Document:

EX-10.6

Exhibit 10.6

THIS TRUST AGREEMENT, dated as of December 19, 2006 (this “Agreement”) among New
Century Mortgage Corporation, as administrator (the “Administrator”), Home123 Corporation
as depositor (the “Depositor”) and Christiana Bank & Trust Company, a Delaware banking
corporation, not in its individual capacity but solely as owner trustee (the “Owner
Trustee”).

PRELIMINARY STATEMENT

WHEREAS, the Trust was formed pursuant to a Trust Agreement, dated as of December 12, 2006,
and amended thereafter as of the Closing date, between the Depositor and the Owner Trustee;

NOW, THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto
hereby agree as follows:

ARTICLE I

DEFINITIONS

Section 1.1 Capitalized Terms. For all purposes of this Agreement, the following
terms shall have the meanings set forth below:

“Bankruptcy Action” shall have the meaning assigned to such term in Section
4.1.

“Benefit Plan Investor” shall have the meaning assigned to such term in Section
3.13.

“Certificate of Trust” shall mean the Certificate of Trust in the form of Exhibit
A filed for the Trust pursuant to Section 3810(a) of the Statutory Trust Act.

“Expenses” shall have the meaning assigned to such term in Section 8.2.

“Non-U.S. Person” shall mean any Person other than (i) a citizen or resident of the
United States, (ii) an entity treated for United States federal income tax purposes as a
corporation or partnership created or organized in or under the laws of the United States or any
state thereof, including the District of Columbia, (iii) an estate that is subject to U.S. federal
income tax regardless of the source of its income, (iv) a trust if a court within the United States
is able to exercise primary supervision over the administration of the trust and one or more United
States trustees have authority to control all substantial decisions of the trust, or (v) certain
trusts in existence on August 20, 1996 and treated as United States persons on such date that elect
to continue to be so treated.

“Owner Trust Estate” includes the following: (i) the Mortgage Loans, (ii) the rights
of the Trust under the Interest Rate Swaps and the other Program Documents, (iii) the Reserve Fund,
(iv) any cash and other investments held in the Collection Account, the Allocated Expenses Account,
the Collateral Account and the other accounts maintained pursuant to the Mortgage Loan Purchase and
Servicing Agreement, the Security Agreement, the Depositary Agreement and the Indenture,
(v) certain rights under the Mortgage Loan Purchase and Servicing Agreement, including the right to
resell Mortgage Loans to the Sellers under the circumstances described therein, (vi) servicing
rights to the Mortgage Loans and (vii) any and all proceeds of the foregoing.

“Ownership Interest” shall have the meaning specified in Section 3.2.

“Prospective Transferor” shall mean any prospective purchaser or prospective
transferee of the Ownership Interest.

“Record Date” shall mean with respect to any Payment Date, the Business Day
immediately prior to such day.

“Register” shall mean a register kept by the Registrar in which, subject to such
reasonable regulations as it may prescribe, the Registrar shall provide for the registration of the
Ownership Interest and the registration of transfers of the Ownership Interest. The location of
the Registrar shall be the same as that of the Corporate Trust Office of the Owner Trustee.

“Registrar” shall mean the Owner Trustee as Registrar hereunder.

“Secretary of State” shall mean the Secretary of State of the State of Delaware.

“Statutory Trust Act” shall mean Chapter 38 of Title 12 of the Delaware Code, 12 Del.
Code § 3801 et seq., as the same may be amended from time to time.

“Transferor” shall mean initially, Home123 Corporation, as the owner of the Ownership
Interest.

“Treasury Regulations” shall mean regulations, including proposed or temporary
regulations, promulgated under the Code. References herein to specific provisions of proposed or
temporary regulations shall include analogous provisions of final Treasury Regulations or other
successor Treasury Regulations.

“Trust” shall mean St. Andrew Funding Trust, the Delaware statutory trust governed
pursuant to this Agreement.

“Trust Funds” shall mean amounts allocable to the Issuer pursuant to the terms of the
Security Agreement.

Other Definitional Provisions. (a) Capitalized terms used but not defined herein
(including in the preamble and the recitals hereto) shall have the meanings assigned to such terms
in the Definitions List attached to the Security Agreement, dated as of the date hereof, between
the Trust and Deutsche Bank Trust Company Americas, as collateral agent, as Schedule I (the
“Definitions List”), as such Definitions List may be amended or modified from time to time.

(b) All terms defined in this Agreement shall have the defined meanings when used in any
certificate or other document made or delivered pursuant hereto unless otherwise defined therein.

(c) As used in this Agreement and in any certificate or other document made or delivered
pursuant hereto or thereto, accounting terms not defined in this Agreement or in any such
certificate or other document, and accounting terms partly defined in this Agreement or in any such
certificate or other document to the extent not defined, shall have the respective meanings given
to them under generally accepted accounting principles. To the extent that the definitions of
accounting terms in this Agreement or in any such certificate or other document are inconsistent
with the meanings of such terms under generally accepted accounting principles, the definitions
contained in this Agreement or in any such certificate or other document shall control.

(d) The words “hereof,” “herein,” “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular provision of this
Agreement; Section and Exhibit references contained in this Agreement are references to Sections
and Exhibits in or to this Agreement unless otherwise specified; and the term “including” shall
mean “including without limitation.”

(e) The definitions contained in this Agreement are applicable to the singular as well as the
plural forms of such terms and to the masculine as well as to the feminine and neuter genders of
such terms.

(f) Any agreement, instrument or statute defined or referred to herein or in any instrument or
certificate delivered in connection herewith means such agreement, instrument or statute as from
time to time amended, modified or supplemented and includes (in the case of agreements or
instruments) references to all attachments thereto and instruments incorporated therein; references
to a Person are also to its permitted successors and assigns.

ARTICLE II

ORGANIZATION

Section 2.1 Name. The Trust created hereby shall be known as “St. Andrew Funding
Trust,” in which name the Owner Trustee may conduct the business of the Trust and make and execute
contracts and other instruments on behalf of the Trust and the Trust may sue and be sued.

Section 2.2 Office. The office of the Trust shall be in care of the Owner Trustee at
the Corporate Trust Office or at such other address in the State of Delaware as the Owner Trustee
may designate by written notice to the Transferor and the Indenture Trustee.

Section 2.3 Purposes and Powers. (a) The purpose of the Trust is to engage in the
activities set forth in the Program Documents and any other documents or instruments related
thereto and any activities within the scope of Section 2.3(b) of this Agreement.

(b) Subject to the limitations contained in this Agreement, the Trust shall have all of the
powers that may be possessed or exercised by a statutory trust organized under the Statutory Trust
Act and shall have the power and authority to take all actions deemed necessary, appropriate or
advisable by the Administrator in furtherance of the Trust’s purpose. Subject to the limitations
contained in this Agreement, the Trust shall have the power and authority to take any and all
actions necessary or desirable to engage in the following activities:

(i) to acquire Mortgage Loans and other rights with respect to such Mortgage
Loans as contemplated by the Program Documents;

(ii) to arrange for the sale or other disposition of, and to sell or
otherwise dispose of, Mortgage Loans to purchasers, as contemplated by the
Program Documents;

(iii) to issue and sell notes, as contemplated by the Program Documents, in
each case the payments of which shall be used to purchase Mortgage Loans or
to pay Obligations or to make any other payments contemplated by the Program
Documents or any other document or instruments related thereto;

(iv) to pay the organizational, start-up and routine transactional expenses
of the Trust;

(v) to make payments in respect of distributions, interest, principal, and
premium (if applicable) on notes and securities from the proceeds of
Mortgage Loans and the other Owner Trust Estate assets and amounts received
pursuant to the Interest Rate Swaps and to make and receive payments in
connection with the Interest Rate Swaps and other hedge instruments, as
contemplated by the Program Documents;

(vi) to assign, grant, transfer, pledge, mortgage and convey the Owner Trust
Estate to the Collateral Agent pursuant to the Security Agreement;

(vii) to enter into and perform its obligations under this Agreement, the
Program Documents or any other document or instrument related thereto;

(viii) to accept capital contributions from the Sellers, as contemplated by
the Program Documents;

(ix) to engage in such other activities as may be required in connection
with the conservation of the Owner Trust Estate and the making of payments
to the Secured Parties; and

(x) to engage in any other activities which are necessary, suitable,
convenient or appropriate to accomplish the foregoing or are incidental
thereto or in connection therewith.

Notwithstanding any other provision of this Agreement, the Trust may execute, deliver and
perform, and the Owner Trustee and the Administrator, as agent of the Trust, and any other agent of
the Trust, or its designated agent may execute and deliver on behalf of the Trust, the obligations
of the Trust set forth in the Program Documents or any other document or instrument contemplated by
the Program Documents, and any amendments thereof, all without any further act, vote or approval of
the Administrator, the Depositor or any other Person. The Owner Trustee or the Administrator, as
agent of the Trust, and any other agent of the Trust, are hereby authorized to enter into the
agreements described in the preceding sentence on behalf of the Trust, but such authorization
should not be deemed an additional restriction on the power of the Owner Trustee or the
Administrator, as agent of the Trust, and any other agent of the Trust, to enter into other
agreements on behalf of the Trust (subject to the restrictions on the Trust entering into such
agreements as set forth in the Program Documents). In furtherance of this purpose, the Owner
Trustee and the Administrator, as agent of the Trust, and any other agent of the Trust, shall have
all powers necessary, suitable, convenient or appropriate for the accomplishment of the aforesaid
purpose, alone or with others, as principal or agent.

(c) Notwithstanding any other provision of this Agreement and any provision of law that
otherwise so empowers the Trust, the Trust shall not, without Rating Agency Confirmation:

(i) engage in any business or activity other than those set forth in
Section 2.3(b), and other than as permitted in the Program Documents
and any other document or instrument contemplated by the Program Documents;

(ii) incur any indebtedness, or assume or guaranty any indebtedness of any
other Person, other than as expressly permitted in the Program Documents and
any other document or instrument related thereto;

(iii) enter into any contract other than as contemplated by the Program
Documents to which it is expressed to be a party; and

(iv) to the fullest extent permitted by law, dissolve, liquidate or
consolidate or merge with or into any other Person or sell, lease or
otherwise transfer its properties and assets substantially as an entirety to
any Person, other than as permitted in the Program Documents and any other
document or instrument related thereto.

(d) Notwithstanding any other provision of this Agreement and any provision of law that
otherwise so empowers the Trust, the Trust shall at all times:

(i) not commingle the Trust’s assets with those of the Transferor or any
other Person (except as contemplated by the Program Documents), and not hold
itself out as being liable for the debts of another;

(ii) not be named, or enter into an agreement to be named, directly or
indirectly, as a direct or contingent beneficiary or loss payee on any
insurance policy covering the assets of the Transferor;

(iii) maintain its books of account and payroll (if any) separate from those
of any Affiliate thereof;

(iv) maintain its bank accounts separate from any other Person;

(v) use separate stationery, invoices, and checks bearing its own name;

(vi) not pledge its assets to secure the obligations of any other Person,
other than as contemplated in the Program Documents;

(vii) correct any known misunderstanding regarding its separate identity and
not identify itself as a department or division of any other Person; and

(viii) not form, acquire or hold any subsidiary (whether corporate,
partnership, limited liability company or other) or own any equity interest
in any other entity.

Section 2.4 Appointment of Owner Trustee. The Depositor hereby appoints the Owner
Trustee as trustee of the Trust. Pursuant to this Agreement, the Owner Trustee shall have all the
rights, powers and duties set forth herein.

Section 2.5 Capital Contribution of Owner Trust Estate. The Depositor hereby conveys,
assigns, transfers and sets over to the Trust the sum of $100.00. The Owner Trustee hereby
acknowledges receipt in trust from the Depositor, as of the date hereof, of the foregoing
contribution, which shall constitute the initial Owner Trust Estate and such cash contribution
shall be deposited into the Collection Account. The Depositor shall pay organizational expenses of
the Trust as they may arise or shall, upon the request of the Owner Trustee, promptly reimburse the
Owner Trustee for any such expenses paid by the Owner Trustee. Pursuant to the Mortgage Loan
Purchase and Servicing Agreement, the Sellers may make capital contributions to the Transferor in
connection with each sale of Mortgage Loans.

