Document:

FY2003 10K Exhibit 10.66

                         Exhibit 10.66 

	
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HOME EQUITY LINE OF CREDIT (HELOC) 

REVOLVING CREDIT LOAN 

PURCHASE, SALE & SERVICING AGREEMENT 

dated as of February 3, 2004

between

WACHOVIA BANK, N.A. 

Purchaser

AND

E-LOAN, INC.

Seller

	
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Table of Contents

	
ARTICLE I: DEFINITIONS
	
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Section 1.01 Defined Terms.

	
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ARTICLE II: SALE AND CONVEYANCE OF MORTGAGE LOANS; POSSESSION OF MORTGAGE
FILES; BOOKS AND RECORDS; DELIVERY OF MORTGAGE LOAN DOCUMENTS
	
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Section 2.01 Sale and Conveyance of Revolving Credit Loans.
	
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Section 2.02 Delivery of Documents, Possession of Mortgage Files.
	
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Section 2.03 Books and Records.
	
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Section 2.04 Defective Documents; Delivery of Revolving Credit Loan
Documents.
	
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Section 2.05 Transfer of Revolving Credit Loans.
	
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Section 2.06 Certain Revolving Credit Loan Not Acceptable for
Purchase.
	
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ARTICLE III: REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE SELLER;
REPURCHASE AND SUBSTITUTION; REVIEW OF MORTGAGE LOANS
	
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Section 3.01 Representations and Warranties of each Seller.
	
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Section 3.02 Representations and Warranties of the Servicer.
	
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Section 3.03 Representations and Warranties as to Individual Revolving
Credit Loans.
	
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Section 3.04 Repurchase and Substitution.
	
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Section 3.05 Additional Covenants of Seller and Servicer
	
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ARTICLE IV: REPRESENTATIONS AND WARRANTIES OF THE PURCHASER AND CONDITIONS
PRECEDENT TO FUNDING
	
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Section 4.01 Representations and Warranties of Purchaser.
	
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Section 4.02 Conditions Precedent to Closing.
	
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ARTICLE V: ADMINISTRATION AND SERVICING OF MORTGAGE LOANS
	
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Section 5.01 Seller to Act as Servicer; Servicing Standards; Additional
Documents; Consent of the Purchaser.
	
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Section 5.02 Collection of Revolving Credit Loan Payments.
	
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Section 5.03 Reports for Foreclosure Sales.
	
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Section 5.04 Establishment of Collection Account; Deposits in Collection
Account.
	
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Section 5.05 Permitted Withdrawals from the Collection Account.
	
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Section 5.06 Maintenance of Primary Insurance Policies; Collections
Thereunder.
	
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Section 5.07 Transfer of Accounts.
	
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Section 5.08 Maintenance of Mortgage Impairment Insurance Policy.
	
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Section 5.09 Fidelity Bond; Errors and Omissions Insurance.
	
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Section 5.10 Management of REO Properties.
	
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Section 5.11 Realization Upon Specially Serviced Revolving Credit
Loans.
	
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Section 5.12 Investment of Funds in the Collection Account.
	
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ARTICLE VI: REPORTS; REMITTANCES; ADVANCES
	
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Section 6.01 Remittances.
	
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Section 6.02 Reporting.
	
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Section 6.03 [Reserved].
	
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Section 6.04 Non-recoverable Advances.
	
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Section 6.05 Itemization of Servicing Advances.
	
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Section 6.06 Officer's Certificate.
	
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ARTICLE VII: GENERAL SERVICING PROCEDURE
	
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Section 7.01 Enforcement of Due-on-Sale Clauses, Assumption
Agreements.
	
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Section 7.02 Satisfaction of Mortgages and Release of Mortgage
Files.
	
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Section 7.03 Servicing Compensation.
	
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Section 7.04 Annual Statement as to Compliance.
	
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Section 7.05 Annual Independent Certified Public Accountants' Servicing
Report.
	
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Section 7.06 ICSA Data Security Reviews.
	
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Section 7.07 Purchaser's Right to Examine Servicer Records.
	
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Section 7.08 Optional Purchase of Delinquent Revolving Credit
Loans.
	
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ARTICLE VIII: REPORTS TO BE PREPARED BY THE SERVICER
	
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Section 8.01 The Servicer's Reporting Requirements.
	
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ARTICLE IX: THE SELLER
	
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Section 9.01 Indemnification; Third Party Claims.
	
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Section 9.02 Merger or Consolidation of the Seller.
	
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Section 9.03 Limitation on Liability of the Seller and Others.
	
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Section 9.04 Servicer Not to Resign.
	
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ARTICLE X: DEFAULT
	
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Section 10.01 Events of Default.
	
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ARTICLE XI: TERMINATION
	
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Section 11.01 Term and Termination of Servicing.
	
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Section 11.02 Survival.
	
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ARTICLE XII: GENERAL PROVISIONS
	
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Section 12.01 Successor to the Servicer.
	
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Section 12.02 Governing Law.
	
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Section 12.03 Notices.
	
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Section 12.04 Severability of Provisions.
	
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Section 12.05 Schedules and Exhibits.
	
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Section 12.06 General Interpretive Principles.
	
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Section 12.07 Waivers and Amendments, Noncontractual Remedies;
Preservation of Remedies.
	
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Section 12.08 Captions.
	
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Section 12.09 Counterparts; Effectiveness.
	
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Section 12.10 Entire Agreement; Amendment.
	
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Section 12.11 Further Assurances.
	
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Section 12.12 Intention of the Seller.
	
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Schedules*

A.Revolving Credit Loan Schedule Data Fields

B.Content of Mortgage File

B-1 Legal Documents

B-2 Credit Documents

C.Seller Guide- Applicable Guidelines and Restrictions

D. Sample Purchase Price and Terms Letter 

Exhibits* 

Exhibit 2.05Form of Assignment, Assumption and Recognition
Agreement

Exhibit 5.03Form of Notice of Foreclosure

Exhibit 5.04-1Form of Collection Account Certification

Exhibit 5.04-2Form of Collection Account Letter Agreement

Exhibit 6.02(a)Report P-139 -- Monthly Statement of Mortgage
Accounts

Exhibit 6.02(b)Report S-213 -- Summary of Curtailments Made
Remittance Report

Exhibit 6.02(c)Report S-214 -- Summary of Paid in Full Remittance
Report

Exhibit 6.02(d)Report S-215 -- Consolidation of Remittance
Report

Exhibit 6.02(e)Report S1AE -- Monthly Draw Report

Exhibit 8.01Report P-195 Delinquency Report

Exhibit 9Form of Officer's Certificate

Exhibit 10Form of Warranty Bill of Sale

 

 

*Exhibits and schedules have been omitted in accordance with Item 601
of Regulation S-K, and will be provided upon request.

	
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HELOC MORTGAGE LOAN PURCHASE, SALE & SERVICING
AGREEMENT

This HELOC Revolving Credit Loan Purchase, Sale &
Servicing Agreement, dated as of February 3, 2004, is entered into between
Wachovia Bank, N.A. ("Purchaser") and E-Loan, Inc., a Delaware corporation
("Seller").

PRELIMINARY STATEMENT 

1.Seller is engaged in the business, inter
alia, of making variable rate open-end home equity mortgage loans to
individuals, the repayment of which is secured by a first or second lien
mortgage on such individuals' residences.

2.Wachovia Bank, N.A. is engaged in the business,
inter alia, of purchasing and making variable rate open-end home equity
mortgage loans for its own account.

3.Seller has established certain terms, conditions and
loan programs for making variable rate open-end home equity mortgage loans as
described in Seller's Program and Underwriting Guidelines (the "Seller Guide")
and Wachovia Bank, N.A. is willing to purchase certain mortgage loans that
comply with the terms of such terms, conditions and loan programs (the
"Revolving Credit Loans"). The applicable provisions of the Seller Guide are
attached hereto as Schedule C. 

4.Wachovia Bank, N.A. and Seller desire to establish a
flow program whereby Seller will make variable rate open-end home equity
mortgage loans which meet the applicable provisions of the Seller Guide, and
Wachovia Bank, N.A. will, on a regular basis, purchase such mortgage loans from
Seller, as applicable, provided the parties agree on the price, date and other
conditions or considerations as set forth in this Agreement.

5.Wachovia Bank, N.A. and Seller wish to prescribe the
terms and manner of purchase by Wachovia Bank, N.A. and sale by Seller of the
Revolving Credit Loans, and the servicing of the Revolving Credit Loans prior to
transfer of the servicing to Wachovia Bank, N.A. or its designee by Seller, as
the Servicer, in this Agreement.

NOW, THEREFORE, in consideration of the mutual agreements
hereinafter set forth, Wachovia Bank, N.A. and Seller agree as follows :

	
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ARTICLE I
DEFINITIONS

Section 1.01 
Defined Terms. Whenever used
in this Agreement, the following words and phrases shall have the meaning
specified in this Article:

"Accepted Servicing Practices": Those servicing standards,
policies and procedures applicable to mortgage loans owned by Fannie Mae and
Freddie Mac as set forth in the respective servicing guidelines of each such
entity for servicers of such mortgage loans, or, with respect to matters not
addressed thereby, those customary and usual standards of servicing utilized by
prudent institutional mortgage loan servicers with respect to mortgage loans
comparable to the Revolving Credit Loans, in the jurisdiction where the
Revolving Credit Loans are located. 

"Accrued Interest": With respect to a Revolving Credit Loan,
interest which is accrued and unpaid at the effective Note Rate determined in
accordance with the Mortgage Note less the Servicing Fee Rate on the average
daily balance of Credit Line Advances outstanding from the date with respect to
which interest has last been paid to and received by the Seller to, and
including, the last day of the calendar month immediately preceding the calendar
month in which the Funding Date occurs. 

"Affiliate": When used with reference to a specified Person,
any Person that (i) directly or indirectly controls or is controlled by or
is under common control with the specified Person, (ii) is an officer of,
partner in or trustee of, or serves in a similar capacity with respect to, the
specified person or of which the specified Person is an officer, partner or
trustee, or with respect to which the specified Person serves in a similar
capacity, or (iii) directly or indirectly is the beneficial owner of 10% or
more of any class of equity securities of the specified Person or of which the
specified person is directly or indirectly the owner of 10% or more of any class
of equity securities.

"Agreement": This HELOC Revolving Credit Loan Purchase, Sale
& Servicing Agreement between the Purchaser and the Seller, together with
all amendments hereof and supplements hereto.

"ALTA": The American Land Title Association.

"Appraised Value": With respect to any Mortgaged Property,
the lesser of: (i) the value thereof as determined by an appraisal made for
the originator of the Revolving Credit Loan at the time of origination of the
Revolving Credit Loan by an appraiser who met the minimum requirements of FNMA
and FHLMC or the value as determined using another collateral assessment tool
approved by the Seller Guide, including, but not limited to, broker's price
opinions, AVMs or HUD-1 Settlement Statements or a FNMA Form 2005 or a FHMLC
Form 704; or (ii) the purchase price paid for the related Mortgaged
Property by the Mortgagor with the proceeds of the Revolving Credit Loan;
provided that, in the case of a Refinanced Revolving Credit Loan, such value of
the Mortgaged Property shall be based solely upon the value determined by an
appraisal made for the originator of such Refinanced Revolving Credit Loan at
the time of origination of such Refinanced Revolving Credit Loan by an appraiser
who met the minimum requirements of FNMA and FHLMC or any other collateral
assessment tool approved by the Seller Guide.

	
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"ARM Loan": An 'adjustable rate' Revolving Credit Loan, the
Note Rate of which is subject to periodic adjustment in accordance with the
terms of the Mortgage Note. Each Revolving Credit Loan subject to this Agreement
shall be an ARM Loan.

"Assignment": An individual assignment of a Mortgage, notice
of transfer or equivalent instrument in recordable form, sufficient under the
laws of the jurisdiction wherein the related Mortgaged Property is located to
reflect of record the sale or transfer of the Revolving Credit Loan.

"Bankruptcy Code": The Bankruptcy Reform Act of 1978 (11
U.S.C.    101-1330), as amended, modified, or supplemented from time to time,
and any successor statute, and all rules and regulations issued or promulgated
in connection therewith.

"Business Day": Any day other than (i) a Saturday or
Sunday, or (ii) a day on which the Federal Reserve is closed;

"Closing Date": February 3, 2004. .

"Code": The Internal Revenue Code of 1986, as amended.

"Collection Account": The separate trust account or accounts
created and maintained pursuant to Section 5.04.

"Combined Loan-to-Value Ratio" or "CLTV": With respect to any
Revolving Credit Loan, the ratio (expressed as a percentage) equal to the sum of
(a) the Credit Line, plus (y) the outstanding principal balance of any Senior
Liens on the Mortgaged Property as of the Cut-off Date divided by (b) the
Appraised Value of the related Mortgaged Property. 

"Condemnation Proceeds": All awards or settlements, whether
permanent or temporary, partial or entire, in respect of a Mortgaged Property by
exercise of the power of eminent domain or condemnation (or consideration
received for a deed in lieu of condemnation), to the extent not required to be
released to a Mortgagor in accordance with the terms of the related Revolving
Credit Loan documents. 

"Credit Documents": Those documents, comprising part of the
Mortgage File, required of the Mortgagor, as described in Section 2
(Specific Loan Program Guidelines) of the Seller Guide. The Credit Documents are
specified on Schedule B-2 hereto.

"Credit Line": With respect to a Revolving Credit Loan, the
maximum principal amount which may be advanced to a Mortgagor under the terms of
the related Mortgage Note.

"Credit Line Advance": With respect to a Revolving Credit
Loan, a principal disbursement to a Mortgagor under the terms of the related
Mortgage Note (collectively, "Credit Line Advances").

	
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"Cut-off Date": With respect to any Revolving Credit Loan (i)
which was originated within the month in which the respective Funding Date
occurs, the origination date of such Revolving Credit Loan, or (ii) which was
originated prior to the month in which the respective Funding Date occurs, the
last day of the month preceding the month in which such Funding Date occurs.

"Defective Revolving Credit Loan": As defined in
Section 3.04(c).

"Deleted Revolving Credit Loan": A Revolving Credit Loan
repurchased by Seller, replaced or to be replaced with a Qualified Substitute
Revolving Credit Loan.

"Delinquency Percentage": shall mean, with respect to any Due
Period, the percentage result equal to the sum of aggregate Credit Line Advances
outstanding with respect to all Revolving Credit Loans (a) for which the
scheduled Monthly Payment due during such Due Period has not been made by the
related Mortgagor, (b) for which the related borrower has filed for bankruptcy
protection, (c) which are in foreclosure, and (d) with respect to which the
related Mortgaged Property is characterized as an REO Property, in each case as
of the close of business on the last Business Day of such Due Period, divided by
the aggregate Credit Line Advances outstanding on of all of the Revolving Credit
Loans on such date.

"Determination Date": The close of business of the last
Business Day of the month immediately preceding the month of the related
Remittance Date.

"Due Date": With respect to any Revolving Credit Loan, the
day of the month on which each Monthly Payment is due thereon, exclusive of any
days of grace.

"Due Period": With respect to each Remittance Date, the
period commencing on the first day of the month immediately preceding the month
of such Remittance Date and ending on the last day of the month immediately
preceding the month of such Remittance Date.

"Eligible Account": One or more accounts that are maintained
(i) with a depository institution the long-term unsecured debt obligations of
which have been rated by each Rating Agency in one of its two highest rating
categories at the time of any deposit therein, (ii) that are trust accounts
with any depository institution held by the depository institution in its
capacity as a corporate trustee, or (iii) the deposits in which are insured
by the FDIC (to the limits established by the FDIC).

"Environmental Assessment": A "Phase I" environmental
assessment of a Mortgaged Property prepared by an Independent Person who
regularly conducts environmental assessments and who has any necessary
license(s) required by applicable law and has five years experience in
conducting environmental assessments.

"Environmental Conditions Precedent to Foreclosure": As
defined in Section 5.15.

"Environmental Laws": All federal, state, and local statutes,
laws, regulations, ordinances, rules, judgments, orders, decrees or other
governmental restrictions relating to the environment or to emissions,
discharges or releases of pollutants, contaminants or industrial, toxic or
hazardous substances or wastes into the environment, including ambient air,
surface water, ground water, or land, or otherwise relating to the manufacture,
processing, distribution, use, treatment, storage, disposal, transport or
handling of pollutants, contaminants or industrial, toxic or hazardous
substances or wastes or the cleanup or other remediation thereof.

	
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"Estimated Accrued Interest": With respect to a Revolving
Credit Loan and the calendar month in which the related Funding Date occurs, an
amount equal to accrued and unpaid interest for the period from, and including,
the first day of such calendar month to, but not including, the Funding Date at
the applicable Mortgage Interest Rate for such month less the Servicing Fee Rate
on the unpaid principal balance of Credit Line Advances outstanding as of the
close of business on the Cut-off Date.

"Estimated Purchase Price": The aggregate amount equal to,
for each Revolving Credit Loan, the sum of (a) the Purchase Price
Percentage of the Stated Principal Balance of each Revolving Credit Loan
plus, (b) Estimated Accrued Interest, minus (c) interest payments
received by the Seller that, in accordance with the terms of the Mortgage Note,
were due on or after the related Funding Date.

"Event of Default": Any one of the conditions or
circumstances enumerated in Section 10.01.

"FDIC": The Federal Deposit Insurance Corporation or any
successor organization.

"FHLMC": The Federal Home Loan Mortgage Corporation (also
known as Freddie Mac) or any successor organization.

"FHLMC Servicing Guide": The FHLMC/Freddie Mac Seller' and
Servicers' Guide in effect on and after the Funding Date.

"Fidelity Bond": A fidelity bond to be maintained by the
Servicer pursuant to Section 5.12.

"FNMA": The Federal National Mortgage Association (also known
as Fannie Mae) or any successor organization.

"FNMA Guide": The FNMA/Fannie Mae Selling Guide and the
Servicing Guide, collectively, in effect on and after the Funding Date.

"Funding Date": Each date, as specified in the related
Purchase Price and Terms Letter (up to four per month), upon which Purchaser
purchases Revolving Credit Loans from the Seller hereunder. 

"Funding Date Scheduled Principal Balance": With respect to
any Revolving Credit Loan and the related Funding Date, the outstanding unpaid
principal balance of all Credit Line Advances related to such Revolving Credit
Loan as of the Cut-off Date.

"Gross Margin": With respect to each ARM Loan, the fixed
percentage added to the Index on each Rate Adjustment Date, as specified in each
related Mortgage Note and listed in the Revolving Credit Loan Schedule.

	
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"Independent": With respect to any specified Person, such
Person who: (i) does not have any direct financial interest or any material
indirect financial interest in the applicable Mortgagor, the Seller, the
Servicer, the Purchaser, or their Affiliates; and (b) is not connected with
the applicable Mortgagor, the Seller, the Servicer, the Purchaser, or their
respective Affiliates as an officer, employee, promoter, underwriter, trustee,
member, partner, shareholder, director, or Person performing similar
functions.

"Index": With respect to each ARM Loan, on each Rate
Adjustment Date, the applicable rate index set forth on the Revolving Credit
Loan Schedule, which shall be an index described on such Revolving Credit Loan
Schedule.

"Insolvency Proceeding": With respect to any Person:
(i) any case, action, or proceeding with respect to such Person before any
court or other governmental authority relating to bankruptcy, reorganization,
insolvency, liquidation, receivership, dissolution, winding-up, or relief of
debtors; or (ii) any general assignment for the benefit of creditors,
composition, marshaling of assets for creditors, or other, similar arrangement
in respect of the creditors generally of such Person or any substantial portion
of such Person's creditors; in any case undertaken under federal, state or
foreign law, including the Bankruptcy Code.

"Insurance Proceeds": Proceeds of any Purchaser-Paid Mortgage
Insurance Policy, title policy, hazard policy or other insurance policy covering
a Revolving Credit Loan, if any, to the extent such proceeds are not to be
applied to the restoration of the related Mortgaged Property or released to the
Mortgagor in accordance with the procedures that the Servicer would follow in
servicing mortgage loans held for its own or its Affiliates' account or managed
by it for third-party institutional investors.

"Interest Adjustement Date": As to any ARM Loan, the date
specified in a Mortgage Note on which the Mortgage Interest Rate for the related
Mortgage Loan is subject to adjustment.

"Legal Documents": Those documents, comprising part of the
Mortgage File, set forth in Schedule B-1 of this Agreement.

"Liquidation Proceeds": Amounts, other than Insurance
Proceeds and Condemnation Proceeds, received by the Servicer in connection with
the liquidation of a defaulted Revolving Credit Loan through trustee's sale,
foreclosure sale or otherwise, other than amounts received following the
acquisition of an REO Property in accordance with the provisions hereof.

"Loan-to-Value Ratio" or "LTV": With respect to any Revolving
Credit Loan, the original principal balance of such Revolving Credit Loan
divided by Appraised Value of the related Mortgaged Property.

"MAI Appraiser": With respect to any real property, a member
of the American Institute of Real Estate Appraisers with a minimum of 5 years of
experience appraising real property of a type similar to the real property being
appraised and located in the same geographical area as the real property being
appraised.

	
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"Maximum Rate": With respect to each ARM Loan, the rate per
annum set forth in the related Mortgage Note as the maximum Note Rate
thereunder. The Maximum Rate as to each ARM Loan is set forth on the related
Revolving Credit Loan Schedule.

"Minimum Rate": With respect to each ARM Loan, the rate per
annum set forth in the related Mortgage Note as the minimum Note Rate
thereunder. The Minimum Rate as to each ARM Loan is set forth on the related
Revolving Credit Loan Schedule.

"Monthly Payment": The monthly payment of principal and/or
interest on a Revolving Credit Loan which is payable by a Mortgagor under the
related Mortgage Note.

"Monthly Period": Initially, the period from the Cutoff Date
through to and including the first Determination Date during the term hereof,
and, thereafter, the period commencing on the day after each Determination Date
during the term hereof and ending on the next succeeding Determination Date
during the term hereof (or, if earlier, the date on which this Agreement
terminates).

"Mortgage": The mortgage, deed of trust or other instrument
securing a Mortgage Note, which creates a lien on an unsubordinated estate in
fee simple in real property.

"Mortgaged Property": With respect to a Revolving Credit
Loan, the underlying real property securing repayment of a Mortgage Note,
consisting of a fee simple estate.

"Mortgage File": With respect to a particular Revolving
Credit Loan, those origination and servicing documents, escrow documents, and
other documents as are specified on Schedule B-1 and B-2 to this Agreement and
any additional documents required to be added to the Mortgage File pursuant to
the related Purchase Price and Terms Letter. Notwithstanding the previous
sentence, the documents constituting the Mortgage File may be provided as imaged
files.

"Mortgage Interest Rate": As to each Mortgage Loan at any time,
the annual rate at which interest accrues on such Mortgage Loan at such time
pursuant to the related Mortgage Note. 

"Mortgage Note": The note or other evidence of the
indebtedness of a Mortgagor secured by a Mortgage.

"Mortgagor": The obligor or obligors on a Mortgage Note.

"90 Day Rolling Delinquency Percentage" With respect to the
entire portfolio of Revolving Credit Loans, and a date of determination, a
percentage equal to the weighted average of the Delinquency Percentages for the
immediately preceding three Due Periods.

"Non-recoverable Advance": As of any date of determination,
any Servicing Advance previously made or any Servicing Advance proposed to be
made in respect of a Revolving Credit Loan which, in the good faith judgment of
the Servicer and in accordance with the servicing standard set forth in
Section 5.01, will not or, in the case of a proposed advance, would not be
ultimately recoverable pursuant to Section 5.05 (d) or (e) hereof. The
determination by the Servicer that it has made a Non-recoverable Advance or that
any proposed advance would constitute a Non-recoverable Advance shall be
evidenced by an Officer's Certificate satisfying the requirements of
Section 6.04 hereof and delivered to the Purchaser on or before the
Determination Date in any month.

	
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"Note Rate": With respect to any Revolving Credit Loan at any
time any determination thereof is to be made, the annual rate at which interest
accrues thereon as determined in accordance with the terms of the related
Mortgage Note.

"Offering Materials": All documents, tapes, or other
materials relating to the Revolving Credit Loans provided by Seller to Purchaser
prior to Purchaser submitting its bid to purchase the Mortgage loans.

"Officers' Certificate": A certificate signed by (i) the
President or a Vice President and (ii) the Treasurer or the Secretary or
one of the Assistant Treasurers or Assistant Secretaries of the Servicer, and
delivered by the Servicer to the Purchaser as required by this Agreement.

"Payment Adjustment Date": The date on which Monthly Payments
shall be adjusted as determined in accordance with the related Mortgage
Note.

"Payoff": With respect to any Revolving Credit Loan, any
payment or recovery received in advance of the last scheduled Due Date of such
Revolving Credit Loan, which payment or recovery consists of principal in an
amount equal to the outstanding principal balance of such Revolving Credit Loan,
all accrued and unpaid prepayment penalties, if any, premiums, and/or interest
with respect thereto, and all other unpaid sums due with respect to such
Revolving Credit Loan, provided that, if received during the period when Credit
Line Advances can be made, the Mortgagor has requested that the Revolving Credit
Line be terminated.

"Periodic Rate Cap": With respect to each ARM Loan, the
permissible percentage by which the Note Rate may be increased or decreased on
any Rate Adjustment Date as determined in accordance with the terms of the
related Mortgage Note.

"Permitted Investments": Investments that mature, unless
payable on demand, not later than the Business Day preceding the related
Remittance Date; provided that such investments shall only consist of the
following:

	direct obligations of, or obligations fully guaranteed as
to principal and interest by, the United States or any agency or instrumentality
thereof, provided such obligations are backed by the full faith and credit of
the United States;

	repurchase obligations (the collateral for which is held
by a third party), provided that the long-term unsecured obligations of the
party agreeing to repurchase such obligations are at the time rated by each
Rating Agency in one of its two highest rating categories, 

	certificates of deposit, time deposits and bankers'
acceptances of any bank or trust company incorporated under the laws of the
United States or any state, provided that the long-term unsecured debt
obligations of such bank or trust company (or, in the case of the principal
depository institution of a depository institution holding company, the long-
term unsecured debt obligations of the depository institution holding company)
at the date of acquisition thereof have been rated by each Rating Agency in one
of its two highest rating categories

	commercial paper (having original maturities of not more
than 365 days) of any corporation incorporated under the laws of the United
States or any state thereof which on the date of acquisition has been rated at
the time by each Rating Agency in its highest rating category; and 

	any other demand, money market or time deposit account or
obligation, or interest-bearing or other security or investment, acceptable to
the Purchaser (such acceptance evidenced in writing);

	
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provided further that "Permitted Investments" shall not
include any instrument described hereunder which evidences either the right to
receive (a) only interest with respect to the obligations underlying such
instrument or (b) both principal and interest payments derived from
obligations underlying such instrument and the interest and principal payments
with respect to such instrument provide a yield to maturity at par greater than
120% of the yield to maturity at par of the underlying obligations.

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

"Premium": With respect to a Revolving Credit Loan, an amount
equal to the Purchase Price Percentage minus 100% (each expressed as a decimal),
multiplied by the Funding Date Scheduled Principal Balance of such Revolving
Credit Loan.

"Prepaid Monthly Payment": Any Monthly Payment received prior
to its scheduled Due Date.

"Purchase Price": As to each Revolving Credit Loan, the price
set forth in the Revolving Credit Loan Schedule determined in accordance with
the related Purchase Price and Terms Letter.

"Purchase Price and Terms Letter": With respect to any pool
of Revolving Credit Loans purchased and sold on any Funding Date, the letter
agreement between the Purchaser and Seller (including any exhibits, schedules
and attachments thereto, which shall be substantially in the form of Schedule D
hereof), setting forth the terms and conditions of such transaction and
describing the Revolving Credit Loans to be purchased by the Purchaser on such
Funding Date, which shall include the Purchaser's Par Rate Sheet and the
Addendum to Par Rate Sheet. A Purchase Price and Terms Letter may relate to more
than one pool of Revolving Credit Loans to be purchased on one or more Funding
Dates hereunder.

"Purchase Price Percentage:" With respect to a Revolving
Credit Loan, the percentage amount, as set forth on the Revolving Credit Loan
Schedule, expressed as a decimal, which is multiplied by the Funding Date
Scheduled Principal Balance to determine the principal portion of the related
Purchase Price on the related Funding Date.

	
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"Purchaser": WACHOVIA BANK, N.A., or its successor in
interest or any successor under this Agreement appointed as herein provided.

"Purchaser-Paid Mortgage Insurance Policy": With respect to the Revolving Credit
Loans serviced hereunder, a primary insurance policy which is a blanket policy
of primary mortgage insurance covering the Revolving Credit Loans for which the
Purchaser is obligated to pay premiums in an amount determined using a per annum
rate (the "Purchaser-Paid Mortgage Insurance Rate") equal to the percentage
indicated on the Revolving Credit Loan Schedule.

"Purchaser's Account": The account of the Purchaser at a bank
or other entity most recently designated in a written notice by the Purchaser to
the Seller as the "Purchaser's Account."

"Qualified Mortgage Insurer": American Guaranty Corporation,
Commonwealth Mortgage Assurance Company, General Electric Mortgage Insurance
Companies, Mortgage Guaranty Insurance Corporation, PMI Mortgage Insurance
Company, Old Republic Mortgage Insurance Company, Radian FKA Commonwealth or
United Guaranty Residential Insurance Corporation.

"Qualified Substitute Revolving Credit Loan": A Revolving
Credit Loan substituted by a Seller for a Deleted Revolving Credit Loan which
must, on the date of such substitution, (a)(i) have a Credit Line (or in
the case of a substitution of more than one mortgage loan for a Deleted
Revolving Credit Loan, an aggregate principal balance), not in excess of one
hundred ten percent (110%) of the Credit Line of the Deleted Revolving Credit
Loan and not less than ninety percent (90%) of the Credit Line of the Deleted
Revolving Credit Loan (the amount of any shortfall to be distributed by the
Seller to the Purchaser in the month of substitution), (ii) have a
remaining term to maturity not substantially greater than (and not more than one
year less than) that of the Deleted Revolving Credit Loan, (iii) have a
Note Rate not less than (and not more than one percentage point greater than)
the Note Rate of the Deleted Revolving Credit Loan, (iv) have a Minimum
Rate not less than that of the Deleted Revolving Credit Loan, (v) have a
Maximum Rate not less than that of the Deleted Revolving Credit Loan and not
more than two (2) percentage points above that of the Deleted Revolving Credit
Loan, (vi)  have a Gross Margin not less than that of the Deleted Revolving
Credit Loan, (vii) have a Periodic Rate Cap equal to that of the Deleted
Revolving Credit Loan, (viii) have a Loan-to-Value Ratio at the time of
substitution equal to or less than the Loan-to-Value Ratio of the Deleted
Revolving Credit Loan at the time of substitution, (ix) have the same Rate
Adjustment Date as that of the Deleted Revolving Credit Loan, (x) have an
Index as provided herein for all ARM Loans subject to this Agreement,
(xi) comply as of the date of substitution with each representation and
warranty set forth in Sections 3.01, 3.02 and 3.03, (xii) be in the same
credit grade category as the Deleted Revolving Credit Loan and (xiii) have
the same prepayment penalty term or (b) otherwise be acceptable to the
Purchaser.

"Rate Adjustment Date": With respect to each ARM Loan, the
date on which the Note Rate adjusts.

"Rating Agency": Standard & Poor's Ratings Services, a
division of The McGraw-Hill Companies, Moody's Investors Service, Inc., and
Fitch, Inc. 

	
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"Refinanced Revolving Credit Loan": A Revolving Credit Loan
that was made to a Mortgagor who owned the Mortgaged Property prior to the
origination of such Revolving Credit Loan and the proceeds of which were used in
whole or part to satisfy an existing mortgage.

"REMIC": A "real estate mortgage investment conduit" within
the meaning of Section 860D of the Internal Revenue Code or any similar tax
vehicle providing for the pooling of assets (such as a Financial Asset Security
Investment Trust).

"Remittance Date": The 20th day of each calendar month,
commencing on the 20th day of the month following the Funding Date, or, if such
20th day is not a Business Day, then the next Business Day immediately preceding
such 20th day.

"Remittance Rate": With respect to each Revolving Credit
Loan, the related Note Rate minus the Servicing Fee Rate.

"REO Property": A Mortgaged Property acquired by the Servicer
on behalf of the Purchaser as described in Section 5.13.

"Repurchase Price": As to each Revolving Credit Loan required
to be repurchased hereunder, an amount equal to the sum of (1) the related
Purchase Price Percentage multiplied by the Stated Principal Balance of such
Revolving Credit Loan at the time of repurchase; plus (2) accrued interest on
such Revolving Credit Loan at the applicable Note Rate from the last date
through which interest has been distributed to the Purchaser hereunder to the
date of repurchase, whether or not received; plus (3) the aggregate amount of
any Servicing Advances relating to such Revolving Credit Loan incurred on or
prior to the Repurchase Date, minus (4) any amounts representing interest
payments received in respect of such Defective Revolving Credit Loan which are
being held in the Collection Account for future remittance, provided such
amounts in the Collection Account are actually remitted to Purchaser.

"Revolving Credit Loan": Each individual variable rate open-
end home-equity mortgage loan (including all documents included in the Mortgage
File evidencing the same, all Monthly Payments, Insurance Proceeds, Condemnation
Proceeds, Liquidation Proceeds, and other proceeds relating thereto, and any and
all rights, benefits, proceeds and obligations arising therefrom or in
connection therewith) which (a) is the subject of this Agreement and the related
Purchase Price and Terms Letter, (b) is identified on a Revolving Credit Loan
Schedule prepared in connection with the related Funding Date, and (c) became
subject to this Agreement upon payment of the Purchase Price by Purchaser on
such Funding Date.

"Revolving Credit Loan Schedule": The list (prepared by the
Seller or its agent) of Revolving Credit Loans purchased by Purchaser on each
Funding Date that sets forth the information specified on Schedule A hereto
(with respect to each such Revolving Credit Loan (as such Revolving Credit Loan
Schedule is amended from time to time to reflect the addition of any Qualified
Substitute Revolving Credit Loans) and the deletion of any Deleted Revolving
Credit Loans).

"Seller": E-Loan, Inc., or its successors in interest.

	
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"Seller Guide": As defined in paragraph 3 of the Preliminary
Statement to this Agreement.

"Senior Lien": With respect to a Revolving Credit Loan, a
lien (i) which is senior in priority to that of the related Mortgage, and (ii)
the outstanding principal balance of which (determined as of the date the
Revolving Credit Loan was originated) is stated on the Revolving Credit Loan
Schedule with respect to such Revolving Credit Loan

"Servicer": As described in Section 5.01, E-Loan, Inc. 

"Servicer's Mortgage File": With respect to a particular
Revolving Credit Loan copies or images of the documents specified on
Schedule B-1 hereto and originals or copies of the documents specified on
Schedule B-2 attached hereto and all additional documents received by Servicer
with respect to such Revolving Credit Loan.

"Servicing Advances": All "out of pocket" costs and expenses
that are customary, reasonable and necessary which are incurred by the Servicer
in the performance of its servicing obligations hereunder, including (without
duplication) (i) reasonable attorneys' fees and (ii) the cost of
(a) the preservation, restoration and protection of the Mortgaged Property,
(b) any enforcement or judicial proceedings, including foreclosures,
(c) the servicing, management and liquidation of any Specially Serviced
Mortgaged Loans and/or any REO Property, and (d) compliance with the
Servicer's obligations under Section 5.08.

"Servicing Event": Any of the following events with respect
to any Revolving Credit Loan: (i) any Monthly Payment being more than 60
days delinquent; (ii) any filing of an Insolvency Proceeding by or on
behalf of the related Mortgagor, any consent by or on behalf of the related
Mortgagor to the filing of an Insolvency Proceeding against such Mortgagor, or
any admission by or on behalf of such Mortgagor of its inability to pay such
Person's debts generally as the same become due; (iii) any filing of an
Insolvency Proceeding against the related Mortgagor that remains undismissed or
unstayed for a period of 60 days after the filing thereof; (iv) any
issuance of any attachment or execution against, or any appointment of a
conservator, receiver or liquidator with respect to, all or substantially all of
the assets of the related Mortgagor or with respect to any Mortgaged Property;
(v) any receipt by the Servicer of notice of the foreclosure or proposed
foreclosure of any other lien on the related Mortgaged Property; (vi) any
proposal of a material modification (as reasonably determined by the Seller) to
such Revolving Credit Loan due to a default or imminent default under such
Revolving Credit Loan; or (vii) in the reasonable judgment of the Servicer,
the occurrence, or likely occurrence within 60 days, of a payment default with
respect to such Revolving Credit Loan that is likely to remain uncured by the
related Mortgagor within 60 days thereafter.

"Servicing Fee": With respect to each Revolving Credit Loan,
the annual fee the Purchaser shall pay for servicing, which shall, for each Due
Period, be equal to one-twelfth (1/12) of the product of (i) the average
daily Stated Principal Balance of such Revolving Credit Loan for such Due
Period, and (ii) the Servicing Fee Rate applicable to such Revolving Credit
Loan. Such fee shall be payable monthly, computed on the basis of the same
principal amount and period respecting which any related interest payment on
such Revolving Credit Loan is computed. The obligation of the Purchaser to pay
the Servicing Fee is limited to, and the Servicing Fee is payable solely from,
the interest portion (including recoveries with respect to interest from
Liquidation Proceeds) of Monthly Payments remitted to Purchaser.

	
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"Servicing Fee Rate": One-half of one percent (0.50%) per
annum.

"Servicing Officer": Any officer of the Servicer involved in,
or responsible for, the administration and servicing of the Revolving Credit
Loans whose name appears on a written list of servicing officers furnished by
the Servicer to the Purchaser upon request therefor by the Purchaser, as such
list may from time to time be amended.

"Specially Serviced Revolving Credit Loan": A Revolving
Credit Loan as to which a Servicing Event has occurred and is continuing.

"Stated Principal Balance": With respect to any Revolving
Credit Loan, and a date of determination, the sum of (i) the Funding Date
Scheduled Principal Balance, plus (ii) all Credit Line Advances made with
respect to such Revolving Credit Loan on or after the Cut-off Date to, but not
including, such date of determination (to the extent such Credit Line Advances
will be reimbursed by or on behalf of Purchaser in accordance with this
Agreement), minus (iii) all amounts previously remitted to the Purchaser
with respect to such Revolving Credit Loan representing payments or other
recoveries of principal, minus (iv) all amounts representing principal payments
being held in the Collection Account for remittance to Purchaser (provided such
amounts are actually remitted to Purchaser in accordance with this
Agreement).

"Uniform Commercial Code": The Uniform Commercial Code as in
effect on the date hereof in the State of North Carolina; provided that if by
reason of mandatory provisions of law, the perfection or the effect of
perfection or non-perfection of the security interest in any collateral is
governed by the Uniform Commercial Code as in effect in a jurisdiction other
than North Carolina, "Uniform Commercial Code" shall mean the Uniform Commercial
Code as in effect in such other jurisdiction for purposes of the provisions
hereof relating to such perfection or effect of perfection or non-
perfection.

"Unpaid Principal Balance": With respect to any Revolving
Credit Loan, at any time, the actual outstanding principal balance then payable
by the Mortgagor under the terms of the related Mortgage Note.

"Warranty Bill of Sale": A warranty bill of sale with respect
to the Revolving Credit Loans purchased on a Funding Date in the form annexed
hereto as Exhibit 10.

ARTICLE II

SALE AND CONVEYANCE
OF MORTGAGE LOANS; POSSESSION OF MORTGAGE FILES; BOOKS AND RECORDS; DELIVERY OF
MORTGAGE LOAN DOCUMENTS

Section 2.01
                       Sale and
Conveyance of Revolving Credit Loans.

Seller agrees to sell and Purchaser agrees to purchase, from
time to time, those certain Revolving Credit Loans identified in a Revolving
Credit Loan Schedule, at the price and on the terms set forth herein and in the
related Purchase Price and Terms Letter. Purchaser, on any Funding Date, shall
be obligated to purchase only such Revolving Credit Loans set forth in the
applicable Revolving Credit Loan Schedule, subject to the terms and conditions
of this Agreement and the related Purchase Price and Terms Letter. 

	
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Purchaser will purchase Revolving Credit Loans from Seller on
such Funding Dates as may be agreed upon by Purchaser and Seller. The closing
shall, at Purchaser's option be either: by telephone, confirmed by letter, e-
mail, or facsimile, and/or wire as the parties shall agree; or conducted in
person at such place, as the parties shall agree. 

On each Funding Date and subject to the terms and conditions
of this Agreement, each Seller will sell, transfer, assign, set over and convey
to the Purchaser, without recourse except as set forth in this Agreement, and
the Purchaser will purchase, all of each Seller's right, title and interest in
and to the Revolving Credit Loans being conveyed by it hereunder, as identified
on the Revolving Credit Loan Schedule. Conveyance of title to the Revolving
Credit Loans shall be accomplished, on or before the related Funding Date, by
(i) an endorsement of each Mortgage Note to the Purchaser by the Seller, (ii) an
assignment of each Mortgage to the Purchaser by the Seller, and (iii) delivery
of a Warranty Bill of Sale in the form attached hereto as Exhibit 10.

Examination of the Mortgage Files may be made by Purchaser or its
designee as follows. Prior to each Funding Date, Seller will deliver to
Purchaser or its designee, the Legal Documents required pursuant to Schedule B-
1. On or before such Funding Date, Seller shall make the Credit Documents and
copies of the Legal Documents available to Purchaser for review, at Purchaser's
office at 301 S. College St., 10th Floor, Charlotte, NC 28288, during
reasonable business hours. If Purchaser identifies any Revolving Credit Loans
that do not conform to the requirements of the Seller Guide or this Agreement,
Purchaser may demand that the Seller repurchase such Revolving Credit Loan by
providing notice to Seller within 30 days of the related Funding Date. Seller
shall repurchase any such Revolving Credit Loan within 10 Business Days of
receipt of Purchaser's written notice requiring the same. The fact that
Purchaser has conducted or has failed to conduct any partial or complete
examination of the Revolving Credit Loan files shall not affect Purchaser's
rights to demand repurchase or other relief as provided herein.

On each Funding Date, and in accordance with the terms herein, Purchaser
will pay to Seller, by wire transfer of immediately available funds, the
Estimated Purchase Price, according to the instructions to be provided,
respectively, by Seller. Seller, simultaneously with the payment of the Purchase
Price, shall execute and deliver to Purchaser a Warranty Bill of Sale with
respect to the Revolving Credit Loans in the form annexed hereto as
Exhibit 10. Notwithstanding the foregoing, the amount of the
variance, if any, between the amount of the Estimated Accrued Interest and the
actual accrued interest on a Revolving Credit Loan at the applicable Mortgage
Interest Rate for the period from, and including the Cut-off Date to but not
including the Funding Date shall be reconciled and adjusted for at the time of
the first scheduled remittance to the Purchaser with respect to such Revolving
Credit Loans.

Purchaser shall be entitled to all scheduled principal and interest
payments received and posted after the Cut-off Date. Except as provided in the
last sentence of this paragraph, the Purchaser shall also be entitled to all
other recoveries on the Revolving Credit Loans collected on or after the Cut-off
Date. Principal and interest payments on or prior to the Cut-off Date shall
belong to the Seller. 

If either Party discovers an error in the Purchase Price calculation or
payment within one-hundred-twenty (120) days after a Funding Date, such Party
shall notify the other party and the parties shall make any Purchase Price
adjustments and transfers of funds required to correct any errors in the
calculation or payment of the Purchase Price.

Section 2.02
Delivery of Documents, Possession of Mortgage
Files.

With respect to each Revolving Credit Loan to be
purchased by the Purchaser on the related Funding Date, the Seller will deliver
to the Purchaser or its designee the Legal Documents as set forth in Schedule B-
1 on or before such Funding Date. 

