Document:

Letter to Shareholders

 Exhibit 4.4 
  
 (Letter on Fremont Michigan InsuraCorp, Inc. letterhead) 
  
 November 3, 2004 
  
 To Our Shareholders 
  
 The Fremont Michigan InsuraCorp, Inc. Board of Directors has adopted a Shareholder Rights Plan. The Plan provides for a dividend distribution to
shareholders of record on November 10, 2004, of Rights to purchase certain securities of the Company (or other consideration), exercisable upon the occurrence of certain takeover events. I am enclosing a summary description outlining the principal
terms of the Plan, which I urge you to read carefully. 
  
 The
Plan was not adopted in response to any specific effort to acquire control of Fremont Michigan InsuraCorp, Inc. and we are not aware of any such effort. After careful consideration, however, the Board of Directors believes that the Plan is a
reasonable and prudent response to the risks posed to shareholder interests in the event that you or the Company are confronted with coercive or unfair takeover tactics or a tender offer at an inadequate price. Simply put, the Plan contains
provisions to protect you in the event of an unsolicited offer to acquire Fremont Michigan InsuraCorp, Inc. This includes offers that do not treat all shareholders equally, the acquisition in the open market of shares constituting control without
offering fair value to all shareholders, and other coercive or unfair takeover tactics that could impair the Board’s ability to represent your interests fully and which the Board believes are not in the best interests of all shareholders.

  
 The Plan is not intended to prevent an acquisition of Fremont
Michigan InsuraCorp, Inc., on terms that are favorable and fair to all shareholders and will not be used for that purpose. It is designed to deal with the very serious problem of unilateral actions by hostile acquirers that are calculated to deprive
Fremont Michigan InsuraCorp, Inc.’s Board and its shareholders of their ability to determine the destiny of the Company. However, the mere declaration of the Rights dividend should not affect any prospective offeror willing to make an offer at
a full and fair price, or to negotiate with your Board of Directors. Furthermore, it will not interfere with a merger or other business combination transaction that the Board of Directors approves as fair and as constituting a recognition of full
value to the shareholders. 
  
 Issuance of the Rights will not
weaken Fremont Michigan InsuraCorp, Inc.’s financial strength, will not affect its reported earnings per share, is not taxable to you or the Company, and will not change the way in which the Company’s shares are traded. As described in the
attached summary, the Rights will only become exercisable under certain circumstances. They will then operate to protect our shareholders against being deprived of their right to share in the full measure of Fremont Michigan InsuraCorp Inc.’s
long-term potential. 
  
 In declaring the Rights dividend, we have
expressed our confidence in Fremont Michigan InsuraCorp, Inc.’s future and our determination that you, our owners, be given every opportunity to participate fully in that future. 
  
 Sincerely, 
  
 Richard E. Dunning 
 President and Chief Executive Officer 
  
 Enclosure 

 RIGHTS AGREEMENT SUMMARY 
  
 The Board of Directors of Fremont Michigan InsuraCorp, Inc., a Michigan corporation (“Company”), declared a
dividend payable November 10, 2004 of one right (“Right”) for each outstanding share of Class A Common Stock, no par value (“Common Stock”) of the Company held of record at the close of business on November 10, 2004 (“Record
Time”), or issued thereafter and prior to the Separation Time (as hereinafter defined). The Rights were issued pursuant to a Shareholder Rights Agreement, dated as of November 1, 2004 (“Rights Agreement”), between the Company and
Registrar and Transfer Company, as Rights Agent (“Rights Agent”). Each Right entitles its registered holder to purchase from the Company, after the Separation Time, one one-hundredth of a share of Junior Participating Preferred Stock
(“Junior Preferred Stock”), for $100 (“Exercise Price”), subject to adjustment. 
  
 The Rights will be evidenced by the Common Stock until the close of business on the earlier of (i) the later of (A) the tenth day after the date on which
any Person (other than the Company, a majority-owned Subsidiary of the Company or an employee stock ownership or other employee benefit plan of the Company or a majority-owned Subsidiary of the Company) commences a tender or exchange offer which, if
consummated, would result in such Person’s becoming the Beneficial Owner of 15% or more of the outstanding shares of Common Stock (any Person having such Beneficial Ownership being referred to herein as an “Acquiring Person”) and (B)
such later date as the Board of Directors may from time to time fix by resolution adopted prior to the Separation Time, and (ii) the first date (“Flip-In Date”) of public announcement by the Company or an Acquiring Person that an Acquiring
Person has become such other than as a result of a Flip-over Transaction or Event (as defined below); provided that, if the foregoing results in the Separation Time being prior to the Record Time, the Separation Time shall be the Record Time; and
provided further that, if a tender or exchange offer referred to in clause (i) is cancelled, terminated or otherwise withdrawn prior to the Separation Time, such offer shall be deemed never to have been made. The time described in either clause (i)
or (ii) of the foregoing sentence is referred to as the “Separation Time.” The Rights Agreement provides that, until the Separation Time, the Rights will be transferred with and only with the Common Stock. Common Stock issued after the
Record Time but prior to the Separation Time will evidence one Right for each share of Common Stock represented thereby and shall incorporate by reference the terms of the Rights Agreement (as such may be amended from time to time). The shares of
Common Stock outstanding at the Record Time shall evidence one Right for each share of Common Stock. Promptly following the Separation Time, separate certificates evidencing the Rights (“Right Certificates”) will be mailed to holders of
record of Common Stock at the Separation Time. 
  
