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                                                                     Exhibit 4.2

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                                                              | EXECUTION COPY |
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                        MORTGAGE LOAN PURCHASE AGREEMENT

     This Mortgage Loan Purchase Agreement (the "Agreement"),  dated October 30,
2006, is between Banc of America  Funding  Corporation,  a Delaware  corporation
(the "Purchaser") and Bank of America, National Association,  a national banking
association (the "Seller").

     WHEREAS,  pursuant to (a) that certain Flow Sale and  Servicing  Agreement,
dated as of  February  1, 2004,  by and  between  the Seller  (as  successor  in
interest  to  Banc  of  America  Mortgage  Capital  Corporation  ("BAMCC")),  as
purchaser, and SunTrust Mortgage, Inc. ("SunTrust"), as seller, (b) that certain
Amendment  No. 1,  dated as of June 1,  2004,  by and  between  the  Seller  and
SunTrust,  (c)  that  certain  Master  Assignment,  Assumption  and  Recognition
Agreement, dated September 1, 2004, by and among BAMCC, SunTrust, the Seller and
Wachovia Bank, National Association,  (d) that certain Amendment No. 2, dated as
of November 1, 2004,  by and between the Seller and  SunTrust,  (e) that certain
Regulation  AB  Compliance  Addendum to the Flow Sale and  Servicing  Agreement,
dated as of January 1, 2006,  by and  between the Seller and  SunTrust,  and (f)
that certain Memorandum of Sale, dated as of August 25, 2006, by and between the
Seller  and  SunTrust  (collectively,  the  "Transfer  Agreement"),  the  Seller
purchased the mortgage loans listed on Exhibit I (the "Assigned Mortgage Loans")
from SunTrust and SunTrust currently services the Assigned Mortgage Loans;

     WHEREAS, the Seller is the owner of the mortgage loans listed on Exhibit II
(the "BANA Mortgage  Loans," and together with the Assigned  Mortgage Loans, the
"Mortgage  Loans") and the related notes or other evidence of indebtedness  (the
"BANA  Mortgage  Notes," and together  with the notes of the  Assigned  Mortgage
Loans,  the  "Mortgage  Notes") or other  evidence of  ownership,  and the other
documents  or  instruments  constituting  the related  mortgage  file (the "BANA
Mortgage File");

     WHEREAS,  the  Seller,  as of the  date  hereof,  owns the  mortgages  (the
"Mortgages")  on the  properties  (the  "Mortgaged  Properties")  securing  such
Mortgage Loans,  including rights (a) to any property acquired by foreclosure or
deed  in lieu of  foreclosure  or  otherwise,  and  (b) to the  proceeds  of any
insurance  policies  covering the Mortgage Loans or the Mortgaged  Properties or
the obligors on the Mortgage Loans; and

     WHEREAS,  the parties hereto desire that the Seller sell the Mortgage Loans
to the Purchaser and the Purchaser  purchase the Mortgage  Loans from the Seller
pursuant to the terms of this Agreement; and

     WHEREAS, pursuant to the terms of a Pooling and Servicing Agreement,  dated
October 30, 2006 (the "Pooling and Servicing  Agreement"),  among the Purchaser,
as depositor,  U.S. Bank National Association,  as trustee (the "Trustee"),  and
Wells Fargo Bank, as securities  administrator (the "Securities  Administrator")
and as master  servicer (the "Master  Servicer"),  the Purchaser will convey the
Mortgage Loans to Banc of America Funding 2006-7 Trust (the "Trust").

     NOW, THEREFORE,  in consideration of the mutual covenants herein contained,
the parties hereto agree as follows:
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     The Purchaser and the Seller hereby recite and agree as follows:

     1.  Defined  Terms.  Terms used  without  definition  herein shall have the
respective  meanings  assigned to them in the Pooling  and  Servicing  Agreement
relating to the issuance of the Purchaser's Mortgage Pass-Through  Certificates,
Series  2006-7  (the   "Certificates")  or,  if  not  defined  therein,  in  the
underwriting  agreement dated October 30, 2006 (the  "Underwriting  Agreement"),
between the  Purchaser  and Banc of America  Securities  LLC, or in the purchase
agreement  dated  October  30,  2006 (the  "Purchase  Agreement"),  between  the
Purchaser and Banc of America Securities LLC.

     2. Purchase  Price;  Purchase and Sale.  The Seller agrees to sell, and the
Purchaser  agrees to purchase,  the Mortgage Loans. In consideration of the sale
of the Mortgage  Loans from the Seller to the Purchaser on the Closing Date, the
Purchaser  agrees (i) to pay to the Seller on the Closing Date,  in  immediately
available funds, an amount equal to  $739,968,075.26,  and (ii) to deliver to or
at the  direction of the Seller on the Closing  Date, a 100% interest in each of
the Class CE  Certificates  and the Class P  Certificates  (clause  (i) and (ii)
together, the "Purchase Price").

     Upon  payment of the  Purchase  Price,  the Seller  shall be deemed to have
transferred,  assigned, set over and otherwise conveyed to the Purchaser all the
right,  title and  interest of the Seller in and to the  Mortgage  Loans and all
Mortgage Files,  including all interest and principal  received or receivable by
the Seller on or with respect to the Mortgage  Loans after the Cut-off Date (and
including  scheduled  payments of  principal  and interest due after the Cut-off
Date but  received  by the Seller on or before the  Cut-off  Date and  Principal
Prepayments  received or applied on the Cut-off Date, but not including payments
of principal  and  interest  due on the Mortgage  Loans on or before the Cut-off
Date),  together with all of the Seller's  rights,  title and interest in and to
all Mortgaged Property and any related title, hazard, primary mortgage, mortgage
pool policy or other insurance policies including all income, payments, products
and  proceeds  of any of the  foregoing  (but  excluding  any fees  payable by a
Mortgagor  for the right to cancel any portion of principal or interest of a BPP
Mortgage Loan). The Purchaser  hereby directs the Seller,  and the Seller hereby
agrees,  to deliver to the Trustee all  documents,  instruments  and  agreements
required to be delivered by the  Purchaser to the Trustee  under the Pooling and
Servicing Agreement and such other documents,  instruments and agreements as the
Purchaser or the Trustee shall reasonably request.

     3.  Representations  and Warranties as to the Assigned  Mortgage Loans. The
representations  and warranties  with respect to the Assigned  Mortgage Loans in
the  Transfer  Agreement  were  made as of the date  specified  in the  Transfer
Agreement.  The Seller's right, title and interest in such  representations  and
warranties  and the remedies in connection  therewith  have been assigned to the
Purchaser  pursuant to the  Assignment,  Assumption and  Recognition  Agreement,
dated October 30, 2006, by and among the Seller, the Purchaser, the Trustee, the
Master  Servicer and SunTrust.  To the extent that any fact,  condition or event
with  respect  to  a  Mortgage   Loan   constitutes  a  breach  of  both  (i)  a
representation  or warranty of SunTrust under the Transfer  Agreement and (ii) a
representation or warranty of the Seller under this Agreement, the only right or
remedy  of the  Purchaser  shall be the  right to  enforce  the  obligations  of
SunTrust  under  any  applicable  representation  or  warranty  made by it.  The
Purchaser acknowledges and agrees that the representations and warranties of the
Seller in this Section 3 are applicable only to facts, conditions or events that
do not constitute a breach of any representation or warranty made by SunTrust in
the Transfer  Agreement.  The Seller shall have no obligation or liability  with
respect to any breach of a representation or warranty made by it with respect to

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the Mortgage Loans if the fact, condition or event constituting such breach also
constitutes  a breach of a  representation  or warranty  made by SunTrust in the
Transfer Agreement (other than with respect to the representations or warranties
in Section 3(k), to the extent such  representations  and  warranties  relate to
predatory or abusive lending and the  representations  and warranties in Section
3(o)  below),  without  regard to  whether  SunTrust  fulfills  its  contractual
obligations  in  respect  of such  representation  or  warranty.  Subject to the
foregoing,  the Seller  represents  and  warrants  with  respect to the Assigned
Mortgage  Loans,  or each Assigned  Mortgage Loan, as the case may be, as of the
date hereof or such other date set forth herein, that as of the Closing Date:

     (a) The  information  set forth with respect to the  Mortgage  Loans on the
mortgage  loan  schedule  attached  hereto  as  Exhibit  I (the  "Mortgage  Loan
Schedule")  provides an accurate listing of the Assigned Mortgage Loans, and the
information  with respect to each  Assigned  Mortgage  Loan on the Mortgage Loan
Schedule  is true and  correct  in all  material  respects  at the date or dates
respecting which such information is given;

     (b) No Assigned  Mortgage  Loan is more than 30 days  delinquent  as of the
Cut-off Date. The Seller has not waived any default,  breach, violation or event
of  acceleration,  and the Seller has not taken any action to waive any default,
breach, violation or even of acceleration, with respect to any Assigned Mortgage
Loan;

     (c) There are no  delinquent  taxes,  assessments  that could become a lien
prior to the  related  Mortgage  or  insurance  premiums  affecting  the related
Mortgaged Property;

     (d) With respect to each Assigned  Mortgage Loan, the related  Mortgage has
not been satisfied,  canceled,  subordinated or rescinded,  in whole or in part,
and the related  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 satisfaction, cancellation, subordination, recission or release;

     (e) With  respect to each  Assigned  Mortgage  Loan,  there is no  material
default,  breach, violation or event of acceleration existing under any Mortgage
or the related  Mortgage  Note and no event  which,  with the passage of time or
with notice and the expiration of any grace or cure period,  would  constitute a
material default,  breach,  violation or event of acceleration,  and neither the
Seller nor its predecessors have waived any material default,  breach, violation
or event of acceleration;

     (f) With respect to each  Assigned  Mortgage  Loan,  the related  Mortgaged
Property is free of material damage that would affect adversely the value of the
Mortgaged  Property as security  for the Assigned  Mortgage  Loan or the use for
which the premises were intended;

     (g)  With  respect  to each  Assigned  Mortgage  Loan,  to the  best of the
Seller's  knowledge,  there is no  proceeding  pending  for the total or partial
condemnation of the Mortgaged Property;

     (h) With respect to each  Assigned  Mortgage  Loan,  the related  Mortgaged
Property is lawfully  occupied under applicable law; all  inspections,  licenses
and  certificates  required  to be made or issued with  respect to all  occupied

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portions of each  Mortgaged  Property 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,  except  where the failure
would not have a material adverse effect upon the Assigned Mortgage Loan;

     (i) No Assigned Mortgage Loan is in foreclosure;

     (j) Each  Assigned  Mortgage  Loan is a  "qualified  mortgage"  within  the
meaning of Section 860G of the Code and Treas. Reg ss. 1.860G-2;

     (k) Any and all requirements of any federal,  state or local law including,
without limitation,  usury, truth in lending, real estate settlement procedures,
consumer credit protections,  all applicable predatory and abusive lending laws,
equal credit  opportunity or disclosure  laws  applicable to the origination and
servicing of each Assigned Mortgage Loan have been complied with;

     (l)  Except  with  respect  to each  Assigned  Mortgage  Loan for which the
related  Mortgage is recorded in the name of MERS,  the Seller is the sole owner
of record  and  holder of the  Assigned  Mortgage  Loan.  With  respect  to each
Assigned  Mortgage  Loan,  the related  Mortgage  Note and the  Mortgage are not
assigned or pledged,  and the Seller has good and  marketable  title thereto and
has full right and authority to transfer and sell the Assigned  Mortgage Loan to
the Purchaser.  The Seller is transferring  the Assigned  Mortgage Loan free and
clear  of any and all  encumbrances,  liens,  pledges,  equities,  participation
interests,  claims,  agreements with other parties to sell or otherwise transfer
the  Assigned  Mortgage  Loan,  charges  or  security  interests  of any  nature
encumbering such Assigned Mortgage Loan;

     (m) With respect to each Assigned  Mortgage Loan, the terms of the Mortgage
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 the Purchaser and maintain the lien priority of the
Mortgage and which has been  delivered to the  Purchaser  or its  designee.  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 related  Mortgage  Loan  Schedule.  No  instrument  of waiver,
alteration  or  modification  has  been  executed,  and 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 the Purchaser or
its designee and the terms of which are  reflected on the related  Mortgage Loan
Schedule;

     (n) The Seller has not dealt with any broker,  investment banker,  agent or
other Person (other than the Purchaser and Banc of America  Securities  LLC) who
may be entitled to any commission or compensation in connection with the sale of
the Assigned Mortgage Loans;

     (o) No  Assigned  Mortgage  Loan is a High Cost Loan or  Covered  Loan,  as
applicable (as such terms are defined in S&P's LEVELS(R) Glossary,  which is now
Version 5.7 Revised,  Appendix E) and no Assigned Mortgage Loan originated on or
after  October 1, 2002  through  March 6, 2003 is governed  by the Georgia  Fair
Lending Act;

     (p) The hazard  insurance  policy on each  Assigned  Mortgage Loan has been
validly  issued and is in full force and  effect,  and will be in full force and

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effect and inure to the benefit of the Purchaser  upon the  consummation  of the
transactions contemplated by this Agreement;

     (q) With respect to each Assigned Mortgage Loan, each Mortgage  evidences a
valid, subsisting, enforceable and perfected first lien on the related Mortgaged
Property (including all improvements on the Mortgaged Property). The lien of the
Mortgage  is  subject  only to:  (1) liens of current  real  property  taxes and
assessments not yet due and payable and, if the related Mortgaged  Property is a
condominium  unit,  any  lien for  common  charges  permitted  by  statute,  (2)
covenants,  conditions  and  restrictions,  rights of way,  easements  and other
matters of public record as of the date of recording of such Mortgage acceptable
to mortgage  lending  institutions  in the area in which the  related  Mortgaged
Property is located and specifically referred to in the lender's title insurance
policy or  attorney's  opinion of title and  abstract of title  delivered to the
originator  of such  Mortgage  Loan,  and (3) such  other  matters to which like
properties are commonly subject which do not,  individually or in the aggregate,
materially  interfere with the benefits of the security  intended to be provided
by the Mortgage. Any security agreement, chattel mortgage or equivalent document
related to, and  delivered to the Trustee in  connection  with, a Mortgage  Loan
establishes  a valid,  subsisting  and  enforceable  first lien on the  property
described  therein and the Seller has,  and the  Purchaser  will have,  the full
right to sell and assign the same to the Trustee;

     (r) With respect to any Assigned Mortgage Loan covered by a title insurance
policy,  the  originator is the sole insured of such mortgagee  title  insurance
policy,  such mortgagee title  insurance  policy is in full force and effect and
will  inure  to the  benefit  of the  Purchaser  upon  the  consummation  of the
transactions contemplated by this Agreement, no claims have been made under such
mortgagee  title insurance  policy and no prior holder of the related  Mortgage,
including the Seller,  has done, by act or omission,  anything that would impair
the coverage of such mortgagee title insurance policy; and

     (s) With respect to each Assigned Mortgage Loan, 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.

     Notwithstanding the foregoing, with respect to the Assigned Mortgage Loans,
no  representations or warranties are made by the Seller as to the environmental
condition of any related Mortgaged Property; the absence,  presence or effect of
hazardous wastes or hazardous substances on any related Mortgaged Property;  any
casualty  resulting from the presence or effect of hazardous wastes or hazardous
substances on, near or emanating from any related Mortgaged Property; the impact
on  Certificateholders  of  any  environmental  condition  or  presence  of  any
hazardous substance on or near any related Mortgaged Property; or the compliance
of any related Mortgaged Property with any environmental laws, nor is any agent,
Person or entity otherwise affiliated with the Seller authorized or able to make
any such  representation,  warranty or assumption  of liability  relative to any
related Mortgaged  Property.  In addition,  no representations or warranties are
made by the  Seller  with  respect  to the  absence  or  effect  of fraud in the
origination of any Assigned Mortgage Loan.

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     The Seller hereby agrees that any cure of a breach of such  representations
and  warranties  shall be in  accordance  with  the  terms  of the  Pooling  and
Servicing Agreement.

     4. Representations and Warranties as to the BANA Mortgage Loans. The Seller
hereby  represents  and  warrants  to the  Purchaser  with  respect  to the BANA
Mortgage  Loans or each BANA  Mortgage  Loan, as the case may be, as of the date
hereof or such other date set forth herein that as of the Closing Date:

     (a) The information set forth in the mortgage loan schedule attached hereto
as Exhibit II (the "BANA  Mortgage  Loan  Schedule")  is true and correct in all
material respects;

     (b) There are no delinquent taxes, ground rents,  governmental assessments,
insurance premiums,  leasehold payments, including assessments payable in future
installments or other  outstanding  charges,  affecting the lien priority of the
related Mortgaged Property (a "BANA Mortgaged Property");

     (c) The terms of the BANA Mortgage Notes and the related Mortgages (each, a
"BANA  Mortgage")  have not been  impaired,  waived,  altered or modified in any
respect,  except by  written  instruments,  recorded  in the  applicable  public
recording  office  if  necessary  to  maintain  the  lien  priority  of the BANA
Mortgage,  and which have been delivered to the custodian;  the substance of any
such waiver,  alteration or modification  has been approved by the insurer under
the primary insurance policy, if any, the title insurer,  to the extent required
by the related policy,  and is reflected on the BANA Mortgage Loan Schedule.  No
instrument  of waiver,  alteration or  modification  has been  executed,  and no
mortgagor of a BANA Mortgage Loan (a "BANA  Mortgagor")  has been  released,  in
whole or in part, except in connection with an assumption  agreement approved by
the insurer  under the Primary  Mortgage  Insurance  Policy,  if any,  the title
insurer,  to the extent required by the policy,  and which assumption  agreement
has been delivered to the Trustee;

     (d) The BANA Mortgage  Notes and the BANA  Mortgages are not subject to any
right of rescission,  set-off, counterclaim or defense, including the defense of
usury, nor will the operation of any of the terms of the BANA Mortgage Notes and
the BANA Mortgages,  or the exercise of any right thereunder,  render either the
BANA Mortgage Notes or the BANA Mortgages unenforceable, in whole or in part, or
subject to any right of rescission,  set-off, counterclaim or defense, including
the defense of usury and no such right of rescission,  set-off,  counterclaim or
defense has been asserted with respect thereto;

     (e) All  buildings  upon each BANA  Mortgaged  Property  are  insured by an
insurer generally  acceptable to prudent mortgage lending  institutions  against
loss by fire,  hazards  of  extended  coverage  and such  other  hazards  as are
customary in the area the related BANA Mortgaged  Property is located,  pursuant
to insurance  policies  conforming to the  requirements  of Customary  Servicing
Procedures and the Pooling and Servicing Agreement.  All such insurance policies
contain a standard  mortgagee  clause naming the originator of the BANA Mortgage
Loan, its successors and assigns as mortgagee and all premiums thereon have been
paid. If the BANA Mortgaged  Property is in an area identified on a flood hazard
map or flood  insurance  rate map  issued 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

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guidelines  of the Federal  Insurance  Administration  is in effect which policy
conforms to the requirements of FNMA or FHLMC.  The BANA Mortgage  obligates the
mortgagor  thereunder to maintain all such insurance at the mortgagor's cost and
expense,  and on the mortgagor's  failure to do so, authorizes the holder of the
BANA Mortgage to maintain such insurance at mortgagor's  cost and expense and to
seek reimbursement therefor from the mortgagor;

     (f) Any and all requirements of any federal,  state or local law including,
without limitation,  usury, truth in lending, real estate settlement procedures,
consumer credit protections,  all applicable predatory and abusive lending laws,
equal credit  opportunity or disclosure  laws  applicable to the origination and
servicing of BANA Mortgage Loans have been complied with;

     (g)  No  BANA  Mortgage  has  been  satisfied,  canceled,  subordinated  or
rescinded,  in whole or in part (other than as to Principal  Prepayments in full
which may have been received prior to the Closing  Date),  and no BANA Mortgaged
Property has been released from the lien of the related BANA Mortgage,  in whole
or in part,  nor has any  instrument  been  executed  that would effect any such
satisfaction, cancellation, subordination, rescission or release;

     (h) The BANA Mortgage is a valid,  existing and  enforceable  first lien on
the BANA Mortgaged  Property,  including all  improvements on the BANA Mortgaged
Property  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 being  acceptable to mortgage  lending  institutions  generally and
specifically referred to in the lender's title insurance policy delivered to the
originator  of the BANA  Mortgage  Loan and which do not  adversely  affect  the
Appraised  Value  of the BANA  Mortgaged  Property,  (C) if the  BANA  Mortgaged
Property  consists  of  Cooperative  Stock,  any  lien  for  amounts  due to the
cooperative housing corporation for unpaid assessments or charges or any lien of
any  assignment of rents or  maintenance  expenses  secured by the real property
owned by the  cooperative  housing  corporation,  and (D) 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 BANA  Mortgage or the
use,  enjoyment,  value or marketability of the related BANA Mortgaged Property.
Any security  agreement,  chattel mortgage or equivalent document related to and
delivered in connection  with the BANA Mortgage Loan  establishes  and creates a
valid,  existing and enforceable first lien and first priority security interest
on the property  described therein and the Seller has the full right to sell and
assign the same to the Purchaser;

     (i) The BANA  Mortgage  Note and the related BANA  Mortgage are genuine and
each  is  the  legal,  valid  and  binding  obligation  of  the  maker  thereof,
enforceable in accordance with its terms except as enforceability may be limited
by  (A)   bankruptcy,   insolvency,   liquidation,   receivership,   moratorium,
reorganization  or other similar laws affecting the enforcement of the rights of
creditors and (B) general principles of equity, whether enforcement is sought in
a proceeding in equity or at law;

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     (j) All parties to the BANA  Mortgage  Note and the BANA Mortgage had legal
capacity  to enter into the BANA  Mortgage  Loan and to execute  and deliver the
BANA  Mortgage  Note and the BANA  Mortgage,  and the BANA Mortgage Note and the
BANA Mortgage have been duly and properly executed by such parties;

     (k) The proceeds of the BANA Mortgage Loan have been fully  disbursed to or
for the account of the related BANA Mortgagor and there is no obligation for the
mortgagee to advance additional funds thereunder and any and all requirements as
to completion of any on-site or off-site improvements and as to disbursements of
any escrow funds therefor have been complied with. All costs,  fees and expenses
incurred in making or closing the BANA  Mortgage  Loan and the  recording of the
BANA Mortgage have been paid, and the Mortgagor is not entitled to any refund of
any amounts paid or due to the  mortgagee  pursuant to the BANA Mortgage Note or
BANA Mortgage;

     (l) To the best of the Seller's  knowledge,  all parties which have had any
interest in the BANA Mortgage Loan, whether as mortgagee,  assignee,  pledgee or
otherwise,  are (or,  during the period in which they held and  disposed of such
interest,  were) in compliance with any and all applicable  "doing business" and
licensing  requirements  of the laws of the  state  wherein  the BANA  Mortgaged
Property is located;

     (m) Either (A) the BANA Mortgage Loan is covered by an ALTA lender's  title
insurance  policy,  acceptable  to  FNMA or  FHLMC,  issued  by a title  insurer
acceptable  to FNMA or FHLMC and  qualified  to do business in the  jurisdiction
where  the  BANA  Mortgaged  Property  is  located,  insuring  (subject  to  the
exceptions  contained  in  (h)(A),  (B),  (C) and (D)  above)  the  Seller,  its
successors and assigns as to the first priority lien of the BANA Mortgage in the
original principal amount of the BANA Mortgage Loan, (B) a title search has been
done showing no lien (other than the  exceptions  contained in (h)(A),  (B), (C)
and (D)  above) on the BANA  Mortgaged  Property  senior to the lien of the BANA
Mortgage  or  (C) in the  case  of any  BANA  Mortgage  Loan  secured  by a BANA
Mortgaged  Property located in a jurisdiction  where such policies are generally
not available,  an opinion of counsel of the type  customarily  rendered in such
jurisdiction  in lieu of title  insurance  is  instead  received.  For each BANA
Mortgage  Loan  covered by a title  insurance  policy (x) the Seller 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 full  force and
effect upon the consummation of the transactions  contemplated by this Agreement
and (y) no claims have been made under such lender's title insurance policy, and
the Seller has not done,  by act or  omission,  anything  which would impair the
coverage of such lender's title insurance policy;

     (n)  There is no  default,  breach,  violation  or  event  of  acceleration
existing  under the BANA  Mortgage or the BANA Mortgage Note and no event which,
with the passage of time or with notice and the  expiration of any grace or cure
period, would constitute a default,  breach, violation or event of acceleration,
and the  Seller  has not  waived  any  default,  breach,  violation  or event of
acceleration;

     (o) As of the date of origination of the BANA Mortgage Loan,  there were no
mechanics' or similar liens or claims filed for work,  labor or material (and no
rights are  outstanding  that under law could give rise to such lien)  affecting

                                       8
<PAGE>

the  relating  BANA  Mortgaged  Property  which are or may be liens prior to, or
equal or coordinate with, the lien of the related BANA Mortgage;