	
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Upon the sale of any Revolving Credit Loan by a Seller, the
ownership of such Revolving Credit Loan, including the Mortgage Note, the
Mortgage, the contents of the related Mortgage File and all rights, benefits,
payments, proceeds and obligations arising therefrom or in connection therewith,
shall then be vested in the Purchaser, and the ownership of all records and
documents with respect to such Revolving Credit Loan prepared by or which come
into the possession of the Seller shall immediately vest in the Purchaser and,
to the extent retained by the Seller or the Servicer, shall be retained and
maintained, in trust, by the Seller or the Servicer, as applicable, at the will
of the Purchaser in a custodial capacity only. The contents of such Mortgage
File not delivered to the Purchaser are and shall be held in trust by the Seller
or the Servicer, as applicable, for the benefit of the Purchaser as the owner
thereof and the Seller' or the Servicer's possession of the contents of each
Mortgage File so retained is at the will of the Purchaser for the sole purpose
of servicing the related Revolving Credit Loan, and such retention and
possession by the Seller or the Servicer is in a custodial capacity only.
Mortgage Files shall be maintained separately from the other books and records
of the Seller or the Servicer. Each Seller and the Servicer shall release from
its custody of the contents of any Mortgage File only in accordance with written
instructions from the Purchaser, except where such release is required as
incidental to the Servicer 's servicing of the Revolving Credit Loans or is in
connection with a repurchase or substitution of any such Revolving Credit Loan
pursuant to Section 3.04.

Any documents released to a Seller or the Servicer in
connection with the foreclosure or servicing of any Revolving Credit Loan shall
be held by such Person in trust for the benefit of the Purchaser in accordance
with this Section 2.02. Such Person shall return to the Purchaser
such documents when such Person's need in connection with such foreclosure or
servicing no longer exists (unless sooner requested by the Purchaser);
provided that, if such Revolving Credit Loan is liquidated, then, upon
the delivery by a Seller or the Servicer to the Purchaser of a request for the
release of such documents and a certificate certifying as to such liquidation,
the Purchaser shall promptly release and, to the extent necessary, deliver to
such Person such documents.

Section 2.03
                       Books
and Records.

The sale of each of its Revolving Credit Loans shall be
reflected on the Seller' s balance sheet and other financial statements as a
sale of assets by the Seller. Each Seller shall be responsible for maintaining,
and shall maintain, a complete set of books and records for the Revolving Credit
Loans it conveyed to the Purchaser which shall be clearly marked to reflect the
sale of each Revolving Credit Loan to the Purchaser and the ownership of each
Revolving Credit Loan by the Purchaser.

Section 2.04
                       Defective Documents; Delivery of Revolving Credit Loan
Documents.

If, subsequent to the related Funding Date, the Purchaser
or either Seller finds any document or documents constituting a part of a
Mortgage File to be defective in any material respect or missing (in this
Section 2.04, a "Defect"), the party discovering such Defect shall promptly
so notify the other parties. The Seller shall have a period of 45 days within
which to correct or cure any such Defect after the earlier of Seller's discovery
of same or Seller being notified of same. If such Defect can ultimately be cured
but is not reasonably expected to be cured within such 45 day period, Seller
shall have such additional time as is reasonably determined by the Purchaser
(but which shall not exceed 120 days from the date of notification pursuant to
the first sentence of this paragraph) to cure or correct such Defect provided
that Seller has commenced curing or correcting such Defect and is diligently
pursuing same. Seller hereby covenants and agrees that, if any material Defect
cannot be corrected or cured, the related Revolving Credit Loan shall
automatically constitute, upon the expiration of the applicable cure period
described above and without any further action by any other party, a Defective
Revolving Credit Loan, whereupon Seller shall repurchase such Revolving Credit
Loan by paying to the Purchaser the Repurchase Price therefor in accordance with
Section 3.04(c) and (d).

	
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The Seller will, with respect to each Revolving Credit Loan
to be purchased by the Purchaser, deliver and release to the Purchaser the Legal
Documents as set forth in Section 2.01. If the Seller cannot deliver
an original intervening assignment with evidence of recording thereon within the
applicable time periods, then the Seller shall promptly deliver to the Purchaser
such original intervening assignments with evidence of recording indicated
thereon upon receipt thereof from the public recording official, except in cases
where the original intervening assignments are retained permanently by the
recording office, in which case, Seller shall deliver a copy of such intervening
assignment, certified to be a true and complete copy of the recorded original
thereof by the applicable recording office. If an original intervening
assignment has been lost, then the Seller will deliver a copy of such
intervening assignment, certified by the local public recording official 

At the Purchaser's request, the Assignments shall be promptly
recorded in the name of the Purchaser or in the name of a Person designated by
the Purchaser in all appropriate public offices for real property records. If
any such Assignment is lost or returned unrecorded because of a defect therein,
then the Seller shall promptly prepare a substitute Assignment to cure such
defect and thereafter cause each such Assignment to be duly recorded. All
recording fees related to such a one-time recordation of the Assignments to or
by Seller shall be paid by the Seller.

Section 2.05
                       Transfer
of Revolving Credit Loans.

Subject to the provisions of this
Section 2.05, the Purchaser shall have the right, at any time and
from time to time, to assign any of the Revolving Credit Loans and all or any
part of its interest under this Agreement and designate any person to exercise
any rights of the Purchaser hereunder, and the assignees or designees shall
accede to the rights and obligations hereunder of the Purchaser with respect to
such Revolving Credit Loans. Any such assignee or designee must be acceptable to
the Servicer in its reasonable discretion, and must provide the Servicer with
all financial statements required under Section 4.01(n) prior to such assignment
The Seller recognizes that the Revolving Credit Loans may be divided into
"packages" for resale ("Revolving Credit Loan Packages" ). 

All of the provisions of this Agreement shall inure to the
benefit of the Purchaser and any such assignees or designees. All references to
the Purchaser shall be deemed to include its assignees or designees. Utilizing
resources reasonably available to the Seller without incurring any cost except
the Seller's overhead and employees' salaries, the Seller shall cooperate in any
such assignment of the Revolving Credit Loans and this Agreement; provided that
the Purchaser shall bear all costs associated with any such assignment of the
Revolving Credit Loans and this Agreement other than Seller's overhead or
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The Servicer and the Purchaser acknowledge that the Servicer
shall continue to remit payments to the Purchaser on the Remittance Date after
the transfer of the Revolving Credit Loans, unless the Servicer was notified in
writing of the new record owner of the Revolving Credit Loans prior to the
immediately preceding Determination Date, in which case, the Servicer shall
remit to the new record owner (or trustee or master servicer, as the case may
be) of the Revolving Credit Loans.

Any prospective assignees of the Purchaser who have entered into a
commitment to purchase any of the Revolving Credit Loans may review and
underwrite the Servicer's servicing and origination operations, upon reasonable
prior notice to the Servicer, and the Servicer shall cooperate with such review
and underwriting to the extent such prospective assignees request information or
documents that are reasonably available and can be produced without unreasonable
expense or effort. The Servicer shall make the Mortgage Files related to the
Revolving Credit Loans held by the Servicer available at the Servicer's
principal operations center for review by any such prospective assignees during
normal business hours upon reasonable prior notice to the Servicer (in no event
less than 5 Business Days prior notice). The Servicer may, in its sole
discretion, require that such prospective assignees sign a confidentiality
agreement with respect to such information disclosed to the prospective assignee
which is not available to the public at large and a release agreement with
respect to its activities on the Servicer's premises. The Servicer shall keep at
its servicing office books and records in which, subject to such reasonable
regulations as it may prescribe, the Servicer shall note transfers of Revolving
Credit Loans. The Purchaser may, subject to the terms of this Agreement, sell
and transfer, in whole or in part, any or all of the Revolving Credit Loans;
provided that no such sale and transfer shall be binding upon the
Servicer unless such transferee shall agree in writing to an Assignment,
Assumption and Recognition Agreement, in substantially the form of
Exhibit 2.05 attached hereto, and an executed copy of such
Assignment, Assumption and Recognition Agreement shall have been delivered to
the Servicer. The Servicer shall evidence its acknowledgment of any transfers of
the Revolving Credit Loans to any assignees of the Purchaser by executing such
Assignment, Assumption and Recognition Agreement. The Servicer shall mark its
books and records to reflect the ownership of the Revolving Credit Loans by any
such assignees, and the previous Purchaser shall be released from its
obligations hereunder accruing after the date of transfer to the extent such
obligations relate to Revolving Credit Loans sold by the Purchaser. This
Agreement shall be binding upon and inure to the benefit of the Purchaser and
the Servicer and their permitted successors, assignees and designees.

ARTICLE III

REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE SELLER;
REPURCHASE AND SUBSTITUTION; REVIEW OF MORTGAGE
LOANS

Section 3.01
                       Representations and Warranties of
Seller.

Seller, as to itself, represents, warrants and covenants to
the Purchaser that as of each Funding Date or as of such date specifically
provided herein:

	Due Organization. The Seller is an entity duly
organized, validly existing and in good standing under the laws of its
jurisdiction of organization, and has all licenses necessary to carry on its
business now being conducted and is licensed, qualified and in good standing
under the laws of each state where a Mortgaged Property is located or is
otherwise exempt under applicable law from such qualification or is otherwise
not required under applicable law to effect such qualification; no demand for
such qualification has been made upon the Seller by any state having
jurisdiction and in any event the Seller is or will be in compliance with the
laws of any such state to the extent necessary to enforce each Revolving Credit
Loan and with respect to Seller, service each Revolving Credit Loan in
accordance with the terms of this Agreement.

	
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	Due Authority. The Seller had the full power and
authority and legal right to originate the Revolving Credit Loans that it
originated, if any, and to acquire the Revolving Credit Loans that it acquired.
The Seller has the full power and authority to hold each Revolving Credit Loan,
to sell each Revolving Credit Loan and to execute, deliver and perform, and to
enter into and consummate, all transactions contemplated by this Agreement. The
Seller has duly authorized the execution, delivery and performance of this
Agreement, has duly executed and delivered this Agreement, and this Agreement,
assuming due authorization, execution and delivery by the Purchaser, constitutes
a legal, valid and binding obligation of the Seller, enforceable against it in
accordance with its terms, subject to applicable bankruptcy, reorganization,
receivership, conservatorship, insolvency, moratorium and other laws relating to
or affecting creditors' rights generally or the rights of creditors of banks and
to the general principles of equity (whether such enforceability is considered
in a proceeding in equity or at law). 

	No Conflict. The execution and delivery of this
Agreement, the acquisition or origination, as applicable, of the Revolving
Credit Loans by the Seller, the sale of the Revolving Credit Loans, the
consummation of the transactions contemplated hereby, or the fulfillment of or
compliance with the terms and conditions of this Agreement, will not conflict
with or result in a breach of any of the terms, conditions or provisions of the
Seller's organizational documents and bylaws or any legal restriction or any
agreement or instrument to which the Seller is now a party or by which it is
bound, or constitute a default or result in an acceleration under any of the
foregoing, or result in the violation of any law, rule, regulation, order,
judgment or decree to which the Seller or its property is subject, or impair the
ability of the Purchaser to realize on the Revolving Credit Loans; or impair the
value of the Revolving Credit Loans;

	Ability to Perform. The Seller can perform each
and every covenant contained in this Agreement;

	No Material Default. Neither the Seller nor any of
its Affiliates is in material default under any agreement, contract, instrument
or indenture of any nature whatsoever to which the Seller or any of its
Affiliates is a party or by which it (or any of its assets) is bound, which
default would have a material adverse effect on the ability of the Seller to
perform under this Agreement, nor, to the best of the Seller's knowledge, has
any event occurred which, with notice, lapse of time or both, would constitute a
default under any such agreement, contract, instrument or indenture and have a
material adverse effect on the ability of the Seller to perform its obligations
under this Agreement;

	Financial Statements. Seller has delivered to the
Purchaser financial statements as to its fiscal year ended December 31, 2001,
and December 31, 2002, together with any later quarterly and annual reports
relating to periods ending more than 60 days prior to the applicable Funding
Date. Except as has previously been disclosed to the Purchaser in writing:
(a) such financial statements fairly present the results of operations and
changes in financial position for such period and the financial position at the
end of such period of Seller and its subsidiaries; and (b) such financial
statements are true, correct and complete as of their respective dates and have
been prepared in accordance with generally accepted accounting principles
consistently applied throughout the periods involved, except as set forth in the
notes thereto;

	No Change in Business. There has been no change in
the business, operations, financial condition, properties or assets of the
Seller since the date of its financial statements, that would have a material
adverse effect on the ability of the Seller to perform its obligations under
this Agreement;

	No Litigation Pending. There is no action, suit,
proceeding or investigation pending or, to the best of the Seller's knowledge,
threatened, against the Seller, which, either in any one instance or in the
aggregate, if determined adversely to the Seller would adversely affect the sale
of the Revolving Credit Loans to the Purchaser or the execution, delivery or
enforceability of this Agreement or any of the Revolving Credit Loans or result
in any material liability of the Seller, or draw into question the validity of
this Agreement, or have a material adverse effect on the financial condition of
the Seller, or would be likely to impair materially the ability of Seller
to perform under the terms of this Agreement.

	No Consent Required. No consent, approval,
authorization or order of any court or governmental agency or body is required
for the execution, delivery and performance by the Seller of or compliance by
the Seller with this Agreement, the delivery of the Mortgage Files to the
Purchaser, the sale of the Revolving Credit Loans to the Purchaser or the
consummation of the transactions contemplated by this Agreement or, if required,
such approval has been obtained prior to the Funding Date;

	Ordinary Course of Business. The consummation of
the transactions contemplated by this Agreement is in the ordinary course of
business of the Seller, and the transfer, assignment and conveyance of the
Mortgage Notes and the Mortgages by the Seller pursuant to this Agreement are
not subject to the bulk transfer or any similar statutory provisions in effect
in any applicable jurisdiction;

	No Broker. Seller has not, in connection with any
transaction relating to this Agreement, dealt with or engaged the services of
any broker or agent or any other person or entity which might result in or
subject the Purchaser to any claims, expenses, fees, commissions or other demand
for payment of any nature.

	No Untrue Information. Neither this Agreement nor
any statement, report or other agreement, document or instrument furnished or to
be furnished pursuant to this Agreement contains or will contain any untrue
statement of material fact or omits or will omit to state a fact necessary to
make the statements contained therein not misleading in the context in which
they were made.

	No Fraud. There was no fraud or similar occurrence
in the origination of the Revolving Credit Loans;

	Selection Procedures. The Seller has used no
selection procedures that identified the Revolving Credit Loans as being less
desirable or valuable than other comparable mortgage loans as to which the
representations and warranties described in Section 3.03 could be
made.

The representations and warranties in this Section shall
survive the execution and assignment of this Agreement and the transfer of each
Revolving Credit Loan.

	
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Section 3.02
                       Representations and Warranties of the
Servicer.

The Servicer represents, warrants and covenants to the
Purchaser that as of the Funding Date or otherwise as of such date as
specifically provided herein:

	Ability to Service. The Servicer is an
approved seller/servicer for FHLMC in good standing and is also approved by
Fannie Mae as an approved lender. Seller is a HUD/FHA Mortgagee with a Title II
approval, and a VA Prior Approval Lender. Seller has facilities, procedures and
experienced personnel necessary for the interim servicing of mortgage loans of
the same type as the Revolving Credit Loans. No event has occurred that would
make the Servicer unable to comply with FNMA or FHLMC eligibility requirements
or that would require notification to either FNMA or FHLMC;

	No Litigation Pending. There
is no action, suit, proceeding or investigation pending or, to the best of the
Servicer's knowledge, threatened, against the Servicer which, either in any one
instance or in the aggregate, if determined adversely to the Servicer would
adversely affect the ability of the Servicer to service the Revolving Credit
Loans hereunder in accordance with the terms hereof or have a material adverse
effect on the financial condition of the Servicer; and

	Collection Practices. The
collection practices used by the Servicer with respect to each Mortgage Note and
Mortgage have been in all respects legal, proper and prudent in the mortgage
servicing business. 

	Duly Organized; Good Standing; Duly Licensed and
Qualified. The Servicer (1) is a corporation duly organized, validly
existing and in good standing under the laws of the State of [STATE] and
(2) has all licenses necessary to carry on its business as now being
conducted and is licensed, qualified and in good standing in each state where a
Mortgaged Property is located if the laws of such state require licensing or
qualification in order to conduct business of the type conducted by the
Servicer, or is otherwise exempt under applicable law from such licensing or
qualification, and no demand for such licensing or qualification has been made
upon the Servicer by any state, and (3) is in compliance with the laws of
any such state to the extent necessary to ensure the enforceability of each
Revolving Credit Loan and to service the Revolving Credit Loans in accordance
with the terms of this Agreement;

	Due Authority and Binding Obligation. The Servicer
has the full power and authority to execute and deliver this Agreement and to
perform in accordance herewith; the execution, delivery and performance of this
Agreement by the Servicer and the consummation of the transactions contemplated
hereby have been duly and validly authorized; this Agreement evidences the
valid, binding and enforceable obligation of the Servicer; and all requisite
corporate action has been taken by the Servicer to make this Agreement valid and
binding upon the Servicer in accordance with its terms;

	Ordinary Course of Business. The consummation of
the transactions contemplated by this Agreement are in the ordinary course of
business of the Servicer;

	
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	No Conflicts. Neither the execution and delivery
of this Agreement, the servicing of the Revolving Credit Loans by the Servicer,
or the transactions contemplated hereby, nor the fulfillment of or compliance
with the terms and conditions of this Agreement, will conflict with or result in
a breach of any of the terms, conditions or provisions of the Servicer's
articles, charter or bylaws or any legal restriction or any agreement or
instrument to which the Servicer is now a party or by which it is bound, or
constitute a default or result in an acceleration under any of the foregoing, or
result in the violation of any law, rule, regulation, order, judgment or decree
to which the Servicer or its property is subject, or impair the ability of the
Purchaser to realize on the Revolving Credit Loans, or impair the value of the
Revolving Credit Loans;

	Approved Servicer/Ability to Service. The Servicer
is an approved seller/servicer for FHLMC in good standing and is also approved
by Fannie Mae as an approved lender. Seller is a HUD/FHA Mortgagee with a Title
II approval, and a VA Prior Approval Lender. Seller has facilities, procedures
and experienced personnel necessary for the sound, prudent interim servicing of
mortgage loans of the same type as the Revolving Credit Loans. No event has
occurred that would make the Servicer unable to comply with FNMA or FHLMC
eligibility requirements or that would require notification to either FNMA or
FHLMC; 

	Ability to Perform. The Servicer can perform each
and every covenant contained in this Agreement;

	No Litigation Pending. There is no action, suit,
proceeding or investigation pending or, to the best of the Servicer's knowledge,
threatened, against the Servicer, which, either in any one instance or in the
aggregate, if determined adversely to the Servicer would adversely affect the
sale of the Revolving Credit Loans to the Purchaser or the execution, delivery
or enforceability of this Agreement or result in any material liability of the
Servicer, or draw into question the validity of this Agreement, or have a
material adverse effect on the financial condition of the Servicer or would
be likely to impair materially the ability of the Servicer to perform under the
terms of this Agreement;

	No Consent Required. No consent, approval,
authorization or order of any court or governmental agency or body is required
for the execution, delivery and performance by the Servicer of or compliance by
the Servicer with this Agreement, or the consummation of the transactions
contemplated by this Agreement, or if required, such approval has been obtained
prior to the Funding Date;

	Collection Practices. The collection practices
used by the Servicer have been in all respects legal, proper and prudent in the
mortgage servicing business and have been in accordance with Accepted Servicing
Practices in all respects. 

	No Untrue Information. Neither this Agreement nor
any statement, report or other document furnished or to be furnished pursuant to
this Agreement by the Servicer or in connection with the transactions
contemplated hereby contains any untrue statement of a material fact or omits to
state a fact necessary to make the statement contained herein or therein not
misleading;

	Servicing File. With respect to each Revolving
Credit Loan, the Servicer is in possession of a complete Servicing
File;

	
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	No Default. Neither the Servicer nor any of its
subsidiaries is in material default under any agreement, contract, instrument or
indenture of any nature whatsoever to which the Servicer or any of its
subsidiaries is a party or by which it is bound nor has any event occurred which
with notice or lapse of time or both would constitute a material default under
any such agreement, contract, instrument or indenture and which default would
have a material adverse effect on its ability to perform its obligations under
this Agreement;

	Financial Statements. The Servicer has delivered
to the Purchaser financial statements as to its last two complete fiscal years
and any later quarter ended more than 60 days prior to the Funding Date. All
such financial statements fairly present the pertinent results of operations and
cash flows for each of such periods and the financial position at the end of
each such period of the Servicer and its subsidiaries. All such financial
statements have been prepared in accordance with generally accepted accounting
principles consistently applied throughout the periods involved, except as set
forth in the notes thereto; and

	Material Adverse Change. There has been no change
in the business, operations, financial condition, properties or assets of the
Servicer since the date of the Servicer's financial statements which would have
a material adverse effect on its ability to perform its obligations under this
Agreement; 

Section 3.03
                       Representations and Warranties as to Individual
Revolving Credit Loans.

With respect to each Revolving Credit Loan, the Seller
hereby makes the following representations and warranties to the Purchaser on
which the Purchaser specifically relies in purchasing such Revolving Credit
Loan. Such representations and warranties are made as of the applicable Funding
Date unless otherwise indicated:

(a)   Revolving Credit Loan Schedule Complete True and
Correct. Such Revolving Credit Loan complies with the terms and conditions
set forth herein, and all of the information set forth with respect thereto on
the Revolving Credit Loan Schedule is true and correct in all material
respects; 

(b)   Complete Mortgage Files. The instruments and
documents specified in Section 2.02 with respect to such Revolving
Credit Loan have been delivered to the Purchaser in compliance with the
requirements of Article II. The Seller is in possession of a Mortgage File
respecting such Revolving Credit Loan, except for such documents as have been
previously delivered to the Purchaser and all documents required hereunder to be
delivered to Purchaser after the Funding Date will be so delivered by Seller
within the time specified herein for such delivery. 

(c)   Owner of Record. The Mortgage relating to such
Revolving Credit Loan has been duly recorded or transmitted for recording in the
appropriate recording office, and the Seller is the owner of record of such
Revolving Credit Loan and the indebtedness evidenced by the related Mortgage
Note; 

(d)   Payments Current. All payments required to be made
up to and including the Funding Date for such Revolving Credit Loan under the
terms of the Mortgage Note have been made, such that such Revolving Credit Loan
is not delinquent 30 days or more on the Funding Date. There has been no
delinquency, exclusive of any period of grace, in any payment by the Mortgagor
thereunder during the twelve months preceding the Funding Date;  

	
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(e)   Consent of Senior Lienholder. With respect to each
Revolving Credit Loan that is not a first mortgage lien, either (i) no
consent for the Revolving Credit Loan is required by the holder of the Senior
Lien or (ii) such consent has been obtained and has been delivered to the
Purchaser; 

(f)   CLTV. The CLTV does not exceed 100% and any Senior
Lien encumbering the related Mortgaged Property does not have a mandatory future
advance provisions, and if any Senior Lien has a negative amortization feature,
the CLTV was determined using the maximum loan amount of such Senior
Lien. 

(g)   No Outstanding Charges. There are no delinquent
taxes, and all taxes, ground rents, water charges, sewer charges, municipal
charges, insurance premiums, assessments, including assessments payable in
future installments, or other outstanding charges affecting the Mortgaged
Property related to such Revolving Credit Loan, which previously became due and
owing in respect of the related Mortgaged Property have been paid; 

(h)   Original Terms Unmodified. The terms of the
Mortgage Note and the Mortgage related to such Revolving Credit Loan have not
been impaired, waived, altered or modified in any material respect, except as in
accordance with written instruments which are a part of the Legal Documents and
which impairment, waiver alteration or modification has been approved by the
insurer under any applicable Purchaser-Paid Mortgage Insurance Policy and title
insurance policy and is specifically set forth in the related Revolving Credit
Loan Schedule; 

(i)   No Defenses. The Mortgage Note and the Mortgage
related to such Revolving Credit Loan are not subject to any right of
rescission, set-off or defense, including the defense of usury, nor will the
operation of any of the terms of such Mortgage Note and such Mortgage, or the
exercise of any right thereunder, render such Mortgage Note or Mortgage
unenforceable, in whole or in part, or subject such Mortgage Note or Mortgage to
any right of rescission, set-off or defense, including the defense of usury and
no such right of rescission, set-off or defense has been asserted with respect
thereto;  

(j)   Hazard Insurance. As of the date of origination of
each Revolving Credit Loan, (a) all buildings upon the Mortgaged Property
related to such Revolving Credit Loan were insured by an insurer acceptable to
FNMA or FHLMC against loss by fire, hazards of extended coverage and such other
hazards as are customary in the area where such Mortgaged Property is located,
pursuant to insurance policies conforming to the requirements of
Section 5.11. All such insurance policies (collectively, the "hazard
insurance policy") contained a standard mortgagee clause naming the originator
of such Revolving Credit Loan, its successors and assigns, as mortgagee. Such
policies are the valid and binding obligations of the insurer, and all premiums
thereon, as of the date of origination, due have been paid. The related Mortgage
obligates the Mortgagor thereunder to maintain all such insurance at such
Mortgagor's cost and expense, and on such Mortgagor's failure to do so,
authorizes the holder of such Mortgage to maintain such insurance at such
Mortgagor's cost and expense and to seek reimbursement therefor from such
Mortgagor; or (b) in the case of a condominium or unit in a planned unit
development ("PUD") project that is not covered by an individual policy, the
condominium or PUD project was covered by a "master" or "blanket" policy and
there exists and is in the Servicing File a certificate of insurance showing
that the individual unit that secures the first mortgage is covered under such
policy. The insurance policy contains a standard mortgagee clause naming the
originator of such Revolving Credit Loan (and its successors and assigns), as
insured mortgagee. Such policies are the valid and binding obligations of the
insurer, and all premiums thereon have been paid. The insurance policy provides
for advance notice to the Seller or Servicer if the policy is canceled or not
renewed, or if any other change that adversely affects the Seller's interests is
made; the certificate includes the types and amounts of coverage provided,
describes any endorsements that are part of the "master" policy and would be
acceptable pursuant to the FNMA Guide; 

	
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(k)   Compliance With Applicable Laws. All requirements
of any federal, state or local laws or regulations (including but not limited to
usury, truth in lending, real estate settlement procedures, consumer credit
protection, equal credit opportunity or disclosure laws, consumer privacy, and
data security confidentiality) applicable to the origination and servicing of
such Revolving Credit Loan have at all times been complied with in all material
respects. None of the Mortgage Loans are, to the best of
the Seller's knowledge, (a) subject to, covered by or in violation of the Home
Ownership and Equity Protection Act of 1994 ("HOEPA"), (b) classified as "high
cost," "covered," "high risk home", "threshold," or "predatory" loans under any
other applicable state, federal or local law, including any predatory or abusive
lending laws (or similarly classified loans using different terminology under a
law imposing heightened scrutiny or additional legal liability for residential
mortgage loans having high interest rates, points and/or fees) or (c) in
violation of any state or local law or ordinance similar to HOEPA; provided,
however, that a Mortgage Loan may be a "covered" loan under applicable state or
local law if it has been originated pursuant to procedures consistent with those
prescribed by secondary market ratings agencies as a condition for inclusion in
securitizations rated by such agencies. No predatory or deceptive lending
practices, including but not limited to the extension of credit to the
applicable Mortgagor without regard for said Mortgagor's ability to repay the
Mortgage Loan and the extension of credit to said Mortgagor which has no
apparent benefit to said Mortgagor, were employed by the originator of the
Mortgage Loan in connection with the origination of the Mortgage Loan. Each
Mortgage Loan is in compliance with the anti-predatory lending eligibility for
purchase requirements of the FNMA Guide. No Mortgage Loan secured by owner
occupied real property or an owner occupied manufactured home located in the
State of Georgia was originated (or modified) between October 1, 2002, through
and including March 6, 2003. 

(l)   No Satisfaction of Mortgage. The Mortgage related
to such Revolving Credit Loan has not been satisfied, canceled, in whole or in
part, or rescinded, and the related Mortgaged Property has not been released
from the lien of such Mortgage, in whole or in part, nor has any instrument been
executed that would effect any such release, cancellation, subordination or
rescission; 

(m)   Valid Lien. The Mortgage related to such Revolving
Credit Loan is a valid, subsisting and enforceable perfected lien in the
priority specified on the Revolving Credit Loan Schedule on the related
Mortgaged Property, including all improvements on the related Mortgaged
Property, which Mortgaged Property is free and clear of any encumbrances and
liens having priority over the lien of the Mortgage subject only to (a) the
lien of current real estate taxes and special assessments not yet due and
payable, (b) covenants, conditions and restrictions, rights of way,
easements and other matters of the public record as of the date of recording of
such Mortgage which are (i) acceptable to mortgage lending institutions
generally, (ii) specifically referred to in the lender's title insurance
policy and do not adversely affect the market value or intended use of the
related Mortgaged Property, (c) Senior Liens, and (d) other matters to
which like properties are commonly subject which do not individually or in the
aggregate, materially interfere with the benefits of the security intended to be
provided by such Mortgage or the use, enjoyment, or market value of the related
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(n)   Validity of Documents. The Mortgage Note and the
Mortgage related to such Revolving Credit Loan and all other agreements executed
in connection with the Revolving Credit Loan are genuine and each is the legal,
valid and binding obligation of the maker thereof, enforceable in accordance
with its terms, except as such enforcement may be limited by bankruptcy,
insolvency, reorganization or other similar laws affecting the enforcement of
creditors' rights generally and general equitable principles (regardless whether
such enforcement is considered in a proceeding in equity or at law), none of
which will materially interfere with the ultimate realization by the Purchaser
of the benefits provided by the security of the Mortgage;

(o)   Valid Execution of Documents. All parties
to the Mortgage Note and the Mortgage related to such Revolving Credit Loan had
legal capacity to enter into such Revolving Credit Loan and to execute and
deliver the related Mortgage Note and the related Mortgage and the related
Mortgage Note and the related Mortgage have been duly and properly executed by
such parties; 

(p)   Full Disbursement of Proceeds. Such Revolving
Credit Loan has closed and the proceeds of any Credit Line Advances under the
Mortgage Note have been fully disbursed prior to the Funding Date; provided
that, with respect to any Revolving Credit Loan originated within the previous
120 days, alterations and repairs with respect to the related Mortgaged Property
or any part thereof may have required an escrow of funds in an amount sufficient
to pay for all outstanding work within 120 days of the origination of such
Revolving Credit Loan, and, if so, such funds are held in escrow by the Seller,
a title company or other escrow agent; and there is no requirement for future
advances thereunder, and any and all requirements as to completion of any on-
site or off-site improvements and as to disbursements of any escrow funds
therefor have been complied with. All costs, fees and expenses incurred in
making or closing the Revolving Credit Loan and the recording of the Mortgage
were paid, and the Mortgagor is not entitled to any refund of any amounts paid
or due under the Mortgage Note or Mortgage; 

(q)   Ownership. The Mortgage Note and the Mortgage
related to such Revolving Credit Loan have not been assigned, pledged or
otherwise transferred by the Seller, in whole or in part (except for a pledge of
the Mortgage Notes to Seller's warehouse lender in connection with the funding
of such Mortgage Loans), and the Seller has, and is transferring to Purchaser,
good and marketable title thereto, and the Seller is the sole owner thereof and
has full right and authority to transfer and sell such Revolving Credit Loan,
and is transferring such Revolving Credit Loan to the Purchaser free and clear
of any encumbrance, equity, lien, pledge, participation interests, rights of
first refusal or similar rights, charge, claim or security interest; 

(r)   Originator and Subsequent Mortgagee Authorized.
All parties that have had any interest in such Revolving Credit Loan, whether as
originator, mortgagee, subsequent mortgagee, assignee, pledgee or otherwise, are
(or, during the period in which they held and disposed of such interest, were)
(i) in compliance with any and all applicable licensing requirements of the laws
of the state wherein the related Mortgaged Property is located, and (ii) (A)
organized under the laws of such state, or (B) qualified to do business in such
state, or (C) federal savings and loan associations, federal savings banks, or
national banks having principal offices in such state, or (D) not doing business
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(s)   Title Insurance. Intentionally omitted; 

(t)   No Defaults. (a) There is no default, breach,
violation or event of acceleration existing under the Mortgage, the Mortgage
Note, or any other agreements, documents, or instruments related to such
Revolving Credit Loan; (b) there is no event that, with the lapse of time,
the giving of notice, or both, would constitute such a default, breach,
violation or event of acceleration; (c) the Mortgagor(s) with respect to
such Revolving Credit Loan is (1) not in default under any other Revolving
Credit Loan or (2) the subject of an Insolvency Proceeding; (d) no event of
acceleration has previously occurred, and no notice of default has been sent,
with respect to such Revolving Credit Loan; and (e) in no event has the
Seller waived any of its rights or remedies in respect of any default, breach,
violation or event of acceleration under the Mortgage, the Mortgage Note, or any
other agreements, documents, or instruments related to such Revolving Credit
Loan; 

(u)   No Mechanics' Liens. As of the date of origination
of such Revolving Credit Loan, there were no mechanics' or similar liens, or
claims that have been filed for work, labor or material (and no rights are
outstanding that under law could give rise to such lien) affecting the related
Mortgaged Property that are or may be liens prior to, or equal or coordinate
with, the lien of the related Mortgage, except for such liens as are expressly
insured against by a title insurance policy; 

(v)   Location of Improvements; No Encroachments. As of
the date of origination of such Revolving Credit Loan, all improvements that
were considered in determining the Appraised Value of the related Mortgaged
Property lay wholly within the boundaries and building restriction lines of such
Mortgaged Property, and no improvements on adjoining properties encroach upon
such Mortgaged Property except as permitted under the terms of the Seller Guide
or the FNMA Guide and the FHLMC Selling Guide; no improvement located on or part
of any Mortgaged Property is in violation of any applicable zoning law or
regulation, and all inspections, licenses and certificates required to be made
or issued with respect to all occupied portions of such Mortgaged Property, and
with respect to the use and occupancy of the same, including certificates of
occupancy, have been made or obtained from the appropriate authorities; 

(w)   Origination; Payment Terms. If the interest rate
on the related Mortgage Note is adjustable, the adjustment is based on the Index
set forth on the related Revolving Credit Loan Schedule. The related Mortgage
Note is payable on the first day of each month in arrears, in accordance with
the payment terms described on the related Revolving Credit Loan
Schedule; 

(x)   Adjustments. The Mortgage Interest Rate and the
Monthly Payment with respect to each Revolving Credit Loan is adjusted in
accordance with the terms of the related Mortgage Note. All required notices of
interest rate and payment amount adjustments have been sent to the Mortgagor on
a timely basis and the computations of such adjustments were properly
calculated. Installments of interest on the Revolving Credit Loan are subject to
change due to the adjustments to the Mortgage Interest Rate on each Interest
Adjustment Date, with interest calculated and payable in arrears. All Mortgage
Interest Rate adjustments have been made in strict compliance with state and
federal law and the terms of the related Mortgage Note. Any interest required to
be paid in accordance with state and local law has been properly paid and
credited. The related Mortgage Note does not provide for negative amortization,
limits in the amount of monthly payments or a conversion feature, the Mortgage
Interest Rate is subject to adjustment on each Interest Adjustment Date equal to
the sum of the Index plus the applicable Margin, subject to rounding, the
Periodic Rate Cap and the Lifetime Rate Cap on each Interest Adjustment
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(y)   Due On Sale. Except as noted otherwise on the
Revolving Credit Loan Schedule, the related Mortgage contains the usual and
customary "due-on-sale" clause or other similar provision for the acceleration
of the payment of the Unpaid Principal Balance of such Revolving Credit Loan if
the related Mortgaged Property or any interest therein is sold or transferred
without the prior consent of the mortgagee thereunder; 

(z)   Mortgaged Property Undamaged; No Condemnation. The
related Mortgaged Property is free of material damage and waste that would
affect materially and adversely the value or marketability of such Mortgaged
Property and there is no proceeding pending or threatened for the total or
partial condemnation thereof; 

(aa)   Customary and Enforceable Provisions. The related
Mortgage contains customary and enforceable provisions that render the rights
and remedies of the holder thereof adequate for the realization against the
related Mortgaged Property of the benefits of the security provided thereby,
including, (a) in the case of a Mortgage designated as a deed of trust, by
trustee's sale, and (b) otherwise by judicial foreclosure. There is no homestead
or other exemption available to the Mortgagor which would interfere with the
right to sell the related Mortgaged Property at a trustee's sale or the right to
foreclose the Mortgage; 

(bb)   Conformance With Underwriting Standards. Such
Revolving Credit Loan was underwritten in accordance with the Seller Guide,
without regard to any exception policy of Seller, aside from such exceptions as
are fully documented in the related Mortgage File;  

(cc)   Appraisal. The Mortgage File contains an appraisal
of the related Mortgaged Property on forms and with riders approved by FNMA and
FHLMC, signed prior to the approval of such Revolving Credit Loan application by
an appraiser, duly appointed by the originator of such Revolving Credit Loan,
who had no interest, direct or indirect, in the Mortgaged Property, or in any
loan made on the security thereof and whose compensation is not affected by the
approval or disapproval of such Revolving Credit Loan and who met the minimum
qualifications of FNMA and FHLMC for appraisers. Each appraisal of the Revolving
Credit Loan was made in accordance with the relevant provisions of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989; Notwithstanding the
previous two sentences, in accordance with the Seller Guide, the Mortgage File
may contain, in lieu of an appraisal, a valuation based upon an alternative
collateral assessment tool, including, but not limited to, an AVM, broker's
price opinion, HUD-1 Settlement Statement, Form 2005 or Form 1004; 

(dd)   Deeds of Trust. If the related Mortgage
constitutes a deed of trust, then a trustee, duly qualified under applicable law
to serve as such, has been properly designated and currently so serves and is
named in such Mortgage, and no fees or expenses are or will become payable by
the Purchaser to the trustee under such deed of trust, except in connection with
a trustee's sale after default by the related Mortgagor, but only from the
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(ee)   LTV;. As of the date of origination, the Combined
Loan-to-Value Ratio of such Revolving Credit Loan is as specified in the
applicable Revolving Credit Loan Schedule; 

(ff)   Occupancy. As of the date of origination of such
Revolving Credit Loan, the related Mortgaged Property is lawfully occupied under
applicable law and all inspections, licenses and certificates required to be
made or issued with respect to all occupied portions of the Mortgaged Property
and, with respect to the use and occupancy of the same, including but not
limited to certificates of occupancy, have been made or obtained from the
appropriate authorities; 

(gg)   Supervision and Examination by a Federal or State
Authority. Each Revolving Credit Loan either was closed in the name of an
entity that is either a savings and loan association, a savings bank, a
commercial bank, credit union, insurance company or an institution which is
licensed, supervised and examined by a federal or state authority, or a
mortgagee approved by the Secretary of Housing and Urban Development pursuant to
Sections 203 and 211 of the National Housing Act (a "HUD Approved
Mortgagee"), and was so at the time such Revolving Credit Loan was originated
(Seller or such other entity, the "Originator") and such Revolving Credit Loan
met the Originator's underwriting criteria at the time of origination and was
originated in accordance with the Originator's policies and procedures. 

(hh)   Adjustments. All of the terms of the related
Mortgage Note pertaining to interest rate adjustments, payment adjustments and
adjustments of the outstanding principal balance, if any, are enforceable and
such adjustments will not affect the priority of the lien of the related
Mortgage; all such adjustments on such Revolving Credit Loan have been made
properly and in accordance with the provisions of such Revolving Credit Loan and
applicable law; 

(ii)   Insolvency Proceedings; Soldiers' and Sailors' Relief
Act. The related Mortgagor (1) is not the subject of any Insolvency
Proceeding; and (2) the Revolving Credit Loan has not been modified as a
result of the application of, and no Mortgagor has requested any relief allowed
to such Mortgagor under, the Soldiers' and Sailors' Civil Relief Act of 1940 as
amended or any similar law or regulation; 

(jj)   FNMA/FHLMC Documents. Such Revolving Credit Loan
was closed on (i) standard FNMA or FHLMC documents or on such documents
otherwise acceptable to them or (ii) such documents otherwise acceptable to the
Purchaser; 

(kk)   Payments. No Revolving Credit Loan contains
provisions pursuant to which Monthly Payments are (a) paid or partially
paid with funds deposited in any separate account established by the Seller, the
Mortgagor, or anyone on behalf of the Mortgagor, (b) paid by any source
other than the Mortgagor or (c) contains any other similar provisions which
may constitute a "buydown" provision. The Revolving Credit Loan is not a
graduated payment mortgage loan and the Revolving Credit Loan does not have a
shared appreciation or other contingent interest feature; 

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

(mm)   No Advances. The Seller has not advanced funds or
received any advance of funds by a party other than the Mortgagor, directly or
indirectly, for the payment of any amount required to be paid by the Mortgagor
under the related Revolving Credit Loan; 

	
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(nn)   Balloon Loans. Unless otherwise disclosed in the
Offering Materials or the Revolving Credit Loan Schedule, no Revolving Credit
Loan has a balloon payment feature. With respect to any Revolving Credit Loan
with a balloon payment feature, the Mortgage Note is payable in Monthly Payments
based on a thirty year amortization schedule and has a final Monthly Payment
substantially greater than the proceeding Monthly Payment which is sufficient to
amortize the remaining principal balance of the Revolving Credit Loan; 

(oo)   Condominium Units/PUDs. If the residential
dwelling on the Mortgaged Property is a condominium unit or a unit in a planned
unit development (other than a de minimis planned unit development) such
condominium or planned unit development project meets the eligibility
requirements of the Seller Guide; 

(pp)   HOEPA. No Revolving Credit Loan is subject to the
provisions of the Homeownership and Equity Protection Act of 1994; 

(qq)   No Construction Loans. No Revolving Credit Loan
was made in connection with (a) the construction or rehabilitation of a
Mortgaged Property or (b) facilitating the sale of a Mortgaged Property
that had been acquired by the Seller by foreclosure or deed in lieu of
foreclosure; 

(rr)   No Adverse Conditions. The Seller has no knowledge
of any circumstances or conditions with respect to the Revolving Credit Loan,
the Mortgage Property, the Mortgagor or the Mortgagor's credit standing that can
reasonably be expected to cause private institutional investors to regard the
Revolving Credit Loan to be an unacceptable investment, cause the Revolving
Credit Loan to become delinquent, or adversely affect the value or marketability
of the Revolving Credit Loan; 

(ss)   Simple Daily Interest. Interest on each Revolving
Credit Loan is calculated on the simple interest method upon the average daily
principal balance of Credit Line Advances outstanding during each Due Period,
the actual number of days in such Due Period, and a 365-day year; 

(tt)   Environmental Laws. The Mortgaged Property is in
material compliance with all applicable environmental laws pertaining to
environmental hazards including, without limitation, asbestos, and neither the
Seller nor, to the Seller's knowledge, the related Mortgagor, has received any
notice of any violation or potential violation of such law;  

(uu)   No Negative Amortization. No Revolving Credit Loan
is subject to negative amortization; 

(vv)   Mortgagor Disclosure Statement. The Mortgagor has
executed a statement to the effect that the Mortgagor has received all
disclosure materials required by applicable law with respect to the making of
conventional mortgage loans and the Mortgage File includes such
statements; 

(ww)   The Collateral. The related Mortgage Note is not
and has not been secured by any collateral except the lien of the corresponding
Mortgage and the security interest of any applicable security agreement or
chattel mortgage; 

	
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(xx)   Monthly Installments; Complete Amortization. The
related Mortgage Note is payable in monthly installments (A) of interest only
during the 10-year period beginning on the date of the Mortgage Note, with a
balloon payment due at the end of the 10-year period; 

(yy)   One- To Four-Family Residential Property. The
related Mortgaged Property consists of a single parcel of real property with a
residential dwelling erected thereon which is of a type in accordance the
characteristics set forth in the Seller Guide;  

(zz)   No Commercial Purposes. The Mortgaged Property is
not used for commercial purposes nor is it a commercial/residential mixed-use
property; 

(aaa)   Full Documentation. The Revolving Credit Loan
documentation complies with the Seller Guide; 

(bbb)   No Impairment of Insurance Coverage. No action,
error, omission, misrepresentation, negligence, fraud or similar occurrence in
respect of any Revolving Credit Loan has taken place on the part of any Person
(including without limitation the Mortgagor, the appraiser, any builder or
developer or any party involved in the origination of the Revolving Credit Loan)
or in the application for any insurance relating to such Revolving Credit Loan
that might result in a failure or impairment of full and timely coverage under
any insurance policy required to be obtained for the Revolving Credit
Loan; 

(ccc)   Collection Practices. The origination and
collection practices used with respect to the Revolving Credit Loan have been in
accordance with Accepted Servicing Practices, and have been in all respects
legal and proper; 

(ddd)   No Graduated Payments or Contingent Interests. The
Revolving Credit Loan is not a graduated payment mortgage loan and the Revolving
Credit Loan does not have a shared appreciation or other contingent interest
feature; 

(eee)   Environmental Matters. No Mortgaged Property has
been used for the storage, treatment or disposal of Hazardous Substances; no
Hazardous Substances are present in, on or below any Mortgaged Property in such
a manner or concentration as to violate any law or regulation; and, no Mortgaged
Property, by itself or as part of any other property, has been identified by any
government agency as the site of a "release," within the meaning of CERCLA or
RCRA, of a Hazardous Substance; 

(fff)   Conversions. The Mortgage and Mortgage Note do not
contain any provision permitting or requiring conversion from an adjustable
interest rate to a fixed interest rate or from a fixed interest rate to an
adjustable interest rate; 

(ggg)   Servicing. The Revolving Credit Loan has been
serviced in accordance with the terms of the Mortgage and Mortgage
Note; 

(hhh)   No Blocked or Otherwise Prohibited Activity. (a)
No Revolving Credit Loan or any related Mortgagor was or is (or would be if such
Revolving Credit Loan was originated on the Funding Date) subject to or in
violation of the Patriot Act or of the stated prohibitions of Executive
Order 13224; and (b) no Revolving Credit Loan involves a person (as
such term is defined in such Executive Order) identified as a Specially
Designated National ("SDN") or any other similar designation by the Office of
Foreign Asset Control or any other federal agency with similar charge or
jurisdiction. 

