Document:

Exhibit 10.19

 

LOAN SALE AGREEMENT

 

 

 

between

 

MORTGAGEIT, INC.

 

as a seller

 

 

and

 

 

MORTGAGEIT HOLDINGS, INC.

 

as a seller

 

and

 

MORTGAGEIT SPV I

acting with respect to the REIT
Sub-Trust

and acting with respect to the

TRS Sub-Trust

 

as the purchaser

 

 

 

 

Dated as of

 

August 4, 2004

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II SALE AND
  CONTRIBUTION OF MORTGAGE LOANS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01

  	
  Acquisition; Capital
  Contribution.

  	
   

  
	
  SECTION 2.02

  	
  Delivery of Submission
  Packages

  	
   

  
	
  SECTION 2.03

  	
  Intention of the
  Parties; Grant of Security Interest

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01

  	
  Representations and
  Warranties.

  	
   

  
	
  SECTION 3.02

  	
  Repurchase of Mortgage
  Loans by the Sellers.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01

  	
  Covenants of Sellers

  	
   

  
	
  SECTION 4.02

  	
  Purchaser Covenants

  	
   

  
	
  SECTION 4.03

  	
  Pledge of Mortgage
  Loans

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V CONDITIONS
  PRECEDENT

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01

  	
  Conditions to the
  Trust Obligations

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI TERMINATION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01

  	
  Termination

  	
   

  
	
  SECTION 6.02

  	
  Effect of Termination

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII
  MISCELLANEOUS PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01

  	
  Amendment

  	
   

  
	
  SECTION 7.02

  	
  GOVERNING LAW;
  JURISDICTION.

  	
   

  
	
  SECTION 7.03

  	
  Notices

  	
   

  
	
  SECTION 7.04

  	
  Severability of
  Provisions

  	
   

  
	
  SECTION 7.05

  	
  Assignment

  	
   

  
	
  SECTION 7.06

  	
  Further Assurances

  	
   

  
	
  SECTION 7.07

  	
  No Waiver; Cumulative
  Remedies

  	
   

  
	
  SECTION 7.08

  	
  Counterparts

  	
   

  
	
  SECTION 7.09

  	
  Binding Effect:
  Third-Party Beneficiaries

  	
   

  
	
  SECTION 7.10

  	
  Merger and Integration

  	
   

  
	
  SECTION 7.11

  	
  Headings

  	
   

  
	
  SECTION 7.12

  	
  Schedules and Exhibits

  	
   

  
	
  SECTION 7.13

  	
  No Bankruptcy Petition
  Against the Trust

  	
   

  
	
  SECTION 7.14

  	
  No Recourse

  	
   

  

 

i

 

SCHEDULES & ANNEXES

 

	
  Schedule 1

  	
   

  	
  Definitions List

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule 2

  	
   

  	
  Representations and
  Warranties

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule 3

  	
   

  	
  Seller’s Former
  Names and Current or Former Trade Names, Fictitious Names, Assumed Names and
  or “Doing Business As” Names

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule 4

  	
   

  	
  UCC Filing Jurisdictions

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Annex 1

  	
   

  	
  Form of Seller’s Officer’s Certificate

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Annex 2

  	
   

  	
  Form of Seller’s Officer’s Certificate for
  Hedge Reports and Covenant Compliance

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Annex 3

  	
   

  	
  Form of Financial Statement Footnote

  	
   

  

 

ii

 

THIS LOAN SALE AGREEMENT (as amended, supplemented or otherwise
modified from time to time, this “Loan Sale Agreement” or “Agreement”),
dated as of August 4, 2004, is made between MortgageIT, Inc., a New York
corporation, as a seller (“MortgageIT”), MortgageIT Holdings, Inc., a
Maryland corporation, as a seller (“MortgageIT Holdings”, and together
with MortgageIT, the “Sellers”, and each, individually, a “Seller”),
and MortgageIT SPV I, a Delaware statutory trust (the “Trust”), acting
with respect to the REIT Sub-Trust and, separately, acting with respect to the
TRS Sub-Trust as the purchaser.

 

WITNESSETH:

 

WHEREAS, pursuant to the terms of a Master Mortgage
Loan Purchase Agreement, dated as of August 4, 2004, by and between MortgageIT,
as the seller thereunder, and MortgageIT Holdings, as the purchaser thereunder
(as amended, supplemented or otherwise modified and in effect from time to
time, the “Originator’s Loan Sale Agreement”), MortgageIT Holdings will
from time to time acquire REIT Mortgage Loans from MortgageIT;

 

WHEREAS, pursuant to the terms of this Loan Sale
Agreement, MortgageIT Holdings desires from time to time to sell REIT Mortgage
Loans to the REIT Sub-Trust and MortgageIT desires from time to time to sell
TRS Mortgage Loans to the TRS Sub-Trust upon the terms and conditions
hereinafter set forth;

 

WHEREAS, pursuant to the terms of a Mortgage Loan
Repurchase Agreement, dated as of the date hereof, between the TRS Sub-Trust,
as seller thereunder, and UBS, as the purchaser thereunder, (as amended,
supplemented or otherwise modified and in effect from time to time, the “Loan
Repurchase Agreement”), UBS Real Estate Securities Inc. (“UBS”) will
from time to time acquire the TRS Mortgage Loans from the TRS Sub-Trust,
subject to the TRS Sub-Trust’s obligation to repurchase such TRS Mortgage Loans
and upon the terms and conditions set forth therein;

 

WHEREAS, the REIT Sub-Trust, UBS, and certain other
entities are parties to the Note Purchase and Security Agreement, dated as of
the date hereof (as amended, supplemented or otherwise modified and in effect
from time to time, the “Note Purchase Agreement”), pursuant to which
certain parties thereto (the “Note Purchasers”), severally, have agreed,
subject to the terms and conditions of the Note Purchase Agreement, to purchase
the Notes issued thereunder by the REIT Sub-Trust (the “Notes”), which
will be secured by the REIT Mortgage Loans owned by the REIT Sub-Trust and will
be held from time to time by the entities that are parties to the Note Purchase
Agreement as Noteholders (each a “Noteholder”) and UBS is acting
thereunder as agent for the Note Purchasers and the Noteholders (in that
capacity, the “Agent”);

 

WHEREAS, pursuant to the terms of the Note Purchase
Agreement, the REIT Sub-Trust will from time to time pledge the REIT Mortgage
Loans to secure the Notes;

 

WHEREAS, pursuant to the terms of a Mortgage Loan
Purchase Agreement, dated as of the date hereof, between the TRS Sub-Trust and
UBS (as amended, supplemented or otherwise modified and in effect from time to
time, the “Loan Purchase Agreement”), and a Mortgage Loan Participation
Agreement, dated as of the date hereof between the TRS Sub-Trust and UBS (as
amended, supplemented or otherwise modified and in effect from time to time,
the

 

 

“Loan
Participation Agreement”) UBS will from time to time acquire TRS Mortgage
Loans or Participation Certificates backed by TRS Mortgage Loans from the TRS
Sub-Trust upon the terms and conditions set forth therein.

 

WHEREAS, each of MortgageIT, MortgageIT Holdings and
the Trust agree that all representations, warranties, covenants and agreements
made by it herein will be for the benefit of other parties hereto and will be
assigned by the Trust (1) with respect to the TRS Mortgage Loans, to UBS, and
(2) with respect to the REIT Mortgage Loans, to UBS for the benefit of UBS, the
Note Purchasers and the Noteholders; and

 

NOW, THEREFORE, in consideration of the mutual
covenants contained herein, and other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the parties hereto agree
as follows:

 

ARTICLE I

 

DEFINITIONS

 

SECTION 1.01       Definitions.  For all purposes of this Loan Sale
Agreement, except as otherwise expressly provided herein or unless the context
otherwise requires, capitalized terms not otherwise defined herein shall have
the meanings assigned to such terms in the definitions contained in the
Definitions List attached as Schedule 1 to this agreement.  As used in this Loan Sale Agreement, the
following terms shall have the following meanings:

 

“Agency Approvals”:  As defined in Section 3.01(a)(ix) of this Agreement.

 

“Event of Default”:     As
defined in the Loan Repurchase Agreement.

 

ARTICLE II

 

SALE AND CONTRIBUTION OF
MORTGAGE LOANS

 

SECTION 2.01       Acquisition;
Capital Contribution.

 

(a)           On
the Effective Date and on any Note Purchase Date thereafter until and including
the Termination Date, MortgageIT Holdings will sell and does hereby sell, and
the REIT Sub-Trust will purchase and does hereby purchase, REIT Mortgage Loans
owned by MortgageIT Holdings, whether now existing or hereafter arising,
without recourse (except as provided in Sections 3.02 and 4.01(a) hereof).  After each such sale, ownership in the REIT
Mortgage Loans will be vested in and attributed to the REIT Sub-Trust.  In connection with such sale, to the extent
that the fair market value of the REIT Mortgage Loans sold hereby by MortgageIT
Holdings exceeds the cash consideration received by it in connection therewith,
then simultaneously with such sale, MortgageIT Holdings shall be deemed to have
made a new contribution of capital to the REIT Sub-Trust in the amount of such
excess, which shall be recorded by the Administrator pursuant to Section 5.06
of the Trust Agreement.

 

2

 

As of the date hereof and on any Purchase Date
thereafter until and including the date on which the Loan Repurchase Agreement,
the Loan Purchase Agreement and the Loan Participation Agreement are terminated
or cease to be effective, MortgageIT will sell and does hereby sell, and the
TRS Sub-Trust will purchase and does hereby purchase, the TRS Mortgage Loans
owned by MortgageIT, whether now existing or hereafter arising, without
recourse (except as provided in Sections 3.02 and 4.01(a) hereof).  After each such sale, ownership in the TRS
Mortgage Loans will be vested in and attributed to the TRS Sub-Trust.  In connection with such sale, to the extent
that the fair market value of the TRS Mortgage Loans sold hereby by MortgageIT
exceeds the cash consideration received by it in connection therewith, then
simultaneously with such sale, MortgageIT shall be deemed to have made a new
contribution of capital to the TRS Sub-Trust in the amount of such excess,
which shall be recorded by the Administrator pursuant to Section 5.06 of the
Trust Agreement.

 

(b)           On
the Effective Date, MortgageIT shall sell, along with the TRS Mortgage Loans,
all of its rights and benefits under each Takeout Commitment to the full extent
permitted by the Takeout Investor, to deliver the Mortgage Loans specified
therein to the Takeout Investor and to receive the Takeout Proceeds therefore
from the Takeout Investor.  On the
Effective Date, MortgageIT Holdings shall also sell all of its rights and
benefits under the Originator’s Loan Sale Agreement to the REIT Sub-Trust,
along with the REIT Mortgage Loans, including its rights and benefits under
each Takeout Commitment to the full extent permitted by the Takeout Investor,
to deliver the Mortgage Loans specified therein to the Takeout Investor and to
receive the Takeout Proceeds therefore from the Takeout Investor.  The REIT Sub-Trust shall have the right to
exercise any and all of MortgageIT Holdings’ rights under the Originator’s Loan
Sale Agreement and shall be entitled to all of the benefits of MortgageIT
Holdings thereunder to the extent provided for in such sale.

 

(c)           In
connection with the sale and contribution described in Section 2.01(b) above,
MortgageIT Holdings agrees to record and file, at its expense, financing
statements in the relevant jurisdictions (and thereafter will file continuation
statements with respect to such financing statements) with respect to all of
the REIT Mortgage Loans contributed and to be transferred by it to the REIT
Sub-Trust pursuant to this Loan Sale Agreement, meeting the requirements of
applicable state law in such manner and in such jurisdictions as are necessary
to perfect and to maintain the perfection of, the transfer, conveyance and
contribution of the Mortgage Loans from such Seller to the REIT Sub-Trust and
the pledge of the REIT Collateral from the REIT Sub-Trust to UBS, and to
deliver a file-stamped copy of such financing statements or other evidence of
such filings to UBS on or prior to the initial Note Purchase Date; provided,
however, that the related Mortgage Files (including each original
executed Mortgage) will not be physically delivered to UBS but instead will be
held by the Custodian.

 

In connection with the sale and contribution described
in Section 2.01(b) above, MortgageIT agrees to record and file, at its expense,
financing statements in the relevant jurisdictions (and thereafter will file
continuation statements with respect to such financing statements) with respect
to all of the TRS Mortgage Loans contributed and to be transferred by it to the
TRS Sub-Trust pursuant to this Loan Sale Agreement, meeting the requirements of
applicable state law in such manner and in such jurisdictions as are necessary
to perfect and to maintain the perfection of, the transfer, conveyance and
contribution of the Mortgage Loans from such Seller to the TRS Sub-Trust and
the sale of the TRS Collateral from the TRS Sub-Trust

 

3

 

to UBS, and to deliver a file-stamped copy of such
financing statements or other evidence of such filings to UBS on or prior to
the initial Purchase Date; provided, however, that the related
Mortgage Files (including each original executed Mortgage) will not be
physically delivered to UBS but instead will be held by the Custodian.

 

(d)           Notwithstanding
anything to the contrary, MortgageIT and the TRS Sub-Trust intend the sale and
transfer of the TRS Mortgage Loans to UBS under the Loan Repurchase Agreement,
this Loan Sale Agreement or the Loan Participation Agreement to be sales of the
TRS Mortgage Loans rather than borrowings secured by the Mortgage Loans for
legal purposes.

 

(e)           If
in any enforcement suit or legal proceeding it is held that either Servicer may
not enforce a Mortgage on the ground that it is not a real party in interest or
holder entitled to enforce the Mortgage, the related Sub-Trust shall, at the
expense of the related Seller, take such steps as such Servicer deems necessary
to enforce the Mortgage, including bringing suit in the such Sub-Trust’s name.

 

(f)            Pursuant
to Section 2.01(a) hereof, MortgageIT Holdings from time to time may convey
additional REIT Mortgage Loans to REIT Sub-Trust by delivering a Loan Purchase
Detail with respect to such Eligible Mortgage Loan to REIT Sub-Trust on the
related Note Purchase Date.  Pursuant to
Section 2.01(a) hereof, MortgageIT from time to time may convey additional TRS
Mortgage Loans to TRS Sub-Trust by delivering a Loan Purchase Detail with
respect to such Eligible Mortgage Loan to TRS Sub-Trust on the related Purchase
Date.

 

(g)           Except
for the obligations of each Seller hereunder with respect to any breach of a
representation, warranty or covenant made herein and except as otherwise
specified in Section 3.02(d), the sale and conveyance of the Eligible Mortgage
Loans will be without recourse to such Seller.

 

(h)           The
Trust acknowledges that each Seller is selling the Mortgage Loans on a
“servicing released” basis, with MortgageIT, Inc. acting as the TRS Servicer,
with respect to the TRS Mortgage Loans, and MortgageIT Holdings, Inc. acting as
Master Servicer, with respect to the REIT Mortgage Loans.

 

SECTION 2.02       Delivery
of Submission Packages.  Pursuant to
Section 2 of the Custodial Agreement, in connection with each assignment and
conveyance, the related Seller shall on behalf of and at the direction of the
Trust deliver to, and deposit with the Custodian at the times contemplated by
the Custodial Agreement, the Submission Packages and a related Loan Purchase
Detail, as applicable with respect to each of the Mortgage Loans to be sold to
the Trust and pledged or sold by the Trust to UBS.

 

SECTION 2.03       Intention
of the Parties; Grant of Security Interest.  It is the intention of the parties hereto that each transfer of
the Eligible Mortgage Loans to be made pursuant to the terms hereof shall
constitute an absolute assignment and a sale or capital contribution of such
Eligible Mortgage Loan by the related Seller to the Trust and not a loan.  In the event, however, that a court of
competent jurisdiction were to hold that any such transfer constitutes a loan
and not a sale or capital contribution, it is the intention of the parties
hereto

 

4

 

that this Loan Sale
Agreement is deemed to be a security agreement and that such Seller shall be
deemed to have granted to the Trust as of the date hereof a first priority
perfected security interest in all of such Seller’s right, title and interest
in, to and under each Mortgage Loan and all related Mortgage Documents whether
now or hereafter acquired and wherever located, and all income and proceeds
thereof.  With respect to each REIT
Mortgage Loan, it is the intention of the parties hereto that each transfer of
the REIT Mortgage Loans to be made pursuant to the terms hereof shall
constitute an absolute assignment and a sale or capital contribution of such
REIT Mortgage Loan by MortgageIT Holdings to the REIT Sub-Trust and not a
loan.  With respect to each TRS Mortgage
Loan, it is the intention of the parties hereto that each transfer of the TRS
Mortgage Loans to be made pursuant to the terms hereof shall constitute an
absolute assignment and a sale or capital contribution of such TRS Mortgage
Loan by MortgageIT to the TRS Sub-Trust and not a loan.  In the event, however, that a court of
competent jurisdiction were to hold that any such transfer constitutes a loan
and not a sale or capital contribution, it is the intention of the parties
hereto that this Loan Sale Agreement is deemed to be a security agreement and
that each Seller shall be deemed to have granted to the related Sub-Trust as of
the date hereof a first priority perfected security interest in all of such
Seller’s right, title and interest in, to and under each Mortgage Loan and all
related Mortgage Documents whether now or hereafter acquired and wherever
located, and all income and proceeds thereof.

 

ARTICLE III

 

REPRESENTATIONS AND
WARRANTIES

 

SECTION 3.01       Representations
and Warranties.

 

(a)           MortgageIT
Holdings hereby makes the following representations and warranties to the REIT
Sub-Trust, and understands that the benefit of these representations and
warranties will be assigned by the REIT Sub-Trust to UBS.  Such representations and warranties are made
as of the date hereof and as of any Note Purchase Date, with respect to
Mortgage Loans transferred to the REIT Sub-Trust on such date and shall survive
each assignment, transfer and conveyance by MortgageIT Holdings of the REIT
Mortgage Loans to the REIT Sub-Trust and its successors and assigns.  MortgageIT hereby makes the following
representations and warranties to the TRS Sub-Trust, and understands that the
benefit of these representations and warranties will be assigned by the TRS
Sub-Trust to UBS.  Such representations
and warranties are made as of the date hereof and as of any Purchase Date, with
respect to TRS Mortgage Loans transferred to the TRS Sub-Trust on such date and
shall survive each assignment, transfer and conveyance by MortgageIT of the TRS
Mortgage Loans to the TRS Sub-Trust and its successors and assigns:

 

(i)            All representations and warranties
made and all information (including, without limitation, any financial
information concerning MortgageIT Holdings) and documents or copies of
documents furnished by MortgageIT Holdings to the REIT Sub-Trust pursuant to or
in connection with this Loan Sale Agreement are and will be true and correct at
the time when made and at all times thereafter or, if limited to a specific
date, as of the date to which they refer. 
All representations and warranties made and all information (including,
without limitation, any financial information concerning MortgageIT) and
documents or copies of documents furnished by MortgageIT to the TRS Sub-Trust
pursuant to or in connection with

 

5

 

this Loan Sale Agreement are and will be true and
correct at the time when made and at all times thereafter or, if limited to a
specific date, as of the date to which they refer;

 

(ii)           Such Seller is duly organized,
validly existing and in good standing under the laws of the state of its
organization or of the United States of America and has all licenses necessary
to carry on its business as now being conducted and is licensed, qualified and
in good standing in the state where the Mortgaged Property is located if the
laws of such state require licensing or qualification in order to conduct
business of the type conducted by Seller. 
No licenses or approvals obtained by Seller have been suspended or
revoked by any court, administrative agency, arbitrator or governmental body
and no proceedings are pending which might result in such suspension or
revocation.  Seller has all requisite
power and authority (including, if applicable, corporate power) to execute and
deliver this Loan Sale Agreement and each Transaction Document to which it is a
party and to perform in accordance herewith and therewith; the execution,
delivery and performance of this Loan Sale Agreement and each Transaction
Document to which it is a party (including all instruments of transfer to be
delivered pursuant to the Transaction Documents to which it is a party) by such
Seller and the consummation of the transactions contemplated hereby and thereby
have been duly and validly authorized. 
Each of the Transaction Documents to which it is a party evidences the
valid, binding and enforceable obligation of such Seller and all requisite
action (including, if applicable, corporate action) has been taken by Seller to
make each Transaction to which it is a party valid and binding upon Seller in
accordance with its terms, except as such terms may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting the
rights of creditors generally and by general principals of equity.