     (p) All  improvements  which were  considered in determining  the Appraised
Value of the related BANA  Mortgaged  Property lay wholly within the  boundaries
and  building  restriction  lines  of  the  BANA  Mortgaged  Property,   and  no
improvements on adjoining properties encroach upon the BANA Mortgaged Property;

     (q)  The  BANA  Mortgage  Loan  was   originated  by  a  savings  and  loan
association,  savings bank, commercial bank, credit union, insurance company, or
similar  institution  which is  supervised  and  examined  by a federal or state
authority,  or by a  mortgagee  approved by the  Secretary  of Housing and Urban
Development pursuant to sections 203 and 211 of the National Housing Act;

     (r) Principal  payments on the BANA  Mortgage  Loan  commenced no more than
sixty days after the proceeds of the BANA  Mortgaged  Loan were  disbursed.  The
BANA Mortgage  Loans are  fixed-rate  mortgage  loans having an original term to
maturity  of not more than 30 years,  with  interest  payable  in arrears on the
first day of the month. Each BANA Mortgage Note requires a monthly payment which
is sufficient to fully amortize the original principal balance over the original
term thereof and to pay interest at the related Mortgage  Interest Rate. No BANA
Mortgage Note permits negative amortization;

     (s)  There  is  no  proceeding  pending  or,  to  the  Seller's  knowledge,
threatened for the total or partial  condemnation of the BANA Mortgaged Property
and such property is in good repair and is undamaged by waste, fire,  earthquake
or earth movement,  windstorm, flood, tornado or other casualty, so as to affect
adversely  the value of the BANA  Mortgaged  Property as  security  for the BANA
Mortgage Loan or the use for which the premises were intended;

     (t) The BANA Mortgage and related BANA Mortgage Note contain  customary and
enforceable  provisions  such as to render the rights and remedies of the holder
thereof adequate for the realization  against the BANA Mortgaged Property of the
benefits of the security provided  thereby,  including (A) in the case of a BANA
Mortgage  designated as a deed of trust, by trustee's sale, and (B) otherwise by
judicial foreclosure. To the best of the Seller's knowledge,  following the date
of origination  of the BANA Mortgage  Loan, the related BANA Mortgaged  Property
has not been subject to any bankruptcy proceeding or foreclosure  proceeding and
the  related  BANA  Mortgagor  has not filed  for  protection  under  applicable
bankruptcy  laws. There is no homestead or other exemption or right available to
the BANA  Mortgagor or any other person which would  interfere with the right to
sell the BANA  Mortgaged  Property at a trustee's sale or the right to foreclose
the BANA Mortgage;

     (u) Other than any Borrowers  Protection  Plan(R)  addendum to the Mortgage
Note of a BPP Mortgage Loan, with respect to the BANA Mortgage Loans,  each BANA
Mortgage Note and BANA Mortgage are on forms acceptable to FNMA or FHLMC;

     (v) With respect to the BANA Mortgage Loans,  the BANA Mortgage Note is not
and has not been secured by any collateral  except the lien of the corresponding

                                       9
<PAGE>

BANA Mortgage on the BANA  Mortgaged  Property and the security  interest of any
applicable security agreement or chattel mortgage referred to in (h) above;

     (w) Each  appraisal  of the related  BANA  Mortgaged  Property is in a form
acceptable to FNMA or FHLMC and such appraisal complies with the requirements of
FIRREA, and was made and signed, prior to the approval of the BANA Mortgage Loan
application, by an appraiser who met the qualifications of Fannie Mae or Freddie
Mac and satisfied this requirements of Title XI of FIRREA;

     (x) In the event the BANA Mortgage  constitutes a deed of trust, a trustee,
duly  qualified  under  applicable  law to  serve as  such,  has  been  properly
designated  and currently so serves,  and no fees or expenses are or will become
payable  by the  Trustee  to the  trustee  under  the deed of  trust,  except in
connection with a trustee's sale after default by the Mortgagor;

     (y) No BANA Mortgage  Loan is a graduated  payment  mortgage  loan, no BANA
Mortgage Loan has a shared  appreciation or other contingent  interest  feature,
and no more  than  0.53% of the BANA  Mortgage  Loans  (as a  percentage  of the
aggregate Stated Principal  Balance of the BANA Mortgage Loans as of the Cut-off
Date) contains any "buydown" provision;

     (z) The BANA  Mortgagor has received all disclosure  materials  required by
applicable  law with respect to the making of mortgage loans of the same type as
the BANA Mortgage Loan and  rescission  materials  required by applicable law if
the BANA Mortgage Loan is a refinanced mortgage loan, i.e., the proceeds of such
BANA Mortgage Loan were not used to purchase the related Mortgaged Property;

     (aa) Each Primary Mortgage Insurance Policy to which any BANA Mortgage Loan
is  subject  will be issued by an  insurer  acceptable  to FNMA or FHLMC,  which
insures that portion of the BANA  Mortgage  Loan in excess of the portion of the
Appraised Value of the BANA Mortgaged  Property  required by FNMA or FHLMC.  All
provisions  of such Primary  Mortgage  Insurance  Policy have been and are being
complied  with,  such policy is in full force and effect,  and all  premiums due
thereunder  have  been  paid.  Any BANA  Mortgage  subject  to any such  Primary
Mortgage  Insurance Policy  obligates the Mortgagor  thereunder to maintain such
insurance and to pay all premiums and charges in  connection  therewith at least
until  Loan-to-Value  Ratio of such BANA  Mortgage  Loan is reduced to less than
80%. The Mortgage  Interest Rate for the BANA Mortgage Loan does not include any
such insurance premium;

     (bb) To the best of the Seller's knowledge as of the date of origination of
the BANA Mortgage  Loan, (A) the BANA  Mortgaged  Property is lawfully  occupied
under applicable law, (B) all inspections, licenses and certificates required to
be made or issued with  respect to all occupied  portions of the BANA  Mortgaged
Property 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  and (C) no improvement  located on or part of the BANA
Mortgaged Property is in violation of any zoning law or regulation;

     (cc) With respect to each BANA  Mortgage  Loan,  the related  Assignment of
Mortgage (except with respect to any BANA Mortgage that has been recorded in the

                                       10
<PAGE>

name of MERS or its  designee)  is in  recordable  form  and is  acceptable  for
recording under the laws of the jurisdiction in which the related BANA Mortgaged
Property is located;

     (dd) All  payments  required to be made prior to the Cut-off  Date for such
BANA  Mortgage Loan under the terms of the BANA Mortgage Note have been made, no
more than 0.13% of the BANA  Mortgage  Loans (as a percentage  of the  aggregate
Stated Principal  Balance of the BANA Mortgage Loans as of the Cut-off Date) has
been more than 30 days  delinquent  more than once in the  twelve  month  period
immediately  prior to the Cut-off Date and no BANA  Mortgage  Loan has been more
than 30 days delinquent  more than twice in the twelve month period  immediately
prior to the Cut-off Date;

     (ee) With respect to each BANA Mortgage  Loan,  the Seller is in possession
of a  complete  BANA  Mortgage  File  except for the  documents  which have been
delivered to the Trustee or which have been  submitted for recording and not yet
returned;

     (ff) Except with respect to each BANA  Mortgage  Loan for which the related
Mortgage is recorded in the name of MERS,  immediately prior to the transfer and
assignment  contemplated  herein,  the  Seller  was the sole owner of record and
holder of the BANA Mortgage Loan. With respect to the BANA Mortgage  Loans,  the
BANA  Mortgage  Loans were not  assigned or pledged by the Seller and the Seller
had good and marketable title thereto, and the Seller had full right to transfer
and  sell  the  BANA  Mortgage  Loans  to the  Trustee  free  and  clear  of any
encumbrance,  participation  interest,  lien, equity,  pledge, claim or security
interest  and  had  full  right  and   authority   subject  to  no  interest  or
participation  in,  or  agreement  with any  other  party  to sell or  otherwise
transfer the BANA Mortgage Loans;

     (gg) With respect to the BANA  Mortgage  Loans,  any future  advances  made
prior to the Cut-off Date have been consolidated with the outstanding  principal
amount  secured by the BANA  Mortgage,  and the  secured  principal  amount,  as
consolidated,  bears a single  interest  rate and single  repayment  term.  With
respect  to each BANA  Mortgage  Loan,  the lien of the  related  BANA  Mortgage
securing the consolidated  principal amount is expressly insured as having first
lien priority by a title insurance policy, an endorsement to the policy insuring
the mortgagee's  consolidated  interest or by other title evidence acceptable to
FNMA and FHLMC. The  consolidated  principal amount does not exceed the original
principal amount of the BANA Mortgage Loan;

     (hh) The  BANA  Mortgage  Loan  was  underwritten  in  accordance  with the
applicable  underwriting  guidelines in effect at the time of  origination  with
exceptions thereto exercised in a reasonable manner;

     (ii) If the BANA Mortgage Loan is secured by a long-term residential lease,
(1) the lessor under the lease holds a fee simple  interest in the land; (2) the
terms of such lease expressly permit the mortgaging of the leasehold estate, the
assignment of the lease without the lessor's  consent and the acquisition by the
holder of the BANA  Mortgage  of the rights of the lessee  upon  foreclosure  or
assignment  in lieu of  foreclosure  or provide the holder of the BANA  Mortgage
with substantially  similar protections;  (3) the terms of such lease do not (a)
allow the  termination  thereof upon the lessee's  default without the holder of
the BANA Mortgage being entitled to receive  written notice of, and  opportunity

                                       11
<PAGE>

to cure,  such default,  (b) allow the  termination of the lease in the event of
damage or destruction as long as the BANA Mortgage is in existence, (c) prohibit
the holder of the BANA Mortgage  from being  insured (or  receiving  proceeds of
insurance) under the hazard  insurance  policy or policies  relating to the BANA
Mortgaged   Property  or  (d)  permit  any  increase  in  the  rent  other  than
pre-established  increases set forth in the lease; (4) the original term of such
lease in not less than 15 years;  (5) the term of such lease does not  terminate
earlier than five years after the maturity date of the BANA Mortgage  Note;  and
(6) the BANA Mortgaged Property is located in a jurisdiction in which the use of
leasehold  estates in  transferring  ownership in  residential  properties  is a
widely accepted practice;

     (jj) With respect to each BANA Mortgage  Loan,  the related BANA  Mortgaged
Property is located in the state  identified  in the BANA Mortgage Loan Schedule
and  consists  of a  parcel  of real  property  with a  detached  single  family
residence erected thereon, or a two- to four-family  dwelling,  or an individual
condominium  unit, or an individual unit in a planned unit  development,  or, in
the  case of BANA  Mortgage  Loans  secured  by  Cooperative  Stock,  leases  or
occupancy agreements; provided, however, that any condominium project or planned
unit development generally conforms with the applicable  underwriting guidelines
regarding  such  dwellings,  and no  residence or dwelling is a mobile home or a
manufactured dwelling;

     (kk) The Seller used no adverse selection  procedures in selecting the BANA
Mortgage Loan for inclusion in the Trust Estate;

     (ll) Each BANA Mortgage Loan is a "qualified  mortgage"  within the meaning
of Section 860G(a)(3) of the Code and Treas. Reg ss. 1.860G-2;

     (mm) With respect to each BANA  Mortgage  where a lost note  affidavit  has
been  delivered to the Trustee in place of the related BANA Mortgage  Note,  the
related BANA Mortgage Note is no longer in existence;

     (nn) No BANA  Mortgage  Loan is a "high  cost"  loan as  defined  under any
federal, state or local law applicable to such BANA Mortgage Loan at the time of
its origination; and

     (oo) No BANA  Mortgage  Loan  is a High  Cost  Loan  or  Covered  Loan,  as
applicable  (as such  terms are  defined  in the then  current  S&P's  LEVELS(R)
Glossary,  which is now Version 5.7  Revised,  Appendix E) and no BANA  Mortgage
Loan originated on or after October 1, 2002 through March 6, 2003 is governed by
the Georgia Fair Lending Act.

     Notwithstanding the foregoing, no representations or warranties are made by
the Seller as to the environmental condition of any BANA Mortgaged Property; the
absence,  presence or effect of hazardous wastes or hazardous  substances on any
BANA Mortgaged  Property;  any casualty resulting from the presence or effect of
hazardous  wastes or hazardous  substances  on, near or emanating  from any BANA
Mortgaged  Property;  the  impact  on  Certificateholders  of any  environmental
condition or presence of any hazardous  substance on or near any BANA  Mortgaged
Property;   or  the  compliance  of  any  BANA   Mortgaged   Property  with  any
environmental laws, nor is any agent, Person or entity otherwise affiliated with

                                       12
<PAGE>

the  Seller  authorized  or able to make any such  representation,  warranty  or
assumption of liability relative to any BANA Mortgaged Property. In addition, no
representations or warranties are made by the Seller with respect to the absence
or effect of fraud in the origination of any BANA Mortgage Loan.

     It is understood  and agreed that the  representations  and  warranties set
forth in this Section shall  survive  delivery of the  respective  BANA Mortgage
Files to the  Trustee or the  Custodian  and shall  inure to the  benefit of the
Trustee, notwithstanding any restrictive or qualified endorsement or assignment.

     5. No Broker's  Fees.  The Seller  hereby  represents  and  warrants to the
Purchaser  that the  Seller has not dealt with any  broker,  investment  banker,
agent or other Person (other than the  Purchaser and Banc of America  Securities
LLC) who may be entitled to any commission or  compensation  in connection  with
the sale of the Mortgage Loans.

     6. Repurchase or Substitution. Upon discovery by the Seller, the Purchaser,
the Trustee or any assignee,  transferee or designee of the Trustee of a missing
or  defective  document in the Mortgage  File,  as provided in Section 2 of this
Agreement  or the  Pooling  and  Servicing  Agreement  or a breach of any of the
representations  and  warranties  set forth in  Section 3 and  Section 4 (to the
extent provided  therein) that materially and adversely affects the value of any
Mortgage  Loan or the  interest  therein  of the  Purchaser  or the  Purchaser's
assignee,  the party discovering such breach shall give prompt written notice to
the  others.  Within 90 days after the  earlier  of the  Seller's  discovery  or
receipt of  notification  of such missing or  defective  document or breach of a
representation and warranty (notwithstanding the Seller's lack of knowledge with
respect to the substance of such representation and warranty),  the Seller shall
promptly cure such breach in all material respects, or in the event such missing
or defective document or breach cannot be cured, the Seller shall repurchase the
affected Mortgage Loan. Alternatively, the Seller hereby agrees (notwithstanding
the  Seller's  lack  of  knowledge   with  respect  to  the  substance  of  such
representation  and warranty),  if so requested by the Purchaser,  to substitute
for any such Mortgage Loan, a new mortgage loan having characteristics such that
the  representations  and  warranties  referred  to in  Section 3 (to the extent
provided  therein)  or  Section  4, as  applicable,  above  would  not have been
incorrect  (except for  representations  and warranties as to the correctness of
the related Mortgage Loan Schedule) had such substitute mortgage loan originally
been a Mortgage Loan. The Seller further agrees that a substituted mortgage loan
will have on the date of  substitution  the criteria set forth in the definition
of "Substitute  Mortgage  Loan" in the Pooling and Servicing  Agreement and will
comply  with the  substitution  provisions  of Section  2.02 of the  Pooling and
Servicing  Agreement.  The Seller  shall remit to the  Purchaser,  in cash,  the
difference  between  the unpaid  principal  balance of the  Mortgage  Loan to be
substituted and the unpaid principal balance of the substitute mortgage loan.

     If the breach of the  representation  set forth in  clauses  (k) and (o) of
Section  3 herein or in  clauses  (f) and (oo) of  Section 4 herein  occurs as a
result of a violation of an  applicable  predatory  or abusive  lending law, the
Seller agrees to reimburse  the Purchaser for all costs and damages  incurred by
the  Purchaser as a result of the  violation of such law;  provided  that,  with
respect to any Assigned Mortgage Loan, the Seller has no obligation to reimburse
the Purchaser for any such costs and damages that are reimbursed by SunTrust.

                                       13
<PAGE>
     The Purchaser  acknowledges and agrees that it shall have no rights against
the Seller under this Section 6, except with respect to the preceding paragraph,
if the breach of any  representation  or warranty also constitutes a breach of a
representation  or warranty made by SunTrust under the Transfer  Agreement,  but
shall instead enforce its rights against SunTrust.

     7. Underwriting; BPP Mortgage Loans.
        ---------------------------------

     (a) The Seller hereby agrees to furnish any and all information, documents,
certificates, letters or opinions with respect to the mortgage loans, reasonably
requested by the Purchaser in order to perform any of its obligations or satisfy
any of the  conditions on its part to be performed or satisfied  pursuant to the
Underwriting  Agreement  or the  Purchase  Agreement  at or prior to the Closing
Date.

     (b) With  respect to any BPP Mortgage  Loan,  the Seller  hereby  agrees to
remit to the Master Servicer (a) the amount of any principal and interest due by
a Mortgagor  and  cancelled  for any month  pursuant to the terms of the related
Mortgage Note (the "Monthly  Covered Amount") upon the disability or involuntary
unemployment of the related  Mortgagor or (b) the outstanding  principal balance
of the Mortgage Loan canceled pursuant to the terms of the related Mortgage Note
together with accrued interest at the Mortgage Interest Rate minus the Servicing
Fee Rate to the date of  cancellation  (the  "Total  Covered  Amount")  upon the
accidental death of the related Mortgagor. Any Monthly Covered Amount payable by
the Seller pursuant to this Section 7(b) shall be deposited by the Seller in the
Servicer  Custodial  Account on or prior to, in the case of the Monthly  Covered
Amount,  the  Remittance  Date  relating to the  Distribution  Date  immediately
following the Due Date as to which such Monthly  Covered  Amount relates and, in
the  case of a  Total  Covered  Amount,  the  Remittance  Date  relating  to the
Distribution  Date in the month following the month in which the cancellation to
which such Total Covered Amount relates occurs.

     (c) For so long as the  Securities  Administrator  is  required to file any
report with the Commission pursuant to Section 3.22 of the Pooling and Servicing
Agreement,  the Seller shall  furnish to the  Securities  Administrator,  on the
first Business Day of each calendar month, the  "significance  estimate" of each
Yield  Maintenance   Agreement  calculated  in  accordance  with  Item  1115  of
Regulation AB as of the last Business Day of the immediately  preceding calendar
month.

     8.  Costs.  The  Purchaser  shall  pay  all  expenses   incidental  to  the
performance of its obligations under the Underwriting Agreement and the Purchase
Agreement, including without limitation (i) any recording fees or fees for title
policy endorsements and continuations,  (ii) the expenses of preparing, printing
and reproducing  the Prospectus,  the Prospectus  Supplement,  the  Underwriting
Agreement, the Private Placement Memorandum, the Purchase Agreement, the Pooling
and Servicing  Agreement and the  Certificates  and (iii) the cost of delivering
the  Certificates  to the  offices  of or at the  direction  of Banc of  America
Securities LLC insured to the satisfaction of Banc of America Securities LLC.

     9. Notices. All demands,  notices and communications  hereunder shall be in
writing,  shall  be  effective  only  upon  receipt  and  shall,  if sent to the
Purchaser, be addressed to it at Banc of America Funding Corporation,  214 North

                                       14
<PAGE>

Tryon Street, Charlotte, North Carolina, 28255, Attention:  General Counsel with
a copy to the Chief Financial Officer, or if sent to the Seller, be addressed to
it at Bank of America, National Association,  100 North Tryon Street, Charlotte,
North Carolina, 28255, Attention: General Counsel with a copy to the Treasurer.

     10.  Trustee  Assignee.  The  Seller  acknowledges  the  assignment  of the
Purchaser's  rights hereunder to the Trustee on behalf of the Trust and that the
representations,  warranties and agreements made by the Seller in this Agreement
may be enforced by the Trustee, on behalf of the Trust, against the Seller.

     11. Recharacterization. The parties to this Agreement intend the conveyance
by the Seller to the Purchaser of all of its right, title and interest in and to
the Mortgage Loans and all Mortgage Files,  including all interest and principal
received or  receivable  by the Seller on or with respect to the Mortgage  Loans
after the  Cut-off  Date (and  including  scheduled  payments of  principal  and
interest  due after the Cut-off Date but received by the Seller on or before the
Cut-off Date and Principal  Prepayments received or applied on the Cut-off Date,
but not including  payments of principal and interest due on the Mortgage  Loans
on or before the Cut-off Date),  together with all of the Seller's rights, title
and interest in and to all  Mortgaged  Property and any related  title,  hazard,
primary mortgage, mortgage pool policy or other insurance policies including all
income,  payments,  products and proceeds of any of the  foregoing,  pursuant to
this Agreement to constitute a purchase and sale and not a loan. Notwithstanding
the  foregoing,  to the extent that such  conveyance is held not to constitute a
sale under applicable law, it is intended that this Agreement shall constitute a
security  agreement under  applicable law and that the Seller shall be deemed to
have granted to the Purchaser a first priority  security  interest in all of the
Seller's right, title and interest in and to the Mortgage Loans.

     12.  Miscellaneous.  This  Agreement  shall be governed by and construed in
accordance with the laws of the State of New York without regard to the conflict
of law  provisions.  Neither this  Agreement nor any term hereof may be changed,
waived, discharged or terminated except by a writing signed by the party against
whom  enforcement  of such change,  waiver,  discharge or termination is sought.
This  Agreement  may not be changed in any  manner  which  would have a material
adverse effect on Holders of  Certificates  without the prior written consent of
the Trustee.  The Trustee shall be protected in consenting to any such change to
the same extent  provided in Article IX of the Pooling and Servicing  Agreement.
This Agreement may be signed in any number of counterparts,  each of which shall
be deemed an original,  which taken together  shall  constitute one and the same
instrument.  This  Agreement  shall  bind  and  inure to the  benefit  of and be
enforceable by the Purchaser and the Seller and their respective  successors and
assigns.

                                       15
<PAGE>

     IN WITNESS WHEREOF, the Purchaser and the Seller have caused this Agreement
to be duly  executed by their  respective  officers as of the day and year first
above written.

