage Loans be delivered to the related third party purchaser.

     

    “NYMC”
shall
      mean The New York Mortgage Company, LLC and any successors or permitted
      assigns.

     

    “Officer’s
      Certificate”
shall
      mean a certificate signed by a Responsible Officer of the Person delivering
      such
      certificate and delivered as required by this Custodial Agreement.

     

    “Opinion
      of Counsel”
shall
      mean a written opinion letter of counsel in form and substance reasonably
      acceptable to the party receiving such opinion letter.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “Person”
means
      any legal person, including any individual, corporation, partnership,
      association, joint stock company, trust, limited liability company,
      unincorporated organization, governmental entity or other entity of similar
      nature.

     

    “PM
      Funded Wet-Ink Mortgage Loans”
shall
      mean Wet-Ink Mortgage Loans
      that
      will be
      funded
      after 1:30 p.m. (New York City time) but on or prior to 4:30 p.m. (New York
      City
      time) on any Business Day.

     

    “Pricing
      Side Letter”
means
      the pricing side letter, dated as of December 13, 2005, among Seller, Guarantor
      and Buyers, as the same may be amended, supplemented or modified from time
      to
      time.

     

    “Program
      Documents”
shall
      have the meaning assigned thereto in the Repurchase Agreement.

     

    “Purchase
      Date”
means
      the date on which a Transaction is entered into pursuant to the Repurchase
      Agreement.

     

    “Purchased
      Loan”
means
      a
      Loan purchased by a Buyer in a Transaction pursuant to the Repurchase
      Agreement.

     

    “Purchase
      Price”
shall
      have the meaning assigned thereto in the Pricing Side Letter.

     

    “Repurchase
      Price”
means
      the price at which Purchased Loans are to be transferred from the related Buyer
      to Seller upon termination of a Transaction, which will be determined in each
      case according to the Repurchase Agreement.

     

    “Rescission”
shall
      mean the right of a Mortgagor to rescind the related Mortgage Note and related
      documents pursuant to applicable law and regulation.

     

    “Responsible
      Officer”
shall
      mean, as to any Person, the chief executive officer or, with respect to
      financial matters, the chief financial officer of such Person; provided,
      that in
      the event any such officer is unavailable at any time he or she is required
      to
      take any action hereunder, Responsible Officer shall mean any officer authorized
      to act on such officer’s behalf as demonstrated by a certificate of corporate
      resolution. With respect to the Custodian, Responsible Officer shall mean any
      managing director, director, associate, principal, vice president, assistant
      vice president, assistant secretary, assistant treasurer, trust officer or
      any
      other officer of the Custodian customarily performing functions similar to
      those
      performed by any of the above designated officers and also means, with respect
      to a particular corporate trust matter, any other officer to whom such matter
      is
      referred because of his knowledge of and familiarity with the particular
      subject.

     

    “Review
      Procedures”
shall
      have the meaning specified in Section 3(a) hereof.

     

    “Servicer”
means
      Cenlar F.S.B. and any successor thereto.

     

    “Settlement
      Agent”
shall
      mean, with respect to any Wet-Ink Mortgage Loan, the Person specified in the
      Transaction Notice (which may be a title company, escrow company or attorney
      in
      accordance with local law and practice in the jurisdiction where the related
      Wet-Ink Mortgage Loan is being originated and which is not listed as an
      Unapproved Settlement Agent on Annex
      15
      attached
      hereto as revised from time to time by Buyers) to which the proceeds of the
      related Purchase Price with respect to such Wet-Ink Mortgage Loan are to be
      distributed by the Disbursement Agent.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    “Transaction”
shall
      mean a transaction pursuant to which Seller transfers to the related Buyer
      certain Loans against the transfer of funds by the related Buyer, with a
      simultaneous agreement by the related Buyer to transfer to Seller such Loans
      on
      a date certain, against the transfer of funds by Seller.

     

    “Transaction
      Notice”
means
      a
      written request of Seller to enter into a Transaction, in the form attached
      hereto as Exhibit A or such other form as shall be mutually agreed upon among
      Seller and Buyers which is delivered to the related Buyer, the Disbursement
      Agent and the Custodian.

     

    “Transmittal
      Letter”
shall
      mean a letter substantially in the form of Annex
      12
      hereto.

     

    “Trust
      Receipt”
shall
      mean the trust receipt in the form annexed hereto as Annex
      2 delivered
      to the related Buyer by the Custodian covering the Mortgage Loans subject to
      this Custodial Agreement from time to time,
      as
      reflected on the Loan Schedule and Exception Report attached thereto in
      accordance with Section 3.

     

    “Underwriting
      Guidelines”
shall
      mean NYMC’s
      loan underwriting guidelines set forth as Exhibit D to the Repurchase Agreement
      and (ii) certain underwriting guidelines of third parties listed in Exhibit
      G to
      the Repurchase Agreement in accordance with which NYMC underwrites Loans, as
      the
      same may be amended from time to time in accordance with terms of the Repurchase
      Agreement.

     

    “Wet-Ink
      Mortgage Loan”
means
      a
      first lien or second lien Loan that is sold to the related Buyer simultaneously
      with the origination thereof by The New York Mortgage Company, LLC, which
      origination is in accordance with the Underwriting Guidelines and is funded
      in
      part or in whole with proceeds of the sale of the Loan to the related Buyer
      paid
      directly to a Settlement Agent and for which all of the Mortgage Loan Documents
      specified in Annex
      16
      have not
      been delivered to Custodian in accordance with Section 2 of this Agreement.
      For
      the avoidance of doubt Wet-Ink Mortgage Loans shall include each Wet-Ink
      Conforming Loan, Wet-Ink Alt-A Loan, Wet-Ink HELOC, Wet-Ink Subprime Loan,
      Wet-Ink Jumbo Loan and Wet-Ink Small Balance Commercial Loan.

     

    “Wire
      Instruction Data”
shall
      mean the applicable information provided relating to funding for the origination
      of a Wet-Ink Mortgage Loan, which data shall include the amount of the related
      wire transfer and related depository information as required by
      Buyers.

     

    Section
      2.  Delivery
      of Mortgage File.

     

    (a)  The
      Seller shall from time to time deliver Mortgage Files to the Custodian to be
      held hereunder, which shall be reviewed by the Custodian as provided in Section
      3.

     

    (i)  With
      respect to each Transaction, the Seller shall provide written notice, in the
      form of a Transaction Notice together with the related Loan Schedule and a
      Computer Tape (collectively, the “Notice
      and Information”),
      to
      the related Buyer, Custodian and Disbursement Agent, as applicable, with respect
      to such Mortgage Loans which are to be purchased.

     

    (ii)  With
      respect to Dry Mortgage Loans, Seller shall deliver to the related Buyer and
      the
      Custodian, no later than 11:00 a.m. (New York City time) two (2) Business Days
      prior to the requested Purchase Date (a “Notice
      Date”),
      (a)
      the related Notice and Information and (b) the related Mortgage
      File.

     

    (iii)  With
      respect to Wet-Ink
      Mortgage Loans,
      Seller
      shall notify the related Buyer of an estimate of the Purchase Price of such
      Wet-Ink Mortgage Loans no later than prior to 3:00 p.m. (New York City time)
      one
      (1) Business Day prior to the requested Purchase Date. 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (iv)  With
      respect to any AM Funded Wet-Ink Mortgage Loans, prior to 5:00 p.m. (New York
      City time) one (1) Business Day prior to the requested Purchase Date (also
      a
“Notice
      Date”),
      Seller shall deliver, by facsimile or Electronic Transmission (a) the related
      Notice and Information to the related Buyer, the Disbursement Agent and the
      Custodian, and (b) copies of the Escrow Letters with respect to such Wet-Ink
      Mortgage Loans which are to be purchased to the Custodian. 

     

    (v)  With
      respect to Midday Funded Wet-Ink Mortgage Loans, prior to 12:30 (New York City
      time) on the requested Purchase Date (also a “Notice
      Date”),
      Seller shall deliver, by facsimile or Electronic Transmission (a) the related
      Notice and Information to the related Buyer, the Disbursement Agent and the
      Custodian, and (b) copies of the Escrow Letters with respect to such Wet-Ink
      Mortgage Loans which are to be purchased to the Custodian. 

     

    (vi)  With
      respect to PM Funded Wet-Ink Mortgage Loans, prior to 3:00 p.m. (New York City
      time) on the requested Purchase Date (also a “Notice
      Date”),
      Seller shall deliver, by facsimile or Electronic Transmission (a) the related
      Notice and Information to the related Buyer, the Disbursement Agent and the
      Custodian, and (b) copies of the Escrow Letters with respect to such Wet-Ink
      Mortgage Loans which are to be purchased to the Custodian. 

     

    Notwithstanding
      anything herein to the contrary, in the event that more than 250 Mortgage Files
      are to be delivered on any Purchase Date, the Custodian shall have such
      additional time to complete its review of such Mortgage Files in excess of
      250
      as agreed between the Custodian and the Seller. In such event, the Seller shall
      deliver the Mortgage Files to the Custodian so that the Custodian shall have
      the
      time required to complete its review and issue the required Trust Receipts
      on
      the Purchase Date.

     

    (b)  From
      time
      to time, the Seller shall forward to the Custodian additional original documents
      or additional documents evidencing any assumption, modification, consolidation
      or extension of a Mortgage Loan approved by the Seller, or other documents
      with
      respect to a Mortgage Loan (such additional documents, “Additional
      Documents”),
      in
      accordance with the terms of the Repurchase Agreement, and upon receipt thereof,
      the Custodian shall hold such Additional Documents for the Buyers hereunder.
      The
      Custodian shall receive such Additional Documents, but shall not be required
      to
      review any such Additional Documents other than to determine that such
      Additional Documents appear on their face to be the documents required to be
      delivered.

     

    With
      respect to any documents which have been delivered or are being delivered to
      recording offices for recording and have not been returned to the Seller in
      time
      to permit their delivery hereunder at the time required, in lieu of delivering
      such original documents, the Seller shall deliver to the Custodian a copy
      thereof certified by the Seller, originating Lender, Settlement Agent, title
      company or escrow closing company as a true, correct and complete copy of the
      original which has been transmitted for recordation. The Seller shall deliver
      such original documents to the Custodian promptly when they are received if
      the
      related Mortgage Loan is then subject to this Custodial Agreement.

     

    (c)  With
      respect to any Mortgage Loan, if the Custodian has identified such Mortgage
      Loan
      as having any Exception or if the Seller has knowledge of any Exception, the
      Seller shall promptly and diligently notify Buyers of any such Exception and
      shall promptly and diligently attempt to cure any such Exception.

     

    (d)  The
      parties hereto acknowledge and agree that the Seller may cause The New York
      Mortgage Company, LLC, on Seller’s behalf, to deliver the Mortgage Files and the
      other documents required to be delivered hereunder to the Custodian and the
      other parties hereto.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    Section
      3.  Trust
      Receipt and Loan Schedule and Exception Report.

     

    (a)  If
      the
      Custodian has received a Mortgage File for a Mortgage Loan identified on the
      Loan Schedule as provided in the preceding section, the Custodian shall review
      the documents required to be delivered pursuant to Section 2(a)(ii) above and
      Annex
      16
      and
      shall indicate on its records that Custodian maintains possession of such
      documents for Buyers hereunder.

     

    (b)  Not
      later
      than 12:00 noon (New York City time) on each Purchase Date, with respect to
      Dry
      Mortgage Loans, and not later than 5:00 p.m. (New York City time) on each
      Purchase Date with respect to Wet-Ink Mortgage Loans, the Custodian shall
      deliver to the related Buyer, (i) in accordance with the delivery procedures
      set
      forth below in Section 3(e), a Trust Receipt in respect of all Loans (including
      Wet-Ink Mortgage Loans) sold to such Buyer on such Purchase Date and any prior
      Purchase Date and held by Custodian hereunder to such Buyer, (ii) via facsimile
      or Electronic Transmission, a Loan Schedule and Exception Report for Loans
      which
      are not Wet-Ink Mortgage Loans to the related Buyer, and (iii) via facsimile
      or
      Electronic Transmission, a detailed listing of all Wet-Ink Mortgage Loans to
      the
      related Buyer, Seller and Disbursement Agent, which shall be attached to the
      related Trust Receipt. Each Loan Schedule and Exception Report and detailed
      listing of Wet-Ink Mortgage Loans delivered by Custodian to the related Buyer
      shall supersede and cancel the Loan Schedule and Exception Report and detailed
      listing of Wet-Ink Mortgage Loans previously delivered by Custodian to the
      related Buyer hereunder, and shall replace the then existing Loan Schedule
      and
      Exception Report and detailed listing of Wet-Ink Mortgage Loans to be attached
      to the Trust Receipt. In no event shall Custodian list any Loan on a Loan
      Schedule and Exception Report if Custodian has not yet reviewed the related
      Mortgage File.

     

    (c)  (i)  With
      respect to Wet-Ink Mortgage Loans, the delivery of the Transaction Notice and
      Loan Schedule to the Custodian by the Seller shall be deemed to constitute
      required documents with respect to the related Wet-Ink Mortgage Loan (and shall
      be deemed to be a certification by such Seller that such Mortgage Loan is a
      Wet-Ink Mortgage Loan) and the Mortgage File shall not be required to be
      delivered with respect to such Wet-Ink Mortgage Loan on the related Purchase
      Date. Notwithstanding the foregoing, the Seller shall deposit with the Custodian
      the Mortgage File for such Wet-Ink Mortgage Loan as soon as possible and, in
      any
      event, within seven (7) Business Days after the date the Purchase is made with
      respect to such Wet-Ink Mortgage Loan. The Custodian shall notify the related
      Buyer within one (1) Business Day of the failure by the Seller to deliver any
      document by the time provided in the previous sentence.

     

    (ii)  If
      the
      Custodian receives the Mortgage File with respect to Wet-Ink Mortgage Loans
      by
      1:30 p.m. (New York City time) on a Business Day, the Custodian shall deliver
      the related Trust Receipt and Loan Schedule and Exception Report to the related
      Buyer, in accordance with Section 3(e) below, no later than 5:00 p.m. (New
      York
      City time) on that Business Day; provided that if the Custodian receives the
      Mortgage File after 1:30 p.m. (New York City time) on a Business Day, the
      Custodian shall make such delivery by no later than the following Business
      Day.

     

    (iii)  The
      Seller hereby represents, warrants and covenants to Buyers and Custodian that
      the Seller and any person or entity acting on behalf of the Seller that has
      possession of any of the Mortgage File for such Wet-Ink Mortgage Loan prior
      to
      the deposit thereof with Custodian will hold such documents in trust for
      Buyers.