Section 2.6 Declaration of Trust. The Owner Trustee hereby declares that it will hold
the Owner Trust Estate in trust upon and subject to the conditions set forth herein for the use and
benefit of the Transferor, subject to the obligations of the Trust under the Program Documents. It
is the intention of the parties hereto that the Trust constitute a statutory trust under the
Statutory Trust Act and that this Agreement constitute the governing instrument of such statutory
trust. It is the intention of the parties hereto that, solely for income and franchise tax
purposes, the Trust shall be treated as a disregarded entity, with the assets of the Trust being
treated as owned by the Transferor as the owner of the Ownership Interest. The parties agree that,
unless otherwise required by appropriate tax authorities, the Trust will file or cause to be filed
annual or other necessary returns, reports and other forms, if any, consistent with the
characterization of the Trust as provided in the preceding sentence for such tax purposes.
Effective as of the date hereof, the Owner Trustee shall have all rights, powers and duties set
forth herein and in the Statutory Trust Act with respect to accomplishing the purposes of the
Trust. The Owner Trustee is hereby authorized and directed to execute and file a certificate of
trust with the Delaware Secretary of State in the form attached hereto as Exhibit A and
file the Certificate of Conversion with the Secretary of State.

Section 2.7 Title to Trust Property. (a) Subject to the Security Agreement, legal
title to all the Owner Trust Estate shall be vested at all times in the Trust except where
applicable law in any jurisdiction requires title to any part of the Owner Trust Estate to be
vested in a separate trustee or trustees, in which case title shall be deemed to be vested in a
co-owner trustee and/or a separate trustee, as the case may be. Any such vesting in a co-owner
trustee and/or separate trustee shall only occur and be effective (x) on not less than ten (10)
days’ prior written notice to the Trust and the Administrator, and (y) the Trust having complied
with its obligations under the Security Agreement to protect the Collateral Agent’s security
interest in the property of the Trust.

(b) The Transferor shall not have legal title to any part of the Owner Trust Estate. No
transfer by operation of law or otherwise of any interest of the Transferor shall operate to
terminate this Agreement or the trusts hereunder or entitle any transferee to an accounting or to
the transfer to it of any part of the Owner Trust Estate.

Section 2.8 Situs of Trust. The Trust will be located and administered in the State
of Delaware. All bank accounts maintained by the Owner Trustee on behalf of the Trust shall be
located in the State of Delaware or the State of New York. The Trust shall not have any employees;
provided, however, that nothing herein shall restrict or prohibit the Owner Trustee
from having employees within or without the State of Delaware. Payments will be received by the
Trust only in Delaware or New York, and payments will be made by the Trust only from Delaware or
New York.

Section 2.9 Representations and Warranties of the Depositor.

The Depositor hereby represents and warrants to the Owner Trustee and the Collateral Agent
that:

(a) The Depositor is a corporation duly organized, validly existing and in good standing under
the laws of the State of California and has the corporate power to own its assets and to transact
the business in which it is currently engaged. The Depositor is duly qualified to do business as a
foreign corporation and is in good standing in each jurisdiction in which the character of the
business transacted by it or properties owned or leased by it require such qualification and in
which the failure to so qualify would have a material adverse effect on the business, properties,
assets or condition (financial or other) of the Depositor;

(b) The Depositor has the power and authority to make, execute, deliver and perform its
obligations under this Agreement and to perform its obligations with respect to all of the
transactions contemplated under this Agreement, and has taken all necessary corporate action to
authorize the execution, delivery and performance of its obligations under this Agreement. When
executed and delivered, this Agreement will constitute the legal, valid and binding obligation of
the Depositor enforceable in accordance with its terms, except as enforcement of such terms may be
limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights
generally and by the availability of equitable remedies (whether in a proceeding at law or in
equity);

(c) The Depositor is not required to obtain the consent of any other Person or any consent,
license, approval or authorization from, or registration or declaration with, any governmental
authority, bureau or agency in connection with the execution, delivery, performance, validity or
enforceability of this Agreement, except for such consents, licenses, approvals or authorizations,
or registrations or declarations, as shall have been obtained or filed, as the case may be;

(d) The execution and delivery of this Agreement and the performance of the transactions
contemplated hereby by the Depositor will not violate any provision of any existing law or
regulation or any order or decree of any court applicable to the Depositor or any provision of the
Certificate of Incorporation or Bylaws of the Depositor, or constitute a material breach of any
mortgage, indenture, contract or other agreement to which the Depositor is a party or by which the
Depositor may be bound; and

(e) No litigation or administrative proceeding of or before any court, tribunal or
governmental body is currently pending, or to the knowledge of the Depositor threatened, against
the Depositor or any of its properties or with respect to this Agreement which in the opinion of
the Depositor has a reasonable likelihood of resulting in a material adverse effect on the
transactions contemplated by this Agreement.

ARTICLE III

OWNERSHIP INTEREST AND TRANSFERS OF THE OWNERSHIP INTEREST

Section 3.1 Initial Ownership. The Transferor is the sole owner of the Trust.

Section 3.2 The Ownership Interest. The Ownership Interest (as defined below) shall
be uncertificated and shall represent the entire undivided beneficial ownership interest in the
Owner Trust Estate, subject to the debt represented by the Notes (the “Ownership
Interest”). The Ownership Interest may be assigned by the Transferor as provided in
Section 3.13.

Upon completion of a transfer in accordance with the terms and conditions of this
Article III, a transferee of the Ownership Interest shall become the Transferor, and shall
be entitled to the rights and subject to the obligations of the Transferor hereunder, upon such
transferee’s acceptance of the Ownership Interest duly registered in such transferee’s name
pursuant to Section 3.4 below.

Section 3.3 [Reserved].

Section 3.4 Registration of Transfer and Exchange of Ownership Interest. The
Registrar shall keep or cause to be kept, at the office or agency maintained pursuant to
Section 3.8, a Register in which, subject to such reasonable regulations as it may
prescribe, the Registrar shall provide for the registration of the Ownership Interest and of
transfer and exchange of the Ownership Interest as herein provided. The Registrar, subject to
Section 3.13 hereof, on behalf of the Trust shall note on the Register the transfer of the
Ownership Interest.

Section 3.5 [Reserved].

Section 3.6 Persons Deemed Transferors. Prior to due assignment of the Ownership
Interest for registration of transfer, the Depositor, the Owner Trustee and the Registrar may treat
the Person in whose name the Ownership Interest shall be registered in the Register as the owner
thereof for the purpose of receiving distributions pursuant to Section 5.2 hereof and for
all other purposes whatsoever, and none of the Depositor, the Owner Trustee or the Registrar shall
be bound by any notice to the contrary.

Section 3.7 [Reserved].

Section 3.8 Maintenance of Office or Agency. The Owner Trustee shall maintain an
office or offices or agency or agencies (initially, the Corporate Trust Office of the Owner
Trustee) where instructions for the transfer of the Ownership Interest may be delivered for
registration of transfer or exchange pursuant to Section 3.4 and where notices and demands
to or upon the Registrar in respect of the Ownership Interest and the Program Documents may be
served. The Owner Trustee shall give prompt written notice to the Transferor of any change in the
location of the Register or any such office or agency.

	 	 	 
	Section 3.9

	 	[Reserved].
	
 
	 	 
	Section 3.10

	 	[Reserved].
	
 
	 	 
	Section 3.11

	 	[Reserved].
	
 
	 	 
	Section 3.12

	 	[Reserved].
	
 
	 	 

Section 3.13 Restrictions on Transfers of Ownership Interest. To the fullest extent
permitted by applicable law, the Ownership Interest shall not be sold, pledged, transferred or
assigned, except as provided below.

(a) The Ownership Interest may not be acquired by or for the account of (i) an employee
benefit plan (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”)), whether or not subject to the provisions of Title I of ERISA
(including, without limitation, foreign or government plans), (ii) a plan described in Section
4975(e)(1) of the Code, or (iii) any entity, including an insurance company separate account or
general account, whose underlying assets include plan assets of any of the foregoing by reason of a
plan’s investment in the entity (each, a “Benefit Plan Investor”). Each prospective owner
of the Ownership Interest, other than the Depositor or an affiliate of the Depositor, shall
represent and warrant, in writing, to the Owner Trustee and the Registrar and any of their
respective successors that:

(i) Such Person is (A) a “qualified institutional buyer” as defined in Rule
144A under the Securities Act of 1933, as amended (the “Securities
Act”), and is aware that the seller of such Ownership Interest may be
relying on the exemption from the registration requirements of the
Securities Act provided by Rule 144A and is acquiring such Ownership
Interest for its own account or for the account of one or more qualified
institutional buyers for whom it is authorized to act, (B) an “accredited
investor” as defined in Rule 501(a) under the Securities Act, or (C) a
Person involved in the organization or operation of the Trust or an
affiliate of such Person within the meaning of Rule 3a-7 of the 1940 Act, as
amended (including, but not limited to, the Depositor or the Transferor).

(ii) Such Person understands that such Ownership Interest has not been and
will not be registered under the Securities Act and may be offered, sold,
pledged or otherwise transferred only to a person whom the seller reasonably
believes is (A) a “qualified institutional buyer,” (B) an “accredited
investor” or (C) a Person involved in the organization or operation of the
Trust or an affiliate of such Person, in each case in a transaction meeting
the requirements of Rule 144A under the Securities Act or that is otherwise
exempt from registration under the Securities Act and in accordance with any
applicable securities laws of any state of the United States.

(iii) Such Person shall comply with the provisions of Section
3.13(b), as applicable, relating to the ERISA restrictions with respect
to the acceptance or acquisition of such Ownership Interest.

(iv) Such Person is not a “United States Person” as defined in Section
7701(a)(30) of the Code.

(b) Each Prospective Transferor, other than the initial Transferor or an affiliate of the
initial Transferor, shall either:

(i) represent and warrant, in writing, to the Owner Trustee and the
Registrar and any of their respective successors, in accordance with
Exhibit B hereto, that the Prospective Transferor is not a Benefit
Plan Investor; or

(ii) furnish to the Owner Trustee and the Registrar and any of their
respective successors an Opinion of Counsel acceptable to such persons that
(A) the proposed issuance or transfer of such Ownership Interest to such
Prospective Transferor will not cause any assets of the Trust to be deemed
“plan assets” within the meaning of 29 C.F.R. 2510.3-101, as modified by
Section 3(42) of ERISA, and (B) the proposed holding or transfer of such
Ownership Interest will not cause the Owner Trustee or the Registrar or any
of their respective successors to be a fiduciary within the meaning of
Section 3(21) of ERISA and will not give rise to a non-exempt prohibited
transaction described in Section 406 of ERISA or Section 4975(c)(1) of the
Code.

(c) Neither the Ownership Interest nor any beneficial ownership interest therein may be
transferred to any Person unless Rating Agency Confirmation shall have been obtained, and any
purported transfer in violation of this Section 3.13(c) shall be null and void ab initio.

(d) No pledge or transfer of the Ownership Interest shall be effective unless such pledge or
transfer is (i) to a single beneficial owner and (ii) accompanied by an Opinion of Counsel
satisfactory to the Owner Trustee, which Opinion of Counsel shall not be an expense of the Trust,
the Owner Trustee, the Registrar or the Administrator, to the effect that such pledge or transfer
will not cause the Trust to be treated for U.S. federal income tax purposes as a taxable mortgage
pool, association or a publicly traded partnership taxable as a corporation or prevent the
outstanding Notes from being characterized as debt for U.S. federal income tax purposes.

ARTICLE IV

ACTIONS BY OWNER TRUSTEE

Section 4.1 Prior Notice to the Transferor with Respect to Certain Matters. With
respect to the following matters, the Owner Trustee shall not take action, and none of the
Transferor, the Administrator, the Indenture Trustee, the Collateral Agent, the Depositary, any
Swap Counterparty or any other Person shall direct the Owner Trustee to take any action, unless (i)
at least 30 days before the taking of such action, the Owner Trustee shall have notified the
Transferor, the Collateral Agent, the Depositary and the Swap Counterparties in writing of the
proposed action and the Transferor shall not have notified the Owner Trustee in writing prior to
the 30th day after such notice is given that the Transferor has withheld consent or the Transferor
has provided alternative direction, and (ii) in the case of clauses (b), (c),
(d), (i), (j), and (o), Rating Agency Confirmation shall have been
obtained:

(a) the initiation of any claim or lawsuit by the Trust (except claims or lawsuits brought in
connection with the collection of the Mortgage Loans) and the compromise of any action, claim or
lawsuit brought by or against the Trust (except with respect to the aforementioned claims or
lawsuits for collection of the Mortgage Loans);

(b) the election by the Trust to file an amendment to the Certificate of Trust (unless such
amendment is required to be filed under the Statutory Trust Act);

(c) the amendment or other change to this Agreement or any Program Document in circumstances
where the consent of any Noteholder is required;

(d) the amendment or other change to this Agreement or any Program Document in circumstances
where the consent of any Noteholder is not required and such amendment materially adversely affects
the interest of the Transferor;

(e) [Reserved].