                                           BANC OF AMERICA FUNDING CORPORATION

                                           By:      /s/ Scott Evans
                                              ---------------------------------
                                           Name:    Scott Evans
                                           Title:   Senior Vice President

                                           BANK OF AMERICA, NATIONAL ASSOCIATION

                                           By:      /s/ Bruce W. Good
                                              ---------------------------------
                                           Name:    Bruce W. Good
                                           Title:   Principal

      [Signature Page to the BAFC 2006-7 Mortgage Loan Purchase Agreement]

<PAGE>
                                    EXHIBIT I

                         SUNTRUST MORTGAGE LOAN SCHEDULE

      (See the Free Writing Prospectus filed and accepted by the Securities
       and Exchange Commission on October 27, 2006, with a filing date of
           October 30, 2006 and accession number 0000950136-06-008947)

                                      I-1
<PAGE>
                                   EXHIBIT II

                           BANA MORTGAGE LOAN SCHEDULE

      (See the Free Writing Prospectus filed and accepted by the Securities
       and Exchange Commission on October 27, 2006, with a filing date of
           October 30, 2006 and accession number 0000950136-06-008947)

                                      II-1<PAGE>

                                                                    Exhibit 10.1

                                                               ----------------
                                                              | EXECUTION COPY |
                                                               ----------------

================================================================================

                               SERVICING AGREEMENT

                                     between

                      BANC OF AMERICA FUNDING CORPORATION,

                                  as Depositor,

                                       and

                     BANK OF AMERICA, NATIONAL ASSOCIATION,

                                  as Servicer,

                             Dated October 30, 2006

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

                       Mortgage Pass-Through Certificates

                                  Series 2006-7

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                      Page
                                                                                                      ----
<S> <C>
ARTICLE I DEFINITIONS...................................................................................1

Section 1.01.       Defined Terms.......................................................................1

ARTICLE II ADMINISTRATION AND SERVICING OF MORTGAGE LOANS...............................................4

Section 2.01.       Servicer to Service Mortgage Loans..................................................4
Section 2.02.       Subservicing; Enforcement of the Obligations of Servicers...........................5
Section 2.03.       Fidelity Bond; Errors and Omissions Insurance.......................................6
Section 2.04.       Access to Certain Documentation.....................................................6
Section 2.05.       Maintenance of Primary Mortgage Insurance Policy; Claims; Collections
                      of BPP Mortgage Loan Payments.....................................................7
Section 2.06.       Master Servicer to Act as Servicer..................................................8
Section 2.07.       Collection of Mortgage Loan Payments and BANA Custodial Account.....................8
Section 2.08.       Collection of Taxes, Assessments and Similar Items; Escrow Account.................11
Section 2.09.       Access to Certain Documentation and Information Regarding the
                      Mortgage Loans...................................................................12
Section 2.10.       Permitted Withdrawals from the BANA Custodial Account..............................12
Section 2.11.       Maintenance of Hazard Insurance....................................................13
Section 2.12.       Enforcement of Due-On-Sale Clauses; Assumption Agreements..........................14
Section 2.13.       Realization Upon Defaulted Mortgage Loans; REO Property............................15
Section 2.14.       Trustee to Cooperate; Release of Mortgage Files....................................17
Section 2.15.       Documents, Records and Funds in Possession of the Servicer to be Held
                      for the Trustee..................................................................18
Section 2.16.       Servicing Compensation.............................................................19
Section 2.17.       Annual Statement as to Compliance..................................................19
Section 2.18.       Annual Independent Public Accountants' Servicing Statement; Financial
                      Statements; Provision of Additional Information..................................20
Section 2.19.       Advances...........................................................................21
Section 2.20.       Modifications, Waivers, Amendments and Consents....................................21
Section 2.21.       Reports to the Securities and Exchange Commission..................................23
Section 2.22.       Lost Instruments Affidavit and Indemnity...........................................24
Section 2.23.       Buy-Down Account; Application of Buy-Down Funds....................................24

ARTICLE III SERVICER'S CERTIFICATE; REMITTANCES........................................................25

Section 3.01.       Servicer's Certificate.............................................................25
Section 3.02.       Remittances........................................................................25

</TABLE>

                                      -i-

<PAGE>

<TABLE>
<CAPTION>

<S> <C>

ARTICLE IV THE SERVICER................................................................................25

Section 4.01.       Liabilities of the Servicer........................................................25
Section 4.02.       Merger or Consolidation of the Servicer............................................25
Section 4.03.       Limitation on Liability of the Servicer............................................26
Section 4.04.       Servicer Not to Resign.............................................................26
Section 4.05.       Representations, Warranties and Covenants of the Servicer..........................27
Section 4.06.       REMIC Related Covenants............................................................28

ARTICLE V DEFAULT......................................................................................28

Section 5.01.       Events of Default..................................................................28
Section 5.02.       Master Servicer to Act; Appointment of Successor...................................30

ARTICLE VI TERMINATION.................................................................................31

Section 6.01.       Termination upon Purchase by the Master Servicer or Liquidation of All
                      Mortgage Loans...................................................................31

ARTICLE VII MISCELLANEOUS PROVISIONS...................................................................31

Section 7.01.       Amendment..........................................................................31
Section 7.02.       Governing Law......................................................................32
Section 7.03.       Notices............................................................................32
Section 7.04.       Severability of Provisions.........................................................32
Section 7.05.       Assignment by the Depositor........................................................32

EXHIBITS
--------

Exhibit A                  Form of Certification of Establishment of Account..........................A-1
Exhibit B                  Form of Servicer's Certification...........................................B-1
Exhibit C-1                Form of Delinquency Report...............................................C-1-1
Exhibit C-2                Form of Monthly Remittance Advice........................................C-1-2
Exhibit C-3                Realized Loss Report.....................................................C-1-2
Exhibit D                  Contents of Servicing File.................................................D-1
Exhibit E                  Servicing Criteria to the Assessment of Compliance.........................E-1
Schedule I                 BANA Mortgage Loan Schedule................................................I-1

</TABLE>

                                      -ii-

<PAGE>

                               SERVICING AGREEMENT

     THIS  SERVICING  AGREEMENT,  dated October 30, 2006 (the  "Agreement"),  is
hereby executed by and between BANC OF AMERICA FUNDING CORPORATION, as depositor
(together with its permitted successors and assigns, the "Depositor"),  and BANK
OF AMERICA,  NATIONAL  ASSOCIATION,  as Servicer  (together  with its  permitted
successors and assigns, the "Servicer").

                          W I T N E S S E T H T H A T:
                           - - - - - - - - - - - - - -

     WHEREAS,  pursuant to the Mortgage Loan Purchase  Agreement,  dated October
30, 2006,  by and between the Depositor  and the  Servicer,  the Servicer  shall
convey the BANA Mortgage Loans on a  servicing-retained  basis to the Depositor,
which in turn  shall  convey  the BANA  Mortgage  Loans to the  Trustee  under a
pooling  and  servicing  agreement  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among U.S. Bank National  Association,  as trustee (the
"Trustee"),  the Depositor and Wells Fargo Bank,  N.A., as master  servicer (the
"Master   Servicer")   and  as   securities   administrator   (the   "Securities
Administrator");

     WHEREAS,  the Depositor desires that the Servicer service the BANA Mortgage
Loans pursuant to this Agreement, and the Servicer agrees to do so;

     WHEREAS,  the  Depositor  and the Servicer  acknowledge  and agree that the
Depositor  will  assign  all of its rights  hereunder  to the  Trustee,  and the
Trustee then shall succeed to all rights of the Depositor under this Agreement;

     WHEREAS,  the Master  Servicer  shall be  obligated  under the  Pooling and
Servicing Agreement,  among other things, to supervise the servicing of the BANA
Mortgage Loans on behalf of the Trustee, and shall have the right, under certain
circumstances,  to terminate the rights and  obligations  of the Servicer  under
this Servicing  Agreement  upon the  occurrence  and  continuance of an Event of
Default as provided herein;

     NOW, THEREFORE,  in consideration of the mutual agreements  hereinafter set
forth and for other good and valuable consideration, the receipt and adequacy of
which are hereby  acknowledged,  the Depositor and the Servicer  hereby agree as
follows:

                                   ARTICLE I

                                   DEFINITIONS

Section 1.01   Defined Terms.
               --------------

     BANA Custodial  Account:  The separate Eligible Account or Accounts created
and maintained by BANA pursuant to Section 2.07(b).

     BANA Mortgage Loans:  The mortgage loans serviced by BANA and identified as
such on the Mortgage  Loan  Schedule and which are also  identified  on the BANA
Mortgage Loan Schedule attached hereto.

                                      -1-

<PAGE>

     BANA Mortgage Loan Schedule:  The mortgage loan schedule attached hereto as
Schedule I  containing  the same  fields as are set forth on the  Mortgage  Loan
Schedule.

     Buy-Down  Account:  The separate  Eligible  Account or Accounts created and
maintained by the Servicer pursuant to Section 2.23.

     Buy-Down  Agreement:  An agreement  governing the  application  of Buy-Down
Funds with respect to a Buy-Down Mortgage Loan.

     Buy-Down  Funds:  Money advanced by a builder,  seller or other  interested
party to reduce a  Mortgagor's  monthly  payment  during the initial  years of a
Buy-Down Mortgage Loan.

     Buy-Down Mortgage Loan: Any Mortgage Loan in respect of which,  pursuant to
a  Buy-Down  Agreement,  the  monthly  interest  payments  made  by the  related
Mortgagor  will be less than the  scheduled  monthly  interest  payments on such
Mortgage Loan, with the resulting difference in interest payments being provided
from Buy-Down Funds.

     Determination  Date: As to any Distribution Date, the 16th day of the month
of the related Distribution Date or, if such 16th day is not a Business Day, the
Business Day immediately preceding such day.

     Exchange Act: The Securities Exchange Act of 1934, as amended.

     Monthly  Advance:  The  payment  required to be made by the  Servicer  with
respect to any  Distribution  Date pursuant to Section  2.19,  the amount of any
such  payment  being  equal to the  aggregate  of Monthly  Payments  (net of the
Servicing Fee) on the BANA Mortgage Loans (including any REO Property)  serviced
by the Servicer that were due on the related Due Date and not received as of the
close of business on the related  Determination  Date, less the aggregate amount
of  any  such  delinquent  payments  that  the  Servicer  has  determined  would
constitute a Nonrecoverable Advance if advanced.

     Regulation AB: Subpart 229.1100 - Asset Backed Securities  (Regulation AB),
17 C.F.R. ss.ss.229.1100-229.1123, as such may be amended from time to time, and
subject to such  clarification  and  interpretation as have been provided by the
Commission in the adopting  release  (Asset-Backed  Securities,  Securities  Act
Release No. 33-8518,  70 Fed. Reg. 1,506,  1,531 (Jan. 7, 2005)) or by the staff
of the  Commission,  or as may be provided by the  Commission  or its staff from
time to time.

     Remittance Date: As to any Distribution  Date, by 2:00 p.m. Eastern time on
the 18th  calendar day of each month,  or if such day is not a Business Day, the
Business Day immediately preceding such day.

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

     Serviving Criteria: As defined in Section 2.18 of this Agreement.

     Servicing  Fee: With respect to each BANA  Mortgage  Loan and  Distribution
Date,  the amount of the fee  payable to the  Servicer,  which  shall,  for such
Distribution  Date, be equal to  one-twelfth of the product of the Servicing Fee
Rate with respect to such BANA Mortgage Loan and the Stated Principal Balance of
such BANA Mortgage Loan,  subject to reduction as provided in Section 2.16. Such
fee shall be payable monthly, computed on the basis of the same Stated Principal
Balance  and period  respecting  which any  related  interest  payment on a BANA

                                      -2-

<PAGE>

Mortgage Loan is computed.  The Servicer's right to receive the Servicing Fee is
limited to, and payable solely from, the interest portion (including  recoveries
with respect to interest from  Liquidation  Proceeds and other proceeds,  to the
extent permitted by Section 2.10) of related Monthly  Payments  collected by the
Servicer, or as otherwise provided under Section 2.10.

     Servicing Fee Rate:  With respect to each BANA  Mortgage  Loan, a per annum
rate as described in the BANA Mortgage Loan Schedule.

     Servicing  File:  The items  pertaining to a particular  BANA Mortgage Loan
referred to in Exhibit D hereto,  and any  additional  documents  required to be
added to the Servicing File pursuant to this Agreement.

     Servicing Officer:  Any officer of the Servicer involved in, or responsible
for, the  administration  and  servicing of the BANA  Mortgage  Loans whose name
appears on a list of servicing  officers furnished to the Master Servicer by the
Servicer, as such list may from time to time be amended.

     Servicing Advance: All customary,  reasonable and necessary "out of pocket"
costs and expenses  incurred in the performance by the Servicer of its servicing
obligations, including, but not limited to (i) the preservation, restoration and
protection of a Mortgaged Property,  (ii) expenses  reimbursable to the Servicer
pursuant to Section 2.13 and any enforcement or judicial proceedings,  including
foreclosures,  (iii) the management and liquidation of any REO Property and (iv)
compliance with the obligations under Section 2.11.

     Servicing Transfer Costs: All reasonable costs and expenses incurred by the
Master  Servicer in connection with the transfer of servicing from the Servicer,
including,  without  limitation,  any  costs  or  expenses  associated  with the
complete  transfer  of all  servicing  data and the  completion,  correction  or
manipulation of such servicing data as may be required by the Master Servicer to
correct any errors or  insufficiencies  in the  servicing  data or  otherwise to
enable the Master  Servicer  to service the BANA  Mortgage  Loans  properly  and
effectively.

     Subcontractor:  Any  vendor,  subcontractor  or  other  Person  that is not
responsible for the overall servicing of Mortgage Loans but performs one or more
discrete  functions  identified in Item 1122(d) of Regulation AB with respect to
Mortgage Loans under the direction or authority of the Servicer.

     Subservicer:  Any  Person  that  services  Mortgage  Loans on behalf of the
Servicer or any  Subservicer  and is responsible  for the  performance  (whether
directly or through  Subservicers or Subcontractors) of a substantial portion of
the material servicing  functions required to be performed by the Servicer under
this  Agreement or any  reconstitution  agreement  that are  identified  in Item
1122(d) of Regulation AB.

     Subservicing Agreement: Any subservicing agreement (which, in the event the
Subservicer is an affiliate of the Servicer, need not be in writing) between the
Servicer and any Subservicer relating to the servicing and/or  administration of
certain BANA Mortgage Loans as provided in Section 2.02.

                                      -3-

<PAGE>

     Except as  otherwise  specified  herein  or as the  context  may  otherwise
require,  capitalized terms used but not otherwise defined herein are defined in
the Pooling and Servicing Agreement.

                                   ARTICLE II

                          ADMINISTRATION AND SERVICING
                                OF MORTGAGE LOANS

Section 2.01   Servicer to Service Mortgage Loans.
               -----------------------------------

     For and on behalf of the Certificateholders, the Servicer shall service and
administer  the  BANA  Mortgage  Loans  in  accordance  with  the  terms of this
Agreement,  Customary Servicing Procedures,  applicable law and the terms of the
related  Mortgage  Notes and  Mortgages.  In connection  with such servicing and
administration,  the Servicer shall have full power and authority,  acting alone
and/or  through  Subservicers  as provided in Section 2.02, to do or cause to be
done any and all things that it may deem  necessary or  desirable in  connection
with such servicing and administration  including, but not limited to, the power
and  authority,  subject to the terms  hereof,  (a) to execute and  deliver,  on
behalf  of  the  Master  Servicer,   the   Certificateholders,   the  Securities
Administrator  and  the  Trustee,   customary  consents  or  waivers  and  other
instruments  and  documents,  (b) to consent,  with respect to the BANA Mortgage
Loans,  to transfers of any Mortgaged  Property and  assumptions of the Mortgage
Notes and related Mortgages (but only in the manner provided in this Agreement),
(c) to collect any Insurance Proceeds and other Liquidation Proceeds relating to
the BANA Mortgage Loans,  and (d) to effectuate  foreclosure or other conversion
of the ownership of the Mortgaged  Property securing any BANA Mortgage Loan. The
Servicer  shall  represent  and protect the  interests  of the Trust in the same
manner as it protects its own  interests in mortgage  loans in its own portfolio
in any claim,  proceeding or litigation regarding a BANA Mortgage Loan and shall
not make or permit any modification, waiver or amendment of any term of any BANA
Mortgage Loan, except as provided pursuant to Section 2.20. Without limiting the
generality of the foregoing, the Servicer, in its own name or in the name of any
Subservicer or the Trustee,  is hereby authorized and empowered by the Depositor
and the  Trustee,  when the  Servicer  or any  Subservicer,  as the case may be,
believes it appropriate in its reasonable  judgment,  to execute and deliver, on
behalf of the Trustee, the Depositor, the Certificateholders or any of them, any
and all  instruments  and  agreements of  satisfaction,  cancellation,  default,
assumption,  modification,  discharge,  partial or full  release,  and all other
comparable instruments and agreements,  with respect to the BANA Mortgage Loans,
and with respect to the related Mortgaged Properties held for the benefit of the
Certificateholders.  To the extent that the Servicer is not permitted to execute
and deliver such  documents  pursuant to the  preceding  sentence,  the Servicer
shall  prepare and deliver to the  Depositor  and/or the Trustee such  documents
requiring  execution  and  delivery  by any or all of them as are  necessary  or
appropriate  to enable the Servicer to service and  administer the BANA Mortgage
Loans.  Upon receipt of such documents,  the Depositor and/or the Trustee,  upon
the direction of the Servicer, shall promptly execute such documents and deliver
them to the  Servicer.  Alternatively,  upon the  request of the  Servicer,  the
Trustee  shall  execute and deliver to the  Servicer  any  additional  powers of
attorney  or other  documents  prepared  by the  Servicer  that  are  reasonably
necessary or  appropriate  to enable the Servicer to carry out its servicing and
administrative duties under this Agreement.

                                      -4-

<PAGE>

     In accordance with the standards of the preceding  paragraph,  the Servicer
shall  advance or cause to be  advanced  funds as  necessary  for the purpose of
effecting  the  payment of taxes and  assessments  on the  Mortgaged  Properties
relating  to  the  BANA  Mortgage  Loans,  which  Servicing  Advances  shall  be
reimbursable in the first instance from related  collections from the Mortgagors
pursuant to Section  2.08,  and further as provided in Section  2.10.  The costs
incurred by the Servicer,  if any, in effecting the timely payments of taxes and
assessments  on the Mortgaged  Properties and related  insurance  premiums shall
not,   for  the   purpose   of   calculating   monthly   distributions   to  the
Certificateholders,  be  added  to the  Stated  Principal  Balances  of the BANA
Mortgage  Loans,  notwithstanding  that the terms of such BANA Mortgage Loans so
permit.

     The  relationship  of the Servicer (and of any successor to the Servicer as
servicer  under this  Agreement)  to the  Trustee,  the Master  Servicer and the
Securities  Administrator  under this Agreement is intended by the parties to be
that of an independent  contractor and not that of a joint venturer,  partner or
agent.

Section 2.02   Subservicing; Enforcement of the Obligations of Servicers.
               ----------------------------------------------------------

     (a) The Servicer may arrange for the subservicing of any BANA Mortgage Loan
by a Subservicer pursuant to a Subservicing Agreement;  provided,  however, that
such  subservicing  arrangement  and  the  terms  of  the  related  Subservicing
Agreement  must provide for the servicing of such BANA Mortgage Loan in a manner
consistent   with   the   servicing   arrangements    contemplated    hereunder.
Notwithstanding  the  provisions  of  any  Subservicing  Agreement,  any  of the
provisions of this Agreement relating to agreements or arrangements  between the
Servicer and a  Subservicer  or reference to actions taken through a Subservicer
or otherwise,  the Servicer shall remain  obligated and liable to the Depositor,
the  Master  Servicer,  the  Securities  Administrator,   the  Trustee  and  the
Certificateholders  for the  servicing and  administration  of the BANA Mortgage
Loans in accordance with the provisions of this Agreement without  diminution of
such  obligation  or  liability  by virtue of such  Subservicing  Agreements  or
arrangements  or by virtue of  indemnification  from the  Subservicer and to the
same extent and under the same terms and  conditions  as if the  Servicer  alone
were servicing and administering  those BANA Mortgage Loans. All actions of each
Subservicer  performed pursuant to the related  Subservicing  Agreement shall be
performed  as  agent  of the  Servicer  with the same  force  and  effect  as if
performed directly by the Servicer.

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

     (c) As part of its servicing activities  hereunder,  the Servicer,  for the
benefit of the Trustee,  the Securities  Administrator,  the Master Servicer and
the  Certificateholders,  shall use its best  reasonable  efforts to enforce the
obligations  of each  Subservicer  engaged  by the  Servicer  under the  related
Subservicing  Agreement,  to the  extent  that the  non-performance  of any such
obligation  would have a material and adverse  effect on a BANA  Mortgage  Loan.
Such  enforcement,  including,  without  limitation,  the legal  prosecution  of
claims,  termination  of  Subservicing  Agreements  and  the  pursuit  of  other
appropriate  remedies,  shall be in such form and  carried out to such an extent

                                      -5-

<PAGE>

and at such time as the Servicer,  in its good faith  business  judgment,  would
require were it the owner of the related BANA Mortgage Loans. The Servicer shall
pay the costs of such  enforcement  at its own expense,  and shall be reimbursed
therefor only (i) from a general recovery resulting from such enforcement to the
extent,  if any,  that such  recovery  exceeds all amounts due in respect of the
related BANA Mortgage Loan or (ii) from a specific  recovery of costs,  expenses
or attorneys fees against the party against whom such enforcement is directed.

     (d) Any Subservicing  Agreement  entered into by the Servicer shall provide
that it may be  assumed or  terminated  by the  Master  Servicer,  if the Master
Servicer has assumed the duties of the Servicer,  or any successor Servicer,  at
the Master Servicer's or successor  Servicer's  option,  as applicable,  without
cost or  obligation  to the assuming or  terminating  party or the Trust Estate,
upon the assumption by such party of the obligations of the Servicer pursuant to
Section 5.02.

     (e) Any  Subservicing  Agreement,  and any other  transactions  or services
relating to the BANA Mortgage Loans involving a Subservicer,  shall be deemed to
be between  the  Servicer  and such  Subservicer  alone,  and the  Trustee,  the
Securities  Administrator,  the Master Servicer and the Certificateholders shall
not be  deemed  parties  thereto  and  shall  have no claims or rights of action
against,  rights,  obligations,  duties or liabilities to or with respect to the
Subservicer  or its  officers,  directors or  employees,  except as set forth in
Section 2.01. The Servicer shall be solely liable for all fees owed by it to any
Subservicer,  irrespective  of whether the Servicer's  compensation  pursuant to
this Agreement is sufficient to pay such fees.

Section 2.03   Fidelity Bond; Errors and Omissions Insurance.
               ----------------------------------------------

     The Servicer shall maintain,  at its own expense,  a blanket  fidelity bond
and an errors  and  omissions  insurance  policy,  with  broad  coverage  on all
officers,  employees  or other  persons  acting in any capacity  requiring  such
persons  to  handle  funds,  money,  documents  or papers  relating  to the BANA
Mortgage Loans. These policies must insure the Servicer against losses resulting
from dishonest or fraudulent  acts committed by the  Servicer's  personnel,  any
employees  of outside  firms  that  provide  data  processing  services  for the
Servicer,  and temporary  contract  employees or student interns.  Such fidelity
bond shall also protect and insure the  Servicer  against  losses in  connection
with the release or satisfaction of a BANA Mortgage Loan without having obtained
payment  in full of the  indebtedness  secured  thereby.  No  provision  of this
Section 2.03  requiring  such fidelity  bond and errors and omissions  insurance
shall  diminish or relieve the Servicer from its duties and  obligations  as set
forth in this Agreement.  The minimum coverage under any such bond and insurance
policy shall be at least equal to the corresponding  amounts required by FNMA in
the FNMA Servicing  Guide or by FHLMC in the FHLMC Sellers' & Servicers'  Guide,
as amended or restated from time to time, or in an amount as may be permitted to
the Servicer by express waiver of FNMA or FHLMC.

Section 2.04   Access to Certain Documentation.
               --------------------------------

     The  Servicer  shall  provide  to the OTS and the  FDIC  and to  comparable
regulatory authorities supervising Holders of Certificates and the examiners and
supervisory  agents of the OTS, the FDIC and such other  authorities,  access to
the  documentation  required by applicable  regulations  of the OTS and the FDIC

                                      -6-

<PAGE>

with respect to the BANA Mortgage Loans.  Such access shall be afforded  without
charge,  but only upon  reasonable  and prior written  request and during normal
business  hours at the  offices  designated  by the  Servicer.  Nothing  in this
Section  2.04  shall  limit  the  obligation  of the  Servicer  to  observe  any
applicable  law and the failure of the Servicer to provide access as provided in
this Section 2.04 as a result of such  obligation  shall not constitute a breach
of this Section 2.04.

Section 2.05   Maintenance of Primary Mortgage Insurance Policy; Claims;
               ---------------------------------------------------------
               Collections of BPP Mortgage Loan Payments.
               -----------------------------------------

     With  respect  to each BANA  Mortgage  Loan with a  Loan-to-Value  Ratio in
excess of 80% or such other  Loan-to-Value  Ratio as may be required by law, the
Servicer  shall,  without  any cost to the Trust  Estate,  maintain or cause the
Mortgagor  to  maintain  in full force and effect a Primary  Mortgage  Insurance
Policy insuring that portion of the BANA Mortgage Loan in excess of a percentage
in conformity with FNMA requirements.  The Servicer shall pay or shall cause the
Mortgagor  to pay the  premium  thereon on a timely  basis,  at least  until the
Loan-to-Value  Ratio of such BANA  Mortgage Loan is reduced to 80% or such other
Loan-to-Value  Ratio  as may be  required  by  law.  If  such  Primary  Mortgage
Insurance Policy is terminated, the Servicer shall obtain from another insurer a
comparable  replacement  policy,  with a total  coverage  equal to the remaining
coverage of such terminated  Primary Mortgage  Insurance  Policy. If the insurer
shall cease to be an insurer  acceptable to FNMA,  the Servicer shall notify the
Master Servicer in writing, it being understood that the Servicer shall not have
any  responsibility  or liability  for any failure to recover  under the Primary
Mortgage  Insurance  Policy for such  reason.  If the Servicer  determines  that
recoveries  under the Primary  Mortgage  Insurance Policy are jeopardized by the
financial  condition  of the  insurer,  the  Servicer  shall obtain from another
insurer  which  meets  the  requirements  of  this  Section  2.05 a  replacement
insurance  policy.  The Servicer  shall not take any action that would result in
noncoverage under any applicable  Primary Mortgage  Insurance Policy of any loss
that, but for the actions of the Servicer,  would have been covered  thereunder.
In connection with any assumption or substitution  agreement  entered into or to
be entered into pursuant to Section 2.12, the Servicer shall promptly notify the
insurer under the related Primary  Mortgage  Insurance  Policy,  if any, of such
assumption or  substitution  of liability in  accordance  with the terms of such
Primary  Mortgage  Insurance  Policy  and shall  take all  actions  which may be
required by such insurer as a condition to the  continuation  of coverage  under
such Primary  Mortgage  Insurance  Policy.  If such Primary  Mortgage  Insurance
Policy  is  terminated  as a  result  of  such  assumption  or  substitution  of
liability,  the Servicer shall obtain a replacement  Primary Mortgage  Insurance
Policy as provided above.

     In  connection  with its  activities  as servicer,  the Servicer  agrees to
prepare  and  present,  on behalf of itself,  the  Trust,  the  Trustee  and the
Certificateholders,  claims to the insurer under any Primary Mortgage  Insurance
Policy in a timely fashion in accordance with the terms of such Primary Mortgage
Insurance Policy and, in this regard,  to take such action as shall be necessary
to permit  recovery under any Primary  Mortgage  Insurance  Policy  respecting a
defaulted BANA Mortgage Loan. Pursuant to Section 2.08(a), any amounts collected
by the Servicer under any Primary  Mortgage  Insurance Policy shall be deposited
in the Escrow Account, subject to withdrawal pursuant to Section 2.08(b).