     

    (d)  The
      delivery of each Trust Receipt and Loan Schedule and Exception Report to Buyers
      as provided below shall be the Custodian’s representation that, other than the
      Exceptions listed: (i) all documents in respect of such Mortgage Loan required
      to be delivered at such time pursuant to Section 2(a)(i), and (ii) of this
      Custodial Agreement, and the documents listed in Sections (i), (ii), (iii),
      (iv)
      and, (v) of Annex
      16
      (and if
      actually delivered to the Custodian, the documents listed at Sections (vi)
      -
      (xi) of Annex
      16
      ), have
      been delivered and are in the possession of the Custodian as part of the
      Mortgage File for such Mortgage Loan; (ii) all such documents have been reviewed
      by the Custodian in accordance with the review procedures attached hereto as
      Annex
      4
      (the
“Review
      Procedures”)
      and
      appear on their face to be regular and to relate to such Mortgage Loan and
      to
      satisfy the requirements set forth in Section 2 of this Custodial Agreement;
      and
      (iii) each Mortgage Loan identified in such Loan Schedule and Exception Report
      is being held by the Custodian as bailee for the Buyer and/or its designees
      pursuant to this Custodial Agreement.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (e)  The
      Custodian shall deliver each original Trust Receipt and Loan Schedule and
      Exception Report to Buyers at 60 Wall Street, New York, New York, 10005,
      Attention: Vincent D’Amore (telephone: (212) 250-7328) on each Purchase Date, or
      day that mortgage files are released following any sale of the related Mortgage
      Loan, by overnight delivery using a nationally recognized overnight delivery
      service at the Seller’s expense. Alternatively, a Trust Receipt and Loan
      Schedule and Exception Report may be delivered electronically to the related
      Buyers on the related Purchase Date; provided that the Custodian shall deliver
      the original Trust Receipt and Loan Schedule and Exception Report to the related
      Buyers by overnight mail pursuant to the preceding sentence. Each Trust Receipt
      and Loan Schedule and Exception Report subsequently delivered by the Custodian
      to Buyers shall supersede and cancel the Trust Receipt and Loan Schedule and
      Exception Report previously delivered by the Custodian to Buyers hereunder,
      and
      shall replace the then existing Loan Schedule and Exception Report and the
      then
      existing Trust Receipt; provided that any Trust Receipt issued in respect of
      Wet-Ink Mortgage Loans shall only supercede any Trust Receipt previously issued
      in respect of such Wet-Ink Mortgage Loans, any Trust Receipt issued in respect
      of Dry Mortgage Loans shall only supercede any Trust Receipt previously issued
      in respect such Dry Mortgage Loans.

     

    (f)  In
      connection with any Trust Receipt and Loan Schedule and Exception Report
      delivered hereunder by the Custodian, the Custodian makes no representations
      as
      to and shall not be responsible to verify (A) the validity, legality,
      enforceability, due authorization, recordability, sufficiency, or genuineness
      of
      any of the documents contained in each Mortgage File or (B) the collectability,
      insurability, effectiveness or suitability of any such Mortgage Loan. Subject
      to
      the following sentence, the Seller and Buyers hereby give the Custodian notice
      that from and after the Purchase Date, Buyers shall own (or, alternatively,
      have
      a security interest in) each Mortgage Loan identified on a Loan Schedule and
      Exception Report until such time that the Custodian receives written notice
      from
      the Buyer that the Buyer no longer owns or has a security interest in such
      Mortgage Loan.

     

    (g)  No
      later
      than 5:00 p.m. (New York City time) on each Business Day, Custodian shall also
      deliver to Seller and the related Buyer, by electronic transmission, a daily
      aging report setting forth such information with respect to the Purchased Loans
      as may be reasonably required by the related Buyer (the “Daily
      Aged Report”).
      Custodian shall monitor each Loan on a daily basis in order that all information
      set forth on the Daily Aged Report is accurate as of the time such Daily Aged
      Report is delivered. Disbursement Agent shall provide to Custodian all
      information in its possession that Custodian requires in order to complete
      and
      deliver each Daily Aged Report.

     

    Section
      4.  Obligations
      of the Custodian.

     

    (a)  The
      Custodian shall maintain continuous custody of all items constituting the
      Mortgage Files in secure facilities in accordance with customary standards
      for
      such custody and shall reflect in its records the interest of Buyers therein.
      Each Mortgage Note (and Assignment of Mortgage) shall be maintained in fire
      resistant facilities.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (b)  With
      respect to the documents constituting each Mortgage File, the Custodian shall
      (i) act exclusively as the bailee of, and custodian for, Buyers, (ii) hold
      all
      documents constituting such Mortgage File received by it for the exclusive
      use
      and benefit of Buyers, and (iii) make disposition thereof only in accordance
      with the terms of this Custodial Agreement or with written instructions
      furnished by Buyers; provided, however, that in the event of a conflict between
      the terms of this Custodial Agreement and the written instructions of Buyers,
      the Buyers’ written instructions shall control.

     

    (c)  In
      the
      event that (i) a Buyer, the Seller or the Custodian shall be served by a third
      party with any type of levy, attachment, writ or court order with respect to
      any
      Mortgage File or any document included within a Mortgage File or (ii) a third
      party shall institute any court proceeding by which any Mortgage File or a
      document included within a Mortgage File shall be required to be delivered
      otherwise than in accordance with the provisions of this Custodial Agreement,
      the party receiving such service shall promptly deliver or cause to be delivered
      to the other parties to this Custodial Agreement copies of all court papers,
      orders, documents and other materials concerning such proceedings. The Custodian
      shall, to the extent permitted by law or any court order continue to hold and
      maintain all the Mortgage Files that are the subject of such proceedings pending
      a final, nonappealable order of a court of competent jurisdiction permitting
      or
      directing disposition thereof. Upon final determination of such court, the
      Custodian shall dispose of such Mortgage File or any document included within
      such Mortgage File as directed by Buyers which shall give a direction consistent
      with such determination. Expenses of the Custodian (including reasonable
      attorneys’ fees and related expenses) incurred as a result of such proceedings
      shall be borne by the Seller.

     

    (d)  Buyers
      hereby acknowledges that the Custodian shall not be responsible for the validity
      of Buyers’ ownership interest or the validity and perfection of the Buyers’
security interest in the Purchased Loans under the Repurchase Agreement, other
      than the Custodian’s obligation to take possession of Mortgage Loans as set
      forth in Section 2 hereof.

     

    (e)  During
      the term of this Custodial Agreement, if the Custodian discovers any
      nonconformity with the review criteria in Annex
      4
      with
      respect to any Mortgage File, the Custodian shall, by means of the Loan Schedule
      and Exception Report, give written or electronic specification of such
      nonconformity to Buyers and the Seller.

     

    Section
      5.  Release
      of Purchased Loans.

     

    (a)  From
      time
      to time until the Custodian is otherwise notified in writing by an Authorized
      Representative of a Buyer (and a copy thereof shall be sent by Buyers to
      Seller), the Custodian is hereby authorized upon receipt of written request
      of
      the Seller to release Mortgage Files relating to Mortgage Loans in the
      possession of the Custodian to the Seller, or its designee, for the purpose
      of
      servicing or correcting documentary deficiencies relating thereto against a
      request for release of Mortgage Files and receipt (a “Request
      for Release and Receipt”)
      executed by the Seller in the form of Annex
      5
      hereto,
      which Request for Release and Receipt must also be executed by Buyers in the
      event that more than five (5) Mortgage Files would be released following such
      requested release. The Custodian shall not restrict such releases, but shall
      promptly notify Buyers of the occurrence of each such release of Mortgage Files
      and shall keep track of each such release of Mortgage Files. The Seller or
      its
      designee shall return to the Custodian each Mortgage File previously released
      by
      the Custodian within ten (10) calendar days after receipt thereof other than
      for
      any Mortgage Loan which has been paid in full by the related Mortgagor or any
      Mortgage Loan as to which the related Mortgage File has been released pursuant
      to Section 5(c) to an Acceptable Attorney pursuant to an Attorney’s Bailee
      Letter. The Seller hereby further represents and warrants to Buyers that any
      such request by the Seller for release of Purchased Loans shall be solely for
      the purposes set forth in the Request for Release and Receipt and that the
      Seller has requested such release in compliance with all terms and conditions
      of
      such release set forth in the Repurchase Agreement. Notwithstanding anything
      to
      the contrary contained in the foregoing, any request for release of Mortgage
      Notes shall be deemed to be a representation by the Seller (upon which the
      Custodian may rely) that such release is being requested only for the purpose
      of
      (i) ultimate sale or exchange or (ii) presentation, collection, renewal or
      registration of transfer.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (b)  (i)  From
      time
      to time until otherwise notified in writing by Buyers (and a copy thereof shall
      be sent by Buyers to Seller), the Custodian is hereby authorized upon receipt
      of
      written request of the Seller at least two (2) Business Days prior to the date
      of the anticipated sale, to release Mortgage Files in the possession of the
      Custodian to a third-party purchaser (subject to the written consent of Buyers
      if such third party purchaser is not an Approved Purchaser) for the purpose
      of
      resale thereof against a Notice of Sale and Request for Release executed by
      the
      Seller and Buyers (in their discretion) in the form of Annex
      3
      hereto.
      On such Notice of Sale and Request for Release, the Seller shall indicate the
      Mortgage Loans to be sold, such information to be provided in electronic medium
      acceptable to the Seller and the Custodian, the approximate amount of sale
      proceeds anticipated to be received, the date of such anticipated sale, the
      name
      and address of the third-party purchaser, whether the shipment is made pursuant
      to the sale of the Mortgage Loans to a third party or pursuant to the formation
      of a mortgage pool supporting a mortgage-backed or asset-backed security (an
      “MBS”),
      and
      the preferred method and date of delivery. For the avoidance of doubt, under
      no
      circumstances shall any Buyer have any obligation to consent to any such Notice
      of Sale and Request for Release after the occurrence of a Default or an Event
      of
      Default.

     

    (ii)  Any
      transmittal of a Mortgage File for a Mortgage Loan in the possession of the
      Custodian in connection with the sale thereof to a third-party purchaser will
      be
      under cover of a Transmittal Letter substantially in the form attached hereto
      as
Annex
      12
      duly
      completed by the Custodian and executed by the Custodian. Promptly upon receipt
      by Buyers of the full amount of the takeout proceeds (constituting not less
      than
      the “Payoff
      Amount”)
      with
      respect to such Mortgage Loan into the account set forth in such Transmittal
      Letter, Buyers shall notify the Custodian thereof in writing and Custodian
      shall
      reflect in its records the release and sale of such Mortgage Loan. Any Payoff
      Amount sent by a third-party purchaser of Mortgage Loans shall be sent to the
      account designated by Buyers.

     

    (c)  (i)  From
      time
      to time until otherwise notified in writing by Buyers, which notice shall be
      given by Buyers only following the occurrence of an Event of Default (and a
      copy
      thereof shall be sent by Buyers to Seller), and as appropriate for the
      foreclosure of any of the Mortgage Loans, the Custodian is hereby authorized,
      upon receipt of a Request for Release and Receipt from the Seller to send to
      an
      Acceptable Attorney copies or originals of the Mortgage Files listed in the
      Request for Release and Receipt. The Custodian shall not send to an Acceptable
      Attorney an original Mortgage File unless the Custodian shall have retained
      a
      complete and accurate copy of such Mortgage File. The Custodian may destroy
      any
      such copies retained upon receipt of written instructions from Buyers to destroy
      such copies. In accordance with the terms of the Attorney’s Bailee Letter, the
      Acceptable Attorney to whom such Mortgage Files are sent is instructed to
      acknowledge receipt of each such document by faxing to Buyers and the Custodian
      a list of such Mortgage Files confirming that such Acceptable Attorney is
      holding the same as bailee of Buyers under the applicable Attorney’s Bailee
      Letter, for receipt as soon as possible and in any event no later than three
      (3)
      Business Days following receipt thereof by such Acceptable Attorney. Buyers
      may,
      by written notice to the Custodian and the Seller, respectively, exclude any
      attorney-at-law with whom Buyers are not reasonably satisfied, from being an
      Acceptable Attorney. The Custodian shall promptly notify Buyers that it has
      released any Mortgage File to an Acceptable Attorney.

     

    (ii)  In
      accordance with each Attorney’s Bailee Letter, no later than three (3) Business
      Days prior to the foreclosure of any Mortgage Loan, the Acceptable Attorney
      party thereto shall notify the Seller of the scheduled date of foreclosure
      of
      each such Mortgage Loan (the “Scheduled
      Foreclosure Date”),
      and
      of any subsequent changes to the Scheduled Foreclosure Date. The Seller hereby
      agrees in any event to promptly notify the Custodian and Buyer in writing upon
      completion of any foreclosure. On the date of foreclosure, such Mortgage Loan
      shall be deemed deleted from any Trust Receipt then outstanding.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (d)  From
      time
      to time until the Custodian is otherwise notified by Buyers, and with the prior
      written consent of Buyers (and a copy thereof shall be sent by Buyers to
      Seller), the Seller may substitute for one or more Eligible Mortgage Loans
      constituting the Purchased Loans one or more substitute Eligible Mortgage Loans
      having aggregate Purchase Prices equal to or greater than the Purchase Prices
      of
      the Mortgage Loans being substituted for, or obtain the release of one or more
      Mortgage Loans constituting Purchased Loans hereunder; provided
      that,
      after giving effect to such substitution or release, no Margin Deficit shall
      occur, which determination shall be made solely by the Buyer in accordance
      with
      the Repurchase Agreement. In connection with any such requested substitution
      or
      release, the Seller will provide notice to the Custodian and Buyers no later
      than 12:00 p.m. (New York City time), on the date of such request,
      specifying the Mortgage Loans to be substituted for or released and the
      substitute Mortgage Loans to be purchased in substitution therefor, if any,
      and
      shall deliver with such notice a revised Loan Schedule indicating any substitute
      Mortgage Loans. If the Custodian and Buyers have received notice in accordance
      with the preceding sentence, the Custodian will effect the requested
      substitution or release no later than 3:00 p.m. (New York City time), two (2)
      Business Days following the day on which such request was made after the
      Custodian has certified to Buyers on such Business Day that the matters set
      forth in Section 3(a) hereof with respect to any substitute Mortgage Loans
      are
      true and correct. Each such substitution or release shall be deemed to be a
      representation and warranty by the Seller that any substitute Mortgage Loans
      are
      eligible for purchase under the Repurchase Agreement and that after giving
      effect to such substitution or release, no Margin Deficit shall
      occur.

     

    (e)  So
      long
      as no Event of Default has occurred and is continuing and to the extent written
      notice has been provided to the Custodian, the Custodian and Buyers shall take
      such steps as they may reasonably be directed from time to time by the Seller
      in
      writing, which the Seller deems necessary and appropriate, to transfer promptly
      and deliver to the Seller any Mortgage File in the possession of the Custodian
      relating to any Mortgage Loan previously purchased by Buyers but which the
      Seller, with the written consent of Buyers, has notified the Custodian has
      ceased to be subject to the terms of the Repurchase Agreement, or any Mortgage
      Loan in respect of which the Seller has paid the applicable Repurchase Price
      in
      full.

     

    (f)  The
      Custodian shall provide a notice to Buyers as to any Mortgage Loan which (i)
      has
      been released to the Seller pursuant to Section 5(a) hereof in excess of ten
      (10) calendar days; (ii) has been released under Section 5(b) hereof under
      any
      Transmittal Letter in excess of the time period stated in such Transmittal
      Letter for release.

     

    Section
      6.  Fees
      and Expenses of Custodian.

     

    The
      Custodian shall charge such fees for its services under this Custodial Agreement
      as are set forth in a separate agreement between the Custodian and the Seller,
      the payment of which fees, together with the Custodian’s expenses incurred in
      connection herewith, shall be solely the obligation of the Seller. The
      failure of Seller to pay any such fees shall not excuse the performance by
      Custodian of any of its obligations hereunder. The
      obligations of the Seller under this Section 6 shall survive the termination
      of
      this Custodial Agreement and the resignation or removal of the
      Custodian.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    Section
      7.  Removal
      or Resignation of Custodian.

     

    (a)  The
      Custodian may at any time resign and terminate its obligations under this
      Custodial Agreement upon at least 60 days’ prior written notice to the Seller
      and Buyers. Promptly after receipt of notice of the Custodian’s resignation,
      Buyers shall appoint, by written instrument, a successor custodian, subject
      to
      written approval by Seller (which approval shall not be unreasonably withheld).
      One original counterpart of such instrument of appointment shall be delivered
      to
      each of the Buyers, the Seller, the Custodian and the successor custodian.
      If
      the successor Custodian shall not have been appointed within 60 days of the
      Custodian’s providing such notice, the Custodian may petition any court of
      competent jurisdiction to appoint a successor Custodian.