(f) the consent to the calling or waiver of any default of any Program Document;

(g) the consent to the assignment by the Indenture Trustee of its obligations under any
Program Document;

(h) except as provided in Article IX hereof, dissolve, terminate or liquidate the
Trust in whole or in part;

(i) merge or consolidate the Trust with or into any other entity, or, except as contemplated
by the Program Documents, convey or transfer all or substantially all of the Trust’s assets to any
other entity;

(j) cause the Trust to incur, assume or guaranty any indebtedness other than as permitted by
the Program Documents;

(k) do any act that conflicts with any other Program Document;

(l) do any act which would make it impossible to carry on the ordinary business of the Trust;

(m) confess a judgment against the Trust;

(n) possess Trust assets, or assign the Trust’s right to property, for other than a Trust
purpose; or

(o) change the Trust’s purpose and powers from those set forth in this Agreement.

In addition, except as specifically contemplated by the Program Documents, the Trust shall not
commingle its assets with those of any other entity or pledge its assets for the benefit of any
other entity. The Trust shall maintain its financial and accounting books and records and its bank
accounts separate from those of any other entity. Except as expressly set forth herein and in the
Program Documents, the Trust shall pay its indebtedness, operating expenses and liabilities from
its own funds, and the Trust shall not pay or guaranty the indebtedness, operating expenses and
liabilities of any other Person. All transactions entered into by the Trust shall be fully
documented and shall have provisions that are consistent with and otherwise shall reflect arm’s
length transactions undertaken in good faith for bona fide purposes. The Trust
shall maintain appropriate minutes or other records of all appropriate actions, shall hold itself
out as a separate legal entity, and shall maintain its office separate from the offices of the
Depositor or the Administrator, and any of their respective affiliates. This Agreement and the
Program Documents shall be the only agreements among the parties hereto with respect to the
creation, operation and termination of the Trust. The pricing and other material terms of all
transactions and agreements to which the Trust is a party shall be intrinsically fair to all
parties thereto.

The Owner Trustee shall not have the power, except upon the written direction of the
Transferor and to the extent otherwise consistent with the Program Documents, to (i) institute
proceedings to have the Trust declared or adjudicated a bankrupt or insolvent, (ii) consent to the
institution of bankruptcy or insolvency proceedings against the Trust, (iii) file a petition or
consent to a petition seeking reorganization or relief on behalf of the Trust under any applicable
federal or state law relating to bankruptcy, (iv) consent to the appointment of a receiver,
liquidator, assignee, trustee, sequestrator (or any similar official) of the Trust or any portion
of the property of the Trust, (v) make any assignment for the benefit of the Trust’s creditors,
(vi) cause the Trust to admit in writing its inability to pay its debts generally as they become
due, or (vii) take any action, or cause the Trust to take any action, in furtherance of any of the
foregoing (any of the above, a “Bankruptcy Action”). So long as any Notes are outstanding,
the Transferor shall not have the power to take, and shall not take, any Bankruptcy Action with
respect to the Trust or direct the Owner Trustee to take any Bankruptcy Action with respect to the
Trust. Nothing herein shall limit any “non-petition” covenants to any of the Program Documents,
including without limitation, any covenant not to undertake any Bankruptcy Action for a period of
one year and one day following payment in full of the last rated obligation of the Trust.

Section 4.2 [Reserved].

Section 4.3 Action by Transferor with Respect to Bankruptcy. To the fullest extent
permitted by applicable law, the Owner Trustee shall not have the power to commence a voluntary
proceeding in bankruptcy relating to the Trust without the prior consent and approval of (i) the
Transferor, (ii) the Indenture Trustee, (iii) the Depositary, (iv) the Collateral Agent and (v)
each Swap Counterparty, and the delivery to the Owner Trustee by the Transferor of a certificate
certifying that such Transferor reasonably believes that the Trust is insolvent. The terms of this
Section 4.3 shall survive the termination of this Agreement.

Section 4.4 Restrictions on Transferor’s Power. The Transferor shall not direct the
Owner Trustee to take or refrain from taking any action if such action or inaction would be
contrary to any obligation of the Trust or the Owner Trustee under this Agreement or any of the
Program Documents or would be contrary to Section 2.3 hereof, nor shall the Owner Trustee
be obligated to follow any such direction, if given.

ARTICLE V

APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

	 	 	 
	Section 5.1

	 	[Reserved].
	
 
	 	 
	Section 5.2

	 	Application Of Trust Funds.
	
 
	 	 

(a) All Trust Funds received by the Owner Trustee shall be immediately distributed to the
Transferor.

(b) [Reserved].

Section 5.3 Method of Payment. Distributions required to be made to the Transferor on
any day shall be made to the Transferor of record on the preceding Record Date.

Section 5.4 [Reserved].

Section 5.5 Accounting and Reports to the Transferor, the Internal Revenue Service and
Others. The Administrator shall deliver (or cause to be delivered) to the Transferor such
information, reports or statements as may be required by the Code and applicable Treasury
Regulations and as may be required to enable the Transferor to prepare its respective federal and
state income tax returns. Consistent with the Trust’s characterization as a disregarded entity
within the meaning of Treasury regulations Section 301.7701-2(a), no U.S. federal income tax return
shall be filed on behalf of the Trust unless either (a) the Trust or the Transferor shall receive
an Opinion of Counsel that based on a change in applicable law occurring after the date hereof, the
Code requires such a filing or (b) the Internal Revenue Service shall determine that the Trust is
required to file such a return. The Administrator shall prepare or shall cause to be prepared any
tax returns, if any, required to be filed by the Trust and shall remit such returns to the
Transferor at least five days before such returns are due to be filed. Such returns shall be filed
by, or at the direction of, the Administrator with the appropriate tax authorities. In no event
shall the Transferor or the Owner Trustee be liable for any liabilities, costs or expenses of the
Trust arising out of the application of any tax law, including federal, state, foreign or local
income or excise taxes or any other tax imposed on or measured by income (or any interest, penalty
or addition with respect thereto or arising from a failure to comply therewith), except for any
such liability, cost or expense attributable to the Transferor’s breach of its obligations under
this Agreement.

Section 5.6 Signature on Returns.

Upon written instruction of the Transferor, the Owner Trustee shall sign on behalf of the
Trust the tax returns of the Trust, if any, unless applicable law requires the Transferor to sign
such documents, in which case such documents shall be signed by the Transferor.

ARTICLE VI

AUTHORITY AND DUTIES OF OWNER TRUSTEE

Section 6.1 General Authority. The Owner Trustee is authorized and directed to
execute and deliver the Notes, to direct the Indenture Trustee or the Depositary to authenticate
the Notes, up to the amounts set forth in the Program Documents, and to execute and deliver the
Program Documents to which the Trust is to be a party and each certificate or other document
attached as an exhibit to or contemplated by the Program Documents to which the Trust is to be a
party and any other agreement or instrument described in Article II, in each case, in such
form as the Transferor shall approve, as evidenced conclusively by the Owner Trustee’s execution
thereof. In addition to the foregoing, the Owner Trustee is authorized, but shall not be
obligated, to take all actions required of the Trust pursuant to the Program Documents.

Section 6.2 General Duties. It shall be the duty of the Owner Trustee to discharge
(or cause to be discharged) all of its responsibilities pursuant to the terms of this Agreement and
to administer the Trust in the interest of the Transferor, subject to the Program Documents and in
accordance with the provisions of this Agreement. Notwithstanding the foregoing, the Owner Trustee
shall be deemed to have discharged its duties and responsibilities hereunder and under the Program
Documents to the extent the Administrator has agreed in the Program Documents to perform any act or
to discharge any duty of the Owner Trustee or the Trust hereunder or under any Program Document,
and the Owner Trustee shall not be held liable for the default or failure of the Administrator to
carry out its obligations under the Program Documents.

Section 6.3 Action upon Instruction. (a) Subject to Article IV herein and in
accordance with the terms of the Program Documents, the Transferor may by written instruction
direct the Owner Trustee in the management of the Trust but only to the extent consistent with the
limited purpose of the Trust. Such direction may be exercised at any time by written instruction
of the Transferor.

(b) Notwithstanding the foregoing, the Owner Trustee shall not be required to take any action
hereunder or under any Program Document if the Owner Trustee shall have reasonably determined, or
shall have been advised by counsel, that such action is likely to result in liability on the part
of the Owner Trustee or is contrary to the terms hereof or of any Program Document or is otherwise
contrary to law.

(c) Whenever the Owner Trustee is unable to decide between alternative courses of action
permitted or required by the terms of this Agreement or under any Program Document, the Owner
Trustee shall promptly give notice (in such form as shall be appropriate under the circumstances)
to the Transferor requesting instruction from the Transferor as to the course of action to be
adopted, and to the extent the Owner Trustee acts in good faith in accordance with any written
instruction of the Transferor received, the Owner Trustee shall not be liable on account of such
action to any Person. If the Owner Trustee shall not have received appropriate instruction within
10 days of such notice (or within such shorter period of time as reasonably may be specified in
such notice or may be necessary under the circumstances) it may, but shall be under no duty to,
take or refrain from taking such action, not inconsistent with this Agreement or the Program
Documents, as it shall deem to be in the best interest of the Transferor, and shall have no
liability to any Person for such action or inaction.

(d) In the event that the Owner Trustee is unsure as to the application of any provision of
this Agreement or any Program Document or any such provision is ambiguous as to its application, or
is, or appears to be, in conflict with any other applicable provision, or in the event that this
Agreement provides no direction to the Owner Trustee or is silent or is incomplete as to the course
of action that the Owner Trustee is required to take with respect to a particular set of facts, the
Owner Trustee may give notice (in such form as shall be appropriate under the circumstances) to the
Transferor requesting instruction and, to the extent that the Owner Trustee acts or refrains from
acting in good faith in accordance with any such instruction received from the Transferor, the
Owner Trustee shall not be liable, on account of such action or inaction, to any Person. If the
Owner Trustee shall not have received appropriate instruction within 10 days of such notice (or
within such shorter period of time as reasonably may be specified in such notice or may be
necessary under the circumstances) it may, but shall be under no duty to, take or refrain from
taking such action, not inconsistent with this Agreement or the Program Documents, as it shall deem
to be in the best interest of the Transferor, and shall have no liability to any Person for such
action or inaction.

Section 6.4 No Duties Except as Specified in this Agreement, the Program Documents or in
Instructions. The Owner Trustee shall not have any duty or obligation to manage, make any
payment with respect to, register, record, sell, dispose of, or otherwise deal with the Owner Trust
Estate, or to otherwise take or refrain from taking any action under, or in connection with, any
document contemplated hereby to which the Owner Trustee or the Trust is a party, except as
expressly provided by the terms of this Agreement, or in any document or written instruction
received by the Owner Trustee pursuant to Section 6.3; and no implied duties or obligations
shall be read into this Agreement or any Program Document against the Owner Trustee. The Owner
Trustee shall have no responsibility for filing any financing or continuation statement in any
public office at anytime or to otherwise perfect or maintain the perfection of any security
interest or lien granted to it hereunder or to prepare or file any Securities and Exchange
Commission filing for the Trust or to record this Agreement or any Program Document. The Owner
Trustee nevertheless agrees that it will, at its own cost and expense, promptly take all action as
may be necessary to discharge any liens on any part of the Owner Trust Estate that result from
actions by, or claims against, the Owner Trustee in its individual capacity that are not related to
the ownership or the administration of the Owner Trust Estate.

Section 6.5 No Action Except Under Specified Documents or Instructions. The Owner
Trustee shall not manage, control, use, sell, dispose of or otherwise deal with any part of the
Owner Trust Estate except (i) in accordance with the powers granted to and the authority conferred
upon the Owner Trustee pursuant to this Agreement, (ii) in accordance with the Program Documents
and (iii) in accordance with any document or instruction delivered to the Owner Trustee pursuant to
Section 6.3 above. The Owner Trustee shall not be required to take any action under this
Agreement if the Owner Trustee shall reasonably determine or shall have been advised by counsel
that such action is contrary to the terms of this Agreement or is otherwise contrary to law.

Section 6.6 Restrictions. The Owner Trustee shall not take any action (a) that is
inconsistent with the purposes of the Trust set forth in Section 2.3 hereof or (b) that, to
the actual knowledge of the Owner Trustee, would result in the Trust’s becoming taxable as a
corporation for U.S. federal income tax purposes. The Transferor shall not direct the Owner
Trustee to take any action that would violate the provisions of this Section 6.6.