 

(iii)          No approval of the transactions
contemplated by the Transaction Documents to which it is a party from the OTS,
the NCUA, the FDIC or any similar federal or state regulatory authority having
jurisdiction over such Seller is required, or if required, such approval has
been obtained.  There are no actions or
proceedings pending or affecting such Seller which would adversely affect its
ability to perform hereunder.  The
transfers, assignments and conveyances provided for herein and therein are not
subject to the bulk transfer or any similar statutory provisions in effect in
any applicable jurisdiction;

 

(iv)          The consummation of the transactions
contemplated by this Loan Sale Agreement and each Transaction Document to which
it is a party are in the ordinary course of business of such Seller and will
not result in the breach of any term or provision of the charter, by-laws or
other organizational document of such Seller or result in the breach of any
term or provision of, or conflict with or constitute a default under or result
in the acceleration of any obligation under, any agreement, indenture, loan or
credit agreement or other instrument to which such Seller, the Mortgage Loans
or any of such Seller’s property is subject, or result in the violation of any
law, rule, regulation, order, judgment or decree to which such Seller, the
Mortgage Loans or any of such Seller’s property is subject;

 

(v)           Each Transaction Document to be
executed by such Seller pursuant hereto and thereto is and will be valid,
binding and subsisting obligations of such Seller, enforceable in accordance
with its respective terms, except as such terms may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting the
rights of creditors generally and by general principals of equity.  No consents or approvals are required to

 

6

 

be obtained by such Seller or its Parent Company for
the execution, delivery and performance of each such Transaction Document by
such Seller;

 

(vi)          MortgageIT Holdings has not pledged
any interest in any REIT Mortgage Loan to any person other than the REIT
Sub-Trust, and upon delivery of a REIT Mortgage Loan to the REIT Sub-Trust, the
REIT Sub-Trust will be the sole owner thereof, free and clear of any Lien,
claim or encumbrance.  MortgageIT has
not sold any interest in any TRS Mortgage Loan to any person other than the TRS
Sub-Trust, and upon delivery of a TRS Mortgage Loan to the TRS Sub-Trust, the
TRS Sub-Trust will be the sole owner thereof, free and clear of any Lien, claim
or encumbrance

 

(vii)         All information relating to such Seller
that such Seller has delivered or caused to be delivered to the Trust,
including, but not limited to, all documents related to the Transaction
Documents to which it is a party or such Seller’s financial statements, and all
such information hereafter furnished by such Seller, does not and will not
contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made therein or herein in light of the
circumstances under which they were made, not misleading.  Such Seller has disclosed in writing any and
all facts relating to such Seller that materially and adversely affect or may
materially and adversely affect the business operations or financial condition
of such Seller or the ability of such Seller to perform its obligations under
the Transaction Documents to which it is party.  Since the furnishing of such documents or information, there has
been no change, nor any development or event involving a prospective change that
would render any of such documents or information untrue or misleading in any
material respect;

 

(viii)        There are no actions, suits or
proceedings pending, or to the knowledge of such Seller threatened, including
any claims for which an action, suit or proceeding has not been commenced,
against or affecting such Seller or any of its assets in any court or before
any arbitrator or before any governmental commission, board, bureau or other
administrative agency that, in any such case, if adversely determined, would
have a Material Adverse Effect on the financial condition or business of such
Seller or the ability of such Seller to perform under this Loan Sale Agreement
and each Transaction Document to which it is a party and each Funding
Confirmation;

 

(ix)           If applicable, with respect to each
Mortgage Loan sold by such Seller hereunder, such Seller (and each servicer) is
approved by Ginnie Mae as an approved issuer, Fannie Mae as an approved lender,
Freddie Mac as an approved seller/servicer (as the case may be) and by FHA as
an approved mortgagee and by VA as an approved VA lender, in each case in good
standing (such collective approvals and conditions, “Agency Approvals”),
with no event having occurred or such Seller (or any subservicer) having any
reason whatsoever to believe or suspect will occur prior to the purchase of the
Mortgage Loan by the related Agency, including, without limitation, a change in
insurance coverage which would either make such Seller (or any servicer) unable
to comply with the eligibility requirements for maintaining all such Agency
Approvals or require notification to the relevant Agency or to HUD, FHA or
VA.  Should such Seller (or any
servicer), for any reason, cease to possess all such Agency Approvals, or
should notification to the relevant Agency or to HUD, FHA or VA be required,
such Seller shall so notify the Trust immediately in writing.  Notwithstanding the preceding

 

7

 

sentence, such Seller shall take all necessary action
to maintain all of its (and each servicer’s) Agency Approvals at all times
during the term of this Loan Sale Agreement. 
Such Seller (and any servicer) 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 pursuant to the related Servicing Agreement and in
accordance with Accepted Servicing Practices;

 

(x)            The Custodian is an eligible
custodian under the Agency Guide and Agency Program;

 

(xi)           Such Seller and its Subsidiaries have
filed all federal income tax returns and all other material tax returns that
are required to be filed by them and have paid all taxes due pursuant to such
returns or pursuant to any assessment received by it or any of its
Subsidiaries, 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 and any taxes the failure of which
to pay would not have a Material Adverse Effect.  The charges, accruals and reserves on the books of such Seller
and its Subsidiaries in respect of taxes and other governmental charges are, in
the opinion of such Seller, adequate;

 

(xii)          The consolidated Tangible Net Worth of
the Sellers is not less than $175,000,000. 
The ratio of the Sellers’ consolidated Total Indebtedness to Tangible
Net Worth is not greater than 20:1;

 

(xiii)         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;

 

(xiv)        Upon the filing of financing statements
on Form UCC-1 naming the Trust as “Secured Party”, such Seller as “Debtor” and
describing the Mortgage Loans, in the jurisdictions and recording offices
listed on Schedule 4 attached hereto, the security interests granted
hereunder in the Mortgage Loans will constitute fully perfected security
interests under the Uniform Commercial Code in all right, title and interest of
such Seller in, to and under such Mortgage Loans, which can be perfected by
filing under the Uniform Commercial Code;

 

(xv)         As of the date hereof, such Seller’s
chief executive office is located at 33 Maiden Lane, New York, New York
10038.  As of the date hereof, and
during the four months immediately preceding the date hereof, such Seller’s
sole jurisdiction of organization is, and has been, New York (with respect to
MortgageIT) or Maryland (with respect to MortgageIT Holdings);

 

(xvi)        Such Seller’s exact legal name is, and
has been, as to MortgageIT, for the immediately preceding four months and, as
to MortgageIT Holdings, since its incorporation, as set forth on the signature
page hereto;

 

(xvii)       Except as listed in Schedule 3 to this
Loan Sale Agreement, such Seller has not used any trade names, fictitious
names, assumed names or “doing business as” names since its incorporation;

 

8

 

(xviii)      Such Seller has not merged with, or
acquired all or substantially all of the assets of, any other person or entity
within the immediately preceding year, excluding MortgageIT’s merger with
MortgageIT Acquisition Corp. with MortgageIT as the surviving corporation, that
was consummated on or before the date hereof;

 

(xix)         The Transaction Documents to which such
Seller is a party, any other document contemplated hereby or thereby and each
sale of a Mortgage Loan have not been and will not be entered into fraudulently
by such Seller hereunder or the Custodian, or with the intent to hinder, delay
or defraud any of such Seller’s creditors or the Trust;

 

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

 

(xxi)         The consideration received by such
Seller upon the sale of each Mortgage Loan will constitute reasonably
equivalent value and fair consideration for the ownership interest in each
Mortgage Loan; and

 

(xxii)        With respect to each REIT Mortgage Loan
as of the related Note Purchase Date, MortgageIT Holdings hereby represents and
warrants that such REIT Mortgage Loan was originated within 90 days of the date
such REIT Mortgage Loan was first sold to the REIT Sub-Trust hereunder.  With respect to TRS Mortgage Loan as of the
related Purchase Date, MortgageIT hereby represents and warrants that such TRS
Mortgage Loan was originated within 30 days of the date such TRS Mortgage Loan
was first sold to the TRS Sub-Trust hereunder.

 

(b)           MortgageIT
hereby represents and warrants to the TRS Sub-Trust as of the date hereof and
as of each Purchase Date, (i) with respect to the Escrow Agent Wire
Instructions, MortgageIT received such instructions on the letterhead of the
Escrow Agent and such instructions are true and correct and (ii) MortgageIT has
inserted the Closing Instruction Letter Insert in each Closing Instruction
Letter for all Wet Fundings and Dry Fundings structured as Closing
Transactions.

 

(c)           MortgageIT
hereby represents and warrants to the TRS Sub-Trust as of the date hereof and
as of each Purchase Date, with respect to each Wet Funding or Dry Funding
structured as a Closing Transaction, an insured closing letter from each Escrow
Agent that is not a title insurance company is included in the Credit File and
MortgageIT shall promptly, upon

 

9

 

request of the TRS Sub-Trust, send to the TRS
Sub-Trust (i) a copy of any such insured closing letter and (ii) a complete
list of all Escrow Agents MortgageIT has approved to act as an Escrow Agent.

 

(d)           MortgageIT
Holdings  hereby represents, warrants
and covenants to the REIT Sub-Trust with respect to each REIT Mortgage Loan as
of the related Note Purchase Date, each of the representations and warranties
set forth on Schedule 2 hereto is true and correct in all respects.  MortgageIT 
hereby represents, warrants and covenants to the TRS Sub-Trust with
respect to each TRS Mortgage Loan as of the related Purchase Date, each of the
representations and warranties set forth on Schedule 2 hereto is true and
correct in all respects.

 

The representations and warranties of each Seller in
this Section 3.01 and Schedule 2 hereto are unaffected by and supersede any
provision in any endorsement of any Mortgage Loan or in any assignment with
respect to such Mortgage Loan to the effect that such endorsement or assignment
is without recourse or without representation or warranty.

 

(e)           The
Trust hereby makes the following representations and warranties for the benefit
of each Seller, UBS, the Note Purchasers and the Noteholders.  Such representations and warranties are made
as of the date hereof and each Note Purchase Date or Purchase Date, as
applicable, and shall survive each sale, assignment, transfer and conveyance by
such Seller of the Mortgage Loans to the Trust and its successors and assigns.

 

(i)            Existence.  The Trust (a) is a statutory trust duly
organized, validly existing and in good standing under the laws of the jurisdiction
of its organization, (b) 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; and
(c) 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;

 

(ii)           Legal Name.  The legal name of the Trust is MortgageIT
SPV I and the Trust has not changed its name since its organization and since
its organization the Trust did not use, nor does the Trust now use, any trade
names, fictitious names, assumed name or “doing business as” names;

 

(iii)          Power and Authority.  The Trust has the power and authority to
execute and deliver this Loan Sale Agreement and each other Transaction
Document to which it is a party, and to carry out their respective terms; the
Trust has duly authorized the receipt from such Seller, and the pledge or sale
to UBS of all of its right, title and interest in the Eligible Mortgage Loans
and other Collateral by all necessary action; and the execution, delivery, and
performance of this Loan Sale Agreement, and each other Transaction Document to
which it is a party, have been duly authorized by the Trust by all necessary
action;

 

10

 

(iv)          Due Execution and Delivery.  This Loan Sale Agreement and each other
Transaction Document to which it is a party have been duly executed and
delivered on behalf of the Trust;

 

(v)           Binding Obligations. This Loan
Sale Agreement, and the other Transaction Documents to which the Trust is a
party, when duly executed and delivered, will constitute legal, valid, and
binding obligations of the Trust enforceable against the Trust in accordance
with their respective terms subject as to enforceability to applicable
bankruptcy, reorganization, insolvency, moratorium or other laws affecting
creditors’ rights generally and to general principles of equity (regardless of
whether enforcement is sought in a proceeding in equity or at law);

 

(vi)          No Violation.  The consummation of the transactions
contemplated by and the fulfillment of the terms of this Loan Sale Agreement
will not conflict with, result in any breach of any of the terms and provisions
of, or constitute (with or without notice or lapse of time) a default under,
the organizational documents of the Trust, or any material term of any
indenture, agreement, mortgage, deed of trust, or other instrument to which the
Trust is a party or by which it is bound, or result in the creation or
imposition of any Lien upon any of its Properties pursuant to the terms of any
such indenture, agreement, mortgage, deed of trust, or other instrument, or
violate any law or any order, injunction, writ, rule, or regulation applicable
to the Trust of any court or of any federal or state regulatory body,
administrative agency, or other Governmental Authority having jurisdiction over
the Trust or any of its Properties which would have a Material Adverse Effect
on the Mortgage Loans;

 

(vii)         No Proceedings.  There are no proceedings or investigations
pending, or, to the knowledge of the Trust, threatened, before any court,
regulatory body, administrative agency, or other tribunal or Governmental
Authority (A) asserting the invalidity of this Loan Sale Agreement,
(B) seeking to prevent the consummation of any of the transactions
contemplated by this Loan Sale Agreement, or (C) seeking any determination
or ruling that might (in the reasonable judgment of the Trust) materially and
adversely affect the performance by the Trust of its obligations under, or the
validity or enforceability of, this Loan Sale Agreement or each other
Transaction Document for which it is a party;

 

(viii)        No Consent Required.  The Trust is not required to obtain the
consent of any other Person, or any consent, license, approval or authorization
or registration or declaration with, any Governmental Authority, bureau or
agency in connection with the execution, delivery or performance of this Loan
Sale Agreement and the Transaction Documents to which it is a party, except for
such as have been obtained, effected or made, except for filings and recordings
in respect of the Liens created pursuant to the Facility Agreements;

 

(ix)           Jurisdiction of Organization.
On the Effective Date, the Trust’s jurisdiction of organization is Delaware;

 

(x)            Absence of Event.  No event has occurred which adversely
affects the Trust’s operations or its ability to perform its obligations under
the Transaction Documents to which it is a party;

 

11

 

(xi)           Subsidiaries.  The Trust has no subsidiaries; and

 

(xii)          Non-Consolidation.  The REIT Sub-Trust is operated in such a manner
that it would not be substantively consolidated in the bankruptcy estate of
MortgageIT Holdings such that the separate existence of the REIT Sub-Trust and
MortgageIT Holdings would be disregarded in the event of a bankruptcy or
insolvency of such Seller.  The TRS
Sub-Trust is operated in such a manner that it would not be substantively
consolidated in the bankruptcy estate of MortgageIT such that the separate
existence of the TRS Sub-Trust and MortgageIT would be disregarded in the event
of a bankruptcy or insolvency of such Seller

 

SECTION 3.02       Repurchase
of Mortgage Loans by the Sellers.

 

(a)           Upon
discovery of a breach of any of the representations or warranties set forth in
Schedule 2 hereto that materially adversely affects the value or the Trust’s interest
in any Mortgage Loan or materially adversely affects the related Submission
Package, as the case may be, or if the related Seller fails to cause delivery
of evidence of filing or copies of any UCC financing statement in accordance
with the terms of this Loan Sale Agreement (any such event, a “Warranty
Event”), in the case of a REIT Mortgage Loan, MortgageIT Holding shall
repurchase such REIT Mortgage Loan by remitting to the REIT Sub-Trust the
Repurchase Amount with respect to such Mortgage Loan as provided in Section
3.02(b) and, in the case of a TRS Mortgage Loan, MortgageIT shall repurchase
such Mortgage Loan by remitting to the TRS Sub-Trust the Repurchase Amount with
respect to such Mortgage Loan as provided in section 3.02(b).  In addition, if either the REIT Sub-Trust or
the TRS Sub-Trust is required to repurchase a Mortgage Loan that it has sold or
pledged to UBS, or to take any remedy with respect to any Mortgage Loan as a
result of a Warranty Event or as a result of such Sub-Trust’s or MortgageIT, in
the case of TRS Sub-Trust, or MortgageIT Holdings’, in the case of the REIT
Sub-Trust, breach of any of their respective representations, warranties or
covenants under any of the Transaction Documents, with respect to any TRS
Mortgage Loan, MortgageIT shall have a responsibility to repurchase such
Mortgage Loan from the TRS Sub-Trust, and with respect to any REIT Mortgage
Loan, MortgageIT Holdings shall have a responsibility to repurchase such
Mortgage Loan from the REIT Sub-Trust, and/or take any such remedial
action.  Notwithstanding the references
above to the obligations of the related Seller to take the required actions, in
the event that the related Seller does not take any such required action within
one Business Day, then the other Seller shall have the obligation to take such
action immediately.

 

(b)           In
consideration of its repurchase of a REIT Mortgage Loan, MortgageIT Holdings
shall remit the Repurchase Amount to the REIT Sub-Trust for application in
accordance with the Note Purchase Agreement, within one (1) Business Day of
discovery of any such breach or failure. 
In consideration of its repurchase of a TRS Mortgage Loan, MortgageIT
shall remit the Repurchase Amount to the TRS Sub-Trust for application in
accordance with the Loan Repurchase Agreement, as applicable, within one (1)
Business Day of discovery of any such breach or failure.

 

(c)           In
the event that MortgageIT fails to take the actions required of it by paragraph
(a) or (b) above with respect to a TRS Mortgage Loan within one (1) Business
Day of the day on which its performance is required, then MortgageIT Holdings
shall immediately take such action. 
Similarly, in the event that MortgageIT Holdings fails to take the
actions required

 

12

 

of it by paragraph (a) or (b) above with respect to a
REIT Mortgage Loan, within one (1) Business Day of the day on which its
performance is required, then MortgageIT shall immediately take such action.

 

(d)           Except
as may be set forth in this Loan Sale Agreement, it is understood and agreed
that the obligations of each Seller with respect to a breach as provided in
this Section 3.02 constitute the sole remedy against such Seller for such
breach available to the related Sub-Trust. 
The representations and warranties set forth in Section 3.01 shall
survive the sale and contribution of the Mortgage Loans to the Trust and the
pledge of the Collateral to UBS.

 

(e)           Except
as provided in this Section 3.02 and in Section 4.01(a), upon MortgageIT’s
transfer of its interests in the TRS Mortgage Loans to the TRS Sub-Trust,
MortgageIT  will not bear any further
risk with respect to the ultimate collectibility of the TRS Mortgage Loans or
the adequacy of the collateral securing the TRS Mortgage Loans.  Except as provided in this Section 3.02 and
in Section 4.01(a), upon MortgageIT Holding’s transfer of its interests in the
Mortgage Loans to the REIT Sub-Trust, MortgageIT Holding’s will not bear any
further risk with respect to the ultimate collectibility of the REIT Mortgage
Loans or the adequacy of the collateral securing the REIT Mortgage Loans.

 

ARTICLE IV

 

COVENANTS

 

SECTION 4.01       Covenants
of Sellers.  Each Seller hereby
covenants and agrees with the Trust, UBS, the Note Purchasers and the
Noteholders with respect to itself as follows:

 

(a)           MortgageIT
Holdings agrees that it will pay to UBS (for application in accordance with the
terms of the Note Purchase Agreement), any unpaid REIT Related Limited Recourse
Obligations which may become due and owing under each applicable agreement, but
remain unpaid on the first Business Day after the relevant amount became due,
(i) on the day on which such Seller is given notice of the circumstances, if
the notice is given at or before 10:00 a.m., New York City time, on a Business
Day, or (ii) on the Business Day following the day such notice is given, if it
is given after that time on a Business Day or on a day that is not a Business
Day.  MortgageIT agrees that it will pay
to UBS (for application in accordance with the terms of the Loan Repurchase
Agreement, the Loan Purchase Agreement and the Loan Participation Agreement),
any unpaid TRS Related Limited Recourse Obligations which may become due and
owing under each applicable agreement, but remain unpaid on the first Business Day
after the relevant amount became due, (i) on the day on which such Seller is
given notice of the circumstances, if the notice is given at or before 10:00
a.m., New York City time, on a Business Day, or (ii) on the Business Day
following the day such notice is given, if it is given after that time on a
Business Day or on a day that is not a Business Day.  In the event that MortgageIT Holdings does not honor in full any
such claim relating to a REIT Related Limited Recourse Obligation within such
one (1) Business Day period, or in the event that MortgageIT does not honor in
full any such claim relating to a TRS Related Limited Recourse Obligation
within such one (1) Business Day period, then the other Seller shall have the
obligation to honor such obligation within one Business Day.  In no event, however, shall the aggregate
amount of the REIT Related Limited Recourse Obligations and the TRS Related
Limited Recourse Obligations

 

13

 

for the Sellers, on a combined basis, exceed 10% of
the greater of (i) the total principal amount of Notes then outstanding under
the Note Purchase Agreement plus the aggregate outstanding principal balance of
all TRS Mortgage Loans sold to UBS and (ii) the Facility Limit.

 

(b)           Such
Seller shall deliver to the Trust:

 

(i)            Within one hundred twenty (120) days
after the end of each fiscal year of such Seller, consolidated balance sheets
of such Seller and its consolidated subsidiaries and the related consolidated
statements of income showing the financial condition of such Seller and its
consolidated subsidiaries as of the close of such fiscal year and the results
of operations during such year, and a consolidated statement of cash flows, as
of the close of such fiscal year, setting forth, in each case, in comparative
form the corresponding figures for the preceding year, all the foregoing
consolidated financial statements to be reported on by, and to carry the report
(acceptable in form and content to the Trust) of an independent public
accountant of national standing acceptable to the Trust;

 

(ii)           Within thirty (30) days after the end
of each of the first eleven months of each fiscal year of such Seller,
unaudited consolidated balance sheets and consolidated statements of income,
all to be in a form acceptable to the Trust, showing the financial condition
and results of operation of such Seller and its consolidated subsidiaries on a
consolidated basis as of the end of each month and for the then elapsed portion
of the fiscal year, setting forth, in each case, in comparative form the
corresponding figures for the corresponding periods of the preceding fiscal
year, certified by a financial officer of such Seller (acceptable to the Trust)
as presenting fairly the financial position and results of operations of such
Seller and its consolidated subsidiaries and as having been prepared in
accordance with GAAP consistently applied, in each case, subject to normal
year-end audit adjustments;

 

(iii)          On the last Business Day of each month
(or at any time upon the Trust’s request), a report, in a form acceptable to
the Trust, detailing the Interest Rate Protection Agreements entered into by
such Seller.  Additionally, within
thirty (30) days after the end of each month, together with the report described
above, such Seller shall provide a certification from a financial officer of
such Seller in the form attached hereto as Annex 2;

 

(iv)          Promptly upon receipt thereof, a copy
of each other report submitted to such Seller by its independent public accountants
in connection with any annual, interim or special audit of such Seller;

 

(v)           Promptly upon becoming aware thereof,
notice of (1) the commencement of, or any determination in, any legal,
judicial or regulatory proceedings, (2) any dispute between such Seller or
its Parent Company and any governmental or regulatory body, (3) any event
or condition, which, in any case of (1) or (2), if adversely determined, would
have a material adverse effect on (A) the validity or enforceability of
this Agreement, (B) the financial condition or business operations of such
Seller, (C) the Agency Approvals of such Seller or (D) the ability of such
Seller to fulfill its obligations under this Agreement, (4) any material
adverse change in the business, operations, prospects or financial condition of
such Seller, including, without limitation, the insolvency of such Seller or
its Parent Company or (5) any material change in any interest rate swap, cap or
collar agreements and any other applicable hedging

 

14

 

arrangements providing
for protection against fluctuations in interest rates or the exchange of
nominal interest obligations;

 

(vi)          Promptly upon becoming available,
copies of all financial statements, reports, notices and proxy statements sent
by its Parent Company, such Seller or any of such Seller’s consolidated
subsidiaries in a general mailing to their respective stockholders and of all
reports and other material (including copies of all registration statements
under the Securities Act of 1933, as amended) filed by any of them with any
securities exchange or with the Securities and Exchange Commission or any
governmental authority succeeding to any or all of the functions of said
Commission;

 

(vii)         Promptly upon becoming available,
copies of any press releases issued by its Parent Company or such Seller and
copies of any annual and quarterly financial reports and any reports on Form
H-(b)12 which its Parent Company or such Seller may be required to file with
the OTS or comparable reports which a Parent Company or such Seller may be
required to file with the FDIC or any other federal banking agency containing
such financial statements and other information concerning such Parent
Company’s or such Seller’s business and affairs as is required to be included
in such reports in accordance with the rules and regulations of the OTS, the
FDIC or such other banking agency, as may be promulgated from time to time;

 

(viii)        Such supplements to the aforementioned
documents and such other information regarding the operations, business,
affairs and financial condition of its Parent Company, such Seller or any of
its consolidated subsidiaries as the Trust may request;

 

(ix)           Prior to the date of the first
purchase of a Mortgage Loan by the Trust under this Agreement, and at the
request of the Trust at any time thereafter, a copy of an Officer’s Certificate
in the form attached hereto as Annex 1 together with a copy of (1) the
articles of incorporation, certificate of formation or other organizational
documents of such Seller and any amendments thereto certified by the Secretary
of State of such Seller’s jurisdiction of organization, (2) a copy of such
Seller’s by-laws, operating agreement or other internal governing documents,
together with any amendments thereto, (3) a copy of the resolutions or
other internal governing documents or other organizational document adopted by
such Seller’s Board of Directors or a similar governing body authorizing such
Seller to enter into each Transaction Document to which it is a party and
authorizing one or more of its officers to execute the documents related to
each such Transaction Document, and (4) a certificate of incumbency and
signature of each officer of such Seller executing any document in connection with
this Agreement and each Transaction Document to which it is a party;

 

(x)            Evidence that all other actions
necessary or, in the opinion of the Trust, desirable to perfect and protect the
Trust’s interest in the Mortgage Loans and other Collateral have been taken,
including, without limitation, duly executed and filed Uniform Commercial Code
financing statements on Form UCC-1; and

 

(xi)           Promptly upon becoming aware thereof,
notice of any name under which such Seller or any of its affiliates conducts
business.