                                      -7-

<PAGE>

     The  Servicer  will  comply with all  provisions  of  applicable  state and
federal law relating to the  cancellation  of, or  collection  of premiums  with
respect  to,  Primary  Mortgage  Insurance,  including,  but not limited to, the
provisions  of the  Homeowners  Protection  Act of  1998,  and  all  regulations
promulgated thereunder, as amended from time to time.

     The Servicer shall take all actions necessary to collect,  on behalf of the
Trust, any BPP Mortgage Loan Payments  required to be made to the Trust pursuant
to the Mortgage Loan Purchase Agreement.

Section 2.06   Master Servicer to Act as Servicer.
               -----------------------------------

     If the Servicer  shall for any reason no longer be the  Servicer  hereunder
(including by reason of an Event of Default),  the Master  Servicer shall within
90 days of such time,  assume,  if it so elects,  or shall  appoint a  successor
Servicer to assume,  all of the rights and obligations of the Servicer hereunder
arising  thereafter (except that the Master Servicer shall not be (a) liable for
losses of the Servicer  pursuant to Section 2.11 or any acts or omissions of the
predecessor  Servicer  hereunder,  (b)  obligated  to  make  Advances  if  it is
prohibited  from  doing so by  applicable  law or (c)  deemed  to have  made any
representations and warranties of the Servicer  hereunder).  Any such assumption
shall be subject to Sections 4.02 and 5.02. If the Servicer shall for any reason
no longer be the Servicer  (including  by reason of any Event of  Default),  the
Master Servicer or the successor Servicer may elect to succeed to any rights and
obligations of the Servicer under each  Subservicing  Agreement or may terminate
each  Subservicing  Agreement.  If it has  elected  to assume  the  Subservicing
Agreement, the Master Servicer or the successor Servicer shall be deemed to have
assumed all of the Servicer's interest therein and to have replaced the Servicer
as a  party  to any  Subservicing  Agreement  entered  into by the  Servicer  as
contemplated by Section 2.02 to the same extent as if the Subservicing Agreement
had been  assigned to the assuming  party except that the Servicer  shall not be
relieved of any liability or obligations under any such Subservicing Agreement.

     The Servicer that is no longer a Servicer  hereunder shall, upon request of
the  Master  Servicer,  but at the  expense  of such  Servicer,  deliver  to the
assuming party all documents and records relating to each Subservicing Agreement
or  substitute  servicing  agreement  and the BANA  Mortgage  Loans  then  being
serviced  thereunder  and an accounting  of amounts  collected or held by it and
otherwise use its best efforts to effect the orderly and  efficient  transfer of
such  substitute  Subservicing  Agreement  to the  assuming  party.  The  Master
Servicer shall be entitled to be reimbursed  from such Servicer (or the Trust if
such Servicer is unable to fulfill its obligations  hereunder) for all Servicing
Transfer Costs.

Section 2.07   Collection of Mortgage Loan Payments and BANA Custodial Account.
               ----------------------------------------------------------------

     (a)  Continuously  from the date hereof until the principal and interest on
all BANA Mortgage Loans are paid in full, the Servicer will proceed  diligently,
in accordance with this Agreement, to collect all payments due under each of the
BANA  Mortgage  Loans when the same shall become due and payable.  Further,  the
Servicer  will in accordance  with all  applicable  law and Customary  Servicing
Procedures ascertain and estimate taxes, assessments,  fire and hazard insurance
premiums,  mortgage insurance premiums and all other charges with respect to the
BANA  Mortgage  Loans that,  as provided  in any  Mortgage,  will become due and

                                      -8-

<PAGE>

payable  to the end that the  installments  payable  by the  Mortgagors  will be
sufficient  to pay  such  charges  as and  when  they  become  due and  payable.
Consistent with the foregoing,  the Servicer may in its discretion (i) waive any
late  payment  charge  or  any  prepayment  penalties  or  penalty  interest  in
connection  with the  prepayment of a BANA Mortgage Loan and (ii) extend the due
dates for  payments  due on a Mortgage  Note for a period not  greater  than 120
days;  provided,  however,  that the Servicer  cannot extend the maturity of any
such BANA  Mortgage  Loan past the date on which the final payment is due on the
latest  maturing  BANA Mortgage Loan as of the Cut-Off Date. In the event of any
such  arrangement,  the Servicer shall make Monthly Advances on the related BANA
Mortgage  Loan in  accordance  with the  provisions  of Section  2.19 during the
scheduled  period in  accordance  with the  amortization  schedule  of such BANA
Mortgage Loan without modification  thereof by reason of such arrangements.  The
Servicer  shall not be required to institute or join in litigation  with respect
to  collection  of any  payment  (whether  under a  Mortgage,  Mortgage  Note or
otherwise  or against any public or  governmental  authority  with  respect to a
taking or condemnation)  if it reasonably  believes that enforcing the provision
of the Mortgage or other  instrument  pursuant to which such payment is required
is prohibited by applicable law.

     (b) The Servicer shall  establish and maintain the BANA Custodial  Account.
The  Servicer  shall  deposit or cause to be deposited  into the BANA  Custodial
Account on a daily basis within one Business Day of receipt, except as otherwise
specifically provided herein, the following payments and collections remitted by
Subservicers or received by it in respect of the BANA Mortgage Loans  subsequent
to the Cut-Off Date (other than in respect of principal  and interest due on the
BANA Mortgage  Loans on or before the Cut-Off  Date) and the  following  amounts
required to be deposited  hereunder  with respect to the BANA Mortgage  Loans it
services:

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

          (ii) all payments on account of interest on such BANA Mortgage  Loans,
     net of the Servicing Fee;

          (iii) (A) all Insurance Proceeds and Liquidation Proceeds,  other than
     Insurance  Proceeds to be (1) applied to the  restoration  or repair of the
     Mortgaged  Property,  (2)  released to the  Mortgagor  in  accordance  with
     Customary  Servicing  Procedures  or (3)  required to be  deposited  to the
     Escrow  Account  pursuant  to  Section  2.08(a),  and other than any Excess
     Proceeds and (B) any Insurance  Proceeds  released from the Escrow  Account
     pursuant to Section 2.08(b)(iv);

          (iv) any amount  required to be deposited by the Servicer  pursuant to
     Section 2.07(d) in connection with any losses on Permitted Investments with
     respect to the BANA Custodial Account;

          (v) any amounts  required to be deposited by the Servicer  pursuant to
     Section 2.13;

                                      -9-

<PAGE>

          (vi) all Repurchase Prices, all Substitute  Adjustment Amounts and all
     Reimbursement Amounts to the extent received by the Servicer;

          (vii) Monthly  Advances made by the Servicer  pursuant to Section 2.19
     and any Compensating Interest;

          (viii) any Buy-Down Funds required to be deposited pursuant to Section
     2.23; and

          (ix) any other amounts required to be deposited hereunder.

     The foregoing  requirements  for deposits to the BANA Custodial  Account by
the  Servicer  shall be  exclusive.  If the Servicer  shall  deposit in the BANA
Custodial  Account any amount not required to be  deposited,  it may at any time
withdraw or direct the  institution  maintaining  the BANA Custodial  Account to
withdraw such amount from the BANA Custodial  Account,  any provision  herein to
the contrary notwithstanding.  The BANA Custodial Account may contain funds that
belong to one or more trust funds created for mortgage pass-through certificates
of other  series and may  contain  other funds  respecting  payments on mortgage
loans belonging to the Servicer or serviced by the Servicer on behalf of others;
provided,  however, that such commingling of funds shall not be permitted at any
time during which  Fitch's  senior  long-term  unsecured  debt rating of Bank of
America,  National Association is below "A." Notwithstanding such commingling of
funds,  the Servicer  shall keep records  that  accurately  reflect the funds on
deposit in the BANA Custodial  Account that have been  identified by it as being
attributable  to the BANA Mortgage Loans.  The Servicer shall maintain  adequate
records with respect to all withdrawals  made pursuant to this Section 2.07. All
funds  required to be deposited in the BANA  Custodial  Account shall be held in
trust for the  Certificateholders  until  withdrawn in  accordance  with Section
2.10.

     (c) The  institution at which the BANA Custodial  Account is maintained may
invest the funds  therein as  directed in writing by the  Servicer in  Permitted
Investments,  which shall mature not later than the Business Day next  preceding
the related  Remittance  Date (except that if such  Permitted  Investment  is an
obligation of the institution  that maintains such account,  then such Permitted
Investment shall mature not later than such Remittance Date). All such Permitted
Investments  shall be made in the name of the  Trustee,  for the  benefit of the
Certificateholders.  All BANA Custodial Account Reinvestment Income shall be for
the benefit of the Servicer as part of its Servicing  Compensation  and shall be
retained by it monthly as provided herein.  The amount of any losses realized in
the BANA Custodial  Account  incurred in respect of any such  investments  shall
promptly be deposited by the Servicer in the BANA Custodial Account.

     (d) The Servicer  shall give notice to the Master  Servicer of any proposed
change of the location of the BANA Custodial Account  maintained by it not later
than 30 days and not more than 45 days prior to any change thereof. The creation
of  the  BANA   Custodial   Account  shall  be  evidenced  by  a   certification
substantially  in the form of  Exhibit  A hereto.  A copy of such  certification
shall be furnished to the Master Servicer.

                                      -10-

<PAGE>

Section 2.08.   Collection of Taxes, Assessments and Similar Items; Escrow
                ----------------------------------------------------------
                Account.
                --------

     (a) To the extent  required by the related  Mortgage Note and not violative
of current law, the Servicer  shall  segregate and hold all funds  collected and
received pursuant to each BANA Mortgage Loan which constitute Escrow Payments in
trust  separate  and apart from any of its own funds and general  assets and for
such  purpose  shall   establish  and  maintain  one  or  more  escrow  accounts
(collectively,   the  "Escrow  Account"),  titled  "Bank  of  America,  National
Association,  in  trust  for  registered  holders  of  Banc of  America  Funding
Corporation  Mortgage  Pass-Through  Certificates,  Series  2006-7  and  various
Mortgagors."  The Escrow Account shall be established  with a commercial bank, a
savings bank or a savings and loan  association  that meets the  guidelines  set
forth by FNMA or FHLMC as an eligible  institution for escrow accounts and which
is a member of the Automated  Clearing  House.  In any case,  the Escrow Account
shall be  insured  by the  FDIC to the  fullest  extent  permitted  by law.  The
Servicer shall deposit in the appropriate  Escrow Account on a daily basis,  and
retain  therein:  (i) all  Escrow  Payments  collected  on  account  of the BANA
Mortgage Loans, (ii) all amounts  representing  proceeds of any hazard insurance
policy  which are to be  applied  to the  restoration  or repair of any  related
Mortgaged Property;  and (iii) all amounts representing  proceeds of any Primary
Mortgage Insurance Policy. Nothing herein shall require the Servicer to compel a
Mortgagor to establish an Escrow Account in violation of applicable law.

     (b) Withdrawals of amounts so collected from the Escrow Account may be made
by the  Servicer  only (i) to  effect  timely  payment  of  taxes,  assessments,
mortgage Ainsurance premiums, fire and hazard insurance premiums, condominium or
PUD association dues, or comparable items  constituting  Escrow Payments for the
related Mortgage,  (ii) to reimburse the Servicer out of related Escrow Payments
made with respect to a BANA Mortgage Loan for any Servicing  Advance made by the
Servicer  pursuant to Section  2.08(c) with respect to such BANA Mortgage  Loan,
(iii) to refund to any  Mortgagor any sums  determined to be overages,  (iv) for
transfer  to the BANA  Custodial  Account  upon  default  of a  Mortgagor  or in
accordance  with the terms of the related BANA Mortgage Loan and if permitted by
applicable law, (v) for application to restore or repair the Mortgaged Property,
(vi) to pay to the Mortgagor,  to the extent  required by law, any interest paid
on the  funds  deposited  in the  Escrow  Account,  (vii) to pay to  itself  any
interest earned on funds deposited in the Escrow Account (and not required to be
paid to the  Mortgagor),  (viii) to the extent  permitted under the terms of the
related  Mortgage Note and applicable  law, to pay late fees with respect to any
Monthly  Payment which is received  after the applicable  grace period,  (ix) to
withdraw  suspense  payments that are deposited into the Escrow Account,  (x) to
withdraw any amounts  inadvertently  deposited in the Escrow Account; or (xi) to
clear and terminate the Escrow Account upon the termination of this Agreement in
accordance  with Section  6.01.  Any Escrow  Account  shall not be a part of the
Trust Estate.

     (c) With respect to each BANA Mortgage  Loan,  the Servicer  shall maintain
accurate records  reflecting the status of taxes,  assessments and other charges
which are or may  become a lien upon the  Mortgaged  Property  and the status of
Primary  Mortgage  Insurance  Policy  premiums  and  fire and  hazard  insurance
coverage.  The  Servicer  shall  obtain,  from  time to time,  all bills for the
payment of such charges  (including  renewal  premiums) and shall effect payment
thereof  prior  to the  applicable  penalty  or  termination  date and at a time
appropriate for securing maximum discounts allowable, employing for such purpose
deposits of the Mortgagor in the Escrow  Account,  if any, which shall have been
estimated  and  accumulated  by the  Servicer  in  amounts  sufficient  for such

                                      -11-

<PAGE>

purposes,  as allowed  under the terms of the  Mortgage.  To the  extent  that a
Mortgage does not provide for Escrow Payments, the Servicer shall determine that
any  such  payments  are  made  by the  Mortgagor.  The  Servicer  assumes  full
responsibility  for the timely payment of all such bills and shall effect timely
payments of all such bills irrespective of each Mortgagor's faithful performance
in the payment of same or the making of the Escrow Payments.  The Servicer shall
advance any such  payments that are not timely paid,  but the Servicer  shall be
required so to advance only to the extent that such Servicing  Advances,  in the
good faith judgment of the Servicer,  will be recoverable by the Servicer out of
Insurance Proceeds, Liquidation Proceeds or otherwise.

Section 2.09.   Access to Certain Documentation and Information Regarding the
                --------------------------------------------------------------
                Mortgage Loans.
                ---------------

     The Servicer shall afford the Master Servicer, the Securities Administrator
and the Trustee reasonable access to all records and documentation regarding the
BANA Mortgage Loans serviced by it and all accounts,  insurance  information and
other matters  relating to this  Agreement,  such access being afforded  without
charge, but only upon reasonable request and during normal business hours at the
office designated by the Servicer.

Section 2.10.   Permitted Withdrawals from the BANA Custodial Account.
                ------------------------------------------------------

     The Servicer may from time to time make withdrawals from the BANA Custodial
     Account, for the following purposes:

          (i) to pay  itself  (to  the  extent  not  previously  retained),  the
     Servicing Compensation to which it is entitled pursuant to Section 2.16;

          (ii) to reimburse  itself for  unreimbursed  Advances made by it, such
     right of  reimbursement  pursuant  to this  clause  (ii)  being  limited to
     amounts  received on the BANA Mortgage  Loans in the same Loan Group as the
     BANA  Mortgage  Loan(s)  (including  amounts  received  in  respect  of BPP
     Mortgage Loan  Payments for such BANA  Mortgage  Loans) in respect of which
     any such Advance was made;

          (iii) to reimburse itself for any  Nonrecoverable  Advance  previously
     made;

          (iv) to  reimburse  itself for  Insured  Expenses  from the  Insurance
     Proceeds;

          (v) to pay to the  purchaser,  with respect to each BANA Mortgage Loan
     or REO  Property  that has  been  purchased  pursuant  to the  Pooling  and
     Servicing  Agreement,  all amounts  received thereon after the date of such
     purchase;

          (vi) to reimburse itself or the Depositor for expenses incurred by any
     of them and reimbursable pursuant to Section 4.03;

          (vii) to withdraw any amount  deposited in the BANA Custodial  Account
     and not required to be deposited therein;

                                      -12-

<PAGE>

          (viii) on or prior to the Remittance Date, to withdraw an amount equal
     to the  portion  of the  Pool  Distribution  Amount  relating  to the  BANA
     Mortgage Loans and any other amounts due to the Master  Servicer under this
     Agreement for such Distribution  Date, to the extent on deposit,  and remit
     such  amount in  immediately  available  funds to the Master  Servicer  for
     deposit in the Master Servicer Custodial Account;

          (ix) on or prior to the  Remittance  Date,  to  withdraw  all  amounts
     deposited into the BANA Custodial Account pursuant to Section 2.07(b)(viii)
     for such Distribution Date and remit such amounts in immediately  available
     funds to the Master Servicer for deposit into the Master Servicer Custodial
     Account; and

          (x) to clear and terminate the BANA Custodial Account upon termination
     of this Agreement pursuant to Section 6.01.

     The  Servicer  shall  keep  and  maintain  separate  accounting,  on a BANA
Mortgage  Loan by BANA Mortgage  Loan basis,  for the purpose of justifying  any
withdrawal from the BANA Custodial  Account  pursuant to clauses (i), (ii), (iv)
and (v) above.  Prior to making any withdrawal  from the BANA Custodial  Account
pursuant  to clause  (iii)  above,  the  Servicer  shall  deliver  to the Master
Servicer an Officer's  Certificate of a Servicing Officer  indicating the amount
of any  previous  Advance  determined  by the  Servicer  to be a  Nonrecoverable
Advance and identifying the related BANA Mortgage  Loan(s) and their  respective
portions of such Nonrecoverable Advance.

     In  connection  with any  failure by the  Servicer  to make any  remittance
required to be made by it to the Master  Servicer  Custodial  Account on the day
and by the time such  remittance  is  required  to be made under this  Agreement
(without giving effect to any grace or cure period),  the Servicer shall pay the
Master  Servicer  for the  account of the Master  Servicer  interest at the rate
published  in The Wall  Street  Journal  as the  "Prime  Rate" on any amount not
timely  remitted from and including the day such  remittance  was required to be
made to, but not including, the day on which such remittance was actually made.

Section 2.11.   Maintenance of Hazard Insurance.
                --------------------------------

     The Servicer  shall cause to be maintained for each BANA Mortgage Loan fire
and hazard  insurance  with  extended  coverage  customary in the area where the
Mortgaged Property is located in an amount which is at least equal to the lesser
of (a) the full insurable value of the Mortgaged  Property or (b) the greater of
(i) the outstanding  principal  balance owing on the BANA Mortgage Loan and (ii)
an amount such that the proceeds of such insurance  shall be sufficient to avoid
the application to the Mortgagor or loss payee of any  coinsurance  clause under
the policy.  If the Mortgaged  Property is 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)  the Servicer will
cause to be maintained a flood insurance  policy meeting the requirements of the
current guidelines of the Federal Insurance  Administration and the requirements
of FNMA or FHLMC.  The Servicer shall also maintain on REO Property  serviced by
it, fire and hazard  insurance  with extended  coverage in an amount which is at
least equal to the maximum insurable value of the improvements  which are a part
of such  property,  liability  insurance  and,  to the  extent  required,  flood
insurance in an amount  required  above.  Any amounts  collected by the Servicer

                                      -13-

<PAGE>

under any such policies (other than amounts to be deposited in an Escrow Account
and applied to the restoration or repair of the property  subject to the related
Mortgage or property acquired in liquidation of the BANA Mortgage Loan, or to be
released to the Mortgagor in accordance  with  Customary  Servicing  Procedures)
shall be deposited in the BANA Custodial Account, subject to withdrawal pursuant
to Section  2.10.  It is  understood  and  agreed  that no  earthquake  or other
additional  insurance  need be required  by the  Servicer  of any  Mortgagor  or
maintained on REO  Property,  other than  pursuant to such  applicable  laws and
regulations  as  shall  at any  time  be in  force  and as  shall  require  such
additional  insurance.  All policies  required  hereunder shall be endorsed with
standard mortgagee clauses with loss payable to the Servicer,  and shall provide
for at least 30 days prior  written  notice of any  cancellation,  reduction  in
amount or material change in coverage to the Servicer.

     The hazard insurance policies for each BANA Mortgage Loan secured by a unit
in a condominium  development  or planned unit  development  shall be maintained
with respect to such BANA Mortgage Loan and the related  development in a manner
which is consistent with FNMA requirements.

     Notwithstanding  the foregoing,  the Servicer may maintain a blanket policy
insuring  against hazard losses on all of the Mortgaged  Properties  relating to
the BANA Mortgage Loans in lieu of  maintaining  the required  hazard  insurance
policies for each BANA Mortgage Loan and may maintain a blanket policy  insuring
against  special  flood  hazards  in  lieu of  maintaining  any  required  flood
insurance.  Any such  blanket  policies  shall (A) be  consistent  with  prudent
industry standards, (B) name the Servicer as loss payee, (C) provide coverage in
an amount equal to the aggregate  unpaid  principal  balance on the related BANA
Mortgage  Loans  without  co-insurance,   and  (D)  otherwise  comply  with  the
requirements  of this  Section  2.11.  Any such  blanket  policy  may  contain a
deductible  clause;  provided that if any Mortgaged Property is not covered by a
separate  policy  otherwise  complying  with this Section 2.11 and a loss occurs
with respect to such  Mortgaged  Property  which loss would have been covered by
such a policy,  the Servicer  shall  deposit in the BANA  Custodial  Account the
difference,  if any,  between  the amount that would have been  payable  under a
separate policy  complying with this Section 2.11 and the amount paid under such
blanket policy.

Section 2.12.   Enforcement of Due-On-Sale Clauses; Assumption Agreements.
                ----------------------------------------------------------

     (a) Except as otherwise  provided in this Section 2.12,  when any Mortgaged
Property subject to a Mortgage has been conveyed by the Mortgagor,  the Servicer
shall use reasonable efforts, to the extent that it has actual knowledge of such
conveyance,  to enforce any due-on-sale clause contained in any Mortgage Note or
Mortgage,  to  the  extent  permitted  under  applicable  law  and  governmental
regulations,  but only to the extent that such  enforcement  will not  adversely
affect  or   jeopardize   coverage   under  any   Required   Insurance   Policy.
Notwithstanding  the  foregoing,  the Servicer is not required to exercise  such
rights  with  respect  to a  Mortgage  Loan if the  Person  to whom the  related
Mortgaged Property has been conveyed or is proposed to be conveyed satisfies the
terms and conditions contained in the Mortgage Note and Mortgage related thereto
and the consent of the  mortgagee  under such  Mortgage  Note or Mortgage is not
otherwise  required  under such Mortgage Note or Mortgage as a condition to such
transfer.  If (i) the  Servicer is  prohibited  by law from  enforcing  any such
due-on-sale  clause,  (ii) coverage under any Required Insurance Policy would be
adversely  affected,  (iii) the  Mortgage  Note does not  include a  due-on-sale

                                      -14-

<PAGE>

clause or (iv) nonenforcement is otherwise permitted hereunder,  the Servicer is
authorized,  subject to Section 2.12(b), to take or enter into an assumption and
modification  agreement from or with the Person to whom such Mortgaged  Property
has been or is about to be  conveyed,  pursuant  to which  such  Person  becomes
liable under the Mortgage Note and, unless  prohibited by applicable  state law,
the Mortgagor remains liable thereon; provided that the BANA Mortgage Loan shall
continue to be covered (if so covered before the Servicer enters such agreement)
by the applicable Required Insurance Policies. The Servicer,  subject to Section
2.12(b),  is also  authorized  with the prior approval of the insurers under any
Required Insurance Policies to enter into a substitution of liability  agreement
with such  Person,  pursuant to which the original  Mortgagor  is released  from
liability and such Person is  substituted  as Mortgagor and becomes liable under
the Mortgage  Note.  Notwithstanding  the  foregoing,  the Servicer shall not be
deemed to be in default  under this  Section  2.12 by reason of any  transfer or
assumption which it reasonably believes it is restricted by law from preventing,
for any reason whatsoever.

     (b) Subject to the Servicer's duty to enforce any due-on-sale clause to the
extent set forth in Section 2.12(a),  in any case in which a Mortgaged  Property
has been  conveyed to a Person by a Mortgagor,  and such Person is to enter into
an assumption agreement or modification  agreement or supplement to the Mortgage
Note or  Mortgage  or if an  instrument  of release is  required  releasing  the
Mortgagor  from  liability on the BANA Mortgage Loan, the Servicer shall prepare
and  execute  the  assumption  agreement  with the Person to whom the  Mortgaged
Property is to be conveyed and such modification  agreement or supplement to the
Mortgage Note or Mortgage or other instruments as are reasonable or necessary to
carry out the terms of the Mortgage Note or Mortgage or otherwise to comply with
any  applicable  laws  regarding  assumptions  or the transfer of the  Mortgaged
Property to such Person.  In connection  with any such  assumption,  no material
term of the Mortgage Note may be changed. In addition,  the substitute Mortgagor
and the Mortgaged Property must be acceptable to the Servicer in accordance with
its  underwriting  standards  as  then  in  effect.   Together  with  each  such
substitution,  assumption or other  agreement or instrument,  the Servicer shall
execute an Officer's  Certificate signed by a Servicing Officer stating that the
requirements  of this  subsection  have been met. The Servicer  shall notify the
Master  Servicer  and the  Trustee  that any  such  substitution  or  assumption
agreement has been  completed by forwarding  to the Master  Servicer,  who shall
forward to the Trustee (or at the  direction  of the Trustee,  the  Custodian) a
copy of the  Officer's  Certificate  described in the previous  sentence and the
original of such substitution or assumption agreement,  which in the case of the
original  shall  be added  to the  related  Mortgage  File  and  shall,  for all
purposes,  be  considered a part of such Mortgage File to the same extent as all
other documents and instruments  constituting a part thereof.  Any fee collected
by the Servicer for entering  into an assumption  or  substitution  of liability
agreement may be retained by it as additional servicing compensation.