 The Rights will
not be exercisable until the Business Day following the Separation Time. The Rights will expire on the earlier of (i) the close of business on November 10, 2014, and (ii) the date on which the Rights are redeemed as described below (“Expiration
Time”). 
  
 The Exercise Price and the number of Rights
outstanding, or in certain circumstances the securities purchasable upon exercise of the Rights, are subject to adjustment from time to time to prevent dilution in the event of a Common Stock dividend on, or a subdivision or a combination into a
smaller number of shares of, Common Stock, or the issuance or distribution of any securities or assets in respect of, in lieu of, or in exchange for, Common Stock. 
  
 In the event that prior to the Expiration Time, a Flip-In Date shall occur, the Company shall take such action as shall be
necessary to ensure and provide that, if permitted by applicable law, each Right (other than Rights beneficially owned by the Acquiring Person or any Affiliate or Associate thereof, which Rights shall become void) shall constitute the right to
purchase from the Company, upon the exercise thereof in accordance with, and subject to, the terms of the Rights Agreement, that number of shares of Common Stock of the Company having an aggregate Market Price, on the date of the public announcement
of an Acquiring Person’s becoming such (“Stock Acquisition Date”) that gave rise to the Flip-in Date, equal to twice the Exercise Price for an amount in cash equal to the then current Exercise Price. In addition, the Board of
Directors of the Company may, at its option, at any time after a Flip-in Date and prior to the time that an Acquiring Person becomes the Beneficial Owner of more than 50% of the outstanding shares of Common Stock elect to exchange all (but not less
than all) the then outstanding Rights (other than Rights Beneficially Owned by the Acquiring Person or any Affiliate or 

 Associate thereof, which Rights become void) for shares of Common Stock at an exchange ratio of one share of Common Stock
per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date of the Separation Time (the “Exchange Ratio”). Immediately upon such action by the Board of Directors, the right
to exercise the Rights will terminate and each Right will thereafter represent only the right to receive a number of shares of Common Stock equal to the Exchange Ratio. 
  
 Whenever the Company shall become obligated (as described in the preceding paragraph) to issue shares of Common Stock upon
exercise of or in exchange for Rights, the Company, at its option, may substitute therefor shares of Junior Preferred Stock, at a ratio of one one-hundredth of a share of Junior Preferred Stock for each share of Common Stock so issuable. 