 

15

 

(c)           Such
Seller shall take all necessary action to maintain its Agency Approvals at all
times during the term of this Agreement. 
If, for any reason, such Seller ceases to maintain such Agency Approvals,
such Seller shall so notify the Trust immediately.

 

(d)           MortgageIT
will report each sale of a TRS Mortgage Loan to the TRS Sub-Trust as a sale of
the ownership interest in such TRS Mortgage Loan and MortgageIT Holdings will
report each sale of a REIT Mortgage Loan to the REIT Sub-Trust as a sale of the
ownership interest in such REIT Mortgage Loan. 
It is acknowledged that each such transaction shall be disregarded for
federal income tax purposes.

 

(e)           MortgageIT
will be solvent at all relevant times prior to, and will not be rendered
insolvent by, any sale of a TRS Mortgage Loan to the TRS Sub-Trust.  MortgageIT Holdings will be solvent at all
relevant times prior to, and will not be rendered insolvent by, any sale of a
REIT Mortgage Loan to the REIT Sub-Trust.

 

(f)            MortgageIT
will not sell any TRS Mortgage Loan to the TRS Sub-Trust with any intent to
hinder, delay or defraud any of its creditors. 
MortgageIT Holdings  will not
sell any REIT Mortgage Loan to the REIT Sub-Trust with any intent to hinder,
delay or defraud any of its creditors.

 

(g)           Such
Seller shall comply, in all material respects, with all laws, rules and
regulations to which it is or may become subject.

 

(h)           MortgageIT
shall, upon request of the TRS Sub-Trust, promptly execute and deliver to the
TRS Sub-Trust all such other and further documents and instruments of transfer,
conveyance and assignment, and shall take such other action as the TRS
Sub-Trust may require to more effectively transfer, convey, assign to and vest
in the TRS Sub-Trust and to put the TRS Sub-Trust in possession of the property
to be transferred, conveyed, assigned and delivered hereunder and otherwise to
carry out more effectively the intent of the provisions under this Agreement.  MortgageIT Holdings shall, upon request of
the REIT Sub-Trust, promptly execute and deliver to the REIT Sub-Trust all such
other and further documents and instruments of transfer, conveyance and
assignment, and shall take such other action as the REIT Sub-Trust may require
to more effectively transfer, convey, assign to and vest in the REIT Sub-Trust
and to put the REIT Sub-Trust in possession of the property to be transferred,
conveyed, assigned and delivered hereunder and otherwise to carry out more
effectively the intent of the provisions under this Agreement.

 

(i)            If
applicable, MortgageIT, as the Administrator for the Trust, shall ensure that
all Takeout Proceeds paid by a Takeout Investor resulting from a Takeout
Commitment of any Mortgage Loan are paid to UBS by the Takeout Investor in
accordance with UBS’s Wire Instructions to Trust (as defined in the Custodial
Agreement).

 

(j)            Such
Seller shall pay and discharge all taxes, assessments and governmental charges
or levies imposed on it or on its income or profits or on any of its property
prior to the date on which penalties attach thereto, except for any such tax,
assessment, charge or levy the payment of which is being contested in good
faith and by proper proceedings and against which adequate reserves are being
maintained, and any taxes, assessments and

 

16

 

governmental charges or levies the failure of which to
pay or discharge would not have a material adverse effect.

 

(k)           Such
Seller covenants and agrees to take all actions required of it in compliance
with the terms of the Electronic Tracking Agreement.

 

(l)            Such
Seller covenants and agrees that it will not (1) consolidate or merge or enter
into any analogous reorganization or transaction with any Person, unless such
other Person is engaged in the mortgage banking business and such Seller is the
surviving entity; (2) liquidate, wind up or dissolve (or suffer any liquidation
or dissolution); (3) cease actively to engage in the business of origination,
acquiring or servicing Mortgage Loans or make any other material change in the
nature or scope of the business in which such Seller engaged as of the date of
this Agreement; (4) sell, assign, lease, convey, transfer or otherwise dispose
of (whether in one transaction or a series of transactions) all or any
substantial part of such Seller’s business or assets, whether now owned or
acquired after the date of this Agreement and without the prior written consent
of the Trust; (5) acquire by purchase or in any other transaction all or substantially
all of the business or property of, or stock or other ownership interests of,
any Person, without the prior written consent of the Trust; (6) change its
jurisdiction of organization, without the prior written consent of the Trust;
nor (7) permit any subsidiary of such Seller to do or to take any of the
foregoing actions.

 

(m)          Such
Seller shall not, and shall not permit its partners, principal shareholders and
owners to, guaranty, endorse or otherwise in any way become responsible or be
responsible for any obligations of such Seller or any other Person.

 

(n)           Unless
such Seller shall have given the Trust at least 30 days’ prior written notice,
such Seller shall not (i) change its name, organizational identity or
jurisdiction of organization or (ii) merge with or into, acquire all or
substantially all of the assets of, or transfer all or substantially all of its
assets to, any other person or entity.

 

(o)           Such
Seller shall not permit, for any Test Period, Net Income for such Test Period,
before income taxes for such Test Period and distributions made during such
Test Period, to be less than $1.00.

 

(p)           The
consolidated Tangible Net Worth of the Sellers shall not be less than the sum
of (A) $175,000,000 plus (B) 90% of capital contributions made since August 4,
2004.  The Sellers shall not permit the
ratio of their consolidated Total Indebtedness to Tangible Net Worth to exceed
20:1.

 

(q)           Such
Seller shall not move its chief executive office from the address referred to
in Section 3.01(xv) or change its jurisdiction of organization unless it shall
have provided the Trust thirty (30) days’ prior written notice of such change.

 

(r)            Immediately
upon notice of a Lien or any circumstance which could give rise to a Lien on
the Mortgage Loans, such Seller will defend the Mortgage Loans against, and
will take such other action as is necessary to remove, any Lien, security
interest or claim on or to the Mortgage Loans (other than any security interest
created under the Facility Agreements), and

 

17

 

such Seller will defend the right, title and interest
of the Trust in and to any of the Mortgage Loans against the claims and demands
of all persons whomsoever.

 

(s)           If
such Seller gains possession of a Submission Package, such Seller shall hold
such Submission Package in trust for the Trust, immediately notify the Trust of
the specific Submission Package being held by such Seller and promptly deliver
such Submission Package via overnight courier in accordance with the Trust’s instructions.

 

(t)            Such
Seller, hereby agrees, jointly and severally with the other Seller, to
indemnify, defend and hold the Trust, UBS, the Note Purchasers, the
Noteholders, and their respective Affiliates and each of their respective
officers, directors, employees, agents, trustees and advisors (each, an “Indemnified
Party”) harmless from and against any and all loss, liability, damage,
judgment, claim, deficiency, or expense (including interest, penalties,
reasonable attorneys’ fees and amounts paid in settlement) payable to a Person
that is not a party to any of the Transaction Documents, or payable by a party
to a Transaction Document to another party to a Transaction Document, if any of
them may become subject thereto, insofar as such loss, liability, damage,
judgment, claim, deficiency, or expense arises out of or is based upon a breach
by either Seller or by the Trust of its representations, warranties or
covenants under any of the Transaction Documents to which it is a party, or any
information set forth in this Loan Sale Agreement or any of the Transaction
Documents or in any schedule delivered by such Seller hereunder or thereunder,
being untrue in any material respect at any time or relating to or arising out
of this Loan Sale Agreement or any other Transaction Document that results from
anything other than any Indemnified Party’s gross negligence or willful
misconduct.  Such Seller, jointly and
severally with the other Seller, may offer to assume the defense of any action
brought against any Indemnified Party; provided that the counsel
proposed to handle the defense be satisfactory to such Indemnified Party in its
sole discretion.  If the Indemnified
Party agrees to such an arrangement, then the Sellers shall not be liable for
any separate counsel for such Indemnified Party.  In no event will an Indemnified Party be liable for a settlement
effected without its prior consent.  The
obligations of such Seller under this Section 4.01(t) shall be considered to
have been relied upon by the Trust, UBS, the Note Purchasers, the Noteholders,
the Servicers, and the Custodian and shall survive the execution, delivery, and
performance of this Loan Sale Agreement regardless of any investigation made by
the Trust, UBS, any Note Purchaser, any Noteholder, the Servicers, the
Custodian or on their behalf of any of them. 
THE INDEMNIFICATION OBLIGATIONS OF EACH SELLER PURSUANT TO THE PRECEDING
PROVISIONS OF THIS PARAGRAPH SHALL APPLY REGARDLESS OF ANY NEGLIGENCE OR OTHER
FAULT ON THE PART OF THE PURCHASER, UBS, ANY NOTE PURCHASER, ANY NOTEHOLDER,
THE SERVICERS, THE CUSTODIAN OR ANY OF THEIR RESPECTIVE OFFICERS, EMPLOYEES,
TRUSTEES OR AGENTS EXCEPT AS EXPRESSLY STATED IN THIS PARAGRAPH.

 

Such Seller also agrees to reimburse an Indemnified
Party as and when billed by such Indemnified Party for all such Indemnified
Party’s costs and expenses incurred in connection with the enforcement or the
preservation of such Indemnified Party’s rights (including third-party
beneficiary rights of UBS, the Note Purchasers and the Noteholders) under this
Loan Sale Agreement or any of the Transaction Documents, including, without
limitation, the reasonable fees and disbursements of one counsel for the Note
Purchasers and the Noteholders as a group. 
In addition, such Seller shall pay as and when billed by UBS all of the

 

18

 

out-of-pocket
costs and expenses (including reasonable fees and expenses of counsel) incurred
by UBS in connection with the development, preparation and execution of, and any
amendment, supplement or modification to, the Transaction Documents or any
other documents prepared in connection therewith.  MortgageIT shall pay as and when billed by UBS all of the
out-of-pocket costs and expenses incurred in connection with the consummation
and administration of the transactions contemplated by the Transaction
Documents, including, without limitation, (i) all the fees, disbursements and
expenses of counsel to UBS and (ii) all the due diligence, inspection, testing
and review costs and expenses incurred by UBS with respect to the Collateral,
including, but not limited to, those costs and expenses incurred by UBS
relating to due diligence.

 

Notwithstanding anything to the contrary, any payments
under this Section 4.01(t) relating to a TRS Mortgage Loan, the TRS
Sub-Trust  or MortgageIT shall be made
by MortgageIT.  In the event such
payment is not made within one Business Day of the date such payment is due, MortgageIT
Holdings shall have the obligation to make such payment immediately.  Notwithstanding anything to the contrary, any
payments under this Section 4.01(t) relating to a REIT Mortgage Loan, the REIT
Sub-Trust  or MortgageIT Holdings shall
be made by MortgageIT Holdings.  In the
event such payment is not made within one Business Day of the date such payment
is due, MortgageIT shall have the obligation to make such payment immediately.

 

(u)           The
financial statements and books and records of such Seller shall reflect the
separate existence of the Trust and shall also include a footnote substantially
to the effect set forth in Annex 3.

 

SECTION 4.02       Purchaser
Covenants.  The Trust hereby
covenants and agrees with each Seller, UBS, the Note Purchasers and the
Noteholders as follows:

 

(a)           Mortgagor’s
Quiet Enjoyment.  The Trust hereby acknowledges
and agrees that its rights in the Mortgaged Property are expressly subject to
the rights of the related Mortgagors in such Mortgaged Property pursuant to the
applicable Mortgage Loans.  The Trust
covenants and agrees that, so long as a Mortgagor shall not be in default of
any of the provisions of the applicable Mortgaged Loan, neither the Trust nor
any assignee of the Trust will disturb the Mortgagor’s quiet and peaceful
possession of the related Mortgaged Property and the Mortgagor’s use thereof
for its intended purpose.

 

(b)           Operation
of the Trust.  The Trust shall be
operated in the following manner, with a view toward assuring that it would not
be substantively consolidated with or in the trust estate of another Person
(that is, such that the separate legal existence of the Trust and such Person
would be disregarded) and in that regard, the Trust shall:

 

(i)            be a limited purpose statutory trust
whose primary activities are restricted as provided in the Trust Agreement as
in effect on the date of this Loan Sale Agreement;

 

(ii)           not engage in any action that would
cause the separate legal identity of the Trust not to be respected, including,
without limitation, (a) holding itself out as

 

19

 

being liable for the
debts of any other party or (b) acting other than through its duly authorized
agents;

 

(iii)          not be involved in the day-to-day
management of each Seller;

 

(iv)          not incur, assume or guarantee any
indebtedness except for such indebtedness as may be incurred by the REIT
Sub-Trust in connection with the issuance of the Notes;

 

(v)           not commingle its funds, assets and
records relating thereto with those of either Seller or any other entity;

 

(vi)          entitle the separate creditors of the
Trust to be satisfied out of the Trust’s assets and not permit its assets to be
made available to any other Person except as expressly contemplated in the
Trust Agreement;

 

(vii)         act solely in its own name in the
conduct of its business, including business correspondence and other
communications, and shall conduct its business so as not to mislead others as
to the identity of the entity with which they are concerned;

 

(viii)        maintain records and books of account
and shall not commingle its records and books of account with the records and
books of account of any other Person;

 

(ix)           not engage in any business or
activity other than in accordance with or relating to the Trust Agreement and
its continuation as a Delaware statutory trust;

 

(x)            not form, or cause to be formed, any
subsidiaries;

 

(xi)           comply with all restrictions and
covenants in, and shall not fail to comply with the formalities established in,
the Trust Agreement;

 

(xii)          maintain its assets separately from
the assets of either Seller (including through the maintenance of a separate
bank account);

 

(xiii)         manage its day-to-day business without
the involvement of either Seller;

 

(xiv)        not act as an agent of either Seller,
except to the limited extent provided in the Transaction Documents;

 

(xv)         maintain at all times an Administrator
(which may be either Seller) to perform the duties contemplated in the
Administration Agreement; and

 

(xvi)        maintain a separate office from that of
either Seller.

 

(c)           Existence.  The Trust will keep in full effect its
existence, rights and status as a Delaware statutory trust and, if applicable,
will obtain and preserve its qualification to do business in each jurisdiction
which permits such qualification and in which it is necessary to

 

20

 

protect the validity and enforceability of this Loan
Sale Agreement, any other Transaction Document to which it is a party or any of
the Mortgage Loans and to perform its duties under this Loan Sale Agreement and
each other Transaction Document to which it is a party.

 

SECTION 4.03       Pledge
of Mortgage Loans.  MortgageIT
Holdings understands that the REIT Sub-Trust intends to pledge and assign the
benefits of this Agreement, along with the REIT Mortgage Loans to UBS, for the
benefit of UBS, the Note Purchasers and the Noteholders pursuant to the Note
Purchase Agreement.  MortgageIT
understands that the TRS Sub-Trust intends to sell the benefits of this
Agreement, along with the TRS Mortgage Loans to UBS.  Each Seller agrees that such assignee of the REIT Sub-Trust or
TRS Sub-Trust, as applicable, may exercise the rights of such Sub-Trust
hereunder and shall be entitled to all of the benefits of such Sub-Trust
hereunder to the extent provided for in such pledge and assignment.

 

ARTICLE V

 

CONDITIONS PRECEDENT

 

SECTION 5.01       Conditions
to the Trust Obligations.  The
obligations of the REIT Sub-Trust to accept the transfer of REIT Mortgage Loans
on each Note Purchase Date and the TRS Sub-Trust to accept the transfer of TRS
Mortgage Loans on each Purchase Date shall be subject to the satisfaction of
the following conditions:

 

(a)           All
representations and warranties of each Seller contained in this Loan Sale
Agreement and in the Transaction Documents shall be true and correct on the
Execution Date and on each Note Purchase Date or Purchase Date, as applicable,
with the same effect as though such representations and warranties had been
made on such date;

 

(b)           All
information concerning the Mortgage Loans provided to the Trust shall be true
and correct as of the related Note Purchase Date or Purchase Date, as
applicable, in all material respects;

 

(c)           Each
Seller shall have delivered to the Trust a Loan Purchase Detail with respect to
the Mortgage Loans as of the related Note Purchase Date or Purchase Date, as
applicable, and shall have substantially performed all other obligations
required to be performed by the provisions of this Loan Sale Agreement;

 

(d)           Each
Seller shall have recorded and filed, at its expense, any financing statement
with respect to the Mortgage Loans and the other Mortgage Loans to be
transferred from time to time to the Trust pursuant to this Loan Sale Agreement
meeting the requirements of applicable state law in such manner and in such
jurisdictions as are necessary to perfect the transfer of the Mortgage Loans
and the other Mortgage Loans from such Seller to the Trust, and shall deliver a
file-stamped copy of such financing statements or other evidence of such
filings to the Trust and UBS;

 

(e)           All
corporate and legal proceedings and all instruments in connection with the
transactions contemplated by this Loan Sale Agreement shall be satisfactory in
form and substance to the Trust, and the Trust shall have received from each
Seller copies of all

 

21

 

documents (including, without limitation, records of
corporate proceedings) relevant to the transactions herein contemplated as the
Trust may reasonably have requested; and

 

(f)            All
respective conditions necessary to vest in the Trust good title, free and clear
of all Liens (other than Liens permitted in the proviso contained in Section
4.01(s) hereof), to its respective Mortgage Loans shall have been satisfied.

 

ARTICLE VI

 

TERMINATION

 

SECTION 6.01       Termination.  The respective obligations and responsibilities
of each Seller and the Trust created by this Loan Sale Agreement shall
terminate upon the latest of (i) the maturity or other liquidation of the
last Mortgage Loan and the disposition of any amounts received upon disposition
of any defaulted Mortgage Loans; and (ii) the termination of the Facility
Agreements in accordance with the terms thereof; provided, however,
that the indemnifications contained in Section 4.01(t) herein shall survive the
termination of this Loan Sale Agreement.

 

SECTION 6.02       Effect
of Termination.  No termination or
rejection or failure to assume the executory obligations of this Loan Sale
Agreement in the bankruptcy of either Seller or the Trust shall be deemed to
impair or affect the obligations pertaining to any executed sale or executed
obligations, including, without limitation, pre-termination breaches of
representations and warranties by such Seller or the Trust.  Without limiting the foregoing, prior to
termination, the failure of either Seller to pay a Repurchase Amount shall not
render such transfer or obligation executory, nor shall the continued duties of
the parties pursuant to Article 4 or Section 7.06 of this Loan Sale Agreement
render an executed sale executory.

 

ARTICLE VII

 

MISCELLANEOUS PROVISIONS

 

SECTION 7.01       Amendment.  This Loan Sale Agreement may be amended from
time to time by the parties hereto only with the prior written consent of UBS
and, to the extent specified in the Facility Agreements.

 

SECTION 7.02       GOVERNING
LAW; JURISDICTION.

 

(a)           THIS LOAN SALE AGREEMENT AND ANY AMENDMENT HEREOF
PURSUANT TO SECTION 7.01 SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO CHOICE OF LAW
PRINCIPLES) APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN AND THE
OBLIGATIONS, RIGHTS, AND REMEDIES OF THE PARTIES UNDER THIS LOAN SALE AGREEMENT
SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

22

 

(b)           EACH SELLER AND THE PURCHASER HEREBY IRREVOCABLY AND
UNCONDITIONALLY:

 

(1)           TO
THE EXTENT PERMITTED BY LAW, SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL
ACTION OR PROCEEDING RELATING TO THIS LOAN SALE AGREEMENT, OR FOR RECOGNITION
AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE PERSONAL
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;

 

(2)           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;

 

(3)           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 IN OR PURSUANT
TO THIS LOAN SALE AGREEMENT FOR NOTICES; AND

 

(4)           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.

 

SECTION 7.03       Notices.  All demands, notices, and communications
under or in connection with this Loan Sale Agreement shall be in writing and
shall be deemed to have been duly given, made and received (i) when
delivered against receipt of registered or certified mail or upon actual
receipt of registered or certified mail, postage prepaid, return receipt
requested; (ii) when delivered by courier with appropriate evidence of
receipt; or (iii) upon transmission via facsimile with appropriate
evidence of receipt (a) in the case of each Seller, at the following
address: 33 Maiden Lane, New York, NY 10038, Attention: John R. Cuti and
Michael A. Zigrossi, Fax No.: (212) 651-4689 (b) in the case of the Trust, c/o
the Administrator, at the following address: 33 Maiden Lane, New York, NY
10038, Attention:  Larry P. Lewis, Fax
No.: (212) 651-4689, with a copy to Wilmington Trust Company, Rodney Square
North, 1100 North Market Street, Wilmington, Delaware 19890, facsimile number:
(302) 636-4140 or (302) 636-4141; Attention: Corporate Trust Administration,
and (c) in the case of the UBS, 1285 Avenue of the Americas, New York, New York
10019, Attention: Robert Carpenter and George A. Mangiaracina, facsimile
number: (212) 713-9597.  Any party may
alter the address to which communications are to be sent by giving notice of
such change of address in conformity with the

 

23

 

provisions of this
Section 7.03 for giving notice and by otherwise complying with any applicable
terms of this Loan Sale Agreement.

 

SECTION 7.04       Severability
of Provisions.  If any one or more
of the covenants, agreements, provisions, or terms of this Loan Sale Agreement
shall be for any reason whatsoever held invalid, then such covenants,
agreements, provisions, or terms shall be deemed severable from the remaining
covenants, agreements, provisions, or terms of this Loan Sale Agreement and
shall in no way affect the validity or enforceability of the other provisions
of this Loan Sale Agreement.