Section 2.13.   Realization Upon Defaulted Mortgage Loans; REO Property.
                --------------------------------------------------------

     The Servicer  shall use  reasonable  efforts to foreclose upon or otherwise
comparably  convert the ownership of Mortgaged  Properties  securing such of the
BANA  Mortgage  Loans as come into and  continue  in default  and as to which no
satisfactory  arrangements can be made for collection of delinquent payments. In
connection with such foreclosure or other conversion,  the Servicer shall follow
Customary  Servicing  Procedures and shall meet the  requirements of the insurer

                                      -15-

<PAGE>

under any Required Insurance Policy.  Notwithstanding the foregoing,  a Servicer
shall not be required to expend its own funds in connection with any foreclosure
or towards the  restoration of any Mortgaged  Property unless it shall determine
(i) that such  restoration  and/or  foreclosure  will  increase  the proceeds of
liquidation  of the BANA  Mortgage  Loan after  reimbursement  to itself of such
expenses and (ii) that such expenses will be recoverable to it through  proceeds
of the  liquidation  of the BANA Mortgage Loan  (respecting  which it shall have
priority for purposes of withdrawals from the BANA Custodial Account).  Any such
expenditures shall constitute Servicing Advances for purposes of this Agreement.

     With respect to any REO Property,  the deed or certificate of sale shall be
taken in the name of the Trust for the benefit of the Certificateholders, or its
nominee,  on behalf of the  Certificateholders.  The name of the Trust  shall be
placed on the title to such REO  Property.  The  Servicer  shall ensure that the
title to such REO Property references this Agreement. Pursuant to its efforts to
sell such REO  Property,  the Servicer  shall either  itself or through an agent
selected by it manage,  conserve,  protect and operate  such REO Property in the
same manner that it manages,  conserves,  protects and operates other foreclosed
property for its own account and in the same manner that similar property in the
same locality as the REO Property is managed.  Incident to its  conservation and
protection of the interests of the Certificateholders, the Servicer may rent the
same,  or any  part  thereof,  as it deems  to be in the  best  interest  of the
Certificateholders  for the period prior to the sale of such REO  Property.  The
Servicer  shall prepare for and deliver to the Master  Servicer a statement with
respect  to each REO  Property  serviced  by it that has  been  rented,  if any,
showing the  aggregate  rental  income  received  and all  expenses  incurred in
connection  with the  management  and  maintenance  of such REO Property at such
times as is  necessary  to  enable  the  Trustee  to comply  with the  reporting
requirements of the REMIC Provisions; provided, however, that the Servicer shall
have no duty to rent any REO  Property  on behalf of the Trust.  The net monthly
rental  income,  if any,  from such REO Property  shall be deposited in the BANA
Custodial  Account no later  than the close of  business  on each  Determination
Date. The Servicer shall perform,  with respect to the BANA Mortgage Loans,  the
tax  reporting and  withholding  required by Sections 1445 and 6050J of the Code
with respect to foreclosures  and  abandonments,  the tax reporting  required by
Section 6050H of the Code with respect to the receipt of mortgage  interest from
individuals  and, if required by Section  6050P of the Code with  respect to the
cancellation of indebtedness by certain  financial  entities,  by preparing such
tax and information returns as may be required, in the form required.

     If the  Trust  acquires  any  Mortgaged  Property  as  described  above  or
otherwise  in  connection  with a  default  or a  default  which  is  reasonably
foreseeable  on a BANA  Mortgage  Loan,  the  Servicer  shall  dispose  of  such
Mortgaged  Property  prior to the end of the third  calendar year  following the
year of its acquisition by the Trust (such period, the "REO Disposition Period")
unless (A) the Master Servicer, the Securities  Administrator,  on behalf of the
Trustee,  and the  Trustee  shall have been  supplied  by the  Servicer  with an
Opinion of Counsel to the effect that the holding by the Trust of such Mortgaged
Property  subsequent  to the REO  Disposition  Period  will  not  result  in the
imposition of taxes on "prohibited  transactions" (as defined in Section 860F of
the  Code) on any  REMIC or cause  any  REMIC  Estate  to fail to  qualify  as a
separate REMIC at any time that any  Certificates  are  outstanding,  or (B) the
Master Servicer,  on behalf of the Trustee (at the Servicer's  expense),  or the
Servicer shall have applied for and obtained, prior to the expiration of the REO
Disposition  Period,  an extension of the REO  Disposition  Period in the manner
contemplated by Section  856(e)(3) of the Code. If such an Opinion of Counsel is

                                      -16-

<PAGE>

provided or such an exemption  is obtained,  the Trust may continue to hold such
Mortgaged  Property  (subject to any  conditions  contained  in such  Opinion of
Counsel) for the applicable period.  Notwithstanding any other provision of this
Agreement,  no  Mortgaged  Property  acquired  by the Trust  shall be rented (or
allowed to continue to be rented) or otherwise used for the production of income
by or on  behalf of the Trust in such a manner  or  pursuant  to any terms  that
would (i) cause such  Mortgaged  Property  to fail to  qualify  as  "foreclosure
property"  within the meaning of Section  860G(a)(8) of the Code or (ii) subject
any REMIC to the  imposition of any federal,  state or local income taxes on the
income earned from such Mortgaged  Property under Section 860G(c) of the Code or
otherwise,  unless the Servicer has agreed to  indemnify  and hold  harmless the
Trust with  respect to the  imposition  of any such taxes.  The  Servicer  shall
identify to the Master Servicer and the Securities  Administrator  any Mortgaged
Property  relating to a BANA  Mortgage  Loan held by the Trust for 30 months for
which no plans to dispose of such  Mortgaged  Property by the Servicer have been
made.  After  delivery of such  identification,  the Servicer  shall  proceed to
dispose of any such  Mortgaged  Property  by holding a  commercially  reasonable
auction for such property.

     The  income  earned  from  the  management  of any REO  Properties,  net of
reimbursement to the Servicer for expenses  incurred  (including any property or
other  taxes)  in  connection  with  such  management  and  net of  unreimbursed
Servicing Fees, Monthly Advances and Servicing Advances, shall be applied to the
payment of  principal  of and interest on the related  defaulted  BANA  Mortgage
Loans  (solely for the purposes of allocating  principal and interest,  interest
shall be treated  as  accruing  as though  such BANA  Mortgage  Loans were still
current)  and  all  such  income  shall  be  deemed,  for all  purposes  in this
Agreement,  to be payments on account of  principal  and interest on the related
Mortgage Notes and shall be deposited into the BANA  Custodial  Account.  To the
extent the net income  received  during any  calendar  month is in excess of the
amount attributable to amortizing  principal and accrued interest at the related
Mortgage  Interest  Rate on the related  BANA  Mortgage  Loan for such  calendar
month,  such excess shall be considered to be a partial  prepayment of principal
of the related BANA Mortgage Loan.

     The proceeds from any  liquidation  of a BANA Mortgage Loan, as well as any
income from an REO Property, will be applied in the following order of priority:
first, to reimburse the Servicer for any related unreimbursed Servicing Advances
and  Servicing  Fees;  second,  to reimburse  the Servicer for any  unreimbursed
Monthly   Advances  and  to  reimburse  the  BANA  Custodial   Account  for  any
Nonrecoverable  Advances (or portions thereof) that were previously withdrawn by
the Servicer  pursuant to Section  2.10(iii)  that related to such BANA Mortgage
Loan;  third,  to accrued and unpaid  interest (to the extent no Monthly Advance
has been made for such amount or any such Monthly  Advance has been  reimbursed)
on the BANA Mortgage  Loan or related REO Property,  at the Mortgage Rate to the
Due Date  occurring  in the  month in which  such  amounts  are  required  to be
distributed;  and fourth,  as a recovery of principal of the BANA Mortgage Loan.
Excess Proceeds, if any, from the liquidation of a Liquidated Mortgage Loan will
be retained by the Servicer as  additional  servicing  compensation  pursuant to
Section 2.16.

                                      -17-

<PAGE>

Section 2.14.   Trustee to Cooperate; Release of Mortgage Files.
                ------------------------------------------------

     Upon the payment in full of any BANA  Mortgage  Loan, or the receipt by the
Servicer  of a  notification  that  payment in full will be escrowed in a manner
customary  for  such  purposes,   the  Servicer  or  the  Master  Servicer  will
immediately  notify the  Trustee  (or,  at the  direction  of the  Trustee,  the
Custodian) by delivering,  or causing to be delivered,  two copies (one of which
will be returned to the Servicer with the Mortgage File of a Request for Release
(which may be delivered in an  electronic  format  acceptable to the Trustee and
the Servicer or the Master Servicer).  Upon receipt of such request, the Trustee
or the Custodian,  as  applicable,  shall within seven Business Days release the
related Mortgage File to the Servicer. The Trustee shall deliver to the Servicer
the Mortgage Note with written evidence of cancellation thereon. If the Mortgage
has been recorded in the name of MERS or its designee,  the Servicer  shall take
all  necessary  action to reflect the release of the  Mortgage on the records of
MERS.  Expenses  incurred in connection  with any instrument of  satisfaction or
deed of reconveyance shall be chargeable to the related Mortgagor.  From time to
time and as shall be  appropriate  for the servicing or  foreclosure of any BANA
Mortgage Loan,  including for such purpose  collection under any policy of flood
insurance,  any fidelity bond or errors or omissions policy, or for the purposes
of effecting a partial  release of any  Mortgaged  Property from the lien of the
Mortgage or the making of any  corrections  to the Mortgage Note or the Mortgage
or any of the other documents  included in the Mortgage File, the Trustee or the
Custodian,  as  applicable,  shall,  upon  delivery to the  Trustee  (or, at the
direction of the Trustee,  the  Custodian) of a Request for Release  signed by a
Servicing  Officer,  release the Mortgage File within seven Business Days to the
Servicer. Subject to the further limitations set forth below, the Servicer shall
cause the  Mortgage  File so  released  to be  returned  to the  Trustee  or the
Custodian,  as  applicable,  when the need  therefor  by the  Servicer no longer
exists, unless the BANA Mortgage Loan is liquidated and the proceeds thereof are
deposited  in the BANA  Custodial  Account,  in which  case the  Servicer  shall
deliver to the Trustee or the Custodian,  as applicable,  a Request for Release,
signed by a Servicing Officer.

     Upon  prepayment in full of any BANA Mortgage Loan or the receipt of notice
that funds for such purpose have been placed in escrow,  the Servicer shall give
an instrument of  satisfaction  (or  Assignment  of Mortgage  without  recourse)
regarding the Mortgaged  Property  relating to such BANA  Mortgage  Loan,  which
instrument of satisfaction or Assignment of Mortgage,  as the case may be, shall
be delivered to the Person entitled thereto against receipt of the prepayment in
full. If the Mortgage is  registered  in the name of MERS or its  designee,  the
Servicer  shall take all necessary  action to reflect the release on the records
of MERS. In lieu of executing such satisfaction or Assignment of Mortgage, or if
another  document is required to be executed by the  Trustee,  the  Servicer may
deliver or cause to be delivered to the Trustee, for signature,  as appropriate,
any court pleadings, requests for trustee's sale or other documents necessary to
effectuate  such  foreclosure  or any legal  action  brought to obtain  judgment
against  the  Mortgagor  on the  Mortgage  Note or the  Mortgage  or to obtain a
deficiency  judgment or to enforce any other remedies or rights  provided by the
Mortgage Note or the Mortgage or otherwise available at law or in equity.

Section 2.15.   Documents, Records and Funds in Possession of the Servicer to be
                ----------------------------------------------------------------
                Held for the Trustee.
                ---------------------

     The  Servicer  shall  transmit to the Trustee or, at the  direction  of the
Trustee,  the  Custodian,  as  required  by this  Agreement  all  documents  and
instruments  in respect of a BANA  Mortgage  Loan serviced by it coming into the
possession  of the  Servicer  from time to time and shall  account  fully to the
Trustee for any funds received by the Servicer or which  otherwise are collected
by the Servicer as Liquidation  Proceeds or Insurance Proceeds in respect of any

                                      -18-

<PAGE>

BANA Mortgage Loan. The documents  constituting the Servicing File shall be held
by the Servicer as custodian and bailee for the Trustee.  All Mortgage Files and
funds  collected or held by, or under the control of, the Servicer in respect of
any BANA Mortgage  Loans,  whether from the collection of principal and interest
payments or from Liquidation  Proceeds,  including but not limited to, any funds
on deposit in the BANA Custodial Account,  shall be held by the Servicer for and
on behalf of the Trustee and shall be and remain the sole and exclusive property
of the Trustee,  subject to the  applicable  provisions of this  Agreement.  The
Servicer  also agrees that it shall not knowingly  create,  incur or subject any
Mortgage  File or any funds that are  deposited in the BANA  Custodial  Account,
Master  Servicer  Custodial  Account  or any Escrow  Account,  or any funds that
otherwise are or may become due or payable to the Trustee for the benefit of the
Certificateholders,  to any claim, lien, security interest, judgment, levy, writ
of attachment or other encumbrance  created by the Servicer,  or assert by legal
action or otherwise  any claim or right of setoff  against any Mortgage  File or
any funds  collected on, or in connection  with, a BANA Mortgage  Loan,  except,
however,  that the Servicer shall be entitled to set off against and deduct from
any such funds any amounts  that are  properly  due and payable to the  Servicer
under this Agreement.

Section 2.16.   Servicing Compensation.
                -----------------------

     The  Servicer  shall be entitled  out of each payment of interest on a BANA
Mortgage  Loan (or portion  thereof)  included in the Trust  Estate to retain or
withdraw  from the BANA  Custodial  Account an amount equal to the Servicing Fee
for such Distribution Date.

     Additional   servicing   compensation  in  the  form  of  Excess  Proceeds,
prepayment  penalties,  assumption fees, late payment charges and all income and
gain  net of any  losses  realized  from  Permitted  Investments  and all  other
customary  and  ancillary  income  and fees  shall be  retained  by the  related
Servicer  to the  extent  not  required  to be  deposited  in the  related  BANA
Custodial Account pursuant to Section 2.07(b). The Servicer shall be required to
pay all expenses  incurred by it in  connection  with its  servicing  activities
hereunder  and  shall  not be  entitled  to  reimbursement  therefor  except  as
specifically provided in this Agreement.

     Notwithstanding the foregoing, with respect to the payment of the Servicing
Fee on any Distribution  Date, the aggregate  Servicing Fee for the Servicer for
such  Distribution Date shall be reduced (but not below zero) by an amount equal
to the lesser of (a) the  Prepayment  Interest  Shortfall for such  Distribution
Date  relating to the BANA  Mortgage  Loans  serviced by such  Servicer  and (b)
one-twelfth  of 0.25% of the  aggregate  Stated  Principal  Balance of such BANA
Mortgage Loans for such  Distribution  Date (any such  reduction,  "Compensating
Interest").

Section 2.17.   Annual Statement as to Compliance.
                ----------------------------------

     The Servicer shall deliver to the Master  Servicer (and the Master Servicer
will  forward to the  Trustee  and each  Rating  Agency),  no later than March 5
following the end of each calendar year commencing with March 2007, an Officer's
Certificate  in the form required by Item 1123 of  Regulation  AB, to the effect
that (i) an  authorized  officer of the  Servicer  has reviewed (or a review has
been made under his or her supervision of) the Servicer's  activities under this
Agreement  during the prior calendar year and (ii) to the best of such officer's
knowledge,  based on such review, the Servicer has fulfilled all its obligations
under this Agreement in all material respects throughout such year, or, if there

                                      -19-

<PAGE>

has been a default in the  fulfillment  of any such  obligation  in any material
respect,  specifying  each such default known to such officer and the nature and
status thereof.

Section 2.18.   Annual Independent Public Accountants' Servicing Statement;
                -----------------------------------------------------------
                Financial Statements; Provision of Additional Information.
                ----------------------------------------------------------

     On or  before  March 5 of each  calendar  year,  commencing  in  2007,  the
Servicer shall:

     (a) deliver to the Master  Servicer and the Depositor a report (in form and
substance  reasonably  satisfactory  to the Master  Servicer and the  Depositor)
regarding the Servicer's  assessment of compliance  with the Servicing  Criteria
during the immediately  preceding  calendar year, as required under Rules 13a-18
and 15d-18 of the Exchange Act and Item 1122 of Regulation AB. Such report shall
be  addressed  to the  Master  Servicer  and  the  Depositor  and  signed  by an
authorized  officer of the Servicer,  and shall address each of the  "Applicable
Servicing Criteria" specified on Exhibit E hereto;

     (b) Not later than March 5th of each  calendar  year,  following the end of
each calendar year  commencing  with March 2007,  the Servicer,  at its expense,
shall  cause a  registered  public  accounting  firm  which is a  member  of the
institute of certified  public  accountants to furnish to the Master  Servicer a
report by such  accounting  firm that attests to, and reports on, the assessment
made by the Servicer  pursuant to this Section 2.18, as required by Rules 13a-18
and 15d-18 under the  Exchange  Act,  and Item  1122(b) of  Regulation  AB. Such
attestation  shall be in  accordance  with Rule  1-02(a)(3)  and Rule 2-02(g) of
Regulation S-X under the Securities Act and the Exchange Act;

     (c)  cause  each  Subservicer,  and each  Subcontractor  determined  by the
Servicer  pursuant  to  Section  2.02  to be  "participating  in  the  servicing
function"  within the meaning of Item 1122 of  Regulation  AB and deliver to the
Master  Servicer and the Depositor an assessment of compliance and  accountants'
attestation as and when provided in paragraphs (a) and (b) of this Section; and

     (d)  with  respect  to  any  year  in  which  a  certification   under  the
Sarbanes-Oxley Act of 2002, as amended,  is required to be given with respect to
the Trust Fund, deliver,  or cause each Subservicer and Subcontractor  described
in Section  2.18(c) to provide,  to the Depositor,  the Master  Servicer and any
other Person that will be responsible for signing the certification (a "Sarbanes
Certification") required by Rules 13a-14(d) and 15d-14(d) under the Exchange Act
(pursuant  to  Section  302 of the  Sarbanes-Oxley  Act of 2002) on behalf of an
asset-backed   issuer   with   respect  to  a   Securitization   Transaction   a
certification,  signed by the appropriate  officer of the Servicer,  in the form
attached hereto as Exhibit B. In addition, the Servicer shall indemnify and hold
harmless the Master  Servicer , and its officers,  directors and Affiliates from
and against any losses, damages, penalties,  fines, forfeitures,  reasonable and
necessary  legal fees and related costs,  judgments and other costs and expenses
arising out of or based upon any inaccuracy in the certification  provided by it
pursuant to Section  2.18(c),  any breach of its obligations  under Section 2.17
and  Section  2.18  or its  negligence,  bad  faith  or  willful  misconduct  in

                                      -20-

<PAGE>

connection therewith. If the indemnification  provided for herein is unavailable
or insufficient to hold harmless the Master Servicer and its officers, directors
and affiliates,  then the Servicer agrees that it shall contribute to the amount
paid or payable by the Master Servicer, its officers, directors or affiliates as
a result of the losses,  claims,  damages or liabilities of the Master Servicer,
its officers,  directors or affiliates in such  proportion as is  appropriate to
reflect the relative  fault of the Master  Servicer and its officers,  directors
and affiliates on the one hand and such Servicer on the other in connection with
a  breach  of  its  obligations  under  Section  2.17  or  Section  2.18  or its
negligence,  bad  faith or  willful  misconduct  in  connection  therewith.  The
obligations set forth in paragraphs (c) and (d) shall only apply with respect to
periods for which reports on Form 10-K will be filed for the Trust Fund.

Section 2.19.   Advances.
                ---------

     The Servicer shall determine on or before each  Determination  Date whether
it is required to make a Monthly Advance pursuant to the definition  thereof. If
the Servicer  determines it is required to make a Monthly Advance,  it shall, on
or before the  Remittance  Date,  either  (a)  deposit  into the BANA  Custodial
Account an amount equal to the Advance and/or (b) make an  appropriate  entry in
its  records  relating  to the BANA  Custodial  Account  that any portion of the
Amount Held for Future  Distribution in the BANA Custodial Account has been used
by the Servicer in discharge of its obligation to make any such Monthly Advance.
Any funds so applied  shall be replaced  by the  Servicer by deposit in the BANA
Custodial  Account  no later  than the close of  business  on the  Business  Day
preceding  the next  Remittance  Date.  The  Servicer  shall be  entitled  to be
reimbursed  from the BANA  Custodial  Account for all  Advances of its own funds
made pursuant to this Section 2.19 as provided in Section 2.10.  The  obligation
to make Monthly  Advances with respect to any BANA Mortgage Loan shall  continue
until  the  ultimate  disposition  of the REO  Property  or  Mortgaged  Property
relating  to such BANA  Mortgage  Loan.  The  Servicer  shall  inform the Master
Servicer and the Securities  Administrator  of the amount of the Monthly Advance
to be made by it no later than the related Remittance Date.

     The  Servicer  shall  deliver to the  Master  Servicer  and the  Securities
Administrator on the Determination Date an Officer's  Certificate of a Servicing
Officer  indicating the amount of any proposed Monthly Advance determined by the
Servicer  to  be a  Nonrecoverable  Advance.  Notwithstanding  anything  to  the
contrary,  the  Servicer  shall not be required  to make any Monthly  Advance or
Servicing Advance that would be a Nonrecoverable Advance.

Section 2.20.   Modifications, Waivers, Amendments and Consents.
                ------------------------------------------------

     (a)  Subject  to  this  Section  2.20,   the  Servicer  may  agree  to  any
modification, waiver, forbearance, or amendment of any term of any BANA Mortgage
Loan without the consent of the Master Servicer,  the Securities  Administrator,
the Trustee or any Certificateholder.  All modifications,  waivers, forbearances
or  amendments  of any BANA  Mortgage  Loan  shall be in  writing  and  shall be
consistent with Customary Servicing Procedures.

     (b) The Servicer  shall not agree to enter into,  and shall not enter into,
any modification, waiver (other than a waiver referred to in Section 2.12, which
waiver, if any, shall be governed by Section 2.12),  forbearance or amendment of
any term of any BANA Mortgage Loan if such modification, waiver, forbearance, or
amendment would:

                                      -21-

<PAGE>

          (i) affect the amount or timing of any related  payment of  principal,
     interest or other amount payable thereunder;

          (ii) in the Servicer's  judgment,  materially  impair the security for
     such BANA  Mortgage  Loan or reduce  the  likelihood  of timely  payment of
     amounts due thereon; or

          (iii)  otherwise  constitute a "significant  modification"  within the
     meaning of Treasury Regulations Section 1.860G-2(b);

unless,  in either case, (A) such BANA Mortgage Loan is 90 days or more past due
or (B)  the  Servicer  delivers  to  the  Master  Servicer  and  the  Securities
Administrator  an  Opinion of  Counsel  to the  effect  that such  modification,
waiver,  forbearance or amendment would not affect the REMIC status of any REMIC
and, in either case,  such  modification,  waiver,  forbearance  or amendment is
reasonably  likely to  produce  a greater  recovery  with  respect  to such BANA
Mortgage Loan than would liquidation.  Notwithstanding the foregoing, no Opinion
of Counsel need be delivered if the purpose of the modification is to reduce the
Monthly Payment on a Mortgage Loan as a result of a partial Principal Prepayment
provided  that the Mortgage  Loan is fully  amortized  by its original  maturity
date.  Subject to  Customary  Servicing  Procedures,  the  Servicer may permit a
forbearance for a BANA Mortgage Loan which in the Servicer's judgment is subject
to imminent default.

     (c)  Any  payment  of   interest,   which  is  deferred   pursuant  to  any
modification,  waiver,  forbearance or amendment permitted hereunder, shall not,
for  purposes  hereof,  including,   without  limitation,   calculating  monthly
distributions to Certificateholders, be added to the unpaid principal balance of
the related  BANA  Mortgage  Loan,  notwithstanding  that the terms of such BANA
Mortgage Loan or such modification, waiver or amendment so permit.

     (d) The Servicer may, as a condition to granting any request by a Mortgagor
for consent,  modification,  waiver,  forbearance or amendment,  the granting of
which is within the Servicer's discretion pursuant to the BANA Mortgage Loan and
is permitted by the terms of this Agreement,  require that such Mortgagor pay to
the Servicer,  as additional servicing  compensation,  a reasonable or customary
fee for the  additional  services  performed in  connection  with such  request,
together with any related costs and expenses  incurred by it, which amount shall
be retained by the Servicer as additional servicing compensation.