     

    (b)  Buyers
      (with the consent of Seller, which consent shall not be unreasonably withheld),
      upon at least 30 days’ prior written notice to the Custodian, may remove and
      discharge the Custodian (or any successor custodian thereafter appointed) from
      the performance of its obligations under this Custodial Agreement. Promptly
      after the giving of notice of removal of the Custodian, Buyers shall appoint,
      by
      written instrument, a successor custodian, which appointment shall be reasonably
      acceptable to the Seller. One original counterpart of such instrument of
      appointment shall be delivered to each of the Buyers, the Seller, the Custodian
      and the successor custodian.

     

    (c)  In
      the
      event of any such resignation or removal, the Custodian shall, promptly upon
      the
      simultaneous surrender of any outstanding Trust Receipts held by Buyer, transfer
      to the successor custodian, as directed in writing, all the Mortgage Files
      being
      administered under this Custodial Agreement. The cost of the shipment of
      Mortgage Files arising out of the resignation of the Custodian shall be at
      the
      expense of the Custodian unless such resignation is due to the nonpayment of
      its
      fees and expenses hereunder, in which case such expense shall be paid by the
      Seller; and any cost of shipment arising out of the removal of the Custodian
      by
      Buyers or the Seller for cause shall be at the expense of the Custodian. The
      cost of shipment arising out of the removal of the Custodian by Buyers or the
      Seller without cause shall be at the expense of the Seller. The Seller shall
      be
      responsible for the fees and expenses of the successor custodian and the fees
      and expenses for endorsing the Mortgage Notes and assigning the Mortgages to
      the
      successor custodian if required pursuant to this paragraph.

     

    Section
      8.  Examination
      of Mortgage Files.

     

    Upon
      reasonable prior notice to the Custodian (which shall be two (2) Business Days
      or such shorter period of time agreed to by the Custodian and Buyers) and upon
      reasonable terms and conditions and at the Seller’s expense, Buyers and each of
      its respective agents, accountants, attorneys and auditors will be permitted
      during normal business hours to examine,
      inspect, and make copies of the
      Mortgage Files, documents, records and other papers in the possession of or
      under the control of the Custodian relating to any or all of the Mortgage
      Loans.

     

    Section
      9.  Insurance
      of Custodian.

     

    At
      its
      own expense, the Custodian shall maintain at all times during the existence
      of
      this Custodial Agreement and keep in full force and effect fidelity insurance,
      theft of documents insurance, forgery insurance and errors and omissions
      insurance. All such insurance shall be in amounts, with standard coverage and
      subject to deductibles, all as is customary for insurance typically maintained
      by institutions which act as custodian of assets substantially similar to the
      Purchased Loans and act in a collateral agent capacity. The minimum coverage
      under any such bond and insurance policies shall be at least equal to the
      corresponding amounts required by Fannie Mae or Freddie Mac in the Applicable
      Guide. Upon request, Buyers or the Seller shall be entitled to receive a
      certificate of the respective insurer that such insurance is in full force
      and
      effect.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    Section
      10.  Representations
      and Warranties.

     

    The
      Custodian represents and warrants to Buyers that:

     

    (a)  The
      Custodian is (i) a national banking association duly organized, validly existing
      and in good standing under laws of the United States and (ii) duly qualified
      and
      in good standing and in possession of all requisite authority, power, licenses,
      permits and franchises in order to execute, deliver and comply with its
      obligations under the terms of this Custodial Agreement.

     

    (b)  The
      Custodian has all requisite right, power and authority to execute and deliver
      this Custodial Agreement and to perform all of its duties as the Custodian
      hereunder.

     

    (c)  The
      execution, delivery and performance of this Custodial Agreement have been duly
      authorized by all necessary corporate action on the part of the Custodian,
      and
      neither the execution and delivery of this Custodial Agreement by the Custodian
      in the manner contemplated herein nor the Custodian’s performance of and
      compliance with the terms hereof will violate, contravene or create a default
      under any charter document or bylaw of the Custodian.

     

    (d)  Neither
      the execution and delivery of this Custodial Agreement by the Custodian, nor
      its
      performance of and compliance with its obligations and covenants hereunder,
      require the consent or approval of any governmental authority or, if such
      consent or approval is required, it has been obtained.

     

    (e)  This
      Custodial Agreement, when executed and delivered by the Custodian, will
      constitute valid, legal and binding obligations of the Custodian, enforceable
      against the Custodian in accordance with their respective terms, except as
      the
      enforcement thereof may be limited by applicable debtor relief laws and that
      certain equitable remedies may not be available regardless of whether
      enforcement is sought in equity or at law.

     

    (f)  The
      Custodian is not an Affiliate of the Seller or Guarantor.

     

    (g)  At
      all
      times the Custodian shall be a corporation or association organized and doing
      business under the laws of the United States of America or of any State, and
      shall be authorized under such laws to exercise corporate trust powers, subject
      to supervision or examination by the United States of America or any such State,
      and shall have (x) a short-term, unsecured debt rated at least P-1 by Moody’s
      Investors Service, Inc. (or such lower rating as may be acceptable to Seller
      and
      Buyer) and (y) a short term deposit rating of at least A-1 from Standard &
Poor’s Ratings Services (or such lower rating as may be acceptable to Seller and
      Buyer).

     

    (h)  The
      Custodian shall at all times have a combined capital and surplus of at least
      $50,000,000 as set forth in its then most recent published annual report of
      condition.

     

    Section
      11.  Statements.

     

    Upon
      the
      request of Buyers or the Seller, the Custodian shall provide Buyers or the
      Seller, as applicable, with a list of all the Mortgage Loans for which the
      Custodian holds a Mortgage File pursuant to this Custodial Agreement. Such
      list
      shall be in the form of a Loan Schedule and Exception Report. Upon the request
      of Buyers, the Custodian shall provide Buyers with any reports or information
      reasonably requested by Buyers.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    Section
      12.  No
      Adverse Interest of Custodian.

     

    By
      execution of this Custodial Agreement, the Custodian represents and warrants
      that it currently holds, and during the existence of this Custodial Agreement
      shall hold, no adverse interest, by way of security or otherwise, in any
      Mortgage Loan, and hereby waives and releases any such interest which it may
      have in any Mortgage Loan as of the date hereof. The Mortgage Loans shall not
      be
      subject to any security interest, lien or right to set-off by Custodian or
      any
      third party claiming through Custodian, and Custodian shall not pledge,
      encumber, hypothecate, transfer, dispose of, or otherwise grant any third party
      interest in, the Mortgage Loans.

     

    Section
      13.  Indemnification
      of Custodian.

     

    The
      Seller and Guarantor, jointly and severally, agree to reimburse, indemnify
      and
      hold the Custodian and its directors, officers, agents and employees harmless
      against any and all liabilities, obligations, losses, damages, penalties,
      actions, judgments, suits, costs, or out-of-pocket expenses of any kind or
      nature whatsoever, including reasonable attorney’s fees, that may be imposed on,
      incurred by, or asserted against it or them in any way relating to or arising
      out of this Custodial Agreement or any action taken or not taken by it or them
      hereunder unless such liabilities, obligations, losses, damages, penalties,
      actions, judgments, suits, costs, or out-of-pocket expenses were imposed on,
      incurred by or asserted against the Custodian because of the breach by the
      Custodian of its obligations hereunder, or caused by the negligence, lack of
      good faith or willful misconduct on the part of the Custodian or any of its
      directors, officers, agents or employees. The foregoing indemnification shall
      survive any resignation or removal of the Custodian or the termination or
      assignment of this Custodial Agreement.

     

    In
      the
      event that the Custodian fails to produce a Mortgage Note, Assignment of
      Mortgage or any other document related to a Mortgage Loan that was in its
      possession pursuant to Section 2 within two (2) Business Days after written
      request therefor by Buyers or the Seller in accordance with the terms and
      conditions of this Custodial Agreement; provided
      that
      (i) Custodian previously delivered to Buyers a Trust Receipt and a Loan
      Schedule and Exception Report which did not list such document as an Exception
      on the related Purchase Date; (ii) such document is not outstanding
      pursuant to a Request for Release and Receipt in the form annexed hereto as
      Annex 5;
      and
      (iii) such document was held by the Custodian on behalf of the Seller or
      the Buyer, as applicable (a “Custodial
      Delivery Failure”),
      then
      the Custodian shall (a) with respect to any missing Mortgage Note, promptly
      deliver to the Buyer or the Seller, upon request, a Lost Note Affidavit in
      the
      form of Annex
      10
      hereto
      and (b) with respect to any missing document related to such Mortgage Loan,
      including but not limited to a missing Mortgage Note, indemnify the Seller
      and
      Buyer in accordance with the succeeding paragraph of this Section 13.
      Notwithstanding the foregoing, in the event that the Custodian fails to produce
      a Mortgage Note with respect to a Mortgage Loan requested pursuant to Section
      5(b) hereof which was not otherwise released by the Custodian pursuant to the
      terms of this Custodial Agreement, the Custodian shall then promptly (but no
      later than two (2) Business Days following such request) provide the Buyer
      or
      the Seller, as applicable, with a Lost Note Affidavit. In the event that such
      original Mortgage Note is subsequently found and delivered to the Buyers or
      the
      Seller, as applicable, such party shall return the Lost Note Affidavit to the
      Custodian. For the avoidance of doubt, the Custodian shall not release to the
      Seller any Mortgage Note or the related Mortgage File, unless the Buyers shall
      otherwise consent or direct, until the Buyer(s) have received the related
      Repurchase Price together with any and all other Obligations then due and
      payable, and the Buyers have so notified the Custodian.

     

    The
      Custodian agrees to indemnify and hold the Buyer and Seller, and their and
      their
      respective present or former affiliates, directors, officers, employees, agents,
      representatives and designees harmless against any and all liabilities,
      obligations, losses, damages, penalties, actions, judgments, suits, costs,
      or
      out-of-pocket expenses, including reasonable attorney’s fees, that may be
      imposed on, incurred by, or asserted against it or them in any way relating
      to
      or arising out of a Custodial Delivery Failure or the Custodian’s negligence,
      lack of good faith or misconduct or any breach of the conditions,
      representations or warranties contained herein. The foregoing indemnification
      shall survive any termination or assignment of this Custodial
      Agreement.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    Section
      14.  Concerning
      the Custodian.

     

    In
      the
      absence of bad faith on the part of the Custodian, the Custodian may
      conclusively rely, as to the truth of the statements and the correctness of
      the
      opinions expressed therein, upon any request, instruction, certificate, opinion
      or other document furnished to the Custodian, reasonably believed by the
      Custodian to be genuine and to have been signed or presented by the proper
      party
      or parties and conforming to the requirements of this Custodial Agreement;
      but
      in the case of any Mortgage Loan Document or other request, instruction,
      document or certificate which by any provision hereof is specifically required
      to be furnished to the Custodian, the Custodian shall be under a duty to examine
      the same in accordance with the requirements of this Custodial
      Agreement.

     

    The
      Custodian undertakes to perform such duties and only such duties as are
      specifically set forth in this Custodial Agreement. The Custodian shall not
      have
      any duties or responsibilities except those expressly set forth in this
      Custodial Agreement.

     

    The
      Custodian shall not be liable for any error of judgment made in good faith
      by an
      officer or officers of the Custodian, unless it shall be conclusively determined
      by a court of competent jurisdiction that the Custodian was grossly negligent
      in
      ascertaining the pertinent facts.

     

    The
      Custodian shall not be liable with respect to any action taken or omitted to
      be
      taken by it in good faith in accordance with any direction of the Seller or
      Buyers given under this Custodial Agreement.

     

    None
      of
      the provisions of this Custodial Agreement shall require the Custodian to expend
      or risk its own funds or otherwise to incur any liability, financial or
      otherwise, in the performance of any of its duties hereunder, or in the exercise
      of any of its rights or powers if it shall have reasonable grounds for believing
      that repayment of such funds or indemnity satisfactory to it against such risk
      or liability is not assured to it.

     

    The
      Custodian may consult with nationally recognized counsel and the written advice
      or any written opinion of such counsel shall be full and complete authorization
      and protection in respect of any action taken or omitted by it hereunder in
      good
      faith and in accordance with such advice or opinion of counsel.

     

    Any
      entity into which the Custodian may be merged or converted or with which it
      may
      be consolidated, or any entity resulting from any merger, conversion or
      consolidation to which the Custodian shall be a party, or any entity succeeding
      to the business of the Custodian shall be the successor of the Custodian
      hereunder without the execution or filing of any paper with any parties hereto
      or any further act on the part of any of the parties hereto except where an
      instrument or transfer or assignment is required by law to effect such
      succession, anything herein to the contrary notwithstanding.

     

    Section
      15.  Term
      of Custodial Agreement.

     

    Promptly
      after written notice from Buyers of the termination of the Repurchase Agreement
      and payment in full of all amounts owing to Buyers thereunder, the Custodian
      shall deliver all documents remaining in the Mortgage Files to the Seller,
      and
      this Custodial Agreement shall thereupon terminate.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    Section
      16.  Notices.

     

    All
      demands, notices and communications hereunder shall be in writing and shall
      be
      deemed to have been duly given when received by the recipient party at the
      address shown on its signature page hereto, or at such other addresses as may
      hereafter be furnished to each of the other parties by like notice. Any such
      demand, notice or communication hereunder shall be deemed to have been received
      on the date delivered to or received at the premises of the addressee. Any
      demand, notice or communication hereunder shall be (i) sent by telecopy, (ii)
      delivered in person, (iii) transmitted by a recognized private (overnight)
      courier service, or (iv) by Electronic Transmission. The Custodian’s office is
      located at the address set forth on its signature page hereto, and each party
      hereto agrees to notify each other party if its address should
      change.

     

    Section
      17.  GOVERNING
      LAW.

     

    THIS
      CUSTODIAL AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY,
      THE
      LAW OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS
      PRINCIPLES THEREOF (EXCEPT FOR SECTION 5-1401 OF THE NEW YORK GENERAL
      OBLIGATIONS LAW).

     

    Section
      18.  Authorized
      Representatives.

     

    Each
      individual designated as an authorized representative of a Buyer or its
      successors or assigns, the Seller, the Guarantor and the Custodian, respectively
      (an “Authorized
      Representative”),
      is
      authorized to give and receive notices, requests and instructions and to deliver
      certificates and documents in connection with this Custodial Agreement on behalf
      of Buyers, the Seller, the Guarantor and the Custodian, as the case may be,
      and
      the specimen signature for each such Authorized Representative, initially
      authorized hereunder, is set forth on Annexes
      6,
      7,
      8
      and
9
      hereof,
      respectively. From time to time, Buyers, the Seller, the Guarantor or the
      Custodian or their respective successors or permitted assigns may, by delivering
      to the others a revised annex, change the information previously given pursuant
      to this Section 18, but each of the parties hereto shall be entitled to rely
      conclusively on the then current annex until receipt of a superseding
      annex.

     

    Section
      19.  Amendment.

     

    This
      Custodial Agreement may be amended from time to time by written agreement signed
      by the Seller, Guarantor, Buyers and the Custodian.

     

    Section
      20.  Cumulative
      Rights.

     

    The
      rights, powers and remedies of the Custodian and Buyers under this Custodial
      Agreement shall be in addition to all rights, powers and remedies given to
      the
      Custodian and Buyers by virtue of any statute or rule of law, the Repurchase
      Agreement or any other agreement, all of which rights, powers and remedies
      shall
      be cumulative and may be exercised successively or concurrently without
      impairing Buyers’ ownership or security interest in the Purchased
      Loans.