 

SECTION 7.05       Assignment.  Notwithstanding anything to the contrary
contained in this Loan Sale Agreement, this Loan Sale Agreement and the
respective rights and duties of each Seller and the Trust hereunder may not be
assigned or otherwise transferred by either Seller or the Trust (as applicable),
without the prior written consent of the other parties to this Loan Sale
Agreement, UBS and such of the Note Purchasers and Note Holders as are required
under the Note Purchase Agreement. 
Whether or not expressly stated, all representations, warranties,
covenants and agreements of each Seller and the Trust in this Loan Sale
Agreement, or in any document delivered by any of them in connection with this
Loan Sale Agreement, shall be for the benefit of, and shall be exercisable by,
UBS.

 

SECTION 7.06       Further
Assurances.  The Sellers and the
Trust each agrees to do such further reasonable acts and things and to execute
and deliver to UBS such additional assignments, agreements, powers and
instruments as are required by UBS in its sole reasonable discretion or
pursuant to the direction of the Majority Investors to carry into effect the
purposes of this Loan Sale Agreement or to better assure and confirm unto UBS,
the Note Purchasers and the Noteholders their rights, powers and remedies
hereunder.

 

SECTION 7.07       No
Waiver; Cumulative Remedies.  No
failure to exercise and no delay in exercising, on the part of the Trust or
either Seller or UBS or any Note Purchaser or Noteholder, any right, remedy,
power or privilege hereunder, shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise hereof or the exercise of any other
right, remedy, power or privilege.  The
rights, remedies, powers and privileges herein provided are cumulative and not
exhaustive of any rights, remedies, powers and privilege provided by law.

 

SECTION 7.08       Counterparts.  This Loan Sale Agreement may be executed in
two or more counterparts (and by different parties on separate counterparts),
each of which shall be an original, but all of which shall constitute one and
the same instrument.

 

SECTION 7.09       Binding
Effect: Third-Party Beneficiaries. 
This Loan Sale Agreement will inure to the benefit of and be binding
upon the parties hereto.  UBS, the Note
Purchasers and the Noteholders are intended third party beneficiaries of this
Loan Sale Agreement.

 

SECTION 7.10       Merger
and Integration.  Except as
specifically stated otherwise herein, this Loan Sale Agreement sets forth the
entire understanding of the parties relating to the subject matter hereof, and
all prior understandings, written or oral, relating thereto are

 

24

 

superseded by this Loan
Sale Agreement.  This Loan Sale
Agreement may not be modified, amended, waived or supplemented except as
provided herein.

 

SECTION 7.11       Headings.  The headings herein are for purposes of
reference only and shall not otherwise affect the meaning or interpretation of
any provision hereof.

 

SECTION 7.12       Schedules
and Exhibits.  The schedules and
exhibits attached hereto and referred to herein shall constitute a part of this
Loan Sale Agreement and are incorporated into this Loan Sale Agreement for all
purposes.

 

SECTION 7.13       No
Bankruptcy Petition Against the Trust. 
Each Seller agrees that, prior to the date that is one year and one day
after the payment in full of the Notes and all amounts payable under the
Facility Agreements, it will not institute against the Trust, or join any other
Person in instituting against the Trust, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings or other proceedings under
the laws of the United States or any state of the United States.  This Section 7.13 shall survive the
termination of this Loan Sale Agreement.

 

SECTION 7.14       No
Recourse.  It is expressly
understood and agreed by the parties hereto that (a) this Loan Sale Agreement
is executed and delivered by Wilmington Trust Company, not individually or
personally but solely as trustee of the Trust, in the exercise of the powers
and authority conferred and vested in it, (b) each of the representations,
undertakings and agreements herein made on the part of the Trust is made and
intended not as personal representations, undertakings and agreements by
Wilmington Trust Company but is made and intended for the purpose of binding
only the Trust, (c) nothing herein contained shall be construed as creating any
liability on Wilmington Trust Company, individually or personally, to perform
any covenant either expressed or implied contained herein, all such liability,
if any, being expressly waived by the parties hereto and by an Person claiming
by, through or under the parties hereto and (d) under no circumstances shall
Wilmington Trust Company be personally liable for the payment of any
indebtedness or expenses of the Trust or be liable for the breach or failure of
any obligation, representation, warranty or covenant made or undertaken by the
Trust under this Loan Sale Agreement or any other related documents.

 

[Signature Page Follows]

 

25

 

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

 

	
   

  	
  MORTGAGEIT, INC.

  
	
   

  	
  as a Seller

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JOHN R. CUTI

  	
   

  
	
   

  	
   

  	
  Name: John R. Cuti

  
	
   

  	
   

  	
  Title: Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MORTGAGEIT HOLDINGS, INC.

  
	
   

  	
  as a Seller

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JOHN R. CUTI

  	
   

  
	
   

  	
   

  	
  Name: John R. Cuti

  
	
   

  	
   

  	
  Title: Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MORTGAGEIT SPV I, acting with respect to the

  REIT Sub-Trust, as Purchaser

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Wilmington Trust Company,

  
	
   

  	
   

  	
  not in its individual capacity but solely as

  Owner Trustee under the Trust Agreement

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Janel R. Havrilla

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Janel R. Havrilla

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Financial Services Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MORTGAGEIT SPV I, acting with respect to the

  TRS Sub-Trust, as Purchaser

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Wilmington Trust Company,

  
	
   

  	
   

  	
  not in its individual capacity but solely as

  Owner Trustee under the Trust Agreement

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Janel R. Havrilla

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Janel R. Havrilla

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Financial Services Officer

  	
   

  
							

 

[Signature Page To
Loan Sale Agreement]

 

 

Schedule 1

 

DEFINITIONS LIST

 

“1934 Act” shall mean the Securities and
Exchange Act of 1934, as amended.

 

“Accepted Servicing Practices” shall mean, with
respect to each Mortgage Loan, such standards which comply with the applicable
standards and requirements under: (i) an applicable Agency Program and related
provisions of the applicable Agency Guide pursuant to which the related
Mortgage Loan is intended to be purchased, and/or (ii) any applicable FHA
and/or VA program and related provisions of applicable FHA and/or VA servicing
guidelines, and (iii) the terms of the related Mortgage Loan documents and
applicable law.

 

“Acknowledgment Agreement” shall mean the
document, similar to the attached Exhibit F to the REIT Servicing Agreement, to
be executed by the Master Servicer and the REIT Servicer on or prior to each
subsequent Closing Date, which document shall include a Mortgage Loan Schedule,
which document reflects the addition of Mortgage Loans (including those
Mortgage Loans acquired by the Master Servicer through bulk acquisitions in
accordance with Section 7.05 of the REIT Servicing Agreement) which are subject
to the terms and conditions of the REIT Servicing Agreement.

 

“Act of Insolvency” shall mean, with respect to
any Person, (a) the commencement by such Person as debtor of any case or
proceeding under any bankruptcy, insolvency, reorganization, liquidation,
dissolution or similar law, or such Person seeking the appointment of a
receiver, trustee, custodian or similar official for such Person or any
substantial part of its property, or (b) the commencement of any such case or
proceeding against such Person, or another’s seeking such appointment, or the
filing against such Person of an application for a protective decree which (1)
is consented to or not timely contested by such Person, (2) results in the
entry of an order for relief, such an appointment, the issuance of such a
protective decree or the entry of an order having a similar effect, or (3) is
not dismissed within sixty (60) days, (c) the making by such Person of a
general assignment for the benefit of creditors, (d) the admission in writing
by such Person that it is unable to pay its debts as they become due or the
nonpayment generally by such Person of its debts as they become due, or (e) any
governmental authority or agency or any person, agency or entity acting or
purporting to act under governmental authority shall have taken any action to
condemn, seize or appropriate, or to assume custody or control of, all or any
substantial part of the property of such Person or of any of its Affiliates, or
shall have taken any action to displace the management of such Person or of any
of its Affiliates or to curtail its authority in the conduct of the business of
such Person or of any of its Affiliates.

 

“Actual Note Issuance Proceeds” shall have the
meaning provided in Section 3.09(d) of the Note Purchase Agreement.

 

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

 

1-1

 

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

 

“Administration Agreement” shall mean the
Administration Agreement dated as of August 4, 2004, between the Trust and the
Administrator, as amended, supplemented or otherwise modified from time to
time.

 

“Administrator” shall mean MortgageIT, in its
capacity as administrator of the Trust pursuant to the Administration
Agreement, or any successor in such capacity.

 

“Affiliate” shall mean with respect to any
Person, any “affiliate” of such Person, as such term is defined in the
Bankruptcy Code, other than a natural person. 
It is specifically agreed that the Trust, the REIT Sub-Trust, the TRS
Sub-Trust, MortgageIT and MortgageIT Holdings are “Affiliates” of each other.

 

“Agency” shall mean Ginnie Mae, Freddie Mac or
Fannie Mae, as applicable, and their successors thereto.

 

“Agency Approvals” shall have the meaning given
to such term in the Loan Repurchase Agreement, the Loan Purchase Agreement or
the Loan Participation Agreement, as applicable.

 

“Agency Eligible Mortgage Loan” shall mean a
mortgage loan that is in strict compliance with the eligibility requirements
for swap or purchase by the designated Agency, under the applicable Agency
Guide and/or applicable Agency Program.

 

“Agency Guide” shall mean the Ginnie Mae
Mortgage-Backed Securities Guide; the Fannie Mae Selling Guide and the Fannie
Mae Servicing Guide; the Freddie Mac Guide; as applicable, in each case as such
Agency Guide may be amended from time to time.

 

“Agency Program” shall mean the specific
purchase program under the relevant Agency Guide or as otherwise approved by
the relevant Agency.

 

“Agent’s Account” shall mean UBS’s account,
Account No. 930 1 035581, for the account of UBS Real Estate Securities Inc.
Conduit Funding, JPMorgan Chase Bank, ABA No. 021000021, or such other account
as may be identified as Agent’s Account by notice from UBS to the Trust and the
Purchasers.

 

“ALTA” shall mean the American Land Title
Association or any successor thereto.

 

“Ancillary Income” shall have the meaning
assigned to such term in the REIT Servicing Agreement or the TRS Servicing
Agreement, as applicable.

 

“Anticipated Delivery Date” shall mean, with
respect to a Security, the date specified in the related Form HUD 11705
(Schedule of Subscribers), Fannie Mae Form 2014 (Delivery Schedule), or Freddie
Mac Form 939 (Settlement and Information Multiple

 

1-2

 

Registration
Form), as applicable, on which it is anticipated that Delivery of the Security
by the Applicable Agency will be made, pursuant to the Loan Participation
Agreement.

 

“Applicable Agency Documents” shall mean the
documents listed on Exhibit B-2 or Exhibit B-3 to the Custodial Agreement, as
applicable.

 

“Applicable Covenant” shall mean any financial
covenants imposed upon the Trust, MortgageIT or MortgageIT Holdings under any
Other Financing Document.

 

“Applicable Guide” shall mean, with respect to
each Takeout Investor, the applicable guide published by such Takeout Investor
setting forth the requirements each Mortgage Loan needs to satisfy in order to
be eligible for purchase by such Takeout Investor, as such guide may be amended
or supplemented from time to time.

 

“Applicable Margin” shall be the applicable
rate set forth on the Funding Confirmation.

 

“Assignee” shall mean, with respect to the Loan
Purchase Agreement, the Loan Repurchase Agreement, the Custodial Agreement and
any Mortgage Loan, any assignee of UBS pursuant to a sale, pledge or
rehypothecation of the Mortgage Loan.

 

“Assignment of Mortgage” shall mean an
assignment of the Mortgage or, with respect to Cooperative Loans, the
Proprietary Lease, notice of transfer or equivalent instrument, in recordable
form, which when recorded is sufficient under the laws of the jurisdiction
where the related Mortgaged Property is located to reflect of record the sale
of the Mortgage Loan.

 

“Authorized Signatory” shall the meaning given
to such term in the Loan Repurchase Agreement, Loan Participation Agreement and
the Loan Purchase Agreement, as applicable.

 

“Automated Boarding” shall mean, with respect
to a Mortgage Loan, the successful, complete and timely electronic transfer of
the related Electronic File to the servicing database of the Servicer.

 

“Bailee Letter” shall mean a Fannie Mae Bailee
Letter or a Conduit Bailee Letter, as applicable.

 

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

 

“Best Efforts” shall mean the efforts
determined to be reasonably diligent by the Master Servicer or the Servicer, as
the case may be, in its sole discretion. 
Such efforts do not require the Master Servicer or the Servicer, as the
case may be, to enter into any litigation, arbitration or other legal or
quasi-legal proceeding, nor do they require the Master Servicer or the
Servicer, as the case may be, to advance or expend fees or sums of money in
addition to those specifically set forth in the Servicing Agreements.

 

1-3

 

“Blocked Account” shall mean, both collectively
and individually, each of the accounts established by the Servicer under the
Blocked Account Agreement for the benefit of UBS, which is subject to a
security interest in favor of UBS.

 

“Blocked Account Agreement” shall mean the
Blocked Account Agreement dated as of August 4, 2004, among the Servicer, the
TRS Sub-Trust, UBS and HSBC Bank as the depository bank, as amended,
supplemented or otherwise modified from time to time.

 

“Borrowing Base” shall mean the aggregate
Collateral Value of all Eligible Mortgage Loans.

 

“Borrowing Base Deficiency” shall have the
meaning provided in Section 3.12(a) of the Note Purchase Agreement.

 

“Breakage Fee” shall mean as to any prepayment
occurring with fewer than five (5) Business Days’ prior notice of intent to
prepay (except for any prepayment expressly excepted hereunder from the
Breakage Fee), an amount equal to the sum of (a) the interest that would
otherwise accrue on an “actual/360” basis, on the principal balance of the
Notes prepaid, over a period of five (5) Business Days, at a rate equal to the
Eurodollar Rate plus the Applicable Margin, plus (b) all reasonable losses,
expenses and liabilities that arise from such prepayment, including without
limitation, any loss and expense on liabilities incurred by reason of
liquidating or reemployment of deposits or other funds required by the
Noteholders to fund the Notes (but excluding anticipated profits).

 

“Business Day” shall mean any day other than
(i) a Saturday or Sunday or other day on which banks located in the City of New
York, New York are authorized or obligated by law or executive order to be
closed, or (ii) any day on which UBS is closed for business, provided that
notice thereof shall have been given not less than seven calendar days prior to
such day.

 

“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 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 any
commercial bank having capital and surplus in excess of $5,000,000, (c)
repurchase obligations of any commercial bank satisfying the requirements of
clause (b) of this definition, having a term of not more than thirty 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

 

1-4

 

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 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.

 

“Cash Window Submission Package” shall mean the
documents listed on Exhibit B-1 to the Custodial Agreement, which shall be
delivered by the Trust, MortgageIT or MortgageIT Holdings to the Custodian
in connection with each Cash Window Transaction.

 

“Cash Window Transaction” shall mean a
transaction initiated by UBS’s delivery of a Request for Certification which
identifies Fannie Mae or Freddie Mac as the Takeout Investor but does not
include a Conversion Code.

 

“Certificate of Trust” shall have the meaning
assigned to that term in Section 2.1 of the Trust Agreement.

 

“Certificate Register” and “Certificate
Registrar” shall mean the register of Owner Trust Certificates maintained,
and the registrar appointed, respectively, pursuant to Section 11.1 of the
Trust Agreement.

 

“Certificateholder” or “Holder” shall
mean, with respect to any Owner Trust Certificate, the Person in whose name
such Owner Trust Certificate is registered on the Certificate Register.  Initially, the Depositors shall be the
Holders of all the Owner Trust Certificates.

 

“Certificateholder Funds” shall mean, with
respect to any Payment Date and (i) with respect to the REIT Certificates, an
amount equal to the sum of all amounts received by the REIT Servicer in respect
of the REIT Mortgage Loans, minus all amounts then due and payable by the REIT
Sub-Trust to the Noteholders, net of any amounts payable or reimbursable to the
Owner Trustee relating to the REIT Mortgage Loans pursuant to Section 6.2 of
the Trust Agreement, and (ii) with respect to the TRS Certificates, all amounts
received by the TRS Servicer in respect of the TRS Mortgage Loans, minus all
amounts then due and payable by the TRS Sub-Trust to UBS, net of any amounts
payable or reimbursable to the Owner Trustee with respect to the TRS Mortgage
Loans pursuant to Section 6.2 of the Trust Agreement.

 

“Certification” shall mean, with respect to a
Mortgage Loan, the full performance by the Custodian of the procedures set
forth in Sections 4(a) and 4(b) of the Custodial Agreement.

 

“Certification Code” shall mean a Mortgage Loan
Absentee Code, a Mortgage Loan Approval Code or a Mortgage Loan Suspension
Code.

 

“Certification Report” shall mean a Request for
Certification to which Custodian has added its Certification Codes and, when a
Certification Code indicates suspension, applicable

 

1-5

 

Exception Codes,
and which is transmitted by Custodian to UBS in an appropriate data layout
provided by UBS.

 

“Closing Date” shall mean August 4, 2004, or
for any group of REIT Mortgage Loans, the date upon which such REIT Mortgage
Loans become subject to the REIT Servicing Agreement.

 

“Closing Instruction Letter” shall mean, with
respect to each Wet Mortgage Loan which is being originated in part by the
proceeds of a Closing Transaction, the instruction letter of the Trust,
MortgageIT or MortgageIT Holdings with respect to such origination which is
acknowledged by the Escrow Agent.

 

“Closing Instruction Letter Insert” shall mean
a paragraph in the form of Exhibit S to the Loan Repurchase Agreement which
shall be inserted into the Closing Instruction Letter.

 

“Closing
Loan Purchase Detail” shall mean a loan purchase detail, prepared by a
Sub-Trust to UBS via electronic transmission containing all information
specified on Exhibit A of the Loan Repurchase Agreement or Exhibit H of the
Note Purchase Agreement, as applicable (as such information may be amended from
time to time by notice from UBS to such Sub-Trust), in a form acceptable to
UBS, regarding the characteristics of a Mortgage Loan being pledged by such
Sub-Trust to UBS under a Closing Transaction.

 

“Closing Transaction” shall mean any sale of a
Mortgage Loan by a Sub-Trust to UBS, structured as either a wet funding or a
dry funding, wherein UBS wires the Disbursement Amount in accordance with the
Escrow Agent Standing Wire Instructions, subject, in the case of a TRS Mortgage
Loan, to an obligation of the TRS Sub-Trust to repurchase such Mortgage Loan
pursuant to the Loan Repurchase Agreement.

 

“Code” shall mean the Internal Revenue Code of
1986, as amended from time to time, or any successor statute thereto.

 

“Collateral” shall mean, collectively the REIT
Collateral and the TRS Collateral.

 

“Collateral Receipt” shall mean with respect to
each Mortgage Loan, the receipt by Custodian on a Business Day of a Submission
Package relating thereto.

 

“Collateral Receipt Adjustment” shall mean the
process initiated by Collateral Receipt wherein the Pass-Through Rate on a Wet
Mortgage Loan is reduced, effective from the date of Collateral Receipt through
one calendar day prior to the Repurchase Date.

 

“Collateral Receipt Date” shall mean with
respect to each Mortgage Loan, the Business Day on which a Collateral Receipt
occurs.

 

“Collateral Value” shall have the meaning set
forth in the Pricing Side Letter.

 

“Collection Account” shall mean the separate
account or accounts created and maintained by the REIT Servicer pursuant to
Section 3.04 of the REIT Servicing Agreement,

 

1-6

 

which shall be
entitled “GMAC Mortgage Corporation, as the REIT Servicer, in trust for UBS
Real Estate Securities Inc. and its assignees.”

 

“Collections” shall mean, collectively, all
collections and proceeds on or in respect of the Mortgage Loans, excluding
collections required to be paid to the REIT Servicer or a Mortgagor on the
Mortgage Loans.

 

“Commitment” shall mean a commitment executed
by Takeout Investor and MortgageIT on Takeout Investor’s letterhead evidencing
Takeout Investor’s agreement to purchase one or more Mortgage Loans from
MortgageIT and MortgageIT’s agreement to sell one or more Mortgage Loans to an
investor in a forward trade by the applicable Commitment Expiration Date.

 

“Commitment Expiration Date” shall mean with
respect to any Commitment, the expiration date thereof.

 

“Condemnation Proceeds” shall mean all awards,
compensation and settlements in respect of a taking of all or part of a
Mortgaged Property by exercise of the power of condemnation or the right of
eminent domain, whether permanent or temporary, to the extent such awards,
compensation or settlements are not required to be delivered to the related
Mortgagor in accordance with the terms of the related Mortgage.

 

“Conduit” shall mean any of the Entities listed
on Schedule A to the Custodial Agreement, as amended or supplemented from time
to time.

 

“Conduit Bailee Letter” shall mean the master
bailee letter, in the form of Exhibit C-2 to the Custodial Agreement, for use
by Custodian in connection with the delivery of a Conduit Submission Package; provided,
however, for the purposes of delivering the related Conduit Submission
Package, excluding (i) a copy of the Commitment, (ii) the Warehouse Lender’s
Release or Trust’s Release, as applicable, and (iii) the original Assignment of
Mortgage, in blank, to a Conduit.

 

“Conduit Funding Program” shall mean a program
pursuant to the terms of the Custodial Agreement and the Loan Purchase
Agreement.

 

“Conduit Submission Package” shall mean the
documents listed on Exhibit C-1 to the Custodial Agreement required to be
delivered by the Trust, MortgageIT or MortgageIT Holdings to Custodian under
the Conduit Funding Program.

 

“Conduit Transaction” shall mean a transaction
initiated by UBS’s delivery of a Request for Certification which identifies a
Conduit as the Takeout Investor but does not include a Conversion Code.

 

“Confidential Information” shall have the
meaning given to such term in the Pricing Side Letter or the REIT Servicing
Agreement, as applicable.

 

“Confirmation” shall mean a confirmation
confirming a trade between MortgageIT or MortgageIT Holdings and Takeout
Investor.

 

1-7

 

“Conversion Code” shall mean, with respect to a
Mortgage Loan, the conversion code set forth in Part II of Exhibit F to the
Custodial Agreement, entered by UBS, along with the Program Code, in the “PROG
CODE” column of the related Request for Certification indicating that (i) such
Mortgage Loan was previously acquired by UBS in a Dry Transaction and (ii) a
Conversion Submission Package shall be received by Custodian on the applicable
Delivery Date.

 

“Conversion Loan Purchase Detail” shall mean a
loan purchase detail, prepared by the Trust and delivered by the Trust to UBS
via electronic transmission containing the information set forth on Exhibit C
to the Loan Repurchase Agreement, in a form acceptable to UBS, regarding the
characteristics of a Mortgage Loan that is subject to repurchase and that is
subsequently offered to UBS under the Conduit Funding Program.