ARTICLE VII

CONCERNING THE OWNER TRUSTEE

Section 7.1 Acceptance of Trusts and Duties. The Owner Trustee accepts the trusts
hereby created and agrees to perform its duties hereunder with respect to such trusts but only upon
the terms of this Agreement. The Owner Trustee also agrees to disburse all moneys actually
received by it constituting part of the Owner Trust Estate upon the terms of the Program Documents
and this Agreement. The Owner Trustee shall not be answerable or accountable hereunder or under
any Program Document under any circumstances, except (i) for its own willful misconduct, bad faith
or gross negligence or (ii) in the case of the inaccuracy of any representation or warranty
contained in Section 7.3 below expressly made by the Owner Trustee. In particular, but not
by way of limitation (and subject to the exceptions set forth in the preceding sentence):

(a) the Owner Trustee shall not be liable for any error of judgment made by a responsible
officer of the Owner Trustee;

(b) the Owner Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in accordance with the instructions of the Transferor or the Administrator;

(c) no provision of this Agreement or any Program Document shall require the Owner Trustee to
expend or risk funds or otherwise incur any financial liability in the performance of any of its
rights or powers hereunder or under any Program Document if the Owner Trustee shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured or provided to it;

(d) under no circumstances shall the Owner Trustee be liable for indebtedness evidenced by or
arising under any of the Program Documents, including the principal of and interest on the Notes;

(e) the Owner Trustee shall not be responsible for or in respect of the validity or
sufficiency of this Agreement or for the due execution hereof by the Depositor or the Administrator
or for the form, character, genuineness, sufficiency, value or validity of any of the Owner Trust
Estate or for or in respect of the validity or sufficiency of the Program Documents, and the Owner
Trustee shall in no event assume or incur any liability, duty, or obligation to any Noteholder, or
the Transferor other than as expressly provided for herein and in the Program Documents;

(f) the Owner Trustee shall not be liable for the default or misconduct of the Indenture
Trustee, the Collateral Agent, the Depositary, the Administrator or the Servicer under any of the
Program Documents or otherwise and the Owner Trustee shall have no obligation or liability to
perform, or monitor the performance of, the obligations of the Trust under this Agreement or the
Program Documents that are required to be performed by the Indenture Trustee, the Collateral Agent,
the Depositary, the Administrator, the Servicer or any other Person;

(g) the Owner Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Agreement, or to institute, conduct or defend any litigation under this
Agreement or otherwise or in relation to this Agreement or any Program Document, at the request,
order or direction of the Transferor, unless such Transferor has offered to the Owner Trustee
security or indemnity satisfactory to it against the costs, expenses and liabilities that may be
incurred by the Owner Trustee therein or thereby. The right of the Owner Trustee to perform any
discretionary act enumerated in this Agreement or in any Program Document shall not be construed as
a duty, and the Owner Trustee shall not be answerable for other than its gross negligence or
willful misconduct in the performance of any such act;

(h) With respect to the Noteholders, the Owner Trustee undertakes to perform or observe only
such of the covenants and obligations of the Owner Trustee as are expressly set forth in this
Agreement, and no implied covenants or obligations with respect to the Noteholders shall be read
into this Agreement or the other Program Documents against the Owner Trustee. The Owner Trustee
shall not be deemed to owe any fiduciary duty to the Noteholders, and shall not be liable to any
such person for the failure of the Trust to perform its obligations to such persons other than as a
result of the gross negligence or willful misconduct of the Owner Trustee in the performance of its
express obligations under this Agreement; and

(i) All funds deposited with the Owner Trustee hereunder may be held in a non-interest bearing
trust account and the Owner Trustee shall not be liable for any interest thereon or for any loss as
a result of the investment thereof at the direction of the Depositor.

Section 7.2 Furnishing of Documents. The Owner Trustee shall furnish to the
Transferor promptly upon receipt of a written request therefor, duplicates or copies of all
reports, notices, requests, demands, certificates, financial statements and any other instruments
furnished to the Owner Trustee under the Program Documents.

Section 7.3 Representations and Warranties.

The Owner Trustee hereby represents and warrants to the Depositor, for the benefit of the
Transferor, the Noteholders, the Indenture Trustee, the Collateral Agent, the Depositary and the
Swap Counterparties, that:

(a) It is a state banking corporation duly formed and validly existing under the laws of the
State of Delaware. It has all requisite corporate power and authority to execute, deliver and
perform its obligations under this Agreement;

(b) It has taken all corporate action necessary to authorize the execution and delivery by it
of this Agreement, and this Agreement will be executed and delivered by one of its officers who is
duly authorized to execute and deliver this Agreement on its behalf. The execution, delivery and
performance by the Owner Trustee of this Agreement will not require the authorization, consent or
approval of, the giving of notice to, the filing or registration with, or the taking of any other
action with respect to, any governmental authority or agency of the State of Delaware or the United
States of America governing its trust powers;

(c) None of the execution and the delivery by it of this Agreement, or the consummation by it
of the transactions contemplated hereby, or compliance by it with any of the terms or provisions
hereof will contravene any governmental rule or regulation governing the banking or trust powers of
the Owner Trustee or any judgment or order binding on it, or constitute any default under its
charter documents or by-laws or any indenture, mortgage, contract, agreement or instrument to which
it is a party or by which any of its properties may be bound;

(d) This Agreement has been duly authorized, executed and delivered by the Owner Trustee and
constitutes a valid, legal and binding obligation of the Owner Trustee, enforceable against it in
accordance with the terms hereof, subject to applicable bankruptcy, insolvency, reorganization,
moratorium and other laws affecting the enforcement of creditors’ rights generally and to general
principles of equity, regardless of whether such enforcement is considered in a proceeding in
equity or at law;

(e) The Owner Trustee is not in default with respect to any order or decree of any court or
any order, regulation or demand of any federal, state, municipal or governmental agency, which
default might have consequences that would materially and adversely affect the condition (financial
or other) or operations of the Owner Trustee or its properties or might have consequences that
would materially adversely affect its performance hereunder; and

(f) No litigation is pending or, to the best of the Owner Trustee’s knowledge, threatened
against the Owner Trustee which would prohibit its entering into this Agreement or performing its
obligations under this Agreement.

Section 7.4 Reliance; Advice of Counsel. (a) The Owner Trustee shall incur no
liability to anyone in acting upon any signature, instrument, notice, resolution, request, consent,
order, certificate, report, opinion, bond, or other document or paper believed by it to be genuine
and believed by it to be signed by the proper party or parties. The Owner Trustee may accept a
certified copy of a resolution of the board of directors or other governing body of any corporate
party as conclusive evidence that such resolution has been duly adopted by such body and that the
same is in full force and effect. As to any fact or matter the method of the determination of
which is not specifically prescribed herein, the Owner Trustee may for all purposes hereof rely on
a certificate, signed by the president or any vice president or by the treasurer or any assistant
treasurer or other authorized officer of the relevant party, as to such fact or matter and such
certificate shall constitute full protection to the Owner Trustee for any action taken or omitted
to be taken by it in good faith in reliance thereon.

(b) In the exercise or administration of the trusts hereunder and in the performance of its
duties and obligations under this Agreement or the Program Documents, the Owner Trustee (i) may, at
the expense of the Administrator, act directly or through its agents or attorneys pursuant to
agreements entered into with any of them, and the Owner Trustee shall not be liable for the conduct
or misconduct of such agents or attorneys if such agents or attorneys shall have been selected by
the Owner Trustee with reasonable care, and (ii) may, at the expense of the Administrator, consult
with counsel, accountants and other skilled persons to be selected with reasonable care. The Owner
Trustee shall not be liable for anything done, suffered or omitted in good faith by it in
accordance with the opinion or advice of any such counsel, accountants or other such persons and
not contrary to this Agreement or any Program Document.

Section 7.5 Not Acting in Individual Capacity. Except as provided in this Article
VII, in accepting the trusts hereby created, Christiana Bank & Trust Company acts solely as
Owner Trustee hereunder and not in its individual capacity and all Persons having any claim against
the Owner Trustee by reason of the transactions contemplated by this Agreement or any Program
Document shall look only to the Owner Trust Estate for payment or satisfaction thereof.

Section 7.6 Owner Trustee Not Liable for the Ownership Interest or the Mortgage Loans.
The recitals contained herein and in the Ownership Interest shall be taken as the statements of
the Depositor, and the Owner Trustee assumes no responsibility for the correctness thereof. The
Owner Trustee makes no representations as to the validity or sufficiency of this Agreement, of any
Program Document or of the Ownership Interest (other than as specified in Section 7.3
hereof) or of the Notes, or of any Mortgage Loans or related documents. The Owner Trustee shall at
no time have any responsibility or liability for or with respect to the legality, validity and
enforceability of any Mortgage Loan, or the perfection and priority of any security interest
created by any Mortgage Loan or the maintenance of any such perfection and priority, or for or with
respect to the sufficiency of the Owner Trust Estate or its ability to generate the payments to be
distributed to the Transferor under this Agreement or to the Noteholders under the Indenture,
including, without limitation: the existence, condition and ownership of any Mortgaged Property;
the existence and enforceability of any insurance thereon; the existence and contents of any
Mortgage Loan on any computer or other record thereof; the validity of the assignment of any
Mortgage Loan to the Trust or of any intervening assignment; the completeness of any Mortgage Loan;
the performance or enforcement of any Mortgage Loan; the compliance by the Depositor or the
Administrator with any warranty or representation made under any Program Document or in any related
document or the accuracy of any such warranty or representation or any action of the Depositor, the
Indenture Trustee, or the Administrator or any subservicer taken in the name of the Owner Trustee.

Section 7.7 Owner Trustee May Own the Ownership Interest and the Notes. The Owner
Trustee in its individual or any other capacity may become the owner or pledgee of the Ownership
Interest or the Notes and may deal with the Depositor, the Indenture Trustee, the Collateral Agent,
the Depositary, the Swap Counterparties and the Servicer in banking transactions with the same
rights as it would have if it were not the Owner Trustee.

Section 7.8 Licenses. The Administrator shall cause the Trust to use its best efforts
to obtain and maintain the effectiveness of any licenses required in connection with this Agreement
and the Program Documents and the transactions contemplated hereby and thereby until such time as
the Trust shall terminate in accordance with the terms hereof.

Section 7.9 Doing Business in Other Jurisdictions. Notwithstanding anything contained
herein to the contrary, the Owner Trustee (in its individual and trust capacities) shall not be
required to take any action in any jurisdiction other than in the State of Delaware if the taking
of such action will, even after the appointment of a co-trustee or separate trustee in accordance
with Section 10.5 hereof, (i) require the consent or approval or authorization or order of
or the giving of notice to, or the registration with or the taking of any other action in respect
of, any state or other governmental authority or agency of any jurisdiction other than the State of
Delaware; (ii) result in any fee, tax or other governmental charge under the laws of the State of
Delaware becoming payable by the Owner Trustee (in its individual capacity); or (iii) subject the
Owner Trustee (in its individual capacity) to personal jurisdiction in any jurisdiction other than
the State of Delaware for causes of action arising from acts unrelated to the consummation of the
transactions by the Owner Trustee (in its individual and trust capacities) contemplated hereby.

ARTICLE VIII

COMPENSATION OF OWNER TRUSTEE

Section 8.1 Owner Trustee’s Fees and Expenses. The Owner Trustee shall receive as
compensation for its services hereunder such fees as have been separately agreed upon before the
date hereof between the Depositor and the Owner Trustee, and the Owner Trustee shall be reimbursed
by the Trust for its other reasonable expenses hereunder, including the reasonable compensation,
expenses and disbursements of such agents, representatives, experts and counsel as the Owner
Trustee may employ in connection with the exercise and performance of its rights and its duties
hereunder or under the Program Documents.

Section 8.2 Indemnification. The Depositor shall be liable as primary obligor for,
and shall indemnify the Owner Trustee (in its individual and trust capacities) and its officers,
directors, successors, assigns, agents and servants (collectively, the “Indemnified
Parties”) from and against, any and all liabilities, obligations, losses, damages, taxes,
claims, actions and suits, and any and all reasonable costs, expenses and disbursements (including
reasonable legal fees and expenses) of any kind and nature whatsoever (collectively,
“Expenses”) which may at any time be imposed on, incurred by, or asserted against the Owner
Trustee (in its individual and trust capacities) or any Indemnified Party in any way relating to or
arising out of this Agreement, the Program Documents, the Owner Trust Estate, the administration of
the Owner Trust Estate or the action or inaction of the Owner Trustee hereunder, except that the
Depositor shall not be liable for or required to indemnify an Indemnified Party from and against
Expenses arising or resulting from any of the matters described in the third sentence of
Section 7.1 hereof. The indemnities contained in this Section 8.2 and the rights
under Section 8.1 shall survive the resignation or termination of the Owner Trustee or the
termination of this Agreement. In the event of any claim, action or proceeding for which indemnity
will be sought pursuant to this Section 8.2, the Owner Trustee’s choice of legal counsel
shall be subject to the approval of the Depositor, which approval shall not be unreasonably
withheld. Nothing herein shall constitute an indemnity by the Depositor for the benefit of the
Owner Trustee in relation to any purchase or holding of any Notes by the Owner Trustee in its
individual capacity.