	
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Section 3.04
                           
                       Repurchase and
Substitution.

	It is understood and agreed that the representations
and warranties set forth in Sections 3.01, 3.02 and 3.03 shall inure
to the benefit of the Purchaser and Purchaser's successors, assignees or
transferees, notwithstanding any restrictive or qualified endorsement on any
Mortgage Note or Assignment or the examination of any Mortgage File.

	Upon discovery by either of the Seller or the Purchaser
of a breach of any of the representations and warranties contained in
Sections 3.01, 3.02 and 3.03 that materially and adversely affects
the interest of the Purchaser (or that materially and adversely affects the
interests of the Purchaser in the related Revolving Credit Loan, in the case of
a representation or warranty relating to a particular Revolving Credit Loan),
the party discovering such breach shall give prompt written notice to the other.

	Unless Purchaser has granted a greater period of time to
cure as set forth in Section 2.04, the Seller shall have a period of 60 days
from the earlier of either discovery by or receipt of written notice from the
Purchaser to the Seller of any breach of any of the representations and
warranties contained in Sections 3.01, 3.02 or 3.03 that materially
and adversely affects the interest of the Purchaser (or that materially and
adversely affects the interests of the Purchaser in the related Revolving Credit
Loan, in the case of a representation or warranty relating to a particular
Revolving Credit Loan) within which to correct or cure such breach (each, a
"Defective Revolving Credit Loan"; provided that "Defective Revolving Credit
Loan" shall also include (a) any Revolving Credit Loan treated or
designated as such in accordance with Section 2.04 and (b) any
Revolving Credit Loan regarding which the Mortgagor fails to make the first
regularly scheduled payment of principal and interest due to Purchaser hereunder
within 30 days of the date upon which such Monthly Payment initially became due,
provided further that it is hereby acknowledged by the parties hereto that there
shall be no cure period for such defects. 

Seller hereby covenants and agrees with respect to each
Revolving Credit Loan conveyed by it that, if any breach relating thereto cannot
be corrected or cured within the applicable cure period or such additional time,
if any, as is granted by the Purchaser, then Seller shall, at the direction of
the Purchaser, repurchase the Defective Revolving Credit Loan at the applicable
Repurchase Price. Notwithstanding anything to the contrary contained herein, if
the first regularly scheduled payment of principal and interest due to Purchaser
hereunder with respect to any Revolving Credit Loan has been delinquent more
than 30 days, the Purchaser may, by written notice to the Seller, require that
the Seller repurchase the related Revolving Credit Loan at the Repurchase Price.
However, if the Seller provides evidence that the delinquency was due to a
servicing setup error, no repurchase shall be required. Within 10 Business Days
following the delivery of any such written notice from the Purchaser, the Seller
shall repurchase the specified Revolving Credit Loan by paying the Repurchase
Price therefor by wire transfer of immediately available funds directly to the
Purchaser's Account.

	Substitution. Notwithstanding the previous
paragraph, the Seller may, at its option and assuming that Seller has a
Qualified Substitute Revolving Credit Loan or Loans, rather than repurchase the
Revolving Credit Loan as provided above, remove such Revolving Credit Loan
("Deleted Revolving Credit Loan") and substitute in its place a Qualified
Substitute Revolving Credit Loan or Loans. If the Seller has no Qualified
Substitute Revolving Credit Loan, it shall repurchase the Defective Revolving
Credit Loan. 

	
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	As to any Deleted Revolving Credit Loan for which the
Seller substitutes a Qualified Substitute Revolving Credit Loan or Loans, the
Seller shall effect such substitution by delivering to the Purchaser or its
designee for such Qualified Substitute Revolving Credit Loan or Loans the Legal
Documents as are required by Section 2. Upon such substitution, such
Qualified Substitute Revolving Credit Loan or Loans shall be subject to the
terms of this Agreement in all respects, and the Seller shall be deemed to have
made with respect to such Qualified Substitute Revolving Credit Loan or Loans,
as of the date of substitution, the covenants, representations and warranties
set forth in Sections 3.01, 3.02 and 3.03. 

	For any month in which the Seller substitutes one or more
Qualified Substitute Revolving Credit Loans for one or more Deleted Revolving
Credit Loans, the Seller will determine the amount (if any) by which the
aggregate principal balance of all such Qualified Substitute Revolving Credit
Loans as of the date of substitution (after application of scheduled principal
payments due in the month of substitution which have been received or as to
which an advance has been made) is less than the aggregate outstanding principal
balance of all such Deleted Revolving Credit Loans. The amount of such shortfall
shall be paid by the Seller on the date of such substitution by wire transfer of
immediately available funds directly to the Purchaser's Account. If the amount
of the aggregate principal balance of all such Qualified Substitute Revolving
Credit Loans as of the date of substitution (after application of scheduled
principal payments due in the month of substitution which have been received or
as to which an advance has been made) is greater than the aggregate outstanding
principal balance of all such Deleted Revolving Credit Loans, the amount of such
overage shall be credited to the Seller on the date of such substitution by wire
transfer of immediately available funds directly to the Purchaser's
Account.

	Any repurchase of a Defective Revolving Credit Loan
required hereunder shall be accomplished by payment of the applicable Repurchase
Price within 3 Business Days of the expiration of the applicable time period
referred to above in paragraph 3.04(c) by wire transfer of immediately
available funds directly to the Purchaser's Account. It is understood and agreed
that the obligations of a Seller (a) set forth in
Section 3.04(c) to cure any breach of Seller's representations and
warranties contained in Sections 3.01, 3.02 and 3.03 or to
repurchase the Defective Revolving Credit Loan(s) and (b) set forth in
Section 5.01 to indemnify the Purchaser in connection with any
breach of a Seller's representations and warranties contained in Sections
3.01, 3.02 and 3.03 shall constitute the sole remedies of the Purchaser
respecting a breach of such representations and warranties.

	Intentionally omitted.

	
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Section 3.05
                  Additional Covenants of Seller and
Servicer

	Cooperation with Securitization of Revolving Credit
Loans. Without incurring undue effort or any
cost except the Servicer's overhead or employees' salaries, Servicer shall take
reasonable steps to assist the Purchaser, if the Purchaser so requests by 30
days' advance written notice to the Servicer, in re-selling the Revolving Credit
Loans in a whole loan sale or in securitizing the Revolving Credit Loans and
selling undivided interests in such Revolving Credit Loans in a public offering
or private placement or selling participating interests in such Revolving Credit
Loans, which steps may include, (a) providing any information relating to
the Revolving Credit Loans reasonably necessary to assist in the preparation of
any disclosure documents, (b) providing information relating to
delinquencies and defaults with respect to the Servicer's servicing portfolio
(or such portion thereof as is similar to the Revolving Credit Loans),
(c) entering into any other servicing, custodial or other similar
agreements, that are consistent with the provisions of this Agreement, and which
contain such provisions as are customary in securitizations rated "AAA"
(including a securitization involving a REMIC) (a "Securitization") and
(d) provide such opinions of counsel as are customary in such transactions,
provided, however, that any opinion of outside counsel shall be provided at
Purchaser's expense. In connection with such a Securitization, the Purchaser may
be required to engage a master servicer or trustee to determine the allocation
of payments to and make remittances to the certificateholders, at the
Purchaser's sole cost and expense. In the event that a master servicer or
trustee is requested by the Purchaser to determine the allocation of payments
and to make remittances to the certificateholders, the Servicer agrees to
service the Revolving Credit Loans in accordance with the reasonable and
customary requirements of such Securitization, which may include the Servicer's
acting as a subservicer in a master servicing arrangement. With respect to the
then owners of the Revolving Credit Loans, the Servicer shall thereafter deal
solely with such master servicer or trustee, as the case may be with respect to
such Revolving Credit Loans which are subject to the Securitization and shall
not be required to deal with any other party with respect to such Revolving
Credit Loans. The cost of such securitization shall be borne by the Purchaser,
other than the Servicer's overhead or employees' salaries. In connection with
any whole loan sale or securitization contemplated by this paragraph, to the
extent the Servicer is required to materially change the manner in which it is
servicing the Revolving Credit Loans (including but not limited to, for example,
servicing the Revolving Credit Loans on a "scheduled/scheduled" basis) the
Servicer shall be entitled to a Servicing Fee for such Revolving Credit Loans
calculated at a higher Servicing Fee Rate as mutually and reasonably agreed to
by the Servicer and the Purchaser.

	Officer's Certificate of
Seller. The Seller shall deliver to the Purchaser an
Officer's Certificate in the form attached hereto as Exhibit 9 on the
initial Funding Date and upon Purchaser's reasonable request
thereafter.

	Non-
solicitation. The Seller agrees that it shall not solicit any Mortgagors (in
writing or otherwise) to refinance any of the Revolving Credit Loans;
provided that mass advertising or nationwide or regional mailings (such
as placing advertisements on television, on radio, in magazines or in newspapers
or including messages in billing statements) that are not directed towards the
Mortgagors shall not constitute solicitation and shall not violate this
covenant. In the event that any Revolving Credit Loan is prepaid in full at any
time within the first twelve (12) months from the related Funding Date as a
result of a new loan originated by the Seller, then the Seller shall refund the
entire premium described in Section 3.05(e), without adjustment for the schedule
contained in Section 3.05(e). Seller shall cooperate with Buyer in identifying
any Revolving Credit Loan described in the prior sentence. 

	
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	Privacy. Seller agrees and acknowledges that as to all
nonpublic personal information received or obtained by it with respect to any
Mortgagor: (a) such information has been held by Seller in accordance with
all applicable law, including but not limited to the privacy provisions of the
Gramm-Leach Bliley Act; and (b) Seller is prohibited from disclosing or
using any such information other than to carry out the express provisions of
this Agreement, or as otherwise permitted by applicable
law.

(e) Refund of Premium. In the event that the Purchase
Price Percentage included a premium payment to the Seller, the Mortgagor prepays
the Loan in full and terminates the Revolving Credit Loan within the first [**]
months from the related Funding Date, and either the Note does not provide for a
prepayment penalty or the prepayment penalty is unenforceable or insufficient to
cover the premium paid by Purchaser to Seller, Seller shall refund to Purchaser
all or a portion of the uncovered premium according to the following schedule,
provided that Purchaser notifies Seller of such prepayment promptly, but in any
event no later than eighteen (18) months following the Funding Date:

[**]
 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER AND CONDITIONS
PRECEDENT TO FUNDING

Section 4.01
                       Representations and Warranties of
Purchaser.

The Purchaser represents, warrants and covenants to the
Seller that as of each Funding Date or as of such date specifically provided
herein:

	Due Organization. The Purchaser is an entity duly
organized, validly existing and in good standing under the laws of its
jurisdiction of organization, and has all licenses necessary to carry on its
business now being conducted and is licensed, qualified and in good standing
under the laws of each state where a Mortgaged Property is located or is
otherwise exempt under applicable law from such qualification or is otherwise
not required under applicable law to effect such qualification; Purchaser has
all licenses necessary to be the owner of and lender under the Revolving Credit
Loans; and no demand for such qualification has been made upon the Purchaser by
any state having jurisdiction and in any event the Purchaser is or will be in
compliance with the laws of any such state to the extent necessary to enforce
each Revolving Credit Loan.

	Due Authority. The Purchaser had the full power
and authority and legal right to acquire the Revolving Credit Loans that it
acquired. The Purchaser has the full power and authority to hold each Revolving
Credit Loan, to sell each Revolving Credit Loan and to execute, deliver and
perform, and to enter into and consummate, all transactions contemplated by this
Agreement. The Purchaser has duly authorized the execution, delivery and
performance of this Agreement, has duly executed and delivered this Agreement,
and this Agreement, assuming due authorization, execution and delivery by the
Seller, constitutes a legal, valid and binding obligation of the Purchaser,
enforceable against it in accordance with its terms, subject to applicable
bankruptcy, reorganization, receivership, conservatorship, insolvency,
moratorium and other laws relating to or affecting creditors' rights generally
or the rights of creditors of banks and to the general principles of equity
(whether such enforceability is considered in a proceeding in equity or at
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	No Conflict. None of the execution and delivery of
this Agreement, the acquisition or origination, as applicable, of the Revolving
Credit Loans by the Purchaser, the purchase of the Revolving Credit Loans, the
consummation of the transactions contemplated hereby, or the fulfillment of or
compliance with the terms and conditions of this Agreement, will conflict with
or result in a breach of any of the terms, conditions or provisions of the
Purchaser's organizational documents and bylaws or any legal restriction or any
agreement or instrument to which the Purchaser is now a party or by which it is
bound, or constitute a default or result in an acceleration under any of the
foregoing, or result in the violation of any law, rule, regulation, order,
judgment or decree to which the Purchaser or its property is subject, or impair
the ability of the Purchaser to realize on the Revolving Credit Loans, or impair
the value of the Revolving Credit Loans;

	Ability to Perform. The Purchaser does not
believe, nor does it have any reason or cause to believe, that it cannot perform
each and every covenant contained in this Agreement;

	No Material Default. The Purchaser is not in
material default under any agreement, contract, instrument or indenture of any
nature whatsoever to which the Purchaser is a party or by which it (or any of
its assets) is bound, which default would have a material adverse effect on the
ability of the Purchaser to perform under this Agreement, nor, to the best of
the Purchaser's knowledge, has any event occurred which, with notice, lapse of
time or both would constitute a default under any such agreement, contract,
instrument or indenture and have a material adverse effect on the ability of the
Purchaser to perform its obligations under this Agreement;

	No Change in Business. There has been no change in
the business, operations, financial condition, properties or assets of the
Purchaser since the date of the Purchaser's financial statements that would have
a material adverse effect on the ability of the Purchaser to perform its
obligations under this Agreement; 

	Litigation Pending. There is no action, suit,
proceeding or investigation pending or, to the best of the Purchaser's
knowledge, threatened, against the Purchaser, which, either in any one instance
or in the aggregate, if determined adversely to the Purchaser would adversely
affect the purchase of the Revolving Credit Loans or the execution, delivery or
enforceability of this Agreement or result in any material liability of the
Purchaser, or draw into question the validity of this Agreement, or the
Revolving Credit Loans or have a material adverse effect on the financial
condition of the Purchaser;

	Broker. The Purchaser has not dealt with any
broker or agent or anyone else who might be entitled to a fee or commission in
connection with this transaction.

	No Consent Required. No consent, approval,
authorization or order of any court or governmental agency or body is required
for the execution, delivery and performance by the Purchaser of or compliance by
the Purchaser with this Agreement, the purchase of the Revolving Credit Loans
from the Seller or the consummation of the transactions contemplated by this
Agreement or, if required, such approval has been obtained prior to the Funding
Date; 

	Ordinary Course of Business. The consummation of
the transactions contemplated by this Agreement is in the ordinary course of
business of the Purchaser;

	
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	No Untrue Information. Neither this Agreement nor
any statement, report or other agreement, document or instrument furnished or to
be furnished pursuant to this Agreement contains or will contain any materially
untrue statement of fact or omits or will omit to state a fact necessary to make
the statements contained therein not misleading; 

	Privacy. Purchaser agrees and acknowledges that as
to all nonpublic personal information received or obtained by it with respect to
any related mortgagor: (a) such information is and shall be held by
Purchaser in accordance with all applicable law, including but not limited to
the privacy provisions of the Gramm-Leach Bliley Act; (b) such information
is in connection with a proposed or actual secondary market sale related to a
transaction of the Mortgagor for purposes of 16 C.F.R. 313.14(a)(3); and
(c) Purchaser is hereby prohibited from disclosing or using any such
information other than to carry out the express provisions of this Agreement, or
as otherwise permitted by applicable law; and

	Financial Statements. The Purchaser has delivered
to each Seller and the Servicer financial statements as to its fiscal year ended
December 31, 2001, and December 31, 2002, together with any later quarterly and
annual reports relating to periods ending more than 60 days prior to the
applicable Funding Date. Except as has previously been disclosed to each Seller
and the Servicer in writing: (a) such financial statements fairly present
the results of operations and changes in financial position for such period and
the financial position at the end of such period of the Purchaser and its
subsidiaries; and (b) such financial statements are true, correct and
complete as of their respective dates and have been prepared in accordance with
generally accepted accounting principles consistently applied throughout the
periods involved, except as set forth in the notes thereto.

Section 4.02
                       Conditions Precedent to
Closing.

Each purchase of Revolving Credit Loans hereunder shall
be subject to each of the following conditions:

	All of the representations and warranties of Seller under
the Seller Guide, and of Seller and Purchaser under this Agreement shall be true
and correct as of the Funding Date, and no event shall have occurred which, with
notice or the passage of time, would constitute an Event of Default under this
Agreement or under the Seller Guide;

	Purchaser or Purchaser's attorneys shall have received in
escrow, all closing documents as specified herein, in such forms as are agreed
upon and acceptable to Purchaser, duly executed by all signatories other than
Purchaser as required pursuant to the respective terms thereof;

	All other terms and conditions of this Agreement shall
have been complied with.

Subject to the foregoing conditions, Purchaser shall pay to
Seller on each Funding Date the applicable Purchase Price as provided
herein.

	
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ARTICLE V

ADMINISTRATION AND SERVICING OF MORTGAGE
LOANS

Section 5.01
                       Seller to Act
as Servicer; Servicing Standards; Additional Documents; Consent of the
Purchaser. The parties acknowledge that
Seller shall transfer the servicing of the Revolving Credit Loans, normally
within forty (40) days of the applicable Funding Date, and as such services
Revolving Credit Loans only on an interim basis. Accordingly, all references in
this Agreement to the "Servicer" shall mean Seller, but the servicing
obligations of Seller shall relate only to the period of time between the
Funding Date and the transfer of the subject Revolving Credit Loans. Any
obligations of Servicer set forth in this Agreement that logically relate to
servicing responsibilities beyond interim servicing shall not apply to
Seller.

	The Servicer, as independent contract servicer, shall
service and administer the Revolving Credit Loans and REO Property from and
after each Funding Date in accordance with the terms and provisions of the
Revolving Credit Loans, applicable law and the terms and provisions of this
Agreement for and on behalf of, and in the best interests of, the Purchaser
(without taking into account any relationship the Servicer may have with any
Mortgagor or other Person, the participation, if any, of the Servicer in any
financing provided in connection with the sale of any Mortgaged Property, or the
Servicer's obligation to advance any expenses or incur any costs in the
performance of its duties hereunder) in accordance with a standard that is not
less than the higher of (a) the same care, skill, prudence and diligence
with which it services similar assets held for its own or its Affiliates'
account, (b) the same care, skill, prudence and diligence with which it
services similar assets for third party institutional investors, and (c)
Accepted Servicing Practices, in each case giving due consideration to
Purchaser's reliance on Servicer. Subject to the foregoing standards, in
connection with such servicing and administration, the Servicer shall seek to
maximize the timely recovery of principal and interest on the Mortgage
Notes.

	To the extent consistent with Section 5.01(a)
and further subject to any express limitations set forth in this Agreement, the
Servicer (acting alone or, solely in the circumstances permitted hereunder,
acting through a subservicer) shall have full power and authority to do or cause
to be done any and all things that it may deem necessary or desirable in
connection with such servicing and administration, including the power and
authority (a) to execute and deliver, on behalf of the Purchaser, customary
consents or waivers and other instruments and documents (including estoppel
certificates), (b) to consent to transfers of any Mortgaged Property and
assumptions of the Mortgage Notes and related Mortgages, (c) to submit
claims to collect any Insurance Proceeds and Liquidation Proceeds, (d) to
consent to the application of any Insurance Proceeds or Condemnation Proceeds to
the restoration of the applicable Mortgaged Property or otherwise, (e) to
bring an action in a court of law, including an unlawful detainer action, to
enforce rights of the Purchaser with respect to any Mortgaged Property,
(f) to execute and deliver, on behalf of the Purchaser, documents relating
to the management, operation, maintenance, repair, leasing, marketing and sale
of any Mortgaged Property or any REO Property, and (g) to effectuate
foreclosure or other conversion of the ownership of the Mortgaged Property
securing any Revolving Credit Loan; provided that the Servicer shall not take
any action not provided for in this Agreement that is materially inconsistent
with or materially prejudices the interest of the Purchaser in any Revolving
Credit Loan or under this Agreement. If reasonably requested by the Servicer,
the Purchaser shall furnish the Servicer with any powers of attorney and other
documents reasonably necessary or appropriate to enable the Servicer to service
and administer the Revolving Credit Loans and the REO Properties, including
documents relating to the foreclosure, receivership, management, operation,
maintenance, repair, leasing, marketing and sale (in foreclosure or otherwise)
of any Mortgaged Property or any REO Property.

	
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Servicer, on behalf of Purchaser, shall service and
administer the Revolving Credit Loans and Mortgagor information and records in
accordance with the terms of the Revolving Credit Loan documents and the
requirements of applicable federal, state and local laws, regulations and
executive orders. Servicer, at all times during the term of this Agreement shall
service and administer the Revolving Credit Loans and Mortgagor information and
records in a commercially reasonable manner in accordance with the Gramm-Leach-
Bliley Act (together with regulations and guidelines promulgated thereunder, the
"Act"), as amended from time to time.

Servicer and Purchaser shall, in a commercially reasonable
manner, cooperate with each other to assure continuing compliance of both
parties with all amendments to the Act as applicable to servicers and investors
of the character of Servicer and Purchaser, respectively. In the event that
(i) the legal or regulatory requirements applicable to Purchaser pertaining
to Mortgagor privacy or data security are not fulfilled in any material respect
by Servicer's duties pursuant to the provisions of this Agreement, or
(ii) Servicer's servicing practices would result in a violation by the
Purchaser of regulatory requirements applicable to the Purchaser, Purchaser
shall provide written notice to Servicer. Servicer agrees to use its reasonable
best efforts to service the Revolving Credit Loans in a manner which satisfies
the requirements of Purchaser's regulators about which Purchaser informs
Servicer. 

If either party receives a complaint concerning a violation
or alleged violation of privacy rights or other notice with respect to
information sharing involving an opt out of sharing any non-public personal
information relating to the Mortgagor or any Revolving Credit Loan, then such
party shall promptly notify the other party.

	The Servicer shall, in accordance with the customary and
usual standards of practice of prudent mortgage servicers of variable rate open-
end home equity mortgage loans, approve and make disbursements of principal in
connection with Mortgagor drafts upon the Credit Line approved in connection
with each Revolving Credit Loan. The Servicer shall provide to the Mortgagors
all checks, drafts or other documentation necessary for such Mortgagors to
obtain a Credit Line Advance. On each Business Day, with respect to each Credit
Line Advance disbursed by the Servicer and reported to the Purchaser, the
Servicer shall be entitled to (i) reimbursement of the principal amount of each
Credit Line Advance disbursed by Servicer with respect to a Revolving Credit
Loan reported to the Purchaser on such date, and (ii) interest, at the Credit
Advance Rate, on the principal amount of each such Credit Line Advance from the
date such Credit Line Advance was disbursed by Servicer to but not including
such date reimbursement is received by the Servicer. In the event that the
Purchaser fails to reimburse the Servicer, within two (2) Business Days of
receipt of notice thereof, for any Credit Line Advance disbursed by the Servicer
and reported to the Purchaser, the Servicer shall be entitled to withdraw the
amount calculated in clauses (i) and (ii) of the previous sentence (including
interest to but not including the date of withdrawal) with respect to any such
Credit Advance, from the Collection Account pursuant to Section 5.05(c)
hereof.

	
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	Notwithstanding anything to the contrary contained
herein:

	the Servicer acknowledges that the Purchaser will retain
title to, and ownership of, the Revolving Credit Loans and the REO Properties
and that the Servicer does not hereby acquire any title to, security interest
in, or other rights of any kind in or to any Revolving Credit Loan or REO
Property or any portion thereof;

	the Servicer shall not file any lien or any other
encumbrance on, exercise any right of setoff against, or attach or assert any
claim in or on any Revolving Credit Loan or REO Property, unless authorized
pursuant to a judicial or administrative proceeding or a court order;

	the Servicer shall, in servicing the Revolving Credit
Loans, follow and comply with the servicing guidelines established by FNMA, and
the Servicer may waive, modify or vary any term of any Revolving Credit Loan or
consent to the postponement of strict compliance with any such term or in any
manner grant indulgence to any Mortgagor if in the Servicer's reasonable and
prudent determination such waiver, modification, postponement or indulgence is
in the best interests of the Purchaser and is consistent with the terms of this
Agreement. The Servicer may, with respect to any Specially Serviced Revolving
Credit Loan or REO Property, make Servicing Advances, without the Purchaser's
consent to the extent that each related Servicing Advance is (i) in the best
interests of the Purchaser or other owner of the Revolving Credit Loan and (ii)
is deemed to be recoverable by the Servicer. Notwithstanding anything to the
contrary herein, the Servicer shall not, without specifically notifying the
Purchaser in writing and obtaining the Purchaser's prior written consent:

	make any future advances with respect to a Revolving
Credit Loan in excess of the Credit Line with respect to such Revolving Credit
Loan, 

	permit any modification with respect to any Revolving
Credit Loan that would change the Mortgage Interest Rate, defer or forgive the
payment of principal or interest, reduce or increase the outstanding principal
balance or change the final maturity date on such Revolving Credit Loan;

	sell any Specially Serviced Revolving Credit Loan;

	principal or interest on, or permitting to be satisfied
at a discount, any Revolving Credit Loan; or 

	accept substitute or additional collateral, or release
any collateral, for a Revolving Credit Loan. 

If the Purchaser has not approved or rejected in
writing any proposed action(s) recommended by the Servicer to be taken hereunder
within 10 Business Days of the date such recommendation is made, then the
Purchaser shall be deemed to have rejected such recommended action(s) and the
Servicer shall not take any such action(s).

	
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	subject to the Purchaser's consent, when required in
accordance with paragraph (c) above, upon any modification, waiver or amendment
of any term of any Revolving Credit Loan the Servicer shall inform the Purchaser
of the date thereof and shall deliver to the Purchaser, for deposit in the
related Mortgage File, an original counterpart of the agreement relating to such
modification, waiver or amendment promptly following the execution
thereof;

	the Servicer shall remain primarily liable for the full
performance of its obligations hereunder notwithstanding any appointment by the
Servicer of a subservicer or subservicers hereunder; 

	with respect to any Revolving Credit Loan not in the
Seller's Affinity Service Program, the Purchaser may at any time and from time
to time, in its sole discretion, upon 10 Business Days written notice to the
Servicer, terminate the Servicer's servicing rights and obligations hereunder,
at no cost to Purchaser, with respect to (1) any REO Property or
(2) any Revolving Credit Loan (A) pending foreclosure or deed in lieu
thereof, (B) as to which the related obligor has filed for bankruptcy; (C) which
is 90 days or more delinquent, or (D) in accordance with the Purchaser's
internal credit classification criteria, has been classified as "doubtful" or a
"loss." The Servicer shall be entitled to reimburse itself, pursuant to
Section 5.05(d) hereof, for any unreimbursed Servicing Advances with
respect to the transfer of any REO Property or Revolving Credit Loan pursuant to
the previous sentence. Upon the effectiveness of any such termination of the
Servicer's servicing obligations with respect to any such REO Property or
Revolving Credit Loan, the Servicer shall deliver all agreements, documents, and
instruments related thereto to the Purchaser, and perform in accordance with
Sections 10 and 11 hereunder, commercially reasonable servicing transfer
practices and with applicable law;

	with respect to any Revolving Credit Loan in the Seller's
Affinity Service Program or any Revolving Credit Loan not terminated pursuant to
clause (vi) above, the Servicer may, in accordance with the servicing standard
set forth in Section 5.01(a) hereof, foreclose on any Revolving Credit
Loan (1) which is 90 days or more delinquent, or (2) as to which the related
obligor has filed for bankruptcy; or (3) in accordance with the Purchaser's
internal credit classification criteria, has been classified as "doubtful" or a
"loss." Within 5 Business Days of the foreclosure of any such Revolving Credit
Loan, the Servicer shall transfer the servicing of such Revolving Credit Loan or
REO Property to Purchaser or its designee, and the Servicer's servicing
obligations hereunder shall be terminated, at no cost to Purchaser, with respect
to any such REO Property or Revolving Credit Loan. The Servicer shall be
entitled to reimburse itself, pursuant to Section 5.05(d) hereof, for any
unreimbursed Servicing Advances with respect to the transfer of any REO Property
or Revolving Credit Loan pursuant to the previous sentence. The Servicer shall
deliver all agreements, documents, and instruments related to any Revolving
Credit Loan referred to in this paragraph to the Purchaser or its designee, and
perform in accordance with Sections 11 and 12 hereof, commercially reasonable
servicing transfer practices and with applicable law; and

	
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	the Servicer, at its discretion and in accordance with
the customary and usual standards of practice of prudent mortgage servicers of
variable rate open-end home equity mortgage loans, may perform any of the
following actions in connection with a Revolving Credit Loan:

	with the approval of the Purchaser, increase the amount
of the related Credit Line;

	terminate a dormant Revolving Credit Loan; 

	permit payments from the Mortgagor of interest only
during the period when Credit Line Advances may be made; or

	eliminate the ability of the Mortgagor to make future
drafts upon the Credit Line, or reduce the Credit Line. 

Section 5.02
                       Collection of Revolving Credit Loan
Payments.

Continuously from the date hereof until the principal and
interest on all Revolving Credit Loans are paid in full, the Servicer will
proceed diligently to collect all payments due under each Revolving Credit Loan
when the same shall become due and payable and shall, to the extent such
procedures shall be consistent with this Agreement and the terms and provisions
of any related Purchaser-Paid Mortgage Insurance Policy, follow such collection
procedures as it follows with respect to mortgage loans comparable to the
Revolving Credit Loans, which procedures shall in any event comply with the
servicing standards set forth in Section 5.01. If the Servicer
becomes aware of any failure by a Mortgagor to timely pay insurance premiums on
the related Mortgaged Property, it shall use reasonable efforts to notify the
servicer of the related first mortgage loan of such failure. 

Section 5.03
                       Reports
for Foreclosure Sales.

The Servicer shall, within five (5) Business Days
following the occurrence of any foreclosure sale with respect to any Mortgaged
Property, deliver to the Purchaser a notice of foreclosure sale substantially in
the form of Exhibit 5.03 attached hereto.

	
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Section 5.04
                       Establishment of Collection Account; Deposits in
Collection Account.

The Servicer shall segregate and hold all funds collected
and received pursuant to each Revolving Credit Loan separate and apart from any
of its own funds and general assets and shall establish and maintain one or more
Collection Accounts, in the form of time deposit or demand accounts. On or
before the Closing Date, Servicer shall establish a Collection Account (the
"Collection Account") and shall ensure that all payments subject to this
Agreement will be held solely in the Collection Account. The creation of any
Collection Account shall be evidenced by a certification in the form of
Exhibit 5.04-1 attached hereto, in the case of an account established
with the Servicer, or a letter agreement in the form of Exhibit 5.04-
2 attached hereto, in the case of an account held by a depository other than
the Servicer. In either case, a copy of such certification or letter agreement
shall be furnished to the Purchaser.

The Servicer shall deposit in the Collection Account within
two Business Days after receipt (or as otherwise required pursuant to this
Agreement in the case of clauses (g), (h) and (i) of this
Section 5.04) and retain therein the following payments and
collections received or made by it subsequent to each Funding Date, or received
by it prior to the Funding Date and allocable to a period subsequent to the
Cutoff Date, other than in respect of principal and interest on the Revolving
Credit Loans due on or before the Cutoff Date (regardless of when received):

	all payments on account of principal on the Revolving
Credit Loans;

	all payments on account of interest on the Revolving
Credit Loans less the related Servicing Fee;

	all Liquidation Proceeds;

	all REO Proceeds;

	all Insurance Proceeds, including amounts required to be
deposited pursuant to Section  5.08, other than proceeds released to
the applicable Mortgagors in accordance with the Servicer's normal servicing
procedures, the related Mortgages or applicable law;

	all Condemnation Proceeds affecting any Mortgaged
Property which are not released to a Mortgagor in accordance with the Servicer's
normal servicing procedures, the related Mortgage or applicable law;

	any amounts required to be deposited by the Servicer
pursuant to Section 5.08 in connection with the deductible clause in
any blanket hazard insurance policy, such deposit to be made from the Servicer's
own funds without reimbursement therefor;

	interest on amounts on deposit in the Collection Account
and any amounts required to be deposited by the Servicer pursuant to
Section 5.12 in connection with any losses on Permitted Investments;
and

	any amounts required to be deposited in the Collection
Account pursuant to Sections 7.01, 7.02, or otherwise pursuant to
the terms hereof.

	
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The foregoing requirements for deposit in the Collection
Account shall be exclusive, it being understood and agreed that, without
limiting the generality of the foregoing, payments in the nature of assumption
fees, to the extent permitted by Section 7.01, need not be deposited
by the Servicer in the Collection Account and shall be retained by the Servicer
as additional compensation. 

Section 5.05
                       Permitted Withdrawals from the Collection
Account.

The Servicer may, from time to time in accordance with
the provisions hereof, withdraw amounts from the Collection Account for the
following purposes (without duplication):

	to reimburse itself for unreimbursed Servicing Advances
that the Servicer has determined to be Non-Recoverable Advances as provided in
Section 6.04;

	to make payments to the Purchaser in the amounts, at the
times and in the manner provided for in Section 6.01;

	to reimburse itself for the amount of any Credit Line
Advances made by Servicer and not timely reimbursed by the Purchaser in
accordance with Section 5.01(c) hereof.

	to reimburse itself for unreimbursed Servicing Advances,
the Servicer's right to reimburse itself pursuant to this Subsection (d) with
respect to any Revolving Credit Loan being limited to related Liquidation
Proceeds, Condemnation Proceeds, Insurance Proceeds and such other amounts as
may be collected by the Servicer from the Mortgagor or otherwise relating to the
Revolving Credit Loan, it being understood that, in the case of such
reimbursement, the Servicer's right thereto shall be prior to the rights of the
Purchaser, except that, where a Seller or the Servicer is required to repurchase
(or substitute a Qualified Substitute Revolving Credit Loan for) a Revolving
Credit Loan pursuant to Sections 2.04, 3.04 and/or 7.02, the Servicer's
right to such reimbursement shall be subsequent and subordinate to the payment
to the Purchaser of the applicable Repurchase Price (or delivery of a Qualified
Substitute Revolving Credit Loan) and all other amounts required to be paid to
the Purchaser with respect to such Revolving Credit Loan;

	to pay to itself, solely out of the interest portion of
the Monthly Payment due and actually received with respect to a Revolving Credit
Loan during the period ending on the most recent Determination Date, the
Servicing Fee with respect to such Revolving Credit Loan;

	to pay to itself as additional servicing compensation (a)
any interest earned on funds in the Collection Account (all such interest to be
withdrawn monthly not later than each Remittance Date) and (b) any prepayment
penalties or premiums relating to any principal prepayments; provided
that no such amounts shall be payable as servicing compensation to the extent
they relate to a Revolving Credit Loan with respect to which a default, breach,
violation or event of acceleration exists or would exist but for the lapse of
time, the giving of notice, or both;

	to pay to itself with respect to each Revolving Credit
Loan that has been repurchased pursuant to Sections 2.04, 3.04 and/or
7.02 all amounts received thereon and not distributed as of the date on which
the related Repurchase Price is determined (except to the extent that such
amounts constitute part of the Repurchase Price to be remitted to the
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	to reimburse itself, without duplication, for the amount
of any premiums paid with respect to Purchaser-Paid Mortgage Insurance pursuant
to Section 5.06;

	to remove any amounts deposited into the Collection
Account in error; and

	to clear and terminate the Collection Account upon the
termination of this Agreement, with any funds contained therein to be
distributed in accordance with the terms of this Agreement.

On each Remittance Date, the Servicer shall withdraw all
funds from the Custodial Account except for those amounts that the Servicer is
not obligated to remit on such Remittance Date pursuant to Section 6.01.
The Servicer may use such withdrawn funds only for the purposes described in
this Section 5.05. The Servicer shall keep and maintain a separate,
detailed accounting, on a Revolving Credit Loan-by-Revolving Credit Loan basis,
for the purpose of justifying any withdrawal from the Collection Account
pursuant to this Section.

Section 5.06
                       Maintenance of
Primary Insurance Policies; Collections
Thereunder.

The Servicer shall cooperate with the Purchaser in
maintaining in full force and effect any Purchaser-Paid Mortgage Insurance
Policy, to the extent purchased by the Purchaser. Such coverage will not be
maintained after such time, if any, as such insurance is required to be released
in accordance with the provisions of applicable law including, but not limited
to, the Homeowners Protection Act of 1998. The Servicer shall not take any
action which would result in noncoverage under any applicable Purchaser-Paid
Mortgage Insurance Policy of any loss which, but for the actions of the
Servicer, would have been covered thereunder. In connection with any assumption
or substitution agreement entered into or to be entered into pursuant to
Section 7.01, the Servicer shall promptly notify the insurer under
the related Purchaser-Paid Mortgage Insurance Policy, if any, or Lender-Paid
Insurance Policy, if required, of such assumption or substitution of liability
in accordance with the terms of such policy and shall take all actions which may
be required by such insurer as a condition to the continuation of coverage under
the Purchaser-Paid Mortgage Insurance Policy.

Section 5.07
                       Transfer of
Accounts.

The Servicer may transfer the Collection Account to a
different depository institution from time to time; provided that (i) no
such transfer shall be made unless all certifications or letter agreements
required under Sections 5.04 and 5.06 have been executed and
delivered by the parties thereto; and (ii) concurrently upon any such
transfer, the Servicer shall give written notice thereof to the Purchaser.
Notwithstanding anything to the contrary contained herein, the Collection
Account shall at all times constitute an Eligible Account.

Section 5.08
                       Maintenance of
Mortgage Impairment Insurance Policy.

The Servicer shall obtain and maintain a blanket policy
issued by an issuer that has a Best's Key rating of A:V insuring against hazard
losses on all of the Revolving Credit Loans. In connection with its activities
as servicer of the Revolving Credit Loans, the Servicer agrees to prepare and
present, on behalf of the Purchaser, claims under any blanket policy in
connection with any hazard losses on the Revolving Credit Loans in a timely
fashion in accordance with the terms of such policy. Upon request of the
Purchaser, the Servicer shall cause to be delivered to the Purchaser a certified
true copy of such policy and a statement from the insurer thereunder that such
policy shall in no event be terminated or materially modified without 30 days'
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Section 5.09
                       Fidelity
Bond; Errors and Omissions Insurance.

The Servicer shall maintain, at its own expense, a
blanket fidelity bond and an errors and omissions insurance policy, with broad
coverage with responsible companies that would meet the requirements of FNMA and
FHLMC on all officers, employees or other Persons acting in any capacity with
regard to the Revolving Credit Loan to handle funds, money, documents and papers
relating to the Revolving Credit Loans. The Fidelity Bond and errors and
omissions insurance shall be in the form of the "Mortgage Banker's Blanket Bond"
and shall protect and insure the Servicer against losses, including losses
arising by virtue of any Revolving Credit Loan not being satisfied in accordance
with the procedures set forth in Section  7.02 and/or losses
resulting from or arising in connection with forgery, theft, embezzlement,
fraud, errors and omissions and negligent acts of or by such Persons. Such
Fidelity Bond shall also protect and insure the Servicer against losses in
connection with the failure to maintain any insurance policies required pursuant
to this Agreement and the release or satisfaction of a Revolving Credit Loan
without having obtained payment in full of the indebtedness secured thereby. No
provision of this Section 5.09 requiring the Fidelity Bond and
errors and omissions insurance shall diminish or relieve the Servicer from its
duties and obligations as set forth in this Agreement. The minimum coverage
under any such bond and insurance policy shall be at least equal to the
corresponding amounts required by FNMA in the FNMA Guide and by FHLMC in the
FHLMC Servicing Guide. The Servicer shall cause to be delivered to the Purchaser
on or before the Funding Date: (i)  a certified true copy of the Fidelity
Bond and insurance policy; (ii) a written statement from the surety and the
insurer that such Fidelity Bond or insurance policy shall in no event be
terminated or materially modified without 30 days' prior written notice to the
Purchaser; and (iii) written evidence reasonably satisfactory to the
Purchaser that such Fidelity Bond or insurance policy provides that the
Purchaser is a beneficiary or loss payee thereunder.

Section 5.10
                       Management of REO
Properties.

If title to any Mortgaged Property is acquired in
foreclosure or by deed in lieu of foreclosure (each, an "REO Property"), the
deed or certificate of sale shall be taken in the name of the Purchaser or the
Person (which may be the Servicer for the benefit of the Purchaser) designated
by the Purchaser, or in the event the Purchaser notifies the Servicer that the
Purchaser or such Person is not authorized or permitted to hold title to real
property in the state where the REO Property is located, or would be adversely
affected under the "doing business" or tax laws of such state by so holding
title, the deed or certificate of sale shall be taken in the name of such Person
or Persons as shall be consistent with an opinion of counsel obtained by the
Purchaser from an attorney duly licensed to practice law in the state where the
REO Property is located. The Servicer shall have no further obligation under
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Section 5.11
                       Realization Upon
Specially Serviced Revolving Credit
Loans.

Subject to Section 5.01(d), the Servicer
shall foreclose upon or otherwise comparably convert the ownership of properties
securing such of the Specially Serviced Revolving Credit Loans as come into and
continue in default and as to which (a) in the reasonable judgment of the
Servicer, no satisfactory arrangements can, in accordance with prudent lending
practices, be made for collection of delinquent payments pursuant to
Section 5.01 and (b) such foreclosure or other conversion is
otherwise in accordance with Section 5.01. The Servicer shall not be
required to expend its own funds in connection with any foreclosure or towards
the restoration, repair, protection or maintenance of any property unless it
shall determine that such expenses will be recoverable to it as Servicing
Advances either through Liquidation Proceeds or through Insurance Proceeds (in
accordance with Section 5.05) or from any other source relating to
the Specially Serviced Revolving Credit Loan. The Servicer shall be required to
advance funds for all other costs and expenses incurred by it in any such
foreclosure proceedings (other than funds necessary to pay of the first lien, if
any, on the related Mortgaged Property); provided that it shall be
entitled to reimbursement thereof from the proceeds of liquidation of the
related Mortgaged Property, as contemplated by Section 5.05.

Upon any Mortgaged Property becoming an REO Property, the
Servicer shall promptly notify the Purchaser thereof, specifying the date on
which such Mortgaged Property became an REO Property and the Servicer shall
proceed in accordance with the provisions of Section 5.10 hereof. 

Notwithstanding anything to the contrary contained herein,
the Purchaser shall not, and the Servicer shall not on the Purchaser's behalf,
acquire any real property (or personal property incident to such real property)
except in connection with a default or a default that is imminent on a Revolving
Credit Loan. If the Purchaser acquires any real property (or personal property
incident to such real property) in connection with such a default, then such
property shall be disposed of by the Servicer in accordance with this
Section  as soon as possible but in no event later than 3 years after its
acquisition by the Servicer on behalf of the Purchaser, unless the Servicer
obtains, at the expense of the Purchaser, in a timely fashion an extension from
the Internal Revenue Service for an additional specified period.