 

“Conversion Submission Package” shall mean one
of the sets of documents listed on Exhibit D to the Custodial Agreement, which
shall be delivered by the Trust, MortgageIT or MortgageIT Holdings to Custodian
in connection with each Conversion Transaction.

 

“Conversion Transaction” shall mean, with
respect to a Mortgage Loan, a transaction initiated by UBS’s delivery to
Custodian of a Request for Certification containing a Conversion Code.  A Conversion Transaction shall always be
preceded by a Dry Transaction.

 

“Cooperative Apartment” shall mean a dwelling
unit in a multi-dwelling building owned or leased by a Cooperative Corporation,
which unit the Mortgagor has an exclusive right to occupy pursuant to the terms
of a Proprietary Lease in accordance with the laws of the state in which the
building is located.

 

“Cooperative Corporation” shall mean the entity
that holds title (fee or an acceptable leasehold estate) to a Cooperative
Apartment and which governs such Cooperative Apartment, which Cooperative
Corporation must qualify as a Cooperative Housing Corporation under Section 216
of the Code.

 

“Cooperative Loan” shall mean a Mortgage Loan
evidenced by a Mortgage Note and secured by a first lien against the Cooperative
Ownership Interest in a Cooperative Apartment and by the related Proprietary
Lease.

 

“Cooperative Ownership Interest” shall mean,
with respect to any Cooperative Loan, the ownership interest in a single
Cooperative Apartment, including (i) the shares issued by the Cooperative
Corporation, (ii) the leasehold interests in the Cooperative Apartment and
(iii) all attendant right, title, and interest thereto.

 

“Corporate Trust Office” shall mean the
principal corporate trust office of the Owner Trustee at which, at any
particular time, its corporate trust business is administered, which office at
the date hereof is located at the address of the Owner Trustee set forth in
Section 12.4 of the Trust Agreement.

 

“Costs” shall have the meaning given to such
term in Section 13.03(a) of the Note Purchase Agreement.

 

1-8

 

“Covered Persons” shall have the meaning given
to such term in Section 9(k) of the Note Purchase Agreement.

 

“Credit File” shall mean all papers and records
of whatever kind or description, whether developed or originated by Servicer or
others, required to document or service the Mortgage Loan; provided however,
that such Mortgage Loan papers, documents and records shall not include any
Mortgage Loan papers, documents or records which are contained in the Dry
Submission Package.

 

“Cross-Default Event” shall have the meaning
given to such term in Section 9(k) of the Note Purchase Agreement.

 

“Cross-Payment” shall mean the dollar amount of
(x) any REIT Related Obligation which is satisfied by either the TRS Trust
Estate (including the proceeds thereof) or by MortgageIT from corporate funds,
or (y) any TRS Related Obligation which is satisfied by either the REIT Trust
Estate (including the proceeds thereof) or by MortgageIT Holdings from
corporate funds.

 

“Cumulative Position File” shall mean a list of
all Mortgage Loans held by Custodian on each day which includes all information
which would be on a Certification Report and additionally includes the shipping
information for each Mortgage Loan which has been released from Custodian’s
possession (i.e., airbill number, federal express tracking code or other
identifying information).

 

“Custodial Agreement” shall mean the Custodial
Agreement, dated as of August 4, 2004, among the Trust, the Custodian,
MortgageIT, MortgageIT Holdings and UBS, as the same shall be modified and
supplemented and in effect from time to time.

 

“Custodial Fee” shall mean, with respect to any
Mortgage Loans, the amount set forth on the related Funding Confirmation as the
“Custodial Fee.”

 

“Custodian” shall mean JPMorgan Chase Bank, as
custodian under the Custodial Agreement, and its successors and permitted
assigns thereunder.

 

“Cut-off Date” shall mean, with respect to the
transfer of servicing by the Master Servicer to the REIT Servicer for any group
of Mortgage Loans, the date specified by the Master Servicer to the REIT
Servicer in the related Mortgage Loan Schedule.

 

“Defective Mortgage Loan” shall have the
meaning given to such term in the Loan Repurchase Agreement, the Loan Purchase
Agreement or the Loan Participation Agreement, as applicable.

 

“Deficient Valuation” shall mean, in connection
with bankruptcy proceedings with respect to a Mortgagor, a binding
determination that, based upon the value of the Mortgaged Property, the lien of
the related Mortgage secures an amount of indebtedness that is less than the
outstanding amount stated in the related Note.

 

1-9

 

“Delinquent” shall mean if any payment due on
the Mortgage Loan is not made by the close of business on the Due Date for such
Mortgage Loan.  A Mortgage Loan is “30
days Delinquent” if such payment has not been received by the close of business
on the Due Date immediately succeeding the month in which such payment was
due.  Similarly for “60 days
Delinquent,” “90 days Delinquent” and so on.

 

“Delivery” shall mean the later to occur of (a)
the issuance of the related Security and (b) the transfer of all of the right,
title and ownership interest in that Security to UBS.

 

“Delivery Date” shall mean, with respect to a
Mortgage Loan, the date set forth on the related Request for Certification in
the “DELIVERY DATE” column, which shall be either (1) the Note Purchase Date or
(2) the Business Day on which Trust desires the applicable portion of the
related Submission Package be sent by Custodian to the Takeout Investor, i.e.,
one Business Day prior to the Business Day on which Trust desires the
applicable portion of the Submission Package to be received by the Takeout
Investor.

 

“Delivery Directive” shall mean, with respect
to each Mortgage Loan being offered for sale or being pledged by Trust to UBS
pursuant to a Conduit Transaction or a Cash Window Transaction, the delivery
directive, set forth in Part IV of Exhibit F to the Custodial Agreement, used
by UBS in a notice delivered via electronic transmission in the form of Exhibit
M to the Custodial Agreement, to direct Custodian to deliver the related
Submission Package in accordance with the Delivery Instructions.

 

“Delivery Instructions” shall mean, with
respect to a Mortgage Loan, instructions prepared by the Administrator, in the
form of Exhibit N to the Custodial Agreement, indicating the address for the
delivery by Custodian of the applicable portion of the related Submission
Package.

 

“Depositor” shall mean each of MortgageIT and
MortgageIT Holdings, in its capacity as Depositors under the Trust Agreement
(collectively, the “Depositors”).

 

“Designated Agent” shall mean, with respect to
the Trust, any of the individuals identified in Exhibit J to the Note Purchase
Agreement and any Responsible Officer of the Owner Trustee.

 

“Desired Funding Date” shall mean, with respect
to REIT Mortgage Loans, the Business Day indicated by the REIT Sub-Trust on the
related Wet-Ink Funding Detail or Loan Purchase Detail, as applicable, on which
the REIT Sub-Trust desires to pledge a Mortgage Loan, and with respect to TRS
Mortgage Loans, the Business Day indicated by the TRS Sub-Trust on the Closing
Loan Purchase Detail, on which the TRS Sub-Trust desires UBS to purchase a
Mortgage Loan via a Wet Funding or a Dry Funding or the Business Day indicated
by the TRS Sub-Trust on the Rewarehousing Loan Purchase Detail, on which the
TRS Sub-Trust desires UBS to purchase a Mortgage Loan via a Dry Funding.

 

“Determination Date” shall mean the last day of
the month immediately preceding the related Remittance Date (or if such day is
not a Business Day, the Business Day immediately preceding such day).

 

1-10

 

“Disbursement Amount” shall mean, with respect
to a Mortgage Loan, the amount set forth on the related Wet-Ink Funding Detail,
Loan Purchase Detail, Closing Loan Purchase Detail or Rewarehousing Loan
Purchase Detail as the “Disbursement Amount”.

 

“Discount” shall mean, with respect to each
Mortgage Loan sold to UBS, the amount, determined by UBS in its sole
discretion, set forth on the related Funding Confirmation as the “Discount.”

 

“Disposition Fee” shall mean the fee outlined
in Schedule II attached to and incorporated in the REIT Servicing
Agreement.

 

“Distressed Mortgage Loan” shall mean any
Mortgage Loan which is 60 or more days delinquent at the end of each calendar
month.

 

“Document File” shall mean the Credit File and
the Dry Submission Package.

 

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

 

“Dry Funding” shall mean either (i) a Closing
Transaction initiated by the delivery by the Trust, via electronic transmission
to UBS of a Closing Loan Purchase Detail and the receipt by Custodian of a Dry
Submission Package or (ii) a Rewarehousing Transaction initiated by the
delivery by the Trust, via electronic transmission to UBS, of a Rewarehousing
Loan Purchase Detail, a Warehouse Lender’s or Trust’s Release and the
Custodian’s receipt of a Dry Submission Package.

 

“Dry Mortgage Loan” or “Dry Ink Mortgage
Loan” shall mean a Mortgage Loan with respect to which (i) Custodian has
received a Dry Submission Package and (ii) with respect to a TRS Mortgage Loan,
no Repurchase has occurred.

 

“Dry Submission Package” shall mean the
documents listed in Exhibit A to the Custodial Agreement required to be
delivered by the Trust, MortgageIT or MortgageIT Holdings to Custodian in
connection with each Dry Transaction pursuant to the Custodial Agreement.

 

“Dry Transaction” shall mean a transaction
initiated by UBS’s delivery to Custodian of a Request for Certification, which
does not identify a Takeout Investor, and which does not include a Conversion
Code.

 

“Due Date” shall mean the day of the month on
which the Monthly Payment is due on the Mortgage Loan.

 

“Due Diligence Review” shall mean the
performance by UBS of any or all of the reviews permitted under Section 13.14
of the Note Purchase Agreement with respect to any or all of the Mortgage
Loans.

 

“Due Period” shall mean, with respect to each
Payment Date, the period commencing on the first day of the month preceding the
month of the Payment Date and ending on the last day of the month preceding the
month of the Payment Date.

 

1-11

 

“Effective Date” shall mean, with respect to
the REIT Mortgage Loans, the date upon which the conditions precedent set forth
in Section 6.01 of the Note Purchase Agreement shall have been satisfied, and,
with respect to the TRS Mortgage Loans, August 4, 2004.

 

“Electronic Agent” shall mean MERSCORP, Inc.,
or its successor or assigns.

 

“Electronic Agent Agreement” shall mean that
certain agreement (if any) between the Electronic Agent, UBS and the Trust, as
amended, supplemented or otherwise modified from time to time.

 

“Electronic File” shall mean a file in
transferable electronic format that includes all data essential to service a
Mortgage Loan, including, but not limited to, the following information with
regard to each Mortgage Loan:

 

i.                                          the
origination loan number,

 

ii.                                       customer
name, billing address and street address (if different),

 

iii.                                    unpaid
principal balance,

 

iv.                                   the
amount of periodic installments and the date(s) to which principal, interest
and any escrows have been paid,

 

v.                                      the
accrued but unpaid interest up to and including the Closing Date,

 

vi.                                   a
ledger history reflecting all receipts and disbursements, and

 

data, consistent with Schedule III to the REIT
Servicing Agreement, sufficient to calculate any applicable late charge,
prepayment penalty and any other applicable contractual fee, charge or penalty.

 

“Electronic Transmission” shall mean the
delivery of information in an electronic format acceptable to the applicable
recipient thereto.

 

“Electronic Tracking Agreement” shall mean the
Electronic Tracking Agreement, dated as of August 4, 2004, among UBS, the
Trust, MortgageIT, MortgageIT Holdings, an electronic agent and MERS, as the
same shall be amended, supplemented or otherwise modified from time to time.

 

“Eligible Account” shall mean (i) an account or
accounts maintained with a depository institution the short-term debt
obligations of which are rated AA or better by S&P, or (ii) an account or
accounts the deposits in which are fully insured by the FDIC, or (iii) a trust
account or accounts maintained with a federal or state chartered depository
institution or trust company acting in its fiduciary capacity, the debt
obligations of which are rated A-1 or better by S&P.

 

“Eligible Investments” shall mean any one or
more of the following obligations or securities:

 

1-12

 

a.     direct obligations of, or obligations fully guaranteed as to
timely payment of principal and interest by the United States of America or any
agency or instrumentality thereof, provided such obligations are backed by the
full faith and credit of the United States of America, or Freddie Mac senior
debt obligations, but excluding any of such securities whose terms do not
provide for payment of a fixed dollar amount upon maturity or call for
redemption;

 

b.     c.             demand and
time deposits in, certificates of deposit of, bankers’ acceptances issued by or
federal funds sold by any depository institution or trust company (including
the Owner Trustee or its agent acting in their respective commercial
capacities) incorporated under the laws of the United States of America or any
state thereof and subject to supervision and examination by federal and/or
state authorities, so long as, at the time of such investment or contractual
commitment providing for such investment, such depository institution or trust
company or its ultimate parent has a short-term uninsured debt rating in one of
the two highest available rating categories of S&P and the highest
available rating category of Moody’s and provided that each such investment has
an original maturity of no more than 365 days;

 

d.             any
other demand or time deposit or deposit which is fully insured, by the FDIC;
and

 

e.             Freddie
Mac participation certificates and other Freddie Mac guaranteed mortgage-backed
securities and senior debt obligations;

 

f.      repurchase obligations with a term not to exceed 30 days with
respect to any security described in clause (i) above and entered into with a
depository institution or trust company (acting as principal) rated “A” or
higher by S&P and rated “A2” or higher by Moody’s; provided, however,
that collateral transferred pursuant to such repurchase obligation must be of
the type described in clause (i) above and must (A) be valued daily at current
market prices’ plus accrued interest or (B) pursuant to such valuation, be
equal, at all times, to 105% of the cash transferred by the Owner Trustee in
exchange for such collateral and (C), be delivered to the Owner Trustee or, if
the Owner Trustee is supplying the collateral, an agent for the Owner Trustee,
in such a manner as to accomplish perfection of a security interest in the
collateral by possession of certificated securities;

 

g.     securities bearing interest or sold at a discount that are
issued by any corporation incorporated under the laws of the United States of
America or any State thereof and that are rated by a Rating Agency in its
highest long-term unsecured rating categories at the time of such investment or
contractual commitment providing for such investment;

 

h.     commercial paper (including both non-interest-bearing discount
obligations and interest-bearing obligations payable on demand or on a
specified date not more than 30 days after the date of acquisition thereof)
that is rated by a Rating Agency in its highest short-term unsecured debt
rating available at the time of such investment;

 

i.      units of money market funds registered under the Investment
Company Act of 1940 including funds managed or advised by the Owner Trustee or
an affiliate thereof having a rating by S&P of “AAA-G,” “AAA-m”, or “AA-m”,
and if rated by Moody’s, rated “Aaa,” “Aa1” or “Aa2”; and

 

1-13

 

j.      any other obligation or security acceptable to the Trust (as
certified by a letter from the Trust to the Servicer);

 

provided, that no such investment
shall be an Eligible Investment if such investment evidences either (a) the
right to receive interest-only payments with respect to the obligations
underlying such investments or (b) both principal and interest payments derived
from obligations underlying such investment where the principal and interest
payments with respect to such investment provide a yield to maturity exceeding
120% of the yield to maturity at par of such underlying obligation.

 

“Eligible Mortgage Loan” shall mean a Mortgage
Loan as to which the representations and warranties made by the Trust in
Schedule 2 to the Loan Sale Agreement are correct; provided that in no
event shall a land installment contract or similar lending arrangement be an
Eligible Mortgage Loan.

 

“Eligible Owner Trustee” shall mean a bank
(within the meaning of Section 2(a)(5) of the Investment Company Act) that
meets the requirements of Section 26(a)(1) of the Investment Company Act,
that is not an Affiliate of either Depositor or an Affiliate of any Person
involved in the organization or operation of either Depositor, that is
organized and doing business under the laws of any state or the United States
of America, that is authorized under such laws to exercise corporate trust
powers and to accept the trust conferred under the Trust Agreement, that has,
or whose parent corporation has, a combined capital and surplus and undivided
profits of at least $100,000,000 and that is subject to supervision or
examination by federal or state authority. If such bank publishes reports of
condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purposes of this
definition the combined capital, surplus and undivided profits of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published.

 

“Entity” shall mean any individual,
corporation, partnership, joint venture, association, joint stock company,
trust (including any beneficiary thereof), unincorporated organization or
government or any agency or political subdivision thereof.

 

“ERISA” shall mean the Employee Retirement
Income Security Act of 1974, as amended from time to time.

 

“ERISA Affiliate” shall mean any corporation or
trade or business that is a member of any group of organizations (i) described
in Section 414(b) or (c) of the Code of which the Trust is a member and (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 the Trust is a member.

 

“Errors and Omissions Insurance Policy” shall
mean an errors and omissions insurance policy to be maintained by the TRS
Servicer pursuant to Section 4.11 of the TRS Servicing Agreement.

 

1-14

 

“Escrow Account” shall have the meaning given
to such term in the TRS Servicing Agreement, with respect to the TRS Mortgage
Loans, and the REIT Servicing Agreement, with respect to the REIT Mortgage
Loans.

 

“Escrow Agent” shall mean the agent appointed
by the Title Insurance Company to administer the closing of a Mortgage Loan or,
with respect to a REIT Mortgage Loan, any entity set forth on Exhibit N to the
Note Purchase Agreement, which has been approved by the Agent in its sole
discretion or any other entity approved by the Agent in its sole discretion.

 

“Escrow Agent Standing Wire Instructions” shall
mean the wire instructions of the Escrow Agent set forth in the applicable Loan
Purchase Detail or Wet-Ink Funding Detail, as applicable, from the Trust,
MortgageIT or MortgageIT Holdings to UBS for use when UBS wires Disbursement
Amounts for Wet Fundings and Dry Fundings structured as Closing Transactions or
in connection with the funding of Wet-Ink Mortgage Loans.

 

“Escrow Instruction Letter” shall mean with
respect to each Wet-Ink Mortgage Loan which is being funded with a Disbursement
Amount, the instruction letter of the Note Issuer with respect to such
origination which is acknowledged by the Escrow Agent, in substantially the
form of Exhibit M to the Note Purchase Agreement.

 

“Escrow Mortgage Loans” shall mean the REIT
Mortgage Loans for which the REIT Servicer has established an Escrow Account
for items constituting Escrow Payments.

 

“Escrow Payment” shall mean, with respect to
any Mortgage Loan, the amounts constituting any of 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 Obligor with the Mortgagee
pursuant to the Mortgage or any other document.

 

“Estimated Note Issuance Proceeds” shall have
the meaning provided in Section 3.09(e) of the Note Purchase Agreement.

 

“Eurodollar Rate” shall mean, with respect to
each Interest Period a Note is outstanding, the rate per annum equal to the
rate appearing at page 5 of the Telerate Screen as one-month LIBOR at or about
9:00 a.m., New York City time, on the first day of such Interest Period and if
such rate shall not be so quoted, the rate per annum at which the Reference
Bank is offered Dollar deposits at or about 9:00 a.m., New York City time, on
such date by prime banks in the London interbank eurodollar market for delivery
on such day for a period of thirty (30) days and in an amount comparable to the
amount of the Notes to be outstanding on such day.  The Eurodollar Rate shall be reset by UBS as described above and
UBS’s determination of Eurodollar Rate shall be conclusive upon the parties
absent manifest error on the part of UBS.

 

“Event of Default” shall have the meaning given
to such term in the Note Purchase Agreement, the Loan Repurchase Agreement, the
Loan Purchase Agreement, the Loan Sale Agreement or the REIT Servicing
Agreement, as applicable.

 

“Exception Code” shall mean each of the
exception codes set forth in Part V of Exhibit F to the Custodial Agreement,
placed by Custodian on a Certification Report indicating

 

1-15

 

missing documents,
incomplete documents and deficiencies in documents reviewed by Custodian.

 

“Executive” shall mean each of the Chief
Executive Officer and the Chief Financial Officer who are incumbent as of the
date of the Note Purchase Agreement.

 

“Existing Financing Documents” shall mean,
collectively, (i) that certain Warehousing 
Credit  and Security Agreement,
dated as of August 1, 2003, by and between MortgageIT, Inc. and Residential
Funding Corporation, as may be amended 
from  time to time, and all other
documents or agreements executed in 
connection  therewith,  (ii) 
that  certain Amended and
Restated Master Repurchase  Agreement
among MortgageIT, Inc., MortgageIT Holdings, Inc. and Merrill  Lynch Mortgage Capital Inc., dated as of
August 4, 2004, as may be amended from 
time  to  time, 
and  all  other 
documents or agreements executed in connection therewith, and (iii) that
certain Note Purchase Agreement by and among MortgageIT, Inc. and Technology
Investment Capital Corp., dated as of March 
29,  2004,  as 
may  be  amended from time to time, and all other documents or agreements
executed in connection therewith.

 

“Expected Delivery Date” shall mean the date
identified on a Request for Certification as the “Expected Delivery Date of
Mortgage File”, which shall be the date on which Trust, MortgageIT or
MortgageIT Holdings has informed UBS that a Submission Package will be received
by Custodian from Trust, MortgageIT or MortgageIT Holdings.

 

“Facility Agreements”
shall mean the Note Purchase Agreement, the Loan Repurchase Agreement, the Loan
Purchase Agreement and the Loan Participation Agreement.

 

“Facility Default”
shall mean a default or Event of Default under any of the Facility Agreements.

 

“Facility Limit” shall have the meaning set
forth in the Pricing Side Letter.

 

“Fannie Mae” shall mean the Federal National
Mortgage Association, or any successor thereto.

 

“Fannie Mae Bailee Letter” shall mean the
master bailee letter, in the form of Exhibit B-4, for use by Custodian in
connection with the delivery to Fannie Mae of the Cash Window Submission
Package, excluding (i) the original Assignment of Mortgage, in blank, (ii) the
Warehouse Lender’s Release or Trust’s Release, as applicable, (iii) all
modification agreements relating to a Mortgage, (iv) the Delivery Instructions
and (v) a copy of the Commitment.

 

“Fannie Mae Commitment” shall mean a commitment
executed by Fannie Mae and MortgageIT evidencing Fannie Mae’s agreement to
purchase one or more Mortgage Loans from MortgageIT and MortgageIT’s agreement
to sell one or more Mortgage Loans to Fannie Mae by the applicable Commitment
Expiration Date under the Applicable Guide.

 

“Fatal Exception” shall mean the assignment by
the Custodian of a Mortgage Loan Absentee Code or a Mortgage Loan Suspension
Code to a Mortgage Loan.

 

1-16

 

“FDIC” shall mean Federal Deposit Insurance
Corporation or any successor thereto.

 

“Federal Funds Rate” shall mean, for any day,
the weighted average of the rates on overnight federal funds transactions with
members of the Federal Reserve System arranged by federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of
New York, or, if such rate is not so published for any day which is a Business
Day, the average of the quotations for the day of such transactions received by
UBS from three federal funds brokers of recognized standing selected by it in
good faith.