Section 8.3 Payments to the Owner Trustee. Any amounts paid to the Owner Trustee
pursuant to this Article VIII shall be deemed not to be a part of the Owner Trust Estate
immediately after such payment.

Section 8.4 Non-Recourse Obligations. Notwithstanding anything in this Agreement or
any Program Document, the Owner Trustee agrees in its individual capacity and in its capacity as
Owner Trustee for the Trust that all obligations of the Trust to the Owner Trustee individually or
as Owner Trustee for the Trust shall be recourse to the Trust only and specifically shall not be
recourse to the assets of the Transferor.

ARTICLE IX

TERMINATION OF AGREEMENT

Section 9.1 Termination of Agreement. (a) This Agreement (other than Article
VIII) shall terminate and the Trust shall dissolve and terminate pursuant to the Statutory
Trust Act and be of no further force or effect upon the final payment or other liquidation of the
last Mortgage Loan remaining in the Trust and the termination of all other Program Documents. The
bankruptcy, liquidation, dissolution, death or incapacity of the Transferor shall not (x) operate
to terminate this Agreement or the Trust, nor (y) entitle such Transferor’s legal representatives
or heirs to claim an accounting or to take any action or proceeding in any court for a partition or
winding-up of all or any part of the Trust or Owner Trust Estate nor (z) otherwise affect the
rights, obligations and liabilities of the parties hereto.

(b) [Reserved].

(c) Except as provided in Sections 9.1(a) and (b) above, neither the Depositor
nor the Transferor shall be entitled to revoke or terminate the Trust.

(d) If any Ownership Interest is in certificated form, notice of any termination of the Trust,
specifying the Payment Date upon which the Transferor shall surrender its Ownership Interest to the
Owner Trustee for payment of the final distributions and cancellation, shall be given by the
Registrar to the Transferor and the Rating Agencies mailed within five Business Days of receipt by
the Registrar of notice of such termination pursuant to (a) above, which notice given by the
Registrar shall state (i) the Payment Date upon or with respect to which final payment shall be
made upon presentation and surrender of the Ownership Interest at the office of the Owner Trustee
therein designated, (ii) the amount of any such final payment and (iii) that the Record Date
otherwise applicable to such Payment Date is not applicable, payments being made only upon
submission of a claim for and acknowledgment of final distribution under the Ownership Interest at
the office of the Owner Trustee therein specified. The Registrar shall give such notice to the
Owner Trustee at the time such notice is given to the Transferor. Upon presentation of such
submission of a claim for and acknowledgment of final distribution under the Ownership Interest,
the Owner Trustee shall cause to be distributed to the Transferor all Trust Funds available for
distribution to the Transferor on such Payment Date.

In the event that the Transferor shall not have submitted a claim for and acknowledgment of
final distribution under the Ownership Interest for cancellation within six months after the date
specified in the above mentioned written notice, the Registrar shall give a second written notice
to the Transferor with respect thereto. Within one year after such second notice, the Registrar
may take appropriate steps, or may appoint an agent to take appropriate steps, to contact the
Transferor concerning the final distribution, and the cost thereof shall be paid out of the funds
and other assets that shall remain subject to this Agreement.

(e) Upon the winding up of the Trust and its termination in accordance with the Statutory
Trust Act, the Owner Trustee at the expense of the Administrator and upon the written direction of
the Transferor, shall cause the Certificate of Trust to be canceled by filing a certificate of
cancellation with the Secretary of State in accordance with the Statutory Trust Act.

ARTICLE X

SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

Section 10.1 Eligibility Requirements for Owner Trustee. The Owner Trustee shall at
all times be a corporation or national banking association satisfying the provisions of Section
3807(a) of the Statutory Trust Act; authorized to exercise corporate powers; having a combined
capital and surplus of at least $10,000,000 and subject to supervision or examination by Federal or
state authorities. If such corporation shall publish reports of condition at least annually,
pursuant to law or to the requirements of the aforesaid supervising or examining authority, then
for the purpose of this Section, the combined capital and surplus of such corporation shall be
deemed to be its combined capital and surplus as set forth in its most recent report of condition
so published. In case at any time the Owner Trustee shall cease to be eligible in accordance with
the provisions of this Section 10.1, the Owner Trustee shall resign immediately in the
manner and with the effect specified in Section 10.2.

Section 10.2 Resignation or Removal of Owner Trustee. The Owner Trustee may at any
time resign and be discharged from the trusts hereby created by giving written notice thereof to
the Trust, the Indenture Trustee, the Collateral Agent, the Depositary, the Swap Counterparties,
the Transferor and the Rating Agencies. Upon receiving such notice of resignation, the Transferor
shall promptly appoint a successor Owner Trustee by written instrument, in duplicate, one copy of
which instrument shall be delivered to the resigning Owner Trustee and one copy to the successor
Owner Trustee. If no successor Owner Trustee shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice of resignation, the resigning Owner
Trustee may petition any court of competent jurisdiction for the appointment of a successor Owner
Trustee.

If at any time the Owner Trustee shall cease to be eligible in accordance with the provisions
of Section 10.1 above and shall fail to resign after written request therefor by the
Transferor, or if at any time the Owner Trustee shall be legally unable to act, or shall be
adjudged bankrupt or insolvent, or a receiver of the Owner Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Owner Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or liquidation, then the
Transferor may remove the Owner Trustee. If the Transferor shall remove the Owner Trustee under
the authority of the immediately preceding sentence, the Transferor shall (i) promptly appoint a
successor Owner Trustee by written instrument in duplicate, one copy of which instrument shall be
delivered to the outgoing Owner Trustee so removed and one copy to the successor Owner Trustee and
(ii) arrange for the payment of all fees owed to the outgoing Owner Trustee.

Any resignation or removal of the Owner Trustee and appointment of a successor Owner Trustee
pursuant to any of the provisions of this Section 10.2 shall not become effective until
acceptance of appointment by the successor Owner Trustee pursuant to Section 10.3 and
payment of all fees and expenses owed to the outgoing Owner Trustee. If the Indenture Trustee is
notified by (i) the outgoing Owner Trustee of its resignation and such Owner Trustee fails to make
the notification to the Rating Agencies required by this Section 10.2, or (ii) the
Transferor of the removal of the Owner Trustee, the Indenture Trustee shall provide notice of such
resignation or removal of the Owner Trustee to each of the Rating Agencies.

Section 10.3 Successor Owner Trustee. Any successor Owner Trustee appointed pursuant
to Section 10.2 shall execute, acknowledge and deliver to the Indenture Trustee and to its
predecessor Owner Trustee an instrument accepting such appointment under this Agreement, and
thereupon the resignation or removal of the predecessor Owner Trustee shall become effective and
such successor Owner Trustee, without any further act, deed or conveyance, shall become fully
vested with all the rights, powers, duties, and obligations of its predecessor under this
Agreement, with like effect as if originally named as Owner Trustee. The predecessor Owner Trustee
shall upon payment of its fees and expenses deliver to the successor Owner Trustee all documents
and statements and monies held by it under this Agreement; the predecessor Owner Trustee shall
execute and deliver such instruments and do such other things as may reasonably be required for
fully and certainly vesting and confirming in the successor Owner Trustee all such rights, powers,
duties, and obligations.

No successor Owner Trustee shall accept appointment as provided in this Section 10.3
unless at the time of such acceptance such successor Owner Trustee shall be eligible pursuant to
Section 10.1 above.

Upon acceptance of appointment by a successor Owner Trustee pursuant to this
Section 10.3, the successor Owner Trustee shall mail notice of its succession to the former
Owner Trustee to the Transferor, the Noteholders and the Rating Agencies. If the successor Owner
Trustee fails to mail such notice within 10 days after its acceptance of appointment, the Indenture
Trustee shall cause such notice to be mailed.

Any successor Owner Trustee shall promptly file a certificate of amendment identifying the
name and principal place of business of the Owner Trustee in the State of Delaware.

Section 10.4 Merger or Consolidation of Owner Trustee. Any corporation into which the
Owner Trustee may be merged or converted or with which it may be consolidated or any corporation
resulting from any merger, conversion or consolidation to which the Owner Trustee shall be a party,
or any corporation succeeding to all or substantially all of the corporate trust business of the
Owner Trustee, shall be the successor of the Owner Trustee, as the case may be, hereunder, provided
such corporation shall be eligible pursuant to Section 10.1 above, without the execution or
filing of any instrument or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding; provided further that, the Owner Trustee
shall mail notice of such merger or consolidation to the Depositor, the Administrator and the
Rating Agencies.

Section 10.5 Appointment of Co-Owner Trustee or Separate Owner Trustee.
Notwithstanding any other provisions of this Agreement, at any time, for the purpose of meeting any
legal requirements of any jurisdiction in which any part of the Owner Trust Estate or any Mortgaged
Property may at the time be located, the Owner Trustee shall have the power and shall execute and
deliver all instruments to appoint one or more Persons to act as co-owner trustee, jointly with the
Owner Trustee, or separate owner trustee or separate owner trustees, of all or any part of the
Owner Trust Estate, and to vest in such Person, in such capacity, such title to the Trust, or any
part thereof, and, subject to the other provisions of this Section, such powers, duties,
obligations, rights and trusts as the Owner Trustee may consider necessary or desirable; provided,
however, no such action may be taken unless the Owner Trustee shall have provided the Servicer with
prior written notice of such appointment and the Servicer shall have made all filings in all
relevant jurisdictions under the UCC and other applicable laws as are necessary to continue and
maintain the first priority perfected ownership or security interest of the Collateral Agent in the
property constituting the Owner Trust Estate. No co-owner trustee or separate trustee under this
Section 10.5 shall be required to meet the terms of eligibility as a successor Owner
Trustee pursuant to Section 10.1 above and no notice of the appointment of any co-owner
trustee or separate trustee shall be required pursuant to Section 10.3 above.

Each separate trustee and co-owner trustee shall, to the extent permitted by law, be appointed
and act subject to the following provision and conditions:

(i) all rights, powers, duties and obligations conferred or imposed upon the
Owner Trustee shall be conferred upon and exercised or performed by the
Owner Trustee and such separate owner trustee or co-owner trustee jointly
(it being understood that such separate owner trustee or co-owner trustee is
not authorized to act separately without the Owner Trustee joining in such
act), except to the extent that under any law of any jurisdiction in which
any particular act or acts are to be performed, the Owner Trustee shall be
incompetent or unqualified to perform such act or acts, in which event such
rights, powers, duties, and obligations (including the holding of title to
the Trust or any portion thereof in any such jurisdiction) shall be
exercised and performed singly by such separate trustee or co-owner trustee
but solely at the direction of the Owner Trustee;

(ii) no owner trustee under this Agreement shall be personally liable by
reason of any act or omission of any other owner trustee under this
Agreement; and

(iii) the Owner Trustee may at any time accept the resignation of or remove
any separate trustee or co-owner trustee.

Any notice, request or other writing given to the Owner Trustee shall be deemed to have been
given to the separate trustees and co-owner trustees, as if given to each of them. Every
instrument appointing any separate owner trustee or co-owner trustee, other than this Agreement,
shall refer to this Agreement and to the conditions of this Article X. Each separate
trustee and co-owner trustee, upon its acceptance of appointment, shall be vested with the estates
specified in its instrument of appointment, either jointly with the Owner Trustee or separately, as
may be provided therein, subject to all the provisions of this Agreement, specifically including
every provision of this Agreement relating to the conduct of, affecting the liability of, or
affording protection to, the Owner Trustee. Each such instrument shall be filed with the Owner
Trustee.

Any separate trustee or co-owner trustee may at any time appoint the Owner Trustee as its
agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do
any lawful act under or in respect of this Agreement on its behalf and in its name. If any owner
trustee or co-owner trustee shall die, become incapable of acting, resign or be removed, all of its
estates, properties, rights, remedies and trusts shall vest in and be exercised by the Owner
Trustee, to the extent permitted by law, without the appointment of a new or successor trustee.