     (e) The  Servicer  shall  notify the Master  Servicer,  in writing,  of any
modification,  waiver, forbearance or amendment of any term of any BANA Mortgage
Loan  and the date  thereof,  and  shall  deliver  to the  Trustee  (or,  at the
direction of the Trustee,  the  Custodian)  for deposit in the related  Mortgage
File, an original  counterpart of the agreement  relating to such  modification,
waiver, forbearance or amendment, promptly (and in any event within ten Business
Days)  following  the execution  thereof;  provided,  however,  that if any such
modification,  waiver, forbearance or amendment is required by applicable law to
be recorded, the Servicer (i) shall deliver to the Trustee (or, at the direction
of the Trustee,  the  Custodian)  a copy  thereof and (ii) shall  deliver to the
Trustee (or, at the direction of the Trustee, the Custodian) such document, with
evidence of notification upon receipt thereof from the public recording office.

                                      -22-

<PAGE>

Section 2.21.   Reports to the Securities and Exchange Commission.
                --------------------------------------------------

     (a) The Servicer  shall  reasonably  cooperate  with the  Depositor and the
Master  Servicer  in  connection  with  the  Trust's  satisfying  its  reporting
requirements under the Exchange Act.

     (b) The Servicer hereby agrees to reasonably  cooperate to enable the Trust
to fully comply with all Securities and Exchange  Commission  ("SEC") disclosure
and reporting requirements in effect from time to time with respect to the Trust
and any securities  representing  ownership  interests in or backed by assets of
the Trust, including without limitation, Regulation AB.

     (c) The Servicer  hereby  acknowledges  and agrees that the Depositor,  the
Master Servicer and the Securities  Administrator are relying on its performance
of its  obligations  under  Sections  2.17 and 2.18 in  order to  perform  their
respective   obligations  under  Section  3.22  of  the  Pooling  and  Servicing
Agreement.

     (d) The Servicer shall notify the Master Servicer of any proceedings of the
type  described  in Item 1117 of  Regulation  AB,  together  with a  description
thereof,  within two  Business  Days of the  Servicer's  knowledge  thereof.  In
addition,  the Servicer shall notify the Master Servicer of any  affiliations or
relationships  that develop  following the Closing Date between the Servicer and
any of parties listed in Item 1119 of Regulation AB, together with a description
thereof, within two Business Days of the Servicer's knowledge thereof.

     (e) In addition to such information as the Servicer is obligated to provide
pursuant to other provisions of this Agreement, not later than ten days prior to
the deadline for the filing of any  distribution  report on Form 10-D in respect
of any  securitization  transaction that includes any of the BANA Mortgage Loans
serviced by the Servicer or any Subservicer,  the Servicer or such  Subservicer,
as  applicable,  shall,  to the  extent the  Servicer  or such  Subservicer  has
knowledge,  provide to the party responsible for filing such report  (including,
if  applicable,  the Master  Servicer)  notice of the  occurrence  of any of the
following events along with all information, data, and materials related thereto
as may be required to be  included  in the related  distribution  report on Form
10-D (as specified in the provisions of Regulation AB referenced below):

          (i) any material  modifications,  extensions  or waivers of pool asset
     terms, fees,  penalties or payments during the distribution  period or that
     have cumulatively become material over time (Item 1121(a)(11) of Regulation
     AB);

          (ii) material breaches of pool asset  representations or warranties or
     transaction covenants (Item 1121(a)(12) of Regulation AB); and

          (iii)  information  regarding new  asset-backed  securities  issuances
     backed by the same pool assets,  any material  pool asset changes (such as,
     additions,  substitutions  or  repurchases),  and any  material  changes in
     origination, underwriting or other criteria for acquisition or selection of
     pool assets (Item 1121(a)(14) of Regulation AB).

                                      -23-

<PAGE>

Upon  request,  the  Servicer  shall  provide  to the  Master  Servicer  and the
Depositor  evidence of the authorization of the person signing any certification
or statement, copies or other evidence of Fidelity Bond Insurance and Errors and
Omission  Insurance policy,  financial  information and reports,  and such other
information  related to the Servicer or any  Subservicer or the Servicer or such
Subservicer's performance hereunder.

The  obligations  set forth in paragraphs (d) and (e) of this Section shall only
apply with  respect to periods for which  reports are  required to be filed with
respect to the Trust under the Exchange Act.

Section 2.22.   Lost Instruments Affidavit and Indemnity.
                -----------------------------------------

     With respect to any BANA Mortgage  Loan, if a "lost  instruments  affidavit
and  indemnity"  or any  equivalent  document  is  required  pursuant to Section
2.01(b) of the Pooling and  Servicing  Agreement,  the Servicer  shall  prepare,
execute and deliver or cause to be prepared,  executed and delivered,  on behalf
of the Trust, such a document to the public recording office.

Section 2.23.   Buy-Down Account; Application of Buy-Down Funds.
                ------------------------------------------------

     In addition to the BANA Custodial Account, if any of the Mortgage Loans are
Buy-Down  Mortgage  Loans,  the Servicer shall establish and maintain a Buy-Down
Account and shall deposit therein all Buy-Down Funds not later than the Business
Day following the day of receipt and posting by the Servicer. The Servicer shall
keep and maintain a separate  account for each  Buy-Down  Mortgage  Loan for the
purpose of accounting for deposits to and withdrawals from the Buy-Down Account.
The Servicer shall invest the funds in the Buy-Down Account in investments which
are  Permitted  Investments.   All  income  and  gain  realized  from  any  such
investment,  to the extent not required by the applicable Buy-Down Agreements to
be applied to pay interest on the related Buy-Down Mortgage Loans,  shall be for
the  benefit of the  Servicer.  The amount of any losses  incurred in respect of
such investments  shall be deposited in the Buy-Down Account by the Servicer out
of its own funds immediately as realized.

     With  respect to each  Buy-Down  Mortgage  Loan,  on the  Business Day next
following receipt of the Mortgagor's  required monthly payment under the related
Buy-Down  Agreement,  the Servicer shall withdraw from the Buy-Down  Account and
deposit in immediately  available funds in the BANA Custodial  Account an amount
which,  when added to such  Mortgagor's  payment,  will  equal the full  monthly
payment due under the related Mortgage Note.

     Upon  termination  of a  Buy-Down  Agreement,  no  further  Buy-Down  Funds
relating  thereto shall be deposited  into the BANA Custodial  Account,  and the
Servicer may withdraw  the related  Buy-Down  Funds which remain in the Buy-Down
Account and distribute such funds as provided by such Buy-Down Agreement.

                                      -24-

<PAGE>

                                   ARTICLE III

                       SERVICER'S CERTIFICATE; REMITTANCES

Section 3.01.   Servicer's Certificate.
                -----------------------

     Each month,  not later than 12:00 noon Eastern time on the 5th Business Day
of such  month (or if such day is not a Business  Day,  the  following  Business
Day), the Servicer shall deliver to the Securities  Administrator and the Master
Servicer, a Servicer's  Certificate (in substance and format mutually acceptable
to the Servicer, the Securities Administrator and the Master Servicer) certified
by a Servicing  Officer  setting forth the information  reasonably  necessary in
order  for each of the  Securities  Administrator  and the  Master  Servicer  to
perform its respective  obligations  under the Pooling and Servicing  Agreement,
including a delinquency  report  substantially  in the form set forth in Exhibit
C-1, a monthly remittance advice  substantially in the form set forth in Exhibit
C-2, and a realized loss report  substantially  in the form set forth in Exhibit
C-3, or such other reporting  formats agreed to by the Servicer,  the Securities
Administrator  and the Master Servicer each in a mutually  agreeable  electronic
format, as to the remittance on such Remittance Date and as to the period ending
on the  last  day of the  month  preceding  such  Remittance  Date.  Each of the
Securities  Administrator and the Master Servicer may conclusively rely upon the
information  contained in the Servicer's  Certificate for all purposes hereunder
and shall have no duty to verify or re-compute any of the information  contained
therein.

Section 3.02.   Remittances.
                ------------

     On each  Remittance  Date,  the  Servicer  shall remit by wire  transfer of
immediately  available  funds to the  Master  Servicer  an  amount  equal to the
portion of the Pool Distribution  Amount relating to the BANA Mortgage Loans and
any other  amounts  due to the Master  Servicer  under this  Agreement  for such
Distribution  Date,  to the  extent on  deposit.  The  Servicer  shall send wire
remittances to the Master Servicer pursuant to the following wire  instructions:
WELLS FARGO BANK,  N.A.,  ABA#  121000248,  FOR CREDIT TO: SAS  CLEARING,  ACCT:
3970771416, FFC TO: BAFC 2006-7 #50960000.

                                   ARTICLE IV

                                  THE SERVICER

Section 4.01.   Liabilities of the Servicer.
                ----------------------------

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

Section 4.02.   Merger or Consolidation of the Servicer.
                ----------------------------------------

     The  Servicer  will each keep in full  effect  its  existence,  rights  and
franchises as a separate entity under the laws governing its  organization,  and
will  obtain  and  preserve  its  qualification  to  do  business  as a  foreign
corporation  in each  jurisdiction  in which such  qualification  is or shall be
necessary to protect the  validity and  enforceability  of this  Agreement,  the
Certificates  or any of the BANA Mortgage  Loans and to perform its duties under
this Agreement.

                                      -25-

<PAGE>

     Any Person into which the  Servicer may be merged or  consolidated,  or any
corporation  resulting  from any merger or  consolidation  to which the Servicer
shall be a party,  or any Person  succeeding  to the  business of the  Servicer,
shall be the  successor of the  Servicer,  hereunder,  without the  execution or
filing of any paper or any further act on the part of any of the parties hereto,
anything herein to the contrary  notwithstanding;  provided,  however,  that the
successor  or  surviving  Person to the  Servicer  shall be qualified to service
mortgage loans on behalf of FNMA or FHLMC.

Section 4.03.   Limitation on Liability of the Servicer.
                ----------------------------------------

     None of the Servicer or any of the directors, officers, employees or agents
of the  Servicer  shall  be under  any  liability  to the  Trust  Estate  or the
Certificateholders for any action taken or for refraining from the taking of any
action in good faith  pursuant  to this  Agreement,  or for errors in  judgment;
provided,  however,  that this  provision  shall not protect the Servicer or any
such Person against any breach of warranties or  representations  made herein or
any liability which would otherwise be imposed by reason of willful misfeasance,
bad  faith or gross  negligence  in the  performance  of  duties or by reason of
reckless  disregard of obligations  and duties  hereunder.  The Servicer and any
director,  officer,  employee or agent of Servicer may rely in good faith on any
document of any kind prima facie  properly  executed and submitted by any Person
respecting  any  matters  arising  hereunder.  The  Servicer  and any  director,
officer,  employee or agent of the Servicer  shall be  indemnified  by the Trust
Estate and held  harmless  against any loss,  liability  or expense  incurred in
connection with any legal action relating to this Agreement or the Certificates,
other than any loss,  liability or expense related to any specific BANA Mortgage
Loan or BANA Mortgage Loans (except as any such loss, liability or expense shall
be otherwise reimbursable pursuant to this Agreement) and any loss, liability or
expense incurred by reason of willful misfeasance, bad faith or gross negligence
in the  performance  of duties  hereunder or by reason of reckless  disregard of
obligations and duties hereunder. The Servicer shall not be under any obligation
to appear in,  prosecute or defend any legal action which is not  incidental  to
its respective  duties under this Agreement and which in its opinion may involve
it in any expense or liability;  provided, however, that the Servicer may in its
discretion undertake any such action which it may deem necessary or desirable in
respect to this  Agreement  and the rights and duties of the parties  hereto and
the  interests of the  Certificateholders  hereunder.  In such event,  the legal
expenses and costs of such action and any liability resulting therefrom shall be
expenses,  costs and liabilities of the Trust Estate,  and the Servicer shall be
entitled  to be  reimbursed  therefor  out of amounts  attributable  to the BANA
Mortgage Loans on deposit in the BANA  Custodial  Account as provided by Section
2.10.

Section 4.04.   Servicer Not to Resign.
                -----------------------

     Subject to the  provisions of Section 4.02,  the Servicer  shall not resign
from its obligations  and duties hereby imposed on it except upon  determination
that its duties  hereunder are no longer  permissible  under applicable law. Any
such determination permitting the resignation of the Servicer shall be evidenced
by an Opinion of Counsel to such effect  delivered  to the Master  Servicer.  No
such  resignation  by the  Servicer  shall  become  effective  until the  Master
Servicer  or  a  successor   Servicer   shall  have  assumed   such   Servicer's
responsibilities and obligations in accordance with Section 5.02.

                                      -26-

<PAGE>

Section 4.05.   Representations, Warranties and Covenants of the Servicer.
                ----------------------------------------------------------

     (a) The Servicer hereby makes the following  representations and warranties
to the Depositor,  the Master  Servicer,  the Securities  Administrator  and the
Trustee, as of the Closing Date:

          (i) The Servicer is a national  banking  association  duly  organized,
     validly  existing and in good standing  under the laws of the United States
     and has all  licenses  necessary  to carry  on its  business  as now  being
     conducted  and is licensed,  qualified  and in good standing in each of the
     states  where a  Mortgaged  Property  is  located if the laws of such state
     require licensing or qualification in order to conduct business of the type
     conducted by the Servicer.  The Servicer has power and authority to execute
     and deliver  this  Agreement  and to perform in  accordance  herewith;  the
     execution,  delivery  and  performance  of this  Agreement  (including  all
     instruments of transfer to be delivered  pursuant to this Agreement) by the
     Servicer and the consummation of the transactions  contemplated hereby have
     been  duly  and  validly   authorized.   This   Agreement,   assuming   due
     authorization,   execution  and  delivery  by  the  other  parties  hereto,
     evidences the valid,  binding and  enforceable  obligation of the Servicer,
     subject to applicable  law except as  enforceability  may be limited by (A)
     bankruptcy,    insolvency,    liquidation,     receivership,    moratorium,
     reorganization  or other  similar laws  affecting  the  enforcement  of the
     rights  of  creditors  and  (B)  general  principles  of  equity,   whether
     enforcement  is sought in a proceeding  in equity or at law. All  requisite
     corporate  action has been  taken by the  Servicer  to make this  Agreement
     valid and binding upon the Servicer in accordance with its terms.

          (ii) No consent, approval,  authorization or order is required for the
     transactions  contemplated  by this Agreement from any court,  governmental
     agency  or  body,  or  federal  or  state   regulatory   authority   having
     jurisdiction  over the Servicer is required or, if required,  such consent,
     approval,  authorization  or order has been or will,  prior to the  Closing
     Date, be obtained.

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

          (iv) There is no action, suit, proceeding or investigation pending or,
     to the best  knowledge  of the  Servicer,  threatened  against the Servicer
     which,  either  individually  or in  the  aggregate,  would  result  in any
     material adverse change in the business,  operations,  financial condition,
     properties or assets of the Servicer,  or in any material impairment of the

                                      -27-

<PAGE>

     right or ability of the Servicer to carry on its business  substantially as
     now  conducted  or which  would draw into  question  the  validity  of this
     Agreement  or the  Mortgage  Loans or of any action taken or to be taken in
     connection with the  obligations of the Servicer  contemplated  herein,  or
     which would materially  impair the ability of the Servicer to perform under
     the terms of this Agreement.

     (b) The  representations  and warranties made pursuant to this Section 4.05
shall survive  delivery of the Mortgage  Files to the Trustee for the benefit of
the Certificateholders.

Section 4.06.   REMIC Related Covenants.
                ------------------------

     For as long as the Trust shall exist,  the Servicer shall act in accordance
herewith to assure  continuing  treatment of each REMIC as a REMIC and avoid the
imposition of tax on any REMIC. In particular:

     (a) Except as otherwise  provided in the Code,  (i) the Servicer  shall not
contribute to the Trust Estate property unless substantially all of the property
held  in any  REMIC  constitutes  either  "qualified  mortgages"  or  "permitted
investments" as defined in Code Sections 860G(a)(3) and (5),  respectively,  and
(ii) no property  shall be  contributed  to either  REMIC after the start-up day
unless such  contribution  would not subject the Trust Estate to the 100% tax on
contributions  to a REMIC after the start-up  day of the REMICs  imposed by Code
Section 860G(d).

     (b) The Servicer shall not knowingly  accept, on behalf of the Trust Estate
any income from assets other than those permitted to be held by a REMIC.

     The Servicer shall not engage in a "prohibited  transaction" (as defined in
Code Section  860F(a)(2)),  except that,  with the prior written  consent of the
Master Servicer,  the Securities  Administrator and the Depositor,  the Servicer
may engage in the activities  otherwise  prohibited by the foregoing  paragraphs
(a) and (b);  provided  that the  Servicer  shall have  delivered  to the Master
Servicer and the  Securities  Administrator  an Opinion of Counsel to the effect
that such  transaction  will not result in the  imposition of a tax on any REMIC
and will not  disqualify  any REMIC from  treatment  as a REMIC;  and,  provided
further,  that the Servicer shall have  demonstrated to the  satisfaction of the
Master  Servicer  and the  Securities  Administrator  that such  action will not
adversely  affect the  rights of the  Holders  of the  Certificates,  the Master
Servicer  and the  Securities  Administrator  and  that  such  action  will  not
adversely impact the rating of the Certificates.

                                      -28-

<PAGE>

                                   ARTICLE V

                                    DEFAULT

Section 5.01.   Events of Default.
                ------------------

     If any one of the following events ("Events of Default") shall occur and be
continuing:

     (a) any failure by the  Servicer to deposit  amounts in the BANA  Custodial
Account in the amount and manner  provided herein so as to enable the Securities
Administrator  to distribute to Holders of Certificates  any payment required to
be made under the terms of such  Certificates and this Agreement (other than the
payments required to be made under Section 2.19); or

     (b) failure on the part of the  Servicer  duly to observe or perform in any
material  respect any other covenants or agreements of the Servicer set forth in
the Certificates or in this Agreement,  which covenants and agreements  continue
unremedied  for a period of 30 days  after the date on which  written  notice of
such failure,  requiring  the same to be remedied,  shall have been given to the
Servicer by the Master Servicer, the, Securities  Administrator,  the Trustee or
the Depositor,  or to the Servicer,  the Master  Servicer,  the  Depositor,  the
Securities  Administrator  and  the  Trustee  by  the  Holders  of  Certificates
evidencing  Voting  Rights  aggregating  not less  than 25% of all  Certificates
affected thereby; or

     (c) the  entry of a decree  or order by a court or  agency  or  supervisory
authority  having  jurisdiction  in  the  premises  for  the  appointment  of  a
conservator,  receiver or liquidator in any  insolvency,  readjustment  of debt,
marshalling  of assets  and  liabilities  or  similar  proceedings  against  the
Servicer,  or for the winding up or liquidation of the Servicer's  affairs,  and
the  continuance of any such decree or order unstayed and in effect for a period
of 60 consecutive days; or

     (d) the consent by the  Servicer to the  appointment  of a  conservator  or
receiver or liquidator in any insolvency,  readjustment of debt,  marshalling of
assets and liabilities or similar  proceedings of or relating to the Servicer or
of or relating to substantially all of its property; or the Servicer shall admit
in writing its  inability to pay its debts  generally as they become due, file a
petition  to take  advantage  of any  applicable  insolvency  or  reorganization
statute,  make an assignment  for the benefit of its  creditors,  or voluntarily
suspend payment of its obligations;

     (e) the failure of the Servicer to remit any Monthly Advance required to be
remitted  by the  Servicer  pursuant  to Section  2.19 which  failure  continues
unremedied  at 3:00 p.m.  Eastern  time on the Business Day prior to the related
Distribution Date;

     (f)  failure by the  Servicer to duly  perform,  within the  required  time
period,  its  obligations  under  Sections  2.17,  2.18 and 2.21,  which failure
continues  unremedied  for a period  of ten  (10)  days  after  the date of such
failure;

then, and in each and every such case (other than clause (e) hereof), so long as
an Event of Default  shall not have been  remedied by the  Servicer,  the Master
Servicer shall, pursuant to the Pooling and Servicing Agreement,  by notice then
given in writing to the Servicer and the Depositor,  terminate all of the rights
and  obligations  of the Servicer under this  Agreement.  If an Event of Default
described in clause (e) hereof shall occur, the Master Servicer shall, by notice
to the Servicer and the  Securities  Administrator,  terminate all of the rights
and  obligations  of the Servicer  under this  Agreement  and in and to the BANA
Mortgage  Loans and  proceeds  thereof  and the Master  Servicer  or a successor
Servicer  appointed  pursuant to Section  5.02 shall make the Advance  which the
Servicer failed to make. On or after the receipt by the Servicer of such written
notice,  all authority and power of the Servicer under this  Agreement,  whether
with respect to the Certificates or the BANA Mortgage Loans or otherwise,  shall
pass to and be vested in the Master Servicer  pursuant to and under this Section
5.01 and  Section  5.02(a),  unless and until  such time as the Master  Servicer

                                      -29-

<PAGE>

shall  appoint a successor  Servicer  pursuant  to Section  5.02,  and,  without
limitation,  the Master  Servicer is hereby  authorized and empowered to execute
and deliver, on behalf of the Servicer,  as  attorney-in-fact or otherwise,  any
and all documents and other instruments,  and to do or accomplish all other acts
or things  necessary  or  appropriate  to effect the  purposes of such notice of
termination,  whether to  complete  the  transfer  and  endorsement  of the BANA
Mortgage  Loans  and  related  documents,  or  otherwise,   including,   without
limitation, the recordation of the assignments of the BANA Mortgage Loans to it.
The Servicer  agrees to  cooperate  with the Master  Servicer in  effecting  the
termination  of the  responsibilities  and  rights  of the  Servicer  hereunder,
including,  without  limitation,  the  transfer to the Master  Servicer  for the
administration  by it of all  cash  amounts  that  have  been  deposited  by the
Servicer in the BANA  Custodial  Account or thereafter  received by the Servicer
with  respect to the BANA  Mortgage  Loans.  All costs and  expenses  (including
attorneys' fees) incurred in connection with  transferring the Mortgage Files to
the successor Servicer and amending this Agreement to reflect such succession as
Servicer  pursuant  to this  Section  5.01  shall  be  paid  by the  predecessor
Servicer.  Notwithstanding  the termination of the Servicer pursuant hereto, the
Servicer  shall remain liable for any causes of action  arising out of any Event
of Default occurring prior to such termination.

Section 5.02.   Master Servicer to Act; Appointment of Successor.
                -------------------------------------------------

     (a)  Within  90  days  of the  time  the  Servicer  receives  a  notice  of
termination  pursuant  to Section  5.01,  the Master  Servicer  (or other  named
successor)  shall  be the  successor  in all  respects  to the  Servicer  in its
capacity as servicer  under this  Agreement  and the  transactions  set forth or
provided for herein and shall be subject to all the responsibilities, duties and
liabilities  relating thereto placed on the Servicer by the terms and provisions
hereof or shall appoint a successor  pursuant to Section  2.06.  Notwithstanding
the  foregoing,  (i) the parties hereto agree that the Master  Servicer,  in its
capacity as successor  Servicer,  immediately will assume all of the obligations
of the Servicer under this Agreement,  (ii) the Master Servicer, in its capacity
as successor  Servicer,  shall not be  responsible  for the lack of  information
and/or  documents  that it cannot obtain  through  reasonable  efforts and (iii)
under no  circumstances  shall any  provision of this  Agreement be construed to
require the Master Servicer, acting in its capacity as successor to the Servicer
in its  obligation to advance,  expend or risk its own funds or otherwise  incur
any financial  liability in the performance of its duties  hereunder if it shall
have  reasonable  grounds  for  believing  that such funds are  non-recoverable.
Subject to Section 5.02(b), as compensation  therefor, the Master Servicer shall
be entitled to such  compensation  as the  terminated  Servicer  would have been
entitled  to  hereunder  if no  such  notice  of  termination  had  been  given.
Notwithstanding  the above, the Master Servicer may, if it shall be unwilling so
to act,  or shall,  if it is legally  unable so to act,  appoint,  or petition a
court of competent  jurisdiction to appoint,  any  established  housing and home
finance  institution  having a net  worth of not less  than  $10,000,000  as the
successor to the terminated  Servicer  hereunder in the assumption of all or any
part of the  responsibilities,  duties or liabilities of the Servicer hereunder;
provided,  however,  that any such institution  appointed as successor  Servicer
shall not, as evidenced in writing by each Rating Agency,  adversely  affect the
then  current  rating  of any  Class of  Certificates  immediately  prior to the
termination of the terminated Servicer.  The appointment of a successor Servicer
shall not affect any liability of the predecessor Servicer which may have arisen
under  this  Agreement  prior to its  termination  as  Servicer,  nor  shall any
successor  Servicer  be  liable  for any acts or  omissions  of the  predecessor
Servicer  or for any breach by the  Servicer  of any of its  representations  or
warranties  contained  herein or in any related  document or agreement.  Pending

                                      -30-

<PAGE>

appointment  of a successor to the  terminated  Servicer  hereunder,  unless the
Master  Servicer is prohibited by law from so acting,  the Master Servicer shall
act in such capacity as provided  above.  The Master Servicer and such successor
shall take such action, consistent with this Agreement, as shall be necessary to
effectuate any such  succession.  All Servicing  Transfer Costs shall be paid by
the predecessor  Servicer upon presentation of reasonable  documentation of such
costs, and if such predecessor  Servicer  defaults in its obligation to pay such
costs, such costs shall be paid by the Trust.