Any recommendation of the Servicer to foreclose on a
defaulted Revolving Credit Loan shall be subject to a determination by the
Servicer that the proceeds of such foreclosure would exceed the costs and
expenses of bringing such a proceeding. 

If, in the exercise of its servicing obligations with respect
to any Mortgaged Property hereunder, the Servicer deems it is necessary or
advisable to obtain an Environmental Assessment, then the Servicer shall obtain
an Environmental Assessment, it being understood that all reasonable costs and
expenses incurred by the Servicer in connection with any such Environmental
Assessment (including the cost thereof) shall be deemed to be Servicing Advances
recoverable by the Servicer pursuant to Section 5.05(d). Such
Environmental Assessment shall (a) assess whether (1) such Mortgaged
Property is in material violation of applicable Environmental Laws or (2) after
consultation with an environmental expert, taking the actions necessary to
comply with applicable Environmental Laws is reasonably likely to produce a
greater recovery on a net present value basis than not taking such actions, and
(b) identify whether (1) any circumstances are present at such Mortgaged
Property relating to the use, management or disposal of any hazardous materials
for which investigation, testing, monitoring, containment, clean-up or re
mediation could be required under any federal, state or local law or regulation,
or (2) if such circumstances exist, after consultation with an environmental
expert, taking such actions is reasonably likely to produce a greater recovery
on a present value basis than not taking such actions. (The conditions described
in the immediately preceding clauses (a) and (b) shall be referred to
herein as "Environmental Conditions Precedent to Foreclosure.") If any
such Environmental Assessment so warrants, the Servicer is hereby authorized to
and shall perform such additional environmental testing as it deems necessary
and prudent to establish the satisfaction of the foregoing Environmental
Conditions Precedent to Foreclosure or to proceed as set forth below (such
additional testing thereafter being included in the term "Environmental
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If an Environmental Assessment deemed necessary or advisable
by the Servicer in accordance with this Section 5.11 establishes
that any of the Environmental Conditions Precedent to Foreclosure is not
satisfied with respect to any Mortgaged Property, but the Servicer in good faith
reasonably believes that it is in the best economic interest of the Purchaser to
proceed against such Mortgaged Property and, if title thereto is acquired, to
take such remedial, corrective or other action with respect to the unsatisfied
condition or conditions as may be prescribed by applicable law to satisfy such
condition or conditions, then the Servicer shall so notify the Purchaser. If,
pursuant to Section 5.01(d), the Purchaser has notified the Servicer
in writing to proceed against such Mortgaged Property, then the Servicer shall
so proceed. The cost of any remedial, corrective or other action contemplated by
the preceding sentence in respect of any of the Environmental Conditions
Precedent to Foreclosure that is not satisfied shall not be an expense of the
Servicer and the Servicer shall not be required to expend or risk its own funds
or otherwise incur any financial liability in connection with any such
action.

If an Environmental Assessment deemed necessary or advisable
by the Servicer in accordance with this Section  5.11 establishes
that any of the Environmental Conditions Precedent to Foreclosure is not
satisfied with respect to any Mortgaged Property and, in accordance with
Section 5.01(d)(iii), the Purchaser elects or is deemed to have
elected not to proceed against such Mortgaged Property, then the Servicer shall,
subject to Section 5.01(d)(iii), take such action as it deems to be
in the best economic interest of the Purchaser (other than proceeding against
the Mortgaged Property or directly or indirectly becoming the owner or operator
thereof) as determined in accordance with the servicing standard set forth in
Section 5.01 and is hereby authorized at such time as it deems
appropriate to release such Mortgaged Property from the lien of the related
Mortgage.

Prior to the Servicer taking any action with respect to the
use, management or disposal of any hazardous materials on any Mortgaged
Property, the Servicer shall request the approval of the Purchaser in accordance
with Section 5.01(d)(iii) and, if such action is approved by
the Purchaser, (a) keep the Purchaser apprised of the progress of such
action; and (b) take such action in compliance with all applicable
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Section 5.12
                       Investment of Funds in the Collection
Account.

The Servicer may direct any depository institution which
holds the Collection Account to invest the funds in the Collection Account in
one or more Permitted Investments bearing interest. All such Permitted
Investments shall be held to maturity, unless payable on demand. In the event
amounts on deposit in the Collection Account are at any time invested in a
Permitted Investment payable on demand, the Servicer shall:

	consistent with any notice required to be given
thereunder, demand that payment thereon be made on the last day such Permitted
Investment may otherwise mature hereunder in an amount equal to the lesser of
(1) all amounts then payable thereunder and (2) the amount required to be
withdrawn on such date; and

	demand payment of all amounts due thereunder promptly
upon determination by the Servicer or notice from the Purchaser that such
Permitted Investment would not constitute a Permitted Investment in respect of
funds thereafter on deposit in the Collection Account.

All income and gain realized from investment of funds
deposited in the Collection Account shall be for the benefit of the Purchaser
and shall be subject to its withdrawal in accordance with
Section 6.01. The Servicer shall deposit in the Collection Account
the amount of any loss incurred in respect of any Permitted Investment
immediately upon realization of such loss.

Except as otherwise expressly provided in this Agreement, if
any default occurs in the making of a payment due under any Permitted
Investment, or if a default occurs in any other performance required under any
Permitted Investment, the Purchaser may elect to take such action, or instruct
the Servicer to take such action, as may be appropriate to enforce such payment
or performance, including the institution and prosecution of appropriate
proceedings, at the expense of the Servicer.

ARTICLE VI

REPORTS; REMITTANCES;
ADVANCES

Section 6.01
                       Remittances.

	On each Remittance Date, the Servicer shall remit to the
Purchaser all amounts credited to the Collection Account as of the close of
business on the last day of the related Due Period (including the amount of any
Payoff), net of charges against or withdrawals from the Collection Account in
accordance with Section 5.05, which charges against or withdrawals
from the Collection Account the Servicer shall make solely on such Remittance
Date.

	In the event that, for any Remittance Date, the
calculation described in Section 6.01(a) results in a negative amount for any
Due Period, Purchaser shall remit to Servicer, on such Remittance Date, the
amount of any such negative calculation by wire transfer of immediately
available funds to such account as the Servicer shall direct.

	
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	All remittances made to the Purchaser or the Servicer on
each Remittance Date will be made to the Purchaser or the Servicer by wire
transfer of immediately available funds accordingly to the instructions that
will be provided by Purchaser to the Servicer.

	In the
event that the amount of Estimated Accrued Interest paid by Purchaser on the
Funding Date is less than the actual accrued interest on the Revolving Credit
Loans adjusted to the Revolving Credit Loan Remittance Rate for the period from
and including the Cut-off Date to but not including the Funding Date, Servicer
shall withdraw the amount of such shortage from the Collection Account on the
first Remittance Date under this Agreement. In the event that the amount of
Estimated Accrued Interest is greater than the actual accrued interest on the
Revolving Credit Loans adjusted to the Revolving Credit Loan Remittance Rate for
such period, Servicer shall deposit the amount of
such overage into the Collection Account for distribution to Purchaser on the
first Remittance Date under this Agreement.

	With respect to any remittance received by the Purchaser
after the Business Day on which such payment was due, the Servicer shall pay to
the Purchaser interest on any such late payment at an annual rate equal to One-
month LIBOR (as published in the Wall Street Journal), but in no event greater
than the maximum amount permitted by applicable law. Such interest shall be paid
by the Servicer to the Purchaser on the date such late payment is made and shall
cover the period commencing with the Business Day on which such payment was due
and ending with the Business Day on which such payment is made, both inclusive.
Such interest shall be remitted along with such late payment. Neither the
payment by the Servicer nor the acceptance by the Purchaser of any such interest
shall be deemed an extension of time for payment or a waiver by the Purchaser of
any Event of Default.

	With respect to any reimbursement by the Purchaser to the
Servicer for any Credit Line Advance pursuant to Section 5.01(c) hereof
received by the Servicer after the Business Day on which such payment was due,
the Purchaser shall pay to the Servicer interest on any such late payment at an
annual rate equal to One-month LIBOR (as published in the Wall Street Journal)
plus 200 basis points, but in no event greater than the maximum amount permitted
by applicable law. Such interest shall be paid by the Purchaser to the Servicer
on the date such late payment is made and shall cover the period commencing with
the Business Day on which such payment was due and ending with the Business Day
on which such payment is made, both inclusive. Such interest shall be remitted
along with such late payment. Neither the payment by the Purchaser nor the
acceptance by the Servicer of any such interest shall be deemed an extension of
time for payment.

Section 6.02
                       Reporting.

On or before the 5th Business Day of each month during the
term hereof, the Servicer shall deliver to the Purchaser monthly accounting
reports in the form of Exhibits 6.02(a) through
6.02(e) attached hereto with respect to the most recently ended Due
Period. Such monthly accounting reports shall include with respect to each
Revolving Credit Loan the following loan-level information: (i) the loan
number, (ii) the ending unpaid principal balance of all Credit Line Advances
outstanding as of the last day of the immediately preceding Due Period, (iii)
principal collections, (iv) interest collections, (v) Payoffs, (vi) the amounts
and dates of any Credit Line Advances made by Servicer within such Due Period,
(vii) the principal balance of Credit Line Advances outstanding as of the last
day of the Due Period, (viii) the average daily balance, (ix) the Credit Line,
(x) the remaining credit, (xi) the Mortgage Interest Rate, (xii) the Index,
(xiii) the Margin, and (xiv) the last paid Monthly Payment (xv) any Revolving
Credit Loan which is thirty (30), sixty (60), or ninety (90) days delinquent, in
foreclosure proceedings, a REO Property, or in bankruptcy; all as of the most
recently ended Determination Date. The reports referred to in this paragraph
shall be provided to Purchaser by the Servicer on or before the second Business
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The Servicer shall provide the Purchaser with such
information concerning the Revolving Credit Loans as is necessary for the
Purchaser to prepare its federal income tax return as the Purchaser may
reasonably request from time to time.

Section 6.03
                       [Reserved].

Section 6.04
                       Non-recoverable
Advances.

The determination by the Servicer that it has made a Non-
recoverable Advance or that any Servicing Advance, if made, would constitute a
Non-recoverable Advance shall be evidenced by an Officers' Certificate delivered
to the Purchaser detailing the reasons for such determination.

Section 6.05
                       Itemization of Servicing
Advances.

The Servicer shall provide the Purchaser with an
itemization of all Servicing Advances incurred or made by the Servicer hereunder
as the Purchaser may from time to time reasonably request. 

Section 6.06
                       Officer's Certificate.

The Seller shall deliver to the Purchaser an Officer's
Certificate in the form attached hereto as Exhibit 9 on the initial
Funding Date and upon Purchaser's reasonable request thereafter. 

ARTICLE VII

GENERAL SERVICING
PROCEDURE

Section 7.01
                       Enforcement
of Due-on-Sale Clauses, Assumption
Agreements.

	The Servicer will, to the extent it has knowledge of any
conveyance or prospective conveyance by any Mortgagor of the Mortgaged Property
(whether by absolute conveyance or by contract of sale, and whether or not the
Mortgagor remains or is to remain liable under the Mortgage Note and/or the
Mortgage), exercise its rights to accelerate the maturity of such Revolving
Credit Loan under any " due-on-sale" clause applicable thereto; provided
that the Servicer shall not exercise any such rights if prohibited by law from
doing so or if the exercise of such rights would impair or threaten to impair
any recovery under the related Purchaser-Paid Mortgage Insurance Policy, if
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	If the Servicer is prohibited from enforcing such "due-
on-sale" clause, then the Servicer will enter into an assumption agreement with
the Person to whom the Mortgaged Property has been conveyed or is proposed to be
conveyed, pursuant to which such Person becomes liable under the Mortgage Note
and, to the extent permitted by applicable state law, the Mortgagor remains
liable thereon. (For purposes of this Section 7.01, the term
"assumption" is deemed to also include a sale of the Mortgaged Property subject
to the Mortgage that is not accompanied by an assumption or substitution of
liability agreement.) If any Revolving Credit Loan is to be assumed, then the
Servicer shall inquire into the creditworthiness of the proposed transferee and
shall use the same underwriting criteria for approving the credit of the
proposed transferee that are used with respect to underwriting mortgage loans of
the same type as the Revolving Credit Loans. Where an assumption is allowed, the
Servicer, with the prior written consent of the primary mortgage insurer, if
any, and subject to the conditions of Section 7.01(c), shall, and is
hereby authorized to, enter into a substitution of liability agreement with the
Person to whom the Mortgaged Property is proposed to be conveyed pursuant to
which the original mortgagor is released from liability and such Person is
substituted as mortgagor and becomes liable under the related Mortgage Note. Any
such substitution of liability agreement shall be in lieu of an assumption
agreement. In no event shall the Note Rate, the amount of the Monthly Payment or
the final maturity date be changed. The Servicer shall notify the Purchaser that
any such substitution of liability or assumption agreement has been completed by
forwarding to the Purchaser the original of any such substitution of liability
or assumption agreement, which document shall be added to the related
Purchaser's Mortgage File and shall, for all purposes, be considered a part of
such Purchaser's Mortgage File to the same extent as all other documents and
instruments constituting a part thereof. Any fee collected by the Servicer for
entering into an assumption or substitution of liability agreement shall be
retained by the Servicer as additional compensation for servicing the Revolving
Credit Loans.

	If the credit of the proposed transferee does not meet
such underwriting criteria, then the Servicer shall, to the extent permitted by
the Mortgage or the Mortgage Note and by applicable law, accelerate the maturity
of the Revolving Credit Loan.

Section 7.02
                       Satisfaction of
Mortgages and Release of Mortgage
Files.

Upon the payment in full of any Revolving Credit Loan, the
Servicer will immediately notify the Purchaser by a certification of a Servicing
Officer, which certification shall include a statement to the effect that all
amounts received or to be received in connection with such payment which are
required to be deposited in the Collection Account pursuant to
Section 5.04 have been or will be so deposited and shall request
delivery to it of the Purchaser's Mortgage File held by the Purchaser. Upon
receipt of such certification and request, the Purchaser shall promptly release
the related mortgage documents to the Servicer and the Servicer shall promptly
prepare and process any satisfaction or release. No expense incurred in
connection with any instrument of satisfaction or deed of reconveyance shall be
chargeable to the Collection Account.

If the Servicer satisfies or releases a Mortgage without
having obtained payment in full of the indebtedness secured by the Mortgage, or
should it otherwise take such action which materially and adversely affects the
value or marketability of a Revolving Credit Loan, or results in a reduction of
the coverage under the Purchaser-Paid Mortgage Insurance Policy, if any, then
the Servicer shall promptly give written notice thereof to the Purchaser, and,
within 10 Business Days following written demand therefor from the Purchaser to
the Servicer, the Servicer shall repurchase the related Revolving Credit Loan by
paying to the Purchaser the Repurchase Price therefor by wire transfer of
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From time to time and as appropriate for the servicing or
foreclosure of the Revolving Credit Loan, including for this purpose collection
under any Purchaser-Paid Mortgage Insurance Policy, the Purchaser shall, upon
request of the Servicer and delivery to the Purchaser or its designee of a
servicing receipt signed by a Servicing Officer, release the Purchaser's
Mortgage File held by the Purchaser or its designee to the Servicer. Such
servicing receipt shall obligate the Servicer to return the related mortgage
documents to the Purchaser or its designee when the need therefor by the
Servicer no longer exists, unless the Revolving Credit Loan has been liquidated
and the Liquidation Proceeds relating to the Revolving Credit Loan have been
deposited in the Collection Account or the Purchaser's Mortgage File or such
document has been delivered to an attorney, or to a public trustee or other
public official as required by law, for purposes of initiating or pursuing legal
action or other proceedings for the foreclosure of the Mortgaged Property either
judicially or nonjudicially, and the Servicer has delivered to the Purchaser a
certificate of a Servicing Officer certifying as to the name and address of the
Person to which such Purchaser's Mortgage File or such document was delivered
and the purpose or purposes of such delivery. Upon receipt of a certificate of a
Servicing Officer stating that such Revolving Credit Loan was liquidated and the
Liquidation Proceeds were deposited in the Collection Account, the servicing
receipt shall be released by the Purchaser to the Servicer.

Section 7.03
                       Servicing
Compensation.

As compensation for its services hereunder, the Servicer
shall be entitled to retain from interest payments on the Revolving Credit Loans
the amounts provided for as the Servicing Fee. The Servicing Fee in respect of a
Revolving Credit Loan for a particular month shall become payable only upon the
receipt by the Servicer from the Mortgagor of the full Monthly Payment in
respect of such Revolving Credit Loan. Additional servicing compensation in the
form of assumption fees, as provided in Section 7.01, returned check
fees, dormancy fees and other servicer compensation for modifications, short
sales, late payment charges accrued and collected by Servicer with respect to
any Revolving Credit Loan, and similar ancillary income shall be retained by the
Servicer to the extent not required to be deposited in the Collection Account.

Section 7.04
                       Annual Statement
as to Compliance.

The Servicer will deliver to the Purchaser on or before
March 31 of each year, beginning with March 31, 2004, an Officers'
Certificate stating that (i) a review of the activities of the Servicer
during the preceding calendar year and of performance under this Agreement has
been made under such officers' supervision, (ii) the Servicer has fully
complied with the provisions of this Agreement and (iii) to the best of
such officers' knowledge, based on such review, the Servicer has fulfilled all
of its obligations under this Agreement throughout such year, or, if there has
been a default in the fulfillment of any such obligation, specifying each such
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Section 7.05
                       Annual
Independent Certified Public Accountants' Servicing
Report.

On or before April 15 of each year beginning
April 15, 2004, the Servicer at its expense shall cause a firm of
independent public accountants which is a member of the American Institute of
Certified Public Accountants to furnish a statement to the Purchaser to the
effect that such firm has examined certain documents and records relating to the
servicing of mortgage loans by the Servicer generally that include a sampling of
the Revolving Credit Loans, and, on the basis of such an examination conducted
substantially in accordance with the Uniform Single Attestation Program for
Mortgage Bankers, such servicing has been conducted in compliance with the
minimum standards set forth in such program, except for (i) such exceptions
as such firm shall believe to be immaterial, and (ii) such other exceptions
as shall be set forth in such statement.

Section 7.06
                       ICSA
Data Security Reviews.

At least quarterly Servicer shall obtain a
computer security review and certification of all computer and other systems,
software, processes, and sites (including those of business units, Affiliates
and permitted subcontractors) used in servicing the Revolving Credit Loans, by
the International Computer Security Association or another nationally recognized
computer security certification organization applying state-of-the-art computer
security standards. Such review shall include Internet perimeter intrusion
checking and assessment, yield a certification or rating of the highest level
that such organization can provide, and a full copy of all reports, scores,
certificates and recommendations resulting therefrom shall be provided promptly
to Purchaser. Such rating organization shall enter into a reasonable
confidentiality agreement with Servicer and Purchaser as a condition to such
review.

Section 7.07
                       Purchaser's Right to Examine Servicer
Records.

The Purchaser, its officers, employees, accountants,
regulators, and auditors (collectively its "Representatives") shall have the
right to examine and audit, during business hours or at such other times as are
reasonable under applicable circumstances, upon ten days advance notice any and all of (i) the
credit and other loan files relating to the Revolving Credit Loans or the
Mortgagors, (ii) any and all books, records, documentation or other
information of the Servicer (whether held by the Servicer or by another)
relating to the servicing of the Revolving Credit Loans and (iii) any and
all books, records, documentation or other information of the Servicer (whether
held by the Servicer or by another) that are relevant to the performance or
observance by the Servicer of the terms, covenants or conditions of this
Agreement. The Servicer shall be obligated to make the foregoing information
available to the Purchaser and its Representatives at the site where such
information is stored; provided that the Purchaser and its Representatives shall
be required to pay all reasonable out-of pocket costs and expenses incurred by
the Servicer in making such information available.

Section 7.08
                       Optional Purchase of Delinquent
Revolving Credit Loans.

Servicer shall have the option to repurchase any
Delinquent Revolving Credit Loan and substitute in its place a Qualified
Substitute Revolving Credit Loan (up to a maximum of 5% of the original
aggregate Funding Date Scheduled Principal Balance of all Revolving Credit Loans
purchased by Purchaser under this Agreement).

	
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ARTICLE VIII

REPORTS TO BE PREPARED BY THE
SERVICER

Section 8.01
                       The
Servicer's Reporting Requirements.

	Electronic Format. The Servicer shall supply any
and all information regarding the Revolving Credit Loans and the REO Properties,
including all reports required to be delivered pursuant to
Section 5.03, Section 6.02 and this
Section 8.01, to the Purchaser in electronic format via the
Servicer's secure website, unless otherwise limited by the servicing system
utilized by the Servicer.

	Additional Reports; Further Assurances. On or
before the 3rd Business Day following each Determination Date, the Servicer
shall deliver to the Purchaser (i) a report (substantially in the form of
Exhibit 8.01 attached hereto), acceptable to the Purchaser, describing in
reasonable detail all Revolving Credit Loans that are 60 days or more delinquent
and the Servicer's activities in connection with such delinquencies. The
Servicer shall furnish to the Purchaser during the term of this Agreement such
periodic, special or other reports, information or documentation, whether or not
provided for herein, as shall be reasonably requested by the Purchaser or
required by its regulators with respect to Revolving Credit Loans or REO
Properties (provided the Purchaser shall have given the Servicer reasonable
notice and opportunity to prepare such reports, information or documentation),
including any reports, information or documentation reasonably required to
comply with any regulations of any governmental agency or body having
jurisdiction over the Purchaser, all such reports or information to be as
provided by and in accordance with such applicable instructions and directions
as the Purchaser may reasonably request. If any of such reports are not
customarily prepared by the Servicer or require that the Servicer program data
processing systems to create the reports, then the Purchaser shall pay to the
Servicer a fee mutually agreed to by the Purchaser and the Servicer taking into
account the Servicer's actual time and cost in preparing such reports. The
Servicer agrees to execute and deliver all such instruments and take all such
action as the Purchaser, from time to time, may reasonably request in order to
effectuate the purposes and to carry out the terms of this Agreement.

	Financial
Statements.

The Servicer understands that, in connection with marketing
the Revolving Credit Loans, the Purchaser may make available to any prospective
purchaser of the Revolving Credit Loans the Servicer's audited financial
statements for its fiscal year 2001 and its audited financial statements for
fiscal year 2002, together with any additional statements provided pursuant to
the next sentence. During the term hereof, the Servicer will deliver to the
Purchaser audited financial statements for each of its fiscal years following
the Funding Date and all other financial statements prepared following the
Funding Date to the extent any such statements are available upon request to the
public at large.

The Servicer also agrees to make available upon reasonable
notice and during normal business hours to any prospective purchasers of the
Revolving Credit Loans a knowledgeable financial or accounting officer for the
purpose of answering questions respecting recent developments affecting the
Servicer or the financial statements of the Servicer which may affect, in any
material respect, the Servicer's ability to comply with its obligations under
this Agreement, and to permit any prospective purchasers upon reasonable notice
and during normal business hours to inspect the Servicer's servicing facilities
for the purpose of satisfying such prospective purchasers that the Servicer has
the ability to service the Revolving Credit Loans in accordance with this
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ARTICLE IX

THE
SELLER

Section 9.01
                       Indemnification; Third Party
Claims.

The Seller shall indemnify and hold harmless the Purchaser,
its directors, officers, agents, employees, and assignees (each, an "Indemnified
Party") from and against any costs, damages, expenses (including reasonable
attorneys' fees and costs, irrespective of whether or not incurred in connection
with the defense of any actual or threatened action, proceeding, or claim),
fines, forfeitures, injuries, liabilities or losses ("Losses") suffered or
sustained in any way by any such Person, no matter how or when arising
(including Losses incurred or sustained in connection with any judgment, award,
or settlement), in connection with or relating to (i) a breach by Seller of
any of its representations and warranties contained in Article III or
(ii) a breach by Seller of any of its covenants and other obligations
contained herein. The Seller shall immediately (i) notify the Purchaser if
a claim is made by a third party with respect to this Agreement, any Revolving
Credit Loan and/or any REO Property (ii) assume (with the prior written
consent of the Purchaser) the defense of any such claim and pay all expenses in
connection therewith, including attorneys' fees, and (iii) promptly pay,
discharge and satisfy any judgment, award, or decree that may be entered against
it or the Purchaser in respect of such claim. Nothing contained herein shall
prohibit the Purchaser, at its expense, from retaining its own counsel to assist
in any such proceedings or to observe such proceedings; provided that Seller,
shall not be obligated to pay or comply with any settlement to which it has not
consented. 

The Servicer shall indemnify and hold harmless each
Indemnified Party from and against any Losses suffered or sustained in any way
by any such Person, no matter how or when arising (including Losses incurred or
sustained in connection with any judgment, award, or settlement), in connection
with or relating to (i) a breach by Servicer of any of its representations
and warranties contained in Article III or (ii) a breach by Servicer
of any of its covenants and other obligations contained herein including any
failure to service the Revolving Credit Loans in compliance with the terms
hereof and in accordance with the standard of care in Section 9.03.
The Servicer shall immediately (i) notify the Purchaser if a claim is made
by a third party with respect to this Agreement, any Revolving Credit Loan
and/or any REO Property (ii) assume (with the prior written consent of the
Purchaser) the defense of any such claim and pay all expenses in connection
therewith, including attorneys' fees, and (iii) promptly pay, discharge and
satisfy any judgment, award, or decree that may be entered against it or the
Purchaser in respect of such claim. Nothing contained herein shall prohibit the
Purchaser, at its expense, from retaining its own counsel to assist in any such
proceedings or to observe such proceedings; provided that the Servicer, as
applicable, shall not be obligated to pay or comply with any settlement to which
it has not consented. The Servicer shall be reimbursed from amounts on deposit
in the Collection Account for all amounts advanced by it pursuant to the second
preceding sentence except when the claim in any way relates to the Servicer's
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Section 9.02
                       Merger
or Consolidation of the Seller.

Seller will keep in full effect its existence, rights and
franchises as a corporation or a Delaware business trust, as applicable, under
the laws of the state of its organization and will obtain and preserve its
qualification to do business as a foreign entity in each jurisdiction in which
such qualification is or shall be necessary to protect the validity and
enforceability of this Agreement or any of the Revolving Credit Loans and to
perform its duties under this Agreement.

Any Person into which Seller may be merged or consolidated,
or any corporation resulting from any merger, conversion or consolidation
(including by means of the sale of all or substantially all of Seller's assets
to such Person) to which the Seller shall be a party, or any Person succeeding
to the business of the Seller, shall be the successor of the Seller hereunder,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto, anything herein to the contrary notwithstanding;
provided that, unless otherwise consented to by the Purchaser, the
successor or surviving Person, in the case of a merger or consolidation, etc. of
the Servicer, shall be an institution qualified to service mortgage loans on
behalf of FNMA and FHLMC in accordance with the requirements of
Section 3.02(a), shall not cause a rating on any security backed by a
Revolving Credit Loan to be downgraded and shall satisfy the requirements of
Section 12.01 with respect to the qualifications of a successor to such
Servicer.

Section 9.03
                       Limitation on Liability of the Seller and
Others.

Neither the Seller nor the Servicer, nor any of the
officers, employees or agents of the Seller or Servicer shall be under any
liability to the Purchaser for any reasonable action taken or for refraining
from the taking of any reasonable action in good faith pursuant to this
Agreement or pursuant to the express written instructions of the Purchaser, or
for reasonable errors in judgment made in good faith; provided that this
provision shall not protect the Seller, the Servicer, or any such Person against
any breach of warranties or representations or covenants made herein, or failure
to perform its obligations in compliance with any standard of care set forth in
this Agreement, or any liability which would otherwise be imposed by reasons of
willful misfeasance, bad faith, negligence or any breach in the performance of
the obligations and duties hereunder. The Seller, the Servicer and any officer,
employee or agent of the Seller and Servicer may rely in good faith on any
document of any kind reasonably believed by the Seller, the Servicer, or such
Person to be genuine and prima facie properly executed and submitted by
any Person respecting any matters arising hereunder.

The Seller or the Servicer, as applicable, shall not be under
any obligation to appear in, prosecute or defend any legal action that is not
incidental to their duties hereunder and which in their opinion may involve them
in any expense or liability; provided that the Seller or the Servicer may
in their discretion undertake any such action that it may deem necessary or
desirable in respect of this Agreement and the rights and duties of the parties
hereto. In such event, the legal expenses and costs of such action and any
liability resulting therefrom shall be expenses, costs and liabilities of the
Seller or the Servicer as applicable, and the Servicer shall be entitled to be
reimbursed out of the Collection Account for customary and reasonable legal
expenses with the express written consent of the Purchaser. This indemnity shall
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Section 9.04
                       Servicer
Not to Resign.

With respect to the retention by Seller of the servicing
of the Revolving Credit Loans and the REO Properties hereunder, Seller
acknowledges that the Purchaser has acted in reliance upon Seller's independent
status, the adequacy of its servicing facilities, plan, personnel, records and
procedures, its integrity, reputation and financial standing and the continuance
thereof. Consequently, Seller shall not assign the servicing rights retained by
it hereunder to any third party nor resign from the obligations and duties
hereby imposed on it except (i) with 120 days written notice to Purchaser
and the written approval of the Purchaser, such approval not to be unreasonably
withheld, or (ii) 3 Business Days following any determination that its
duties hereunder are no longer permissible under applicable law and such
incapacity cannot be cured by Seller. Any determination permitting the transfer
of the servicing rights or the resignation of Seller under
Subsection (ii) hereof shall be evidenced by an opinion of counsel
to such effect delivered to the Purchaser, which opinion of counsel shall be in
form and substance reasonably acceptable to the Purchaser.

ARTICLE X

DEFAULT

Section 10.01
                       Events of
Default.

In case one or more of the following events shall occur and
be continuing:

	any failure by the Servicer to remit to the Purchaser any
payment required to be made under the terms of this Agreement which continues
unremedied for a period of 3 Business Days unless such failure to remit is due
to a cause beyond the Servicer's control, including an act of God, act of civil,
military or governmental authority, fire, epidemic, flood, blizzard, earthquake,
riot, war, or sabotage, provided that the Servicer gives the Purchaser
notice of such cause promptly and uses its reasonable efforts to correct such
failure to remit and does so remit within 2 Business Days following the end of
the duration of the cause of such failure to remit;

	Servicer shall commingle funds unrelated to the Revolving
Credit Loans or shall fail to make remittances to Purchaser when and as required
under this Agreement, provided however, the infrequent accidental misallocation
of funds on the part of the Servicer in the performance of its duties hereunder
shall not be deemed to be an Event of Default hereunder provided that Servicer
has taken commercially reasonable steps to prevent such occurrence, Servicer
promptly corrects such misallocations, and ; or

	any filing of an Insolvency Proceeding against a
Seller/Servicer that remains undismissed or unstayed for a period of 30 days
after the filing thereof;

	Servicer shall fail to pay, or any event of default by
Servicer shall occur under the terms of, any indebtedness of Servicer for
borrowed money exceeding $ 100,000 due Purchaser or any other person or entity
and such failure shall continue beyond any applicable grace period, and in
Purchaser's judgment, such failure is indicative of an adverse change in the
operations or financial condition of the Servicer or its ability or willingness
to satisfactorily perform its obligations hereunder; or

	
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	any filing of an Insolvency Proceeding by or on behalf of
a Seller or Servicer, any consent by or on behalf of a Seller or Servicer to the
filing of an Insolvency Proceeding against a Seller or Servicer, or any
admission by or on behalf of a Seller or Servicer of its inability to pay its
debts generally as the same become due;

	Any Insolvency Proceeding is commenced by or against a
Seller or Servicer and the petition shall not be dismissed within 30 days after
commencement of the case, or a court having jurisdiction in the premises shall
enter a decree or order for relief in respect of Servicer in an involuntary
case, under any applicable bankruptcy, insolvency or other similar law now or
here after in effect, or any other similar relief shall be granted under any
applicable federal or state law; or;

	any issuance of any attachment or execution against, or
any appointment of a conservator, receiver or liquidator with respect to, all or
substantially all of the assets of a Seller or Servicer;

	any failure or inability of Seller to be eligible to
service Revolving Credit Loans for FNMA or FHLMC;

	any sale, transfer, assignment, or other disposition by a
Seller or Servicer of all or substantially all of its property or assets to a
Person who does not meet the qualifications enumerated or incorporated by
reference into Section 9.02, any assignment by a Seller or Servicer
of this Agreement or any of a Seller's or Servicer's rights or obligations
hereunder except in accordance with Section 9.04, or any action
taken or omitted to be taken by a Seller or Servicer in contemplation or in
furtherance of any of the foregoing, without the consent of the Purchaser;
or

	any failure by the Seller or Servicer to be in compliance
with applicable "doing business" or licensing laws of any jurisdiction where
Mortgaged Property is located;

then, and in each and every such case, so long as an Event of
Default shall not have been remedied, the Purchaser, by notice in writing to the
Seller and/or Servicer may, in addition to whatever rights the Purchaser may
have at law or in equity to damages, including injunctive relief and specific
performance, terminate all the rights and obligations of the Seller and/or
Servicer under this Agreement and in and to the Revolving Credit Loans and the
proceeds thereof subject to Section 12.01, without the Purchaser's
incurring any penalty or fee of any kind whatsoever in connection therewith;
provided that, upon the occurrence of an Event of Default under
Subsection (3), (4) or (5) of this Section 10.01, this
Agreement and all authority and power of the Seller and/or Servicer hereunder
(whether with respect to the Revolving Credit Loans, the REO Properties or
otherwise) shall automatically cease. On or after the receipt by the Seller of
such written notice, all authority and power of the Seller under this Agreement
(whether with respect to the Revolving Credit Loans or otherwise) shall cease.
Notwithstanding the occurrence of an Event of Default, the Seller or the
Servicer, as applicable, shall be entitled to all amounts due to such party and
remaining unpaid on such date of termination.

	
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ARTICLE XI

TERMINATION

Section 11.01
                       Term and
Termination of Servicing.

	The servicing obligations of the Servicer under this
Agreement may be terminated as provided in Section 10.01
hereof.

	In any case other than as provided under
Subsection (a) hereof, the respective obligations and
responsibilities of the Servicer hereunder shall terminate upon: (a) the
later of the final payment or other liquidation (or any advance with respect
thereto) of the last Revolving Credit Loan or the disposition of all REO
Property and the remittance of all funds due hereunder; or (b) written
notice by Purchaser, and transfer of servicing in accordance with Section
12.01,

	Upon any termination of this Agreement or the servicing
obligations of the Servicer hereunder, then the Servicer shall prepare, execute
and deliver all agreements, documents and instruments, including all Servicer
Mortgage Files, and do or accomplish all other acts or things necessary or
appropriate to effect such termination, all at the Servicer's sole expense. In
any such event, the Servicer agrees to cooperate with the Purchaser in effecting
the termination of the Servicer's servicing responsibilities hereunder,
including the transfer to the Purchaser or its designee for administration by it
of all cash amounts which shall at the time be contained in, or credited by the
Servicer to, the Collection Account or thereafter received with respect to any
Revolving Credit Loan or REO Property.

	Purchaser and Seller may, by written notice to the other
parties at any time, terminate their respective obligations to purchase or sell
mortgage loans hereunder, provided, however, each such party shall be obligated
to purchase and sell, as applicable, any mortgage loans such party committed to
purchase or sell subject to any Purchase Price and Terms Letter predating the
other party's receipt of any such notice of termination.

Section 11.02
                       Survival.

Notwithstanding anything to the contrary contained herein,
the representations and warranties of the parties contained herein and in any
certificate or other instrument delivered pursuant hereto, as well as the other
covenants hereof (including those set forth in Section 9.01) that,
by their terms, require performance after the termination by this Agreement,
shall survive the delivery and payment for the Revolving Credit Loans on each
Funding Date as well as the subsequent transfer of any Revolving Credit Loan,
and the termination of this Agreement and shall inure to the benefit of the
parties, their successors and assigns. Seller further agree that the
representations, warranties and covenants made by Seller herein and in any
certificate or other instrument delivered pursuant hereto shall be deemed to be
relied upon by Purchaser notwithstanding any investigation heretofore made by
Purchaser or on Purchaser's behalf.

	
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ARTICLE XII

GENERAL
PROVISIONS

Section 12.01
                       Successor to
the Servicer.

Upon the termination of the Servicer's servicing
responsibilities and duties under this Agreement pursuant to Section 9.04,
10.01, or 11.01, the Purchaser shall (i) succeed to and assume all of the
Servicer 's responsibilities, rights, duties and obligations under this
Agreement or (ii) appoint a successor servicer which shall succeed to all
rights and assume all of the responsibilities, duties and liabilities of the
Servicer under this Agreement prior to the termination of the Servicer's
responsibilities, duties and liabilities under this Agreement. If the Servicer's
duties, responsibilities and liabilities under this Agreement should be
terminated pursuant to the aforementioned sections, then the Servicer shall
continue to discharge such duties and responsibilities during the period from
the date it acquires knowledge of such termination until the effective date
thereof (if applicable) all on the terms and conditions contained herein and
shall take no action whatsoever that might impair or prejudice the rights or
financial condition of its successor. The termination of the Servicer's
servicing responsibilities pursuant to any of the aforementioned Sections shall
not, among other things, relieve the Servicer of its obligations pursuant to
Section 2.04 and/or 7.02, the representations and warranties or other
obligations set forth in Sections 2.04, 3.01, 3.02 and 3.03 and the remedies
available to the Purchaser under the various provisions of this Agreement. In
addition, such termination shall not affect any claims that the Purchaser may
have against the Servicer arising prior to any such termination.

Section 12.02
                       Governing Law.

This Agreement is to be governed by, and construed in
accordance with the internal laws of the State of North Carolina without giving
effect to principles of conflicts of laws. The obligations, rights, and remedies
of the parties hereunder shall be determined in accordance with such laws.

Section 12.03
                       Notices.

Any notices or other communications permitted or required
hereunder shall be in writing and shall be deemed conclusively to have been
given if personally delivered, sent by courier with delivery against signature
therefor, mailed by registered mail, postage prepaid, and return receipt
requested or transmitted by telex, telegraph or telecopier and confirmed by a
similar writing mailed or sent by courier as provided above, to (i) in the
case of the Purchaser, Wachovia Bank, N.A., 301 S. College St., Mail Stop
NC0602, Charlotte, NC 28288, Attention : Rick Newton, Vice President, Structured
Products, (ii) ) in the case of the Seller, E-Loan, Inc., 6230 Stoneridge
Mall Road, Pleasanton, CA 94588 Attention : Steve Majerus, Senior Vice
President, with a copy to Edward A. Giedgowd, E-Loan's General Counsel at the
same address, or (iii) such other address as may hereafter be furnished to the
other parties in writing by the Purchaser or applicable Seller. Any notification or
communication provided by transmission of e-mail shall not, for purposes of this
Agreement, constituted valid notice.

	
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Section 12.04
                       Severability of
Provisions.

If any one or more of the covenants, agreements,
provisions or terms of this Agreement shall be for any reason whatsoever held
invalid, the invalidity of any such covenant, agreement, provision or term of
this Agreement shall in no way affect the validity or enforceability of the
other provisions of this Agreement.

Section 12.05
                        Schedules and
Exhibits.

The schedules and exhibits that are attached to this
Agreement are hereby incorporated herein and made a part hereof by this
reference.

Section 12.06
                       General
Interpretive Principles.

For purposes of this Agreement, except as otherwise
expressly provided or unless the context otherwise requires:

	the terms defined in this Agreement have the meanings
assigned to them in this Agreement and include the plural as well as the
singular, and the use of any gender herein shall be deemed to include the other
gender;

	any reference in this Agreement to this Agreement or any
other agreement, document, or instrument shall be a reference to this Agreement
or any other such agreement, document, or instrument as the same has been
amended, modified, or supplemented in accordance with the terms hereof and
thereof (as applicable);

	accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted accounting
principles;

	references herein to "Articles," "Sections,"
"Subsections," "Paragraphs, " and other subdivisions without reference to a
document are to designated articles, sections, subsections, paragraphs and other
subdivisions of this Agreement, unless the context shall otherwise
require;

	a reference to a subsection without further reference to
a section is a reference to such subsection as contained in the same section in
which the reference appears, and this rule shall also apply to Paragraphs and
other subdivisions;

	a reference to a "day" shall be a reference to a calendar
day;

	the words "herein," "hereof," "hereunder" and other words
of similar import refer to this Agreement as a whole and not to any particular
provision; and 

	the terms "include" and "including" shall mean without
limitation by reason of enumeration .

Section 12.07
                       Waivers and
Amendments, Noncontractual Remedies; Preservation of
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This Agreement may be amended, superseded, canceled, renewed
or extended and the terms hereof may be waived, only by a written instrument
signed by authorized representatives of the parties or, in the case of a waiver,
by an authorized representative of the party waiving compliance. No such written
instrument shall be effective unless it expressly recites that it is intended to
amend, supersede, cancel, renew or extend this Agreement or to waive compliance
with one or more of the terms hereof, as the case may be. No delay on the part
of any party in exercising any right, power or privilege hereunder shall operate
as a waiver thereof, nor shall any waiver on the part of any party of any such
right, power or privilege, or any single or partial exercise of any such right,
power or privilege, preclude any further exercise thereof or the exercise of any
other such right, power or privilege. The rights and remedies herein provided
are cumulative and are not exclusive of any rights or remedies that any party
may otherwise have at law or in equity.

Section 12.08
               Captions.

All section titles or captions contained in this
Agreement or in any schedule or Exhibit annexed hereto or referred to herein,
and the table of contents to this Agreement, are for convenience only, shall not
be deemed a part of this Agreement and shall not affect the meaning or
interpretation of this Agreement.

Section 12.09
                       Counterparts;
Effectiveness.

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 one and the same
instrument. This Agreement shall become effective as of the date first set forth
herein upon the due execution and delivery of this Agreement by each of the
parties hereto.

Section 12.10
                              Entire Agreement;
Amendment.

This Agreement (including the schedules and exhibits
annexed hereto or referred to herein), together with each and every Purchase
Price and Terms Letter to be provided in connection with any Revolving Credit
Loan and Funding Date, and the Seller Guide, contains the entire agreement
between the parties hereto with respect to the transactions contemplated hereby
and supersedes all prior agreements, written or oral, with respect thereto. No
amendment, modification or alteration of the terms or provisions of this
Agreement shall be binding unless the same shall be in writing and duly executed
by the authorized representatives of the parties hereto.

Section 12.11
                       Further
Assurances.

Each party hereto shall take such additional action as
may be reasonably necessary to effectuate this Agreement and the transactions
contemplated hereby. The Seller will promptly and duly execute and deliver to
the Purchaser such documents and assurances and take such further action as the
Purchaser may from time to time reasonably request in order to carry out more
effectively the intent and purpose of this Agreement and to establish and
protect the rights and remedies created or intended to be created in favor of
the Purchaser.

	
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Section 12.12
                       Intention of the
Seller.

Seller intends that the conveyance of Seller's right,
title and interest in and to the Revolving Credit Loans to the Purchaser shall
constitute a sale and not a pledge of security for a loan. If such conveyance is
deemed to be a pledge of security for a loan, however, the Seller intends that
the rights and obligations of the parties to such loan shall be established
pursuant to the terms of this Agreement. Seller also intends and agrees that, in
such event, (i) the Seller shall be deemed to have granted to the Purchaser
and its assigns a first priority security interest in Seller's entire right,
title and interest in and to the Revolving Credit Loans, all principal and
interest received or receivable with respect to the Revolving Credit Loans, all
amounts held from time to time in the accounts mentioned pursuant to this
Agreement and all reinvestment earnings on such amounts, together with all of
the Seller's right, title and interest in and to the proceeds of any title,
hazard or other insurance policies related to such Revolving Credit Loans and
(ii) this Agreement shall constitute a security agreement under applicable
law. All rights and remedies of the Purchaser under this Agreement are distinct
from, and cumulative with, any other rights or remedies under this Agreement or
afforded by law or equity and all such rights and remedies may be exercised
concurrently, independently or successively.

[SIGNATURE PAGE FOLLOWS]

	
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IN WITNESS WHEREOF, the Seller and the Purchaser have caused
their names to be signed hereto by their respective officers as of the date
first written above.

WACHOVIA BANK, N.A.

By:/s/ Rick W. Newton

   Name :Rick W. Newton

   Title :Vice President 

 

E-LOAN, INC.