     

    Section
      21.  Binding
      Upon Successors.

     

    Subject
      to the provisions of Section 25, all rights of the Custodian, the Seller,
      Guarantor and Buyers under this Custodial Agreement shall inure to the benefit
      of the Custodian, the Seller, Guarantor and Buyers and their successors and
      permitted assigns.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    Section
      22.  Entire
      Agreement; Severability.

     

    This
      Custodial Agreement and the other Program Documents contain the entire agreement
      with respect to the Purchased Loans among the Custodian, Buyers, Guarantor
      and
      the Seller. If any of the provisions of this Custodial Agreement shall be held
      invalid or unenforceable, this Custodial Agreement shall be construed as if
      not
      containing such provisions, and the rights and obligations of the parties hereto
      shall be construed and enforced accordingly.

     

    Section
      23.  Execution
      In Counterparts.

     

    This
      Custodial Agreement may be executed in counterparts, each of which when so
      executed shall be deemed to be an original and all of which when taken together
      shall constitute one and the same agreement.

     

    Section
      24.  Tax
      Reports.

     

    The
      Custodian shall not be responsible for the preparation or filing of any reports
      or returns relating to federal, state or local income taxes with respect to
      this
      Custodial Agreement, other than in respect of the Custodian’s compensation or
      for reimbursement of expenses.

     

    Section
      25.  Assignment.

     

    This
      Agreement may not be assigned in whole or in part by Seller, Custodian or
      Guarantor without the prior written consent of Buyers. Buyers
      shall have free and unrestricted use of the Mortgage Loans and may engage in
      financing, repurchase, purchase and sale, sale, or similar transactions with
      the
      Mortgage Loans and otherwise pledge, repledge, transfer, hypothecate or
      rehypothecate the Mortgage Loans and all rights of Buyers under the Repurchase
      Agreement (and this Custodial Agreement) to any assignee designated by Buyers
      (each, an “Assignee”).
      The
      Seller hereby irrevocably consents to any such assignment. Upon receipt of
      written notice to the Custodian of any such assignment in the form attached
      hereto as Annex
      11,
      the
      Custodian shall mark its records to reflect the pledge or assignment of the
      Mortgage Loans by Buyers to the Assignee. The Custodian’s records shall reflect
      the pledge or assignment of the Mortgage Loans by Buyers to the Assignee until
      such time as the Custodian receives written instructions from the Buyer with
      consent from the Assignee that the Mortgage Loans are no longer pledged or
      assigned by the Buyer to the Assignee, at which time the Custodian shall change
      its records to reflect the release of the pledge or assignment of the Mortgage
      Loans, and that the Custodian is holding the Mortgage Loans, as custodian for,
      and for the benefit of, Buyers.

     

    If
      at any
      time after a Buyer shall have made such an assignment or pledge, the Assignee
      shall deliver to the Custodian a notice in the form of Annex 18 to the Custodian
      of the Buyer’s default under an agreement between Buyer and Assignee relating to
      the financing by Assignee of the Buyer’s advances with respect to the Mortgage
      Loans (a “Default Notice”), Assignee may, subject to any limitations in any such
      agreement between Assignee and such Buyer, (i) require Custodian to act with
      respect to the related Mortgage Loans solely in the capacity of custodian for,
      and bailee of, Assignee, but nevertheless subject to and only in accordance
      with
      the terms of this Custodial Agreement, (ii) require Custodian to hold such
      Mortgage Loans for the exclusive use and benefit of Assignee, and (iii) assume
      the rights of the Buyer under this Agreement to furnish instructions to the
      Custodian as to the disposition of such Mortgage Loans and such rights shall
      be
      exercisable solely by Assignee.
      In
      adddition, within three (3) Business Days of Custodian’s receipt of such Default
      Notice executed by the Buyer and receipt by the Custodian of the Trust Receipt
      from the Assignee, the Custodian shall deliver, in accordance with the written
      instructions of the Assignee, a Trust Receipt issued in the name of the Assignee
      and to the place indicated in any such written direction from the Assignee.
      Custodian shall assume that any assignment from Buyer(s) to the Assignee is
      subject to no limitations that are not expressly set forth in this Agreement.
      Until such time as the Custodian receives a Default Notice that ther exists
      an
      event of default with respect to a pledge or assignment of its interest in
      the
      Mortgage Loans and Mortgage Files, the Custodian shall take directions solely
      from Buyer and shall have no responsibility or obligation to accept,
      achknowledge or act upon notice or communications from or otherwise deal in
      any
      way with such Assignee.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    Section
      26.  Transmission
      of Mortgage Files.

     

    Prior
      to
      any shipment of any Mortgage Files, or other Mortgage Loan Documents hereunder,
      the Seller shall deliver to the Custodian written instructions as to the method
      of shipment and shipper(s) the Custodian is to utilize in connection with the
      transmission of Mortgage Files or other Mortgage Loan Documents in the
      performance of the Custodian’s duties hereunder. The Seller shall arrange for
      the provision of such services at its sole cost and expense (or, at the
      Custodian’s option, reimburse the Custodian for all costs and expenses incurred
      by the Custodian consistent with such instructions) and will maintain such
      insurance against loss or damage to Mortgage Files or other Mortgage Loan
      Documents as the Seller deems appropriate. Without limiting the generality
      of
      the provisions of Section 13 above, it is expressly agreed that in no event
      shall the Custodian have any liability for any losses or damages to any person,
      including without limitation, the Seller, arising out of actions of the
      Custodian consistent with the instructions of the Seller. In the event the
      Custodian does not receive such written instructions, the Custodian shall be
      authorized and shall be indemnified as provided herein to utilize a nationally
      recognized courier service.

     

    Section
      27.  SUBMISSION
      TO JURISDICTION; WAIVERS.

     

    EACH
      OF BUYER, SELLER, GUARANTOR AND CUSTODIAN HEREBY IRREVOCABLY AND
      UNCONDITIONALLY:

     

    (a)  SUBMITS
      FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS
      AGREEMENT AND THE OTHER PROGRAM DOCUMENTS, OR FOR RECOGNITION AND ENFORCEMENT
      OF
      ANY JUDGMENT IN RESPECT THEREOF, TO THE EXCLUSIVE GENERAL JURISDICTION OF THE
      COURTS OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN, THE FEDERAL
      COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK,
      AND APPELLATE COURTS FROM ANY THEREOF;

     

    (b)  CONSENTS
      THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND, TO THE
      EXTENT PERMITTED BY LAW, WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER
      HAVE
      TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH
      ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO
      PLEAD OR CLAIM THE SAME;

     

    (c)  AGREES
      THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY
      MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY
      SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO ITS ADDRESS SET FORTH UNDER ITS
      SIGNATURE BELOW OR AT SUCH OTHER ADDRESS OF WHICH EACH OTHER PARTY HERETO SHALL
      HAVE BEEN NOTIFIED;

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    (d)  AGREES
      THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN
      ANY
      OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER
      JURISDICTION; AND

     

    (e)  WAIVES,
      TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL
      BY
      JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT,
      ANY
      OTHER REPURCHASE DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
      THEREBY.

     

    Section
      28.   Confidentiality.

     

    Custodian
      hereby acknowledges and agrees that (i) all written or computer-readable
      information provided by any Buyer or Seller regarding any Buyer or Seller and
      (ii) the terms of this Agreement and the Repurchase Agreement (the “Confidential
      Information”),
      shall
      be kept confidential and shall not be divulged to any Person other than the
      parties hereto without the related Buyer’s and Seller’s prior written consent
      except to the extent that (i) Custodian reasonably deems necessary to do so
      in
      working with legal counsel, auditors, taxing authorities or other governmental
      agencies or regulatory bodies or in order to comply with any applicable federal
      or state laws, (ii) any portion of the Confidential Information is in the public
      domain other than due to a breach of this
      covenant
      by
      Custodian, or (iii) to the extent that Custodian is required to disclose
      Confidential Information pursuant to the requirements of any legal proceeding,
      Custodian shall notify each Buyer and Seller within one (1) Business Day of
      its
      knowledge of such legally required disclosure so that each Buyer or Seller
      may
      seek an appropriate protective order and/or waive Custodian’s compliance with
      this Agreement. Notice shall be both by telephone and in writing. In the absence
      of a protective order or waiver, Custodian may disclose the relevant
      Confidential Information if, in the written opinion of its counsel, failure
      to
      disclose such Confidential Information would subject Custodian to liability
      for
      contempt, censure or other legal penalty or liability.

     

    [SIGNATURE
      PAGE FOLLOWS]

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        
IN
        WITNESS WHEREOF, this Custodial Agreement was duly executed by the parties
        hereto as of the day and year first above written.

    

    

    
      	
              NYMC
                MORTGAGE LOAN CORPORATION,
                

              as
                Seller

               

              By:
                /s/ Steven B. Schnall

              Name:
                Steven B. Schnall

              Title:
                Chief Executive Officer

               

            	
              Address
                for Notices for the Seller:

               

              1301
                Avenue of the Americas

              7th
                Floor

              New
                York, New York 10019

              Attention:
                Chief Executive Officer

              Telephone
                No.: (212) 634-9400

              Facsimile
                No.: (212) 655-6269

               

              With
                a copy to:

              Attention:
                General Counsel

              Contact
                information as above.

               

            
	
              NEW
                YORK MORTGAGE TRUST, INC., 

              as
                Guarantor 

               

              
                
                  By:
                    /s/ Steven B. Schnall

                  Name:
                    Steven B. Schnall

                  Title:
                    Chief Executive Officer

                

              

               

            	
              Address
                for Notices for the Guarantor:

               

              1301
                Avenue of the Americas

              7th
                Floor

              New
                York, New York 10019

              Attention:
                Chief Executive Officer

              Telephone
                No.: (212) 634-9400

              Facsimile
                No.: (212) 655-6269

               

              With
                a copy to:

              Attention:
                General Counsel

              Contact
                information as above

               

            
	
              LASALLE
                BANK NATIONAL ASSOCIATION, 

              as
                Custodian

               

              
                
                  By:
                    /s/ Mark J. Jerva

                  Name:
                    Mark J. Jerva

                  Title:
                    Vice President

                

              

            	
              Address
                for Notices for the Custodian:

               

              LaSalle
                Bank NA

              Collateral
                Services

              Attn:
                Mark J. Jerva

              2571
                Busse Rd. Suite 200

              Elk
                Grove Village, IL 60007

              Telephone
                No.: 847-766-6421

              Facsimile
                No.: 847-766-3456

               

            
	
              DB
                STRUCTURED PRODUCTS, INC., 

              as
                Buyer

               

              
                
                  By:
                    /s/ Vincent D'Amore

                  Name:
                    Vincent D'Amore

                  Title:
                    Authorized Signature

                

              

               

              
                
                  By:
                    /s/ Frank Byrne

                  Name:
                    Frank Byrne

                  Title:
                    Managing Director

                

              

            	
              Address
                for Notices for the Buyers:

               

              60
                Wall Street

              New
                York, NY 10005

              Attention:
                Vincent D’Amore

              Telephone
                No.: (212) 250-7328

              Facsimile
                No.: (212) 797-5160 

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
               

              ASPEN
                FUNDING CORP., 

              as
                Buyer

               

              
                
                  By:___________________________________

                  Name:_________________________________

                  Title:__________________________________

                

                 

              

            	 
	
              NEWPORT
                FUNDING CORP., as Buyer

               

              
                
                  By:___________________________________

                  Name:_________________________________

                  Title:__________________________________

                

              

            	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
      1

    to
      Custodial Agreement

     

    REQUIRED
      FIELDS FOR LOAN SCHEDULE

     

    
      	
              Global
                Asset Securitization

            	 
	
              Asset-Backed
                Securities

            	 
	
              Field
                List

            	 
	 	 
	
              ***All
                Contracts***

            	
              ***Variable
                Rate Contracts***

            
	
              Loan
                Id

            	
              Gross
                Margin

            
	
              Borrower
                Name

            	
              Minimum
                Rate 

            
	
              Property
                Street Address

            	
              Maximum
                Rate

            
	
              Property
                City

            	
              Lifetime
                Rate Cap

            
	
              Property
                State

            	
              Lifetime
                Rate Floor

            
	
              Property
                Zip Code

            	
              Initial
                Periodic Rate Cap

            
	
              Property
                County

            	
              Subsequent
                Periodic Rate Cap

            
	
              Original
                Balance

            	
              Periodic
                Rate Floor

            
	
              Current
                Balance

            	
              Periodic
                Payment Cap

            
	
              Property
                Value

            	
              Negative
                Amortization Flag

            
	
              Sales
                Price / BPO

            	
              Negative
                Amortization Cap

            
	
              Original
                P&I

            	
              Initial
                Rate Teaser Period

            
	
              Current
                P&I

            	
              Initial
                Payment Teaser Period

            
	
              Payment
                Frequency 

            	
              Rate
                Adjustment Period

            
	
              Original
                Coupon

            	
              Payment
                Adjustment Period

            
	
              Current
                Coupon

            	
              First
                Rate Adjustment Date

            
	
              As-of
                / Cut-Off Date

            	
              First
                Payment Adjustment Date

            
	
              Origination
                Date

            	
              Next
                Rate Adjustment Date

            
	
              First
                Payment Date

            	
              Next
                Payment Adjustment Date

            
	
              Maturity
                Date

            	
              Months
                to Next Rate Adjustment

            
	
              Paid
                Thru Date or Next Payment Due Date

            	
              Months
                to Next Payment Adjustment

            
	
              Original
                Term

            	 
	
              Stated
                Remaining Term

            	 
	
              Seasoning

            	 
	
              Original
                Subject LTV

            	 
	
              Current
                Subject LTV

            	 
	
              Original
                Combined LTV (if any 2nd Liens)

            	 
	
              Current
                Combined LTV (if any 2nd Liens)

            	 
	
              Simultaneous
                Second (Y/N)

            	 
	
              Senior
                Balance (if junior lien)

            	 
	
              Junior
                Balance (if loan has simultaneous second)

            	 
	
              Adjustment
                Type (Fixed or Adjustable)

            	 
	
              Index
                Type (6 Month Libor, 1 Year CMT, etc.)

            	 
	
              Product
                Type (6 month ARM, 2/28, 3/27, etc.)