     (b) In  connection  with the  appointment  of a  successor  Servicer or the
assumption of the duties of the Servicer,  as specified in Section 5.02(a),  the
Master  Servicer  may  make  such  arrangements  for  the  compensation  of such
successor as it and such successor agree.

     (c) Any  successor,  including  the Master  Servicer,  to the  Servicer  as
servicer shall during the term of its service as servicer  maintain in force (i)
a  policy  or  policies  of  insurance  covering  errors  and  omissions  in the
performance of its obligations as servicer hereunder and (ii) a fidelity bond in
respect of its officers, employees and agents to the same extent as the Servicer
is so required pursuant to Section 2.03.

                                   ARTICLE VI

                                   TERMINATION

Section 6.01.   Termination upon Purchase by the Master Servicer or Liquidation
                ---------------------------------------------------------------
                of All Mortgage Loans.
                -----------------------

     Subject  to Section  10.02 of the  Pooling  and  Servicing  Agreement,  the
respective  obligations and  responsibilities  of the Depositor and the Servicer
created hereby shall  terminate upon the earlier of (a) the last action required
to be taken by the  Securities  Administrator  on the  Final  Distribution  Date
pursuant to Article X of the Pooling and  Servicing  Agreement  or (b) the final
payment or other  liquidation (or any advance with respect  thereto) of the last
BANA  Mortgage  Loan  remaining  in the Trust Estate or the  disposition  of all
related REO Property.

                                  ARTICLE VII

                            MISCELLANEOUS PROVISIONS

Section 7.01.   Amendment.
                ----------

     This  Agreement  may be amended  from time to time by the  Servicer and the
Depositor  with a written  agreement  signed by the Servicer and the  Depositor;
provided that the party  requesting  such amendment  shall,  at its own expense,
provide the Trustee,  the Securities  Administrator and the Master Servicer with
an Opinion of Counsel that such amendment will not materially  adversely  affect
the interest of the  Certificateholders  in the BANA  Mortgage  Loans.  Any such
amendment  shall be deemed not to adversely  affect in any material  respect any
interest of the  Certificateholders  in the BANA  Mortgage  Loans if the Trustee
receives written  confirmation  from each Rating Agency that such amendment will
not cause such Rating  Agency to reduce,  qualify or withdraw  the then  current
rating assigned to the Certificates  (and any Opinion of Counsel received by the
Trustee, Securities Administrator and the Master Servicer in connection with any

                                      -31-

<PAGE>

such amendment may rely expressly on such  confirmation as the basis therefore);
provided,  however,  this  Agreement  may be  amended  by the  Servicer  and the
Depositor  from time to time  without  the  delivery  of an  Opinion  of Counsel
described above to the extent necessary, in the judgment of the Servicer and its
counsel, to comply with the SEC Rules.

Section 7.02.   Governing Law.
                --------------

     THIS AGREEMENT  SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK,  WITHOUT  APPLICATION OF THE CONFLICTS OF LAWS PROVISIONS  THEREOF,
AND THE  OBLIGATIONS,  RIGHTS AND  REMEDIES  OF THE PARTIES  HEREUNDER  SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     With  respect  to any  claim  arising  out of this  Agreement,  each  party
irrevocably submits to the exclusive  jurisdiction of the courts of the State of
New  York and the  United  States  District  Court  located  in the  Borough  of
Manhattan  in The  City of New  York,  and each  party  irrevocably  waives  any
objection  which  it may have at any time to the  laying  of venue of any  suit,
action or  proceeding  arising  out of or  relating  hereto  brought in any such
courts,  irrevocably  waives any claim that any such suit,  action or proceeding
brought in any such court has been brought in any inconvenient forum and further
irrevocably waives the right to object, with respect to such claim, suit, action
or  proceeding  brought  in any  such  court,  that  such  court  does  not have
jurisdiction over such party,  provided that service of process has been made by
any lawful means.

Section 7.03.   Notices.
                --------

     All demands, notices, instructions, directions, requests and communications
required or permitted to be delivered hereunder shall be in writing and shall be
deemed to have been duly given if personally delivered at or mailed by certified
mail,  return receipt  requested,  to (a) in the case of the Depositor,  Banc of
America Funding Corporation,  214 North Tryon Street, Charlotte,  North Carolina
28255,  Attention:  General Counsel and Chief  Financial  Officer and (b) in the
case of the Servicer,  Bank of America,  National  Association,  475  Crosspoint
Parkway, Getzville, New York 14068-9000, Attention: Servicing Manager.

Section 7.04.  Severability of Provisions.
               ---------------------------

     If any one or more of the  covenants,  agreements,  provisions  or terms of
this  Agreement  shall be for any  reason  whatsoever  held  invalid,  then such
covenants,  agreements,  provisions or terms shall be deemed  severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or  enforceability of the other provisions of this
Agreement.

Section 7.05.   Assignment by the Depositor.
                ----------------------------

     Simultaneously  with the  conveyances  of (i) the BANA Mortgage  Loans on a
servicing-retained  basis  by  Bank  of  America,  National  Association  to the
Depositor  pursuant to the Mortgage  Loan  Purchase  Agreement and (ii) the BANA
Mortgage  Loans by the  Depositor  to the  Trustee  pursuant  to the Pooling and
Servicing  Agreement,  the Depositor will assign all of its rights  hereunder to
the Trustee,  and the Trustee then shall  succeed to all rights of the Depositor
under this Agreement.

                                      -32-

<PAGE>

     IN WITNESS  WHEREOF,  the  Depositor  and the  Servicer  have  caused  this
Agreement  to be duly  executed  by their  respective  officers  thereunto  duly
authorized  to be  hereunto  affixed,  all as of the day and  year  first  above
written.

                                          BANC OF AMERICA FUNDING CORPORATION,
                                               as Depositor

                                          By:      /s/ Scott Evans
                                               ---------------------------------
                                               Name:  Scott Evans
                                               Title: Senior Vice President

                                          BANK OF AMERICA, NATIONAL ASSOCIATION,
                                               as Servicer

                                          By:      /s/ Bruce W. Good
                                               ---------------------------------
                                               Name:  Bruce W. Good
                                               Title: Principal

              [Signature page to BANA Servicing Agreement, 2006-7]

<PAGE>

Acknowledged and agreed to by:

WELLS FARGO BANK, N.A.,
as Securities Administrator and as Master Servicer

By:     /s/ Peter A. Gobell
   -----------------------------------------------
Name:   Peter A. Gobell
Title:  Vice President

U.S. BANK NATIONAL ASSOCIATION,
as Trustee

By:     /s/ Melissa A. Rosal
   -----------------------------------------------
Name:   Melissa A. Rosal
Title:  Vice President

              [Signature page to BANA Servicing Agreement, 2006-7]

<PAGE>

                                    EXHIBIT A

                FORM OF CERTIFICATION OF ESTABLISHMENT OF ACCOUNT

                                     [Date]

     [_______________]  hereby  certifies that it has established a [__________]
Account pursuant to Section [________] of the Servicing Agreement, dated October
30, 2006, between Banc of America Funding Corporation, as Depositor, and Bank of
America, National Association, as Servicer.

                                            [---------------],

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

<PAGE>

                                    EXHIBIT B

                      Form of Sarbanes-Oxley Certification

                       Banc of America Funding Corporation
                       Mortgage Pass-Through Certificates,
                                  Series 2006-7

     I, ________________________________, the _______________________ of Bank of
America,  National  Association (the  "Servicer"),  certify to Wells Fargo Bank,
N.A. (the "Master  Servicer")  and its  officers,  with the knowledge and intent
that they will rely upon this certification, that:

1.       I have reviewed the compliance statement of the Servicer provided in
         accordance with Item 1123 of Regulation AB (the "Compliance
         Statement"), the report on assessment of the Servicer's compliance
         with the servicing criteria set forth in Item 1122(d) of Regulation AB
         (the "Servicing Criteria"), provided in accordance with Rules 13a-18
         and 15d-18 under Securities Exchange Act of 1934, as amended (the
         "Exchange Act") and Item 1122 of Regulation AB (the "Servicing
         Assessment"), the registered public accounting firm's attestation
         report provided in accordance with Rules 13a-18 and 15d-18 under the
         Exchange Act and Section 1122(b) of Regulation AB (the "Attestation
         Report"), and all servicing reports, officer's certificates and other
         information relating to the servicing of the Mortgage Loans by the
         Servicer during 200[ ] that were delivered by the Servicer to the
         Master Servicer pursuant to the Agreement (collectively, the
         "Servicing Information");

2.       Based on my knowledge, the Servicing Information, taken as a whole,
         does not contain any untrue statement of a material fact or omit to
         state a material fact necessary to make the statements made, in the
         light of the circumstances under which such statements were made, not
         misleading with respect to the period of time covered by the Servicing
         Information;

3.       Based on my knowledge, all of the Servicing Information required to be
         provided by the Servicer under the Agreement has been provided to the
         Master Servicer;

4.       I am responsible for reviewing the activities performed by the Servicer
         under the Agreement, and based on my knowledge and the compliance
         review conducted in preparing the Compliance Statement and except as
         disclosed in the Compliance Statement, the Servicing Assessment or the
         Attestation Report, the Servicer has fulfilled its obligations under
         the Agreement in all material respects; and

5.       The Compliance Statement required to be delivered by the Servicer
         pursuant to the Agreement, and the Servicing Assessment and Attestation
         Report required to be provided by the Servicer and by any Subservicer
         or Subcontractor pursuant to the Agreement, have been provided to the
         Master Servicer. Any material instances of noncompliance described in
         such reports have been disclosed to the Master Servicer. Any material
         instance of noncompliance with the Servicing Criteria has been
         disclosed in such reports.

     In giving the certifications above, I have reasonably relied on information
provided to me by the following unaffiliated party: [__________]

[_________], 200[_]

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

<PAGE>

                                   Exhibit C-1

                  Standard File Layout - Delinquency Reporting

<TABLE>
<CAPTION>

--------------------------------------------------------------------------------------------------------------------------
Column/Header Name                                     Description                            Decimal       Format
                                                                                                           Comment
--------------------------------------------------------------------------------------------------------------------------
<S> <C>
SERVICER_LOAN_NBR              A unique number assigned to a loan by the Servicer.  This
                               may be different than the LOAN_NBR
--------------------------------------------------------------------------------------------------------------------------
LOAN_NBR                       A unique identifier assigned to each loan by the originator.
--------------------------------------------------------------------------------------------------------------------------
CLIENT_NBR                     Servicer Client Number
--------------------------------------------------------------------------------------------------------------------------
SERV_INVESTOR_NBR              Contains a unique number as assigned by an external
                               servicer to identify a group of loans in their system.
--------------------------------------------------------------------------------------------------------------------------
BORROWER_FIRST_NAME            First Name of the Borrower.
--------------------------------------------------------------------------------------------------------------------------
BORROWER_LAST_NAME             Last name of the borrower.
--------------------------------------------------------------------------------------------------------------------------
PROP_ADDRESS                   Street Name and Number of Property
--------------------------------------------------------------------------------------------------------------------------
PROP_STATE                     The state where the  property located.
--------------------------------------------------------------------------------------------------------------------------
PROP_ZIP                       Zip code where the property is located.
--------------------------------------------------------------------------------------------------------------------------
BORR_NEXT_PAY_DUE_DATE         The date that the borrower's next payment is due to the
                               servicer at the end of processing cycle, as reported by                    MM/DD/YYYY
                               Servicer.
--------------------------------------------------------------------------------------------------------------------------
LOAN_TYPE                      Loan Type (i.e. FHA, VA, Conv)
--------------------------------------------------------------------------------------------------------------------------
BANKRUPTCY_FILED_DATE          The date a particular bankruptcy claim was filed.                          MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
BANKRUPTCY_CHAPTER_CODE        The chapter under which the bankruptcy was filed.
--------------------------------------------------------------------------------------------------------------------------
BANKRUPTCY_CASE_NBR            The case number assigned by the court to the bankruptcy
                               filing.
--------------------------------------------------------------------------------------------------------------------------
POST_PETITION_DUE_DATE         The payment due date once the bankruptcy has been approved                 MM/DD/YYYY
                               by the courts
 -------------------------------------------------------------------------------------------------------------------------
BANKRUPTCY_DCHRG_DISM_DATE     The Date The Loan Is Removed From Bankruptcy. Either by                    MM/DD/YYYY
                               Dismissal, Discharged and/or a Motion For Relief Was
                               Granted.
--------------------------------------------------------------------------------------------------------------------------
LOSS_MIT_APPR_DATE             The Date The Loss Mitigation Was Approved By The Servicer                  MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
LOSS_MIT_TYPE                  The Type Of Loss Mitigation Approved For A Loan Such As;
--------------------------------------------------------------------------------------------------------------------------
LOSS_MIT_EST_COMP_DATE         The Date The Loss Mitigation /Plan Is Scheduled To End/Close               MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
LOSS_MIT_ACT_COMP_DATE         The Date The Loss Mitigation Is Actually Completed                         MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
FRCLSR_APPROVED_DATE           The date DA Admin sends a letter to the servicer with                      MM/DD/YYYY
                               instructions to begin foreclosure proceedings.
--------------------------------------------------------------------------------------------------------------------------
ATTORNEY_REFERRAL_DATE         Date File Was Referred To Attorney to Pursue Foreclosure                   MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
FIRST_LEGAL_DATE               Notice of 1st legal filed by an Attorney in a Foreclosure                  MM/DD/YYYY
                               Action
--------------------------------------------------------------------------------------------------------------------------
FRCLSR_SALE_EXPECTED_DATE      The date by which a foreclosure sale is expected to occur.                 MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
FRCLSR_SALE_DATE               The actual date of the foreclosure sale.                                   MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
FRCLSR_SALE_AMT                The amount a property sold for at the foreclosure sale.           2        No commas(,) or
                                                                                                          dollar signs ($)
--------------------------------------------------------------------------------------------------------------------------
EVICTION_START_DATE            The date the servicer initiates eviction of the borrower.                  MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
EVICTION_COMPLETED_DATE        The date the court revokes legal possession of the property                MM/DD/YYYY
                               from the borrower.
--------------------------------------------------------------------------------------------------------------------------
LIST_PRICE                     The price at which an REO property is marketed.                   2        No commas(,) or
                                                                                                          dollar signs ($)
--------------------------------------------------------------------------------------------------------------------------
LIST_DATE                      The date an REO property is listed at a particular price.                  MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
OFFER_AMT                      The dollar value of an offer for an REO property.                 2        No commas(,) or
                                                                                                          dollar signs ($)
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

<S> <C>

OFFER_DATE_TIME                The date an offer is received by DA Admin or by the Servicer               MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
REO_CLOSING_DATE               The date the REO sale of the property is scheduled to close.               MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
REO_ACTUAL_CLOSING_DATE        Actual Date Of REO Sale                                                    MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
OCCUPANT_CODE                  Classification of how the property is occupied.
--------------------------------------------------------------------------------------------------------------------------
PROP_CONDITION_CODE            A code that indicates the condition of the property.
--------------------------------------------------------------------------------------------------------------------------
PROP_INSPECTION_DATE           The date a  property inspection is performed.                              MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
APPRAISAL_DATE                 The date the appraisal was done.                                           MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
CURR_PROP_VAL                  The current "as is" value of the property based on brokers        2
                               price opinion or appraisal.
--------------------------------------------------------------------------------------------------------------------------
REPAIRED_PROP_VAL              The amount the property would be worth if repairs are             2
                               completed pursuant to a broker's price opinion or appraisal.
--------------------------------------------------------------------------------------------------------------------------
If applicable:
--------------------------------------------------------------------------------------------------------------------------
DELINQ_STATUS_CODE             FNMA Code Describing Status of Loan
--------------------------------------------------------------------------------------------------------------------------
DELINQ_REASON_CODE             The circumstances which caused a borrower to stop paying
                               on a loan. Code indicates the reason why the loan is in
                               default for this cycle.
--------------------------------------------------------------------------------------------------------------------------
MI_CLAIM_FILED_DATE            Date Mortgage Insurance Claim Was Filed With Mortgage                      MM/DD/YYYY
                               Insurance Company.
--------------------------------------------------------------------------------------------------------------------------
MI_CLAIM_AMT                   Amount of Mortgage Insurance Claim Filed                                   No commas(,) or
                                                                                                          dollar signs ($)
--------------------------------------------------------------------------------------------------------------------------
MI_CLAIM_PAID_DATE             Date Mortgage Insurance Company Disbursed Claim Payment                    MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
MI_CLAIM_AMT_PAID              Amount Mortgage Insurance Company Paid On Claim                   2        No commas(,) or
                                                                                                          dollar signs ($)
--------------------------------------------------------------------------------------------------------------------------
POOL_CLAIM_FILED_DATE          Date Claim Was Filed With Pool Insurance Company                           MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
POOL_CLAIM_AMT                 Amount of Claim Filed With Pool Insurance Company                 2        No commas(,) or
                                                                                                          dollar signs ($)
--------------------------------------------------------------------------------------------------------------------------
POOL_CLAIM_PAID_DATE           Date Claim Was Settled and The Check Was Issued By The Pool                MM/DD/YYYY
                               Insurer
--------------------------------------------------------------------------------------------------------------------------
POOL_CLAIM_AMT_PAID            Amount Paid On Claim By Pool Insurance Company                    2        No commas(,) or
                                                                                                          dollar signs ($)
--------------------------------------------------------------------------------------------------------------------------
FHA_PART_A_CLAIM_FILED_DATE    Date FHA Part A Claim Was Filed With HUD                                   MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
FHA_PART_A_CLAIM_AMT           Amount of FHA Part A Claim Filed                                  2        No commas(,) or
                                                                                                          dollar signs ($)
--------------------------------------------------------------------------------------------------------------------------
FHA_PART_A_CLAIM_PAID_DATE     Date HUD Disbursed Part A Claim Payment                                    MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
FHA_PART_A_CLAIM_PAID_AMT      Amount HUD Paid on Part A Claim                                   2        No commas(,) or
                                                                                                          dollar signs ($)
--------------------------------------------------------------------------------------------------------------------------
FHA_PART_B_CLAIM_FILED_DATE    Date FHA Part B Claim Was Filed With HUD                                   MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
FHA_PART_B_CLAIM_AMT           Amount of FHA Part B Claim Filed                                  2        No commas(,) or
                                                                                                          dollar signs ($)
--------------------------------------------------------------------------------------------------------------------------
FHA_PART_B_CLAIM_PAID_DATE     Date HUD Disbursed Part B Claim Payment                                    MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
FHA_PART_B_CLAIM_PAID_AMT      Amount HUD Paid on Part B Claim                                   2        No commas(,) or
                                                                                                          dollar signs ($)
--------------------------------------------------------------------------------------------------------------------------
VA_CLAIM_FILED_DATE            Date VA Claim Was Filed With the Veterans Admin                            MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
VA_CLAIM_PAID_DATE             Date Veterans Admin. Disbursed VA Claim Payment                            MM/DD/YYYY
--------------------------------------------------------------------------------------------------------------------------
VA_CLAIM_PAID_AMT              Amount Veterans Admin. Paid on VA Claim                           2        No commas(,) or
                                                                                                          dollar signs ($)
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

The Loss Mit Type field should show the approved Loss Mitigation Code as
follows:

        o    ASUM - Approved Assumption
        o    BAP - Borrower Assistance Program
        o    CO - Charge Off
        o    DIL- Deed-in-Lieu
        o    FFA- Formal Forbearance Agreement
        o    MOD- Loan Modification
        o    PRE- Pre-Sale
        o    SS- Short Sale
        o    MISC- Anything else approved by the PMI or Pool Insurer

NOTE:  Wells Fargo Bank will accept  alternative  Loss Mitigation Types to those
above,  provided  that they are  consistent  with  industry  standards.  If Loss
Mitigation Types other than those above are used, the Servicer must supply Wells
Fargo Bank with a  description  of each of the Loss  Mitigation  Types  prior to
sending the file.

The Occupant  Code field should show the current  status of the property code as
follows:

        o    Mortgagor
        o    Tenant
        o    Unknown
        o    Vacant

The  Property  Condition  field should show the last  reported  condition of the
property as follows:

        o    Damaged
        o    Excellent
        o    Fair
        o    Gone
        o    Good
        o    Poor
        o    Special Hazard
        o    Unknown

<PAGE>

The FNMA Delinquent  Reason Code field should show the Reason for Delinquency as
follows:

                 -------------------------------------------------------------
                 Delinquency Code  Delinquency Description
                 -------------------------------------------------------------
                 001               FNMA-Death of principal mortgagor
                 -------------------------------------------------------------
                 002               FNMA-Illness of principal mortgagor
                 -------------------------------------------------------------
                 003               FNMA-Illness of mortgagor's family member
                 -------------------------------------------------------------
                 004               FNMA-Death of mortgagor's family member
                 -------------------------------------------------------------
                 005               FNMA-Marital difficulties
                 -------------------------------------------------------------
                 006               FNMA-Curtailment of income
                 -------------------------------------------------------------
                 007               FNMA-Excessive Obligation
                 -------------------------------------------------------------
                 008               FNMA-Abandonment of property
                 -------------------------------------------------------------
                 009               FNMA-Distant employee transfer
                 -------------------------------------------------------------
                 011               FNMA-Property problem
                 -------------------------------------------------------------
                 012               FNMA-Inability to sell property
                 -------------------------------------------------------------
                 013               FNMA-Inability to rent property
                 -------------------------------------------------------------
                 014               FNMA-Military Service
                  ------------------------------------------------------------
                 015               FNMA-Other
                 -------------------------------------------------------------
                 016               FNMA-Unemployment
                 -------------------------------------------------------------
                 017               FNMA-Business failure
                  ------------------------------------------------------------
                 019               FNMA-Casualty loss
                 -------------------------------------------------------------
                 022               FNMA-Energy environment costs
                 -------------------------------------------------------------
                 023               FNMA-Servicing problems
                 -------------------------------------------------------------
                 026               FNMA-Payment adjustment
                 -------------------------------------------------------------
                 027               FNMA-Payment dispute
                 -------------------------------------------------------------
                 029               FNMA-Transfer of ownership pending
                 -------------------------------------------------------------
                 030               FNMA-Fraud
                 -------------------------------------------------------------
                 031               FNMA-Unable to contact borrower
                 -------------------------------------------------------------
                 INC               FNMA-Incarceration
                 -------------------------------------------------------------

<PAGE>

The FNMA  Delinquent  Status  Code  field  should  show the Status of Default as
follows:

                 -------------------------------------------------------------
                 Status Code      Status Description
                 -------------------------------------------------------------
                     09           Forbearance
                 -------------------------------------------------------------
                     17           Pre-foreclosure Sale Closing Plan Accepted
                 -------------------------------------------------------------
                     24           Government Seizure
                 -------------------------------------------------------------
                     26           Refinance
                 -------------------------------------------------------------
                     27           Assumption
                 -------------------------------------------------------------
                     28           Modification
                 -------------------------------------------------------------
                     29           Charge-Off
                 -------------------------------------------------------------
                     30           Third Party Sale
                 -------------------------------------------------------------
                     31           Probate
                 -------------------------------------------------------------
                     32           Military Indulgence
                 -------------------------------------------------------------
                     43           Foreclosure Started
                 -------------------------------------------------------------
                     44           Deed-in-Lieu Started
                 -------------------------------------------------------------
                     49           Assignment Completed
                 -------------------------------------------------------------
                     61           Second Lien Considerations
                 -------------------------------------------------------------
                     62           Veteran's Affairs-No Bid
                 -------------------------------------------------------------
                     63           Veteran's Affairs-Refund
                 -------------------------------------------------------------
                     64           Veteran's Affairs-Buy-Down
                 -------------------------------------------------------------
                     65           Chapter 7 Bankruptcy
                 -------------------------------------------------------------
                     66           Chapter 11 Bankruptcy
                 -------------------------------------------------------------
                     67           Chapter 13 Bankruptcy
                 -------------------------------------------------------------