 

By:/s/ Steve Majerus

   Name:Steve Majerus

   Title:Senior Vice President 

 

 

 

 

 

 

 

*Exhibits and schedules have been omitted in accordance with Item 601 of
Regulation S-K, and will be provided upon request.FY2003 10K Exhibit 10.67

                         Exhibit 10.67 

MASTER REPURCHASE AGREEMENT

Between:

MERRILL LYNCH MORTGAGE CAPITAL INC., as Buyer

and

E-LOAN, INC., as Seller

Dated as of February 6, 2004

TABLE OF CONTENTS

	

 

   Section 1.

  Section 2. 

  Section 3.  

  Section 4. 

  Section 5. 

  Section 6.  

  Section 7.  

  Section 8.  

  Section 9.  

  Section 10. 

  Section 11. 

  Section 12.  

  Section 13.  

  Section 14.  

  Section 15.  

  Section 16. 

  Section 17. 

  Section 18. 

  Section 19. 

  Section 20. 

  Section 21. 

  Section 22.  

  Section 23. 

  Section 24.

  Section 25. 

  Section 26. 

  Section 27. 

  Section 28. 

  Section 29. 

  Section 30. 

  Section 31. 

  Section 32. 

  Section 33. 

  Section 34.

	

 

    APPLICABILITY    

 DEFINITIONS  

 INITIATION; TERMINATION  

 MARGIN AMOUNT MAINTENANCE 

 INCOME PAYMENTS 

REQUIREMENTS OF LAW 

TAXES.  

SECURITY INTEREST  

PAYMENT, TRANSFER AND CUSTODY 

 HYPOTHECATION OR PLEDGE OF PURCHASED Mortgage Loan  

 REPRESENTATIONS  

COVENANTS  

EVENTS OF DEFAULT  

REMEDIES 

INDEMNIFICATION AND EXPENSES; RECOURSE  

 Servicing  

 SINGLE AGREEMENT 

 Set-off  

 NOTICES AND OTHER COMMUNICATIONS 

 ENTIRE AGREEMENT; SEVERABILITY 

 NON-ASSIGNABILITY  

TERMINABILITY  

 GOVERNING LAW 

  Submission To Jurisdiction; Waivers 

 NO WAIVERS, ETC.

 NETTING 

 DUE DILIGENCE 

 BUYER'S APPOINTMENT AS ATTORNEY-IN-FACT 

 MISCELLANEOUS 

 CONFIDENTIALITY 

 Intent 

 Disclosure Relating to Certain Federal Protections 

 CONFLICTS 

 AUTHORIZATIONS

	

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EXHIBITS
SCHEDULE 1Representations and Warranties Re:  Mortgage
Loans

SCHEDULE 2Existing Indebtedness*

EXHIBIT IForm of Confirmation Letter*

EXHIBIT IIForm of Opinion Letter*

EXHIBIT III[Intentionally Omitted]

EXHIBIT IVForm of Account Agreement*

EXHIBIT VMortgage Loan Schedule Fields*

EXHIBIT VIMortgage File Documents*

EXHIBIT VIIUnderwriting Guidelines*

EXHIBIT VIIISeller's Officer's Certificate*

EXHIBIT IXForm of Servicer Notice*

EXHIBIT XAuthorized Representatives*

EXHIBIT XIResponsible Officers*

 

*Exhibits and schedules have been omitted in accordance with Item 601
of Regulation S-K, and will be provided upon request.

MASTER REPURCHASE AGREEMENT

This is a MASTER REPURCHASE AGREEMENT, dated as of
February 6, 2004, between E-LOAN, INC., a  Delaware corporation (the
"Seller") and MERRILL LYNCH MORTGAGE CAPITAL INC., a New York
corporation (the "Buyer").

Section 1.   
    APPLICABILITY

From time to time the parties hereto shall enter into
transactions in which the respective Seller agrees to transfer to Buyer Mortgage
Loans against the transfer of funds by Buyer, with a simultaneous agreement by
Buyer to transfer to the Seller such Mortgage Loans at a date certain not later
than the date 364 days after the related Purchase Date, against the transfer of
funds by the Seller. Each such transaction shall be referred to herein as a
"Transaction" and shall be governed by this Repurchase
Agreement, unless otherwise agreed in writing. This Repurchase Agreement is not
a commitment by Buyer to enter into Transactions with Seller but rather sets
forth the procedures to be used in connection with periodic requests for Buyer
to enter into Transactions with Seller.  The parties hereby acknowledges that
Buyer and Seller are under no obligation to agree to enter into, or to enter
into, any Transaction pursuant to this Repurchase Agreement.

Section 2.   
       DEFINITIONS

As used herein, the following terms shall have the
following meanings (all terms defined in this Section 2 or in other
provisions of this Repurchase Agreement in the singular to have the same
meanings when used in the plural and vice versa)  

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

"Account Agreement" shall mean a letter
agreement between the Seller, the Buyer, and a depository institution acceptable
to Buyer in its sole discretion substantially in the form of
Exhibit IV attached hereto.

"Additional Purchased Mortgage Loans" shall
mean Mortgage Loans or cash provided by the Seller to Buyer or its designee
pursuant to Section 4 of this Repurchase Agreement.

"Affiliate" shall mean with respect to any
Person, any "affiliate" of such Person, as such term is defined in the
Bankruptcy Code.

"Aged Loan" shall mean a Mortgage Loan which
as been held by the Custodian for the benefit of the Buyer for a period of
greater than 60 days but no greater than 90 days.

"Agency" shall mean Freddie Mac, Fannie Mae
or Ginnie Mae as applicable.

"Agency Takeout Commitment" shall mean a
commitment by an Agency to purchase the Mortgage Loan under any of its cash
purchase programs.

 "Appraised Value" shall mean the value set
forth in an appraisal made in connection with the origination of the related
Mortgage Loan as the value of the Mortgaged Property.

 "Asset Value" shall mean with respect to
each Eligible Mortgage Loan, the applicable Purchase Price Percentage for the
related Purchased Mortgage Loan multiplied by the lesser of (a) the Market
Value of such Mortgage Loan and (b) the outstanding principal balance of
such Mortgage Loan.

"Authorized Representative" shall mean, for
the purposes of this Repurchase Agreement only, an agent or Responsible Officer
of the Seller listed on Exhibit X hereto, as such Exhibit X may be
amended from time to time .

"Bailee Letter" shall have the meaning
assigned to such term in the Custodial Agreement.

"Bankruptcy Code" shall mean the United
States Bankruptcy Code of 1978, as amended from time to time.

"Business Day" shall mean a day other than
(i) a Saturday or Sunday, (ii) any  day on which banking institutions
are authorized or required by law, executive order or governmental decree to be
closed in the State of New York or (iii) any day on which the New York
Stock Exchange is closed. 

"Buyer" shall mean Merrill Lynch Mortgage
Capital Inc., its successors in interest and assigns.

"Buyer Takeout Mortgage Loan"  shall mean a
Mortgage Loan subject to a Takeout Commitment where the Buyer or its Affiliate
is the Takeout Investor.

"Capital Lease Obligations" shall mean, for
any Person, all obligations of such Person to pay rent or other amounts under a
lease of (or other agreement conveying the right to use) Property to the extent
such obligations are required to be classified and accounted for as a capital
lease on a balance sheet of such Person under GAAP, and, for purposes of this
Repurchase Agreement, the amount of such obligations shall be the capitalized
amount thereof, determined in accordance with GAAP.

"Cash Equivalents" shall mean
(a) securities with maturities of 90 days or less from the date of
acquisition issued or fully guaranteed or insured by the United States
Government or any agency thereof, (b) certificates of deposit and
eurodollar time deposits with maturities of 90 days or less from the date of
acquisition and overnight bank deposits of Buyer or of any commercial bank
having capital and surplus in excess of $500,000,000, (c) repurchase
obligations of Buyer or of any commercial bank satisfying the requirements of
clause (b) of this definition, having a term of not more than seven
days with respect to securities issued or fully guaranteed or insured by the
United States Government, (d) commercial paper of a domestic issuer rated
at least A-1 or the equivalent thereof by S&P or P-1 or the equivalent
thereof by Moody's and in either case maturing within 90 days after the day of
acquisition, (e) securities with maturities of 90 days or less from the
date of acquisition issued or fully guaranteed by any state, commonwealth or
territory of the United States, by any political subdivision or taxing authority
of any such state, commonwealth or territory or by any foreign government, the
securities of which state, commonwealth, territory, political subdivision,
taxing authority or foreign government (as the case may be) are rated at least A
by S&P or A by Moody's, (f) securities with maturities of 90 days or
less from the date of acquisition backed by standby letters of credit issued by
Buyer or any commercial bank satisfying the requirements of
clause (b) of this definition or (g) shares of money market
mutual or similar funds which invest exclusively in assets satisfying the
requirements of clauses (a) through (f) of this definition.

"Change in Control" shall mean (A) the
acquisition by any Person, or two or more Persons acting in concert, of
beneficial ownership (within the meaning of Rule 13d-3 of the Securities and
Exchange Commission under the Securities Exchange Act of 1934) of outstanding
share of voting stock of the Seller at any time if after giving effect to such
acquisition (i) such Person or Persons owns twenty percent (20%) or more of such
outstanding voting stock or (ii) the existing shareholders of the Seller do not
own more than fifty (50%) of such outstanding shares of voting stock; or

(B)the sale, transfer, or other disposition of all or
substantially all of a Seller's assets (excluding any such action taken in
connection with any securitization transaction).

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

"Collection Account" shall mean the account
established by a financial institution acceptable to Buyer subject to an Account
Agreement, into which all Income shall be deposited.

"Combined Loan-to-Value Ratio" or
"CLTV" shall mean, with respect to any Second Lien Mortgage
Loan, the sum of the original principal balance of such Mortgage Loan and the
outstanding principal balance of any related first lien as of the date of
origination of the Mortgage Loan, divided by the Appraised Value of the
Mortgaged Property as of the origination date.

"Committed Mortgage Loan" shall mean a
Mortgage Loan which is the subject of a Takeout Commitment with a Takeout
Investor.

"Confirmation" shall mean a Confirmation
Letter in the form of Exhibit I hereto.

"Conforming Mortgage Loan" shall mean a
first lien Mortgage Loan that conforms to the requirements of an Agency for cash
purchase and if not subject to a Takeout Commitment, is otherwise subject to an
Interest Rate Protection Agreement.

"Credit Limit" shall mean, with respect
to each HELOC, the maximum amount permitted under the terms of the related
Credit Line Agreement.

"Credit Line Agreement" shall mean, with
respect to each HELOC, the related home equity line of credit agreement, account
agreement and promissory note (if any) executed by the related Mortgagor and any
amendment or modification thereof.

"Custodial Agreement" shall mean that
certain Custodial Agreement dated as of the date hereof, among Seller,  Buyer
and Custodian as the same may be amended from time to time.

"Custodian" shall mean Deutsche Bank
National Trust Company, or any successor thereto under the Custodial
Agreement.

"Default" shall mean an Event of Default or
an event that with notice or lapse of time or both would become an Event of
Default.

"Delinquent Mortgage Loan" shall mean any
Mortgage Loan as to which any Monthly Payment, or part thereof, remains unpaid
for 30 days or more from the original Due Date for such Monthly
Payment.

"Disbursement Account" shall mean the
account established by the Disbursement Agent subject to the Disbursement
Agreement, into which the Purchase Price for the Purchased Mortgage Loans that
are Wet-Ink Mortgage Loans shall be deposited.

"Disbursement Agent" shall mean Deutsche
Bank National Trust Company, its successor or assigns.

"Disbursement Agreement" shall mean that
certain Disbursement Agreement by and between the Disbursement Agent and the
Buyer, dated as of the date hereof, setting forth the terms pursuant to which
the Disbursement Agent shall disburse funds related to Wet-Ink Mortgage
Loans.

"Dollars" and "$" shall
mean lawful money of the United States of America.

"Due Date" shall mean the day of the month
on which the Monthly Payment is due on a Mortgage Loan, exclusive of any days of
grace.

"Due Diligence Review" shall mean the
performance by Buyer of any or all of the reviews permitted under
Section 27 hereof with respect to any or all of the Mortgage Loans, as
desired by the Buyer from time to time.

"Effective Date" shall mean the date upon
which the conditions precedent set forth in Section 3(a) shall have
been satisfied.

"Electronic Tracking Agreement" shall mean
an Electronic Tracking Agreement among Buyer, Seller, MERS and MERSCORP, Inc.,
to the extent applicable.

"Eligible Mortgage Loan" shall mean a
Purchased Mortgage Loan which (i) complies with the representations and
warranties set forth on Schedule 1 to this Repurchase Agreement and
(ii) is a Conforming Mortgage Loan, a Jumbo Mortgage Loan, a HELOC or a
Sub-Prime Mortgage Loan. 

"ERISA" shall, with respect to any Person,
mean the Employee Retirement Income Security Act of 1974, as amended from time
to time and any successor thereto, and the regulations promulgated and rulings
issued thereunder.

"ERISA Affiliate" shall, with respect to any
Person, mean any Person which is a member of any group of organizations
(i) described in Section 414(b) or (c) of the Code of
which such Person is a member, or (ii) solely for purposes of potential
liability under Section 302(c)(11) of ERISA and
Section 412(c)(11) of the Code and the lien created under
Section 302(f) of ERISA and Section 412(n) of the Code, described
in Section 414(m) or (o) of the Code of which such Person is a
member.

"Escrow Payments" shall mean, with respect
to any Mortgage Loan, the amounts constituting ground rents, taxes, assessments,
water rates, sewer rents, municipal charges, mortgage insurance premiums, fire
and hazard insurance premiums, condominium charges, and any other payments
required to be escrowed by the Mortgagor with the mortgagee pursuant to the
Mortgage or any other document.

"Estimated Purchase Price" shall have the
meaning specified in Section 3(b)(vii) hereof.

"Event of Default" shall have the meaning
specified in Section 13.01 hereof.

"Event of Insolvency" shall mean, for any
Person:

	that such Person or any Affiliate shall discontinue or
abandon operation of its business; or

	 that such Person or any Affiliate shall fail
generally to, or admit in writing its inability to, pay its debts as they become
due; or

	a proceeding shall have been instituted in a court having
jurisdiction in the premises seeking a decree or order for relief in respect of
such Person or any Affiliate in an involuntary case under any applicable
bankruptcy, insolvency, liquidation, reorganization or other similar law now or
hereafter in effect, or for the appointment of a receiver, liquidator, assignee,
trustee, custodian, sequestrator, conservator or other similar official of such
Person or any Affiliate, or for any substantial part of its property, or for the
winding-up or liquidation of its affairs; or

	 the commencement by such Person or any Affiliate of
a voluntary case under any applicable bankruptcy, insolvency or other similar
Law now or hereafter in effect, or such Person's or any Affiliate's consent to
the entry of an order for relief in an involuntary case under any such Law, or
consent to the appointment of or taking possession by a receiver, liquidator,
assignee, trustee, custodian, sequestrator, conservator or other similar
official of such Person, or for any substantial part of its property, or any
general assignment for the benefit of creditors; or

	that such Person or any Affiliate shall become insolvent;
or

	if such Person or any Affiliate is a corporation, such
Person or any Affiliate, or any of their Subsidiaries, shall take any corporate
action in furtherance of, or the action of which would result in any of the
actions set forth in the preceding clause (a), (b), (c), (d) or
(e).

"Event of Termination" shall, with respect
to the Seller, mean (i) with respect to any Plan, a reportable event, as
defined in Section 4043 of ERISA, as to which the PBGC has not by regulation
waived the requirement of Section 4043(a) of ERISA that it be notified within 30
days of the occurrence of such event, or (ii) the withdrawal of the Seller
or any ERISA Affiliate thereof from a Plan during a plan year in which it is a
substantial employer, as defined in Section 4001(a)(2) of ERISA, or
(iii) the failure by the Seller or any ERISA Affiliate thereof to meet the
minimum funding standard of Section 412 of the Code or Section 302 of ERISA with
respect to any Plan, including, without limitation, the failure to make on or
before its due date a required installment under Section 412(m) of the Code or
Section 302(e) of ERISA, or (iv) the distribution under Section 4041 of
ERISA of a notice of intent to terminate any Plan or any action taken by the
Seller or any ERISA Affiliate thereof to terminate any Plan, or (v) the
adoption of an amendment to any Plan that, pursuant to Section 401(a)(29) of the
Code or Section 307 of ERISA, would result in the loss of tax-exempt status of
the trust of which such Plan is a part if the Seller or any ERISA Affiliate
thereof fails to timely provide security to the Plan in accordance with the
provisions of said Sections, or (vi) the institution by the PBGC of
proceedings under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Plan, or (vii) the receipt by
the Seller or any ERISA Affiliate thereof of a notice from a Multiemployer Plan
that action of the type described in the previous clause (vi) has been
taken by the PBGC with respect to such Multiemployer Plan, or (viii) any
event or circumstance exists which may reasonably be expected to constitute
grounds for the Seller or any ERISA Affiliate thereof to incur liability under
Title IV of ERISA or under Sections 412(c)(11) or 412(n) of the Code with
respect to any Plan.

"Expenses" shall mean all present and future
expenses incurred by or on behalf of the Buyer in connection with this
Repurchase Agreement or any of the other Repurchase Documents and any amendment,
supplement or other modification or waiver related hereto or thereto, whether
incurred heretofore or hereafter, which expenses shall include the cost of
title, lien, judgment and other record searches; attorneys' fees; and costs of
preparing and recording any UCC financing statements or other filings necessary
to perfect the security interest created hereby.

"Fannie Mae"  shall mean Fannie Mae, or any
successor thereto.

"Fidelity Insurance" shall mean insurance
coverage with respect to employee errors, omissions, dishonesty, forgery, theft,
disappearance and destruction, robbery and safe burglary, property (other than
money and securities) and computer fraud in an aggregate amount acceptable to
Seller's regulators.

"Financial Statements" shall mean the
consolidated financial statements of the Seller prepared in accordance with GAAP
for the year or other period then ended. Such financial statements will be
audited, in the case of annual statements, by PricewaterhouseCoopers LLP or such
other independent certified public accountants approved by the Buyer (which
approval shall not be unreasonably withheld).

"First Payment Default" shall mean, with
respect to a Mortgage Loan, the failure of the Mortgagor to make the first
Monthly Payment due under the Mortgage Loan on or before its scheduled Due
Date.

"FHA" shall mean the Federal Housing
Administration, an agency within the United States Department of Housing and
Urban Development, or any successor thereto, and including the Federal Housing
Commissioner and the Secretary of Housing and Urban Development where
appropriate under the FHA Regulations.

"FHA Approved Mortgagee" shall mean a
corporation or institution approved as a mortgagee by the FHA under the National
Housing Act, as amended from time to time, and applicable FHA Regulations, and
eligible to own and service mortgage loans such as the FHA Loans.

"FHA Loan" shall mean a Mortgage Loan which
is the subject of an FHA Mortgage Insurance Contract.

"FHA Mortgage Insurance" shall mean,
mortgage insurance authorized under the National Housing Act, as amended from
time to time, and provided by the FHA.

"FHA Mortgage Insurance Contract" shall mean
the contractual obligation of the FHA respecting the insurance of a Mortgage
Loan.

"FHA Regulations" shall mean the regulations
promulgated by the Department of Housing and Urban Development under the
National Housing Act, as amended from time to time and codified in 24 Code of
Federal Regulations, and other Department of Housing and Urban Development
issuances relating to FHA Loans, including the related handbooks, circulars,
notices and mortgagee letters.

"Fitch" shall mean Fitch Ratings, Inc., or
any successor thereto.

"Freddie Mac" shall mean Freddie Mac, or any
successor thereto.

"GAAP" shall mean generally accepted
accounting principles in the United States of America, applied on a consistent
basis and applied to both classification of items and amounts, and shall
include, without limitation, the official interpretations thereof by the
Financial Accounting Standards Board, its predecessors and successors.

"Ginnie Mae" shall mean the Government
National Mortgage Association and any successor thereto.

"Governmental Authority" shall mean the
government of the United States of America or of any state, county, municipality
or other political subdivision thereof or any governmental body, agency,
authority, department or commission (including, without limitation, any taxing
authority) or any instrumentality or officer of any of the foregoing (including,
without limitation, any court or tribunal) exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government
and any corporation, partnership or other entity directly or indirectly owned by
or controlled by the foregoing.

"Guarantee" shall mean, as to any Person,
any obligation of such Person directly or indirectly guaranteeing any
Indebtedness of any other Person or in any manner providing for the payment of
any Indebtedness of any other Person or otherwise protecting the holder of such
Indebtedness against loss (whether by virtue of partnership arrangements, by
agreement to keep-well, to purchase assets, goods, securities or services, or to
take-or-pay or otherwise); provided that the term "Guarantee"
shall not include endorsements for collection or deposit in the ordinary course
of business.  The amount of any Guarantee of a Person shall be deemed to be an
amount equal to the stated or determinable amount of the primary obligation in
respect of which such Guarantee is made or, if not stated or determinable, the
maximum reasonably anticipated liability in respect thereof as determined by
such Person in good faith.  The terms "Guarantee" and
"Guaranteed" used as verbs shall have correlative meanings.

"HELOC" shall mean a home equity revolving
line of credit secured by a mortgage, deed of trust or other instrument creating
a first or second lien on the related Mortgaged Property, which lien secures the
related line of credit and (i) that is underwritten in accordance with
Seller's Underwriting Guidelines and (ii) that either (a) will be sold
or securitized by the Seller or (b) is subject to a Takeout Commitment.

"High Cost Mortgage Loan" shall mean a
Mortgage Loan which (a) is subject to Section 226.32 of Regulation Z or any
similar state law (relating to high interest rate credit/lending transactions),
or (b) contains any term or condition, or involve any loan origination practice,
that has been defined as "predatory", "covered" (other than New Jersey
Covered Loans) or "threshold" under applicable federal, state or local law, or
which has been expressly categorized as an "unfair" or "deceptive" term,
condition, or practice in any applicable federal, state or local law (or the
regulations promulgated thereunder) dealing with "predatory" or "high cost"
mortgage lending (or a similarly classified loan using different terminology
under a law, regulation or ordinance imposing heightened regulatory scrutiny or
additional legal liability for residential mortgage loans having high interest
rates, points and/or fees).

"HUD" shall mean the Department of Housing
and Urban Development.

"Income" shall mean, with respect to any
Mortgage Loan at any time, any principal thereof then payable and all interest,
dividends or other distributions payable thereon.

"Indebtedness" shall mean, with respect to
any Person, (a) obligations created, issued or incurred by such Person for
borrowed money (whether by loan, the issuance and sale of debt securities or the
sale of Property to another Person subject to an understanding or agreement,
contingent or otherwise, to repurchase such Property from such Person);
(b) obligations of such Person to pay the deferred purchase or acquisition
price of Property or services, other than trade accounts payable (other than for
borrowed money) arising, and accrued expenses incurred, in the ordinary course
of business, so long as such trade accounts payable are payable within 90 days
of the date the respective goods are delivered or the respective services are
rendered; (c) Indebtedness of others secured by a Lien on the Property of
such Person, whether or not the respective Indebtedness so secured has been
assumed by such Person; (d) obligations (contingent or otherwise) of such
Person in respect of letters of credit or similar instruments issued or accepted
by banks and other financial institutions for the account of such Person;
(e) Capital Lease Obligations of such Person; (f) obligations of such
Person under repurchase agreements, sale/buy-back agreements or like
arrangements; (g) Indebtedness of others Guaranteed by such Person;
(h) all obligations of such Person incurred in connection with the
acquisition or carrying of fixed assets by such Person; and
(i) Indebtedness of general partnerships of which such Person is a general
partner. 

"Interest Rate Protection Agreement" shall
mean, with respect to any or all of the Purchased Mortgage Loans, any short sale
of a US Treasury Security, or futures contract, or mortgage related security, or
Eurodollar futures contract, or options related contract, or interest rate swap,
cap or collar agreement or Take-out Commitment, or similar arrangement providing
for protection against fluctuations in interest rates or the exchange of nominal
interest obligations, either generally or under specific contingencies, entered
into by a Seller and an Affiliate of the Buyer, and acceptable to the Buyer.

"Jumbo Mortgage Loan" shall mean a first
lien Mortgage Loan with a principal balance of not more than $2,000,000 that
(i) except with respect to the original principal balance thereof, conforms
to the requirements for securitization or cash purchase by an Agency, and
(ii) that either (a) will be sold or securitized by the Seller or
(b) is subject to Takeout Commitment.

"Late Payment Fee" shall mean the excess of
the Price Differential paid as a result of its calculation at the Post-Default
Rate over the Price Differential as would have been calculated at the Pricing
Rate. 

"Law" shall mean, any law, treaty, rule or
regulation or determination of an arbitrator or court or other Governmental
Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject.

"LIBOR Period" shall mean, with respect to
each Payment Date, the period from and including the immediately preceding
Payment Date (or, with respect to the first LIBOR Period for each Transaction,
from and including the related Purchase Date) to but excluding such Payment
Date, unless otherwise agreed to by the Buyer and the Seller and set forth in
the related Confirmation.

"LIBOR Period Commencement Date" shall mean
(a) with respect to the initial LIBOR Period with respect to a Transaction,
the Purchase Date, and (b) with respect to each succeeding LIBOR Period
with respect to a Transaction, the Payment Date, or if the LIBOR Period is other
than one month, the last day of the immediately preceding LIBOR Period.

"LIBOR Rate" shall mean, with respect to
each day during the applicable LIBOR Period, the rate per annum equal to the one
month British Bankers Association Rate as reported on the display designated as
"BBAM" "Page DG8 4a" on Bloomberg (or such other display as
may replace "BBAM" "Page DG8 4a on Bloomberg), as of 8:00 a.m.,
New York City time, on the date two Business Days prior to the commencement of
such LIBOR Period, and if such rate shall not be so quoted, or if the related
LIBOR Period shall be less than one month, the rate per annum at which the Buyer
or its Affiliate is offered dollar deposits at or about 8:00 a.m., New York City
time, on the date two Business Days prior to the commencement of the such LIBOR
Period, by prime banks in the interbank eurodollar market where the eurodollar
and foreign currency exchange operations in respect of its Transactions are then
being conducted for delivery on such day for a period of one month or such other
period as agreed upon in writing by the Buyer and the Seller and in an amount
comparable to the amount of the Transactions outstanding on such day.

"Lien" shall mean any lien, claim, charge,
restriction, pledge, security interest, mortgage, deed of trust or other
encumbrance.

"Loan-to-Value Ratio" or
"LTV" shall mean with respect to any Mortgage Loan, the ratio
of the original outstanding principal amount of such Mortgage Loan to the lesser
of (a) the Appraised Value of the Mortgaged Property at origination or
(b) if the Mortgaged Property was purchased within 12 months of the
origination of such Mortgage Loan, the purchase price of the Mortgaged Property.

"Margin Call" shall have the meaning
specified in Section 4.

"Margin Deficit" shall have the meaning
specified in Section 4.

"Margin Excess" shall have the meaning
specified in Section 4(e)

"Market Value" shall mean, as of any date
with respect to any Purchased Mortgage Loan, the price at which such Mortgage
Loan could readily be sold as determined by the Buyer in its sole discretion.
Without limiting the generality of the foregoing, the Seller acknowledges that
the Market Value of a Purchased Mortgage Loan may be reduced to zero by Buyer
if:

	such Purchased Mortgage Loan ceases to be an Eligible
Mortgage Loan;

	the Purchased Mortgage Loan has been released from the
possession of the Custodian under the Custodial Agreement (other than to a Take-
out Investor pursuant to a Bailee Letter) for a period in excess of 10 calendar
days;

	the Purchased Mortgage Loan is a Wet-Ink Mortgage Loan
for which the related Mortgage File has not been received and certified by the
Custodian by the seventh Business Day following the related Purchase Date;

	such Purchased Mortgage Loan is a Delinquent Mortgage
Loan;

	such Purchased Mortgage Loan is a New Jersey Covered Loan
and has not been made subject to a Takeout Commitment on or before the date
which is 30 days after the related Purchase Date;

	such Purchased Mortgage Loan is rejected by the related
Takeout Investor;

	such Purchased Mortgage Loan has been subject to a
Transaction hereunder for period of greater than (i) with respect to each New
Jersey Covered Loan, 45 days, or (ii) with respect to each Mortgage Loan other
than a New Jersey Covered Loan, 90 days;

	the Buyer has determined in its sole discretion that the
Purchased Mortgage Loan is not eligible for whole loan sale or securitization in
a transaction consistent with the prevailing sale and securitization industry
with respect to substantially similar Mortgage Loans;

	such Purchased Mortgage Loan contains a breach of a
representation or warranty made by the Seller in this Repurchase Agreement or
the Custodial Agreement;

	when the Purchase Price for such Purchased Mortgage Loan
is added to other Purchased Mortgage Loans, the aggregate Purchase Price of all
HELOCs exceeds $100,000,000;

	when the Purchase Price for such Purchased Mortgage Loan
is added to other Purchased Mortgage Loans, the aggregate Purchase Price of all
Sub-Prime Mortgage Loans that are Purchased Mortgage Loans exceeds $30,000,000;

	when the Purchase Price for such Purchased Mortgage Loan
is added to other Purchased Mortgage Loans, the aggregate Purchase Price of all
Wet-Ink Mortgage Loans that are Purchased Mortgaged Loans exceeds
$50,000,000;

	when the Purchase Price for such Purchased Mortgage Loan
is added to other Purchased Mortgage Loans, the aggregate Purchase Price of all
Super Jumbo Mortgage Loans that are Purchased Mortgaged Loans exceeds
$10,000,000; or

	when the Purchase Price for such Purchased Mortgage Loan
is added to other Purchased Mortgage Loans, the aggregate Purchase Price of all
Aged Loans that are Purchased Mortgaged Loans exceeds $10,000,000.

"Material Adverse Effect" shall mean a
material adverse effect on (a) the Property, business, operations,
financial condition or prospects of the Seller or any Affiliate, (b) the
ability of the Seller or any Affiliate to perform its obligations under any of
the Repurchase Documents to which it is a party, (c) the validity or
enforceability of any of the Repurchase Documents, (d) the rights and
remedies of the Buyer or any Affiliate under any of the Repurchase Documents,
(e) the timely payment of any amounts payable under the Repurchase
Documents, or (f) the Market Value of the Purchased Mortgage Loans.

"Maximum Purchase Price" shall mean
$200,000,000.

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

"MERS System" shall mean the system of
recording transfers of mortgages electronically maintained by MERS.

"Monthly Payment" shall mean the scheduled
monthly payment of principal and interest on a Mortgage Loan.

"Moody's" shall mean Moody's Investor's
Service, Inc. or any successors thereto.

"Mortgage" shall mean each mortgage,
assignment of rents, security agreement and fixture filing, or deed of trust,
assignment of rents, security agreement and fixture filing, deed to secure debt,
assignment of rents, security agreement and fixture filing, or similar
instrument creating and evidencing a first lien or second lien on real property
and other property and rights incidental thereto.

"Mortgage File" shall mean, with respect to
a Mortgage Loan, the documents and instruments relating to such Mortgage Loan
and set forth in Exhibit VI hereto.

"Mortgage Interest Rate" shall mean the rate
of interest borne on a Mortgage Loan from time to time in accordance with the
terms of the related Mortgage Note.

"Mortgage Loan" shall mean any first or
second lien, one-to-four-family residential mortgage loan, HELOC, Jumbo Mortgage
Loan, Sub-Prime Mortgage Loan or Conforming Mortgage Loan evidenced by a
Mortgage Note and secured by a Mortgage, which Mortgage Loan is subject to a
Transaction hereunder, which in no event shall include any mortgage loan which
(a) is subject to Section 226.32 of Regulation Z or any similar state law
(relating to high interest rate credit/lending transactions), (b) includes
any single premium credit life or accident and health insurance or disability
insurance, or (c) is a High Cost Mortgage Loan.

"Mortgage Loan Schedule" shall mean with
respect to any Transaction as of any date, a mortgage loan schedule in the form
of a computer tape or other electronic medium generated by the Seller and
delivered to Buyer and the Custodian, which provides information (including,
without limitation, the information set forth on Exhibit V attached
hereto) relating to the Purchased Mortgage Loans in a format acceptable to the
Buyer.

"Mortgage Loan Schedule and Exception
Report" shall have the meaning set forth in the applicable Custodial
Agreement.

"Mortgage Note" shall mean the promissory
note or other evidence of the indebtedness of a Mortgagor secured by a
Mortgage.

"Mortgaged Property" shall mean the real
property securing repayment of the debt evidenced by a Mortgage Note.

"Mortgagor" shall mean the obligor or
obligors on a Mortgage Note, including any Person who has assumed or guaranteed
the obligations of the obligor thereunder.

"Multiemployer Plan" shall mean, with
respect to any Person, a "multiemployer plan" as defined in Section
4001(a)(3) of ERISA which is or was at any time during the current year or the
immediately preceding five years contributed to by such Person or any ERISA
Affiliate thereof on behalf of its employees and which is covered by Title IV of
ERISA.

"Net Income" shall mean, for any Person for
any period, the net income of such Person for such period as determined in
accordance with GAAP.

"New Jersey Covered Loan" shall mean a
Mortgage Loan that is designated as a "covered home loan" (but not a
"high-cost home loan") under the New Jersey Home Ownership Security
Act, N.J.S.A. 46:10B-22.

"Non-Excluded Taxes" shall have the meaning
set forth in Section 7(a) hereof.

 "Obligations" shall mean (a) any
amounts due and payable by the Seller to Buyer in connection with a Transaction
hereunder, together with interest thereon (including interest which would be
payable as post-petition interest in connection with any bankruptcy or similar
proceeding) and all other fees or expenses which are payable hereunder or under
any of the Repurchase Documents and (b) all other obligations or amounts
due and payable by the Seller to the Buyer or an Affiliate of Buyer under any
other contract or agreement.

"Other Taxes" shall have the meaning set
forth in Section 7(b) hereof.

"Payment Date" shall mean the 5th
day of each month, or if such date is not a Business Day, the Business Day
immediately preceding the last day of the month.

"PBGC" shall mean the Pension Benefit
Guaranty Corporation or any entity succeeding to any or all of its functions
under ERISA.

"Periodic Advance Repurchase Payment" shall
have the meaning specified in Section 5(a).

"Person" shall mean any individual,
corporation, company, voluntary association, partnership, joint venture, limited
liability company, trust, unincorporated association or government (or any
agency, instrumentality or political subdivision thereof).

"Plan" shall mean, with respect to any
Person, any employee benefit or similar plan that is or was at any time during
the current year or immediately preceding five years established or maintained
by such Person or any ERISA Affiliate thereof and that is covered by Title IV of
ERISA, other than a Multiemployer Plan.

"PMI Policy" shall mean a policy of primary
mortgage guaranty insurance issued by a Qualified Insurer, as required by this
Repurchase Agreement with respect to certain Mortgage Loans.

"Post-Default Rate" shall mean a rate equal
to the sum of (a) the Pricing Rate plus (b) two percent (2.00%).

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

"Pricing Rate" shall mean a rate per annum
equal to the sum of (a) the LIBOR Rate plus (b) the Pricing
Spread.

"Pricing Spread" shall mean:

	with respect to Transactions the subject of which are
Mortgage Loans which are Conforming Mortgage Loans other than Wet-Ink Loans,
0.75%;

	with respect to Transactions the subject of Mortgage
Loans which are Jumbo Mortgage Loans which are other than Wet-Ink Loans,
0.75%;

	with respect to Transactions the subject of which are
Mortgage Loans which are Conforming Mortgage Loans which are Wet-Ink Loans,
0.875%;

	with respect to Transactions the subject of which are
Mortgage Loans which are Jumbo Mortgage Loans which are Wet-Ink Loans,
0.875%;

	with respect to Transactions the subject of which are
Mortgage Loans which are Super Jumbo Mortgage Loans, 1.0%;

	with respect to Transactions the subject of which are
Mortgage Loans which are Sub-Prime Mortgage Loans, 1.0%; or

	with respect to Transactions the subject of which are
Mortgage Loans which are HELOCs, 1.0%.

"Property" shall mean any right or interest
in or to property of any kind whatsoever, whether real, personal or mixed and
whether tangible or intangible.

"Purchase Date" shall mean the date on which
Purchased Mortgage Loans are transferred by Seller to the Buyer or its
designee.

"Purchase Price" shall mean, 

	on the Purchase Date, the price at which each Purchased
Mortgage Loan is transferred by Seller to Buyer which shall equal the applicable
Purchase Price Percentage multiplied by the lesser of (i) the Market Value
of such Mortgage Loan on the Purchase Date and (ii) the outstanding
principal balance of the Mortgage Loan; and

	thereafter, except where Buyer and Seller agree
otherwise, such Purchase Price decreased by the amount of any cash, Income and
Periodic Advance Repurchase Payments actually received by Buyer pursuant to
Sections 5 or applied to reduce Seller's obligations under Section 4(b)
hereof.

"Purchase Price Percentage" shall
mean:

	with respect to each Mortgage Loan that is a Buyer
Takeout Mortgage Loan, 99%;

	with respect to each Conforming Mortgage Loan which is
not a Wet-Ink Loan, an Aged Loan or a Buyer Takeout Mortgage Loan, 98%;

	with respect to each HELOC which is not a Wet-Ink Loan,
an Aged Loan or a Buyer Takeout Mortgage Loan, 98%;

	with respect to each Jumbo Mortgage Loan which is not a
Wet-Ink Mortgage Loan, an Aged Loan or a Buyer Takeout Mortgage Loan,
98%;

	with respect to each Conforming Mortgage Loan, Jumbo
Mortgage Loan  or HELOC which is a Wet-Ink Mortgage Loan, 97%;

	with respect to each Sub-Prime Mortgage or Super Jumbo
Mortgage Loan which is a Wet-Ink Mortgage Loan, 96%; 

	with respect to each Sub-Prime Mortgage Loan which is not
a Wet-Ink Loan, an Aged Loan or a Buyer Takeout Mortgage Loan, 96%;

	with respect to each Super Jumbo Mortgage Loan which is
not a Wet-Ink Loan, an Aged Loan or a Buyer Takeout Mortgage Loan, 96%;
and

	with respect to each Aged Loan, 50%.

"Purchased Mortgage Loan Report" shall mean
a report, delivered with each Transaction Request, on the last day of each month
(or if such date is not a Business Day, the next preceding Business Day), or
upon the request of the Buyer, including a Mortgage Loan Schedule in the form of
Exhibit V hereto, setting forth information with respect to the Purchased
Mortgage Loans (and Mortgage Loans proposed to be the subject of a Transaction
on the related Purchase Date, if applicable).

"Purchased Mortgage Loans" shall mean the
Mortgage Loans sold by the Seller to Buyer in a Transaction, and any Additional
Purchased Mortgage Loans as evidenced by a Confirmation and a Trust Receipt.

"Qualified Insurer" shall mean a mortgage
guaranty insurance company duly authorized and licensed where required by law to
transact mortgage guaranty insurance business and acceptable under the
Underwriting Guidelines.

"Rating Agency" shall mean any of S&P,
Moody's or Fitch.

"Records" shall mean all instruments,
agreements and other books, records, and reports and data generated by other
media for the storage of information maintained by Seller or any other person or
entity with respect to a Purchased Mortgage Loan. Records shall include the
Mortgage Notes, any Mortgages, the Mortgage Files, the credit files related to
the Purchased Mortgage Loan and any other instruments necessary to document or
service a Mortgage Loan.

"Regulations T, U and X" shall mean
Regulations T, U and X of the Board of Governors of the Federal
Reserve System (or any successor), as the same may be modified and supplemented
and in effect from time to time.

"Reportable Event" shall mean any of the
events set forth in Section 4043(b) of ERISA, other than those events as to
which the thirty day notice period is waived under subsections .13, .14, .16,
..18, .19 or .20 of PBGC Reg.    2615.

"Repurchase Agreement" shall mean this
Master Repurchase Agreement between Buyer and the Seller, dated as of the date
hereof as the same may be further amended, supplemented or otherwise modified in
accordance with the terms hereof.

"Repurchase Assets" shall have the meaning
provided in Section 8 hereof.

"Repurchase Date" shall mean the date on
which the Seller is to repurchase the Purchased Mortgage Loans subject to a
Transaction from Buyer as specified in the related Confirmation, or if not so
specified on a date requested pursuant to Section 3(d) or on the
Termination Date, including any date determined by application of the provisions
of Sections 3 or 14, or the date identified to Buyer by the Seller as
the date that the related Mortgage Loan is to be sold pursuant to a Take-out
Commitment.

"Repurchase Documents" shall mean this
Repurchase Agreement, the Custodial Agreement, the Electronic Tracking
Agreement, if applicable, a Servicer Notice, if any, and the Account
Agreement.

"Repurchase Price" shall mean the price at
which Purchased Mortgage Loans are to be transferred from Buyer or its designee
to the Seller upon termination of a Transaction, which will be determined in
each case (including Transactions terminable upon demand) as the sum of the
Purchase Price and the Price Differential as of the date of such
determination.

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

"Responsible Officer" shall mean an officer
of the Seller listed on Exhibit XI hereto, as such Exhibit XI may
be amended from time to time.

"Reset Date" shall mean the last day of the
related LIBOR Period.

"S&P" shall mean Standard & Poor's
Ratings Services, or any successor thereto.

"Second Lien Mortgage Loan" shall mean a
Mortgage Loan secured by a second lien on the related Mortgaged Property.

"Seller" shall mean E-Loan, Inc., a Delaware
corporation, or any successor in interest thereto.

"Servicer" shall mean E-Loan, Inc. or any
successor or permitted assigns.

"Servicer Notice" shall mean the notice
acknowledged by the Servicer substantially in the form of Exhibit IX
hereto.

"Servicing Agreement" shall mean any
servicing agreement entered into among a Seller and a Servicer, as the same may
be amended from time to time.

"Settlement Account" shall have the meaning
set forth in of the Custodial Agreement.

"Settlement Account Control Agreement" shall
mean the Settlement Account Control Agreement entered into among the Buyer, the
Seller and the Custodian, dated as of the date hereof as the same may be further
amended, supplemented or otherwise modified in accordance with its terms.

"Settlement Agent" shall mean with respect
to any Transaction the subject of which is a Wet-Ink Mortgage Loan, the entity
approved by Buyer, in its sole discretion, which may be a title company, escrow
company or attorney in accordance with local law and practice in the
jurisdiction where the related Wet-Ink Mortgage Loan is being originated.  A
Settlement Agent is deemed approved unless Buyer notifies Seller otherwise at
any time electronically or in writing.

"Single-Employer Plan" shall mean a single-
employer plan as defined in Section 4001(a)(15) of ERISA which is subject to the
provisions of Title IV of ERISA.

"Subsidiary" shall mean, with respect to any
Person, any corporation, partnership or other entity of which at least a
majority of the securities or other ownership interests having by the terms
thereof ordinary voting power to elect a majority of the board of directors or
other persons performing similar functions of such corporation, partnership or
other entity (irrespective of whether or not at the time securities or other
ownership interests of any other class or classes of such corporation,
partnership or other entity shall have or might have voting power by reason of
the happening of any contingency) is at the time directly or indirectly owned or
controlled by such Person or one or more Subsidiaries of such Person or by such
Person and one or more Subsidiaries of such Person.

"Sub-Prime Mortgage Loan" shall mean a first
lien Mortgage Loan which originated in accordance with the criteria established
by Buyer for sub-prime mortgage loans, as determined by Buyer in its sole
discretion, and which (i) will be sold by the Seller within 90 days of
origination and (ii) are eligible for securitization or whole loan
purchase.

"Super Jumbo Mortgage Loan" shall
mean a Jumbo Mortgage Loan with a principal balance of greater than $1,000,000
and not greater than $2,000,000.

"Takeout Commitment" means a commitment of
Seller to sell one or more Mortgage Loans to a Takeout Investor, and the
corresponding Takeout Investor's commitment back to Seller to effectuate the
foregoing.

"Takeout Investor"  shall mean any
institution which has made a Takeout Commitment and has been approved by
Buyer.

"Tangible Net Worth" shall mean, for any
Person as of a particular date,

(a)all amounts which would be included under capital on a
balance sheet of such Person at such date, determined in accordance with GAAP,
less

(b)(i) amounts owing to such Person from
Affiliates, or from officers, employees, shareholders or other Persons similarly
affiliated with such Person, (ii) intangible assets and (iii) deferred
tax charge.