            	 
	
              Property
                Type

            	 
	
              Number
                of Units

            	 
	
              Occupancy
                Type

            	 
	
              Purpose

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              Documentation
                Level

            	 
	
              Lien
                Position

            	 
	
              Balloon
                Flag

            	 
	
              PMI
                Company

            	 
	
              PMI
                Coverage Level

            	 
	
              Lender
                Paid MI (Y/N)

            	 
	
              PMI
                Fee

            	 
	
              Prepayment
                Penalty Term

            	 
	
              Prepayment
                Penalty Number of Months Interest

            	 
	
              Prepayment
                Detail

            	 
	
              High
                Cost (Section 32) Loan

            	 
	
              Delinquency
                Status

            	 
	
              FICO
                or Credit Score

            	 
	
              Credit
                Grade

            	 
	
              Days
                Delinquent

            	 
	
              Times
                30 Days Delinquent over Last 1 Year

            	 
	
              Times
                60 Days Delinquent over Last 1 Year

            	 
	
              Times
                90 Days Delinquent over Last 1 Year

            	 
	
              12
                Months Pay History

            	 
	
              Front
                Debt to Income Ratio

            	 
	
              Back
                Debt to Income Ratio

            	 
	
              MERS
                Identification Number if applicable

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
      1-A

    To
      Custodial Agreement

     

    REQUIRED
      FIELDS FOR LOAN SCHEDULE 

    WITH
      RESPECT TO WET-INK MORTGAGE LOANS

    

    

    

    
      	
              Field
                Name

            	 	
              Description

            
	
              Loan
                Id

            	 	
              Client
                Loan Identification number right justified

            
	
              Lname

            	 	
              Primary
                Borrower Name (Last, First)

            
	
              LNAmount

            	 	
              Original
                Face Amount of Note

            
	
              BankName

            	 	
              Name
                of Receiving Bank

            
	
              Faddress

            	 	
              Funding
                Address

            
	
              Fcity

            	 	
              Funding
                City

            
	
              Fstate

            	 	
              Funding
                State

            
	
              Filler1

            	 	
              1419663

            
	
              AcctName

            	 	
              Account
                Name of Beneficiary

            
	
              AcctPhone

            	 	
              Phone
                Number of Beneficiary

            
	
              AcctAddress

            	 	
              Address
                of Beneficiary

            
	
              ABANum

            	 	
              ABA
                Number

            
	
              FundAmt

            	 	
              Wire
                Amount or Check Amount

            
	
              Fundtext

            	 	
              Customer
                Account Number

            
	
              FEFFDate

            	 	
              Funding
                Effective Date

            
	
              FundRef

            	 	
              DB
                Disbursement A/C #

            
	
              FNAME2

            	 	
              2nd
                fund wire Name

            
	
              FCITY2

            	 	
              2nd
                fund wire City

            
	
              MERS
                Identification Number

            	 	
              Number
                provided by MERS

            
	
              Settlement
                Agent

            	 	
              Name
                of Settlement Agent

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
      2

    to
      Custodial Agreement

     

    [WET-INK
      MORTGAGE LOAN][DRY MORTGAGE LOAN] TRUST RECEIPT

     

    Overnight
      Courier Tracking No.______

    #
      of
      Loans:_______

    Original
      Quantity $____

    Product
      Type ______

     

    DB
      Structured Products, Inc.

    Aspen
      Funding Corp.

    Newport
      Funding Corp.

    60
      Wall
      Street

    New
      York,
      NY 10005

    Attention:
      Vincent D’Amore

     

    
      	 	
              Re:

            	
              Custodial
                Agreement, dated as of December 13, 2005 (the “Custodial
                Agreement”),
                among NYMC Loan Corporation, as Seller, New York Mortgage Trust,
                Inc.,
                LaSalle Bank National Association, as Custodian, and DB Structured
                Products, Inc. (“DBSP”), Aspen Funding Corp. (“Aspen”), Newport Funding
                Corp. (“Newport” and collectively with DBSP and Aspen, the “Buyers” and
                individually a “Buyer”).

            

    

     

    Ladies
      and Gentlemen:

     

    In
      accordance with the provisions of Section 3 of the above-referenced Custodial
      Agreement (capitalized terms not otherwise defined herein having the meanings
      ascribed to them in the Custodial Agreement, or if not defined in the Custodial
      Agreement, then in that certain Master Repurchase Agreement, dated as of
      December 13, 2005 among the Seller, the Guarantor and the Buyers (the
“Repurchase
      Agreement”)),
      the
      undersigned, as the Custodian, hereby certifies as to each Mortgage Loan
      described in the attached Loan Schedule and Exception Report all matters
      (subject to the Exceptions listed therein) set forth in Section 3 of the
      Custodial Agreement, subject to the limitation set forth in Section 3(b) of
      the
      Custodial Agreement.

     

    The
      delivery of this Trust Receipt and attached Loan Schedule and Exception Report
      evidences that, other than the Exceptions listed as part of the Exception Report
      (i) the Custodian has reviewed all documents required to be delivered in respect
      of each Mortgage Loan listed herein pursuant to [FOR DRY LOANS: [Sections
      2(a)(i) and (ii)]] [FOR WET-INK LOANS: [Sections 2(a)(iii) - (vi)]] of this
      Custodial Agreement [FOR DRY LOANS: [and the documents listed in Sections (i),
      (ii), (iii), (iv) and (v) of Annex 16 (and if actually delivered to the
      Custodian the documents listed in Sections (vi) - (xi of Annex 16)] [FOR WET-INK
      LOANS; [ and the document listed in Section (xii) of Annex 16 (and if actually
      delivered to the Custodian the documents listed in Section (i) - (xi) of Annex
      16] and such documents other than the Exceptions listed herein are in the
      possession of the Custodian as part of the Mortgage File for such Mortgage
      Loan,
      (ii) the Custodian is holding each Mortgage Loan identified on the Loan Schedule
      and Exception Report attached hereto, pursuant to the Custodial Agreement,
      as
      the bailee of and custodian for the Buyer and (iii) such documents have been
      reviewed by the Custodian and appear on their face to be regular and to relate
      to such Mortgage Loan and satisfy the requirements set forth in Section 3(a)
      of
      the Custodial Agreement and the Review Procedures.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      Custodian makes no representations as to, and shall not be responsible to
      verify, (i) the validity, legality, enforceability, due authorization,
      recordability, sufficiency, or genuineness of any of the documents contained
      in
      each Mortgage File or (ii) the collectability, insurability, effectiveness
      or
      suitability of any such Mortgage Loan.

     

    On
      each
      date the Custodian delivers to the Buyer a Trust Receipt, it shall supersede
      the
      Trust Receipt, previously delivered by the Custodian to the Buyer hereunder.
      The
      most recently delivered Trust Receipt, shall control and be binding upon the
      parties hereto.

     

    THIS
      TRUST RECEIPT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE “ACT”).
      ANY
      RESALE OR TRANSFER OF THIS TRUST RECEIPT OR ANY INTEREST HEREIN WITHOUT
      REGISTRATION HEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPT
      FROM
      THE REGISTRATION REQUIREMENTS OF THE ACT.

     

    
      	 	 	 
	 	LASALLE
              BANK
              NATIONAL ASSOCIATION,
	 	as Custodian 
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
	 	Title:

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
      3

    to
      Custodial Agreement

     

    FORM
      OF NOTICE OF SALE AND REQUEST FOR RELEASE

     

    Date:
      __________, ____

     

    The
      undersigned, NYMC Loan Corporation (the “Seller”),
      hereby provides notice of the proposed sale of the below referenced mortgage
      loans to ____________________ (the “Approved
      Purchaser”).
      Such
      Mortgage Loans have previously been delivered to LASALLE BANK NATIONAL
      ASSOCIATION acting as agent, bailee and custodian (in such capacity
“Custodian”)
      for
      the exclusive benefit of [DB STRUCTURED PRODUCTS, INC.] [ASPEN FUNDING CORP.]
      [NEWPORT FUNDING CORP.] (the “Buyer”)
      pursuant to the Custodial Agreement dated as of December 13, 2005 made by and
      among the Seller, New York Mortgage Trust, Inc. (the “Guarantor”),
      the
      Custodian and DB Structured Products, Inc. (“DBSP”), Aspen Funding Corp.
      (“Aspen”), Newport Funding Corp. (“Newport” and collectively with DBSP and
      Aspen, the “Buyers” and individually a “Buyer”). The closing date for such sale
      is [________, ____] and the anticipated purchase proceeds to be paid to the
      Buyer directly is $[___________] (if amount is zero, remaining Purchased Loans
      are sufficient to not result in a Margin Deficit).

     

    The
      Seller requests release from the Custodian of the following described
      documentation for the identified Mortgage Loans, possession of which shall
      be
      delivered to the Approved Purchaser in connection with the sale
      thereof.

    

    
      	 	
              Mortgagor
                Name

            	 	
              Loan
                Number

            	 	
              Note
                Amount

            	 	
              Loan
                Document 

              Delivered

            	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

    

    

    Please
      send the referenced documentation to:

     

    [NAME
      OF
      APPROVED PURCHASER]

    [ADDRESS]

    [TELEPHONE]

    [ATTENTION:]

     

    Please
      deliver documents to the Approved Purchaser via __________________, accompanied
      by a transmittal letter in the form of Annex 12.

     

    Capitalized
      terms not otherwise defined herein are defined in that certain Master Repurchase
      Agreement (the “Repurchase
      Agreement”),
      dated
      as of December 13, 2005, among the Sellers, the Guarantor and the
      Buyers.

     

    
      	 	 	 
	 	[_____________]
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
	 	Title:

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Acknowledged
      and Consented to as of this __ day of ________, 200 :

     

    DB
      STRUCTURED PRODUCTS, INC.

     

    
      By:___________________________________

      Name:_________________________________

      Title:__________________________________

    

     

    
      By:___________________________________

      Name:_________________________________

      Title:__________________________________

       

    

    ASPEN
      FUNDING CORP.

     

    
      By:___________________________________

      Name:_________________________________

      Title:__________________________________

       

    

    NEWPORT
      FUNDING CORP.

     

    
      By:___________________________________

      Name:_________________________________

      Title:__________________________________

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
      4

    to
      Custodial Agreement

     

    REVIEW
      PROCEDURES

     

    This
      Annex sets forth the Custodian’s review procedures for each item listed below
      delivered by the Seller pursuant to the Custodial Agreement (the “Agreement”) to
      which this Annex is attached. Capitalized terms used herein and not defined
      herein shall have the meanings ascribed to them in the Agreement.

     

    1.    The
      Mortgage Note and the Mortgage each appear to bear an original signature or
      signatures purporting to be the signature or signatures of the Person or Persons
      named as the maker and Mortgagor or grantor, or in the case of copies of the
      Mortgage permitted under Section 2(b) of the Agreement, that such copies bear
      a
      reproduction of such signature.

     

    2.    The
      amount of the Mortgage Note is the same as the amount specified on the related
      Mortgage and Mortgage Loan Schedule.

     

    3.    The
      original mortgagee is the same as the payee on the Mortgage Note.

     

    4.    The
      Mortgage contains a legal description other than address, city and
      state
      on the
      first page and has evidence of recording thereon; provided that Custodian shall
      have no responsibility for the accuracy or completeness of such legal
      description.

     

    5.    The
      notary section (acknowledgment) is present and attached to the related Mortgage
      and is signed.

     

    6.    None
      of
      the original Mortgage Note, the copy of the Mortgage delivered pursuant to
      the
      Repurchase Agreement, or the original Assignment of Mortgage contain
any
      notations on their face which appear in the good faith judgment of Custodian
      to
      evidence any claims, liens, security interests, encumbrances or restrictions
      on
      transfer
      or any
      other alterations which appear irregular on their face, or if altered, such
      alterations have the initials of the person(s) named as the
      Mortgagor.

     

    7.    The
      Mortgage Note is endorsed in blank by the original payor or the last
      endorsee.

     

    8.    Each
      original Assignment of Mortgage in blank and any intervening assignment of
      mortgage, if applicable, appears to bear the original signature of the named
      mortgagee or beneficiary including any subsequent assignors (and any other
      necessary party), as applicable, or in the case of copies permitted under
      Section 2(b) of the Agreement with respect to intervening Assignments of
      Mortgage, that such copies appear to bear a reproduction of such signature
      or
      signatures and such copies have been certified by an officer of the Seller,
      a
      title company or escrow closing company as true, complete and correct copies
      of
      any originals, and the intervening Assignments of Mortgage evidence a complete
      chain of assignment and transfer of the related Mortgage from the originating
      Person to the Seller or, in the case of a MERS Designated Mortgage Loan to
      MERS.

     

    9.    The
      date
      of each intervening assignment is on or after the date of the related Mortgage
      and/or the immediately preceding assignment, as the case may be.

     

    10.    The
      notary section (acknowledgment) is present and attached to each intervening
      assignment and is signed.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    11.    Based
      upon a review of the Mortgage Note, the Mortgage Loan number, the Mortgagor’s
      name, the address of the Mortgaged Property, the original amount of the Mortgage
      Note, the original mortgage interest rate, the date of the Mortgage Note, the
      first payment date and the maturity date and any other fields as mutually agreed
      upon as set forth in the Loan Schedule delivered by the Seller to the Custodian
      are correct.

     

    12.    The
      Mortgage File contains the original policy of title insurance (or a commitment
      for title insurance, if the policy is being held by the title insurance company
      pending recordation of the Mortgage) or attorney’s opinion of
      title.

     

    13.    In
      the
      event that any of the Loans are MERS Designated Mortgage Loans, with respect
      to
      each MERS Designated Mortgage Loan, Custodian shall verify the “MERS
      Identification Number” by comparing such MERS Identification Number to the
      information in the Mortgage/deed of trust. Custodian will rely solely on the
      information provided by the Electronic Agent which information will be provided
      to the Custodian in accordance with the Electronic Tracking Agreement.

     

    In
      the
      case of Wet-Ink Mortgage Loans, with respect to which seven (7) or fewer
      Business Days have passed from the related Purchase Date, the review procedures
      shall be as follows:

     

    1.    To
      the
      extent any items listed in Annex 16 are available, the procedures set forth
      above.

     

    2.    To
      the
      extent the items listed in Annex 16 are not available, the original Transaction
      Notice with a loan listing attached has been received and matches the facsimile
      copy previously delivered.

     

    3.    The
      Escrow Letter is present.

     

    4.    Based
      upon a review of the Escrow Letter, the loan amount, loan number (if available),
      property address and closing agent’s name each match the information listed in
      the corresponding field in the Loan Schedule.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
      5

    to
      Custodial Agreement

     

    REQUEST
      FOR RELEASE AND RECEIPT

     

    Date:
      __________, ____

     

    The
      undersigned, NYMC Loan Corporation (the “Seller”),
      acknowledges receipt from LASALLE BANK NATIONAL ASSOCIATION acting as bailee
      of,
      and custodian for, (in such capacity, the “Custodian”)
      the
      exclusive benefit of [DB
      STRUCTURED PRODUCTS, INC.] [ASPEN FUNDING CORP.] [NEWPORT FUNDING CORP.] (the
      “Buyer”)
      (capitalized terms not otherwise defined herein are defined in that certain
      Custodial Agreement, dated as of December 13, 2005 (the “Custodial
      Agreement”)
      or if
      not defined in the Custodial Agreement, then in that certain Master Repurchase
      Agreement dated as of December 13, 2005 among the Seller, New York Mortgage
      Trust, Inc., as Guarantor and DB Structured Products, Inc. (“DBSP”), Aspen
      Funding Corp. (“Aspen”), Newport Funding Corp. (“Newport” and collectively with
      DBSP and Aspen, the “Buyers” and individually a “Buyer”) (the “Repurchase
      Agreement”)),
      of
      the following described documentation for the identified Mortgage Loan,
      possession of which is entrusted to the Seller solely for the purpose referenced
      below:

     

    
      
        	 	
                Mortgagor
                  Name

              	 	
                Loan
                  Number

              	 	
                Note
                  Amount

              	 	
                Mtg.
                  Loan Document

              	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

      

      
Reason
        for Requesting File (check
        one)

    

     

    _____
      1.    Mortgage
      Loan Paid in Full.

     

    _____
      2.    Correction
      of Document Deficiencies.

     

    _____
      3.    Mortgage
      Required for Servicing.

     

    _____
      4.    Foreclosure.

     

    _____
      5.    Other
      [Describe].

     

    If
      item
      2, 3, 4 or 5 is checked, it is hereby acknowledged that a security interest
      pursuant to the Uniform Commercial Code in the Purchased Loans hereinabove
      described and in the proceeds of said Purchased Loans has been granted to the
      Buyer pursuant to the Repurchase Agreement.

     

    If
      item
      2, 3, 4 or 5 is checked, in consideration of the aforesaid delivery by the
      Custodian, the Seller hereby agrees to hold said Purchased Loans in trust for
      the Buyer as provided under and in accordance with all provisions of the
      Custodial Agreement and to return said Purchased Loans to the Custodian no
      later
      than the close of business on the tenth calendar day following the date hereof
      or, if such day is not a Business Day, on the immediately succeeding Business
      Day.