 
 In the event that prior to the Expiration Time the Company enters into,
consummates, or permits to occur a transaction or series of transactions on or after the time when an Acquiring Person has become such in which, directly or indirectly, (A) the Company shall consolidate or merge with or into the Acquiring Person or
any Person acting together in any respect with the Acquiring Person, or the Acquiring Person or any other Person acting together in any respect with the Acquiring Person shall merge with or into the Company, (B) the Company shall sell or otherwise
transfer (or one or more of its Subsidiaries shall sell or otherwise transfer) assets (i) aggregating more than 50% of the assets (measured by either book value or fair market value) or (ii) generating more than 50% of the operating income or cash
flow, of the Company and its Subsidiaries (taken as a whole) to the Acquiring Person or any other Person acting together in any respect with the Acquiring Person (provided that for purposes of clauses (A) and (B), but without limitation, a Person
shall be deemed to be acting together in any respect with an Acquiring Person if such Person enters into any transaction of the type described in clause (A) or (B) within one year after the time the Acquiring Person has become such, unless (x) such
transaction was initiated by the Company and (y) the Acquiring Person or any Person acting together in any respect with the Acquiring Person has not acquired control of the Board of Directors of the Company), (C) any Acquiring Person shall (i) sell,
purchase, lease, exchange, mortgage, pledge, transfer or otherwise acquire or dispose of, to, from, or with, as the case may be, the Company or any of its Subsidiaries, over any period of 12 consecutive calendar months, assets or liabilities (x)
having an aggregate fair market value of more than $6,000,000 or (y) on terms and conditions less favorable to the Company than the Company would be able to obtain through arm’s-length negotiations with an unaffiliated third party, (ii) receive
any compensation for services from the Company or any of its Subsidiaries, other than compensation for full-time employment as a regular employee at rates in accordance with the Company’s (or its Subsidiaries’) past practices, or (iii)
receive the benefit, directly or indirectly (except proportionately as a shareholder), over any period of 12 consecutive calendar months, of any loans, advances, guarantees, pledges, insurance, reinsurance or other financial assistance or any tax
credits or other tax advantage provided by the Company or any of its Subsidiaries involving an aggregate principal amount in excess of $6,000,000 or an aggregate cost or transfer of benefits from the Company or any of its Subsidiaries in excess of
$6,000,000 or, in any case, on terms and conditions less favorable to the Company than the Company would be able to obtain through arm’s-length negotiations with a third party, or (D) as a result of any reclassification of securities (including
any reverse stock split), or recapitalization, of the Company, or any merger or consolidation of the Company with any of its subsidiaries, or any other transaction or series of transactions (whether or not with or into or otherwise involving an
Acquiring Person), the proportionate share of the outstanding shares of any class of equity or convertible securities of the Company or any of its Subsidiaries which is directly or indirectly owned by any Acquiring Person is increased by more than
1% (each of the transactions or events or series of transactions or events in clauses (A) through (D) above being referred to herein as a “Flip-over Transaction or Event”), the Company shall take such action as shall be necessary to
ensure, and shall not enter into, consummate, or permit to occur any Flip-over Transaction or Event unless and until it shall have entered into a supplemental agreement with the Person engaging in such Flip-over Transaction or Event (“Flip-over
Entity”), for the benefit of the holders of the Rights, providing that upon consummation or occurrence of the Flip-over Transaction or Event (i) each Right shall thereafter constitute the right to purchase from the Flip-over Entity, upon
exercise thereof in accordance with the terms of the Rights Agreement, that number of shares of common stock of the Flip-over Entity having an aggregate Market Price on the date of consummation or occurrence of such Flip-over Transaction or Event
equal to twice the Exercise Price for an amount in cash equal to the then current Exercise Price and (ii) the Flip-over Entity shall thereafter be liable for, and shall assume, by virtue of such Flip-over Transaction or Event and such supplemental
agreement, all the obligations and duties of the Company pursuant to the Rights Agreement. For purposes of the foregoing definition of (“Flip-over 

 Transaction or Event”), the term “Acquiring Person” shall include any Acquiring Person and its Affiliates
and Associates (other than the Company, a wholly-owned Subsidiary of the Company or an employee stock ownership plan or other employee benefit plan of the Company or a wholly-owned Subsidiary of the Company), counted together as a single Person.

  
 The Board of Directors of the Company may, at its option, at
any time prior to the Flip-in Date, redeem all (but not less than all) the then outstanding Rights at a redemption price of $.001 per Right, subject to adjustment, (“Redemption Price”), as provided in the Rights Agreement. Immediately upon
the action of the Board of Directors of the Company electing to redeem the Rights, without any further action and without any notice, the right to exercise the Rights will terminate and each Right will thereafter represent only the right to receive
the Redemption Price in cash for each Right so held. 
  
 The
holders of Rights will, solely by reason of their ownership of Rights, have no rights as shareholders of the Company, including, without limitation, the right to vote or to receive dividends. 
  
 The Rights will not prevent a takeover of the Company. The Rights, however,
may have certain anti-takeover effects. The Rights may cause substantial dilution to a person or group that acquires 15% or more of the Common Stock unless the Rights are first redeemed by the Board of Directors of the Company. Nevertheless, the
Rights should not interfere with a transaction that is in the best interests of the Company and its shareholders on or prior to the Flip-in Date, because the Rights can be redeemed before the consummation of such transaction. 
  
 As of November 1, 2004, there were 862,128 shares of Common Stock issued and
outstanding and 43,105 shares reserved for issuance pursuant to the existing option plan. As of November 1, 2004, options to exercise 39,500 shares of the Company’s Common Stock, granted under the plan, were outstanding. As long as the Rights
are attached to the Common Stock, the Company will issue one Right with each new share of Common Stock so that all such shares will have Rights attached. 
  
 The foregoing description of the rights is qualified in its entirety by reference to the Rights Agreement and such exhibits thereto, including the
definitions therein of certain terms. Whenever particular terms that are defined in the Rights Agreement are referred to, it is intended that such defined terms shall be incorporated herein by reference.Assignment, Assumption and Recognition Agreement

 EXHIBIT 10.1 
  
 ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT 
  
 This is an Assignment, Assumption and Recognition Agreement (this “AAR Agreement”) made as of October 29, 2004
(the “Closing Date”), among EMC Mortgage Corporation, (the “Assignor”), HomeBanc Mortgage Trust 2004-2, as issuer (the “Assignee”), HMB Acceptance Corp. (the “Company”) and HomeBanc Corp. (the
“Servicer”). 
  
 In consideration of the mutual promises
contained herein the parties hereto agree that the residential mortgage loans (the “Assigned Loans”) listed on Attachment 1 annexed hereto (the “Assigned Loan Schedule”) purchased by Assignor from Company pursuant to the
Purchase, Warranties and Servicing Agreement, dated as of July 1, 2004, among the Assignor, the Servicer and the Company (the “Agreement”), and sub-serviced by HomeBanc Mortgage Corporation, shall be subject to the terms of this AAR
Agreement. Capitalized terms used herein but not defined shall have the meanings ascribed to them in the Agreement. 
  