"Taxes" shall have the meaning set forth in
Section 7(a) hereof.

"Termination Date" shall mean the date which
is 364 days from the date hereof which shall be February 4, 2005.

"Termination Event" shall have the meaning
set forth in Section 13.02 hereof.

"Test Period" shall mean any period of three
(3) consecutive months.

"Transaction" shall have the meaning
specified in Section 1.

"Transaction Request" shall mean a request
from the Seller to Buyer to enter into a Transaction. 

"Trust Receipt" shall have the meaning set
forth in the Custodial Agreement.

"Underwriting Guidelines" shall mean the
underwriting guidelines of the Seller, attached hereto as
Exhibit VII.

"Uniform Commercial Code" shall mean the
Uniform Commercial Code as in effect from time to time in the State of New
York.

"VA" shall mean the U.S. Department of
Veterans Affairs, an agency of the United States of America, or any successor
thereto including the Secretary of Veterans Affairs.

"VA Approved Lender" shall mean a lender
which is approved by the VA to act as a lender in connection with the
origination of VA Loans.

"VA Loan" shall mean a Mortgage Loan which
is subject of a VA Loan Guaranty Agreement as evidenced by a VA Loan Guaranty
Agreement, or a Mortgage Loan which is a vender loan sold by the VA.

"VA Loan Guaranty Agreement" shall mean the
obligation of the United States to pay a specific percentage of a Mortgage Loan
(subject to a maximum amount) upon default of the Mortgagor pursuant to the
Servicemen's Readjustment Act, as amended.

"Wet-Ink Mortgage Loan" shall mean a
Mortgage Loan which any Seller is selling to Buyer simultaneously with the
origination thereof and for which the Mortgage Loan Documents have not been
delivered to the Custodian.

"Wet-Ink Trust Receipt" shall mean a trust
receipt issued by Custodian evidencing Purchased Mortgage Loans which are Wet-
Ink Mortgage Loans, substantially in the form attached to the Custodial
Agreement.

"Wiring Schedule" shall mean, for each Wet-
Ink Mortgage Loan, a schedule setting forth the loan identification number, the
loan amount to be funded by wire transfer and wiring directions for such Wet-Ink
Mortgage Loan.

Section 3.   

    INITIATION; TERMINATION

	Conditions Precedent to Initial Transaction.
Buyer's agreement to enter into the initial Transaction hereunder is subject to
the satisfaction, immediately prior to or concurrently with the making of such
Transaction, of the condition precedent that Buyer shall have received from the
Seller any fees and expenses payable hereunder, and all of the following
documents, each of which shall be satisfactory to Buyer and its counsel in form
and substance:

	The following Repurchase Documents delivered to the
Buyer:

	Repurchase Agreement.  This Repurchase Agreement,
duly executed by the parties thereto;

	Custodial Agreement.  The Custodial Agreement,
duly executed by the parties thereto;

	Account Agreement.  An Account Agreement, duly
executed by the parties thereto in form and substance acceptable to the Buyer;
and

	Electronic Tracking Agreement.  To the extent
Seller is selling Mortgage Loans which are registered on the MERS® System,
an Electronic Tracking Agreement entered into, duly executed and delivered by
the parties thereto, in full force and effect, free of any modification, breach
or waiver.

	Disbursement Agreement.  A Disbursement Agreement,
duly executed by the parties thereto in form and substance acceptable to the
Buyer and the accounts, computer systems and agreements with the Disbursement
Agent necessary systems and agreements with the Disbursement Agent necessary for
distributing the Purchase Price related to Wet-Ink Mortgage Loans under the
Disbursement Agreement shall have been established.

	Settlement Account Control Agreement.  The
Settlement Account Control Agreement, executed and delivered by a duly
authorized officer of each of the Buyer, Seller and Custodian.

	Opinions of Counsel. 

	An opinion or opinions of counsel to the Seller,
substantially in the form of Exhibit II.

	Seller Organizational Documents.  A certificate of
corporate existence of the Seller delivered to Buyer prior to the Effective Date
(or if unavailable, as soon as available thereafter) and certified copies of the
charter and by-laws (or equivalent documents) of the Seller and of all corporate
or other authority for the Seller with respect to the execution, delivery and
performance of the Repurchase Documents and each other document to be delivered
by the Seller from time to time in connection herewith.

	Security Interest.  Evidence that all other
actions necessary or, in the opinion of Buyer, desirable to perfect and protect
Buyer's interest in the Purchased Mortgage Loans and other Repurchase Assets
have been taken, including, without limitation, UCC searches and duly authorized
and filed Uniform Commercial Code financing statements on Form UCC-
1.

	Underwriting Guidelines.  A true and correct copy
of the Underwriting Guidelines certified by an officer of the Seller.

	Insurance.  Evidence that Seller has added Buyer
as an additional insured under the Seller's Fidelity Insurance.

	Other Documents.  Such other documents as Buyer
may reasonably request, in form and substance reasonably acceptable to
Buyer.

	Conditions Precedent to all Transactions.  Upon
satisfaction of the conditions set forth in the Section 3(b), the Buyer may
enter into a Transaction with Seller.  This Agreement is not a commitment by
Buyer to enter into Transactions with Seller or Seller to enter into
Transactions with Buyer but rather sets forth the procedures to be used in
connection with periodic requests for Buyer to enter into Transactions with
Seller.  The parties hereby acknowledges that Buyer and Seller are under no
obligation to agree to enter into, or to enter into, any Transaction pursuant to
this Agreement.  Buyer's agreement to enter into each Transaction (including the
initial Transaction) is subject to the satisfaction of the following further
conditions precedent, both immediately prior to entering into such Transaction
and also after giving effect thereto to the intended use thereof:

	Buyer shall have executed and delivered a Confirmation in
accordance with the procedures set forth in Section 3(c);

	No Termination Event, Default or Event of Default shall
have occurred and be continuing under the Repurchase Documents;

	Both immediately prior to the Transaction and also after
giving effect thereto, the representations and warranties made by the Seller in
Section 11 hereof, shall be true, correct and complete on and as of such
Purchase Date in all material respects with the same force and effect as if made
on and as of such date (or, if any such representation or warranty is expressly
stated to have been made as of a specific date, as of such specific
date);

	After giving effect to the requested Transaction, the
aggregate outstanding Purchase Price for all Purchased Mortgage Loans subject to
then outstanding Transactions under this Repurchase Agreement shall not exceed
the Maximum Purchase Price;

	After giving effect to the requested Transaction, the
Asset Value of all Purchased Mortgage Loans exceeds the aggregate Repurchase
Price for such Transactions; 

	With respect to Transactions the subject of which are
Mortgage Loans other than Wet-Ink Mortgage Loans on or prior to 10 a.m. (New
York Time) one (1) day prior to the related Purchase Date, the Seller shall have
delivered to the Buyer (a) a Transaction Request, and (b) a Purchased Mortgage
Loan Report;

	With respect to Transactions the subject of which are
Wet-Ink Mortgage Loans:

	By 4:00 p.m. (New York City time) one (1) Business Day
prior to the related Purchase Date, the Buyer shall have received the
approximate amount of the related Purchase Price (the "Estimated
Purchase Price");

	By 3:45 p.m. (New York City time) on the related Purchase
Date, the Buyer and the Disbursement Agent shall have received (a) the final
Mortgage Loan Schedule, including, without limitation, a schedule setting forth
the mortgage loan identification number, the Mortgagor name and the approximate
outstanding principal balance of Wet-Ink Mortgage Loans to be purchased by Buyer
on such Purchase Date, (b) an updated report setting forth the approximate
outstanding principal balance of Wet-Ink Mortgage Loans to be purchased by the
Buyer on such Purchase Date and the amount of the related Purchase Price (the
"Actual Purchase Price") and (c) a Wiring Schedule;
and

	By 4:00 p.m. (New York City time) on the related Purchase
Date, the Buyer shall have received a Wet-Ink Trust Receipt for each Wet-Ink
Mortgage Loan with the related Mortgage Loan Schedule attached
thereto.

	The Seller shall have delivered to the Custodian the
Mortgage File with respect to each Purchased Mortgage Loan which is not a Wet-
Ink Mortgage Loan and the Custodian shall have issued a Trust Receipt with
respect to each such Purchased Mortgage Loan to the Buyer and (B) with respect
to each Wet-Ink Mortgage Loan, by no later than 1:00 p.m. (New York Time) on the
seventh Business Day following the applicable Purchase Date, Seller shall
deliver the Mortgage File to the Custodian;

	The Buyer shall have received all fees and expenses of
counsel to the Buyer as contemplated by Sections 15(b) and 27 which
amounts, at the Buyer's option, may be withheld from the proceeds remitted by
Buyer to the Seller pursuant to any Transaction hereunder;

	None of the following shall have occurred and/or be
continuing:

	an event or events shall have occurred in the good faith
determination of the Buyer resulting in the effective absence of a "repo
market" or comparable "lending market" for financing debt
obligations secured by securities or an event or events shall have occurred
resulting in the Buyer not being able to finance Purchased Mortgage Loans
through the "repo market" or "lending market" with
traditional counterparties at rates which would have been reasonable prior to
the occurrence of such event or events; or

	there shall have occurred a material adverse change in
the financial condition of the Buyer which affects (or can reasonably be
expected to affect) materially and adversely the ability of the Buyer to fund
its obligations under this Repurchase Agreement; or

	Each Transaction Request delivered by the Seller
hereunder shall constitute a certification by the Seller that all the conditions
set forth in this Section 3(b) (other than clause (x) hereof) have been
satisfied (both as of the date of such notice or request and as of the date of
such purchase).

	Initiation; Confirmation.  

	The Seller shall deliver a Transaction Request to the
Buyer on or prior to 10:00 a.m. on the date one (1) Business Day prior to
entering into any Transaction.  Such Transaction Request shall include a
Mortgage Loan Schedule with respect to the Mortgage Loans to be sold in such
requested Transaction.  Following receipt of such request, Buyer may agree to
enter into such requested Transaction or may notify Seller of its intention not
to enter into such Transaction.  Buyer shall confirm the terms of each
Transaction by issuing a written confirmation to the Seller promptly after the
parties enter into such Transaction in the form of Exhibit I
attached hereto (a "Confirmation").  Such Confirmation shall
set forth (A) the Purchase Date, (B) the Purchase Price, (C) the
Repurchase Date, (D) the Pricing Rate applicable to the Transaction,
(E) the applicable Purchase Price Percentages, (F) LIBOR Period and
(G) additional terms or conditions not inconsistent with this Repurchase
Agreement.

	The Repurchase Date for each Transaction shall not be
later than the date which is 90 days after the related Purchase Date.  The LIBOR
Period for each Transaction shall be one month, unless agreed to in writing by
the Buyer.

	Each Confirmation, together with this Repurchase
Agreement, shall be conclusive evidence of the terms of the Transaction(s)
covered thereby unless objected to in writing by the Seller no more than
two (2) Business Days after the date the Confirmation was received by the
Seller or unless a corrected Confirmation is sent by Buyer.  An objection sent
by Seller must state specifically that writing which is an objection, must
specify the provision(s) being objected to by the Seller, must set forth such
provision(s) in the manner that the Seller believes they should be stated, and
must be received by Buyer no more than two (2) Business Days after the
Confirmation was received by the Seller.

	Subject to the terms and conditions of this Repurchase
Agreement, during such period the Seller may sell, repurchase and resell
Eligible Mortgage Loans hereunder.

	In no event shall a Transaction be entered into when the
Repurchase Date for such Transaction would be later than the Termination
Date.

	No later than 5:00 p.m., New York City time, one (1)
Business Day prior to the requested Purchase Date, the Seller shall deliver to
the Custodian the Mortgage Loan File pertaining to each Eligible Mortgage Loan
(other than a Wet-Ink Mortgage Loan) to be purchased by the Buyer.

	Subject to the provisions of this Section 3, the
Purchase Price will then be made available to the Seller by the Buyer
transferring, via wire transfer, in the aggregate amount of such Purchase Price
in funds immediately available; provided that the Purchase Price on account of
Wet-Ink Mortgage Loans shall be remitted to the Disbursement Account.

	With respect to Transactions the subject of which are
Wet-Ink Mortgage Loans:

	The conditions set forth in subsection (b)(vii) of this
Section shall have been satisfied.

	Repurchase; Purchase Price Decrease

	The Seller may repurchase Purchased Mortgage Loans
without penalty or premium, subject to the last sentence of this Section
3(d)(i), on any date.  The Repurchase Price payable for the repurchase of
any such Purchased Mortgage Loan shall be reduced as provided in
Section 5(d).  If the Seller intends to make such a repurchase, the Seller
shall give one (1) Business Day's prior written notice thereof to the
Buyer, designating the Purchased Mortgage Loans to be repurchased.  If such
notice is given, the amount specified in such notice shall be due and payable on
the date specified therein, and, on receipt, such amount shall be applied to the
Repurchase Price for the designated Purchased Mortgage Loans.  If any Purchased
Mortgage Loan is repurchased on any date other than the Reset Date for such
Transaction, the Seller shall pay to the Buyer any amount required to compensate
such Buyer for any additional losses, costs or expenses which it may reasonably
incur as a result of such repurchase, including, without limitation, any loss,
cost or expense incurred by reason of the liquidation or reemployment of
deposits or other funds acquired by the Buyer to fund or maintain such
Transaction.

	Seller may at any time, and from time to time, request a
Purchase Price Decrease (a "Purchase Price Decrease") by
sending a notice to the Buyer at least one (1) Business Day prior to the date
that the Seller intends to effectuate such Purchase Price Decrease, specifying
the Purchase Price Decrease Date (a "Purchase Price Decrease
Date") of such decrease (a "Purchase Price Decrease
Notice").  The Purchase Price Decrease amount shall be due and payable
in cash on the Purchase Price Decrease Date specified therein.  If a Purchase
Price Decrease Notice is given, such Purchase Price Decrease Notice shall be
revocable at any time prior to 12:00 noon (New York City time) on the Business
Day preceding the requested Purchase Price Decrease Date by delivery of written
notice thereof to the Buyer. Notwithstanding the foregoing, any Purchase Price
Decrease must be in an amount not less than $1,000,000.

	On the Repurchase Date, termination of the Transaction
will be effected by reassignment to the Seller or its designee of the Purchased
Mortgage Loans (and any Income in respect thereof received by Buyer not
previously credited or transferred to, or applied to the obligations of, the
Seller pursuant to Section 5) against the simultaneous transfer of the
Repurchase Price to an account of Buyer.  The Seller is obligated to obtain the
Mortgage Files from Buyer or its designee at the Seller's expense on the
Repurchase Date.  

Section 4.   
    MARGIN AMOUNT MAINTENANCE

	The Buyer shall determine the Market Value of the
Purchased Mortgage Loans on a weekly basis, or at such intervals as determined
by the Buyer in its sole discretion.

	If at any time the aggregate Asset Value of all related
Purchased Mortgage Loans subject to all Transactions is less than the aggregate
Repurchase Price for all such Transactions (a "Margin
Deficit"), then Buyer may by notice to Seller (as such notice is more
particularly set forth below, a "Margin Call"), require Seller
to transfer to Buyer or its designee cash or Eligible Mortgage Loans approved by
the Buyer in its sole discretion ("Additional Purchased Mortgage
Loans") so that the aggregate Asset Value of the Purchased Mortgage
Loans, including any such cash or Additional Purchased Mortgage Loans or cash,
will thereupon equal or exceed the aggregate Purchase Price for all
Transactions. If Buyer delivers a Margin Call to the Seller on or prior to 9:30
a.m. (New York City time) on any Business Day, then the Seller shall transfer
cash or Additional Purchased Mortgage Loans to Buyer no later than 5 p.m. (New
York City time) that day.  In the event the Buyer delivers a Margin Call to a
Seller after 9:30 a.m. (New York City time) on any Business Day, the Seller
shall be required to transfer cash or Additional Purchased Mortgage Loans no
later than 5 p.m. (New York City time) on the subsequent Business Day.

	Buyer's election, in its sole and absolute discretion,
not to make a Margin Call at any time there is a Margin Deficit shall not in any
way limit or impair its right to make a Margin Call at any time a Margin Deficit
exists.

	Any cash transferred to the Buyer pursuant to Section
4(b) above shall be credited to the Repurchase Price of the related
Transactions.

	On any day on which the aggregate Asset Value of the
Purchased Mortgage Loans exceeds the then outstanding aggregate Purchase Price
of all  Transactions (a "Margin Excess"), so long as no Default
or Event of Default has occurred and is continuing, Buyer shall, upon receipt of
written request from Seller remit an amount equal to such Margin Excess to
Seller as additional Purchase Price with respect to the Transactions, provided
that in no event shall the Purchase Price exceed the Purchase Price as
calculated on the applicable Purchase Date.  Any request received by the Buyer
after 2:00 p.m. (eastern time) shall be remitted by the Buyer on the next
Business Day.

	Buyer shall not be obligated to remit the additional
Purchase Price requested pursuant to a request for Margin Excess which (i) Buyer
reasonably determines is based on erroneous information or would result in a
Transaction other than in accordance with the terms of this Agreement, or (ii)
does not reflect Buyer's current determination of Market Value as provided in
the definition thereof.

Section 5.   
    INCOME PAYMENTS

	Notwithstanding that Buyer and the Seller intend that
the Transactions hereunder be sales to Buyer of the Purchased Mortgage Loans,
Seller shall pay to Buyer the accreted value of the Price Differential (less any
amount of such Price Differential previously paid by the Seller to Buyer) plus
the amount of any unpaid Margin Deficit (each such payment, a "Periodic
Advance Repurchase Payment") on each Payment Date.  Notwithstanding the
preceding sentence, if Seller fails to make all or part of the Periodic Advance
Repurchase Payment by 5:00 p.m. (New York time) on any Payment Date, the Pricing
Rate shall be equal to the Post-Default Rate until the Periodic Advance
Repurchase Payment is received in full by Buyer.

	The Seller shall hold for the benefit of, and in trust
for, Buyer all Income, including without limitation all Income received by or on
behalf of the Seller with respect to such Purchased Mortgage Loans.  All Income
shall be held in trust for Buyer, shall constitute the property of Buyer and
shall not be commingled with other property of the Seller, any Affiliate of the
Seller except as expressly permitted above.  With respect to each Payment Date,
the Seller shall remit all Income as follows:

	first, to the payment of all costs and fees payable by
the Seller pursuant to this Repurchase Agreement;

	second, to the Buyer in payment of any accrued and unpaid
Price Differential; and

	third, without limiting the rights of Buyer under Section
4 of this Repurchase Agreement, to the Buyer, in the amount of any unpaid Margin
Deficit.

	After the occurrence of a Default or an Event of Default,
the Seller shall deposit such Income in a deposit account (the title of which
shall indicate that the funds therein are being held in trust for Buyer) (the
"Collection Account") with a financial institution acceptable
to Buyer and subject to the Account Agreement.  All such Income shall be held in
trust for Buyer, shall constitute the property of Buyer and shall not be
commingled with other property of the Seller or any Affiliate of the Seller
except as expressly permitted above.  Funds deposited in the Collection Account
during any month shall be held therein, in trust for the Buyer, until the next
Payment Date.  

	To the extent that the Buyer receives any funds from a
Takeout Investor with respect to the purchase by such Takeout Investor of a
Mortgage Loan, the Buyer shall promptly apply such funds in accordance with the
same order of priority set forth in Section 5(b) hereof.

	Notwithstanding the preceding provisions, if an Event of
Default has occurred, all funds in the Collection Account shall be withdrawn and
applied as determined by the Buyer.

	Buyer shall offset against the Repurchase Price of each
such Transaction all Income and Periodic Advance Repurchase Payments actually
received by Buyer pursuant to Section 5(a), excluding any Late Payment Fees paid
pursuant to any Periodic Advance Repurchase Payments made at the Post-Default
Rate pursuant to Section 5(a).

Section 6.   
       REQUIREMENTS OF LAW

	If any Requirement of Law (other than with respect to
any amendment made to the Buyer's certificate of incorporation and by-laws or
other organizational or governing documents) or any change in the interpretation
or application thereof or compliance by the Buyer with any request or directive
(whether or not having the force of law) from any central bank or other
Governmental Authority made subsequent to the date hereof:  

	shall subject the Buyer to any tax of any kind whatsoever
with respect to this Repurchase Agreement or any Transaction (excluding net
income taxes branch profits taxes, franchise taxes or similar taxes imposed on
the Buyer as a result of any present or former connection between the Buyer and
the United States, other than any such connection arising solely from the Buyer
having executed, delivered or performed its obligations or received a payment
under, or enforced, this Repurchase Agreement) or change the basis of taxation
of payments to the Buyer in respect thereof;

	shall impose, modify or hold applicable any reserve,
special deposit, compulsory loan or similar requirement against assets held by,
deposits or other liabilities in or for the account of, advances, or other
extensions of credit by, or any other acquisition of funds by, any office of the
Buyer which is not otherwise included in the determination of the LIBOR Rate
hereunder; 

	shall impose on the Buyer any other
condition;

and the result of any of the foregoing is to increase the
cost to the Buyer, by an amount which the Buyer deems to be material, of
entering, continuing or maintaining any Transaction or to reduce any amount due
or owing hereunder in respect thereof, then, in any such case, the Seller shall
promptly pay the Buyer such additional amount or amounts as calculated by the
Buyer in good faith as will compensate the Buyer for such increased cost or
reduced amount receivable.

	If the Buyer shall have determined that the adoption of
or any change in any Requirement of Law (other than with respect to any
amendment made to the Buyer's certificate of incorporation and by-laws or other
organizational or governing documents) regarding capital adequacy or in the
interpretation or application thereof or compliance by the Buyer or any
corporation controlling the Buyer with any request or directive regarding
capital adequacy (whether or not having the force of law) from any Governmental
Authority made subsequent to the date hereof shall have the effect of reducing
the rate of return on the Buyer's or such corporation's capital as a consequence
of its obligations hereunder to a level below that which the Buyer or such
corporation could have achieved but for such adoption, change or compliance
(taking into consideration the Buyer's or such corporation's policies with
respect to capital adequacy) by an amount deemed by the Buyer to be material,
then from time to time, the Seller shall promptly pay to the Buyer such
additional amount or amounts as will compensate the Buyer for such
reduction.

	If the Buyer becomes entitled to claim any additional
amounts pursuant to this Section, it shall promptly notify the Seller of the
event by reason of which it has become so entitled.  A certificate as to any
additional amounts payable pursuant to this Section submitted by the Buyer to
the Seller shall be conclusive in the absence of manifest error.

Section 7.   
       TAXES.

	Any and all payments by the Seller under or in
respect of this Repurchase Agreement shall be made free and clear of, and
without deduction or withholding for or on account of, any and all present or
future taxes, levies, imposts, deductions, charges or withholdings, and all
liabilities (including penalties, interest and additions to tax) with respect
thereto, whether now or hereafter imposed, levied, collected, withheld or
assessed by any taxation authority or other Governmental Authority
(collectively, "Taxes"), unless required by law.  If the Seller
shall be required under any applicable Requirement of Law to deduct or withhold
any Taxes from or in respect of any sum payable under or in respect of this
Repurchase Agreement to the Buyer, (i) the Seller shall make all such deductions
and withholdings in respect of Taxes, (ii) the Seller shall pay the full amount
deducted or withheld in respect of Taxes to the relevant taxation authority or
other governmental authority in accordance with the applicable Requirement of
Law, and (iii) the sum payable by the Seller shall be increased as may be
necessary so that after the Seller has made all required deductions and
withholdings (including deductions and withholdings applicable to additional
sums payable under this Section 7) such Buyer receives an amount equal to the
sum it would have received had no such deductions or withholdings been made in
respect of Non-Excluded Taxes.  For purposes of this Repurchase Agreement, the
term "Non-Excluded Taxes" are Taxes other than, in the case of
the Buyer, Taxes that are imposed on its overall net income (and franchise taxes
imposed in lieu thereof) by the state or foreign jurisdiction under the laws of
which such Buyer is organized or of its principal office, or any political
subdivision thereof, unless such Taxes are imposed as a result of such Buyer
having executed, delivered or performed its obligations or received payments
under, or enforced, this Repurchase Agreement (in which case such Taxes will be
treated as Non-Excluded Taxes).

	If on the date of the assignment pursuant to which a
Buyer assignee becomes a party to this Repurchase Agreement, the Buyer assignor
was entitled to payments under this Section 7, then, to such extent (and only to
such extent), the term "Non-Excluded Taxes" shall include (in
addition to Taxes that may be imposed in the future or other amounts otherwise
includable in Taxes) such Taxes, if any, applicable with respect to such Buyer
assignee on such date.  Any additional Taxes in respect of a Buyer that result
solely and directly from a change in the principal office of such Buyer shall be
treated as any Taxes other than Non-Excluded Taxes ("Excluded
Taxes") unless (A) any such additional Taxes are imposed as a result of
a change in the applicable Requirement of Law, or in the interpretation or
application thereof, occurring after the date of such change or (B) such change
is made pursuant to the terms of Section 7(d) or otherwise as a result of a
request therefor by the Seller.

	In addition, the Seller hereby agrees to pay any present
or future stamp, recording, documentary, excise, property or similar taxes,
charges or levies that arise from any payment made under or in respect of this
Repurchase Agreement or from the execution, delivery or registration of, any
performance under, or otherwise with respect to, this Repurchase Agreement
(collectively, "Other Taxes").

	The Seller hereby agrees to indemnify the Buyer, and to
hold it harmless against, the full amount of Non-Excluded Taxes and Other Taxes,
and the full amount of Taxes of any kind imposed by any jurisdiction on amounts
payable under this Section 7, imposed on or paid by the Buyer, and any liability
(including penalties, additions to tax, interest and expenses) arising therefrom
or with respect thereto.  The indemnity by the Seller provided for in this
Section 7(d) shall apply and be made whether or not the Non-Excluded Taxes or
Other Taxes for which indemnification hereunder is sought have been correctly or
legally asserted.  Amounts payable by the Seller under the indemnity set forth
in this Section 7(d) shall be paid within 10 days from the date on which the
Buyer makes written demand therefor.

	As soon as practicable after the date of any payment of
Taxes or Other Taxes by the Seller to the relevant Governmental Authority, the
Seller will deliver to the Buyer the original or a certified copy of the receipt
issued by such Governmental Authority evidencing payment thereof.

	Without prejudice to the survival of any other agreement
of the Seller hereunder, the agreements and obligations of the Seller contained
in this Section 7 shall survive the termination of this Repurchase Agreement
with respect to Transactions entered into prior to the effective date of
termination.  Nothing contained in this Section 7 shall require the Buyer to
make available any of its tax returns or any other information that it deems to
be confidential or proprietary.

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

Section 8.   
       SECURITY INTEREST

Although the parties intend that all Transactions
hereunder be sales and purchases (other than for accounting and tax purposes)
and not loans, in the event any such Transactions are deemed to be loans, the
Seller hereby pledges to Buyer as security for the performance by the Seller of
its Obligations and hereby grants, assigns and pledges to Buyer a fully
perfected first priority security interest in the Purchased Mortgage Loans, the
Records, and all servicing rights related to the Purchased Mortgage Loans, the
Repurchase Documents (to the extent such Repurchase Documents and the Seller's
right thereunder relate to the Purchased Mortgage Loans), any Property relating
to any Purchased Mortgage Loan or the related Mortgaged Property, any Takeout
Commitments relating to any Purchased Mortgage Loan, all insurance policies and
insurance proceeds relating to any Purchased Mortgage Loan or the related
Mortgaged Property, including but not limited to any payments or proceeds under
any related primary insurance, hazard insurance, FHA Mortgage Insurance
Contracts and VA Loan Guaranty Agreements (if any), any Income relating to any
Purchased Mortgage Loan, the Collection Account, any Interest Rate Protection
Agreements relating to any Purchased Mortgage Loan, and any other instruments,
investment property, contract rights, accounts (including any interest of the
Seller in escrow accounts) and any other contract rights, accounts, payments,
rights to payment (including payments of interest or finance charges) and
general intangibles to the extent that the forgoing relates to any Purchased
Mortgage Loan and any other assets relating to the Purchased Mortgage Loans
(including, without limitation, any other accounts) or any interest in the
Purchased Mortgage Loans, all collateral under any other secured debt facility
between Seller or Affiliates of Seller (other than E-Loan Auto Fund One, LLC) on
the one hand and the Buyer or the Buyer's Affiliates on the other, and any
proceeds (including the related securitization proceeds) and distributions and
any other property, rights, title or interests as are specified on a Trust
Receipt and Mortgage Loan Schedule and Exception Report with respect to any of
the foregoing, in all instances, whether now owned or hereafter acquired, now
existing or hereafter created (collectively, the "Repurchase
Assets").

The Seller hereby authorizes the Buyer to file such financing
statement or statements relating to the Repurchase Assets as the Buyer, at its
option, may deem appropriate.  The Seller shall pay the filing costs for any
financing statement or statements prepared pursuant to this Section 8.

Section 9.   
       PAYMENT, TRANSFER AND CUSTODY

	Unless otherwise mutually agreed in writing, all
transfers of funds to be made by the Seller hereunder shall be made in Dollars,
in immediately available funds, without deduction, set-off or counterclaim, to
the Buyer at the following account maintained by the Buyer: MLMCI, Account No.
00812914, for the account of MLMCI Matchbook, Bankers Trust, N.Y., ABA# 021 001
033, not later than 5:00 p.m. New York City time, on the date on which such
payment shall become due (and each such payment made after such time shall be
deemed to have been made on the next succeeding Business Day).  The Seller
acknowledges that it has no rights of withdrawal from the foregoing
account.

	On the Purchase Date for each Transaction, ownership of
the Purchased Mortgage Loans shall be transferred to the Buyer or its designee
against the simultaneous transfer of the Purchase Price to the following account
of the Seller (or as otherwise directed by the Seller):  Bankers Trust Company,
Account No. 01419663, ABA No. 021001033, for the account of LA ASSET BASED, REF:
ELOAN/MERRILL LYNCH CTOL 38285.  With respect to the Purchased Mortgage Loans
being sold by a Seller on a Purchase Date, the Seller hereby sells, transfers,
conveys and assigns to Buyer or its designee without recourse, but subject to
the terms of this Repurchase Agreement, all the right, title and interest of the
Seller in and to the Purchased Mortgage Loans together with all right, title and
interest in and to the proceeds of any related Repurchase Assets.

	In connection with such sale, transfer, conveyance and
assignment, on or prior to each Purchase Date, the Seller shall deliver or cause
to be delivered and released to Buyer or its designee the Mortgage File for the
related Purchased Mortgage Loans.

Section 10.   
       HYPOTHECATION OR PLEDGE OF PURCHASED Mortgage
Loan

Title to all Purchased Mortgage Loans and Repurchase
Assets shall pass to Buyer and Buyer shall have free and unrestricted use of all
Purchased Mortgage Loans.  Nothing in this Repurchase Agreement shall preclude
the Buyer from engaging in repurchase transactions with the Purchased Mortgage
Loans or otherwise pledging, repledging, transferring, hypothecating, or
rehypothecating the Purchased Mortgage Loans.  Nothing contained in this
Repurchase Agreement shall obligate the Buyer to
segregate any Purchased Mortgage Loans delivered to the Buyer by the
Seller.

Section 11.   
       REPRESENTATIONS

(1) The Seller represents and warrants to the Buyer that
as of the Purchase Date for any Purchased Mortgage Loans by the Buyer from the
Seller and as of the date of this Repurchase Agreement and any Transaction
hereunder and at all times while the Repurchase Documents and any Transaction
hereunder is in full force and effect:

	Acting as Principal.  The Seller will engage in
such Transactions as principal (or, if agreed in writing in advance of any
Transaction by the other party hereto, as agent for a disclosed
principal).

	No Broker.  The Seller has not dealt
with any broker, investment banker, agent, or other person, except for the
Buyer, who may be entitled to any commission or compensation in connection with
the sale of Purchased Mortgage Loans pursuant to this Repurchase
Agreement.

	Financial Statements.  The Seller has heretofore
furnished to the Buyer a copy of its (a) consolidated balance sheet and the
consolidated balance sheets of its consolidated Subsidiaries for the fiscal year
ended December 31, 2002 and the related consolidated statements of income and
retained earnings and of cash flows for the Seller and its consolidated
Subsidiaries for such fiscal year, setting forth in each case in comparative
form the figures for the previous year, with the opinion thereon of
PricewaterhouseCoopers LLP and (b) consolidated balance sheet and the
consolidated balance sheets of its consolidated Subsidiaries for the quarterly
fiscal period(s) of the Seller ended March, June and September 2003 and the
related consolidated statements of income and retained earnings and of cash
flows for the Seller and its consolidated Subsidiaries for such quarterly fiscal
period(s), setting forth in each case in comparative form the figures for the
previous year.  All such financial statements are complete and correct and
fairly present, in all material respects, the consolidated financial condition
of the Seller and its Subsidiaries and the consolidated results of their
operations as at such dates and for such fiscal periods, all in accordance with
GAAP applied on a consistent basis.  Since December 31, 2002, there has been no
material adverse change in the consolidated business, operations or financial
condition of the Seller and its consolidated Subsidiaries taken as a whole from
that set forth in said financial statements nor is the Seller aware of any state
of facts which (without notice or the lapse of time) would or could result in
any such material adverse change.  The Seller does not have, on the date of the
statements delivered pursuant to this section (the "Statement
Date"), any liabilities, direct or indirect, fixed or contingent,
matured or unmatured, known or unknown, or liabilities for taxes, long-term
leases or unusual forward or long-term commitments not disclosed by, or reserved
against in, said balance sheet and related statements, and at the present time
there are no material unrealized or anticipated losses from any loans, advances
or other commitments of the Seller except as heretofore disclosed to the Buyer
in writing.

	Organization, Etc. The Seller is a corporation
duly organized, validly existing and in good standing under the laws of
Delaware.  The Seller (a) has all requisite corporate or other power, and has
all governmental licenses, authorizations, consents and approvals necessary to
own its assets and carry on its business as now being or as proposed to be
conducted, except where the lack of such licenses, authorizations, consents and
approvals would not be reasonably likely to have a Material Adverse Effect; (b)
is qualified to do business and is in good standing in all other jurisdictions
in which the nature of the business conducted by it makes such qualification
necessary, except where failure so to qualify would not be reasonably likely
(either individually or in the aggregate) to have a Material Adverse Effect; and
(c) has full power and authority to execute, deliver and perform its obligations
under the Repurchase Documents.

	Authorization, Compliance, Etc.  The execution and
delivery of, and the performance by the Seller of its obligations under, the
Repurchase Documents to which it is a party (a) are within the Seller's powers,
(b) have been duly authorized by all requisite action, (c) do not violate any
provision of applicable law, rule or regulation, or any order, writ, injunction
or decree of any court or other Governmental Authority, or its organizational
documents, (d) do not violate any indenture, agreement, document or instrument
to which the Seller or any of its Subsidiaries is a party, or by which any of
them or any of their properties, any of the Repurchase Assets is bound or to
which any of them is subject and (e) are not in conflict with, do not result in
a breach of, or constitute (with due notice or lapse of time or both) a default
under, or except as may be provided by any Repurchase Document, result in the
creation or imposition of any Lien upon any of the property or assets of the
Seller or any of its Subsidiaries pursuant to, any such indenture, agreement,
document or instrument.  The Seller is not required to obtain any consent,
approval or authorization from, or to file any declaration or statement with,
any Governmental Authority in connection with or as a condition to the
consummation of the Transactions contemplated herein and the execution, delivery
or performance of the Repurchase Documents to which it is a party.

	Litigation. There are no actions, suits,
arbitrations, investigations (including, without limitation, any of the
foregoing which are pending or threatened) or other legal or arbitrable
proceedings affecting the Seller or any of its Subsidiaries or affecting any of
the Repurchase Assets or any of the other properties of the Seller before any
Governmental Authority which (i) questions or challenges the validity or
enforceability of the Repurchase Documents or any action to be taken in
connection with the transactions contemplated hereby, (ii) makes a claim or
claims in an aggregate amount greater than $100,000, (iii) individually or in
the aggregate, if adversely determined, would have a Material Adverse Effect, or
(iv) requires filing with the SEC in accordance with its regulations.

	Purchased Mortgage Loans.

	The Seller has not assigned, pledged, or otherwise
conveyed or encumbered any Purchased Mortgage Loan to any other Person, and
immediately prior to the sale of such Mortgage Loan to the Buyer, the Seller was
the sole owner of such Purchased Mortgage Loan and had good and marketable title
thereto, free and clear of all Liens, in each case except for Liens to be
released simultaneously with the sale to the Buyer hereunder.

	The provisions of this Repurchase Agreement are effective
to either constitute a sale of Repurchase Assets to the Buyer or to create in
favor of the Buyer a valid security interest in all right, title and interest of
the Seller in, to and under the Repurchase Assets.

	Chief Executive Office/Jurisdiction of
Organization.  On the Effective Date, the Seller's chief executive office
is, and has been, located at 6230 Stoneridge Mall Road, Pleasanton, CA  94588.
The Seller's jurisdiction of organization is Delaware.

	Location of Books and Records.  The location where
the Seller keeps its books and records, including all computer tapes and records
related to the Repurchase Assets is its chief executive office.

	Filing and Payment of Taxes. The Seller has and
its Subsidiaries have filed on a timely basis all federal, state and local tax
and information returns, reports and any other information statements or
schedules that are required to be filed by or in respect of them and have paid
all taxes due pursuant to such returns, reports or other information statements
or schedules or pursuant to any assessment received by them, except for any such
taxes as are being appropriately contested in good faith by appropriate
proceedings diligently conducted and with respect to which adequate reserves
have been provided.  The charges, accruals and reserves on the books of the
Seller and its Subsidiaries in respect of taxes and other governmental charges
are, in the opinion of the Seller, adequate.

	Enforceability.  This Repurchase Agreement and all
of the other Repurchase Documents executed and delivered by the Seller in
connection herewith are legal, valid and binding obligations of the Seller and
are enforceable against the Seller in accordance with their terms except as such
enforceability may be limited by (i) the effect of any applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors
rights generally and (ii) general principles of equity.

	Ability to Perform.  The Seller does not believe,
nor does it have any reason or cause to believe, that it cannot perform each and
every covenant contained in the Repurchase Documents to which it is a party on
its part to be performed

	Material Adverse Effect.  Since December 31, 2002,
there has been no development or event nor, to the Seller's knowledge, any
prospective development or event, which has had or could have a Material Adverse
Effect.

	No Default.  No Default or Event of Default has
occurred and is continuing.

	Underwriting Guidelines.  The Underwriting
Guidelines provided to Buyer are the true and correct Underwriting Guidelines of
the Seller.

	Adverse Selection.  The Seller has not selected
the Purchased Mortgage Loans in a manner so as to adversely affect Buyer's
interests.

	Tangible Net Worth.  On the initial Purchase Date,
the Tangible Net Worth of the Seller is not less than $40,000,000.

	Indebtedness.  The Seller does not have any
Indebtedness, except as disclosed on Schedule 2 to this Repurchase
Agreement.

	Accurate and Complete Disclosure. The information,
reports, financial statements, exhibits and schedules furnished in writing by or
on behalf of the Seller to the Buyer in connection with the negotiation,
preparation or delivery of this Repurchase Agreement and the other Repurchase
Documents or included herein or therein or delivered pursuant hereto or thereto,
when taken as a whole, do not contain any untrue statement of material fact or
omit to state any material fact necessary to make the statements herein or
therein, in light of the circumstances under which they were made, not
misleading.  All written information furnished after the date hereof by or on
behalf of the Seller to the Buyer in connection with this Repurchase Agreement
and the other Repurchase Documents and the transactions contemplated hereby and
thereby will be true, complete and accurate in every material respect, or (in
the case of projections) based on reasonable estimates, on the date as of which
such information is stated or certified.  There is no fact known to the Seller,
after due inquiry, that could reasonably be expected to have a Material Adverse
Effect that has not been disclosed herein, in the other Repurchase Documents or
in a report, financial statement, exhibit, schedule, disclosure letter or other
writing furnished to the Buyer for use in connection with the transactions
contemplated hereby or thereby.

	Margin Regulations.  The use of all funds acquired
by the Seller under this Repurchase Agreement will not conflict with or
contravene any of Regulations T, U or X promulgated by the Board of Governors of
the Federal Reserve System as the same may from time to time be amended,
supplemented or otherwise modified.

	Investment Company.  Neither Seller nor any of its
Subsidiaries is an "investment company" or a company
"controlled" by an "investment company" within the meaning
of the Investment Company Act of 1940, as amended.

	Solvency.  As of the date hereof and immediately
after giving effect to each Transaction, the fair value of the assets of the
Seller is greater than the fair value of the liabilities (including, without
limitation, contingent liabilities if and to the extent required to be recorded
as a liability on the financial statements of the Seller in accordance with
GAAP) of the Seller and the Seller is solvent and, after giving effect to the
transactions contemplated by this Repurchase Agreement and the other Repurchase
Documents, will not be rendered insolvent or left with an unreasonably small
amount of capital with which to conduct its business and perform its
obligations.  The Seller does not intend to incur, nor does it believe that it
has incurred, debts beyond its ability to pay such debts as they mature.  The
Seller is not contemplating the commencement of an insolvency, bankruptcy,
liquidation, or consolidation proceeding or the appointment of a receiver,
liquidator, conservator, trustee, or similar official in respect of itself or
any of its property.

	ERISA. 

	No liability under Section 4062, 4063, 4064 or 4069 of
ERISA has been or is expected by the Seller to be incurred by the Seller or any
ERISA Affiliate thereof with respect to any Plan which is a Single-Employer Plan
in an amount that could reasonably be expected to have a Material Adverse
Effect.

	No Plan of the Seller which is a Single-Employer Plan had
an accumulated funding deficiency, whether or not waived, as of the last day of
the most recent fiscal year of such Plan ended prior to the date hereof.
Neither the Seller nor any ERISA Affiliate thereof is (i) required to give
security to any Plan which is a Single-Employer Plan pursuant to Section 401(a)
(29) of the Code or Section 307 of ERISA, or (ii) subject to a Lien in favor of
such a Plan under Section 302(f) of ERISA.

	Each Plan of the Seller, each of its Subsidiaries and
each of its ERISA Affiliates is in compliance in all material respects with the
applicable provisions of ERISA and the Code, except where the failure to comply
would not result in any Material Adverse Effect.

	Neither the Seller nor any of its Subsidiaries has
incurred a tax liability under Section 4975 of the Code or a penalty under
Section 502(i) of ERISA in respect of any Plan which has not been paid in full,
except where the incurrence of such tax or penalty would not result in a
Material Adverse Effect.

	Neither the Seller nor any of its Subsidiaries or any
ERISA Affiliate thereof has incurred or reasonably expects to incur any
withdrawal liability under Section 4201 of ERISA as a result of a complete or
partial withdrawal from a Multiemployer Plan which will result in withdrawal
liability to the Seller, any of its Subsidiaries or any ERISA Affiliate thereof
in an amount that could reasonably be expected to have a Material Adverse
Effect.

	Agency Approvals. The Seller is HUD/FHA Mortgagee
with a Title II approval and a VA Prior Approval Lender.  The Seller is also
approved by Fannie Mae as an approved lender and Freddie Mac as an approved
seller/servicer.  In each such case, the Seller is in good standing, with no
event having occurred or the Seller having any reason whatsoever to believe or
suspect will occur prior to the issuance of the consummation of the related
Takeout Commitment, as the case may be, including, without limitation, a change
in insurance coverage which would either make the Seller unable to comply with
the eligibility requirements for maintaining all such applicable approvals or
require notification to the relevant Agency or to the Department of Housing and
Urban Development, FHA or VA.  The Seller has adequate financial standing,
servicing facilities, procedures and experienced personnel necessary for the
sound servicing of mortgage loans of the same types as may from time to time
constitute Mortgage Loans and in accordance with Accepted Servicing
Practices.

	Mortgage Loan Schedule.  The information set forth
in the related Mortgage Loan Schedule and all other information or data
furnished by, or on behalf of, Seller to Buyer is complete, true and correct in
all material respects, and Seller acknowledges that Buyer has not verified the
accuracy of such information or data.

	No Reliance.  The Seller  has made its own
independent decisions to enter into the Repurchase Documents and each
Transaction and as to whether such Transaction is appropriate and proper for it
based upon its own judgment and upon advice from such advisors (including
without limitation, legal counsel and accountants) as it has deemed necessary.
Seller is not relying upon any advice from Buyer as to any aspect of the
Transactions, including without limitation, the legal, accounting or tax
treatment of such Transactions.