     

    This
      request also constitutes a trust receipt. Seller herby promises and declares
      to
      the Custodian and the Buyers that Seller will safeguard and hold the Purchased
      Loans shipped to Seller pursuant to this request in trust, and as agent and
      bailee, for the Buyers and the Buyers shall continue to have and Seller will
      defend, a first and prior security interest in all such Purchased Loans pursuant
      to the Repurchase Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Please
      deliver the requested file to [ADDRESS], Attention: _____________, via overnight
      courier.

     

    
      	 	 	 
	 	[_____________]
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
	 	Title:

    

     

    [In
      the
      event that more than 5 Mortgage Files are being released.]

     

    Acknowledged
      and Consented to as of this __ day of ____________, 200_:

     

    DB
      STRUCTURED PRODUCTS, INC.

     

    
      
        By:___________________________________

        Name:_________________________________

        Title:__________________________________

         

      

    

    
      
        By:___________________________________

        Name:_________________________________

        Title:__________________________________

         

      

    

    ASPEN
      FUNDING CORP.

     

    
      
        By:___________________________________

        Name:_________________________________

        Title:__________________________________

         

      

    

    NEWPORT
      FUNDING CORP.

     

    
      
        By:___________________________________

        Name:_________________________________

        Title:__________________________________

         

      

    

    Documents
      returned to Custodian:

     

    ______________________________________

     

    
      
        By:___________________________________

          Name:

          Title:

         

      

    

    Date:__________________________________

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
      6

    to
      Custodial Agreement

     

    AUTHORIZED
      REPRESENTATIVES OF BUYERS

     

     

     

    DB
      STRUCTURED PRODUCTS, INC.:

     

    
      	Name 	 	Specimen
              Signature
	 	 	 
	__________________________________ 	 	__________________________________
	 	 	 
	__________________________________ 	 	__________________________________
	 	 	 
	__________________________________ 	 	__________________________________
	 	 	 
	__________________________________	 	__________________________________ 

    

           

     

    ASPEN
      FUNDING CORP.:

    
       

      
        	Name 	 	Specimen
                Signature
	 	 	 
	__________________________________ 	 	__________________________________
	 	 	 
	__________________________________ 	 	__________________________________
	 	 	 
	__________________________________ 	 	__________________________________
	 	 	 
	__________________________________	 	__________________________________ 

      

    

     

     

    NEWPORT
      FUNDING CORP.:

     

    
      
        	Name 	 	Specimen
                Signature
	 	 	 
	__________________________________ 	 	__________________________________
	 	 	 
	__________________________________ 	 	__________________________________
	 	 	 
	__________________________________ 	 	__________________________________
	 	 	 
	__________________________________	 	__________________________________ 

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
      7

    to
      Custodial Agreement

     

    AUTHORIZED
      REPRESENTATIVES OF SELLER

     

    
       

      
        	Name 	 	Specimen
                Signature
	 	 	 
	__________________________________ 	 	__________________________________
	 	 	 
	__________________________________ 	 	__________________________________
	 	 	 
	__________________________________ 	 	__________________________________
	 	 	 
	__________________________________	 	__________________________________ 

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
      8

    to
      Custodial Agreement

     

     

    AUTHORIZED
      REPRESENTATIVES OF GUARANTOR

     

    
       

      
        	Name 	 	Specimen
                Signature
	 	 	 
	__________________________________ 	 	__________________________________
	 	 	 
	__________________________________ 	 	__________________________________
	 	 	 
	__________________________________ 	 	__________________________________
	 	 	 
	__________________________________	 	__________________________________ 

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
      9

    to
      Custodial Agreement

     

     

    AUTHORIZED
      REPRESENTATIVES OF CUSTODIAN

     

    
       

      
        	Name 	 	Specimen
                Signature
	 	 	 
	__________________________________ 	 	__________________________________
	 	 	 
	__________________________________ 	 	__________________________________
	 	 	 
	__________________________________ 	 	__________________________________
	 	 	 
	__________________________________	 	__________________________________ 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Annex
        10

    

    to
      Custodial Agreement

     

    FORM
      OF LOST NOTE AFFIDAVIT

     

    I,
      as
      ___________________________ (title) (hereinafter called “Deponent”)
      of
      LASALLE BANK NATIONAL ASSOCIATION (the “Custodian”),
      am
      authorized to make this Lost Note Affidavit (this “Affidavit”) on behalf of the
      Custodian. In connection with the administration of the Mortgage Loans held
      by
      the Custodian on behalf of [DB STRUCTURED PRODUCTS, INC.] [ASPEN FUNDING CORP.]
      [NEWPORT FUNDING CORP.] (the “Buyer”),
      Deponent being duly sworn, deposes and says that:

     

    1.    Custodian’s
      address is:

     

    ______________________

    ______________________

     

    2.    Custodian
      previously delivered to the Buyer a Loan Schedule and Exception Report and
      an
      Exception Report with respect to that certain Mortgage Note made by ________,
      in
      favor of ________ in an original principal balance of $_______, secured by
      a
      Mortgage on a property located at ___________, which did not indicate such
      Mortgage Note is missing;

     

    3.    Such
      Mortgage Note was assigned or sold to the Buyer by [_____________] pursuant
      to
      the terms and provisions of a Master Repurchase Agreement dated and effective
      as
      of December 13, 2005;

     

    4.    Such
      Mortgage Note is not outstanding pursuant to a Request for Release of
      Documents;

     

    5.    Aforesaid
      Mortgage Note (hereinafter called the “Original”)
      has
      been lost;

     

    6.    Deponent
      has made or has caused to be made diligent search for the Original and has
      been
      unable to find or recover same;

     

    7.    The
      Custodian was the Custodian of the Original at the time of loss;

     

    8.    Deponent
      agrees that, if said Original should ever come into Custodian’s possession,
      custody or power, Custodian will immediately and without consideration surrender
      the Original to the Buyer;

     

    9.    Attached
      hereto is a true and correct copy of (i) the Mortgage Note, endorsed in blank
      by
      the Mortgagee, as provided by [_____________], or its designee and (ii) the
      Mortgage which secures the Mortgage Note, which Mortgage Note is recorded at
      __________________;

     

    10.    Deponent
      hereby agrees that the Custodian (a) shall indemnify and hold harmless the
      Buyer, its successors, and assigns, against any loss, liability or damage,
      including reasonable attorney’s fees, resulting from the unavailability of any
      Originals, including but not limited to any loss, liability or damage arising
      from (i) any false statement contained in this Affidavit, (ii) any claim of
      any
      party that it has already purchased a mortgage loan evidenced by the Originals
      or any interest in such mortgage loan, (iii) any claim of any Buyer with respect
      to the existence of terms of a Mortgage Loan evidenced by the Originals, (iv)
      the issuance of new instrument in lieu thereof and (v) any claim whether or
      not
      based upon or arising from honoring or refusing to honor the Original when
      presented by anyone (items (i) through (iv) above are hereinafter referred
      to as
      the “Losses”),
      and
      (b)
      if required by any rating agency in connection with placing such Originals
      into
      a structured and rated transaction, shall obtain a surety bond from an insurer
      acceptable to the applicable rating agency in an amount acceptable to such
      rating agency to cover any Losses with respect to such Originals

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    11.    This
      Affidavit is intended to be relied on by the Buyer, its successors, and assigns
      and the Custodian represents and warrants that it has the authority to perform
      its obligations under this Affidavit.

     

     

    EXECUTED
      THIS ____ day of _______, ____, on behalf of the Custodian by:

     

    ___________________________________

    Signature

     

    ___________________________________

    Typed
      Name

     

    On
      this
      _________ day of _______________________, ____, before me appeared
      ____________________________________________, to me personally known, who being
      duly sworn did say that she/he is the ______________________________ of
      ______________________, and that said Lost Note Affidavit was signed and sealed
      on behalf of such corporation and said _____________________________
      acknowledged this instrument to be the free act and deed of said
      corporation.

     

     

    _____________________________________

    Notary
      Public in and for the

    State
      of
      ____________________________.

     

    My
      Commission expires: _______________.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
      11

    to
      Custodial Agreement

     

    NOTICE
      OF ASSIGNMENT

     

    To: [_____________]

     

    From: ___________________________________

    Date: ___________________________________

     

    You
      are
      hereby notified that as of [date] the undersigned has assigned all of its right,
      title and interest in and to the Mortgage Loans identified in the schedule
      attached hereto to [Assignee’s name and address]. You are hereby instructed to
      hold such Mortgage Loans pursuant to the terms of the Custodial Agreement,
      dated
      as of December 13, 2005 (the “Custodial
      Agreement”),
      among
      NYMC Loan Corporation (the “Seller”),
      New
      York Mortgage Trust, Inc. (the “Guarantor”),
      LaSalle Bank National Association (the “Custodian”)
      and DB
      Structured Products, Inc. (“DBSP”), Aspen Funding Corp. (“Aspen”), Newport
      Funding Corp. (“Newport” and collectively with DBSP and Aspen, the “Buyers” and
      individually a “Buyer”), for the sole and exclusive benefit of [name of
      Assignee] subject to the terms of the Custodial Agreement by which [name of
      Assignee] hereby agrees to be bound.

     

    When
      you
      have received written instructions from the Buyer with the Assignee’s consent
      thereon that the Mortgage Loans are no longer assigned by the Buyer to the
      Assignee, you shall change your records to reflect the release of the pledge
      of
      the Mortgage Loans and that you are holding the Mortgage Loans as custodian
      for,
      and for the benefit of, the Buyer.

     

    DB
      STRUCTURED PRODUCTS, INC., Buyer

     

     
      
      By:___________________________________

      Name:_________________________________

      Title:__________________________________

       

    

    
      By:___________________________________

      Name:_________________________________

      Title:__________________________________

       

    

    Date:

     

    ASPEN
      FUNDING CORP., Buyer

     

    
      By:___________________________________

      Name:_________________________________

      Title:__________________________________

       

    

    Date:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    NEWPORT
      FUNDING CORP., Buyer

     

    
      By:___________________________________

      Name:_________________________________

      Title:__________________________________

       

    

    Date:

     

    [NAME
      OF ASSIGNEE]

     

    
      By:___________________________________

      Name:_________________________________

      Title:__________________________________

       

    

    Date:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
      12

    to
      Custodial Agreement

     

    (THIRD
      PARTY) TRANSMITTAL LETTER

     

    [Custodian
      Letterhead]

     

    [Approved
      Purchaser]

    __________________________

    __________________________

     

    Re: ______________________________

     

    Ladies
      and Gentlemen:

     

    Attached
      please find those Mortgage Loans listed separately on the attached schedule,
      which Mortgage Loans are owned by _______________ and are being delivered to
      you
      for purchase.

     

    Capitalized
      terms used herein and not otherwise defined shall have the meanings set forth
      in
      that certain Custodial Agreement dated as of December 13, 2005, by and among
      NYMC Loan Corporation (the “Seller”),
      New
      York Mortgage Trust, Inc. (the “Guarantor”),
      LaSalle Bank National Association (the “Custodian”)
      and DB
      Structured Products, Inc. (“DBSP”), Aspen Funding Corp. (“Aspen”), Newport
      Funding Corp. (“Newport” and collectively with DBSP and Aspen, the “Buyers” and
      individually a “Buyer”), and if not defined in the Custodial Agreement, then in
      that certain Master Repurchase Agreement (the “Repurchase
      Agreement”),
      dated
      as of December 13, 2005, among the Sellers, the Guarantor and the
      Buyers.

     

    The
      Mortgage Loans comprise a portion of the “Purchased Loans.” Each of the Mortgage
      Loans is subject to an ownership and/or security interest in favor of the Buyer,
      which security interest shall be automatically released upon remittance of
      the
      purchase price for such Mortgage Loan (the “Payoff
      Amount”)
      by
      wire transfer to the following account:

     

    WIRE
      INSTRUCTIONS:

     

    [Bank
      Name:

    City,
      State:

     

    ABA
      #:

    Account
      #:

     

    Account
      Name:

    Attention:  ]

     

    Pending
      the purchase of each Mortgage Loan and until the Payoff Amount is received,
      the
      aforesaid ownership and/or security interest therein will remain in full force
      and effect, and you shall hold possession of such Purchased Loans and the
      documentation evidencing same as custodian, agent and bailee for and on behalf
      of the Buyer. In the event that any Mortgage Loan is unacceptable for purchase,
      return the rejected item directly to the Custodian at its address set forth
      below. In no event shall any Mortgage Loan be returned to, or sales proceeds
      remitted to, the Seller. The Mortgage Loan must be so returned or Payoff Amount
      remitted in full no later than ten (10) days from the date hereof. If you are
      unable to comply with the above instructions, please so advise the undersigned
      Custodian immediately.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    NOTE:
      BY
      ACCEPTING THE MORTGAGE LOANS DELIVERED TO YOU WITH THIS LETTER, YOU CONSENT
      TO
      BE THE CUSTODIAN, AGENT AND BAILEE FOR THE BUYER ON THE TERMS DESCRIBED IN
      THIS
      LETTER. THE CUSTODIAN REQUESTS THAT YOU ACKNOWLEDGE RECEIPT OF THE ENCLOSED
      MORTGAGE LOANS AND THIS LETTER BY SIGNING AND RETURNING THE ENCLOSED COPY OF
      THIS LETTER TO THE CUSTODIAN; HOWEVER, YOUR FAILURE TO DO SO DOES NOT NULLIFY
      SUCH CONSENT.

     

     

    Very
      truly yours,

     

    ______________________

    as
      Custodian

     

    
      By:___________________________________

      Name:_________________________________

      Title:__________________________________

       

    

    Address: ___________________

     
      ___________________

     

    DB
      STRUCTURED PRODUCTS, INC.

     

    
      By:___________________________________

      Name:_________________________________

      Title:__________________________________

       

    

    
      By:___________________________________

      Name:_________________________________

      Title:__________________________________

       

    

    ASPEN
      FUNDING CORP.

     

    
      By:___________________________________

      Name:_________________________________

      Title:__________________________________

       

    

    NEWPORT
      FUNDING CORP.

     

    
      By:___________________________________

      Name:_________________________________

      Title:__________________________________

       

    

     

    RECEIPT
      ACKNOWLEDGED:

     

    [APPROVED
      PURCHASER]

     

    By________________________

    Name:

    Title:

    Date:
      ________________

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
      13

    to
      Custodial Agreement

    ATTORNEY’S
      BAILEE LETTER

    [Letterhead
      of Seller]

     

    ________
      __, ____

     

    Name
      of
      Attorney

    [Address]

     

    
      	Custodian: 	
              LaSalle
                Bank National Association

              2571
                Busse Rd, Suite 200

              Elk
                Grove Village, IL 60007

              Attention:
                Mark Jerva

              Facsmile
                No.: (847) 766-3456

              Telephone
                No.: (847) 766-6421

               

            	 	 
	Buyer:	
              DB
                Structured Products, Inc.

              Aspen
                Funding Corp.

              Newport
                Funding Corp.

              60
                Wall Street

              New
                York, NY 10005

              Attention:
                Vincent D’Amore

              Facsmile
                No.: (212) 797-5160 

              Telephone
                No.: (212) 250-7328

            	Seller:	
              NYMC
                Loan Corporation

              1301
                Avenue of the Americas

              7th
                Floor

              New
                York, NY 10019 

              Attn:
                Chief Executive Officer

              Facsimile:
                (212)655-6269

              Telephone:
                (212) 634-9400

            

    

     

    Dear
      Sir
      or Madam:

     

    From
      time
      to time, we, NYMC Loan Corporation (the “Seller”),
      will
      send to you (or have sent to you) mortgage loans for which you have agreed
      to
      commence and prosecute a foreclosure action. In connection with such foreclosure
      activities, [copies of]1 
      one or
      more of the documents evidencing or otherwise relating to such mortgage loans
      (“Documents”)
      will
      be delivered to you.