 

“FHA” shall mean the Federal Housing
Administration, or any successor thereto.

 

“Fidelity Bond” shall mean a fidelity bond to
be maintained by the TRS Servicer pursuant to Section 4.11 of the TRS
Servicing Agreement.

 

“Final Recovery Determination” shall mean, with
respect to any defaulted Mortgage Loan or any REO Property, a determination
made by the REIT Servicer that all Insurance Proceeds, Condemnation Proceeds,
Liquidation Proceeds and any other payments and recoveries which the REIT
Servicer, in its reasonable good faith judgment, expects to be finally
recoverable in respect thereof have been so recovered.

 

“Fitch” shall mean Fitch IBCA or its successors
and assigns.

 

“Fixed Rate Mortgage Loan” shall mean a
Mortgage Loan which provides for a fixed Mortgage Interest Rate payable with
respect thereto.

 

“Freddie Mac” shall mean the Federal Home
Mortgage Loan Mortgage Corporation, or any successor thereto.

 

“Freddie Mac Commitment” shall mean a
commitment executed by Freddie Mac and MortgageIT evidencing Freddie Mac’s
agreement to purchase one or more Mortgage Loans from MortgageIT and
MortgageIT’s agreement to sell one or more Mortgage Loans to Freddie Mac by the
applicable Commitment Expiration Date under the Applicable Guide.

 

“Freddie Mac Guide” shall mean the Freddie Mac
Sellers’ and Servicers’ Guide, as such may hereafter from time to time be
amended.

 

“Freddie Mac Program” shall mean the Freddie
Mac Home Mortgage Guarantor Program or the Freddie Mac FHA/VA Home Mortgage
Guarantor Program, as described in the Freddie Mac Guide.

 

“Funding Confirmation” shall have the meaning
given to such term in the Note Purchase Agreement, the Loan Repurchase
Agreement or the Loan Purchase Agreement, as applicable.

 

“Funding Percentage” shall initially mean 100%
with respect to UBS, as the sole Purchaser, but if, at any time after the date
of the Note Purchase Agreement, UBS transfers all or any part of its option
hereunder to purchase Notes with the consent of the Trust, “Funding

 

1-17

 

Percentage” at any
time thereafter shall mean, with respect to each Purchaser, the percentage of
all Purchasers’ funding options hereunder to purchase Notes that such Purchaser
at the time retains after taking into account all prior transfers of all or
part of such option of such Purchaser.

 

“Future Financing Document” shall mean any
mortgage loan warehouse financing agreement, regardless of form (e.g.,
loan agreement, note purchase agreement, repurchase agreement) for performing
or non-performing loans entered into by MortgageIT, MortgageIT Holdings or any
Affiliate thereof.

 

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

 

“Ginnie Mae” or “GMNA” shall mean the
Government National Mortgage Association or any successor thereto.

 

“Governmental Authority” shall mean, in relation
to any Person, any nation or government, any state or other political
subdivision thereof, any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government and any
court or arbitrator having jurisdiction over such Person, any of its
Subsidiaries or any of its Properties.

 

“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 (i) endorsements for collection or deposit in the ordinary course of
business, or (ii) obligations to make any servicing advances, escrow advances
or other obligations in respect of a Mortgaged Property.  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.

 

“Hold Directive” shall mean with respect to
each Mortgage Loan being offered by Trust for sale to UBS pursuant to a Conduit
Transaction or a Cash Window Transaction, the hold directive, set forth in Part
IV of Exhibit F to the Custodial Agreement, delivered by Trust via electronic
transmission in a notice in the form of Exhibit M to the Custodial Agreement to
direct Custodian to continue to hold the related Submission Package.

 

“HUD” shall mean the United States Department
of Housing and Urban Development or its successors and assigns.

 

“Incomplete MERS Designated Mortgage Loan”
shall have the meaning given to such term in Article XXII of the
Electronic Tracking Agreement.

 

1-18

 

“Incremental Pass-Through Rate” shall mean the
amount by which the Pass-Through Rate is increased upon the occurrence of (i) a
Commitment Expiration Date, (ii) any event giving Purchaser the right to elect
a remedy pursuant to Section 3 of the Loan Purchase Agreement, (iii) the
Scheduled Repurchase Date (as defined in the Loan Repurchase Agreement), or
(iv) the occurrence of any event giving UBS the right to elect a remedy
pursuant to Section 7 of the Loan Repurchase Agreement, which amount shall be
set forth in a Funding Confirmation as the “Incremental Pass-Through Rate.

 

“Indebtedness” shall mean, for 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 after 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
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 secondarily or contingently liable
(other than by endorsement of instruments in the course of collection), whether
by reason of any agreement to acquire such indebtedness or to supply or advance
sums or otherwise.  Liabilities relating
to securitizations are not “Indebtedness,” except in the case of the Trust on a
non-consolidated basis.

 

“Indemnified Party” shall have the meaning
given to such term in Section 13.03(a) of the Note Purchase Agreement.

 

“Index” shall mean with respect to each
Adjustable Rate Mortgage Loan and with respect to each related interest rate
adjustment date, the index as specified in the related Mortgage Note.

 

“Insurance Proceeds” shall mean with respect to
each Mortgage Loan, all proceeds of any insurance policy or other insurance
policies insuring the Mortgage Loan or the related Mortgaged Property.

 

“Insured Depository Institution” shall have the
meaning given to such term by Section 1813(c)(2) of Title 12 of the United
States Code, as amended from time to time.

 

“Interest” shall have the meaning given to such
term in Section 12.15(a) of the Note Purchase Agreement.

 

1-19

 

“Interest Period” shall mean, with respect to
the Notes, (i) initially, the period commencing on the Note Purchase Date on
which a Note is purchased hereunder from the REIT Sub-Trust and ending on the
last Business Day of the month in which that period commences, and (ii)
thereafter, each period commencing on and including the day which immediately
follows the last day of the preceding Interest Period and ending on the last day
of the month which immediately follows such last day of the preceding Interest
Period.  In addition, if the Maturity
Date occurs as a result of any of the events described in clauses (i) through
(iii) in the definition thereof, then the most recently commenced Interest
Period with respect to the Notes shall end on the day prior to such Maturity
Date.

 

“Interest Rate Adjustment Date” shall mean with
respect to an Adjustable Rate Mortgage Loan, the date on which the Mortgage
Interest Rate is adjusted with respect to such Mortgage Loan.  The first Interest Rate Adjustment Date for
each Adjustable Rate Mortgage Loan is set forth on the Mortgage Loan Schedule.

 

“Interest Rate Protection Agreement” shall
mean, with respect to any or all of the Mortgage Loans, any short sale of U.S.
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 similar arrangements entered into solely to
provide for protection against fluctuations in interest rates or the exchange
of nominal interest obligations, either generally or under specific
contingencies, acceptable to UBS.

 

“Interim Funder” shall mean, with respect to
each MERS Designated Mortgage Loan, the Person named on the MERS System as the
interim funder pursuant to the MERS Procedures Manual.

 

“Investment Company Act” shall mean the
Investment Company Act of 1940, as amended.

 

“IRS” shall mean the Internal Revenue Service,
or any successor thereto.

 

“Issuance Date” shall mean, with respect to a
Security, the first day of the month in which the Security is issued.

 

“Legal File” shall have the meaning given to
such term in the REIT Servicing Agreement.

 

“Liabilities” shall have the meaning specified
in Section 6.2(b) of the Trust Agreement.

 

“Lien” shall mean any mortgage, lien, pledge,
charge, security interest or similar encumbrance.

 

“Limited Power of Attorney” shall mean a
limited power of attorney, in the form of Exhibit K to the Custodial Agreement,
executed by Trust and delivered to Custodian, authorizing Custodian to prepare
Mortgage Note endorsements in the form indicated thereon.

 

1-20

 

“Liquidation Proceeds” shall mean the amounts,
other than Insurance Proceeds and Condemnation Proceeds, received in connection
with the liquidation of a defaulted Mortgage Loan through trustee’s sale,
foreclosure sale or otherwise, other than amounts received following the
acquisition of REO Property.

 

“Liquidation Proceeds” shall mean cash
(exclusive of REO Disposition Proceeds) received in connection with the
liquidation of a defaulted Mortgage Loan, whether through the sale or
assignment of such Mortgage Loan, trustee’s sale, foreclosure sale or
otherwise, or the sale of the related Mortgaged Property if the Mortgaged
Property is acquired in satisfaction of the Mortgage Loan.

 

“Loan Identification Data” shall mean the
applicable information regarding a Mortgage Loan, set forth on a Request for
Certification, which shall include UBS’s reference number, the name of UBS’s
applicable program, the Mortgage Loan number, the MERS Identification Number,
the last name of the Mortgagor, the address of the Mortgaged Property, the face
amount of the Mortgage Note, the number of months to maturity of the Mortgage
Loan, and the interest rate borne by the Mortgage Note and, solely with respect
to Cash Window Transactions, Conduit Transactions and Conversion Transactions,
the name of the Takeout Investor, the sale price of the Mortgage Loan to the
Takeout Investor, the commitment number, the Commitment Expiration Date, the
Delivery Date, the Release Payment, and the name of the Warehouse Lender.

 

“Loan Participation Agreement” shall mean the
Mortgage Loan Participation Agreement, dated as of August 4, 2004, between the
TRS Sub-Trust, as seller, and UBS, as participant, as amended, supplemented or
otherwise modified from time to time.

 

“Loan Purchase Agreement” shall mean the
Mortgage Loan Purchase Agreement, dated as of August 4, 2004, between the TRS
Sub-Trust and UBS, as amended, supplemented or otherwise modified from time to
time.

 

“Loan Purchase Detail” shall have the meaning
given to such term in the Note Purchase Agreement or the Loan Purchase
Agreement, as applicable.  With respect
to the Loan Repurchase Agreement, “Loan Purchase Detail” shall mean a
Conversion Loan Purchase Detail, Closing Loan Purchase Detail or Rewarehousing
Loan Purchase Detail, as applicable.

 

“Loan Repurchase Agreement” shall mean the
Mortgage Loan Repurchase Agreement, dated as of August 4, 2004, among the TRS
Sub-Trust and UBS, as amended, supplemented or otherwise modified from time to
time.

 

“Loan Sale Agreement” shall mean the Loan Sale
Agreement, dated as of August 4, 2004, among MortgageIT as a seller, MortgageIT
Holdings as a seller, and the Trust as purchaser, as amended, supplemented or
otherwise modified from time to time.

 

“Losses” shall mean any and all losses, claims,
damages, liabilities or expenses (including reasonable attorneys’ fees) incurred
by any Person(s) specified.

 

“Majority Investors” shall mean Majority
Purchasers and Majority Noteholders.

 

1-21

 

“Majority Noteholders” shall mean Noteholders
of Notes whose principal amount outstanding is at least equal to 51% of the
outstanding principal amount of all the Notes (not including any Notes known by
UBS to be held by the REIT Sub-Trust or any of its Affiliates).

 

“Majority Purchasers” shall mean Purchasers
with Funding Percentages at least equal to 51% in the aggregate (not including
any Notes known by UBS to be held by the REIT Sub-Trust or any of its
Affiliates).

 

“Manual Boarding” shall mean, with respect to a
REIT Mortgage Loan, the manual entry of REIT Mortgage Loan data onto the Servicing
database of the REIT Servicer, which can occur either when there is no
Electronic File relating to a REIT Mortgage Loan or the related Electronic File
is not transferred in a successful, complete and timely manner.

 

“Manufactured Housing” shall mean any
manufactured home.

 

“Market Value” shall mean, with respect to the
REIT Mortgage Loans, shall have the meaning given to such term in the Pricing
Side Letter, and with respect to the TRS Mortgage Loans, the meaning given to
such term in the Loan Repurchase Agreement.

 

“Master Servicer” shall mean MortgageIT
Holdings, in its capacity as master servicer under the REIT Servicing
Agreement, or its successors or assigns.

 

“Material Adverse Effect” shall mean a material
adverse effect on (a) the Property, business, operations, financial condition
or prospects of any specified Person, (b) the ability of any specified Person
to perform its obligations under any of the Note Documents to which it is a
party, (c) the validity or enforceability of any of the Note Documents, (d) the
rights and remedies of UBS, any of the Purchasers or any of the Noteholders
under any of the Note Documents, (e) the timely payment of the principal of or
interest on the Notes or other amounts payable in connection therewith, (f)
UBS’s security interest in the Collateral or (g) the Collateral as a whole.

 

“Maturity Date” shall mean, with respect to all
Notes, the earliest to occur of (i) the Termination Date, (ii) such earlier
date as is described in the related Request for Note Purchase, which such
earlier date would be applicable to all existing and future Notes, or (iii)
such earlier date on which the Note Purchase Agreement shall terminate in
accordance with the provisions thereof or by operation of law (without
prejudice to the provisions of the Note Purchase Agreement under which a Note’s
maturity, and the REIT Sub-Trust’s related obligations to pay the principal
thereof and interest thereon, may be accelerated).

 

“Maximum Purchase Price” shall mean, with
respect to any TRS Mortgage Loan, the maximum price to be paid for such
Mortgage Loan by UBS on the Purchase Date, which amount shall be determined by
UBS in its sole discretion taking into account all relevant factors.  UBS shall notify the TRS Sub-Trust of the
Maximum Purchase Price on or prior to the related Purchase Date and the
acceptance by the TRS Sub-Trust of any such amount shall be deemed to indicate
the TRS Sub-Trust’s agreement with UBS’s determination of such amount.

 

“Maximum Rate” shall mean with respect to each
Adjustable Rate Mortgage Loan, the amount set forth in the Note as the maximum
Mortgage Interest Rate thereunder.

 

1-22

 

“MBS Swap Funding Program Selection Notice”
shall mean a notification that identifies Mortgage Loans intended for the MBS
Swap Funding Program provided by the TRS Sub-Trust to UBS either (i) on the
Closing Loan Purchase Detail or Rewarehousing Loan Purchase Detail via the “MBS
Swap Funding Program Designation” field or (ii) via a facsimile transmission in
the form of Exhibit P to the Loan Repurchase Agreement, received by UBS prior
to the Scheduled Repurchase Date, for any Mortgage Loans previously purchased
without the “MBS Swap Funding Program Designation”.

 

“MBS Swap Funding Program” shall mean a program
pursuant to the terms of the Loan Participation Agreement.

 

“MBS Swap Shipment Documents” shall mean, with
respect to each Mortgage Loan for which an MBS Swap Funding Program Selection
Notice has been provided, the documents required, as listed in Exhibit R to the
Loan Repurchase Agreement, to be received by UBS from the TRS Sub-Trust via
facsimile transmission, prior to UBS’s carrying out the TRS Sub-Trust’s
instructions for the Request for Mortgage Loan Shipment.

 

“MBS Swap Submission Package” shall mean the
documents required to be provided by the TRS Sub-Trust to UBS with respect to
each purchase under the MBS Swap Funding Program, as described in the Loan
Participation Agreement.

 

“MERS” shall mean Mortgage Electronic
Registration Systems, Inc., a Delaware corporation, or any
successor-in-interest thereto.

 

“MERS Designated Mortgage Loan” shall mean
Mortgage Loans for which (a) MERS has been designated or will be designated as
the mortgagee of record, as nominee for the Trust, in accordance with the MERS
Procedure Manual and (b) UBS has been designated or will be designated as the
Investor and Interim Funder on the MERS® System.

 

“MERS Eligible Mortgage Loan” shall mean any
Mortgage Loan that has been designated by the Servicer as recordable in the name
of MERS as nominee for the holder of the related Mortgage Loan.

 

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

 

“MERS Member” shall mean a Person that has the
status and rights of a member of MERS with respect to specified mortgage loans
in accordance with the MERS Procedures Manual.

 

“MERS Mortgage Loan” shall mean any Mortgage
Loan as to which the related Mortgage, or an Assignment of Mortgage, has been
or will be recorded in the name of MERS, as nominee for the holder from time to
time of the related Mortgage Note.

 

“MERS Procedures Manual” shall mean the MERS
Procedures Manual attached as Exhibit B to the Electronic Tracking Agreement,
as it may be amended, supplemented or otherwise modified from time to time.

 

1-23

 

“MERS Report” shall mean the schedule listing
MERS Designated Mortgage Loans and other information prepared by the Electronic
Agent pursuant to the Electronic Tracking Agreement.

 

“MERS® System” shall mean the Electronic
Agent’s mortgage electronic registry system, as more particularly described in
the MERS Procedures Manual.

 

“MIDANET” shall mean the Freddie Mac automated
system by which sellers and servicers of mortgage loans to Freddie Mac transfer
mortgage summary and record data or mortgage accounting and servicing
information from their computer system or service bureau to Freddie Mac, as
more fully described in the Freddie Mac Guide.

 

“Minimum Rate” shall mean with respect to each
Adjustable Rate Mortgage Loan, the amount set forth in the Note as the minimum
Mortgage Rate Interest thereunder.

 

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

 

“Moody’s” shall mean Moody’s Investors Service,
Inc. or its successor-in-interest.

 

“Mortgage” shall mean the mortgage, deed of
trust or other instrument securing a Mortgage Note, which creates a first or
second lien on the real property securing the Mortgage Note or, in the case of
a Cooperative Loan, the related Security Agreement.

 

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

 

“Mortgage File” shall mean, collectively, the Servicing
File and the Legal File for any Mortgage Loan.

 

“Mortgage Impairment Insurance Policy” shall
mean a mortgage impairment or blanket hazard insurance policy as described in
Section 4.10 of the TRS Servicing Agreement.

 

“Mortgage Interest Rate” shall mean with
respect to any Mortgage Loan, the annual rate at which interest accrues on such
Mortgage Loan, as adjusted from time to time in accordance with the provisions
of the Mortgage Note in the case of an Adjustable Rate Mortgage Loan.

 

“Mortgage Interest Rate Margin” shall mean with
respect to Adjustable Rate Mortgage Loans, the percentage to be added to the
specified Index identified in the related Note for the purpose of calculating
the applicable Mortgage Interest Rate.

 

“Mortgage Loan” shall mean a first or second
lien, residential, one to four family mortgage loan originated in accordance
with the Underwriting Guidelines, which the Custodian has been instructed to
hold for UBS pursuant to the Custodial Agreement (except in the case of
Mortgage Loans sold pursuant to the Loan Participation Agreement, which shall
be held by Freddie Mac), and which Mortgage Loan includes, without limitation,
(i) a Mortgage Note and

 

1-24

 

related Mortgage
and (ii) all of the Trust’s right, title and interest in and to the Mortgaged
Property covered by such Mortgage.  The
term “Mortgage Loan” includes Cooperative Loans.

 

“Mortgage Loan Absentee Code” shall mean the
mortgage loan absentee code, set forth in Part III of Exhibit F to the
Custodial Agreement, placed by Custodian on a Certification Report to notify
UBS that a Submission Package related to a Mortgage Loan listed on a Request
for Certification is not in Custodian’s possession.

 

“Mortgage Loan Approval Code” shall mean the
mortgage loan approval code, set forth in Part III of Exhibit F to the
Custodial Agreement, placed by Custodian on a Certification Report to notify
UBS that Custodian’s review of the applicable items in a Submission Package is
complete and that such items satisfy all the applicable requirements set forth
in Section 4(a) and Section 4(b).

 

“Mortgage Loan Documents” shall mean the
originals of the Mortgage Notes evidencing the Mortgage Loans.

 

 “Mortgage
Loan Maturity Date” shall mean the final maturity date as set forth on the
Mortgage Note of a Mortgage Loan.

 

“Mortgage Loan Remittance Rate” shall mean,
with respect to each Mortgage Loan, an annual rate of interest equal to the
Mortgage Interest Rate.

 

“Mortgage Loan Schedule” shall have the meaning
given to such term in the REIT Servicing Agreement.

 

“Mortgage Loan Suspension Code” shall mean the
mortgage loan suspension code, set forth in Part III of Exhibit F to the
Custodial Agreement, placed by Custodian on a Certification Report to notify
UBS that Custodian’s review of the Submission Package has determined that one
or more of the documents in the Submission Package are missing, incomplete or
incorrect and/or do not satisfy one or more of the requirements set forth in
Section 4(a) or Section 4(b).

 

“Mortgage Note” shall mean the original
executed promissory note or other original evidence of indebtedness executed by
the respective obligor to evidence such obligor’s indebtedness under the
related Mortgage Loan containing all intervening endorsements, exhibits, riders
and amendments thereto, if any, evidencing a complete chain of ownership from
the originator to the Trust.

 

“Mortgaged Property” shall mean the real
property (including all buildings and fixtures thereon and all additions,
alterations and replacements made at any time with respect to the foregoing)
and all other collateral securing repayment of the debt evidenced by a Mortgage
Note or, in the case of a Cooperative Loan, the related Cooperative Ownership
Interest.

 

“Mortgagee” shall mean the mortgagee or
beneficiary named in the Mortgage and the successors and assigns of such
mortgagee or beneficiary.

 

1-25

 

“MortgageIT Holdings” shall mean MortgageIT
Holdings, Inc., a Maryland corporation.

 

“MortgageIT” shall mean MortgageIT, Inc., a New
York corporation.

 

“Mortgagor” shall mean the obligor on a
Mortgage Note.

 

“Multiemployer Plan” shall mean a multiemployer
plan defined as such in Section 3(37) of ERISA to which contributions have been
or are required to be made by the Trust or any ERISA Affiliate and that is
covered by Title IV of ERISA.

 

“NCUA” shall mean the National Credit Union
Administration, or any successor thereto.

 

“Net Income” shall mean, for any period, and
with respect to a Person, the net income of the Person for such period as
determined in accordance with GAAP.

 

“Net Worth” shall mean, with respect to any
Person, as of any date of determination, all amounts which would be included
under capital on a balance sheet of such Person at such date, determined in
accordance with GAAP, less amounts owing to such Person from Affiliates.

 

“Non-Escrow Mortgage Loan” shall mean any
Mortgage Loan which is not an Escrow Mortgage Loan.

 

“Non-United States Person” shall mean any
Person other than a United States Person.

 

“Nonrecoverable Advance” shall mean any
Servicing Advance previously made or proposed to be made in respect of a
Mortgage Loan or REO Property which, in the good faith judgment of the Servicer
after taking into account other preexisting liens and claims against such
proceeds, will not or, in the case of a proposed advance, would not be
ultimately recoverable from related late payments, Insurance Proceeds or
Liquidation Proceeds on such Mortgage Loan or REO Property as provided herein.