ARTICLE XI

MISCELLANEOUS

Section 11.1 Supplements and Amendments. This Agreement may only be amended with the
written consent of the parties hereto and each of the Swap Counterparties (such consent not to be
unreasonably withheld); provided, however, Rating Agency Confirmation with respect
to such action is received. The Owner Trustee shall not be obligated to sign any such agreements,
instruments, consents and other documents if the rights, duties, liabilities or immunities of the
Owner Trustee shall be materially adversely affected thereby. The costs and expenses associated
with any such amendment shall be borne by the party requesting the amendment.

Promptly after the execution of any such amendment, the Owner Trustee shall furnish written
notification of the substance of such amendment to the Indenture Trustee, the Collateral Agent, the
Depositary, the Swap Counterparties and each of the Rating Agencies.

The manner of obtaining such consents (and any other consents of the Transferor provided for
in this Agreement or in any other Program Document) and of evidencing the authorization of the
execution thereof by the Transferor, the Administrator and the Swap Counterparties shall be subject
to such reasonable requirements as the Owner Trustee may prescribe.

Promptly after the execution of any amendment to the Certificate of Trust, the Owner Trustee
shall cause the filing of such amendment with the Secretary of State.

Prior to the execution of any amendment to this Agreement or the Certificate of Trust, the
Owner Trustee shall be entitled to receive and rely upon an Opinion of Counsel stating that the
execution of such amendment is authorized or permitted by this Agreement and that all conditions
precedent to such execution and delivery have been satisfied.

Section 11.2 No Legal Title to Owner Trust Estate in Transferor. The Transferor shall
not have legal title to any part of the Owner Trust Estate. The Transferor shall be entitled to
receive distributions with respect to its undivided ownership interest therein only in accordance
with Articles V and IX herein. No transfer, by operation of law or otherwise, of
any right, title, or interest of the Transferor to and in its Ownership Interest shall operate to
terminate this Agreement or the trusts hereunder or entitle any transferee to an accounting or to
the transfer to it of legal title to any part of the Owner Trust Estate.

Section 11.3 Limitations on Rights of Others. The provisions of this Agreement are
solely for the benefit of the Owner Trustee, the Administrator, the Trust, the Transferor and, to
the extent expressly provided herein, the Indenture Trustee, the Collateral Agent, the Depositary,
each Swap Counterparty and the Noteholders, and nothing in this Agreement, whether express or
implied, shall be construed to give to any other Person any legal or equitable right, remedy or
claim in the Owner Trust Estate or under or in respect of this Agreement or any covenants,
conditions or provisions contained herein.

Section 11.4 Notices. Except where telephonic instructions or notices are authorized
herein to be given, all notices, demands, instructions and other communications required or
permitted to be given to or made upon any party hereto shall be in writing (including by electronic
or facsimile transmission) and shall be sent by prepaid first class mail, personally delivered or
sent by guaranteed overnight delivery or by electronic or facsimile transmission (to be followed by
prepaid first class mail, personal or guaranteed overnight delivery) and shall be deemed to be
given for purposes of this Agreement on the date that such writing is received by the intended
recipient thereof in accordance with the provisions of this Section 11.4. Unless otherwise
specified in a notice sent or delivered in accordance with the foregoing provisions of this
Section 11.4, notices, demands, instructions and other communications in writing shall be
given to or made upon the parties at their respective addresses (or to their respective facsimile
numbers) indicated below, and, in the case of telephonic instructions or notices, by calling the
telephone number or numbers indicated for such party below: (i) if to the Owner Trustee, its
Corporate Trust Office, (ii) if to the Administrator, New Century Mortgage Corporation, 18400 Von
Karman, Suite 1000, Irvine, California 92616, Attention: Kevin Cloyd, Telephone (949) 862-7941,
Facsimile (949) 440-7033; (iii) if to the Depositor, Home123 Corporation, 13100 Northwest Freeway,
Suite 200, Houston, TX, 77040, Attention: Randy Stewart, Telephone (281) 205-2228; (iv) if to the
Indenture Trustee, its Corporate Trust Office, (v) if to the Collateral Agent, its Corporate Trust
Office, (vi) if to the Depositary, 60 Wall Street, MS NYC60-2612, New York, NY 10005, Attention:
Commercial Paper Group, and (vii) if to the Swap Counterparties, to their respective addresses as
set forth in the Interest Rate Swaps; or, as to each such party, at such other address as shall be
designated by such party in a written notice to each other party.

Section 11.5 Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

Section 11.6 Separate Counterparts. This Agreement may be executed by the parties
hereto in separate counterparts, each of which when so executed and delivered shall be an original,
but all such counterparts shall together constitute but one and the same instrument.

Section 11.7 Successors and Assigns. All covenants and agreements contained herein
shall be binding upon, and inure to the benefit of the Owner Trustee and its successors and the
Transferor and its successors and permitted assigns, all as herein provided. Any request, notice,
direction, consent, waiver or other instrument or action by the Transferor shall bind the
successors and assigns of the Transferor.

Section 11.8 No Petition. The Owner Trustee, by entering into this Agreement, the
Transferor, by accepting the Ownership Interest, and the Indenture Trustee, the Collateral Agent,
the Depositary, each Swap Counterparty and each Noteholder by accepting the benefits of this
Agreement, hereby covenant and agree that they will not, prior to the date which is one year and
one day (or if longer, the applicable preference period then in effect) after the payment in full
of the Notes or rated obligations of the Trust, institute against the Transferor or the Trust, or
join in any institution against the Transferor or the Trust, of any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under any United States
Federal or state bankruptcy or law in connection with any obligations relating to the Ownership
Interest and the Notes, this Agreement or any of the Program Documents. This Section 11.8
shall survive termination of this Agreement.

Section 11.9 [Reserved].

Section 11.10 No Recourse. The Transferor by accepting the Ownership Interest
acknowledges that the Transferor’s Ownership Interest represents a beneficial interest in the Trust
only and does not represent an interest in or an obligation of the Administrator, the Owner Trustee
or any Affiliate thereof and no recourse may be had against such parties or their assets, except as
may be expressly set forth or contemplated in this Agreement, the Ownership Interest or the Program
Documents.

Section 11.11 Headings. The headings of the various Articles and Sections herein are
for convenience of reference only and shall not define or limit any of the terms or provisions
hereof.

Section 11.12 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS.

Section 11.13 Inconsistencies with Mortgage Loan Purchase and Servicing Agreement. In
the event certain provisions of this Agreement conflict with the provisions of the Mortgage Loan
Purchase and Servicing Agreement, the parties hereto agree that the provisions of the Mortgage Loan
Purchase and Servicing Agreement shall be controlling (other than the provisions governing the
internal affairs of the Trust, which shall be governed by Delaware law).

Section 11.14 Third Party Beneficiary. The parties hereto acknowledge that each of
the Indenture Trustee and the Swap Counterparties is an express third party beneficiary hereof
entitled to enforce the provisions hereof as if it was actually a party hereto. Nothing in this
Section 11.14 however shall be construed to mitigate in any way, the fiduciary
responsibilities of the Owner Trustee to the holder of the Ownership Interest.

Section 11.15 Administrator. (a) The Administrator is authorized to prepare, or to
cause to be prepared, execute and deliver on behalf of the Trust as agent for the Trust all such
documents, reports, filings, instruments, certificates and opinions as it shall be the duty of the
Trust, or the Owner Trustee to prepare, file or deliver pursuant to the Program Documents. Upon
written request, the Owner Trustee shall execute and deliver to the Administrator a limited power
of attorney appointing the Administrator the Trust’s agent and attorney-in-fact to prepare, or to
cause to be prepared, execute and deliver all such documents, reports, filings, instruments,
certificates and opinions.

(b) Except as otherwise provided in this Agreement, the management of the Trust is fully
vested in the Administrator and the Administrator shall have full power and authority to manage the
business and affairs of the Trust in accordance with this Agreement and the Program Documents and
any other document or instrument related thereto. The Administrator agrees to carry out and
perform, as agent on behalf of the Trust, the daily business activities of the Trust. In so doing,
the Administrator will at all times, in dealing with third parties or the public at large, make it
known that it is acting on behalf of the Trust and the duties of the Trust and the Owner Trustee
under the Program Documents and not for its own account. All services to be furnished by the
Administrator may be furnished by an officer or employee of the Administrator or any other Person
or agent designated or retained by it. It shall be the duty of the Administrator to discharge (or
cause to be discharged) all of its responsibilities pursuant to the terms of this Agreement, the
Program Documents and any other document or instrument related thereto and to administer the Trust
in the interest of the Transferor, subject to and in accordance with the provisions of this
Agreement, the Program Documents and any other document or instrument related thereto.

(c) In exercising its rights and performing its duties under this Agreement, the Administrator
shall have a fiduciary duty of loyalty and care similar to that of a director of a business
corporation organized under the General Corporation Law of the State of Delaware. No resignation
or removal of the Administrator, and no appointment of a successor Administrator, shall be
effective until the successor Administrator shall have accepted his or her appointment by a written
instrument, which may be a counterpart signature page to this Agreement.

(d) The Administrator or its designated agent shall not take any action (a) that is
inconsistent with the purposes, powers or limitations of the Trust as set forth in Sections
2.3(b) or 2.3(c), or (b) that, to the actual knowledge of a responsible officer of the
Administrator or its designated agent, would (i) affect the treatment of the Notes as indebtedness
for federal income or applicable state or local income or franchise tax purposes, (ii) be deemed to
cause a taxable exchange of Notes for federal income or applicable state or local income or
franchise tax purposes, (iii) cause the Trust or any portion thereof to be treated as a taxable
mortgage pool or an association (or publicly traded partnership) taxable as a corporation for
federal income tax purposes or cause the Trust to incur income tax liability, or (iv) violate any
provision of the Statutory Trust Act.

(e) The Transferor may remove the Administrator for failure to comply with the
responsibilities of the Administrator set forth in this Agreement, the Program Documents and any
other document or instrument related thereto if such failure to discharge (or cause to be
discharged) its responsibilities pursuant to the terms of this Agreement, the Program Documents and
any other document or instrument related thereto has a material adverse effect on the financial or
operating condition of the Trust; provided, however, that the Transferor may not
remove the Administrator without obtaining a successor Administrator with respect to which Rating
Agency Confirmation has been obtained.

[Signature Pages Follow]

1

IN WITNESS WHEREOF, the parties hereto have caused this Trust Agreement to be duly
executed by their respective officers hereunto duly authorized, as of the day and year first above
written.

CHRISTIANA BANK & TRUST COMPANY, as Owner Trustee

By: /s/ James M. Young

Name: James M. Young

Title: Vice President

2

HOME123 CORPORATION, as Depositor

By: /s/ Warren Licata

Name: Warren Licata

Title: Senior Vice President

3

NEW CENTURY MORTGAGE CORPORATION, as Administrator

By: /s/ Warren Licata

Name: Warren Licata

Title: Senior Vice Presiden

4EX-10.7

Exhibit 10.7

CONFIRMATION

	 	 	 
	Date:

To:

	 	December 19, 2006

St. Andrew Funding Trust

	 	 	 	 	 
	18400 Von Karman, Suite 1000

	Irvine, CA 92616
	 	 	 	 
	Attention: Mr. Kevin Cloyd

	Telephone: 949-862-7941
	 	 	 	 
	Facsimile No: 949-224-5750

	From:
	 	ABN AMRO Bank N.V.,

London Branch

199 Bishopsgate

London EC2M 3XW

United Kingdom

Attention: Fixed Income Derivatives Documentation

Facsimile: 44 20 7857 9428

Transaction Reference No.

Ladies and Gentlemen:

The purpose of this letter agreement is to set forth the terms and conditions of the Swap
Transaction entered into between ABN AMRO Bank N.V. (“Party A”) and St. Andrew Funding Trust
(“Party B”) on the Trade Date referred to below (the “Transaction”). It constitutes a
“Confirmation” as referred to in the Master Agreement specified below.

The definitions and provisions contained in the 2000 ISDA Definitions (the “Definitions”), as
published by the International Swaps and Derivatives Association, Inc. (“ISDA”), are incorporated
into this Confirmation. In the event of any inconsistency between the Definitions and the
provisions of this Confirmation, this Confirmation will govern.

1. This Confirmation supplements, forms part of, and is subject to, the ISDA Master Agreement,
dated as of December 19, 2006, as further amended, restated and supplemented from time to time (the
“Agreement”), between you and us. All provisions contained in the Agreement shall govern this
Confirmation except as expressly modified below. Unless otherwise defined in this Confirmation or
in the Definitions, capitalized terms used herein have the meanings ascribed to such terms in the
Definitions List attached as Schedule I to the Security Agreement.

2. The terms of the Transaction to which this Confirmation relates are as follows:

	 	 	 
	Trade Date:

Effective Date:

	 	December 19, 2006

December 19, 2006.