     

    [DB
      Structured Products, Inc.] [Aspen Funding Corp.] [Newport Funding Corp.] (the
      “Buyer”),
      has
      financed the sale to us or origination of such mortgage loans, and with such
      sale or origination we granted an ownership and/or security interest in the
      Documents referred to below and the mortgage loans to which such Documents
      relate to the Buyer. LaSalle Bank National Association (the “Custodian”)
      is
      acting as custodian for the Buyer in connection with the Documents.

     

    Whenever
      we send you Documents to be covered by this letter agreement, we will send
      such
      Documents to you under a transmittal letter identifying the specific documents
      delivered, and the mortgage loan(s) to which they relate, with a space at the
      end of the letter for you to sign and to acknowledge your receipt of such
      Documents. Upon your receipt of any such Documents, you hereby agree to fax
      to
      the Buyer and the Custodian, no later than three (3) Business Days after your
      receipt thereof, our transmittal letter, signed in the acknowledgment space
      by
      you, pursuant to which you (i) acknowledge receipt of the Documents listed
      in
      the transmittal letter, and (ii) acknowledge that with respect to such listed
      documents you are acting as bailee of the Buyer in accordance with the terms
      of
      this Attorney’s Bailee Letter.

     

    
      
        

      

    

    1    For
      Acceptable Attorneys to whom copies of the Documents are sent.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    By
      signing this letter agreement below where indicated, (a) you agree that on
      and
      after the date hereof until you are otherwise notified by the Buyer or the
      Custodian, any Documents delivered to you as described above will be held by
      you
      as bailee for the Buyer, (b) you certify that, as of the date of your
      receipt of any Documents, you have not received notice of any interest of any
      other person or entity in such Documents or the related mortgage loans, (c)
      you
      agree that you will commence and diligently prosecute foreclosure proceedings
      with respect to the mortgage loan to which any such Documents relate and (d)
      you
      certify that if either you or your law firm has any security interest in the
      Documents or the mortgage loan to which those Documents relate you agree to
      waive any interest you or your firm may acquire therein at any time, whether
      arising pursuant to law or otherwise or to refuse delivery of such Documents
      and
      return them immediately to the Custodian.

     

    The
      Seller and the Buyer hereby irrevocably instruct you that any Documents in
      your
      possession are to be held by you as bailee for the Buyer, as provided herein
      until they are returned to the Custodian at the address noted above together
      with a copy of this letter agreement; provided
      that if
      the Buyer or the Custodian notifies you that the Buyer’s interest in any of
      above-referenced mortgage loans has been released or did not attach (the
“Release
      Notice”),
      from
      the date of such Release Notice you will hold the Documents relating to such
      mortgage loan (and no others) as bailee for the Seller, in which case you will
      follow the Seller’s instructions regarding such Documents, and such Documents
      shall be released to the Seller at the address noted above, or its designee,
      upon conclusion of the foreclosure action, instead of returning them to the
      Custodian; and provided further
      that
      prior to the date of any Release Notice, notwithstanding anything herein or
      elsewhere to the contrary, if you receive instructions from the Buyer or the
      Custodian which do not comport with instructions you may have received from
      the
      Seller, including, without limitation, instructions to deliver the Documents
      to
      the Custodian, the Buyer or any other person or entity, you shall abide by
      the
      instructions of the Custodian or Buyer.

     

    You
      agree
      to immediately give telephonic notice (followed by written notice) to the
      Custodian if you receive notice or any inquiry from any other person or entity
      of or with respect to any interest in the Documents or the related mortgage
      loan
      and you agree that you shall immediately notify each such person in writing,
      with a copy to the Custodian, of the prior interest of the Buyer
      therein.

     

    This
      letter agreement supersedes any letter agreement or other agreement or
      arrangement that may exist between you and the Seller. Notwithstanding any
      contrary understanding with you, the Seller or any other person or entity,
      or
      any instructions to you from the Seller, the Seller or any other person or
      entity, you shall abide by the terms of this letter. No deviation in performance
      of the terms of any previous letter agreement between you and any of the
      undersigned shall alter any of your duties or responsibilities as set forth
      herein.

     

    Because
      time is of the essence, please promptly sign and date the enclosed copy of
      this
      letter agreement and return it via overnight delivery service to the Custodian
      at the above address and via telecopier, send a copy of this executed letter
      agreement to the Seller. It is important that the Custodian receive a copy
      of
      this letter agreement executed by you. Thank you for your cooperation in
      assisting us with this project.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    NOTE:
      BY ACCEPTING THE MORTGAGE LOANS DELIVERED TO YOU WITH THIS LETTER, YOU CONSENT
      TO BE THE CUSTODIAN, AGENT AND BAILEE FOR THE BUYER ON THE TERMS DESCRIBED
      IN
      THIS LETTER. THE CUSTODIAN REQUESTS THAT YOU ACKNOWLEDGE RECEIPT OF THE ENCLOSED
      MORTGAGE LOANS AND THIS LETTER BY SIGNING AND RETURNING THE ENCLOSED COPY OF
      THIS LETTER TO THE CUSTODIAN; HOWEVER, YOUR FAILURE TO DO SO DOES NOT NULLIFY
      SUCH CONSENT.

     

    Very
      truly yours,

     

    NYMC
      LOAN
      CORPORATION, Seller

     

    By:___________________________________
      Name:_________________________________

      Title:__________________________________

    

     

    DB
      STRUCTURED PRODUCTS, INC., Buyer

     

    By:___________________________________
      Name:_________________________________

      Title:__________________________________

       

    

    By:___________________________________
      Name:_________________________________

      Title:__________________________________

       

    

    ASPEN
      FUNDING CORP., Buyer

     

    By:___________________________________
      Name:_________________________________

      Title:__________________________________

       

    

    NEWPORT
      FUNDING CORP., Buyer

     

    By:___________________________________
      Name:_________________________________

      Title:__________________________________

       

    

    ACKNOWLEDGED
      AND AGREED:

     

    By:___________________________________

     

    Print
      Name:_____________________________

     

    Date:__________________________________

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Rider
      A

    [Letterhead
      of _____________________]

     

    ________________
      ___, _____

     

     

    Name
      of
      Attorney

    [Address]

     

    
      	Re:	
              Mortgagor:

            

    

    
      	 	
              Address of
                Property:

            

    

    
      	 	
              Loan
                Number:

            

    

     

    Dear
      ___________________:

     

    We
      refer
      to that certain letter (the “Attorney’s
      Bailee Letter”),
      dated
      ________________, ____, from us to you and signed by us and by DB Structured
      Products, Inc. (“DBSP”), Aspen Funding Corp. (“Aspen”), Newport Funding Corp.
      (“Newport” and collectively with DBSP and Aspen, the “Buyers” and individually a
“Buyer”), describing the terms under which you agreed to hold certain mortgage
      loan documents to be sent to you from time to time under the Attorney’s Bailee
      Letter.

     

    The
      following documents evidencing or otherwise relating to the above-referenced
      mortgage loans (collectively, the “Documents”)
      are
      being sent to you under cover of this letter for the purpose of commencement
      and
      prosecution of a foreclosure action:

     

    [LIST
      ONLY THOSE DOCUMENTS THAT ARE BEING SENT]

     

     

    
      	 	
              (i)

            	
              The
                [original] [copy of the] Mortgage
                Note.

            

    

     

    
      	 	
              (ii)

            	
              The
                [original] [copy] of the guarantee executed in connection with the
                Mortgage Note.

            

    

     

    
      	 	
              (iii)

            	
              The
                [original] [copy of the] Mortgage with evidence of recording thereon,
                or a
                certified copy thereof.

            

    

     

    
      	 	
              (iv)

            	
              The
                [originals] [copies] of all assumption, modification, consolidation
                or
                extension agreements (if any) with evidence of recording thereon,
                or
                certified copies thereof.

            

    

     

    
      	 	
              (v)

            	
              An
                [original] [copy of the] Assignment of Mortgage to “LaSalle Bank National
                Association, as Custodian”.

            

    

     

    
      	 	
              (vi)

            	
              The
                [originals] [copies] of [identify any particular] intervening assignments
                of mortgage with evidence of recording thereon, or certified copies
                thereof.

            

    

     

    
      	 	
              (vii)

            	
              The
                [original] [copy of the] [attorney’s opinion of title and abstract of
                title] or [the original mortgagee title insurance policy], [or if
                the
                original mortgagee title insurance policy has not been issued, the
                irrevocable commitment to issue the mortgagee title insurance policy
                [as
                marked by the title company or its authorized agent]], [or the preliminary
                title report for appropriate
                jurisdictions].

            

    

     

    
      	 	
              (viii)

            	
              The
                [original] [copy] of any security agreement, chattel mortgage or
                equivalent document executed in connection with the Mortgage
                Loan.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              (ix)

            	
              The
                [original] [copy of the] power of attorney or other authorizing instrument
                [with evidence of recording
                thereon].

            

    

     

    
      	 	
              (x)

            	
              [Identify
                any other documents which may be
                sent].

            

    

     

    Please
      sign this letter in the space provided below to indicate your acknowledgment
      of
      receipt of the documents listed above with respect to the mortgage loan(s)
      identified above, and to confirm that you will hold such documents as bailee
      for
      the Buyer under and in accordance with the terms of the Attorney’s Bailee
      Letter. As required by the Attorney’s Bailee Letter, please fax to the Buyer and
      the Custodian (with a copy to us), a copy of this letter signed by you, not
      later than three (3) business days after your receipt of this letter. We
      appreciate your cooperation.

     

     

    Sincerely
      yours,

     

    _________________________________

    By:

    Name:

    Title:

     

    ACKNOWLEDGMENT:

     

    I
      acknowledge receipt of the Documents as listed above in this letter and of
      notice of the ownership and/or security interests in such documents described
      in
      the Attorney’s Bailee Letter referred to above. I confirm the certifications
      made by me in the Attorney’s Bailee Letter with respect to such documents and
      agree to act as bailee for the Buyer with respect to such documents on the
      terms
      set forth in the Attorney’s Bailee Letter and to comply in all other respects
      with the terms of the Attorney’s Bailee Letter.

     

     

    Print
      Name:

     

    Date:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
      14

    to
      Custodial Agreement

    

    Exception
      Codes

    

    
      	 	 	 	 	 	 	 	 
	
              0021

            	
              TYPED
                NAME AND/OR TITLE IS MISSING OR INCORRECT

            
	
              0201

            	
              DATE
                IS MISSING OR INCORRECT

            
	
              0202

            	
              FIRST
                ADJUST DATE IS MISSING OR INCORRECT

            
	
              0203

            	
              AMOUNT
                IS INCORRECT

            
	
              0204

            	
              MORTGAGE
                MARGIN IS MISSING OR INCORRECT

            
	
              0205

            	
              ARM
                INDEX IS MISSING OR INCORRECT

            
	
              0206

            	
              ARM
                ANNUAL CAP IS MISSING OR INCORRECT

            
	
              0207

            	
              ARM
                LIFE CAP IS MISSING OR INCORRECT

            
	
              0208

            	
              ARM
                FLOOR IS MISSING OR INCORRECT

            
	
              0209

            	
              I/O
                PERIOD FROM I/O ADDENDUM IS MISSING OR INCORRECT

            
	
              0210

            	
              I/O
                PYMT FROM I/O ADDENDUM IS MISSING OR INCORRECT

            
	
              0211

            	
              PENALTY
                PD FROM PREPYMT ADDENDUM IS MISSING OR INCORRECT

            
	
              0212

            	
              LATE
                CHARGE (DAY&%) AS "DAYS/%" IS MISSING OR INCORRECT

            
	
              0213

            	
              ARMADJ
                DATE IS MISSING OR INCORRECT

            
	
              0214

            	
              INITIAL
                CAP IS MISSING OR INCORRECT

            
	
              0215

            	
              ARMLOOKBACK
                IS MISSING OR INCORRECT

            
	
              0216

            	
              ARM
                ROUND PERCENTAGE IS MISSING OR INCORRECT

            
	
              0217

            	
              PREPAYMENT
                NOTE ADDENDUM IS MISSING

            
	
              0218

            	
              INTEREST
                ONLY ADDENDUM IS MISSING

            
	
              0219

            	
              COMPLETE
                DATA NOT RECEIVED

            
	
              0409

            	
              PROPERTY
                ADDRESS IS MISSING OR INCORRECT

            
	
              0410

            	
              ZIP
                CODE IS INCORRECT

            
	
              0411

            	
              MISC.
                INFORMATION

            
	
              0700

            	
              SIGNATURE
                IS MISSING OR INCORRECT

            
	
              0702

            	
              DOCUMENT
                IS MISSING

            
	
              0703

            	
              BAILEE
                LETTER IS MISSING

            
	
              0804

            	
              LENDER
                NAME IS MISSING OR INCORRECT

            
	
              1000

            	
              STOCK
                POWER NOT EXECUTED IN BLANK

            
	
              1604

            	
              ASSIGNEE
                IS MISSING OR DOES NOT AGREE WITH NOTE ENDORSEMENT

            
	
              1605

            	
              ASSIGNOR
                IS MISSING OR DOES NOT AGREE WITH NOTE ENDORSEMENT

            
	
              1608

            	
              REC.
                INFORMATION OR LEGAL DESC. IS MISSING OR DOES NOT AGREE

            
	
              1613

            	
              ORIGINAL
                MORTGAGE AMOUNT IS MISSING OR INCORRECT

            
	
              1614

            	
              MIN
                NUMBER IS MISSING ON MORTGAGE OR DEED OF TRUST

            
	
              1615

            	
              MERS
                REGISTRATION NOT VERIFIED

            
	
              1616

            	
              COPY
                OF RECORDED DOCUMENT IN FILE

            
	
              1617

            	
              MIN
                NUMBER IS INCORRECT

            
	
              1619

            	
              ORIGINAL
                IN FILE BUT NOT RECORDED

            
	
              2309

            	
              NOTARY
                INFORMATION IS MISSING OR INCORRECT

            
	
              2517

            	
              CORPORATE
                SEAL IS MISSING

            
	
              2706

            	
              LOAN
                AMOUNT- ALPHA AND NUMERIC ARE MISSING OR DO NOT AGREE

            
	
              2709

            	
              INTEREST
                RATE- ALPHA AND NUMERIC ARE MISSING OR DO NOT AGREE

            
	
              3114

            	
              CASE
                NUMBER IS INCORRECT

            
	
              3115

            	
              RIDER(S)
                REFERENCED HEREIN NOT ATTACHED

            

    

    
      	
              3303

            	
              INTEREST
                RATE IS MISSING OR INCORRECT

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              3307

            	
              MONTHLY
                P&I IS MISSING OR INCORRECT

            
	
              3310

            	
              CANCELLED
                ENDORSEMENT NOT INITIALED

            
	
              3311

            	
              ENDORSEMENT(S)
                IS NOT SIGNED

            
	
              3312

            	
              ENDORSEMENT(S)
                IS MISSING OR INCORRECT

            
	
              3313

            	
              ENDORSEMENT(S)
                IS INCOMPLETE

            
	
              3314

            	
              ENDORSEMENT
                TO TRUSTEE IS MISSING

            
	
              3316

            	
              ENDORSEMENT
                LENDER NAME IS MISSING OR INCORRECT

            
	
              3317

            	
              TYPING
                CORRECTIONS NOT INITIALED BY BORROWERS

            
	
              3319

            	
              EXTRA
                ENDORSEMENT SHOULD BE CANCELLED

            
	