 

“Note” shall have the meaning provided in
Section 2.01(a) of the Note Purchase Agreement.

 

“Noteholder” shall mean, in relation to any
Note, the Person holding the Note, which initially shall be UBS.

 

“Note Documents” shall mean, collectively, the Note
Purchase Agreement, the Loan Sale Agreement, the Notes, the Custodial
Agreement, the Electronic Tracking Agreement and the REIT Servicing Agreement.

 

“Note Purchase” shall have the meaning provided
in Section 2.01(a) of the Note Purchase Agreement.

 

1-26

 

“Note Purchase Agreement” shall mean the Note
Purchase and Security Agreement, dated as of August 4, 2004, among the REIT
Sub-Trust, UBS and each Person party thereto as a Purchaser or a Noteholder
from time to time, as amended, supplemented or otherwise modified from time to
time.

 

“Note Purchase Date” shall mean the date on
which a Note Purchase is made under the Note Purchase Agreement as contemplated
in Section 2 thereto.

 

“Note Purchase Period” shall have the meaning
set forth in Section 2.01(a) of the Note Purchase Agreement.

 

“Note Rate” shall mean the rate of interest
borne by a Mortgage Note.

 

“Note Register” shall mean the register of the
Notes maintained pursuant to Section 3.03 of the Note Purchase Agreement.

 

“Notice of Bailment” shall mean a notice, in
the form of Schedule A to Exhibit B-4 or C-2 to the Custodial Agreement, as
applicable, delivered by Custodian to Takeout Investor in connection with each
delivery to Takeout Investor of the applicable portion of each Submission
Package.

 

“Obligor” shall mean any Person obligated for
payment of a Mortgage Loan or who has transferred or assigned any property
interest to the Master Servicer to secure payment of such Mortgage Loan.

 

“Officer’s Certificate” shall mean, with
respect to MortgageIT or MortgageIT Holdings, a certificate signed by the
Chairman of the Board or the Vice Chairman of the Board or a President or a
Vice President and by the Treasurer or the Secretary or one of the Assistant
Treasurers or Assistant Secretaries of MortgageIT or MortgageIT Holdings, as
applicable, and delivered to UBS as required by the Custodial Agreement.

 

“Opinion of Counsel” shall mean a written
opinion of counsel, who may, without limitation, but subject to the
requirements of the Note Purchase Agreement, be employees or other counsel for
either Depositor which are reasonably acceptable to the Owner Trustee.  The cost of such opinion shall be born by
the Depositors, jointly and severally.

 

“Originator’s Loan Sale Agreement” shall mean
the Master Mortgage Loan Purchase Agreement, dated as of August 4, 2004,
between MortgageIT, as seller, and MortgageIT Holdings, as purchaser, as
amended, supplemented or otherwise modified from time to time.

 

“Other Financing Documents” shall mean,
collectively, the Existing Financing Documents together with the Future
Financing Documents.

 

“OTS” shall mean the Office of Thrift
Supervision, or any successor thereto.

 

“Overestimate Amount” shall have the meaning as
set forth in Section 3.09(e) of the Note Purchase Agreement.

 

1-27

 

“Ownership Interest” shall mean as to any Owner
Trust Certificate, any ownership or security interest in such Owner Trust
Certificate, including any interest in such Owner Trust Certificate as the
Holder thereof and any other interest therein, whether direct or indirect,
legal or beneficial, as owner or as pledgee.

 

“Owner Trust Certificates” or “Certificates”
shall mean, collectively, the REIT Certificates and the TRS Certificates.

 

“Owner Trust Estate” shall mean, collectively,
the REIT Trust Estate and the TRS Trust Estate.

 

“Owner Trustee” shall mean Wilmington Trust
Company or any successor not in its individual capacity but solely in its
capacity as Owner Trustee under the Trust Agreement.

 

“Owner Trustee Fee” shall mean an initial fee,
and an annual administration fee, payable to the Owner Trustee in August of
each calendar year beginning in 2004, each payable to the Owner Trustee as
compensation for the performance of it obligations under the Trust Agreement as
set forth in the separate fee agreement between the Owner Trustee and
MortgateIT, Inc.

 

“Pass-Through Rate” shall mean, with respect to
each Mortgage Loan, the rate at which interest is passed through to UBS which
initially shall be the rate of interest specified on a Funding Confirmation as
the Pass-Through Rate.

 

“Parent Company” shall mean, with respect to
any Person, a corporation or other entity owning at least 50% of the
outstanding shares of voting stock of such Person.

 

“Participation Certificate” shall mean, with
respect to a Freddie Mac Program, a certificate, in the form of Exhibit A to
the Loan Participation Agreement, issued by MortgageIT, evidencing the 100%
undivided ownership interest in the Mortgage Loans that are either (a) set
forth on a copy of the Freddie Mac Form 11 (Mortgage Submission Schedule)
attached to such Participation Certificate or (b) identified on a computer tape
compatible with MIDANET as belonging to the mortgage loan pool described in
such Participation Certificate.

 

“Payee Number” shall mean the code used by
Fannie Mae to indicate the wire transfer instructions that will be used by
Fannie Mae to purchase a Mortgage Loan.

 

“Payment Date” shall mean the 2nd Business Day
of any month commencing in September 2004.

 

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

 

“Percentage Interest” shall mean, with respect
to each Sub-Trust, the percentage interest of beneficial ownership in such
Sub-Trust evidenced by a Owner Trust Certificate as specified on the face
thereof.

 

1-28

 

“Performance Fee” shall mean, with respect to
each Mortgage Loan, an amount, if any, equal to the Discount less the Custodial
Fee, plus the Yield Compensation Adjustment plus or minus any other adjustments
permitted under the Loan Purchase Agreement or the Loan Participation
Agreement, as applicable, which amount, if any, shall be payable to the Trust
by UBS as compensation to the Trust for its services under the Loan Purchase
Agreement or the Loan Participation Agreement, as applicable.

 

“Permitted Transferee” shall mean any
transferee of an Owner Trust Certificate other than a non-United States Person.

 

 “Periodic
Rate Cap” shall mean with respect to each Adjustable Rate Mortgage Loan,
the provision in the Mortgage Note that limits permissible increases and
decreases in the Mortgage Interest Rate on any Adjustment Date.

 

“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 an employee benefit or other
plan established or maintained by the Trust or any ERISA Affiliate and covered
by Title IV of ERISA, other than a Multiemployer Plan.

 

“Post-Default Rate” shall mean, in respect of
the principal amount of each Note outstanding or any other amount under the
Note Purchase Agreement, any Note or any other Note Document that is not paid
when due to UBS or any Noteholder (whether at stated maturity, by acceleration,
by prepayment or otherwise), a rate per annum during the period from and
including the due date to but excluding the date on which such amount is paid
in full equal to six percent (6%) per annum plus the applicable
Eurodollar Rate for each day such Post-Default Rate shall apply.

 

“Prepayment Charge” shall have the meaning
given to such term in the TRS Servicing Agreement.

 

“Pricing Side Letter” shall mean the Pricing
Side Letter, dated as of August 4, 2004, by and among the Trust, MortgageIT and
MortgageIT Holdings and acknowledged and agreed to by UBS.

 

“Prime Rate” shall mean the interest rate equal
to the prime rate of United States money center commercial banks as published
from time to time in The Wall Street Journal.

 

“Principal Prepayment” shall mean any payment
or other recovery of principal on a Mortgage Loan which is received in advance
of its scheduled Due Date, including any prepayment penalty or premium thereon,
which is not accompanied by an amount of interest representing scheduled
interest due on any date or dates in any month or months subsequent to the
month of prepayment.

 

“Program Code” shall mean each of the codes,
set forth in Part I of Exhibit F to the Custodial Agreement, placed by UBS in
the “PROG CODE” column of a Request for

 

1-29

 

Certification
indicating that the Mortgage Loan is being offered by MortgageIT or MortgageIT
Holdings to UBS in a Dry Transaction, Cash Window Transaction or a Conduit
Transaction, as applicable.

 

“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.

 

“Proprietary Lease” shall mean, with respect to
any Cooperative Apartment, a lease or occupancy agreement between a Cooperative
Corporation and a holder of the related Cooperative Ownership Interest.

 

“Prospective Owner” shall have the meaning as
set forth in Section 3.07(a) of the Note Purchase Agreement.

 

“Purchase Advice” shall mean, with respect to
the Note Purchase Agreement or the Loan Purchase Agreement, an approved purchase
list delivered to UBS by the Takeout Investor via electronic or facsimile
transmission, confirming the amount of Takeout Proceeds allocable to each
Mortgage Loan purchased by Takeout Investor.

 

“Purchase Date” shall mean, with respect to a
Mortgage Loan, the date on which UBS purchases such Mortgage Loan from the TRS
Sub-Trust.

 

“Purchase Price” shall have the meaning given
to such term in the Loan Repurchase Agreement, the Loan Purchase Agreement or
the Loan Participation Agreement, as applicable.

 

“Purchaser” shall have the meaning provided in
the heading of the Note Purchase Agreement.

 

“Qualified Institutional Buyer” or “QIB”
shall have the meaning as set forth in Rule 144A of the Securities Act, as
amended from time to time.

 

“Qualified Purchaser” shall mean a “qualified
purchaser” as defined in Section 2(a)(51) of the Investment Company Act.

 

“Rating Agency” shall mean Moody’s, Fitch or
S&P or their respective successors and assigns.  If such agency and its successors are no longer in existence,
“Rating Agency” shall be such nationally recognized statistical rating agency,
or other comparable Person, designated by the Trust, notice of which
designations shall be given to the Servicer. 
References herein to the two highest long-term debt rating categories of
a Rating Agency shall mean “A-2” or better and references herein to the highest
short-term debt rating of a Rating Agency shall mean “Prime-1” and in the case
of any other Rating Agency such references shall mean such rating categories
without regard to any plus or minus.

 

“Receipt” shall mean the Delivery of a Security
to UBS, following notice by the Trust to UBS, not later than 12:00 noon, New
York City time, on the second business day prior to the applicable Settlement
Date, of (a) the amount of any change in the principal amount of the Mortgage
Loans backing such Security, and (b) the Mortgage Loan pool number applicable
to

 

1-30

 

such
Security.  If the Trust fails to so
notify UBS by such time, “Receipt” shall be deemed to have occurred on the
later of (1) the second business day after the date on which the Trust provides
such notification to UBS and (2) the date on which UBS receives Delivery of the
Security.

 

“Recognition Agreement” shall mean, with
respect to any Cooperative Loan, an agreement between the related Cooperative
Corporation and the originator of such Mortgage Loan to establish the rights of
such originator in the related Cooperative Apartment.

 

“Record Date” shall mean, with respect to the
TRS Mortgage Loans, the Business Day immediately preceding the related Payment
Date, and, with respect to the REIT Mortgage Loans, with respect to each
Remittance Date, the last Business Day of the month immediately preceding the
month in which such Remittance Date occurs.

 

“Reference Bank” shall mean the principal
office in London, England, of UBS.

 

“Registration Statement” shall have the meaning
as set forth in Section 2(a)(8) of the Securities Act.

 

“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.

 

“REIT Certificates” shall mean the certificates
evidencing beneficial ownership interest in the REIT Trust Estate issued under
the Trust Agreement.

 

“REIT Collateral” shall mean the meaning given
to such term in Section 5.01(b) of the Note Purchase Agreement.

 

“REIT Mortgage Loans” shall mean the Mortgage
Loans sold by MortgageIT Holdings to the REIT Sub-Trust under the Loan Sale
Agreement or transferred into the REIT Trust Estate under the Trust Agreement,
which are subject to the terms of the Note Purchase Agreement.

 

“REIT Related Limited Recourse Obligation”
shall mean the obligation of MortgageIT Holdings to fund any deficiency in
amounts due from the REIT Sub-Trust and not paid timely when so due by the
Trust on behalf of the REIT Sub-Trust, as a result of the credit performance of
any REIT Mortgage Loan, or as a result of any market movement.

 

“REIT Related Obligation” shall mean any REIT
Related Recourse Obligation, any REIT Related Limited Recourse Obligation and
any REIT Related Trust Obligation.

 

“REIT Related Recourse Obligation” shall mean
any obligation of the Trust acting with respect to the REIT Sub-Trust, or any
obligation of MortgageIT Holdings, which relates to a liability arising from a
breach of any representation, warranty or covenant relating to the REIT
Mortgage Loans, the servicing thereof, or MortgageIT Holdings, including any
related indemnification or reimbursement obligations, as well as any obligation
to pay or reimburse any party for such party’s fees or expenses.  No deficiencies arising as a result of the
credit

 

1-31

 

performance of any
REIT Mortgage Loan, or as a result of any market movement, shall be a “REIT
Related Recourse Obligation”.

 

“REIT Related Trust Obligation” shall mean any
obligation of the REIT Sub-Trust.

 

“REIT Servicer” shall mean GMAC Mortgage Corporation
in its capacity as REIT Servicer under the REIT Servicing Agreement.

 

“REIT Servicing Agreement” shall mean the REIT
Servicing Agreement dated as of August 4, 2004, by and among the Master
Servicer, the REIT Servicer, the REIT Sub-Trust and UBS, as amended,
supplemented or otherwise modified from time to time.

 

“REIT Sub-Trust” shall mean the series (as such
term is used in Section 3806(b)(2) of the Statutory Trust Statute) of the Trust
whose corpus consists of the REIT Trust Estate and alternatively, as the
context may require, a reference to “the REIT Sub-Trust” shall mean the Trust
acting with respect to such series.

 

“REIT Trust Estate” shall mean the corpus of
the REIT Sub-Trust created as of the date of the Trust Agreement and to be
administered under the Trust Agreement, consisting of (i) all the right, title
and interest of the REIT Sub-Trust in and to the REIT Mortgage Loans and all
distributions thereon after the date of the Trust Agreement, (ii) all the
right, title and interest of the REIT Sub-Trust in and to the REIT Servicing
Agreement and any accounts created thereunder, (iii) the rights of the REIT
Sub-Trust to enforce remedies against the Administrator under the
Administration Agreement with respect to the REIT Mortgage Loans (provided that
the REIT Sub-Trust retains the right to give instructions and directions to the
Administrator thereunder), against MortgageIT Holdings, as a seller, under the
Loan Sale Agreement and against MortgageIT Holdings, as a Depositor, under the
Trust Agreement, (iv) all present and future claims, demands, causes and choses
in action in respect of the foregoing, and (v) all proceeds of the foregoing of
every kind and nature whatsoever, including, without limitation, all proceeds
of the conversion thereof, voluntary or involuntary, into cash or other liquid
property, all cash proceeds, accounts receivable, notes, drafts, acceptances,
chattel paper, checks, deposit accounts, rights to payment of any and every
kind and other forms of obligations and receivables, instruments and other
property that at any time constitute all or part of or are included in the
proceeds of the foregoing.

 

“REIT UBS Cash Sub-Account” shall mean the
sub-trust account of the UBS Cash Account established and maintained by the
REIT Sub-Trust at UBS under the conditions set forth in Section 12.16 of
the Trust Agreement.

 

“Release Payment” shall mean the funds referred
to in a Warehouse Lender’s Release or Trust’s Release, as applicable.

 

“REO Disposition” shall mean the final sale by
the Servicer of any REO Property.

 

“REO Disposition Proceeds” shall mean all
amounts received with respect to an REO Disposition pursuant to Section 4.14 of
the TRS Servicing Agreement.

 

1-32

 

“REO Property” shall mean a Mortgaged Property
acquired by the Servicer on behalf of the Trust and the Agent (for the benefit
of the Agent, the Purchasers and the Noteholders) as a result of the
liquidation of a Mortgage Loan.

 

“Reportable Event” shall mean events that have
been exempted from the reporting requirements thereunder by an exemption of
general applicability issued by the Secretary of Labor under Section 110 of
ERISA.

 

“Reporting Date” shall mean the Payment Date.

 

“Repurchase” shall mean, with respect to any
Mortgage Loan, the transaction by which the Trust remits the Repurchase Price
to UBS and simultaneously UBS purchases the Mortgage Loan with a netting of
funds resulting, governed by the terms of the applicable UBS Purchase Program.

 

“Repurchase Amount” shall mean, with respect to
a Mortgage Loan to be repurchased pursuant to the Loan Sale Agreement, a
repurchase price equal to the sum of the principal balance of such Mortgage as
of the date of its purchase thereunder by the related Sub-Trust, plus all
accrued and unpaid interest on such principal balance computed, at the related
interest rate, plus the amount of any unreimbursed Servicing Advances made by
the related Servicer with respect to such Mortgage Loan, less any reductions in
the principal balance of such Mortgage Loan previously remitted in accordance
with the related Servicing Agreement, which repurchase price shall be either
remitted directly to the Agent or deposited in the Blocked Account or any
collection or custodial account maintained by GMAC as sub-servicer (as
appropriate) not later than the Business Day after any Seller learns that the
repurchase is required, after deducting therefrom any amounts received in
respect of such repurchased Mortgage Loan or Mortgage Loans and being held in
the Blocked Account or any collection or custodial account maintained by GMAC
as sub-servicer for future payment to the extent such amounts have not yet been
applied to principal or interest on such Mortgage Loan.

 

“Repurchase Date” shall mean, with respect to
any Mortgage Loan, the date that the Trust remits the Repurchase Price to UBS.

 

“Repurchase Price” shall mean, with respect to
each Mortgage Loan, an amount equal to the Purchase Price plus the Custodial
Fee plus the product of the Purchase Price of the Mortgage Loan, the
Pass-Through Rate and the number of calendar days from the Purchase Date to the
Repurchase Date divided by 360.

 

“Request for Certification” shall mean a report
detailing Loan Identification Data supplied by MortgageIT or MortgageIT
Holdings to UBS, transmitted by UBS to Custodian either via facsimile in the
form of Exhibit E to the Custodial Agreement or transmitted electronically in
an appropriate data layout, regarding all Mortgage Loans being offered for sale
or being pledged by Trust to UBS.

 

“Request for Mortgage Loan Shipment” shall mean
notification provided by the Trust to UBS via facsimile transmission in the
form of Exhibit Q to the Loan Repurchase Agreement, which presents Mortgage
Loans to be delivered by UBS to Freddie Mac.

 

1-33

 

“Request for Note Purchase” shall have the
meaning provided in Section 3.09(a) of the Note Purchase Agreement.

 

“Required Investors” shall have the meaning
given to such term in Section 12.04 of the Note Purchase Agreement.

 

“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.

 

“Residential Dwelling” shall mean, except as
excluded below, any one of the following:

 

a one family dwelling, either attached or detached; or

 

a two to four family dwelling; or

 

a one family dwelling unit in a condominium project
that meets the eligibility requirements of Fannie Mae; or

 

a one family dwelling, either attached or detached, in
a planned unit development; or

 

a manufactured home recognized as a real property.

 

“RESPA” shall mean the Real Estate Settlement
Procedures Act, as amended from time to time.

 

“Responsible Officer” shall mean, as to any Person
other than the Owner Trustee, the chief executive officer or the chief
financial officer of such Person, and as to the Trust, shall also mean any of
the Designated Agents.  With respect to
the Owner Trustee, “Responsible Officer” shall have the meaning given to such
term in the Trust Agreement.

 

“Rewarehousing Loan Purchase Detail” shall mean
a loan purchase detail, prepared and submitted by a Sub-Trust to UBS via
electronic transmission containing the information specified on Exhibit B of
the Loan Repurchase Agreement or Exhibit H of the Note Purchase Agreement, as
applicable (as such information may be amended from time to time by notice from
UBS to such Sub-Trust), in a form acceptable to UBS, regarding the
characteristics of a Mortgage Loan being offered for sale by, such Sub-Trust to
UBS under a Rewarehousing Transaction.

 

“Rewarehousing Transaction” shall mean any sale
of a Mortgage Loan by a Sub-Trust to UBS structured as a Dry Funding wherein
UBS wires the Disbursement Amount pursuant to the Warehouse Lender’s Wire
Instructions or Trust’s Wire Instructions, as applicable, and, with respect to
a TRS Mortgage Loan, subject to an obligation of the TRS Sub-Trust to
repurchase such Mortgage Loan pursuant to the Loan Repurchase Agreement.

 

1-34

 

“Re-warehouse Lender” shall mean any lender
providing financing (including repurchase facilities) to either MortgageIT or
MortgageIT Holdings, in any fractional amount for the purpose of originating or
purchasing Mortgage Loans, which lender has a security interest in such
Mortgage Loans as collateral for the obligations of such correspondent to such
lender; provided, however, that the Re-warehouse Lender shall not
include UBS.

 

“Re-warehouse Lender’s Release” shall mean a
letter, substantially in the form of Exhibit E-3 to the Note Purchase
Agreement (or such other form acceptable to UBS), from a Re-warehouse Lender to
UBS, conditionally releasing all of such Re-warehouse Lender’s right, title and
interest in certain Mortgage Loans identified therein upon receipt of payment
by such Re-warehouse Lender.

 

“Second Mortgage Loan” shall mean a Mortgage
Loan which constitutes a second priority mortgage lien with respect to the
related Mortgaged Property.

 

“Second Mortgage Sub-Limit” shall have the
meaning given to such term in the Pricing Side Letter.

 

“Secured Obligations” shall have the meaning
provided in Section 5.01(c) of the Note Purchase Agreement.

 

“Securities Act of 1933”, “Securities Act”
or “1933 Act” shall mean the Securities Act of 1933, as amended.

 

“Securities Intermediary” shall have the
meaning given to such term in Section 8-102(a)(14) of the Uniform
Commercial Code.

 

“Security” shall mean a modified pass-through
mortgage-backed participation certificate, evidenced by a book-entry credit
made by a Securities Intermediary that is a participant of the Federal Reserve
Bank of New York, issued and guaranteed, with respect to timely payment of
interest and ultimate payment of principal, by Freddie Mac and backed by a pool
of Mortgage Loans, in substantially the principal amount and with substantially
the other terms as specified with respect to such Security in the related
Takeout Commitment, if any.

 

“Security Agreement” shall mean, with respect
to any Cooperative Loan, the agreement between the owner of the related
Cooperative Ownership Interest and the originator of the related Mortgage Note
that defines the terms of the security interest in such Cooperative Ownership
Interest and the related Proprietary Lease, which shall include any riders,
addenda, assumption agreements, or modifications relating thereto.

 

“Servicing Termination Events” shall have the
meaning given to such term in Section 4(d) of the Loan Participation
Agreement.

 

“Servicing Transfer Date” shall mean the
effective date of transfer of servicing from the REIT Servicer to a successor
servicer, as provided in Section 10 of the REIT Servicing Agreement.