 Assignment and Assumption 
  
 1. Assignor hereby grants, transfers and assigns to Assignee all of the right, title and interest of Assignor in the Assigned Loans and, as they relate to
the Assigned Loans, all of its right, title and interest in, to and under the Agreement. Assignor specifically reserves and does not assign to Assignee any right, title and interest in, to or under any Mortgage Loans subject to the Agreement other
than the Assigned Loans. Notwithstanding anything to the contrary contained herein, the Assignor specifically reserves and does not assign to the Assignee any right, title and interest in, to or under the representations and warranties contained in
Section 3.01 and Section 3.02 of the Agreement and the Assignor is retaining the right to enforce the representations and warranties set forth in those sections against the Company. Except as is otherwise expressly provided herein, the Assignor
makes no representations, warranties or covenants to the Assignee and the Assignee acknowledges that the Assignor has no obligations to the Assignee under the terms of the Agreements or otherwise relating to the transaction contemplated herein
(including, but not limited to, any obligation to indemnify the Assignee). In addition, the Assignor specifically reserves and does not assign to the Assignee any right, title and interest in, to or under Section 2.09 of the Agreement and the
Assignor is retaining the right to enforce such section against the Company. 
  
 Representations; Warranties and Covenants 
  
 2. Assignor warrants and represents to Assignee, Company and Servicer as of the date hereof: 
  

	 	a.	Attached hereto as Attachment 2 is a true and accurate copy of the Agreement, which agreement is in full force and effect as of the date hereof and the provisions of which have not
been waived, amended or modified in any respect, nor has any notice of termination been given thereunder; 

  

	 	b.	Assignor was the lawful owner of the Assigned Loans with full right to transfer the Assigned Loans and any and all of its interests, rights and obligations under the Agreement as it
relates to the Assigned Loans, free and clear of any and all liens, claims and encumbrances; and upon the transfer of the Assigned Loans to Assignee as contemplated herein, Assignee shall have good title to each and every Assigned Loan, as well as
any and all of Assignor’s interests, rights and obligations under the Agreement as it relates to the Assigned Loans, other than Assignor’s right, title and interest in, to or under the representations and warranties contained in Section
3.01 and Section 3.02, and the Assignor’s rights under Section 2.09, of the Agreement, free and clear of any and all liens, claims and encumbrances; 

  

	 	c.	Assignor has not received notice of, and has no knowledge of, any offsets, counterclaims or other defenses available to Company or Servicer with respect to the Assigned Loans or the
Agreement; 

  

	 	d.	Assignor has not waived or agreed to any waiver under, or agreed to any amendment or other modifications of, the Agreement. Assignor has no knowledge of, and has not received notice
of, any waivers under or any amendments or other modifications of, or assignment of rights or obligations under the Agreement; 

  

	 	e.	Assignor is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation, and has all requisite power and authority to
acquire, own and sell the Assigned Loans; 

  

	 	f.	 Assignor has full power and authority to execute, deliver and perform its obligations under this AAR Agreement, and to consummate the transactions set forth herein.
The consummation of the transactions contemplated by this AAR Agreement is in the ordinary course of Assignor’s business and will not conflict with, or result in a breach of, any of the terms, conditions or provisions of Assignor’s charter
or by-laws or any legal restriction, or any material agreement or instrument to which Assignor is now a party or by which it is bound, or result in the violation of any law, rule, regulation, order, judgment or decree to which Assignor or its
property is subject. The execution, delivery and performance by Assignor of this AAR Agreement and the consummation by it of the transactions contemplated hereby, have been duly authorized by all necessary action on the part of Assignor. This AAR
Agreement has been duly executed and delivered by Assignor and, upon the due authorization, execution and delivery by Assignee, Company and Servicer, will constitute the valid and legally binding obligation of Assignor enforceable against Assignor
in accordance with its terms except as enforceability may be limited by bankruptcy, reorganization, insolvency, moratorium or other similar laws now or hereafter in effect relating to creditors’ rights 

  

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generally, and by general principles of equity regardless of whether enforceability is considered in a proceeding in equity or at law;

  

	 	g.	No consent, approval, order or authorization of, or declaration, filing or registration with, any governmental entity is required to be obtained or made by Assignor in connection
with the execution, delivery or performance by Assignor of this AAR Agreement, or the consummation by it of the transactions contemplated hereby. Neither Assignor nor anyone acting on its behalf has offered, transferred, pledged, sold or otherwise
disposed of the Assigned Loans or any interest in the Assigned Loans, or solicited any offer to buy or accept transfer, pledge or other disposition of the Assigned Loans, or any interest in the Assigned Loans, or otherwise approached or negotiated
with respect to the Assigned Loans, or any interest in the Assigned Loans, with any Person in any manner, or made any general solicitation by means of general advertising or in any other manner, or taken any other action which would constitute a
distribution of the Assigned Loans under the Securities Act of 1933, as amended (the “1933 Act”) or which would render the disposition of the Assigned Loans a violation of Section 5 of the 1933 Act or require registration pursuant thereto;