              3406

            	
              DATE
                OF FIRST PAYMENT IS INCORRECT

            
	
              3407

            	
              MATURITY
                DATE IS INCORRECT

            
	
              3510

            	
              COPY
                ONLY IN FILE

            
	
              3511

            	
              IMAGE
                ONLY

            
	
              4182

            	
              LEGAL
                DESCRIPTION IS MISSING

            
	
              4301

            	
              ASSIGNMENT
                IS NOT IN RECORDABLE FORM

            
	
              4901

            	
              TITLE
                COMMITMENT OR PRELIMINARY REPORT IN FILE

            
	
              4906

            	
              SCHEDULE
                A MTG. DESCRIPTION HAS INCORRECT MORTGAGE AMOUNT

            
	
              4907

            	
              SCHEDULE
                A MTG DESCRIPTION HAS INCORRECT DATE OF MORTGAGE

            
	
              4911

            	
              SCHEDULE
                A MTG DESCRIPTION HAS INCORRECT RECORDING DATE

            
	
              4920

            	
              INSURED
                AMOUNT DOES NOT MATCH ORIGINAL AMOUNT ON MORTGAGE

            
	
              4921

            	
              AGENT
                SIGNATURE MISSING ON TPOL

            
	
              5307

            	
              CERTIFIED
                COPY OF DOCUMENT IN FILE

            
	
              5339

            	
              OPEN
                ENDORSEMENT IS MISSING

            
	
              5344

            	
              ENDORSEMENT(S)
                IS A COPY

            
	
              5345

            	
              ENDORSEMENT(S)
                IS ILLEGIBLE

            
	
              5348

            	
              DOCUMENT
                INCOMPLETE OR PAGES MISSING

            
	
              5352

            	
              2
                ORIGINAL NOTES IN FILE

            
	
              5359

            	
              INVALID
                ENDORSEMENT CHAIN

            
	
              5367

            	
              BORROWER'S
                SIGNATURE ILLEGIBLE

            
	
              5368

            	
              FHA/VA
                PROOF OF INSURANCE SCREEN PRINT IN FILE

            
	
              5369

            	
              LNA
                NOT IN PROPER FORM

            
	
              6000

            	
              DOCUMENT
                FIELD IS MISSING OR INCORRECT

            
	
              FINL

            	
              FINAL
                PACKAGE RECEIVED, REVIEWED AND REJECTED

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
      15

    to
      Custodial Agreement

     

    LIST
      OF UNAPPROVED SETTLEMENT AGENTS

     

    None.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
      16

    to
      Custodial Agreement

     

    MORTGAGE
      FILE SUBMISSION PACKAGE

     

    With
      respect to each Mortgage Loan being offered by the Seller for sale to Buyers,
      pursuant to the Repurchase Agreement, such Seller shall deliver and release
      to
      Custodian the following documents:

     

    (i)  Either
      (A) the original Mortgage Note bearing all intervening endorsements from the
      originator to the Seller endorsed, “Pay to the order of ____________, without
      recourse” and signed in the name of the last endorsee (the “Last
      Endorsee”)
      by an
      authorized Person (in
      the
      event that the Loan was acquired by the Last Endorsee in a merger, the signature
      must be in the following form: “[Last Endorsee], successor by merger to [name of
      predecessor]”; in the event that the Loan was acquired or originated by the Last
      Endorsee while doing business under another name, the signature must be in
      the
      following form: “[Last Endorsee], formerly known as [previous name]”) or (B)
      with respect to any lost Mortgage Note, a lost note affidavit (with
      indemnification) stating that the original Mortgage Note was lost or destroyed,
      together with a copy of such Mortgage Note;
      (if
      applicable), the original assumption agreement, together with the original
      of
      any surety agreement or guaranty agreement relating to the Mortgage Note or
      any
      such assumption agreement, and if the Mortgage Note has been signed by a third
      party on behalf of the Mortgagor, the original power of attorney or other
      instrument that authorized and empowered such Entity to sign or a copy of such
      power of attorney together with an officer's certificate from the Seller (or
      a
      certificate from the county recorder's office or the Settlement Agent)
      certifying that such copy presents a true and correct reproduction of the
      original and that such original has been duly recorded or delivered for
      recordation in the appropriate records of the jurisdiction in which the related
      Mortgaged Property is located;

     

    (ii)  A
      Mortgage meeting one of the following requirements:

     

    (A)    The
      original Mortgage bearing evidence that the Mortgage has been duly recorded
      in
      the records of the jurisdiction in which the Mortgaged Property is located;
      or

     

    (B)    If
      the
      original Mortgage has been submitted for recordation, a copy of the Mortgage
      together with either (i) an officer's certificate of the Seller, Settlement
      Agent, title company or escrow closing company (which may be a blanket officer's
      certificate of the Seller covering all such Mortgage Loans), or (ii) a
      certificate from the county recorder's office, certifying that such copy
      represents a true and correct reproduction of the original, or (iii) a stamped
      certificate from the related title company or Settlement Agent certifying that
      such copy represents a true and correct reproduction of the original, in such
      case that such original has been duly recorded or delivered for recordation
      in
      the appropriate records of the jurisdiction in which the Mortgaged Property
      is
      located,
      and,
      with respect to MERS Designated Mortgage Loans, if any, the Mortgage names
      MERS
      as the “mortgagee” or “beneficiary” thereof and the Custodian has confirmed that
      each MERS Designated Mortgage Loan has been issued a MERS Identification Number.
      A conformed recorded copy will follow as soon as the same is received by the
      Seller;

     

     

    (iii)  All
      original intervening Assignments or Mortgage duly executed and acknowledged
      and
      in recordable form, evidencing the unbroken chain of mortgage assignments from
      the originator of the Mortgage Loan to the Last Endorsee, or in the case of
      a
      MERS Designated Mortgage Loan to MERS, and/or if any such intervening Assignment
      of Mortgage has been submitted for recordation, a copy of each such intervening
      Assignment of Mortgage, together with either (i) an officer’s certificate of the
      Seller, Settlement Agent, title company or escrow closing company (which may
      be
      a blanket officer’s certificate of the Seller covering all such Mortgage Loans),
      (ii) a certificate from the recorder’s office, certifying that such copy
      represents a true and correct reproduction of the original, or (iii) a stamped
      certificate from the related title company, Settlement Agent or escrow closing
      company certifying that such copy represents a true and correct reproduction
      of
      the original, in such case that such original has been duly recorded or
      delivered for recordation in the appropriate records of the jurisdiction in
      which the Mortgaged Property is located;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      (iv)  Except
        with respect to a MERS Designated Mortgage Loan, an original Assignment of
        Mortgage to “_________________”, in form and substance acceptable for recording
        and signed in the name of the Last Endorsee (in the event that the Loan was
        acquired by the Last Endorsee in a merger, the signature must be in the
        following form: “[Last Endorsee], successor by merger to [name of predecessor]
“; in the event that the Loan was acquired or originated while doing business
        under another name, the signature must be in the following form: “[Last
        Endorsee], formerly known as [previous name]”), in recordable form; provided,
        however that no such Assignment of Mortgage shall be required to be delivered
        or
        recorded if the related Mortgage names the Custodian, as mortgagee (or as
        beneficiary if the related Mortgage is a deed of Trust or similar instrument)
        and such Mortgage specifies that the Custodian assumes no duties,
        responsibilities or liabilities as an originator or Buyer in respect of such
        Mortgage;

    

     

    (v)  the
      original or certified copy of the policy of title insurance (or a commitment
      for
      title insurance, if the policy is being held by the title insurance company
      pending recordation of the Mortgage) or attorney’s opinion of
      title;

     

    (vi)  the
      blanket assignment of all other collateral securing the Loan, including all
      rights under applicable guarantees and insurance policies, if any;

     

    (vii)  the
      original of the guarantee executed in connection with the Mortgage Note, if
      any;

     

    (viii)  the
      original of any security agreement, chattel mortgage or equivalent document
      executed in connection with the Mortgage Loan, if any;

     

    (ix)  the
      certificate of the secured creditor impaired property insurance policy or the
      commercial real estate pollution liability insurance policy, if any, issued
      with
      respect to such Mortgage Loan;

     

    (x)  the
      original power of attorney, if any; 

     

    (xi)  an
      original executed copy of the Uniform Commercial Code (UCC) financing statement
      (UCC-1), if any, and, an original, if any, UCC financing statement changes
      (UCC-3), bearing the file stamp of the relevant filing office(s) and a certified
      copy of the assignment of the UCC financing statement (UCC-3) from the Last
      Endorsee in blank; and

     

    (xii)  the
      Escrow Letter.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
      17

    to
      Custodial Agreement

     

     

    FORM
      OF ESCROW LETTER

    [Date]

     

    [Name
      of
      Settlement Agent]

    [Street
      Address]

    [City,
      State and Zip Code]

    [Attn:
      ____________]

     

     

    Re:    Master
      Repurchase Agreement, dated as of December 13, 2005 (the “Repurchase
      Agreement”), by and among NYMC Loan Corporation as Seller, New York Mortgage
      Trust, Inc., as Guarantor and DB Structured Products, Inc. (“DBSP”), Aspen
      Funding Corp. (“Aspen”), Newport Funding Corp. (“Newport” and collectively with
      DBSP and Aspen, the “Buyers” and individually a “Buyer”).

     

    The
      following loan is scheduled to fund today:

     

    Loan
      Amount: [  ]

     

    Loan
      Number (if applicable): [  ]

     

    Property
      Address: [  ]

     

    If
      the
      mortgage loan is not funded by 5:00 p.m. New York City time on the business
      day
      on which you receive the closing funds, you are to return the closing funds
      via
      federal funds wire transfer to the related Buyer, no later than 5:00 p.m. New
      York time on the following business day, as follows:

     

    ABA:
      026-003-780

    Acct
      #:
      10-642785-0008

    Acct.
      Name: Newport Funding Corp.

    Attn:
      Siegfried Rader Ph. 212-474-7737

     

    ABA:
      026-003-780

    Acct
      #:
      10-536680-0008

    Acct.
      Name: Aspen Funding Corp.

    Attn:
      Siegfried Rader Ph. 212-474-7737

     

    ABA:
      

    Acct
      #:

    Acct
      Name: DPX

    Attn:
      Roger Smith Ph: 212-474-8453

     

    Very
      truly yours,

     

    NYMC
      LOAN
      CORPORATION

     

     
      
      By:___________________________________

      Name:_________________________________

      Title:__________________________________

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ACKNOWLEDGED
      AND AGREED:

     

    [Settlement
      Agent]

     

    By:___________________________________

    
      Name:_________________________________

      Title:__________________________________

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
      18

    to
      Custodial Agreement

     

     

    [NOTICE
      BY ASSIGNEE TO CUSTODIAN OF

    THE
      BUYER’S DEFAULT]

    [Date]

     

    [Custodian]

     

    [Address]

     

     

    
      	 	
              Re:

            	
              Default
                by Buyer

            

    

     

    Notice
      is
      hereby given that _____________________ (the “Buyer”) has materially defaulted
      in its obligations under an agreement between Assignee and the Buyer relating
      to
      the financing by Assignee of the Buyer’s advances with respect to the Mortgage
      Loans described on Schedule 1 hereto. Assignee hereby (i) directs that Custodian
      act with respect to the related mortgage files solely in the capacity of
      custodian for, and bailee of, Assignee, (ii) directs that Custodian hold such
      mortgage files solely for the exclusive use and benefit of Assignee and (iii)
      assumes the rights of the Buyer to furnish instructions to the Custodian as
      to
      the disposition of such mortgage files and such rights shall be exercisable
      solely by Assignee.

     

    Please
      acknowledge the foregoing by signing below and returing a copy of this notice
      to
      us at [address].

     

     

    Very
      truly yours,

     

    NYMC
      LOAN
      CORPORATION

     

     

    By:___________________________________

    
      Name:_________________________________

      Title:__________________________________

       

    

    [ASSIGNEE]

     

     
      
      By:___________________________________

      Name:_________________________________

      Title:__________________________________

       

    

    RECEIPT
      ACKNOWLEDGED:

     

     
      
      By:___________________________________

      Name:_________________________________

      Title:__________________________________

       

    

    cc:
      [Buyer]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    FORM
      OF TRANSACTION NOTICE

     

    ____________,
      200_

     

    DB
      Structured Products, Inc.

    Aspen
      Funding Corp.

    Newport
      Funding Corp.

    60
      Wall
      Street

    New
      York,
      NY 10005

    Attention:
      Vincent D’Amore

     

    Deutsche
      Bank National Trust Company

    1761
      East
      St. Andrew Place

    Santa
      Ana, California 92705

    Attention:
      Trust Administration-NS03DA

     

    LaSalle
      Bank National Association

    __________________

    __________________

    Attention:
      __________________

     

    Transaction
      No._____________

     

    Ladies
      and Gentlemen:

     

    The
      undersigned executes and delivers this notice (the “Notice”) pursuant to the
      requirements of the Master Repurchase Agreement, dated as of December 13, 2005
      (the “Repurchase Agreement”), among DB Structured Products, Inc. (“DBSP”), Aspen
      Funding Corp. (“Aspen”), Newport Funding Corp. (“Newport” and collectively with
      DBSP and Aspen, the “Buyers” and individually a “Buyer”), NYMC Loan Corporation
      as Seller (the “Seller”) and New York Mortgage Trust, Inc. as Guarantor, in
      connection with the submission for sale thereunder on _________ __, 200__ (the
      “Purchase Date”) of the Purchased Loans identified on the Schedule attached
      hereto. All capitalized terms used in this Notice without definition shall
      have
      the same meanings herein as they have in the Repurchase Agreement.

     

    The
      Seller hereby represents and certifies to [DB Structured Products, Inc.] [Aspen
      Funding Corp.] [Newport Funding Corp.] (the “Buyer”) as follows:

     

    1.    As
      of
      this date, the Seller is in compliance with all of the terms and conditions
      of
      the Program Documents.

     

    2.    The
      Seller’s representations and warranties set forth in the Program Documents are
      true and accurate as of the date of this Notice.

     

    3.    All
      of
      the conditions set forth in Section 10 of the Repurchase Agreement to the
      proposed Transaction to which this Notice relates have been
      satisfied.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.    Upon
      payment by Buyer of the Purchase Price in respect of the Transaction involving
      the Purchased Loans, all of the right (including the power to convey title
      thereto), title and interest in and to each Purchased Loan shall be transferred,
      assigned, set over and otherwise conveyed to the Buyer.

     

    5.    [There
      are no security interests relating to or affecting any or all of the Purchased
      Loans.][Prior to the sale of the Purchased Loans pursuant to the Repurchase
      Agreement, [________________] had a security interest in such Purchased Loans
      and has entered into a Security Release Certification, the original of which
      is
      attached hereto.]

     

    6.    The
      general terms of the sale are:

     

    A.    Aggregate
      outstanding principal balance of the Purchased Loans  as
      of the
      Purchase Date: _________

     

    B.    Purchase
      Date: ___________

     

    C.    Pricing
      Rate: ___________

     

    
      D.    Total
        outstanding Purchase Price of all Transactions under the Repurchase Agreement:
        ___________

    

     

    
      E.    Aggregate
        original principal balance of Purchased Loans:
        __________

    

     

    Wire
      Instructions For Seller:

     

    [Bank
      Name:

    City,
      State:

     

    ABA
      #:

    Account
      #:

     

    Account
      Name:

    Attention:  ]

     

    IN
      WITNESS WHEREOF, the parties hereto have executed and delivered this Notice
      as
      of the date first above written.

     

    NYMC
      LOAN
      CORPORATION, as Seller

     

    
      By:___________________________________

      Name:_________________________________

      Title:__________________________________

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