	 	 	 	Termination Date: The earlier of (i) the third anniversary of the Effective Date, subject to
extension upon agreement of Party B and Party A (the “Scheduled Termination Date”) and
(ii) the Program Termination Date in accordance with the Agreement.

	 	 	 	Business Day: Any day other than (i) Saturday and Sunday or (ii) a day on which banking
institutions or foreign exchange markets in New York City are authorized or required by
law, regulation or executive order to be closed for business.

	 	 	 	Business Day Convention: Following.

	 	 	 	Notional Amount: With respect to any Payment Date, the notional amount of this Transaction
will equal the product of (i) the Sharing Percentage multiplied by (ii) the sum of (x)
the average aggregate of the aggregate Outstanding Purchase Price of all Mortgage Loans
owned by Party B on each day during the related Calculation Period and (y) the average
aggregate amount of any cash and Eligible Investments held by Party B on each day
during the related Calculation Period.

Maximum Notional

	 	 	 	Amount: In no event will the Notional Amount of this Transaction exceed the product of (x)
the Sharing Percentage, and (y) the Facility Size, provided that in no event shall such
amount be greater than USD 1,060,000,000.

	 	 	 	Program Notional

	 	 	 	Amount: This Transaction shall represent USD 1,030,000,000 of the Program Size, or such
other amount as may be provided in a written agreement between the parties hereto,
provided however, that such agreement may not cause the aggregate of the “Program
Notional Amount” as defined in each Interest Rate Swap to be less than the Program Size
on the date of such agreement.

	 	 	 	Sharing Percentage: The percentage expressed as a fraction, the numerator of which is the
Program Notional Amount and the denominator of which is the Program Size.

	 	 	 	Calculation Period: With respect to each Payment Date, the calendar month immediately
preceding such Payment Date; provided, however, solely for purposes of calculating
Issuer Funding Cost and accrued interest received on sales of Mortgage Loans with
respect to each Payment Date, “Calculation Period” shall mean the period from but
excluding the prior Payment Date to and including such Payment Date, except that in
each case (a) the initial Calculation Period will commence on, and include, the
Effective Date and (b) the final Calculation Period will end on, and include, the
Termination Date.

	 	 	 	Payment Dates: The 25th day of each month (or, if any such day is not a Business Day, the
next following Business Day).

	 	 	 	Interim Payment Dates: Each day on which a deposit is made into the Collateral Account in
respect of: (1) proceeds from the sale (other than a sale of a Mortgage Loan, or a
Mortgage Loan subject to sale, to a Seller or the Servicer pursuant to Section 3.3,
3.5(c), 6.2 or 7.1 of the Mortgage Loan Purchase and Servicing Agreement) or
securitization of a Mortgage Loan; or (2) a prepayment in full of a Mortgage Loan (each
such date, a “Loan Termination Date”; and each Mortgage Loan which is sold or
securitized (other than a sale of a Mortgage Loan, or a Mortgage Loan subject to sale,
to a Seller or the Servicer pursuant to Section 3.3, 3.5(c), 6.2 or 7.1 of the Mortgage
Loan Purchase and Servicing Agreement) or prepaid in full is referred to as a
“Terminated Loan”); provided, however, if the Servicer is not notified by 1:00 p.m. New
York City time at least one Business Day in advance that a deposit in respect of (1) or
(2) above is going to be made, such deposit shall be deemed to occur on the Business
Day immediately following the day on which such deposit was made, and the Mortgage Loan
in respect of which such deposit was made shall be deemed to be a Terminated Loan on
the Business Day immediately following the day on which such deposit was made.

	 	 	 	Calculation Agent: The Servicer. Party B shall ensure that the Calculation Agent will
perform its obligations in good faith and shall, (i) provide a report to Party A in
accordance with Section 4.24 of the Mortgage Loan Purchase and Servicing Agreement,
(ii) provide Weekly Loan Tapes to Party A in accordance with Section 4.29 of the
Mortgage Loan Purchase and Servicing Agreement, and (iii) upon the reasonable request
of Party A, provide a certified statement to Party A showing in reasonable detail such
calculations, specifying the source of the calculations and providing copies of all
material documents and information relied upon by the Calculation Agent in performing
its obligations hereunder. Party A acting in good faith may dispute any calculation of
the Calculation Agent and the parties shall use reasonable efforts to resolve any
disputes concerning such calculations. In addition, following the occurrence and
during the continuation of a Swap Failure, the Calculation Agent shall provide Party A
with reasonable advance notice in writing of its calculations of amounts payable under
this Agreement, and Party A shall have the right to confirm such calculations in
advance of any such payment; provided, however, that no such confirmation right shall
limit or reduce the obligations of Party A under this Agreement or result in a delay of
payments of amounts required to be paid hereunder.

	 	3.	 	Party A Floating

Payments:

Party A Floating

	 	 	 	Amount: No later than 11:00 a.m. (New York City time) on each Payment Date, Party A will pay
Party B an amount equal to the excess of (a) the product of (i) the Sharing Percentage
and (ii) the Issuer Funding Cost for such Payment Date, provided that with respect to
any Calculation Period in which Delinquent Loans (for which no Servicer Monthly
Advances of interest have been made during the related Calculation Period) or Defaulted
Loans exist, the Issuer Funding Cost for such Payment Date shall be multiplied by the
Credit Reduction Factor for such Payment Date, over (b) any amounts previously paid by
Party A in respect of payments for accrued interest on Extended Notes as a Party A
Accrued Interest Payment made since the preceding Payment Date. For the avoidance of
doubt, the amount of each Party A Floating Amount actually payable (if any) with
respect to any Payment Date shall be calculated after giving payment netting pursuant
to Part 4(j) of the Schedule.

Party A Interim

	 	 	 	Floating Amount: No later than 11:00 a.m. (New York City time) on each Interim Payment Date,
Party A will pay Party B an amount equal to the product of (i) the Sharing Percentage
and (ii) the sum of all Partial Termination Payments with a positive value for all
Partial Terminations effected on such date. Notwithstanding anything herein to the
contrary, on any Business Day (other than a Payment Date, Interim Payment Date or
Accrued Interest Payment Date) on which a net payment in respect of a Party A Interim
Floating Amount is due and payable from Party A in an amount less than $100,000,
Party A shall postpone such net payment until the earlier to occur of (x) the
immediately succeeding Payment Date, Interim Payment Date, or Accrued Interest Payment
Date and (y) the immediately succeeding Business Day on which aggregate net payments in
respect of Party A Interim Floating Amounts are due and payable from Party A in an
amount equal to or greater than $100,000, provided, further that after the occurrence
of a Termination Event under the Mortgage Loan Purchase and Servicing Agreement, the
Party A Interim Floating Amount shall be deemed to be zero on the day the Collateral
Agent issues a notice to the Swap Counterparties that confirms that as of the
immediately preceding date, (i) there are sufficient funds in the Collateral Account,
after giving effect to all payments required on such date pursuant to Sections
2.01(b), 6.03(a) and 6.03(b) of the Security Agreement, to pay all
principal payments (including, in the case of each Class of Extended Notes issued upon
conversion of the related Class of Secured Liquidity Notes, the aggregate face amount
of such Class of Secured Liquidity Notes, or in the case of the Secured Liquidity Notes
issued on an interest bearing basis, the Principal Component and accrued interest of
such Class of Secured Liquidity Notes, on all Notes outstanding up to and including
their Expected Maturities and their Final Maturities or Final Payment Dates, as
applicable, or (ii) all outstanding Notes are paid in full.

Party A Accrued

	 	 	 	Interest Payment: Party A will pay an amount equal to the product of (i) the Sharing
Percentage and (ii) the accrued and unpaid interest on Extended Notes paid in full on
the related Accrued Interest Payment Date.

Party A Accrued

	 	 	 	Interest Payment Date: Any Business Day (other than a Payment Date) on which any Extended
Notes are paid in full (an “Accrued Interest Payment Date”).

	 	4.	 	Party B

Payments:

Party B First

	 	 	 	Floating Amount: No later than 11:00 a.m. (New York City time) on each Payment Date, Party B
will pay Party A an amount equal to the sum of (X) the product of (i) the Sharing
Percentage and (ii) (A) minus (B) where (A) equals the sum of (i) the aggregate amount
of the interest and any penalties (including prepayment penalties and prepayment
premiums to the extent not previously paid on an Interim Payment Date) on the Mortgage
Loans received by Party B with respect to the related Calculation Period and deposited
into the Collateral Account on or prior to such Payment Date, (ii) reinvestment income
received during the related Calculation Period on amounts on deposit in the Collateral
Account and (iii) reinvestment income received during the related Calculation Period on
amounts on deposit in the Reserve Fund and paid into the Collateral Account pursuant to
Section 6.05(b) of the Security Agreement, and where (B) equals the sum of (i) the
Allocated Expenses payable on such Payment Date (including the Servicing Fee paid to
the Servicer for the related Calculation Period), (ii) the Acquisition Date Accrued
Interest for the related Calculation Period and (iii) the Designated Excess Spread
Amount for such Payment Date, and (Y) the Swap Fee.

Party B Interim

	 	 	 	Floating Amount: No later than 11:00 a.m. (New York City time) on each Interim Payment Date,
Party B will pay Party A an amount equal to the product of (i) the Sharing Percentage
and (ii) the absolute value of all negative Partial Termination Payments for all
Partial Terminations effected on such date, provided, however, that the negative
Partial Termination Payment for any Terminated Loan shall not exceed the excess, if
any, of (x) the Adjusted Fair Market Value of such Terminated Loan on the date it
became a Terminated Loan, over (y) the Outstanding Purchase Price of such Terminated
Loan.

Party B Second

	 	 	 	Floating Amount: To the extent that Party B has available funds, an amount equal to the
product of (x) the Sharing Percentage, and (y) any amounts due and payable to the Swap
Counterparties pursuant to Section 6.03(b)(xii) of the Security Agreement in
accordance with the priorities of payment set forth therein.

	 	 	 
	Party B Second Floating

Amount Payment Dates:

	 	

Any Payment Date.

Party B Third

	 	 	 	Floating Amount: To the extent that Party B has available funds, an amount equal to the
product of (x) the Sharing Percentage, and (y) any amounts due and payable to the Swap
Counterparties pursuant to clause Tenth of Section 2.01(b) of the
Security Agreement in accordance with the priorities of payment set forth therein.

	 	 	 
	Party B Third Floating

Amount Payment Dates:

	 	

Any Business Day.

	 	 	 	Party B Fixed Amount: No later than 11:00 a.m. (New York City time) on the Business
Day following the early termination of this Transaction (unless Party A is the
Defaulting Party or Affected Party thereunder or an Accounting Treatment Change has
occurred), Party B shall pay Party A an amount equal to the product of (a) the Sharing
Percentage, times (b) 0.0010, times (c) 0.40, times (d) the Program Size, times (e) the
actual number of days from and including the date of such early termination to, but
excluding, the Scheduled Termination Date, divided by 360.

	 	5.	 	Accounting Treatment

	 	 	 	Termination: Following the occurrence of any Accounting Treatment Change and notice
thereof by Party A to Party B, Party B may designate an Early Termination Date
with regard to this Transaction without a replacement swap counterparty upon
satisfaction of the following conditions: (a) the sum of (I) any reduction in
the Program Size and (II) any increase in the Program Notional Amount of any
other Interest Rate Swap (as defined therein) shall be equal to or greater than
the Program Notional Amount and (b) before designation of such Early
Termination Date, the Program Size shall be reduced by an amount equal to or
greater than such Program Notional Amount of this Transaction. Notwithstanding
Section 6(e) or any other provision of this Agreement and this Confirmation,
upon the designation of an Early Termination Date pursuant to this paragraph,
no termination payments or any other amounts shall be payable under Section
6(e) or any other provision of this Agreement or this Confirmation by either
party, except (A) each party shall make all payments pursuant to this
Confirmation through and including such Early Termination Date; and (B) without
duplication of the amounts payable pursuant to the foregoing clause (A), Party
A shall pay to Party B the unpaid Amounts owing to Party B by Party A as of the
Early Termination Date and Party B shall pay to Party A the Unpaid Amounts
owing to Party A by Party B as of the Early Termination Date pursuant to this
Confirmation, and neither party shall have any further liability in respect of
the termination of this Transaction.

As used herein, the term “Accounting Treatment
Change” shall mean (x) the determination by auditors for
Party A that all or any portion of the Mortgage Loans and
other assets of Party B should be included on the
consolidated balance sheet of Party A, or (y) any good faith
determination by Party A that its costs incurred in
connection with this Agreement have increased due to change
in applicable accounting, income tax or bank regulatory rules
or regulations.