  

	 	h.	There is no action, suit, proceeding, investigation or litigation pending or, to Assignor’s knowledge, threatened, which either in any instance or in the aggregate, if
determined adversely to Assignor, would adversely affect Assignor’s execution or delivery of, or the enforceability of, this AAR Agreement, or the Assignor’s ability to perform its obligations under this AAR Agreement; and

  

	 	i.	Assignor has received from Company and Servicer, and has delivered to Assignee, all documents required to be delivered to Assignor by Company and Servicer prior to the date hereof
pursuant to Section 2.07 of the Agreement with respect to the Assigned Loans. 

  
 3. Assignee warrants and represents to, and covenants with, Assignor, Company and Servicer as of the date hereof: 
  

	 	a.	Assignee is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation and has all requisite power and authority to hold the Assigned
Loans on behalf of the holders of HomeBanc Mortgage Trust 2004-2, Mortgage-Backed Notes, Series 2004-2; 

  

	 	b.	 Assignee has full power and authority to execute, deliver and perform its obligations under this AAR Agreement, and to consummate the transactions set forth herein.
The consummation of the transactions contemplated by this AAR Agreement is in the ordinary course of Assignee’s business and will not conflict with, or result in a breach of, any 

  

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of the terms, conditions or provisions of Assignee’s organizational documents or any legal restriction, or any material agreement or instrument to which
Assignee is now a party or by which it is bound, or result in the violation of any law, rule, regulation, order, judgment or decree to which Assignee or its property is subject. The execution, delivery and performance by Assignee of this AAR
Agreement and the consummation by it of the transactions contemplated hereby, have been duly authorized by all necessary action on the part of Assignee. This AAR Agreement has been duly executed and delivered by Assignee and, upon the due
authorization, execution and delivery by Assignor, Servicer and Company, will constitute the valid and legally binding obligation of Assignee enforceable against Assignee in accordance with its terms except as enforceability may be limited by
bankruptcy, reorganization, insolvency, moratorium or other similar laws now or hereafter in effect relating to creditors’ rights generally, and by general principles of equity regardless of whether enforceability is considered in a proceeding
in equity or at law; 

  

	 	c.	No consent, approval, order or authorization of, or declaration, filing or registration with, any governmental entity is required to be obtained or made by Assignee in connection
with the execution, delivery or performance by Assignee of this AAR Agreement, or the consummation by it of the transactions contemplated hereby; 

  

	 	d.	There is no action, suit, proceeding, investigation or litigation pending or, to Assignee’s knowledge, threatened, which either in any instance or in the aggregate, if
determined adversely to Assignee, would adversely affect Assignee’s execution or delivery of, or the enforceability of, this AAR Agreement, or the Assignee’s ability to perform its obligations under this AAR Agreement;

  

	 	e.	The Assignee assumes for the benefit of each of the Assignor, Servicer and the Company all of the Assignor’s rights as Purchaser under the Agreement, other than the
Assignor’s right, title and interest in, to or under the representations and warranties contained in Section 3.01 and Section 3.02, and the Assignor’s rights under Section 2.09, but solely with respect to the Assigned Loans.

  
 4. Company warrants and represents to, and
covenants with, Assignor and Assignee as of the date hereof: 
  

	 	a.	Attached hereto as Attachment 2 is a true and accurate copy of the Agreement, which agreement is in full force and effect as of the date hereof and the provisions of which have not
been waived, amended or modified in any respect, nor has any notice of termination been given thereunder; 

  

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	 	b.	Company is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation, and has all requisite power and authority to perform its
obligations under the Agreement; 

  

	 	c.	Company has full corporate power and authority to execute, deliver and perform its obligations under this AAR Agreement, and to consummate the transactions set forth herein. The
consummation of the transactions contemplated by this AAR Agreement is in the ordinary course of Company’s business and will not conflict with, or result in a breach of, any of the terms, conditions or provisions of Company’s charter or
by-laws or any legal restriction, or any material agreement or instrument to which Company is now a party or by which it is bound, or result in the violation of any law, rule, regulation, order, judgment or decree which violation would have a
material adverse effect on Company or its property or the consummation of the transactions contemplated by this AAR. The execution, delivery and performance by Company of this AAR Agreement and the consummation by it of the transactions contemplated
hereby, have been duly authorized by all necessary corporate action on the part of Company. This AAR Agreement has been duly executed and delivered by Company, and, upon the due authorization, execution and delivery by Assignor, Assignee and
Servicer, will constitute the valid and legally binding obligation of Company, enforceable against Company in accordance with its terms except as enforceability may be limited by bankruptcy, reorganization, insolvency, moratorium or other similar
laws now or hereafter in effect relating to creditors’ rights generally, and by general principles of equity regardless of whether enforceability is considered in a proceeding in equity or at law; 