	Plan Assets.  The Seller is not an employee
benefit plan as defined in Section 3 of  Title I of ERISA, or a plan described
in Section 4975(e)(1) of the Code, and the Purchased Mortgage Loans are not
"plan assets" within the meaning of 29 CFR  2510.3-101 in the Seller's
hands.

Section 12.   
       COVENANTS 

On and as of the date of this Repurchase Agreement and
each Purchase Date and until this Repurchase Agreement is no longer in force
with respect to any Transaction, the Seller covenants as follows:

	Preservation of Existence; Compliance with Law.
The Seller shall:

	Preserve and maintain its legal existence and all of its
material rights, privileges, licenses and franchises necessary for the operation
of its business; 

	Comply with the requirements of all applicable laws,
rules, regulations and orders, whether now in effect or hereafter enacted or
promulgated by any applicable Governmental Authority (including, without
limitation, all environmental laws); 

	Maintain all licenses, permits or other approvals
necessary for the Seller to conduct its business and to perform its obligations
under the Repurchase Documents, and shall conduct its business strictly in
accordance with applicable law;

	Keep adequate records and books of account, in which
complete entries will be made in accordance with GAAP consistently applied;
and

	Permit representatives of the Buyer, upon reasonable
notice (unless an Event of Default shall have occurred and is continuing, in
which case, no prior notice shall be required), during normal business hours, to
examine, copy and make extracts from its books and records, to inspect any of
its Properties, and to discuss its business and affairs with its officers, all
to the extent reasonably requested by the Buyer, subject to the provisions set
forth in Section 27 hereof.

	Taxes, Etc.  

	The Seller shall pay and discharge or cause to be paid
and discharged, when due, or adequately reserve for the payment of, all taxes,
assessments and governmental charges or levies imposed upon it or upon its
income and profits or upon any of its property, real, personal or mixed
(including without limitation, the Repurchase Assets) or upon any part thereof,
as well as any other lawful claims which, if unpaid, might become a Lien upon
such properties or any part thereof, except for any such taxes as are
appropriately contested in good faith by appropriate proceedings diligently
conducted and with respect to which adequate reserves are provided.

	The Seller shall file on a timely basis all federal,
state and local tax and information returns, reports and any other information
statements or schedules required to be filed by or in respect of it and pay all
taxes due pursuant to such returns, reports and other information statements or
schedules or pursuant to any assessment received by it.

	Notice of Proceedings or Adverse Change.  The
Seller shall give notice to the Buyer immediately after a Responsible Officer of
the Seller has any knowledge of:

	the occurrence of any Default or Event of Default or
Termination Event;

	any (a) default or event of default under any
Indebtedness of the Seller or (b) litigation, investigation, regulatory action
or proceeding that is pending or threatened by or against the Seller in any
federal or state court or before any Governmental Authority which, if not cured
or if adversely determined, would reasonably be expected to have a Material
Adverse Effect or constitute a Default or Event of Default, and (c) any Material
Adverse Effect with respect to the Seller;

	any litigation or proceeding that is pending or
threatened against (a) the Seller in which the amount involved exceeds $100,000
and is not covered by insurance, in which injunctive or similar relief is
sought, or which, would reasonably be expected to have a Material Adverse Effect
and (b) any litigation or proceeding that is pending or threatened in connection
with any of the Repurchase Assets, which, if adversely determined, would
reasonably be expected to have a Material Adverse Effect; 

	and, as soon as reasonably possible, notice of any of the
following events:

	a change in the insurance coverage of the Seller, with a
copy of evidence of same attached;

	any material change in accounting policies or financial
reporting practices of the Seller;

	promptly upon receipt of notice or knowledge of any Lien
or security interest (other than security interests created hereby or under any
other Repurchase Document) on, or claim asserted against, any of the Repurchase
Assets; and

	any other event, circumstance or condition that has
resulted, or has a possibility of resulting, in a Material Adverse Effect;
and

	Promptly, but no later than two (2) Business Days after
the Seller receives any of the same, deliver to the Buyer a true, complete, and
correct copy of any schedule, report, notice, or any other document delivered to
the Seller by any Person pursuant to, or in connection with, any of the
Repurchase Assets.

	Financial Reporting.  The Seller shall maintain a
system of accounting established and administered in accordance with GAAP, and
furnish to the Buyer:

	Within one hundred twenty (120) days after the close of
each fiscal year, Financial Statements, including a statement of income and
changes in shareholders' equity of the Seller for such year, and the related
balance sheet as at the end of such year, all in reasonable detail and
accompanied by an opinion of an accounting firm as to said financial
statements;

	Within sixty (60) days after the close of each of the
Seller's first three fiscal quarters in each fiscal year unaudited balance
sheets and income statements, for the period from the beginning of such fiscal
quarter to the end of such fiscal quarter, subject, however, to year end
adjustments;

	Within thirty (30) days after the end of each calendar
month, the unaudited balance sheets of the Seller as at the end of such period
and the related unaudited consolidated statements of income and retained
earnings and of cash flows for the Seller for such period and the portion of the
fiscal year through the end of such period, subject, however, to year end
adjustments;

	Simultaneously with the furnishing of each of the
Financial Statements to be delivered pursuant to subsection (ii) above, or
monthly upon Buyer's request, a certificate in the form of Exhibit VIII
hereto and certified by an executive officer of the Seller;

	If applicable, copies of any 10-Ks and 10-Qs, and upon
Buyer's request, any registration statements and other "corporate
finance" SEC filings (other than 8-Ks) by the Seller, within 5 Business
Days of their filing with the SEC; provided, that, the Seller or any Affiliate
will provide the Buyer with a copy of the annual 10-K filed with the SEC by the
Seller or its Affiliates, no later than 90 days after the end of the year;
and

	Promptly, from time to time, such other information
regarding the business affairs, operations and financial condition of the Seller
as the Buyer may reasonably request.

	Visitation and Inspection Rights.  Subject to the
provisions of Section 27, the Seller shall permit the Buyer to inspect, and to
discuss with the Seller's officers, agents and auditors, the affairs, finances,
and accounts of the Seller, the Repurchase Assets, and the Seller's books and
records, and to make abstracts or reproductions thereof and to duplicate, reduce
to hard copy or otherwise use any and all computer or electronically stored
information or data, in each case, (i) during normal business hours, (ii) upon
reasonable notice (provided, that upon the occurrence of an Event of Default, no
notice shall be required), and (iii) at the expense of the Seller to discuss
with its officers, its affairs, finances, and accounts.

	Reimbursement of Expenses.  On the date of
execution of this Repurchase Agreement, the Seller shall reimburse the Buyer for
all expenses relating to this Repurchase Agreement incurred by the Buyer on or
prior to such date.  From and after such date, the Seller shall promptly
reimburse the Buyer for all expenses of effectuating this Repurchase Agreement
as the same are incurred by the Buyer and within thirty (30) days of the receipt
of invoices therefor.

	Further Assurances.  The Seller shall execute and
deliver to the Buyer all further documents, financing statements, agreements and
instruments, and take all further action that may be required under applicable
law, or that the Buyer may reasonably request, in order to effectuate the
transactions contemplated by this Repurchase Agreement and the Repurchase
Documents or, without limiting any of the foregoing, to grant, preserve, protect
and perfect the validity and first-priority of the security interests created or
intended to be created hereby.  The Seller shall do all things necessary to
preserve the Repurchase Assets so that they remain subject to a first priority
perfected security interest hereunder.  Without limiting the foregoing, the
Seller will comply with all rules, regulations, and other laws of any
Governmental Authority and cause the Repurchase Assets to comply with all
applicable rules, regulations and other laws.  The Seller will not allow any
default for which the Seller is responsible to occur under any Repurchase Assets
or any Repurchase Document and the Seller shall fully perform or cause to be
performed when due all of its obligations under any Repurchase Assets or the
Repurchase Documents.

	True and Correct Information.  All information,
reports, exhibits, schedules, financial statements or certificates of Seller or
any of its Affiliates thereof or any of their officers furnished to Buyer
hereunder and during Buyer's diligence of the Seller are and will be true and
complete and do not omit to disclose any material facts necessary to make the
statements therein or therein, in light of the circumstances in which they are
made, not misleading.  All required financial statements, information and
reports delivered by the Seller to the Buyer pursuant to this Repurchase
Agreement shall be prepared in accordance with GAAP, or in applicable, to SEC
filings, the appropriate SEC accounting requirements.

	ERISA Events. 

	Promptly upon becoming aware of the occurrence of any
Event of Termination which together with all other Events of Termination
occurring within the prior 12 months involve a payment of money by or a
potential aggregate liability of the Seller or any ERISA Affiliate thereof or
any combination of such entities in excess of $100,000 the Seller shall give the
Buyer a written notice specifying the nature thereof, what action the Seller or
any ERISA Affiliate thereof has taken and, when known, any action taken or
threatened by the Internal Revenue Service, the Department of Labor or the PBGC
with respect thereto;

	Promptly upon receipt thereof, the Seller shall furnish
to the Buyer copies of (i) all notices received by the Seller or any ERISA
Affiliate thereof of the PBGC's intent to terminate any Plan or to have a
trustee appointed to administer any Plan; (ii) all notices received by the
Seller or any ERISA Affiliate thereof from the sponsor of a Multiemployer Plan
pursuant to Section 4202 of ERISA involving a withdrawal liability in excess of
$100,000; and (iii) all funding waiver requests filed by the Seller or any ERISA
Affiliate thereof with the Internal Revenue Service with respect to any Plan,
the accrued benefits of which exceed the present value of the plan assets as of
the date the waiver request is filed by more than $100,000, and all
communications received by the Seller or any ERISA Affiliate thereof from the
Internal Revenue Service with respect to any such funding waiver
request.

	Financial Condition Covenants.

	Maintenance of Tangible Net Worth.  (A) Seller
shall maintain a Tangible Net Worth of not less than $40,000,000 and (B) Seller
shall maintain a Tangible Net Worth at the end of any calendar quarter of not
less than 80% of its Tangible Net Worth at the beginning of the preceding
calendar quarter.  For example, Seller shall maintain a Tangible Net Worth on
June 30 of not less than 80% of its Tangible Net Worth on January
1st.

	Maintenance of Ratio of Indebtedness to Tangible Net
Worth. The Seller shall maintain the ratio of Indebtedness to Tangible Net
Worth no greater than 12:1.

	Maintenance of Liquidity.  The Seller shall ensure
that, as of the end of each calendar month, it has Cash Equivalents in an amount
not less than $12,500,000.

	Hedging. If requested by the Buyer in writing, the
Seller shall have entered into Interest Rate Protection Agreements, in an amount
in accordance with the Buyer's written request, with Buyer or any Affiliate,
having terms with respect to protection against fluctuations in interest rates
reasonably acceptable to the Buyer.

	No Adverse Selection.  The Seller shall not select
Eligible Mortgage Loans to be sold to Buyer as Purchased Mortgage Loans using
any type of adverse selection or other selection criteria which would adversely
affect the Buyer.

	Mortgage Loan Schedule.  On the Friday of each
calendar week (or if such date is not a Business Day, the next preceding
Business Day), or with such greater frequency as requested by Buyer, the Seller
shall provide to Buyer, electronically, in a format mutually acceptable to
Buyer, a Mortgage Loan Schedule.  The Seller shall not cause the Purchased
Mortgage Loans to be serviced by any servicer other than a servicer expressly
approved in writing by Buyer, which approval shall be deemed granted by Buyer
with respect to the Seller with the execution of this Repurchase
Agreement.

	Insurance.  The Seller shall continue to maintain
insurance coverage with respect to employee dishonesty, forgery or alteration,
theft, disappearance and destruction, robbery and safe burglary, property (other
than money and securities) and computer fraud in an aggregate amount at least
equal to $5,000,000.  The Seller shall maintain a fidelity bond in respect of
its officers, employees and agents, with respect to any claims made in
connection with all or any portion of the Repurchase Assets.  The Seller shall
notify the Buyer of any material change in the terms of any such fidelity bond
or insurance policy.

	Books and Records.  The Seller shall, to the
extent practicable, maintain and implement administrative and operating
procedures (including, without limitation, an ability to recreate records
evidencing the Repurchase Assets in the event of the destruction of the
originals thereof), and keep and maintain or obtain, as and when required, all
documents, books, records and other information reasonably necessary or
advisable for the collection of all Repurchase Assets.

	Security Interest.  The Seller shall do all things
necessary to preserve the Repurchase Assets so that they remains subject to a
first priority perfected security interest hereunder.  Without limiting the
foregoing, the Seller will comply with all rules, regulations and other laws of
any Governmental Authority and cause the Repurchase Assets to comply with all
applicable rules, regulations and other laws.  The Seller will not allow any
default for which the Seller is responsible to occur under any Repurchase Assets
or any Repurchase Documents and the Seller shall fully perform or cause to be
performed when due all of its obligations under any Repurchase Assets or the
Repurchase Documents.

	Illegal Activities. 
The Seller shall not engage in any conduct or activity that could subject its
assets to forfeiture or seizure.

	Material Change in Business.
 The Seller shall not make any material change in the nature of its
business as carried on at the date hereof.

	Limitation on Dividends and Distributions.  The Seller shall not make any payment on account of, or
set apart assets for, a sinking or other analogous fund for the purchase,
redemption, defeasance, retirement or other acquisition of any equity interest
of the Seller, whether now or hereafter outstanding, or make any other
distribution in respect of any of the foregoing or to any shareholder or equity
owner of the Seller, either directly or indirectly, whether in cash or property
or in obligations of the Seller or any of the Seller's consolidated Subsidiaries
in any calendar year; in excess of 50% of the net income of the Seller for such
calendar year (determined in accordance with GAAP); provided that no such
dividends or other distributions may be made at any time following the
occurrence and during the continuation of an Event of Default.

	Disposition of Assets; Liens.  The Seller shall
not create, incur, assume or suffer to exist any mortgage, pledge, Lien, charge
or other encumbrance of any nature whatsoever on any of the Repurchase Assets,
whether real, personal or mixed, now or hereafter owned, other than the Liens created in connection with the
transactions contemplated by this Repurchase Agreement; nor shall the Seller cause any of the Purchased Mortgage Loans to be sold,
pledged, assigned or transferred.

	Transactions with Affiliates.  The Seller shall not enter into any transaction,
including, without limitation, the purchase, sale, lease or exchange of property
or assets or the rendering or accepting of any service with any Affiliate,
unless such transaction is (a) not otherwise prohibited in this Repurchase
Agreement, (b) in the ordinary course of the Seller's business and (c) upon fair
and reasonable terms no less favorable to the Seller, as the case may be, than
it would obtain in a comparable arm's length transaction with a Person which is
not an Affiliate.

	ERISA Matters.  

	The Seller shall not permit any event or condition which
is described in any of clauses (i) through (vii) of the definition of
"Event of Termination" to occur or exist with respect to any Plan or
Multiemployer Plan if such event or condition, together with all other events or
conditions described in the definition of Event of Termination occurring within
the prior 12 months, involves the payment of money by or an incurrence of
liability of the Seller or any ERISA Affiliate thereof, or any combination of
such entities in an amount in excess of $100,000.

	The Seller shall not be an employee benefit plan as
defined in Section 3 of Title I of ERISA, or a plan described in Section
4975(e)(1) of the Code and (b) the Seller shall not use "plan assets"
within the meaning of 29 CFR  2510.3-101 to engage in this Repurchase Agreement
or the Transactions hereunder.

	Consolidations, Mergers and
Sales of Assets.  The Seller shall not (i)
consolidate or merge with or into any other Person or (ii) sell, lease or
otherwise transfer all or substantially all of its assets to any other Person;
provided that the Seller may merge or consolidate with another Person if
the Seller is the Person surviving such merger.

	Mortgage Loan Reports.  The Seller will furnish to
Buyer monthly electronic Mortgage Loan performance data, including, without
limitation, delinquency reports, pool analytic reports and static pool reports
(i.e., delinquency, foreclosure and net charge-off reports) and monthly
stratification reports summarizing the characteristics of the Mortgage
Loans.

	Agency Approvals; Servicing.  The Seller shall
maintain its status with Fannie Mae as an approved lender and Freddie Mac as an
approved seller/servicer, in each case in good standing (each such approval, an
"Agency Approval").  The Seller shall service all Purchased
Mortgage Loans which are subject to an Agency Takeout Commitment in accordance
with the applicable Agency guide.  Should the Seller, for any reason, cease to
possess all such applicable Agency Approvals to the extent necessary, or should
notification to the relevant Agency Approval or to HUD, FHA or VA be required,
the Seller shall so notify Buyer immediately in writing.  Notwithstanding the
preceding sentence, the Seller shall take all necessary action to maintain all
of its applicable Agency Approvals at all times during the term of this
Repurchase Agreement and each outstanding Transaction.

	Guarantees.  The Seller shall not create, incur,
assume or suffer to exist any Guarantees, except (i) to the extent reflected in
the Seller's financial statements or notes thereto and (ii) to the extent the
aggregate Guarantees of the Seller do not exceed $2,500,000.

	Takeout Payments.  With respect to each Mortgage
Loan subject to a Takeout Commitment, the Seller shall arrange that all payments
under the related Takeout Commitment shall be paid directly to the Buyer at the
account set forth in Section 9 hereof, or to an account approved by the Buyer in
writing prior to such payment.  With respect to any Agency Takeout Commitment,
if applicable, (1) with respect to the wire transfer instructions as set forth
in Freddie Mac Form 987 (Wire Transfer Authorization for a Cash Warehouse
Delivery) such wire transfer instructions are identical to Buyer's wire
instructions or the Buyer has approved such wire transfer instructions in
writing in its sole discretion, or (2) the Payee Number set forth on Fannie Mae
Form 1068 (Fixed-Rate, Graduated-Payment, or Growing-Equity Mortgage Loan
Schedule) or Fannie Mae Form 1069 (Adjustable-Rate Mortgage Loan Schedule), as
applicable, is identical to the Payee Number that has been identified by Buyer
in writing as Buyer's Payee Number or the Buyer has approved the related Payee
Number in writing in its sole discretion; With respect to any Takeout Commitment
with an Agency for which the Agency is swapping the related Mortgage Loans for a
mortgage backed security, the applicable Agency documents list Buyer as sole
subscriber.

	Underwriting Guidelines.  Without the prior
written consent of Buyer, the Seller shall not amend or otherwise modify the
Underwriting Guidelines in a material manner.  Without limiting the foregoing,
in the event that the Seller makes any material amendment or modification to the
Underwriting Guidelines, the Seller shall promptly deliver to Buyer a complete
copy of the amended or modified Underwriting Guidelines.

Section 13.   
       EVENTS OF DEFAULT

Section 13.01   
                           Events of Default.  If any of the following
events (each an "Event of Default") occur, the Seller and Buyer
shall have the rights set forth in Section 14, as applicable: 

	the Seller shall default in the payment of (i) any
amount payable by it hereunder or under any other Repurchase Document,
(ii) Expenses or (iii) any other Obligations, when the same shall
become due and payable, whether at the due date thereof, or by acceleration or
otherwise; or 

	the failure of the Seller to perform, comply with or
observe any term, covenant or agreement applicable to the Seller contained in
Sections 12(a)(i), (h), (j), (n), (r), (s), (t), (u), (v), (w), (x), (y), (z),
(aa) or (bb); or

	any representation, warranty or certification made or
deemed made herein or in any other Repurchase Document by the Seller or any
certificate furnished to the Buyer pursuant to the provisions hereof or thereof
or any information with respect to the Purchased Mortgage Loans furnished in
writing by on behalf of the Seller shall prove to have been untrue or misleading
in any material respect as of the time made or furnished (other than the
representations and warranties set forth in Schedule 1, which shall be
considered solely for the purpose of determining the Market Value of the
Purchased Mortgage Loans; unless (i) the Seller shall have made any such
representations and warranties with actual knowledge that they were materially
false or misleading at the time made; or (ii) any such representations and
warranties have been determined in good faith by the Buyer in its sole
discretion to be materially false or misleading on a regular basis); or

	the Seller shall fail to observe or perform any other
covenant or agreement contained in this Repurchase Agreement (and not identified
in clause (b) of Section 13.01) or any other Repurchase Document, and if such
default shall be capable of being remedied, and such failure to observe or
perform shall continue unremedied for a period of two (2) Business Days;
or

	a judgment or judgments for the payment of money in
excess of $100,000 in the aggregate shall be rendered against the Seller or any
of its Affiliates by one or more courts, administrative tribunals or other
bodies having jurisdiction and the same shall not be satisfied, discharged (or
provision shall not be made for such discharge) or bonded, or a stay of
execution thereof shall not be procured, within 30 days from the date of
entry thereof, and the Seller or any such Affiliate shall not, within said
period of 30 days, or such longer period during which execution of the same
shall have been stayed or bonded, appeal therefrom and cause the execution
thereof to be stayed during such appeal; or 

	any "event of default" or any other default
which permits a demand for, or requires, the early repayment of obligations due
by the Seller or its Affiliates under (i) any agreement (after the expiration of
any applicable grace period under any such agreement) relating to any
Indebtedness of the Seller or any Affiliate, as applicable, to which the Buyer
or any Affiliate is a party or (ii) any agreement (after the expiration of any
applicable grace period under any such agreement) relating to any Indebtedness
of the Seller or any Affiliate, as applicable; or

	an Event of Insolvency shall have occurred with respect
to the Seller; or 

	for any reason, this Repurchase Agreement at any time
shall not be in full force and effect in all material respects or shall not be
enforceable in all material respects in accordance with its terms, or any Lien
granted pursuant thereto shall fail to be perfected and of first priority, or
any Person (other than Buyer) shall contest the validity, enforceability,
perfection or priority of any Lien granted pursuant thereto, or any party
thereto (other than Buyer) shall seek to disaffirm, terminate, limit or reduce
its obligations hereunder; or

	the Seller shall grant, or suffer to exist, any Lien on
any Repurchase Asset (except any Lien in favor of the Buyer); or (A) the
Repurchase Assets shall not have been sold to the Buyer, or (B) the Liens
contemplated hereby shall cease or fail to be first priority perfected Liens on
any Repurchase Assets in favor of the Buyer or shall be Liens in favor of any
Person other than the Buyer; or

	any material adverse change in the Property, business,
prospects, financial condition or operations of the Seller or any of its
Affiliates shall occur, in each case as determined by Buyer in its sole good
faith discretion, or any other condition shall exist which, in Buyer's sole good
faith discretion, constitutes a material impairment of the Seller's ability to
perform its obligations under this Repurchase Agreement or any other Repurchase
Document.

	(i) any Person shall engage in any "prohibited
transaction" (as defined in Section 406 of ERISA or Section 4975
of the Code) involving any Plan of Seller, (ii) any material
"accumulated funding deficiency" (as defined in Section 302 of
ERISA), whether or not waived, shall exist with respect to any Plan or any Lien
in favor of the PBGC or a Plan shall arise on the assets of the Seller or any
Commonly Controlled Entity, (iii) a Reportable Event shall occur with
respect to, or proceedings shall commence to have a trustee appointed, or a
trustee shall be appointed, to administer or to terminate, any Plan of Seller,
which Reportable Event or commencement of proceedings or appointment of a
trustee is, in the reasonable opinion of the Buyer, likely to result in the
termination of such Plan for purposes of Title IV of ERISA, (iv) any Plan
of Seller shall terminate for purposes of Title IV of ERISA, (v) the Seller
or any Commonly Controlled Entity shall, or in the reasonable opinion of the
Buyer is likely to, incur any liability in connection with a withdrawal from, or
the insolvency or reorganization of, a Multiemployer Plan or (vi) any other
event or condition shall occur or exist with respect to a Plan of Seller; and in
each case in clauses (i) through (vi) above, such event or condition,
together with all other such events or conditions, if any, could reasonably be
expected to have a Material Adverse Effect; or

	Seller's audited annual financial statements or the notes
thereto or other opinions or conclusions stated therein shall be qualified or
limited by reference to the status of Seller as a "going concern" or a
reference of similar import.

Section 13.02     Termination Event.

	If the following event (a
"Termination Event") occurs, the Buyer shall have the rights
set forth in Section 13.02(b):

	The senior debt obligations or short-term debt
obligations of Merrill Lynch & Co., Inc. shall be rated below the four
highest generic grades (without regard to any pluses and minuses reflecting
gradations within such generic grades) by any nationally recognized statistical
rating organization.

	A Change in Control of the Seller shall have
occurred.

	any change or development involving a prospective change
in taxation or other applicable law or regulation or interpretation thereof in
the United States directly affecting the Purchased Mortgage Loans or the
consequences of Buyer owning, or holding a security interest in, the Purchased
Mortgage Loans; the imposition of exchange controls by the United States, that
directly affects the Purchased Mortgage Loans or the consequences of Buyer
owning, or holding a security interest in, the Purchased Mortgage Loans; or the
imposition of exchange controls by the United States, that directly affects the
financial markets of the United States, and makes it, in the sole judgment of
Buyer, inadvisable or impracticable to enter into Transactions with the Mortgage
Loans.

	The Seller shall repurchase any Purchased Mortgage Loans
subject to a Transaction hereunder within 60 days following receipt of a request
therefor from Buyer following the occurrence of a Termination
Event.

Section 14.   
       REMEDIES

	If an Event of Default occurs with respect to the
Seller, the following rights and remedies are available to the Buyer; provided,
that an Event of Default shall be deemed to be continuing unless expressly
waived by the Buyer in writing.

	At the option of the Buyer, exercised by written notice
to the Seller (which option shall be deemed to have been exercised, even if no
notice is given, immediately upon the occurrence of an Event of Insolvency of
the Seller), the Repurchase Date for each Transaction hereunder, if it has not
already occurred, shall be deemed immediately to occur.  The Buyer shall (except
upon the occurrence of an Act of Insolvency of the Seller) give notice to the
Seller of the exercise of such option as promptly as practicable.  

	If the Buyer exercises or is deemed to have exercised the
option referred to in subsection (a)(i) of this Section,

	the Seller's obligations in such Transactions to
repurchase all Purchased Mortgage Loans, at the Repurchase Price therefor on the
Repurchase Date determined in accordance with subsection (a)(i) of this
Section, (1) shall thereupon become immediately due and payable and
(2) all Income paid after such exercise or deemed exercise shall be
retained by the Buyer and applied to the aggregate unpaid Repurchase Price and
any other amounts owed by the Seller hereunder;

	to the extent permitted by applicable law, the Repurchase
Price with respect to each such Transaction shall be increased by the aggregate
amount obtained by daily application of, on a 360 day per year basis for
the actual number of days during the period from and including the date of the
exercise or deemed exercise of such option to but excluding the date of payment
of the Repurchase Price as so increased, (x) the Post-Default Rate in
effect following an Event of Default to (y) the Repurchase Price for such
Transaction as of the Repurchase Date as determined pursuant to
subsection (a)(i) of this Section (decreased as of any day by (i) any
amounts actually in the possession of Buyer pursuant to clause (C) of this
subsection, and (ii) any proceeds from the sale of Purchased Mortgage Loans
applied to the Repurchase Price pursuant to subsection (a)(iv) of this
Section; and

	all Income actually received by the Buyer pursuant to
Section 5 (excluding any Late Payment Fees paid pursuant to
Section 5(a)) shall be applied to the aggregate unpaid Repurchase Price
owed by the Seller.

	Upon the occurrence of one or more Events of Default, the
Buyer shall have the right to obtain physical possession of all files of the
Seller relating to the Purchased Mortgage Loans and the Repurchase Assets and
all documents relating to the Purchased Mortgage Loans which are then or may
thereafter come in to the possession of the Seller or any third party acting for
the Seller and the Seller shall deliver to the Buyer such assignments as the
Buyer shall request.  The Buyer shall be entitled to specific performance of all
agreements of the Seller contained in the Repurchase Documents.

	At any time on the Business Day following notice to the
Seller (which notice may be the notice given under subsection (a)(i) of
this Section), in the event the Seller has not repurchased all Purchased
Mortgage Loans, the Buyer may (A) immediately sell, without demand or
further notice of any kind, at a public or private sale and at such price or
prices as the Buyer may deem satisfactory any or all Purchased Mortgage Loans
and the Repurchase Assets subject to a such Transactions hereunder and apply the
proceeds thereof to the aggregate unpaid Repurchase Prices and any other amounts
owing by the Seller hereunder or (B) in its sole discretion elect, in lieu
of selling all or a portion of such Purchased Mortgage Loans, to give the Seller
credit for such Purchased Mortgage Loans and the Repurchase Assets in an amount
equal to the Market Value of the Purchased Mortgage Loans against the aggregate
unpaid Repurchase Price and any other amounts owing by the Seller hereunder.
The proceeds of any disposition of Purchased Mortgage Loans and the Repurchase
Assets shall be applied first to the costs and expenses incurred by the Buyer in
connection with the Seller's default; second to costs of cover and/or related
Interest Rate Protection Agreements; third to the Repurchase Price; and fourth
to any other outstanding obligation of the Seller to the Buyer or its
Affiliates.

	The Seller shall be liable to Buyer for (i) the
amount of all reasonable legal or other expenses (including, without limitation,
all costs and expenses of Buyer in connection with the enforcement of this
Repurchase Agreement or any other agreement evidencing a Transaction, whether in
action, suit or litigation or bankruptcy, insolvency or other similar proceeding
affecting  creditors' rights generally, further including, without limitation,
the reasonable fees and expenses of counsel incurred in connection with or as a
result of an Event of Default, (ii) damages in an amount equal to the cost
(including all fees, expenses and commissions) of entering into replacement
transactions and entering into or terminating Interest Rate Protection Agreement
in connection with or as a result of an Event of Default, and (iii) any
other loss, damage, cost or expense directly arising or resulting from the
occurrence of an Event of Default in respect of a Transaction.

	The Buyer shall have, in addition to its rights
hereunder, any rights otherwise available to it under any other agreement or
applicable law.

	Buyer may exercise one or more of the remedies available
to Buyer immediately upon the occurrence of an Event of Default and at any time
thereafter without notice to the Seller.  All rights and remedies arising under
this Repurchase Agreement as amended from time to time hereunder are cumulative
and not exclusive of any other rights or remedies which Buyer may have.

	Buyer may enforce its rights and remedies hereunder
without prior judicial process or hearing, and the Seller hereby expressly
waives any defenses the Seller might otherwise have to require Buyer to enforce
its rights by judicial process.  The Seller also waives any defense (other than
a defense of payment or performance) the Seller might otherwise have arising
from the use of nonjudicial process, enforcement and sale of all or any portion
of the Repurchase Assets, or from any other election of remedies.  The Seller
recognizes that nonjudicial remedies are consistent with the usages of the
trade, are responsive to commercial necessity and are the result of a bargain at
arm's length.

	To the extent permitted by applicable law, the Seller
shall be liable to the Buyer for interest on any amounts owing by the Seller
hereunder, from the date the Seller becomes liable for such amounts hereunder
until such amounts are (i) paid in full by the Seller or
(ii) satisfied in full by the exercise of the Buyer's rights hereunder.
Interest on any sum payable by the Seller to the Buyer under this
paragraph 14(d) shall be at a rate equal to the Post-Default
Rate.

Section 15.   
       INDEMNIFICATION AND EXPENSES;
RECOURSE

	The Seller agrees to hold the Buyer, and its
Affiliates and their officers, directors, employees, agents and advisors (each
an "Indemnified Party") harmless from and indemnify any
Indemnified Party against all liabilities, losses, damages, judgments, costs and
expenses of any kind which may be imposed on, incurred by or asserted against
such Indemnified Party (collectively, "Costs"), relating to or
arising out of this Repurchase Agreement, any other Repurchase Document or any
transaction contemplated hereby or thereby, or any amendment, supplement or
modification of, or any waiver or consent under or in respect of, this
Repurchase Agreement, any other Repurchase Document or any transaction
contemplated hereby or thereby, that, in each case, results from anything other
than the Indemnified Party's gross negligence or willful misconduct.  Without
limiting the generality of the foregoing, the Seller agrees to hold any
Indemnified Party harmless from and indemnify such Indemnified Party against all
Costs with respect to all Purchased Mortgage Loans relating to or arising out of
any taxes incurred or assessed in connection with the ownership of the Purchased
Mortgage Loans, that, in each case, results from anything other than the
Indemnified Party's gross negligence or willful misconduct.  In any suit,
proceeding or action brought by an Indemnified Party in connection with any
Purchased Mortgage Loan for any sum owing thereunder, or to enforce any
provisions of any Purchased Mortgage Loan, the Seller will save, indemnify and
hold such Indemnified Party harmless from and against all expense, loss or
damage suffered by reason of any defense, set-off, counterclaim, recoupment or
reduction or liability whatsoever of the account debtor or obligor thereunder,
arising out of a breach by the Seller of any obligation thereunder or arising
out of any other agreement, indebtedness or liability at any time owing to or in
favor of such account debtor or obligor or its successors from the Seller.  The
Seller also agrees to reimburse an Indemnified Party as and when billed by such
Indemnified Party for all the Indemnified Party's costs and expenses incurred in
connection with the enforcement or the preservation of the Buyer's rights under
this Repurchase Agreement, any other Repurchase Document or any transaction
contemplated hereby or thereby, including without limitation the reasonable fees
and disbursements of its counsel.

	The Seller agrees to pay as and when billed by the Buyer
all of the out-of-pocket costs and expenses incurred by the Buyer in connection
with the development, preparation and execution of, and any amendment,
supplement or modification to, this Repurchase Agreement, any other Repurchase
Document or any other documents prepared in connection herewith or therewith.
The Seller agrees to pay as and when billed by the Buyer all of the reasonable
out-of-pocket costs and expenses incurred in connection with the consummation
and administration of the transactions contemplated hereby and thereby including
without limitation filing fees and all the reasonable fees, disbursements and
expenses of counsel to the Buyer which amount shall be deducted from the
Purchase Price paid for the first Transaction hereunder.  Subject to the
limitations set forth in Section 27 hereof, the Seller agrees to pay the
Buyer all the reasonable out of pocket due diligence, inspection, testing and
review costs and expenses incurred by the Buyer with respect to Purchased
Mortgage Loans submitted by the Seller for purchase under this Repurchase
Agreement, including, but not limited to, those out of pocket costs and expenses
incurred by the Buyer pursuant to Sections 15(b) and 27
hereof.

	The obligations of the Seller from time to time to pay
the Repurchase Price, the Periodic Advance Repurchase Payments, and all other
amounts due under this Repurchase Agreement shall be full recourse obligations
of the Seller.

Section 16.   
       Servicing

	The Sellers, on Buyer's behalf, shall contract with
Servicer to, or if a Seller is the Servicer, such Seller shall, service the
Mortgage Loans consistent with the degree of skill and care that such Seller
customarily requires with respect to similar Mortgage Loans owned or managed by
it and in accordance with Accepted Servicing Practices.  The Servicer shall
(i) comply with all applicable Federal, State and local laws and
regulations, (ii) maintain all state and federal licenses necessary for it
to perform its servicing responsibilities hereunder and (iii) not impair
the rights of Buyer in any Purchased Mortgage Loans or any payment thereunder.
Buyer may terminate the servicing of any Purchased Mortgage Loan with the then
existing servicer in accordance with Section 16(e) hereof.

	The Seller shall cause the Servicer to hold or cause to
be held all escrow funds collected by the Seller with respect to any Purchased
Mortgage Loans in trust accounts and shall apply the same for the purposes for
which such funds were collected.  

	The Seller shall cause the Servicer to deposit all
collections received by the Seller on account of the Purchased Mortgage Loans in
the Collection Account no later than two Business Days following receipt.

	The Sellers shall provide promptly to Buyer (i) a
Servicer Notice addressed to and agreed to by the Servicer of the related
Purchased Mortgage Loans, advising such Servicer of such matters as Buyer may
reasonably request, including, without limitation, recognition by the Servicer
of Buyer's interest in such Purchased Mortgage Loans and the Servicer's
agreement that upon receipt of notice of an Event of Default from Buyer, it will
follow the instructions of Buyer with respect to the Purchased Mortgage Loans
and any related Income with respect thereto.

	Upon the occurrence of a Default or Event of Default
hereunder or a material default under the Servicing Agreement, Buyer shall have
the right to immediately terminate the Servicer's right to service the Purchased
Mortgage Loans without payment of any penalty or termination fee.  The Seller
shall cooperate in transferring the servicing of the Purchased Mortgage Loans to
a successor servicer appointed by Buyer in its sole discretion.

	If the Seller should discover that, for any reason
whatsoever, any entity responsible to the Seller by contract for managing or
servicing any such Purchased Mortgage Loan has failed to perform fully the
Seller's obligations under the Repurchase Documents or any of the obligations of
such entities with respect to the Purchased Mortgage Loans, the Seller shall
promptly notify Buyer.

Section 17.   
        SINGLE AGREEMENT

Buyer and the Seller acknowledge that, and have entered
hereinto and will enter into each Transaction hereunder in consideration of and
in reliance upon the fact that, all Transactions hereunder constitute a single
business and contractual relationship and that each has been entered into in
consideration of the other Transactions.  Accordingly, each of Buyer and the
Seller agrees (i) to perform all of its obligations in respect of each
Transaction hereunder, and that a default in the performance of any such
obligations shall constitute a default by it in respect of all Transactions
hereunder, (ii) that each of them shall be entitled to set off claims and
apply property held by them in respect of any Transaction against obligations
owing to them in respect of any other Transaction hereunder; (iii) that
payments, deliveries, and other transfers made by either of them in respect of
any Transaction shall be deemed to have been made in consideration of payments,
deliveries, and other transfers in respect of any other Transactions hereunder,
and the obligations to make any such payments, deliveries, and other transfers
may be applied against each other and netted and (iv) to promptly provide
notice to the other after any such set off or application. 

Section 18.   
       Set-off

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

Section 19.   
       NOTICES AND OTHER COMMUNICATIONS

Except as otherwise expressly permitted by this
Repurchase Agreement, all notices, requests and other communications provided
for herein (including without limitation any modifications of, or waivers,
requests or consents under, this Repurchase Agreement) shall be given or made in
writing (including without limitation by telecopy) delivered to the intended
recipient at the "Address for Notices" specified below its name on the
signature pages hereof or thereof); or, as to any party, at such other address
as shall be designated by such party in a written notice to each other party.
Except as otherwise provided in this Repurchase Agreement and except for notices
given under Section 3 (which shall be effective only on receipt), all such
communications shall be deemed to have been duly given when transmitted by
telecopy or personally delivered or, in the case of a mailed notice, upon
receipt, in each case given or addressed as aforesaid.

Section 20.   
       ENTIRE AGREEMENT; SEVERABILITY

This Repurchase Agreement, together with the Repurchase
Documents, constitute the entire understanding between Buyer and the Seller with
respect to the subject matter they cover and shall supersede any existing
agreements between the parties containing general terms and conditions for
repurchase transactions involving Purchased Mortgage Loans.  By acceptance of
this Repurchase Agreement, Buyer and Seller acknowledge that they have not made,
and are not relying upon, any statements, representations, promises or
undertakings not contained in this Repurchase Agreement.  Each provision and
agreement herein shall be treated as separate and independent from any other
provision or agreement herein and shall be enforceable notwithstanding the
unenforceability of any such other provision or agreement.

Section 21.   
       NON-ASSIGNABILITY

The rights and obligations of the parties under this
Repurchase Agreement and under any Transaction shall not be assigned by the
Seller without the prior written consent of Buyer.  Subject to the foregoing,
this Repurchase Agreement and any Transactions shall be binding upon and shall
inure to the benefit of the parties and their respective successors and assigns.
Nothing in this Repurchase Agreement express or implied, shall give to any
Person, other than the parties to this Repurchase Agreement and their successors
hereunder, any benefit of any legal or equitable right, power, remedy or claim
under this Repurchase Agreement. Prior to the occurrence of an Event of Default,
Buyer may from time to time assign all or a portion of its rights and
obligations under this Repurchase Agreement and the Repurchase Documents to an
Affiliate of the Buyer without the prior consent of the Seller or to another
Person with the prior consent of Seller, which consent shall not be unreasonably
withheld or delayed; provided, however that Buyer shall maintain, for
review by the Seller upon written request, a register of assignees and a copy of
an executed assignment and acceptance by Buyer and assignee ("Assignment
and Acceptance"), specifying the percentage or portion of such rights
and obligations assigned.  Upon such assignment, (a) such assignee shall be
a party hereto and to each Repurchase Document to the extent of the percentage
or portion set forth in the Assignment and Acceptance, and shall succeed to the
applicable rights and obligations of Buyer hereunder, and (b) Buyer shall,
to the extent that such rights and obligations have been so assigned by it be
released from its obligations hereunder and under the Repurchase Documents.
After the occurrence of an Event of Default, Buyer may assign all or a portion
of its rights and obligations under this Repurchase Agreement and the Repurchase
Documents to any Person without the prior consent of Seller.  Unless otherwise
stated in the Assignment and Acceptance, the Seller shall continue to take
directions solely from Buyer unless otherwise notified by Buyer in writing.
Buyer may distribute to any prospective assignee any document or other
information delivered to Buyer by Seller.

Subject to acceptance and recording thereof pursuant to the
following paragraph of this Section, from and after the effective date specified
in each assignment and acceptance the assignee thereunder shall be a party
hereto and, to the extent of the interest assigned by such assignment and
acceptance, have the rights and obligations of Buyer under this Agreement.  Any
assignment or transfer by Buyer of rights or obligations under this Agreement
that does not comply with this Section 21 shall be treated for purposes of this
Agreement as a sale by such Buyer of a participation in such rights and
obligations in accordance with the following paragraph of this Section.

The Seller shall maintain a register (the
"Register") on which it will record the Buyer's rights
hereunder, and each assignment and acceptance and participation.  The Register
shall include the names and addresses of Buyers (including all assignees,
successors and participants).  Failure to make any such recordation, or any
error in such recordation shall not affect the Seller's obligations in respect
of such rights.  If Buyer sells a participation in its rights hereunder, it
shall provide Seller, or maintain as agent of Seller, the information described
in this paragraph and permit Seller to review such information as reasonably
needed for Seller to comply with its obligations under this Agreement or under
any applicable law or governmental regulation or procedure.

The Buyer may sell participations to one or more Persons in
or to all or a portion of its rights and obligations under this Repurchase
Agreement; provided, however, that (i) the Buyer's obligations under this
Repurchase Agreement shall remain unchanged, (ii) the Buyer shall remain solely
responsible to the other parties hereto for the performance of such obligations;
and (iii) the Seller shall continue to deal solely and directly with the Buyer
in connection with the Buyer's rights and obligations under this Repurchase
Agreement and the other Repurchase Documents. Notwithstanding the terms of
Section 8, each participant of the Buyer shall be entitled to the additional
compensation and other rights and protections afforded the Buyer under Section 8
to the same extent as the Buyer would have been entitled to receive them with
respect to the participation sold to such participant.

The Buyer may, in connection with any assignment or
participation or proposed assignment or participation pursuant to this Section
21, disclose to the assignee or participant or proposed assignee or participant,
as the case may be, any information relating to the Seller or any of its
Subsidiaries or to any aspect of the Transactions that has been furnished to the
Buyer by or on behalf of the Seller or any of its Subsidiaries; provided that
such assignee or participant agrees to hold such information subject to the
confidentiality provisions of this Repurchase Agreement.

The Buyer may at any time create a security interest in all
or any portion of its rights under this Repurchase Agreement in favor of any
Federal Reserve Bank in accordance with Regulation A of the Board of Governors
of the Federal Reserve System and any Operating Circular issued by such Federal
Reserve Bank. No such assignment shall release the assigning Buyer from its
obligations hereunder.

In the event the Buyer assigns all or a portion of its rights
and obligations under this Repurchase Agreement, the parties hereto agree to
negotiate in good faith an amendment to this Repurchase Agreement to add Agency
provisions similar to those included in repurchase agreements for similar
syndicated repurchase facilities.

Section 22.   
       TERMINABILITY

Each representation and warranty made or deemed to be
made by entering into a Transaction, herein or pursuant hereto shall survive the
making of such representation and warranty, and the Buyer shall not be deemed to
have waived any Default that may arise because any such representation or
warranty shall have proved to be false or misleading, notwithstanding that the
Buyer may have had notice or knowledge or reason to believe that such
representation or warranty was false or misleading at the time the Transaction
was made.  Notwithstanding any such termination or the occurrence of an Event of
Default, all of the representations and warranties and covenants hereunder shall
continue and survive.  The obligations of the Seller under Section 15
hereof shall survive the termination of this Repurchase Agreement. 