<PAGE>

                                   Exhibit C-2

                     Standard File Layout - Master Servicing

<TABLE>
<CAPTION>

----------------------------------------------------------------------------------------------------------------------------------
Column Name                   Description                                   Decimal    Format Comment                   Max Size
----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
SER_INVESTOR_NBR              A value assigned by the Servicer to define a             Text up to 10 digits                20
                              group of loans.
----------------------------------------------------------------------------------------------------------------------------------
LOAN_NBR                      A unique identifier assigned to each loan by             Text up to 10 digits                10
                              the investor.
----------------------------------------------------------------------------------------------------------------------------------
SERVICER_LOAN_NBR             A unique number assigned to a loan by the                Text up to 10 digits                10
                              Servicer. This may be different than the LOAN_NBR.
----------------------------------------------------------------------------------------------------------------------------------
BORROWER_NAME                 The borrower name as received in the file.               Maximum length of 30 (Last,         30
                              It is not separated by first and last name.              First)
----------------------------------------------------------------------------------------------------------------------------------
SCHED_PAY_AMT                 Scheduled monthly principal and scheduled         2      No commas(,) or dollar signs ($)    11
                              interest payment that a borrower is expected
                              to pay, P&I constant.
----------------------------------------------------------------------------------------------------------------------------------
NOTE_INT_RATE                 The loan interest rate as reported by the         4      Max length of 6                     6
                              Servicer.
----------------------------------------------------------------------------------------------------------------------------------
NET_INT_RATE                  The loan gross interest rate less the             4      Max length of 6                     6
                              service fee rate as reported by the Servicer.
----------------------------------------------------------------------------------------------------------------------------------
SERV_FEE_RATE                 The servicer's fee rate for a loan as             4      Max length of 6                     6
                              reported by the Servicer.
----------------------------------------------------------------------------------------------------------------------------------
SERV_FEE_AMT                  The servicer's fee amount for a loan as           2      No commas(,) or dollar signs ($)    11
                              reported by the Servicer.
----------------------------------------------------------------------------------------------------------------------------------
NEW_PAY_AMT                   The new loan payment amount as reported by        2      No commas(,) or dollar signs ($)    11
                              the Servicer.
----------------------------------------------------------------------------------------------------------------------------------
NEW_LOAN_RATE                 The new loan rate as reported by the              4      Max length of 6                     6
                              Servicer.
----------------------------------------------------------------------------------------------------------------------------------
ARM_INDEX_RATE                The index the Servicer is using to calculate      4      Max length of 6                     6
                              a forecasted rate.
----------------------------------------------------------------------------------------------------------------------------------
ACTL_BEG_PRIN_BAL             The borrower's actual principal balance at        2      No commas(,) or dollar signs ($)    11
                              the beginning of the processing cycle.
----------------------------------------------------------------------------------------------------------------------------------
ACTL_END_PRIN_BAL             The borrower's actual principal balance at        2      No commas(,) or dollar signs ($)    11
                              the end of the processing cycle.
----------------------------------------------------------------------------------------------------------------------------------
BORR_NEXT_PAY_DUE_DATE        The date at the end of processing cycle that             MM/DD/YYYY                          10
                              the borrower's next payment is due to the
                              Servicer, as reported by Servicer.
----------------------------------------------------------------------------------------------------------------------------------
SERV_CURT_AMT_1               The first curtailment amount to be applied.       2      No commas(,) or dollar signs ($)    11
----------------------------------------------------------------------------------------------------------------------------------
SERV_CURT_DATE_1              The curtailment date associated with the                 MM/DD/YYYY                          10
                              first curtailment amount.
----------------------------------------------------------------------------------------------------------------------------------
CURT_ADJ_ AMT_1               The curtailment interest on the first             2      No commas(,) or dollar signs ($)    11
                              curtailment amount, if applicable.
----------------------------------------------------------------------------------------------------------------------------------
SERV_CURT_AMT_2               The second curtailment amount to be applied.      2      No commas(,) or dollar signs ($)    11
----------------------------------------------------------------------------------------------------------------------------------
SERV_CURT_DATE_2              The curtailment date associated with the                 MM/DD/YYYY                          10
                              second curtailment amount.
----------------------------------------------------------------------------------------------------------------------------------
CURT_ADJ_ AMT_2               The curtailment interest on the second            2      No commas(,) or dollar signs ($)    11
                              curtailment amount, if applicable.
----------------------------------------------------------------------------------------------------------------------------------
SERV_CURT_AMT_3               The third curtailment amount to be applied.       2      No commas(,) or dollar signs ($)    11
----------------------------------------------------------------------------------------------------------------------------------
SERV_CURT_DATE_3              The curtailment date associated with the                 MM/DD/YYYY                          10
                              third curtailment amount.
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

<S> <C>
----------------------------------------------------------------------------------------------------------------------------------
CURT_ADJ_AMT_3                The curtailment interest on the third             2      No commas(,) or dollar signs ($)    11
                              curtailment amount, if applicable.
----------------------------------------------------------------------------------------------------------------------------------
PIF_AMT                       The loan "paid in full" amount as reported        2      No commas(,) or dollar signs ($)    11
                              by the Servicer.
----------------------------------------------------------------------------------------------------------------------------------
PIF_DATE                      The paid in full date as reported by the                 MM/DD/YYYY                          10
                              Servicer.
----------------------------------------------------------------------------------------------------------------------------------
ACTION_CODE                   The standard FNMA numeric code used to indicate          Action Code Key: 15=Bankruptcy,     2
                              the default/delinquent status of a particular            30=Foreclosure, , 60=PIF,
                              loan.                                                    63=Substitution,
                                                                                       65=Repurchase,70=REO
----------------------------------------------------------------------------------------------------------------------------------
INT_ADJ_AMT                   The amount of the interest adjustment as          2      No commas(,) or dollar signs ($)    11
                              reported by the Servicer.
----------------------------------------------------------------------------------------------------------------------------------
SOLDIER_SAILOR_ADJ_AMT        The Soldier and Sailor Adjustment amount, if      2      No commas(,) or dollar signs ($)    11
                              applicable.
----------------------------------------------------------------------------------------------------------------------------------
NON_ADV_LOAN_AMT              The Non Recoverable Loan Amount, if               2      No commas(,) or dollar signs ($)    11
                              applicable.
----------------------------------------------------------------------------------------------------------------------------------
LOAN_LOSS_AMT                 The amount the Servicer is passing as a           2      No commas(,) or dollar signs ($)    11
                              loss, if applicable.
----------------------------------------------------------------------------------------------------------------------------------
SCHED_BEG_PRIN_BAL            The scheduled outstanding principal amount        2      No commas(,) or dollar signs ($)    11
                              due at the beginning of the cycle date to be
                              passed through to investors.
----------------------------------------------------------------------------------------------------------------------------------
SCHED_END_PRIN_BAL            The scheduled principal balance due to            2      No commas(,) or dollar signs ($)    11
                              investors at the end of a processing cycle.
----------------------------------------------------------------------------------------------------------------------------------
SCHED_PRIN_AMT                The scheduled principal amount as reported        2      No commas(,) or dollar signs ($)    11
                              by the Servicer for the current cycle --
                              only applicable for Scheduled/Scheduled
                              Loans.
----------------------------------------------------------------------------------------------------------------------------------
SCHED_NET_INT                 The scheduled gross interest amount less the      2      No commas(,) or dollar signs ($)    11
                              service fee amount for the current cycle as
                              reported by the Servicer -- only applicable for
                              Scheduled/Scheduled Loans.
----------------------------------------------------------------------------------------------------------------------------------
ACTL_PRIN_AMT                 The actual principal amount collected by the      2      No commas(,) or dollar signs ($)    11
                              Servicer for the current reporting cycle -- only
                              applicable for Actual/Actual Loans.
----------------------------------------------------------------------------------------------------------------------------------
ACTL_NET_INT                  The actual gross interest amount less the         2      No commas(,) or dollar signs ($)    11
                              service fee amount for the current reporting cycle
                              as reported by the Servicer -- only applicable for
                              Actual/Actual Loans.
----------------------------------------------------------------------------------------------------------------------------------
PREPAY_PENALTY_ AMT           The penalty amount received when a borrower       2      No commas(,) or dollar signs ($)    11
                              prepays on his loan as reported by the
                              Servicer.
----------------------------------------------------------------------------------------------------------------------------------
PREPAY_PENALTY_ WAIVED        The prepayment penalty amount for the loan        2      No commas(,) or dollar signs ($)    11
                              waived by the servicer.
----------------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------
MOD_DATE                      The Effective Payment Date of the                        MM/DD/YYYY                          10
                              Modification for the loan.
----------------------------------------------------------------------------------------------------------------------------------
MOD_TYPE                      The Modification Type.                                   Varchar - value can be alpha or     30
                                                                                       numeric
----------------------------------------------------------------------------------------------------------------------------------
DELINQ_P&I_ADVANCE_AMT        The current outstanding principal and             2      No commas(,) or dollar signs ($)    11
                              interest advances made by Servicer.
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                   Exhibit C-3

          Calculation of Realized Loss/Gain Form 332- Instruction Sheet

     (a) The numbers on the form correspond with the numbers listed below.

         Liquidation and Acquisition Expenses:
         -------------------------------------
         1.       The Actual Unpaid Principal Balance of the Mortgage Loan. For
                  documentation, an Amortization Schedule from date of default
                  through liquidation breaking out the net interest and
                  servicing fees advanced is required.

         2.       The Total Interest Due less the aggregate amount of servicing
                  fee that would have been earned if all delinquent payments had
                  been made as agreed. For documentation, an Amortization
                  Schedule from date of default through liquidation breaking out
                  the net interest and servicing fees advanced is required.

         3.       Accrued Servicing Fees based upon the Scheduled Principal
                  Balance of the Mortgage Loan as calculated on a monthly basis.
                  For documentation, an Amortization Schedule from date of
                  default through liquidation breaking out the net interest and
                  servicing fees advanced is required.

         4-12.    Complete as applicable. All line entries must be supported by
                  copies of appropriate statements, vouchers, receipts, bills,
                  canceled checks, etc., to document the expense. Entries not
                  properly documented will not be reimbursed to the Servicer.

         13.      The total of lines 1 through 12.

         (b)      Credits:
                  --------

         14-21.   Complete as applicable. All line entries must be supported by
                  copies of the appropriate claims forms, EOBs, HUD-1 and/or
                  other proceeds verification, statements, payment checks, etc.
                  to document the credit. If the Mortgage Loan is subject to a
                  Bankruptcy Deficiency, the difference between the Unpaid
                  Principal Balance of the Note prior to the Bankruptcy
                  Deficiency and the Unpaid Principal Balance as reduced by the
                  Bankruptcy Deficiency should be input on line 20.

         22.      The total of lines 14 through 21.

         Please note: For HUD/VA loans, use line (15) for Part A/Initial
         proceeds and line (16) for Part B/Supplemental proceeds.
         (c)      Total Realized Loss (or Amount of Any Gain)
                  -------------------------------------------

         23.      The total derived from  subtracting  line 22 from 13. If the
                  amount  represents a realized  gain,  show the amount in
                  parenthesis (   ).

<PAGE>

        Calculation of Realized Loss/Gain Form 332

                             WELLS FARGO BANK, N.A.
                        CALCULATION OF REALIZED LOSS/GAIN

         Prepared by:  __________________                 Date:  _______________
         Phone:  ______________________      Email Address:_____________________

       --------------------    -----------------    -------------------
       | Servicer Loan No.|    | Servicer Name |    | Servicer Address |
       |                  |    |               |    |                  |
       |                  |    |               |    |                  |
       --------------------    -----------------    -------------------

 WELLS FARGO BANK, N.A. Loan No._____________________________

 Borrower's Name:_______________________________________________________________

 Property Address:______________________________________________________________

 Liquidation and Acquisition Expenses:
 (1)  Actual Unpaid Principal Balance of Mortgage Loan    $ ________________(1)
 (2)  Interest accrued at Net Rate                          ________________(2)
 (3)  Accrued Servicing Fees                                ________________(3)
 (4)  Attorney's Fees                                       ________________(4)
 (5)  Taxes                                                 ________________(5)
 (6)  Property Maintenance                                  ________________(6)
 (7)  MI/Hazard Insurance Premiums                          ________________(7)
 (8)  Utility Expenses                                      ________________(8)
 (9)  Appraisal/BPO                                         ________________(9)
 (10) Property Inspections                                  ________________(10)
 (11) FC Costs/Other Legal Expenses                         ________________(11)
 (12) Other (itemize)                                     $ ________________(12)
          Cash for Keys__________________________           ________________
          HOA/Condo Fees_________________________           ________________
          _______________________________________           ________________
          _______________________________________           ________________
          Total Expenses                                  $ ________________(13)
 Credits:
 (14) Escrow Balance                                      $ ________________(14)
 (15) HIP Refund                                            ________________(15)
 (16) Rental Receipts                                       ________________(16)
 (17) Hazard Loss Proceeds                                  ________________(17)
 (18) Primary Mortgage Insurance Proceeds                   ________________(18)
 (19) Pool Insurance Proceeds                               ________________(19)
 (20) Proceeds from Sale of Acquired Property               ________________(20)
 (21) Other (itemize)                                       ________________(21)
      ___________________________________________           ________________
      ___________________________________________           ________________

      Total Credits                                       $ ________________(22)

 Total Realized Loss (or Amount of Gain)                  $ ________________(23)

<PAGE>

                                    EXHIBIT D

                         CONTENTS OF THE SERVICING FILE

1.    Copies of Mortgage Loan Documents.

2.    Residential loan application.

3.    Mortgage Loan closing statement.

4.    Verification of employment and income, if required.

5.    Verification of acceptable evidence of source and amount of
      downpayment.

6.    Credit report on Mortgagor, in a form acceptable to
      either FNMA or FHLMC.

7.    Residential appraisal report.

8.    Photograph of the Mortgaged Property.

9.    Survey of the Mortgaged Property, unless a survey is not required by
      the title insurer.

10.   Copy of each instrument necessary to complete identification of any
      exception set forth in the exception schedule in the title policy,
      i.e., map or plat, restrictions, easements, home owner association
      declarations, etc.

11.   Copies of all required disclosure statements.

12.   If applicable, termite report, structural engineer's report, water
      potability and septic certification.

13.   Sales Contract, if applicable.

14.   The Primary Insurance Policy or certificate of insurance or an
      electronic notation of the existence of such policy, where
      required pursuant to the Agreement.

Evidence of electronic  notation of the hazard insurance policy, and if required
by law, evidence of the flood insurance policy.

<PAGE>

                                    EXHIBIT E

               SERVICING CRITERIA TO THE ASSESSMENT OF COMPLIANCE

The assessment of compliance to be delivered by the Servicer shall address, at a
minimum, the criteria identified as below as "Applicable Servicing Criteria";
                                              -----------------------------

<TABLE>
<CAPTION>

----------------------------------------------------------------------------------------------------------------------
                                                                                                      Applicable
                                                                                                      Servicing
                                        Servicing Criteria                                            Criteria
----------------------------------------------------------------------------------------------------------------------
       Reference                                       Criteria
----------------------------------------------------------------------------------------------------------------------
                                           General Servicing Considerations
----------------------------------------------------------------------------------------------------------------------
<S> <C>
                       Policies and procedures are instituted to monitor any                              o
                       performance or o other triggers and events of default in
1122(d)(1)(i)          accordance with the transaction agreements.
----------------------------------------------------------------------------------------------------------------------
                       If any material servicing activities are outsourced to third parties,              o
                       policies and procedures are instituted to monitor the third party's
1122(d)(1)(ii)         performance and compliance with such servicing activities.
----------------------------------------------------------------------------------------------------------------------
                       Any requirements in the transaction agreements to
                       maintain a back-up servicer for the mortgage loans are
1122(d)(1)(iii)        maintained.
----------------------------------------------------------------------------------------------------------------------
                       A fidelity bond and errors and omissions policy is in effect on the                o
                       party participating in the servicing function throughout the reporting
                       period in the amount of coverage required by and otherwise in accordance
1122(d)(1)(iv)         with the terms of the transaction agreements.
----------------------------------------------------------------------------------------------------------------------
                                    Cash Collection and Administration
----------------------------------------------------------------------------------------------------------------------
                       Payments on mortgage loans are deposited into the appropriate custodial            o
                       bank accounts and related bank clearing accounts no more than two
                       business days following receipt, or such other number of days specified
1122(d)(2)(i)          in the transaction agreements.
----------------------------------------------------------------------------------------------------------------------
                       Disbursements made via wire transfer on behalf of an obligor or to an              o
1122(d)(2)(ii)         investor are made only by authorized personnel.
----------------------------------------------------------------------------------------------------------------------
                       Advances of funds or guarantees regarding collections, cash flows or               o
                       distributions, and any interest or other fees charged for such advances,
                       are made, reviewed and approved as specified in the transaction
1122(d)(2)(iii)        agreements.
----------------------------------------------------------------------------------------------------------------------
                       The related accounts for the transaction, such as cash reserve accounts
                       or accounts established as a form of overcollateralization, are
                       separately maintained (e.g., with respect to commingling of cash) as set           o
1122(d)(2)(iv)         forth in the transaction agreements.
----------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

----------------------------------------------------------------------------------------------------------------------
                                                                                                      Applicable
                                                                                                      Servicing
                                           Servicing Criteria                                         Criteria
----------------------------------------------------------------------------------------------------------------------
       Reference                                       Criteria
----------------------------------------------------------------------------------------------------------------------
<S>    <C>
                       Each custodial account is maintained at a federally insured depository             o
                       institution as set forth in the transaction agreements.  For purposes of
                       this criterion, "federally insured depository institution" with respect
                       to a foreign financial institution means a foreign financial institution
                       that meets the requirements of Rule 13k-1(b)(1) of the Securities
1122(d)(2)(v)          Exchange Act.
----------------------------------------------------------------------------------------------------------------------
1122(d)(2)(vi)         Unissued checks are safeguarded so as to prevent unauthorized access.              o
----------------------------------------------------------------------------------------------------------------------
                       Reconciliations are prepared on a monthly basis for all asset-backed               o
                       securities related bank accounts, including custodial accounts and
                       related bank clearing accounts.  These reconciliations are (A)
                       mathematically accurate; (B) prepared within 30 calendar days after the
                       bank statement cutoff date, or such other number of days specified in
                       the transaction agreements; (C) reviewed and approved by someone other
                       than the person who prepared the reconciliation; and (D) contain explanations
                       for reconciling items.  These reconciling items are resolved within 90
                       calendar days of their original identification, or such other number of
 1122(d)(2)(vii)       days specified in the transaction agreements.
----------------------------------------------------------------------------------------------------------------------
                                          Investor Remittances and Reporting                              o
----------------------------------------------------------------------------------------------------------------------
                       Reports to investors, including those to be filed with the Commission,             o
                       are maintained in accordance with the transaction agreements and
                       applicable Commission requirements.  Specifically, such reports (A) are
                       prepared in accordance with timeframes and other terms  set forth in the
                       transaction agreements; (B) provide information calculated in accordance
                       with the terms specified in the transaction agreements; (C) are filed
                       with the Commission as required by its rules and regulations; and (D)
                       agree with investors' or the trustee's records as to the total unpaid
1122(d)(3)(i)          principal balance and number of mortgage loans serviced by the Servicer.
----------------------------------------------------------------------------------------------------------------------
                       Amounts due to investors are allocated and remitted in accordance with             o
                       timeframes, distribution priority and other terms set forth in the
1122(d)(3)(ii)         transaction agreements.
----------------------------------------------------------------------------------------------------------------------
                       Disbursements made to an investor are posted within two business days to
                       the Servicer's investor records, or such other number of days specified            o
1122(d)(3)(iii)        in the transaction agreements.
----------------------------------------------------------------------------------------------------------------------
                       Amounts remitted to investors per the investor reports                             o
                       agree with cancelled checks, or other form of payment,
1122(d)(3)(iv)         or custodial bank statements.
----------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

----------------------------------------------------------------------------------------------------------------------
                                                                                                      Applicable
                                                                                                      Servicing
                                           Servicing Criteria                                         Criteria
----------------------------------------------------------------------------------------------------------------------
       Reference                                       Criteria
----------------------------------------------------------------------------------------------------------------------
<S>    <C>
                                               Pool Asset Administration
----------------------------------------------------------------------------------------------------------------------
                       Collateral or security on mortgage loans is maintained as                          o
                       required by the transaction agreements or related
1122(d)(4)(i)          mortgage loan documents.
----------------------------------------------------------------------------------------------------------------------
                       Mortgage loan and related documents are safeguarded as required by the             o
1122(d)(4)(ii)         transaction agreements
----------------------------------------------------------------------------------------------------------------------
                       Any additions, removals or substitutions to the asset pool are made,               o
                       reviewed and approved in accordance with any conditions or requirements
1122(d)(4)(iii)        in the transaction agreements.
----------------------------------------------------------------------------------------------------------------------
                       Payments on mortgage loans, including any payoffs, made in accordance              o
                       with the related mortgage loan documents are posted to the Servicer's
                       obligor records maintained no more than two business days after receipt,
                       or such other number of days specified in the transaction agreements,
                       and allocated to principal, interest or other items (e.g., escrow) in
1122(d)(4)(iv)         accordance with the related mortgage loan documents.
----------------------------------------------------------------------------------------------------------------------
                       The Servicer's records regarding the mortgage loans agree                          o
                       with the Servicer's records with respect to an
1122(d)(4)(v)          obligor's unpaid principal balance.
----------------------------------------------------------------------------------------------------------------------
                       Changes with respect to the terms or status of an obligor's mortgage               o
                       loans (e.g., loan modifications or re-agings) are made, reviewed and
                       approved by authorized personnel in accordance with the transaction
1122(d)(4)(vi)         agreements and related pool asset documents.
----------------------------------------------------------------------------------------------------------------------
                       Loss mitigation or recovery actions (e.g., forbearance plans,                      o
                       modifications and deeds in lieu of foreclosure, foreclosures and
                       repossessions, as applicable) are initiated, conducted and concluded in
                       accordance with the timeframes or other requirements established by the
1122(d)(4)(vii)        transaction agreements.
----------------------------------------------------------------------------------------------------------------------
                       Records documenting collection efforts are maintained during the period            o
                       a mortgage loan is delinquent in accordance with the transaction
                       agreements.  Such records are maintained on at least a monthly basis, or
                       such other period specified in the transaction agreements, and describe
                       the entity's activities in monitoring delinquent mortgage loans
                       including, for example, phone calls, letters and payment rescheduling
                       plans in cases where delinquency is deemed temporary (e.g., illness or
1122(d)(4)(viii)       unemployment).
----------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

----------------------------------------------------------------------------------------------------------------------
                                                                                                      Applicable
                                                                                                      Servicing
                                           Servicing Criteria                                         Criteria
----------------------------------------------------------------------------------------------------------------------
       Reference                                       Criteria
----------------------------------------------------------------------------------------------------------------------
<S>    <C>
                       Adjustments to interest rates or rates of return for                               o
                       mortgage loans with variable rates are computed based
1122(d)(4)(ix)         on the related mortgage loan documents.
----------------------------------------------------------------------------------------------------------------------
                       Regarding any funds held in trust for an obligor (such as escrow                   o
                       accounts):  (A) such funds are analyzed, in accordance with the
                       obligor's mortgage loan documents, on at least an annual basis, or such
                       other period specified in the transaction agreements; (B) interest on
                       such funds is paid, or credited, to obligors in accordance with
                       applicable mortgage loan documents and state laws; and (C) such funds
                       are returned to the obligor within 30 calendar days of full repayment of
                       the Mortgage Loans, or such other number of days specified in the
1122(d)(4)(x)          transaction agreements.
----------------------------------------------------------------------------------------------------------------------
                       Payments made on behalf of an obligor (such as tax or insurance                    o
                       payments) are made on or before the related penalty or expiration dates,
                       as indicated on the appropriate bills or notices for such payments,
                       provided that such support has been received by the servicer at least 30
                       calendar days prior to these dates, or such other number of days
1122(d)(4)(xi)         specified in the transaction agreements.
----------------------------------------------------------------------------------------------------------------------
                       Any late payment penalties in connection with any payment to be made on            o
                       behalf of an obligor are paid from the servicer's funds and not charged
                       to the obligor, unless the late payment was due to the obligor's error
1122(d)(4)(xii)        or omission.
----------------------------------------------------------------------------------------------------------------------
                       Disbursements made on behalf of an obligor are posted within two                   o
                       business days to the obligor's records maintained by the servicer, or
1122(d)(4)(xiii)       such other number of days specified in the transaction agreements.
----------------------------------------------------------------------------------------------------------------------
                       Delinquencies, charge-offs and uncollectible accounts are                          o
                       recognized and recorded in accordance with the
1122(d)(4)(xiv)        transaction agreements.
----------------------------------------------------------------------------------------------------------------------
                       Any external enhancement or other support, identified in
                       Item 1114(a)(1) through (3) or Item 1115 of Regulation
                       AB, is maintained as set forth in the transaction
 1122(d)(4)(xv)        agreements.
----------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                         [NAME OF SERVICER]
                                         Date:
                                                --------------------------------

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

<PAGE>

                                   SCHEDULE I

                           BANA MORTGAGE LOAN SCHEDULE

    (See the Free Writing Prospectus filed and accepted by the Securities and
         Exchange Commission on October 27, 2006, with a filing date of
           October 30, 2006 and accession number 0000950136-06-008947)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]