  

	 	d.	No consent, approval, order or authorization of, or declaration, filing or registration with, any governmental entity is required to be obtained or made by Company in connection
with the execution, delivery or performance by Company of this AAR Agreement, or the consummation by it of the transactions contemplated hereby; 

  

	 	e.	Neither this AAR Agreement nor any certification, statement, report or other agreement, document or instrument furnished or to be furnished by the Company pursuant to this AAR
Agreement contains or will contain any materially untrue statement of fact or omits or will omit to state a fact necessary to make the statements contained therein not misleading; and 

  

	 	f.	No event has occurred from the applicable Closing Date to the date hereof which would render the representations and warranties as to the related Mortgage Loans made by the Company
in Section 3.01 and Section 3.02 of the Agreement to be untrue in any material respect. 

  

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 5. Servicer warrants and represents to, and covenants with, Assignor and Assignee as of the date hereof:

  

	 	a.	Attached hereto as Attachment 2 is a true and accurate copy of the Agreement, which agreement is in full force and effect as of the date hereof and the provisions of which have not
been waived, amended or modified in any respect, nor has any notice of termination been given thereunder; 

  

	 	b.	Servicer is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation, and has all requisite power and authority to service the
Assigned Loans and otherwise to perform its obligations under the Agreement; 

  

	 	c.	Servicer has full corporate power and authority to execute, deliver and perform its obligations under this AAR Agreement, and to consummate the transactions set forth herein. The
consummation of the transactions contemplated by this AAR Agreement is in the ordinary course of Servicer’s business and will not conflict with, or result in a breach of, any of the terms, conditions or provisions of Servicer’s charter or
by-laws or any legal restriction, or any material agreement or instrument to which Servicer is now a party or by which it is bound, or result in the violation of any law, rule, regulation, order, judgment or decree which violation would have a
material adverse effect on Servicer or its property or the consummation of the transactions contemplated by this AAR. The execution, delivery and performance by Servicer of this AAR Agreement and the consummation by it of the transactions
contemplated hereby, have been duly authorized by all necessary corporate action on the part of Servicer. This AAR Agreement has been duly executed and delivered by Servicer, and, upon the due authorization, execution and delivery by Assignor,
Assignee and Company, will constitute the valid and legally binding obligation of Servicer, enforceable against Servicer in accordance with its terms except as enforceability may be limited by bankruptcy, reorganization, insolvency, moratorium or
other similar laws now or hereafter in effect relating to creditors’ rights generally, and by general principles of equity regardless of whether enforceability is considered in a proceeding in equity or at law; 

  

	 	d.	No consent, approval, order or authorization of, or declaration, filing or registration with, any governmental entity is required to be obtained or made by Servicer in connection
with the execution, delivery or performance by Servicer of this AAR Agreement, or the consummation by it of the transactions contemplated hereby; 

  

	 	e.	Neither this AAR Agreement nor any certification, statement, report or other agreement, document or instrument furnished or to be furnished by the Servicer pursuant to this AAR
Agreement contains or will contain any materially untrue statement of fact or omits or will omit to state a fact necessary to make the statements contained therein not misleading; and 

  

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	 	f.	Servicer shall establish a Custodial Account and an Escrow Account under the Agreement in favor of Assignee with respect to the Assigned Loans separate from the Custodial Account
and the Escrow Account previously established under the Agreement in favor of Assignor. 

  
 Recognition of Assignee 
  
 6. From and after the date hereof, Company and Servicer shall recognize Assignee as owner of the Assigned Loans and Servicer will service, or cause to be
serviced, the Assigned Loans for Assignee as if Assignee and Servicer had entered into a separate servicing agreement for the servicing of the Assigned Loans in the form of the Agreement (as modified herein), the terms of which are incorporated
herein by reference. Each of the Company and the Servicer acknowledges and consents to (i) the assignment by the Assignor to the Assignee of all of the Assignor’s rights against the Company and the Servicer pursuant to the Agreement and to the
enforcement or exercise of any right or remedy against the Company and the Servicer pursuant to the Agreement as assigned by the Assignor and as modified herein and (ii) the assignment by the Assignee to U.S. Bank National Association (the
“Indenture Trustee”) of such rights and to the enforcement or exercise of any right or remedy by the Indenture Trustee, or the Master Servicer acting pursuant to the Sale and Servicing Agreement (as defined below), against the Company and
the Servicer pursuant to this AAR Agreement as assigned by the Assignee. Such enforcement of a right or remedy by the Assignee, the Master Servicer or the Indenture Trustee, as applicable, shall have the same force and effect as if the right or
remedy had been enforced or exercised by the Assignor directly. 
  