Section 23.   
       GOVERNING LAW

THIS REPURCHASE AGREEMENT SHALL BE GOVERNED BY THE INTERNAL
LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW
PRINCIPLES THEREOF.

   Section 24.   
    Submission To Jurisdiction; Waivers

BUYER AND THE SELLER HEREBY IRREVOCABLY AND
UNCONDITIONALLY:

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

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

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

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

	THE BUYER AND THE SELLER HEREBY IRREVOCABLY WAIVE, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY
IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS REPURCHASE AGREEMENT,
ANY OTHER TRANSACTION DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY.

Section 25.   
    NO WAIVERS, ETC.

No failure on the part of the Buyer to exercise and no
delay in exercising, and no course of dealing with respect to, any right, power
or privilege under any Repurchase Document shall operate as a waiver thereof,
nor shall any single or partial exercise of any right, power or privilege under
any Repurchase Document preclude any other or further exercise thereof or the
exercise of any other right, power or privilege.  The remedies provided herein
are cumulative and not exclusive of any remedies provided by law.  An Event of
Default shall be deemed to be continuing unless expressly waived by the Buyer in
writing.

Section 26.   
       NETTING 

If the Buyer and the Seller
are "financial institutions" as now or hereinafter defined in
Section 4402 of Title 12 of the United States Code
("Section 4402") and any rules or regulations promulgated
thereunder,

	All amounts to be paid or advanced by one party to or on
behalf of the other under this Repurchase Agreement or any Transaction hereunder
shall be deemed to be "payment obligations" and all amounts to be
received by or on behalf of one party from the other under this Repurchase
Agreement or any Transaction hereunder shall be deemed to be "payment
entitlements" within the meaning of Section 4402, and this Repurchase
Agreement shall be deemed to be a "netting contract" as defined in
Section 4402.

	The payment obligations and the payment entitlements of
the parties hereto pursuant to this Repurchase Agreement and any Transaction
hereunder shall be netted as follows.  In the event that
either party (the "Defaulting Party") shall fail to honor any
payment obligation under this Repurchase Agreement or any Transaction hereunder,
the other party (the "Nondefaulting Party") shall be entitled
to reduce the amount of any payment to be made by the Nondefaulting Party to the
Defaulting Party by the amount of the payment obligation that the Defaulting
Party failed to honor.

Section 27.   
       DUE DILIGENCE

The Seller acknowledges that Buyer has the right to
perform continuing due diligence reviews with respect to the Mortgage Loans and
the Seller, for purposes of verifying compliance with the representations,
warranties and specifications made hereunder, or otherwise, and the Seller
agrees that upon reasonable prior notice unless an Event of Default shall have
occurred, in which case no notice is required, to the Seller, Buyer or its
authorized representatives will be permitted during normal business hours to
examine, inspect, and make copies and extracts of, the Mortgage Files and any
and all documents, records, agreements, instruments or information relating to
such Mortgage Loans in the possession or under the control of the Seller and/or
the Custodian.  The Seller also shall make available to Buyer a knowledgeable
financial or accounting officer for the purpose of answering questions
respecting the Mortgage Files and the Mortgage Loans.  Without limiting the
generality of the foregoing, the Seller acknowledges that Buyer may purchase
Mortgage Loans from the Seller based solely upon the information provided by the
Seller to Buyer in the Purchased Mortgage Loan Schedule and the representations,
warranties and covenants contained herein, and that Buyer, at its option, has
the right at any time to conduct a partial or complete due diligence review on
some or all of the Mortgage Loans purchased in a Transaction, including, without
limitation, ordering broker's price opinions, new credit reports and new
appraisals on the related Mortgaged Properties and otherwise re-generating the
information used to originate such Mortgage Loan.  Buyer may underwrite such
Mortgage Loans itself or engage a mutually agreed upon third party underwriter
to perform such underwriting.  The Seller agrees to cooperate with Buyer and any
third party underwriter in connection with such underwriting, including, but not
limited to, providing Buyer and any third party underwriter with access to any
and all documents, records, agreements, instruments or information relating to
such Mortgage Loans in the possession, or under the control, of the Seller.  The
Seller further agrees that the Seller shall pay all out-of-pocket costs and
expenses incurred by Buyer in connection with Buyer's activities pursuant to
this Section 27 ("Due Diligence Costs"); provided, that
such Due Diligence Costs shall not exceed $20,000 per calendar year unless a
Default or Event of Default shall have occurred, in which event Buyer shall have
the right to perform due diligence, at the sole expense of Seller without regard
to the dollar limitation set forth herein.

Section 28.   
       BUYER'S APPOINTMENT AS ATTORNEY-IN-FACT

	The Seller hereby irrevocably constitutes and
appoints the Buyer and any officer or agent thereof, with full power of
substitution, as its true and lawful attorney-in-fact with full irrevocable
power and authority in the place and stead of the Seller and in the name of the
Seller or in its own name, from time to time in the Buyer's discretion, for the
purpose of carrying out the terms of this Repurchase Agreement, to take any and
all appropriate action and to execute any and all documents and instruments
which may be reasonably necessary or desirable to accomplish the purposes of
this Repurchase Agreement, and, without limiting the generality of the
foregoing, the Seller hereby gives the Buyer the power and right, on behalf of
the Seller, without assent by, but with notice to, the Seller, if an Event of
Default shall have occurred and be continuing, to do the following:

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

	to pay or discharge taxes and Liens levied or placed on
or threatened against the Repurchase Assets;

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

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

	The Seller also authorizes the Buyer, if an Event of
Default shall have occurred, from time to time, to execute, in connection with
any sale provided for in Section 14 hereof, any endorsements, assignments
or other instruments of conveyance or transfer with respect to the Repurchase
Assets.

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

Section 29.   
       MISCELLANEOUS

	Counterparts.  This Repurchase Agreement may
be executed in any number of counterparts, all of which taken together shall
constitute one and the same instrument, and any of the parties hereto may
execute this Repurchase Agreement by signing any such counterpart. 

	Captions.  The captions and headings appearing
herein are for included solely for convenience of reference and are not intended
to affect the interpretation of any provision of this Repurchase
Agreement.

	Acknowledgment.  The Seller hereby acknowledges
that:  

	it has been advised by counsel in the negotiation,
execution and delivery of this Repurchase Agreement and the other Repurchase
Documents;

	the Buyer has no fiduciary relationship to the Seller;
and

	no joint venture exists between the Buyer and the
Seller.

Section 30.   
       CONFIDENTIALITY

The Buyer and the Seller hereby acknowledge and agree
that all oral, written or computer-readable information provided by one party to
any other regarding the terms set forth in any of the Repurchase Documents or
the Transactions contemplated thereby (the "Confidential
Terms") shall be kept confidential and shall not be divulged to any
party without the prior written consent of such other party except to the extent
that (i) it is necessary to do so in working with legal counsel, auditors,
taxing authorities or other governmental agencies or regulatory bodies or in
order to comply with any applicable federal or state laws, (ii) any of the
Confidential Terms are in the public domain other than due to a breach of this
covenant, or (iii) in the event of an Event of Default the Buyer determines
such information to be necessary or desirable to disclose in connection with the
marketing and sales of the Purchased Mortgage Loans or otherwise to enforce or
exercise the Buyer's rights hereunder.  The provisions set forth in this
Section 30 shall survive the termination of this Repurchase Agreement.
Notwithstanding the foregoing or anything to the contrary contained herein or in
any other Repurchase Document, the parties hereto may disclose to any and all
Persons, without limitation of any kind, the federal income tax treatment of the
Transactions, any fact relevant to understanding the federal tax treatment of
the Transactions, and all materials of any kind (including opinions or other tax
analyses) relating to such federal income tax treatment; provided that Seller
may not disclose the name of or identifying information with respect to Buyer or
Agent or any pricing terms (including, without limitation, the Pricing Rate,
Purchase Price Percentage and Purchase Price) or other nonpublic business or
financial information (including any sublimits and financial covenants) that is
unrelated to the purported or claimed federal income tax treatment of the
Transactions and is not relevant to understanding the purported or claimed
federal income tax treatment of the Transactions, without the prior written
consent of the Buyer."

Section 31.   
       Intent

	The parties recognize that each Transaction is a
"repurchase agreement" as that term is defined in Section 101 of
Title 11 of the United States Code, as amended (except insofar as the type
of Mortgage Loans subject to such Transaction or the term of such Transaction
would render such definition inapplicable), and a "securities
contract" as that term is defined in Section 741 of Title 11 of
the United States Code, as amended (except insofar as the type of assets subject
to such Transaction would render such definition inapplicable).

	It is understood that either party's right to liquidate
Mortgage Loans delivered to it in connection with Transactions hereunder or to
exercise any other remedies pursuant to Paragraph 11 hereof is a
contractual right to liquidate such Transaction as described in
Sections 555 and 559 of Title 11 of the United States Code, as
amended.

	The parties agree and acknowledge that if a party hereto
is an "insured depository institution," as such term is defined in the
Federal Deposit Insurance Act, as amended ("FDIA"), then each
Transaction hereunder is a "qualified financial contract," as that
term is defined in FDIA and any rules, orders or policy statements thereunder
(except insofar as the type of assets subject to such Transaction would render
such definition inapplicable).

	It is understood that this Repurchase Agreement
constitutes a "netting contract" as defined in and subject to
Title IV of the Federal Deposit Insurance Corporation Improvement Act of
1991 ("FDICIA") and each payment entitlement and payment
obligation under any Transaction hereunder shall constitute a "covered
contractual payment entitlement" or "covered contractual payment
obligation", respectively, as defined in and subject to FDICIA (except
insofar as one or both of the parties is not a "financial institution"
as that term is defined in FDICIA).

Section 32.   
       DISCLOSURE RELATING TO CERTAIN FEDERAL PROTECTIONS

The parties acknowledge that they have been advised
that:

	in the case of Transactions in which one of the parties
is a broker or dealer registered with the Securities and Exchange Commission
("SEC") under Section 15 of the Securities Exchange Act of
1934 ("1934 Act"), the Securities Investor Protection
Corporation has taken the position that the provisions of the Securities
Investor Protection Act of 1970 ("SIPA") do not protect the
other party with respect to any Transaction hereunder;

	in the case of Transactions in which one of the parties
is a government securities broker or a government securities dealer registered
with the SEC under Section 15C of the 1934 Act, SIPA will not provide
protection to the other party with respect to any Transaction hereunder;
and

	in the case of Transactions in which one of the parties
is a financial institution, funds held by the financial institution pursuant to
a Transaction hereunder are not a deposit and therefore are not insured by the
Federal Deposit Insurance Corporation or the National Credit Union Share
Insurance Fund, as applicable.

Section 33.   
       CONFLICTS

In the event of any conflict between the terms of this
Repurchase Agreement, any other Repurchase Document and any Confirmation, the
documents shall control in the following order of priority:  first, the
terms of the Confirmation shall prevail, then the terms of this Repurchase
Agreement shall prevail, and then the terms of the Repurchase Documents shall
prevail.

Section 34.   
      AUTHORIZATIONS

Any of the persons whose signatures and titles appear on
Exhibit X are authorized, acting singly, to act for Seller or Buyer, as
the case may be, under this Repurchase Agreement.

Section 35.   
       ACKNOWLEDGEMENT OF ANTI-PREDATORY LENDING POLICIES

       Buyer has in place internal policies and procedures that
expressly prohibit its purchase of any High Cost Mortgage Loan.

 [THIS SPACE INTENTIONALLY LEFT BLANK]

IN WITNESS WHEREOF, the parties have entered into this
Repurchase Agreement as of the date set forth above.

BUYER:

MERRILL LYNCH MORTGAGE CAPITAL INC.

By:          /s/  John Winchester

Name:

Title:

Address for Notices:

4 World Financial Center

10th Floor

New York, New York 10080

Attention:  James B. Cason

Telecopier No.:  (212) 449-3673

Telephone No.:  (212) 449-1219

SELLER:

E-LOAN, INC.

By:             /s/  Matt Roberts

Name:  Matt Roberts

Title:    CFO

Address for Notices:

6230 Stoneridge Mall Road

Pleasanton, CA  94588

Attention:  Ed. Giedgowd

Telecopier No.:  925-520-1099

Telephone No:   925-847-6331

SCHEDULE 1

REPRESENTATIONS AND WARRANTIES RE:  MORTGAGE LOANS

The Seller makes the following representations and
warranties to the Buyer, with respect to each Mortgage Loan, that as of the
Purchase Date for the purchase of any Purchased Mortgage Loans by the Buyer from
the Seller and as of the date of this Repurchase Agreement and any Transaction
hereunder relating to such Mortgage Loan is outstanding and at all times while
the Repurchase Documents and any Transaction hereunder is in full force and
effect.  For purposes of this Schedule 1 and the representations and
warranties set forth herein, a breach of a representation or warranty shall be
deemed to have been cured with respect to a Mortgage Loan if and when the Seller
has taken or caused to be taken action such that the event, circumstance or
condition that gave rise to such breach no longer adversely affects such
Mortgage Loan.  With respect to those representations and warranties which are
made to the best of the Seller's knowledge, if it is discovered by the Seller or
the Buyer that the substance of such representation and warranty is inaccurate,
notwithstanding the Seller's lack of knowledge with respect to the substance of
such representation and warranty, such inaccuracy shall be deemed a breach of
the applicable representation and warranty.

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

(b)     Payments Current.  All payments required to be
made up to the close of business on the Purchase Date for such Mortgage Loan
under the terms of the Mortgage Note have been made and credited.  No payment
required under the Mortgage Loan is delinquent nor has any payment under the
Mortgage Loan been delinquent at any time since the origination of the Mortgage
Loan.  The first Monthly Payment shall be made, or shall have been made, with
respect to the Mortgage Loan on its Due Date or within the grace period, all in
accordance with the terms of the related Mortgage Note; 

(c)     No Outstanding Charges.  There are no delinquent
taxes, ground rents, water charges, sewer rents, governmental assessments,
municipal charges, insurance premiums, leasehold payments, including assessments
payable in future installments or other outstanding charges affecting the
related Mortgaged Property. The Seller has not advanced funds, or induced,
solicited or knowingly received any advance of funds by a party other than the
Mortgagor, directly or indirectly, for the payment of any amount required under
the Mortgage Loan, except for interest accruing from the date of the Mortgage
Note or date of disbursement of the Mortgage Loan proceeds, whichever is later,
to the day which precedes by no more than sixty (60) days the Due Date of the
first installment of principal and interest;  

(d)     Original Terms Unmodified.  The terms of the
Mortgage Note and the Mortgage have not been impaired, waived, altered or
modified in any respect, except by written instruments, recorded in the
applicable public recording office if necessary to maintain the lien priority of
the Mortgage, and which have been delivered to the Custodian; the substance of
any such waiver, alteration or modification has been approved by the insurer
under the Primary Insurance Policy, if any, and the title insurer, to the extent
required by the related policy, and is reflected on the related Mortgage Loan
Schedule. No instrument of waiver, alteration or modification has been executed,
and no Mortgagor has been released, in whole or in part, except in connection
with an assumption agreement approved by the insurer under the Primary Insurance
Policy, if any, the title insurer, to the extent required by the policy, and
which assumption agreement has been delivered to the Custodian and the terms of
which are reflected in the related Mortgage Loan Schedule; 

(e)     No Defenses.  The Mortgage Note and the Mortgage
are not subject to any right of rescission, set-off, counterclaim or defense,
including the defense of usury, nor will the operation of any of the terms of
the Mortgage Note and the Mortgage, or the exercise of any right thereunder,
render the Mortgage unenforceable, in whole or in part, or subject to any right
of rescission, set-off, counterclaim or defense, including the defense of usury
and no such right of rescission, set-off, counterclaim or defense has been
asserted with respect thereto, and no Mortgagor was a debtor of any state or
federal bankruptcy or insolvency proceeding at the time the Mortgage Loan was
originated; 

(f)     Hazard Insurance. The Mortgaged Property is
insured by a fire and extended perils insurance policy, issued by a Qualified
Insurer, and such other hazards as are customary in the area where the Mortgaged
Property is located, and to the extent required by Seller as of the date of
origination consistent with the Underwriting Guidelines, against earthquake and
other risks insured against by Persons operating like properties in the locality
of the Mortgaged Property, in an amount not less than the greatest of
(i) 100% of the replacement cost of all improvements to the Mortgaged
Property, (ii) the outstanding principal balance of the Mortgage Loan, or
(iii) the amount necessary to avoid the operation of any co-insurance
provisions with respect to the Mortgaged Property, and consistent with the
amount that would have been required as of the date of origination in accordance
with the Underwriting Guidelines.  If any portion of the Mortgaged Property is
in an area identified by any federal Governmental Authority as having special
flood hazards, and flood insurance is available, a flood insurance policy
meeting the current guidelines of the Federal Emergency Management Agency is in
effect with a generally acceptable insurance carrier, in an amount representing
coverage not less than the least of (1) the outstanding principal balance
of the Mortgage Loan (2) the full insurable value of the Mortgaged
Property, and (3) the maximum amount of insurance available under the
National Flood Insurance Act of 1968, as amended by the Flood Disaster
Protection Act of 1974.  All such insurance policies (collectively, the
"hazard insurance policy") contain a standard mortgagee clause
naming Seller, its successors and assigns (including, without limitation,
subsequent owners of the Mortgage Loan), as mortgagee, and may not be reduced,
terminated or canceled without 30 days' prior written notice to the mortgagee.
No such notice has been received by Seller.  All premiums on such insurance
policy have been paid.  The related Mortgage obligates the Mortgagor to maintain
all such insurance and, at such Mortgagor's failure to do so, authorizes the
mortgagee to maintain such insurance at the Mortgagor's cost and expense and to
seek reimbursement therefor from such Mortgagor.  Where required by state law or
regulation, the Mortgagor has been given an opportunity to choose the carrier of
the required hazard insurance, provided the policy is not a "master"
or "blanket" hazard insurance policy covering a condominium, or any
hazard insurance policy covering the common facilities of a planned unit
development.  The hazard insurance policy is the valid and binding obligation of
the insurer and is in full force and effect.  Seller has not engaged in, and has
no knowledge of the Mortgagor's having engaged in, any act or omission which
would impair the coverage of any such policy, the benefits of the endorsement
provided for herein, or the validity and binding effect of either including,
without limitation, no unlawful fee, commission, kickback or other unlawful
compensation or value of any kind has been or will be received, retained or
realized by any attorney, firm or other Person, and no such unlawful items have
been received, retained or realized by Seller; 

(g)     Compliance with Applicable Law. Any and all
requirements of any federal, state or local law including, without limitation,
usury, truth-in-lending, real estate settlement procedures, consumer credit
protection, equal credit opportunity or disclosure laws applicable to the
Mortgage Loan have been complied with, the consummation of the transactions
contemplated hereby will not involve the violation of any such laws or
regulations, and Seller shall maintain or shall cause its agent to maintain in
its possession, available for the inspection of Buyer, and shall deliver to
Buyer, upon demand, evidence of compliance with all such requirements; 

(h)     No Satisfaction of Mortgage.  The Mortgage has not
been satisfied, cancelled, subordinated or rescinded, in whole or in part, and
the Mortgaged Property has not been released from the lien of the Mortgage, in
whole or in part, nor has any instrument been executed that would effect any
such satisfaction, cancellation, subordination, rescission or release. The
Seller has not waived the performance by the Mortgagor of any action, if the
Mortgagor's failure to perform such action would cause the Mortgage Loan to be
in default, nor has the Seller waived any default resulting from any action or
inaction by the Mortgagor; 

(i)     Valid First or Second Lien. The Mortgage is a
valid, subsisting, enforceable and perfected (a) with respect to each first lien
Mortgage Loan, first priority lien and first priority security interest, or (b)
with respect to each Second Lien Mortgage Loan, second priority lien and second
priority security interest, in each case, on the real property included in the
Mortgaged Property, including all buildings on the Mortgaged Property and all
installations and mechanical, electrical, plumbing, heating and air conditioning
systems located in or annexed to such buildings, and all additions, alterations
and replacements made at any time with respect to the foregoing.  The lien of
the Mortgage is subject only to: 

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

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

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

	with respect to each Mortgage Loan which is a Second Lien
Mortgage Loan, a first lien on the Mortgaged Property.

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

(j)     Validity of Mortgage Documents. The Mortgage Note
and the Mortgage and any other agreement executed and delivered by a Mortgagor
or guarantor, if applicable, in connection with a Mortgage Loan are genuine, and
each is the legal, valid and binding obligation of the maker thereof enforceable
in accordance with its terms.  All parties to the Mortgage Note, the Mortgage
and any other such related agreement had legal capacity to enter into the
Mortgage Loan and to execute and deliver the Mortgage Note, the Mortgage and any
such agreement, and the Mortgage Note, the Mortgage and any other such related
agreement have been duly and properly executed by such related parties.  No
fraud, error, omission, misrepresentation, negligence or similar occurrence with
respect to a Mortgage Loan has taken place on the part of any Person, including,
without limitation, the Mortgagor, any appraiser, any builder or developer, or
any other party involved in the origination of the Mortgage Loan.  Seller has
reviewed all of the documents constituting the Mortgage File and has made such
inquiries as it deems necessary to make and confirm the accuracy of the
representations set forth herein.  To the best of Seller's knowledge, except as
disclosed to Buyer in writing, all tax identifications and property descriptions
are legally sufficient; and tax segregation, where required, has been
completed; 

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

(l)     Ownership. Seller has full right to sell the
Mortgage Loan to Buyer free and clear of any encumbrance, equity, participation
interest, lien, pledge, charge, claim or security interest, and has full right
and authority subject to no interest or participation of, or agreement with, any
other party, to sell each Mortgage Loan pursuant to this Repurchase Agreement
and following the sale of each Mortgage Loan, Buyer will own such Mortgage Loan
free and clear of any encumbrance, equity, participation interest, lien, pledge,
charge, claim or security interest except any such security interest created
pursuant to the terms of this Repurchase Agreement; 

(m)     Doing Business. All parties which have had any
interest in the Mortgage Loan, whether as mortgagee, assignee, pledgee or
otherwise, are (or, during the period in which they held and disposed of such
interest, were) (i) in compliance with any and all applicable licensing
requirements of the laws of the state wherein the Mortgaged Property is located,
and (ii) either (A) organized under the laws of such state,
(B) qualified to do business in such state, (C) a federal savings and
loan association, a savings bank or a national bank having a principal office in
such state, or (D) not doing business in such state; 

(n)     Title Insurance. The Mortgage Loan is covered by
either (i) an attorney's opinion of title and abstract of title, the form
and substance of which is acceptable to prudent mortgage lending institutions
making mortgage loans in the area wherein the Mortgaged Property is located or
(ii) an ALTA lender's title insurance policy or other generally acceptable
form of policy or insurance acceptable to Fannie Mae or Freddie Mac and each
such title insurance policy is issued by a title insurer acceptable to Fannie
Mae or Freddie Mac and qualified to do business in the jurisdiction where the
Mortgaged Property is located, insuring Seller, its successors and assigns, as
to the first priority lien or second priority lien, as applicable of the
Mortgage, as applicable in the original principal amount of the Mortgage Loan
(or to the extent a Mortgage Note provides for negative amortization, the
maximum amount of negative amortization in accordance with the Mortgage),
subject only to the exceptions contained in clauses (i), (ii), (iii), and (iv)
of paragraph (i) of this Schedule 1, and in the case of adjustable rate Mortgage
Loans, against any loss by reason of the invalidity or unenforceability of the
lien resulting from the provisions of the Mortgage providing for adjustment to
the Mortgage Interest Rate and Monthly Payment.  Where required by state law or
regulation, the Mortgagor has been given the opportunity to choose the carrier
of the required mortgage title insurance.  Additionally, such lender's title
insurance policy affirmatively insures ingress and egress and against
encroachments by or upon the Mortgaged Property or any interest therein.  The
title policy does not contain any special exceptions (other than the standard
exclusions) for zoning and uses and has been marked to delete the standard
survey exception or to replace the standard survey exception with a specific
survey reading.  Seller, its successors and assigns, are the sole insureds of
such lender's title insurance policy, and such lender's title insurance policy
is valid and remains in full force and effect and will be in force and effect
upon the consummation of the transactions contemplated by this Repurchase
Agreement.  No claims have been made under such lender's title insurance policy,
and no prior holder or servicer of the related Mortgage, including Seller, has
done, by act or omission, anything which would impair the coverage of such
lender's title insurance policy, including, without limitation, no unlawful fee,
commission, kickback or other unlawful compensation or value of any kind has
been or will be received, retained or realized by any attorney, firm or other
Person, and no such unlawful items have been received, retained or realized by
Seller; 

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

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

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

(r)     Origination. The Mortgage Loan was originated by
or in conjunction with a mortgagee approved by the Secretary of Housing and
Urban Development pursuant to s 203 and 211 of the National Housing Act, a
lender approved by Fannie Mae, a seller/servicer approved by Freddie Mac, a
savings and loan association, a savings bank, a commercial bank, credit union,
insurance company or similar banking institution which is supervised and
examined by a federal or state authority.  Principal payments on the Mortgage
Loan commenced no more than 60 days after funds were disbursed in connection
with the Mortgage Loan.  The Mortgage Interest Rate is adjusted, with respect to
adjustable rate Mortgage Loans, on each Interest Rate Adjustment Date to equal
the Index plus the Gross Margin (rounded up or down to the nearest .125%),
subject to the Mortgage Interest Rate Cap.  Other than with respect to HELOCs,
the Mortgage Note is payable on the first day of each month in equal monthly
installments of principal and interest, which installments of interest, with
respect to adjustable rate Mortgage Loans, are subject to change due to the
adjustments to the Mortgage Interest Rate on each Interest Rate Adjustment Date,
with interest calculated and payable in arrears, sufficient to amortize the
Mortgage Loan fully by the stated maturity date, over an original term of not
more than 30 years from commencement of amortization.  The Due Date of the first
payment under the Mortgage Note is no more than 60 days from the date of the
Mortgage Note; 

(s)     Payment Provisions.  The Mortgage Note does not
permit negative amortization; 

(t)     Customary Provisions.  The Mortgage Note has a
stated maturity.  The Mortgage contains customary and enforceable provisions
such as to render the rights and remedies of the holder thereof adequate for the
realization against the Mortgaged Property of the benefits of the security
provided thereby, including, (i) in the case of a Mortgage designated as a
deed of trust, by trustee's sale, and (ii) otherwise by judicial
foreclosure.  Upon default by a Mortgagor on a Mortgage Loan and foreclosure on,
or trustee's sale of, the Mortgaged Property pursuant to the proper procedures,
the holder of the Mortgage Loan will be able to deliver good and merchantable
title to the Mortgaged Property.  There is no homestead or other exemption
available to a Mortgagor which would interfere with the right to sell the
Mortgaged Property at a trustee's sale or the right to foreclose the Mortgage.
The Mortgage Note and Mortgage are on forms acceptable to Freddie Mac or Fannie
Mae; each HELOC was underwritten in accordance with the Underwriting Guidelines
in effect at the time that the Mortgage Loan was written. 

(u)     Collection Practices; Escrow Deposits; Interest Rate
Adjustments.  The origination and collection practices used by the Seller
with respect to each Mortgage Note and Mortgage have been in all respects legal,
proper, prudent and customary in the mortgage origination and servicing
industry.  The Mortgage Loan has been serviced by the Seller and any predecessor
servicer in accordance with the terms of the Mortgage Note.  With respect to
escrow deposits and Escrow Payments, if any, all such payments are in the
possession of, or under the control of, the Seller and there exist no
deficiencies in connection therewith for which customary arrangements for
repayment thereof have not been made. No escrow deposits or Escrow Payments or
other charges or payments due the Seller have been capitalized under any
Mortgage or the related Mortgage Note and no such escrow deposits or Escrow
Payments are being held by the Seller for any work on a Mortgaged Property which
has not been completed. All Mortgage Interest Rate adjustments have been made in
strict compliance with state and federal law and the terms of the related
Mortgage Note. Any interest required to be paid pursuant to state and local law
has been properly paid and credited; 

(v)     Mortgaged Property Undamaged.  The Mortgaged
Property is free of damage by fire, earthquake or earth movement, windstorm,
flood, tornado or other casualty and waste, and there is no proceeding pending
for the total or partial condemnation thereof; 

(w)     Customary Provisions.  The Mortgagor has not
notified the Seller and the Seller has no knowledge of any relief requested or
allowed to the Mortgagor under the Soldiers and Sailors Civil Relief Act of
1940; 

(x)     Conformance with Agency Standards.  The Mortgage
Loan was underwritten in accordance with the Underwriting Guidelines in effect
at the time the Mortgage Loan was originated which underwriting standards, and,
other than with respect to the HELOCs, satisfy the standards of Fannie Mae and
Freddie Mac under one of their respective home mortgage purchase programs
(except that the principal balance of Jumbo Mortgage Loans may have exceeded the
limits of Fannie Mae and Freddie Mac).  Other than with respect to HELOCs, the
Mortgage Note and Mortgage are on forms acceptable to Fannie Mae and Freddie
Mac; 

(y)     No Additional Collateral.  The Mortgage Note is
not and has not been secured by any collateral except the lien of the
corresponding Mortgage on the Mortgaged Property and the security interest of
any applicable security agreement or chattel mortgage referred to in (j)
above; 

(z)     Appraisal.  Except with respect to the HELOCs
originated in accordance with the Underwriting Guidelines, the Mortgage File
contains an appraisal of the related Mortgaged Property which satisfied the
standards of Fannie Mae and Freddie Mac and was made and signed, prior to the
approval of the Mortgage Loan application, by a qualified appraiser, duly
appointed by the Seller, who had no interest, direct or indirect in the
Mortgaged Property or in any loan made on the security thereof, whose
compensation is not affected by the approval or disapproval of the Mortgage Loan
and who met the minimum qualifications of Fannie Mae and Freddie Mac.  Each
appraisal of the Mortgage Loan was made in accordance with the requirements of
Title XI of the Federal Institutions Reform, Recovery, and Enforcement Act of
1989 and the regulations promulgated thereunder, all as in effect on the date
the Mortgage Loan was originated; 

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

(bb)     No Buydown Provisions; No Graduated Payments or
Contingent Interests.  Other than those Mortgage Loans acceptable for
purchase by an Agency, no Mortgage Loan contains provisions pursuant to which
Monthly Payments are (a) paid or partially paid with funds deposited in any
separate account established by the Seller, the Mortgagor, or anyone on behalf
of the Mortgagor, (b) paid by any source other than the Mortgagor or (c)
contains any other similar provisions which may constitute a "buydown"
provision. The Mortgage Loan is not a graduated payment mortgage loan and the
Mortgage Loan does not have a shared appreciation or other contingent interest
feature; 

(cc)     Mortgagor Acknowledgment.  The Mortgagor has
executed a statement to the effect that the Mortgagor has received all
disclosure materials required by applicable law with respect to the making of
fixed rate mortgage loans in the case of Fixed Rate Mortgage Loans, and
adjustable rate mortgage loans in the case of Adjustable Rate Mortgage Loans and
rescission materials with respect to Refinanced Mortgage Loans, and such
statement is and will remain in the Mortgage File; 

(dd)     No Construction Loans.  No Mortgage Loan was made
in connection with (a) the construction or rehabilitation of a Mortgaged
Property or (b) facilitating the trade-in or exchange of a Mortgaged
Property; 

(ee)     Acceptable Investment.  The Seller has no
knowledge of any circumstances or condition with respect to the Mortgage, the
Mortgaged Property, the Mortgagor or the Mortgagor's credit standing that can
reasonably be expected to cause the Mortgage Loan to be an unacceptable
investment, cause the Mortgage Loan to become delinquent, or adversely affect
the value of the Mortgage Loan; 

(ff)     LTV, PMI Policy.  No Jumbo Mortgage Loan or Sub-
Prime Mortgage Loan has an LTV ("loan-to-value" ratio) in
excess of 95%.  No HELOC has a "combined loan-to-value" ratio in
excess of 100%.  Except with respect to HELOCs, each Mortgage Loan with an LTV
at origination in excess of 80% is and will be subject to a lender paid Mortgage
Insurance Policy or a Primary Mortgage Insurance Policy, issued by a Qualified
Insurer, which insures that portion of the Mortgage Loan in excess of the
portion of the Appraised Value of the Mortgaged Property required by the
applicable Underwriting Guidelines or Agency. All provisions of such Primary
Insurance Policy have been and are being complied with, such policy is in full
force and effect, and all premiums due thereunder have been paid. Any Mortgage
subject to any such Primary Insurance Policy obligates the Mortgagor thereunder
to maintain such insurance and to pay all premiums and charges in connection
therewith. The Mortgage Interest Rate for the Mortgage Loan does not include any
such insurance premium; 

(gg)     Capitalization of Interest.  The Mortgage Note
does not by its terms provide for the capitalization or forbearance of
interest. 

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

(ii)     Proceeds of Mortgage Loan.  The proceeds of the
Mortgage Loan have not been and shall not be used to satisfy, in whole or in
part, any debt owed or owing by the Mortgagor to Seller or any Affiliate or
correspondent of Seller, except in connection with a refinanced Mortgage
Loan. 

(jj)     Origination Date.  The origination date is no
earlier than sixty (60) days prior to the related Purchase Date. 

(kk)     No Exception.  The Custodian has not noted any
material exceptions on a Mortgage Loan Schedule and Exception Report with
respect to the Mortgage Loan which would materially adversely affect the
Mortgage Loan or Buyer's interest in the Mortgage Loan. 

(ll)     Occupancy of Mortgaged Property.  The Mortgaged
Property is lawfully occupied under applicable law; all inspections, licenses
and certificates required to be made or issued with respect to all occupied
portions of the Mortgaged Property and, with respect to the use and occupancy of
the same, including but not limited to certificates of occupancy, have been made
or obtained from the appropriate authorities; 

(mm)     No Misrepresentation or Fraud.  No error,
omission, misrepresentation, negligence, fraud or similar occurrence with
respect to a Mortgage Loan has taken place on the part of any person, including
without limitation the Mortgagor, any appraiser, any builder or developer, or
any other party involved in the origination of the Mortgage Loan or in the
application of any insurance in relation to such Mortgage Loan; 

(nn)     Transfer of Mortgage Loans.  Except with respect
to Mortgage Loans registered with MERS, the Assignment of Mortgage is in
recordable form and is acceptable for recording under the laws of the
jurisdiction in which the Mortgaged Property is located; 

(oo)     Consolidated Future Advances.  Any principal
advances made to the Mortgagor prior to the Cut-off Date have been consolidated
with the outstanding principal amount secured by the Mortgage, and the secured
principal amount, as consolidated, bears a single interest rate and single
repayment term. Other than with respect to Second Lien Mortgage Loans, the lien
of the Mortgage securing the consolidated principal amount is expressly insured
as having first lien priority by a title insurance policy, an endorsement to the
policy insuring the mortgagee's consolidated interest or by other title evidence
acceptable to Fannie Mae and Freddie Mac. The consolidated principal amount does
not exceed the original principal amount of the Mortgage Loan; 

(pp)     No Balloon Payment.  No Mortgage Loan has a
balloon payment feature; 

(qq)     Condominiums/ Planned Unit Developments.  If the
Residential Dwelling on the Mortgaged Property is a condominium unit or a unit
in a planned unit development (other than a de minimis planned unit development)
such condominium or planned unit development project meets the eligibility
requirements of Fannie Mae and Freddie Mac including Fannie Mae eligibility
requirements for sale to Fannie Mae or is located in a condominium or planned
unit development project which has received Fannie Mae project approval and the
representations and warranties required by Fannie Mae with respect to such
condominium or planned unit development have been made and remain true and
correct in all respects; 

(rr)     Downpayment.  The source of the down payment with
respect to each Mortgage Loan has been fully verified by the Seller; 

(ss)     Calculation of Interest.  Other than with respect
to HELOCs, interest on each Mortgage Loan is calculated on the basis of a 360-
day year consisting of twelve 30-day months; Interest on each HELOC is
calculated on the basis of a 365-day year; 

(tt)     Environmental Matters.  The Mortgaged Property is
in material compliance with all applicable local, state and federal
environmental laws, rules or regulations pertaining to environmental hazards
including, without limitation, asbestos, and neither the Seller nor, to the
Seller's knowledge, the related Mortgagor, has received any notice of any
violation or potential violation of such law nor is there any pending action or
proceeding directly involving any Mortgaged Property of which the Seller is
aware in which compliance with any environmental law, rule or regulation is an
issue; 

(uu)     Predatory Lending Regulations; High Cost Loans. No
Mortgage Loan is a High Cost Mortgage Loan. 

(vv)     Location and Type of Mortgaged Property.  The
Mortgaged Property is a fee simple property or subject to a Ground Lease located
in the state identified in the Mortgage Loan Schedule and consists of a parcel
of real property with a detached single family residence erected thereon, or a
two- to four-family dwelling, or an individual condominium unit in a low-rise
condominium project, or an individual unit in a planned unit development,
provided, however, that any condominium project or planned unit development
shall conform with the applicable Fannie Mae and Freddie Mac requirements
regarding such dwellings, and no residence or dwelling is a mobile home or a
manufactured dwelling. No portion of the Mortgaged Property is used for
commercial purposes;  

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

(xx)     No Denial of Insurance.  No action, inaction, or
event has occurred and no state of facts exists or has existed that has resulted
or will result in the exclusion from, denial of, or defense to coverage under
any applicable pool insurance policy, special hazard insurance policy, PMI
Policy or bankruptcy bond, irrespective of the cause of such failure of
coverage. In connection with the placement of any such insurance, no commission,
fee, or other compensation has been or will be received by the Seller or any
designee of the Seller or any corporation in which the Seller or any officer,
director, or employee had a financial interest at the time of placement of such
insurance. The Seller has caused or will cause to be performed any and all acts
required to preserve the rights and remedies of the Buyer in any insurance
policies applicable to the Mortgage Loans including, without limitation, any
necessary notifications of insurers, assignments of policies or interests
therein, and establishments of coinsured, joint loss payee and mortgagee rights
in favor of the Buyer; 

(yy)     Flood Certification Contract. If any portion of
the Mortgaged Property is in an area identified by any federal Governmental
Authority as having special flood hazards, and flood insurance is available, the
Seller has obtained a life of loan, transferable flood certification contract
for each Mortgage Loan and such contract is assignable without penalty, premium
or cost to the Buyer; 

(zz)     Tax Service Contract.  Other than with respect to
HELOCs, the Seller has obtained, or will obtain, a life of loan, transferable
real estate Tax Service Contract with an Approved Tax Service Contract Provider
on each Mortgage Loan and such contract is assignable without penalty, premium
or cost to the Buyer; 

(aaa)     Recordation.  Each original Mortgage was recorded
and, except for those Mortgage Loans subject to the MERS identification system,
all subsequent assignments of the original Mortgage (other than the assignment
to the Buyer) have been recorded in the appropriate jurisdictions wherein such
recordation is necessary to perfect the lien thereof as against creditors of the
Seller, or is in the process of being recorded; 

(bbb)     Simple Interest Mortgage Loans.  Other than with
respect to HELOCs, none of the Mortgage Loans are simple interest Mortgage
Loans; 

(ccc)     Documents Genuine.  Such Purchased Mortgage Loan
and all accompanying collateral documents are complete and authentic and all
signatures thereon are genuine.  Such Purchased Mortgage Loan is a
"closed" loan fully funded by the Seller (other than with respect to
HELOCs) and held in Seller's name. 

(ddd)     Bona Fide Loan.  Such Purchased Mortgage Loan
arose from a bona fide loan, complying with all applicable State and Federal
laws and regulations, to persons having legal capacity to contract and is not
subject to any defense, set-off or counterclaim. 

(eee)     Other Encumbrances.  To the best of Seller's
knowledge, any property subject to any security interest given in connection
with such Purchased Mortgage Loan is not subject to any other encumbrances other
than a stated first mortgage, if applicable, and encumbrances which may be
allowed under the Underwriting Guidelines. 

(fff)     Description.  Each Purchased Mortgage Loan
conforms to the description thereof as set forth on the related Mortgage Loan
Schedule and Exception Report delivered to the Custodian and Buyer. 

(ggg)     Located in U.S.  No collateral (including, without
limitation, the related real property and the dwellings thereon and otherwise)
relating to a Purchased Mortgage Loan is located in any jurisdiction other than
in one of the fifty (50) states of the United States of America or the District
of Columbia. 

(hhh)     Prepayment Penalty.  With respect to each Mortgage
Loan that has a Prepayment Penalty feature, each such Prepayment Penalty is
enforceable and will be enforced by the Seller, and each Prepayment Penalty is
permitted pursuant to federal, state and local law. No Mortgage Loan will impose
a Prepayment Penalty for a term in excess of five years from the date such
Mortgage Loan was originated.  Except as otherwise set forth on the Mortgage
Loan Schedule, with respect to each Mortgage Loan that contains a Prepayment
Penalty, such Prepayment Penalty is not in excess of the maximum amount
permitted under applicable law; 

(iii)     Servicing Practices.Each Mortgage Loan has
been serviced in all material respects in compliance with those mortgage
servicing practices (including collection procedures) of prudent mortgage
banking institutions which service mortgage loans of the same type as such
Mortgage Loan in the jurisdiction where the related Mortgaged Property is
located; and 

(jjj)     Single-Premium Credit Life Insurance.None of
the proceeds of the Mortgage Loan were used to finance single-premium credit
insurance policies. 

(kkk)     Takeout Commitment.  If a Conforming
Mortgage Loan or Jumbo Mortgage Loan is covered by a Take-out Commitment, it
does not exceed the availability under such Take-out Commitment (taking into
consideration mortgage loans which have been purchased by the respective Take-
out Investor under the Take-out Commitment and mortgage loan which Seller has
identified to Buyer as covered by such Take-out Commitment) and conforms to the
requirements and the specifications set forth in such Take-out Commitment and
the related regulations, rules, requirements and/or handbooks of the applicable
Take-out Investor and is eligible for sale to and insurance or guaranty by,
respectively the applicable Take-out Investor and applicable insurer. 

Each Takeout Commitment is a legal, valid and binding
obligation of Seller enforceable against it in accordance with its terms,
subject to applicable bankruptcy, insolvency and similar laws affecting
creditors' rights generally and subject, as to enforceability, to general
principles of equity (regardless of whether enforcement is sought in a
proceeding in equity or at law).

(lll)     FHA Mortgage Insurance; VA Loan Guaranty.  With
respect to the FHA Loans, the FHA Mortgage Insurance Contract is in full force
and effect and there exists no impairment to full recovery without indemnity to
the Department of Housing and Urban Development or the FHA under FHA Mortgage
Insurance.  With respect to the VA Loans, the VA Loan Guaranty Agreement is in
full force and effect to the maximum extent stated therein.  All necessary steps
have been taken to keep such guaranty or insurance valid, binding and
enforceable and each of such is the binding, valid and enforceable obligation of
the FHA and the VA, respectively, to the full extent thereof, without surcharge,
set-off or defense.  Each FHA Loan and VA Loan was originated in accordance with
the criteria of an Agency for purchase of such Mortgage Loans.  Each Mortgage
Loan which is represented to Buyer to have, or to be eligible for, FHA insurance
is insured, or eligible to be insured, pursuant to the National Housing Act.
Each Mortgage Loan which is represented by Seller to be guaranteed, or to be
eligible for guaranty, by the VA is guaranteed, or eligible to be guaranteed,
under the provisions of Chapter 37 of Title 38 of the United States Code.  As to
each FHA insurance certificate or each VA guaranty certificate, Seller has
complied with applicable provisions of the insurance for guaranty contract and
federal statutes and regulations, all premiums or other charges due in
connection with such insurance or guarantee have been paid, there has been no
act or omission which would or may invalidate any such insurance or guaranty,
and the insurance or guaranty is, or when issued, will be, in full force and
effect with respect to each Mortgage Loan.  There are no defenses,
counterclaims, or rights of setoff affecting the Mortgage Loans or affecting the
validity or enforceability of any private mortgage insurance or FHA insurance
applicable to the Mortgage Loans or any VA guaranty with respect to the Mortgage
Loans. 

 

 

*The remaining exhibits and schedules have been omitted in
accordance with Item 601 of Regulation S-K, and will be provided upon request.

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