	 	6.	 	Early Termination: (i) Notwithstanding anything in the Agreement and/or this
Confirmation to the contrary, nothing herein shall affect the rights of Party A if
Party B is the Defaulting Party or Affected Party. In the event that an Event of
Default or Termination Event has occurred and is continuing and Party A is the sole
Defaulting Party or sole Affected Party, Party A and Party B agree as follows:

(1) Party A shall give immediate written notice of such Event
of Default or Termination Event to Party B, the Servicer,
Moody’s and S&P.

(2) Commencing with the date of such Event of Default or
Termination Event, Party A shall use its reasonable efforts
to cooperate with Party B and the Servicer to transfer Party
A’s rights and duties hereunder to (or otherwise procure a
replacement transaction with terms substantially similar to
this Transaction with) a successor to Party A having a
short-term unsecured and unguaranteed debt rating of “A l+”
by S&P and “P 1” by Moody’s and, if rated by Fitch, “F1+” by
Fitch and a long-term debt rating of at least “AA ” by S&P
and “Aa3” by Moody’s and, if rated by Fitch, “AA-“ by Fitch
(a “Successor Counterparty”).

(3) If no Successor Counterparty is appointed and the
requirements of Section 6(i)(2) of this Confirmation are
otherwise not satisfied within a period following the date of
such Event of Default or Termination Event designated by
Party B in its sole discretion, Party B may, in its sole
discretion, designate an Early Termination Date.

(4) Other than with respect to a transfer resulting from an
Additional Termination Event pursuant to Part 1(g)(i) of the
Schedule, Party A shall bear or otherwise reimburse Party B
and each Servicer for all reasonable costs (excluding any
assignment fee or termination fee) associated with the
actions required by Section 6(i)(2) of this Confirmation.
For the avoidance of doubt, to the extent such costs have
been paid by Party A to Party B pursuant to Section 11 of the
Agreement, such costs will not be included in the calculation
of amounts payable pursuant to this provision of the
Confirmation.

(ii) Upon any transfer of Party A’s rights and obligations
hereunder as a result of the Event of Default or Termination
Event specified in Section 6(i) of this Confirmation to a
Successor Counterparty or the replacement of this Transaction
with a substantially similar transaction with a Successor
Counterparty:

(1) The Calculation Agent shall calculate an amount that
would be payable to (or by) Party A assuming (i) both this
Transaction and any hedge transaction were Terminated
Transactions, (ii) that Section 6(e)(i)(3) of the 1992 ISDA
Multicurrency Cross-Border Master Agreement were applicable,
provided however, following the Market Quotation method, the
Settlement Amount shall be the lowest quotation submitted by
a Reference Market-maker which is also acceptable to the
Successor Counterparty, (iii) that Party A was the Defaulting
Party or the Affected Party (as the case may be) and (iv)
that the Early Termination Date was the date the Successor
Counterparty entered into or assumed such replacement
transaction.

(2) To the extent that the Calculation Agent determines in
Section 6(ii)(1) of this Confirmation that a payment to Party
A would be required, Party B and Party A agree to cause the
Successor Counterparty to pay such amount to Party A and such
amount shall constitute satisfaction in full of the
obligations of Party B to Party A in respect of the
assignment of this Transaction to the Successor Counterparty.

(3) To the extent that the Calculation Agent determines in
Section 6(ii)(1) of this Confirmation that Party A would be
required to make a payment, Party A and Party B agree that
Party A will pay such amount to the Successor Counterparty
and such amount shall constitute satisfaction in full of the
obligations of Party A to Party B in respect of the
assignment of the Transaction to the Successor Counterparty.

	 	7.	 	Definitions: In this Confirmation,

“Adjusted Fair Market Value” means, with respect to
any Mortgage Loan and any date of determination, the Market
Value of such Mortgage Loan on the related Closing Date for
Party B’s purchase of such Mortgage Loan, reduced by any
principal payments received by Party B with respect to such
Mortgage Loan on or after the related Closing Date and prior
to such date of determination.

“Credit-Adjusted Price” (i) with respect to a
Terminated Loan which is a Delinquent Loan or a Defaulted
Loan shall mean the hypothetical sales proceeds in cash, as
determined in good faith by the Calculation Agent, that would
be received in connection with the sale of a Reference
Mortgage Loan to a Qualified Purchaser on the date such
Delinquent Loan or Defaulted Loan, as the case may be,
becomes a Terminated Loan; provided that (ii) following a
Swap Failure or a Servicer Event of Default, if (x) the
aggregate Outstanding Purchase Price of the Delinquent Loans
and Defaulted Loans shall be greater than 10% of the
aggregate Outstanding Purchase Price of all Mortgage Loans
owned by Party B, and (y) Party A undertakes its own good
faith determination of the amount referred in (i) above (a
“quotation”) and such quotation is more than 1.00% lower than
the good faith determination of the Calculation Agent, and
the parties cannot resolve such difference on such Business
Day by negotiating promptly and in good faith, the
Credit—Adjusted Price shall be the Polled Price. In
connection with a determination of the “Polled Price” the
Calculation Agent shall also seek a quotation from a
Qualified Bidder (which shall not be the Rated Bidder).

“Credit Reduction Factor” shall mean as of any
Payment Date, a fraction equal to (i) the average aggregate
Outstanding Purchase Price of the Mortgage Loans owned by
Party B on each day during the related Calculation Period
exclusive of Defaulted Loans and Delinquent Loans (other than
Delinquent Loans for which the Servicer has made Servicer
Monthly Advances) (prior to giving effect to distributions
and allocations on such date) divided by (ii) the sum of the
average aggregate Outstanding Purchase Price of the Mortgage
Loans owned by Party B on each day during the related
Calculation Period.

“Designated Excess Spread Amount” means an amount
equal to the product of (x) 0.25%, (y) the sum of the Average
Outstanding Purchase Price of the Mortgage Loans with respect
to the related Calculation Period and the average of the cash
and Eligible Investments held by Party B on each day during
the related Calculation Period, times (z) the actual number
of days in the related Calculation Period, divided by 365.

“Issuer Funding Cost” shall mean, with respect to any
Calculation Period, an amount equal to the sum of (i) with
respect to a Calculation Period in which occurred the
Expected Maturity of interest-bearing Secured Liquidity
Notes, the amount of accrued interest on such Notes from and
including the respective issuance dates to but excluding the
respective Expected Maturity (for the avoidance of doubt
including without limitation any such accrued interest paid
with the proceeds of the Capitalized Interest Component of
additional classes of Secured Liquidity Notes), (ii) with
respect to a Calculation Period in which occurred the
Expected Maturity of non-interest bearing Secured Liquidity
Notes, the amount of accrued discount on such Notes from and
including the respective issuance dates to but excluding the
respective Expected Maturity (for the avoidance of doubt
including without limitation any such accrued discount paid
with the proceeds of the Capitalized Interest Component of
additional classes of Secured Liquidity Notes), (iii) with
respect to any Calculation Period immediately prior to a
Distribution Date for Extended Notes, the amount of accrued
and unpaid interest payable in respect of the Extended Notes
on such Distribution Date and (iv) with respect to any
Calculation Period immediately preceding a Payment Date for
the Subordinated Notes, the amount of accrued and unpaid
interest payable in respect of the Subordinated Notes on such
following Payment Date.

“Loan Termination Date” has the meaning set forth in
the section entitled “Interim Payment Dates.”

“Partial Termination” means the occurrence of a Loan
Termination Date.

“Partial Termination Payment” means an amount, which
may be positive or negative, calculated with respect to each
Terminated Loan (I) which is sold by, or on behalf of,
Party B or securitized equal to the difference between (i)
the Outstanding Purchase Price of such Terminated Loan and
(ii) (A) if the Partial Termination occurs with respect to a
non-Delinquent Loan or non-Defaulted Loan, the sales proceeds
(net of any accrued interest if determinable on such date) of
the Mortgage Loan to which the Partial Termination relates
(which sales proceeds in the case of a bundled whole loan
sale or a securitization shall equal the sales proceeds for
the related bundle of loans or securitization) and (B) if the
Partial Termination occurs with respect to a Delinquent Loan
or Defaulted Loan, the Credit-Adjusted Price or (II) which
results from a prepayment in full of such Mortgage Loan equal
to (i) the Outstanding Purchase Price of such Mortgage Loan
less (ii) the principal payments (including prepayment
penalties and prepayment premiums) that were deposited in the
Collateral Account on or prior to such date. To the extent
that the Partial Termination Payment is a positive number,
Party A shall pay such amount to Party B and to the extent
that it is a negative number, Party B shall pay to Party A an
amount equal to the absolute value thereof.

“Polled Price” shall mean, for purposes of each
Interest Rate Swap, (x) if three or more Swap Counterparties
and the Qualified Bidder prepare quotations under their
respective Interest Rate Swaps, or in response to the request
of the Calculation Agent (as the case may be), the quotation
remaining (if exactly three quotations are prepared) or the
arithmetic mean of the quotations (if more than three
quotations are prepared) without regard to the quotations
having the highest and lowest values, (y) if two Swap
Counterparties and the Qualified Bidder, or one Swap
Counterparty and the Qualified Bidder, prepare quotations
under their respective Interest Rate Swaps, the arithmetic
mean of the quotations, and (z) if one Swap Counterparty or
the Qualified Bidder prepares a quotation under its Interest
Rate Swap, or in response to the request of the Calculation
Agent, the arithmetic mean of such quotation and the
determination by the Calculation Agent under (i) of the
definition of “Credit-Adjusted Price.”

“Program Termination Date” shall mean the date all
outstanding Secured Liquidity Notes, Extended Notes and
Subordinated Notes are paid in full or redeemed in accordance
with the Security Agreement and the Indenture.

“Qualified Purchaser” shall mean a regular purchaser
in the market for mortgage loans similar to the Mortgage
Loans.

“Reference Mortgage Loan” shall mean a hypothetical
mortgage loan used by the Calculation Agent for the purposes
of determining the Credit-Adjusted Price with respect to a
Terminated Loan that is a Delinquent Loan or a Defaulted Loan
which is otherwise substantially similar to such Delinquent
Loan or Defaulted Loan in all respects, including interest
rate, principal balance, cash flows, lien position and all
other payment characteristics, except that such mortgage loan
is not a Delinquent Loan or Defaulted Loan, as the case may
be.

“Security Agreement” means the Security Agreement,
dated as of December 19, 2006, by and between Deutsche Bank
Trust Company Americas, as Collateral Agent, and Party B, as
such agreement may be amended, modified or supplemented from
time to time.

“Swap Failure” means the occurrence of an event
described in Sections 11.2(d) or 11.2(e)(ii)
of the Mortgage Loan Purchase and Servicing Agreement.

“Swap Fee” means, with respect to any Payment Date
occurring on or after the Swap Fee Effective Date, the
product of (a) 0.0010, times (b) the current Swap Fee
Notional Amount for the relevant Calculation Period, times
(c) the actual number of days from and including the
preceding Payment Date (or the Swap Fee Effective Date, in
the case of the first Payment Date occurring on or after the
Swap Fee Effective Date) to, but excluding, such Payment
Date, divided by 360.

“Swap Fee Effective Date” means the earlier of (x)
the Series 2007-A Closing Date (as defined in the Series
2007-A Supplement), and (y) January 31, 2007.

“Swap Fee Notional Amount” means, with respect to any
Payment Date the higher of (i) the Notional Amount, and (ii)
the product of the Sharing Percentage multiplied by 40% of
the Program Size.

“Terminated Loan” has the meaning set forth in the
section entitled “Interim Payment Dates.”

8. Payment Instructions:

	 	 	 
	Party A

	 	Party B
	 
	 	 
	[insert]

	 	The Collateral Account under the Security Agreement

1

Please confirm that the foregoing correctly sets forth the terms and conditions of our
agreement by returning an executed copy of this Confirmation to us.

Yours sincerely,

	 	 	 
	ABN AMRO BANK N.V.

By: /s/ Pippa Gran

	 	

	 
	 	 
	 

	 
	 	 
	Name:

	 	Pippa Gran

	 	 	 
	 	 	Title:	 	 	Authorized Signatory
	 	 	By: /s/ Stuart Ware-Lane
	 	 	Name:	 	 	Stuart Ware-Lane

Title: Authorized Signatory

Confirmed as of the date first written:

ST. ANDREW FUNDING TRUST

By: Christiana Bank & Trust Company, not in its individual capacity but solely as Owner Trustee

By: /s/ James M. Young

Name: James M. Young

Title: Vice President

2

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