 In addition, each of the Company and the Servicer hereby acknowledges that from and after the date hereof, the Assigned Loans will be subject to the Sale and Servicing Agreement (the “Sale and Servicing Agreement”), dated as of
October 29, 2004, by and among the Assignor, the Assignee, the Indenture Trustee, Structured Asset Mortgage Investments II Inc. (“SAMI II”) and Wells Fargo Bank, National Association, as master servicer and securities administrator (the
“Master Servicer”). Pursuant to the Sale and Servicing Agreement, the Master Servicer has the right to monitor the Servicer’s performance of its servicing obligations under the Agreement (as modified herein). Such right will include,
without limitation, the right to terminate the Servicer under the Agreement (as modified herein), upon the occurrence of an event of default thereunder, the right to receive all remittances required to be made by the Servicer under the Agreement (as
modified herein), the right to receive all monthly reports and other data required to be delivered by the Servicer under the Agreement (as modified herein), the right to examine the books and records of the Servicer, indemnification rights, and the
right to exercise certain rights of consent and approval relating to actions taken by the Servicer. In connection therewith, the Servicer hereby agrees that all remittances required to be made with respect to the Assigned Loans pursuant to the
Agreement, shall be made in accordance with the following wire transfer instructions: 
  
 HBMT 2004-2 Master Servicer Collection Account 
 Bank: Wells Fargo Bank, National Association 
 ABA Routing Number: 121000248 
 Account Name:
SAS Clearing 
 Account #3970771416 
 FFC to: HBMT 2004-2, Account 17123100 
  

 7 

 and the Servicer shall deliver, or cause to be delivered, all reports required to be delivered under the Agreement to the
Assignee and to the Master Servicer at: 
  
 Wells Fargo Bank,
National Association 
 9062 Old Annapolis Road 
 Columbia, Maryland 21045 
 Attention: HBMT 2004-2 
  
 It is the intention of Assignor, Company, Servicer and Assignee that this AAR
Agreement shall be binding upon and for the benefit of the respective successors and assigns of the parties hereto. None of Company, Servicer or Assignor shall amend or agree to amend, modify, waive, or otherwise alter any of the terms or provisions
of the Agreement which amendment, modification, waiver or other alteration would in any way affect the Assigned Loans without the prior written consent of Assignee. 
  
 7. The Servicer guarantees the performance by the Company of the Company’s obligations under this AAR Agreement and
under the Agreement, including without limitation, the repurchase and substitution obligations of the Company pursuant to Section 3.03 of the Agreement and the indemnification obligations of the Company pursuant to Section 8.01 of the Agreement.

  
 Limitation of Liability 
  
 8. It is expressly understood and agreed by the parties hereto that (a) this
AAR Agreement is executed and delivered by Wilmington Trust Company, not individually or personally but solely as owner trustee of HomeBanc Mortgage Trust 2004-2 (the “Trust”), in the exercise of the powers and authority conferred and
vested in it under the Amended and Restated Trust Agreement, dated as of October 29, 2004, by and among Wilmington Trust Company, SAMI II and the Indenture Trustee (b) each of the representations, undertakings and agreements herein made on the part
of the Trust is made and intended not as personal representations, undertakings and agreements by Wilmington Trust Company but is made and intended for the purpose of binding only the Trust and (c) under no circumstances shall Wilmington Trust
Company be personally liable for the payment of any indebtedness or expenses of the Trust or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Trust under this AAR Agreement.

  
 Modification of Agreement 

 
 9. The Company, the Servicer and Assignor hereby amend the Agreement by
deleting the last sentence in Section 1.01 of the Agreement and replacing it with the following: 
  
 Capitalized terms used and not defined herein shall have the meanings assigned thereto in Appendix A to the Indenture, dated as of October
29, 2004, 

  

 8 

 
among HomeBanc Mortgage Trust 2004-2, as issuer, Wells Fargo Bank, National Association and U.S. Bank National Association. 
  
 10. The Company, the Servicer and Assignor hereby amend the Agreement by
deleting the first sentence of Section 4.15 of the Agreement and replacing it with the following: 
  
 With respect to any Mortgage Loan which as of the first day of a calendar quarter is delinquent in payment by 90 days or more or is an REO
Property, the Servicer shall have the right to purchase such Mortgage Loan in accordance with the terms and conditions of Section 3.21 of that certain Sale and Servicing Agreement, dated as of July 29, 2004, among Structured Asset Mortgage
Investments II, Inc., Wells Fargo Bank, National Association and the Purchaser, or that certain Sale and Servicing Agreement, dated as of October 29, 2004, among Structured Asset Mortgage Investments II, Inc., Wells Fargo Bank, National Association
and the Purchaser, as applicable; provided however (i) that such Mortgage Loan is still 90 days or more delinquent or is an REO Property as of the date of such purchase and (ii) this purchase option, if not theretofore exercised, shall terminate on
the date prior to the last day of the related calendar quarter. 
  
 Miscellaneous 
  
 11. All
demands, notices and communications related to the Assigned Loans, the Agreement and this AAR Agreement shall be in writing and shall be deemed to have been duly given if personally delivered or mailed by registered mail, postage prepaid, as
follows: 
  

	 	a.	In the case of Company, 

  
 HMB Acceptance Corp. 
 2002 Summit Boulevard,
Suite 100 
 Atlanta, Georgia 30319 
 Attention: General Counsel 
  

	 	b.	In the case of Servicer, 

  
 HomeBanc Corp. 
 2002 Summit Boulevard, Suite
100 
 Atlanta, Georgia 30319 
 Attention: General Counsel 
  

	 	c.	In the case of Assignor, 

  
 EMC Mortgage Corporation 
 Mac Arthur Ridge II

 909 Hidden Ridge Drive, Suite 200 
 Irving, Texas 75038 
 Attention: Ralene Ruyle 
 Telecopier No.: (972) 444-2810 
  

 9 

 with a copy to: 
  

Bear Stearns Mortgage Capital Corporation 
 383 Madison Avenue 
 New York, New York 10179 
 Attention: Ernie Calabrese 
 Telecopier No.: (212) 272-9529 
  

	 	d.	In the case of Assignee, 

  
 Wilmington Trust Company 
 Rodney Square North

 1100 North Market Street 
 Wilmington, Delaware 19890-0001 
 Attention:
                     
  
 12. This AAR Agreement shall be construed in accordance with the laws of the State of New York, without regard to conflicts of law principles, and the
obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws. 
  
 13. No term or provision of this AAR Agreement may be waived or modified unless such waiver or modification is in writing and signed by the party against
whom such waiver or modification is sought to be enforced. 
  
 14.
This AAR Agreement shall inure to the benefit of the successors and assigns of the parties hereto. Any entity into which Assignor, Assignee, Servicer or Company may be merged or consolidated shall without the requirement for any further writing, be
deemed Assignor, Assignee, Servicer or Company, respectively hereunder. For purposes of this AAR Agreement, any Master Servicer shall be considered a third party beneficiary to this AAR Agreement entitled to all the rights and benefits accruing to
any Master Servicer herein as if it were a direct party to this AAR Agreement. 
  
 15. This AAR Agreement shall survive the conveyance of the Assigned Loans as contemplated in this AAR Agreement. 
  
 16. This AAR Agreement may be executed simultaneously in any number of counterparts. Each counterpart shall be deemed to be an original and all such
counterparts shall constitute one and the same instrument. 
  
 17.
In the event that any provision of this AAR Agreement conflicts with any provision of the Agreement with respect to the Assigned Loans, the terms of this AAR Agreement shall control. 
  

 10 

 IN WITNESS WHEREOF, the parties hereto have executed this AAR Agreement as of the day and year
first above written. 
  

			
	 EMC MORTGAGE CORPORATION
 Assignor

		
	By:	 	 /s/ Dana Dillard

	 Name:
 Title:
	 	 Dana Dillard
 Senior Vice President

	
	 HOMEBANC MORTGAGE TRUST 2004-2
 By: Wilmington Trust Company,
 not in its individual capacity but solely as Owner Trustee
 Assignee

		
	By:	 	 /s/ James P. Lawler

	 Name:
 Title:
	 	 James P. Lawler
 Vice President

	
	 HMB ACCEPTANCE CORP.
 Company

		
	By:	 	 /s/ Debra F. Watkins

	 Name:
 Title:
	 	 Debra F. Watkins
 Executive Vice President

	
	 HOMEBANC CORP.
 Servicer

		
	By:	 	 /s/ Debra F. Watkins

	 Name:
 Title:
	 	 Debra F. Watkins
 Executive Vice President

	
	Acknowledged and Agreed:
	
	 WELLS FARGO BANK,
 NATIONAL ASSOCIATION
 Master Servicer

		
	By:	 	 /s/ Stacey Taylor

	 Name:
 Title:
	 	 Stacey Taylor
 Assistant Vice President

  

 11 

 U.S. BANK NATIONAL ASSOCIATION 
 as Indenture Trustee for the holders of HomeBanc Mortgage Trust 2004-2, Mortgage-Backed 
 Notes, Series 2004-2 
  

			
		
	By:	 	 /s/ Vaneta I. Bernard

	 Name:
 Title:
	 	 Vaneta I. Bernard
 Vice President

  

 12 

 ATTACHMENT l 
  
 ASSIGNED LOAN SCHEDULE 
  
 (Provided Upon Request) 
  

 13 

 ATTACHMENT 2 
  
 PURCHASE, WARRANTIES AND SERVICING AGREEMENT 
  
 (PROVIDED UPON REQUEST) 
  

 14

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