 

1-35

 

“Senior Lien” shall mean, with respect to any
Second Mortgage Loan, the first priority mortgage lien with respect to the
related Mortgaged Property.

 

“Servicer” shall mean the TRS Servicer, with
respect to the TRS Mortgage Loans, and the REIT Servicer, with respect to the
REIT Mortgage Loans (and collectively, the “Servicers”).

 

“Servicing Advance” shall have the meaning
given to such term in the TRS Servicing Agreement, with respect to the TRS
Mortgage Loans, and the REIT Servicing Agreement, with respect to the REIT
Mortgage Loans.

 

“Servicing Agreement” shall mean the REIT
Servicing Agreement or the TRS Servicing Agreement, as applicable (and
collectively, the “Servicing Agreements”).

 

“Servicing Compensation” shall mean the
Servicing Fee and other amounts of additional servicing compensation to which
the REIT Servicer is entitled pursuant to Section 5.01 of the REIT Servicing
Agreement.

 

“Servicing Fee” shall mean with respect to each
REIT Mortgage Loan and for any calendar month, an amount equal to one month
interest (or in the event of any payment of interest which accompanies a
Principal Prepayment in full or in part made by the Mortgagor during such
calendar month, interest for the number of days covered by such payment of
interest) at the Servicing Fee Rate on the same principal amount on which
interest on such REIT Mortgage Loan accrues for such calendar month.

 

“Servicing Fee Rate” shall have the meaning
given to such term in the REIT Servicing Agreement.

 

“Servicing File” shall mean, with respect to
each TRS Mortgage Loan, the file retained by the TRS Servicer consisting of
originals or copies of all Mortgage Loan Documents from the Mortgage File.

 

“Servicing Officer” shall mean any officer of
the Servicer involved in or responsible for, the administration and servicing
of the Mortgage Loans whose name appears on a list of servicing officers
furnished by the Servicer to the Trust upon request, as such list may from time
to time be amended.

 

“Servicing Records” shall have the meaning as
set forth in the Servicing Agreement.

 

“Servicing Rights” shall mean any and all of
the following: (a) any and all rights to service the Mortgage Loans; (b) any
payments to or monies received by any Person for servicing the Mortgage Loans;
(c) any late fees, penalties or similar payments with respect to the Mortgage
Loans; (d) all agreements or documents creating, defining or evidencing any
such servicing rights to the extent they relate to the Mortgage Loans and all
rights of such Person thereunder; (e) escrow payments or other similar payments
with respect to the Mortgage Loans and any amounts actually collected by such
Person (through the Servicer or otherwise) with

 

1-36

 

respect thereto
subject to any superior right to such funds held by the Mortgagor; and (f) all
accounts and other rights to payment related to any of the Mortgage Loans.

 

“Servicing Transfer Date” shall have the
meaning given to such term in the TRS Servicing Agreement, with respect to the
TRS Mortgage Loans, and the REIT Servicing Agreement, with respect to the REIT
Mortgage Loans.

 

“Settlement Date” shall mean the date specified
in a Takeout Commitment upon which the related Security is scheduled to be
delivered, against payment, to the specified Takeout Investor.

 

“Settlement Information” shall mean the
Purchase Advice or group of Purchase Advices which shall identify each Mortgage
Loan by the Mortgagor’s name, and of which the aggregate disbursement amount
equals the precise dollar amount of Takeout Proceeds to be received by UBS
under the Loan Purchase Agreement and, when applicable, a Takeout Proceeds
Identification Letter.

 

“Single Employer Plan” shall mean as to any
Person any Plan of such Person which is not a Multiemployer Plan.

 

“Spread Fee Rate” shall mean (i) at any time
after the occurrence of and during the continuation of a Default or an Event of
Default, a rate per annum equal to 6% and (ii) at any other time, a rate per
annum equal to 2%.

 

“Standard & Poor’s” or “S&P”
shall mean Standard & Poor’s Ratings Services, a Division of McGraw-Hill,
Inc., or its successor-in-interest.

 

“Statutory Trust Statute” shall have the
meaning given to such term in Section 2.1 of the Trust Agreement.

 

“Strict Compliance” shall mean the compliance
of MortgageIT and the Mortgage Loans subject to the Loan Participation
Agreement with the requirements of the Freddie Mac Guide and as amended by any
agreements between the TRS Sub-Trust and Freddie Mac, sufficient to enable
MortgageIT to issue and Freddie Mac to issue and guarantee a Security, provided
that until copies of any such agreements between MortgageIT and Freddie Mac
have been provided to UBS by MortgageIT, such agreements shall be deemed, as
between the TRS Sub-Trust and UBS, not to amend the requirements of the Freddie
Mac Guide.

 

“Submission Package” shall mean, with respect
to each Mortgage Loan, a Dry Submission Package, a Cash Window Submission
Package, a Conduit Submission Package or a Conversion Submission Package, as
applicable.

 

“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

 

1-37

 

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-Trust” shall have the meaning set forth in
Section 2.1 of the Trust Agreement and shall pertain to either the REIT
Sub-Trust or the TRS Sub-Trust.

 

“Sub-Trust Estate” shall mean either the REIT
Trust Estate or the TRS Trust Estate, as applicable.

 

“Successor Servicer” shall mean an entity with
the necessary Agency Approvals, as the circumstances may require, and
designated by UBS, in accordance with the applicable Servicing Agreement, to
replace GMAC Mortgage Corporation as REIT Servicer under the REIT Servicing
Agreement and/or to replace MortgageIT as the TRS Servicer under the TRS
Servicing Agreement.

 

“Supplemental Amount” shall mean, with respect
to each Mortgage Loan, an amount equal to (i) the Disbursement Amount less (ii)
the Purchase Price or the amount of the related Note Purchase, as applicable.

 

“Takeout Commitment” shall mean a commitment by
a Takeout Investor in connection with a sale or securitization of one or more
Mortgage Loans or Securities. 
MortgageIT, as Administrator, shall do or cause to be done any and all
things necessary and desirable in order to execute each Takeout Commitment,
pursuant and subject to the terms of the Administration Agreement.

 

“Takeout Investor” shall mean a Person who has
entered into an agreement with MortgageIT to purchase one or more Mortgage
Loans on its own behalf or on behalf of a securitization trust or other
securitization vehicle.

 

“Takeout Proceeds” shall mean the amount of
funds Takeout Investor pays to UBS on a particular Business Day as identified
by the related Settlement Information; provided,
that the amount of such payment shall be calculated without regard to any
set-off, counterclaim or any other adjustment resulting from transactions
between MortgageIT and the Takeout Investor.

 

“Takeout Proceeds Identification Letter” shall
mean a letter in the form of Exhibit K, delivered by the Administrator to
UBS identifying Takeout Proceeds received UBS from an Agency or Takeout
Investor which funds do not relate to Mortgage Loans purchased by UBS from the
Trust.

 

“Tangible Net Worth” shall mean, with respect
to 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)            all amounts owing to such Person
from Affiliates thereof, and

 

1-38

 

(ii)           intangible assets.

 

“Tax Return” shall have the meaning given to
such term in Section 5.6 of the Trust Agreement.

 

“Tax Service Contract” shall mean a
paid-in-full, life-of-loan tax service contract with Fidelity National Tax
Service or another tax service provider acceptable to the Majority Investors in
their sole discretion (exercised in good faith) with respect to a Mortgage
Loan.

 

“Termination Date” shall mean August 3, 2005.

 

“Test Period” shall have the meaning given to
such term in Section 8.12 of the Note Purchase Agreement.

 

“Title Insurance Company” shall mean a title
insurance company acceptable to UBS (from a list to be furnished by the Trust)
in its sole discretion.

 

“Total Indebtedness” shall mean, for any Person
and for any period, the aggregate Indebtedness of such Person during such
period less the amount of any nonspecific balance sheet reserves maintained in
accordance with GAAP.

 

“Trade Assignment” shall mean a letter
substantially in the form of Exhibit B to the Loan Participation
Agreement.

 

“Trade Price” shall mean the trade price
specified in a Takeout Commitment at which a Takeout Investor is obligated to
purchase the Security specified in such Takeout Commitment.

 

“Trade Principal” shall mean, with respect to
any Mortgage Loan, the outstanding principal balance of the Mortgage Loan
multiplied by a percentage equal to the Trade Price.

 

“Transaction Documents” shall mean the Note
Purchase Agreement, the Notes, the Custodial Agreement, the Loan Sale
Agreement, the Originator’s Loan Sale Agreement, the Trust Agreement, the
Servicing Agreements, the Administration Agreement, the Pricing Side Letter,
the Loan Participation Agreement, the Loan Purchase Agreement, the Loan
Repurchase Agreement and the Electronic Tracking Agreement.

 

“Transaction” shall mean any sale of a TRS
Mortgage Loan by the TRS Sub-Trust to UBS pursuant to a Funding Confirmation
under the Loan Repurchase Agreement or Loan Purchase Agreement, as applicable.

 

“Transfer” shall mean any direct or indirect
transfer or other form of assignment of any Owner Trust Certificate.

 

“TRS Certificates” shall mean the certificates
evidencing beneficial ownership interest in the TRS Sub-Trust Estate issued
hereunder.

 

1-39

 

“TRS Collateral” shall mean each of the
following items or types of property, whether now owned or hereafter acquired,
now existing or hereafter created and wherever located:  TRS Mortgage Loans, all mortgage loan
documents (including, without limitation, all promissory notes, all servicing
records, servicing agreements and any other collateral pledged or otherwise
relating to such TRS Mortgage Loans), together with all files, documents,
instruments, surveys, certificates, correspondence, appraisals, computer
programs, computer storage media, accounting records and other books and
records relating thereto, all mortgage guaranties and insurance (issued by
governmental agencies or otherwise) and any mortgage insurance certificate or
other document evidencing such mortgage guaranties or insurance relating to any
TRS Mortgage Loan, the Participation Certificates, the Securities issued as
contemplated by the Loan Purchase Agreement and all proceeds thereof, all
Servicing Rights relating to the TRS Mortgage Loans, any servicing accounts
established pursuant to any servicing agreement and all amounts on deposit
therein, from time to time, all purchase agreements (including the Loan Sale
Agreement) or other agreements or contracts relating to, constituting, or
otherwise governing, any or all of the foregoing to the extent they relate to
the TRS Mortgage Loans including the right to receive principal and interest
payments with respect to the TRS Mortgage Loans and the right to enforce such
payments, the TRS UBS Cash Sub-Account and all monies from time to time on
deposit in the TRS UBS Cash Sub-Account, the Blocked Account and any other
account under the TRS Servicing Agreement, the Takeout Commitments, all
“general intangibles,” “accounts,” “chattel paper” and “investment property” as
defined in the UCC relating to or constituting any and all of the foregoing,
and any and all replacements, substitutions, distributions on or proceeds of
any and all of the foregoing, free and clear of all adverse claims.

 

“TRS Mortgage Loans” shall mean the Mortgage
Loans sold by MortgageIT to the TRS Sub-Trust under the Loan Sale Agreement,
which may become subject to the terms of the Loan Repurchase Agreement, the
Loan Purchase Agreement and/or the Loan Participation Agreement.

 

“TRS Related Limited Recourse Obligations”
shall mean the obligation of MortgageIT to fund any deficiency in amounts due
from the Trust on behalf of the TRS Sub-Trust and not paid timely when so due
by the Trust on behalf of the TRS Sub-Trust, as a result of the credit
performance of any TRS Mortgage Loan or as a result of any market movement.

 

“TRS Related Obligation” shall mean any TRS
Related Recourse Obligation, any TRS Related Limited Recourse Obligation and
any TRS Related Trust Obligation.

 

“TRS Related Recourse Obligation” shall mean
any obligation of the Trust on behalf of the TRS Sub-Trust, or any obligation
of MortgageIT, which relates to a liability arising from a breach of any
representation, warranty or covenant relating to the TRS Mortgage Loans, the
servicing thereof, or MortgageIT, including any related indemnification or
reimbursement obligations, as well as any obligation to pay or reimburse any
party for such party’s fees or expenses. 
No deficiencies arising as a result of the credit performance of any TRS
Mortgage Loan or as a result of any market movement shall be a “TRS Related
Recourse Obligation”.

 

“TRS Related Trust Obligation” shall mean any
obligation of the TRS Sub-Trust.

 

1-40

 

“TRS Servicer” shall mean MortgageIT, in its
capacity as TRS Servicer under the TRS Servicing Agreement.

 

“TRS Servicing Agreement” shall mean that certain
servicing agreement dated as of August 4, 2004, by and among the TRS Servicer,
the TRS Sub-Trust and UBS, as amended, supplemented or otherwise modified from
time to time.

 

“TRS Sub-Trust” shall mean the series (as such
term is used in Section 3806(b)(2) of the Statutory Trust Statute) of the Trust
whose corpus consists of the TRS Trust Estate and alternatively, as the context
may require, a reference to “the TRS Sub-Trust” shall mean the Trust acting
with respect to such series.

 

“TRS Trust Estate” shall mean the corpus of the
trust created as of the Closing Date and to be administered hereunder,
consisting of (i) all the right, title and interest of the TRS Sub-Trust in and
to the TRS Mortgage Loans and all distributions thereon after the Closing Date,
(ii) all the right, title and interest of the TRS Sub-Trust in and to the TRS
Servicing Agreement and any accounts created thereunder and under the Blocked
Account Agreement, (iii) the rights of the TRS Sub-Trust to enforce remedies
against the Administrator under the Administration Agreement with respect to
the TRS Mortgage Loans (provided that the TRS Sub-Trust retains the right to
give instructions and directions to the Administrator thereunder), against
MortgageIT, as a Seller, under the Loan Sale Agreement and against MortgageIT,
as a Depositor, under the Trust Agreement, (iv) all present and future claims,
demands, causes and choses in action in respect of the foregoing, and (v) all
proceeds of the foregoing of every kind and nature whatsoever, including,
without limitation, all proceeds of the conversion thereof, voluntary or
involuntary, into cash or other liquid property, all cash proceeds, accounts
receivable, notes, drafts, acceptances, chattel paper, checks, deposit
accounts, rights to payment of any and every kind and other forms of
obligations and receivables, instruments and other property that at any time
constitute all or part of or are included in the proceeds of the foregoing.

 

“TRS UBS Cash Sub-Account” shall mean the
sub-trust account of the UBS Cash Account established and maintained by the TRS
Sub-Trust at UBS under the conditions set forth in Section 12.16 of the
Trust Agreement.

 

“Trust” shall mean MortgageIT SPV I, a Delaware
statutory trust, established under the Trust Agreement.

 

“Trust Agent” shall mean any agent or attorney
of the Owner Trustee or the Trust appointed by the Owner Trustee to execute one
or more of the trust or powers hereunder, and shall include the Administrator.

 

“Trust Agreement” shall mean the Trust
Agreement dated as of August 4, 2004, between MortgageIT, MortgageIT Holdings,
and Wilmington Trust Company, as Owner Trustee, as amended, supplemented or
otherwise modified from time to time.

 

“Trust Documents” shall mean, collectively, the
Trust Agreement, the Owner Trust Certificates, the Note Purchase Agreement, the
Note, the Custodial Agreement, the Servicing Agreements, the Loan Sale
Agreement, the Originator’s Loan Sale Agreement, the Loan Purchase Agreement,
the Loan Repurchase Agreement, the Loan Participation Agreement,

 

1-41

 

the Blocked
Account Agreement, the Electronic Tracking Agreement, the Pricing Side Letter
and the Administration Agreement, as each of them may be amended, supplemented
or otherwise modified from time to time.

 

“Trust Estate” shall mean, collectively, the
REIT Trust Estate and the TRS Trust Estate.

 

“Trust’s Release” shall have the meaning given
to such term in the Note Purchase Agreement, the Loan Repurchase Agreement, the
Loan Purchase Agreement or the Custodial Agreement, as applicable.

 

“Trust’s Wire Instructions” shall have the
meaning given to such term in the Loan Repurchase Agreement, the Loan Purchase
Agreement or the Custodial Agreement, as applicable.

 

“UBS” shall mean UBS Real Estate Securities
Inc. and its successors.

 

“UBS Cash Account” shall mean a separate cash
account held by UBS under the conditions set forth in Section 12.16 of the
Trust Agreement, which shall consist of the REIT UBS Cash Sub-Account and the
TRS UBS Cash Sub-Account.

 

“UBS Cash Account Adjustment” shall mean an
adjustment to the UBS Cash Account Balance pursuant to a UBS Cash Account
Adjustment Notice.

 

“UBS Cash Account Adjustment Notice” shall mean
the cash account adjustment notice, in the form of Exhibit L to the Note
Purchase Agreement to be used by UBS to notify the related Sub-Trust of any
adjustments to the UBS Cash Account Balance.

 

“UBS Cash Account Balance” shall mean as of any
date, the net amount of funds in the REIT UBS Cash Sub-Account or the TRS UBS
Cash Sub-Account, as applicable, on such date.

 

“UBS Cash Account Interest Accrual” shall mean
the simple interest calculation posted on the last Business Day of each month
resulting from the product of each Business Day’s UBS Cash Account Balance and
UBS Cash Account Interest Rate.

 

“UBS Cash Account Interest Rate” shall mean
with respect to each month, the average opening federal funds rate for such
month or such other rate agreed to by the Trust and UBS.  The opening federal funds rate on a Business
Day shall be counted as the UBS Cash Account Interest Rate until the next
Business Day.

 

“UBS Purchase Program” shall mean UBS’s Conduit
Funding Program or MBS Swap Funding Program, as applicable.

 

“UBS’s Payment” shall mean the amount set forth
on the Request for Certification in the “RELEASE PAYMENT” column.

 

1-42

 

“UBS’s Wire Instructions to Custodian” shall
mean the wire instructions delivered by UBS to Custodian, in the form of
Exhibit I-2 to the Custodial Agreement, executed by UBS, receipt of which has
been acknowledged by Custodian specifying the wire address where all funds
received in accordance with UBS’s Wire Instructions to Trust shall be
transferred by Custodian.

 

“UBS’s Wire Instructions to Trust” shall mean
the wire instructions, set forth on Exhibit I-1 to the Custodial Agreement,
specifying the account which shall be used for the payment of all amounts due
and payable by a Sub-Trust to UBS hereunder.

 

“UCC Financing Statement” shall mean a
financing statement executed and filed pursuant to the Uniform Commercial Code,
as in effect in the relevant jurisdiction.

 

“Underwriter” shall mean any party, including
but not limited to a mortgage loan pool insurer, who underwrites a Mortgage
Loan prior to its purchase by UBS.

 

“Underwriter’s Form” shall mean a Fannie Mae /
Freddie Mac Form 1008/1077, HUD 92900WS, HUD92900.4, VA Form 26-6393, VA Form
26-1866, or a mortgage loan pool insurance certificate, as applicable,
completed by an Underwriter with respect to a Mortgage Loan, indicating that
such Mortgage Loan complies with its underwriting requirements.

 

“Underwriting Guidelines” shall mean the
underwriting guidelines delivered by MortgageIT to UBS on or prior to the date
hereof and as may be supplemented from time to time thereafter.

 

“Unidentified/Suspension Mortgage Loan Directive”
shall mean a Delivery Directive or a Hold Directive, as applicable.

 

“Unidentified Mortgage Loans List” shall mean a
list of Mortgage Loans for which Custodian has received the related Submission
Packages from Trust, MortgageIT or MortgageIT Holdings but which have not been
identified by UBS in a Request for Certification.  Such list shall include, with respect to each Mortgage Loan, the
information set forth in Exhibit L to the Custodial Agreement.

 

“Uniform Commercial Code” shall mean the
Uniform Commercial Code as in effect in any applicable jurisdiction.

 

“United States Person” shall mean a citizen or
resident of the United States, a corporation, partnership or other entity
created or organized in, or under the laws of, the United States or any
political subdivision thereof (except, in the case of a partnership, to the
extent provided in regulations), or an estate whose income is subject to United
States federal income tax regardless of its source, or a trust other than a
“foreign trust” within the meaning of Section 7701(a)(31) of the Code.

 

“Voting Rights” shall mean, with respect to
each Sub-Trust, that portion of the voting rights of all Owner Trust
Certificates for such Sub-Trust which is allocated to any particular Owner
Trust Certificate based on the percentage interest of such Owner Trust
Certificate out of the total interests in such Sub-Trust.

 

1-43

 

“VA” shall mean the Department of Veterans
Affairs or any successor thereto.

 

“Warehouse Gestation Lender” shall mean, with
respect to each MERS Designated Mortgage Loan, the Person named on the MERS®
System as the warehouse gestation lender pursuant to the MERS Procedures
Manual.

 

“Warehouse Lender” shall mean any lender
providing financing (including repurchase facilities) to either MortgageIT or
MortgageIT Holdings in any fractional amount for the purpose of originating or
purchasing Mortgage Loans, which lender has a security interest in such
Mortgage Loans as collateral for the obligations of MortgageIT or MortgageIT
Holdings to such lender; provided, however, that the Warehouse
Lender shall not include UBS.

 

“Warehouse Lender’s Release” shall have the
meaning given to such term in any of the Facility Agreements or the Custodial
Agreement, as applicable.

 

“Warehouse Lender’s Wire Instructions” shall
have the meaning given to such term in any of the Facility Agreements or the
Custodial Agreement, as applicable.

 

“Warehousing Transaction” shall mean any sale
of a Mortgage Loan by the REIT Sub-Trust to the Agent structured as a wet
funding wherein the Agent wires the purchase price of each Note Purchase in the
form of immediately available funds to the account(s) identified by the REIT
Sub-Trust in the related Request for Note Purchase for the payoff to a
Warehouse Lender.

 

“Wet Funding” shall mean a Closing Transaction
initiated by the delivery by a Sub-Trust, either via electronic or facsimile
transmission to UBS, of a Closing Loan Purchase Detail and a pledge by such
Sub-Trust to UBS to deliver to Custodian a Dry Submission Package or Conduit
Submission Package by the Scheduled Collateral Receipt Date.

 

“Wet-Ink Funding Detail” shall mean a Wet-Ink
Funding Detail, prepared by the REIT Sub-Trust and delivered by the Trust to
the Agent via electronic transmission containing all information specified on Exhibit
H to the Note Purchase Agreement (as such information may be amended from
time to time by notice from the Agent to the Trust) in a form acceptable to the
Agent, regarding the characteristics of a Mortgage Loan which is proposed to be
funded as a Wet-Ink Mortgage Loan on or as of the Desired Funding Date.

 

“Wet-Ink Sub-Limit” shall have the meaning
ascribed to such term in the Pricing Side Letter.

 

“Wet Mortgage Loan” or “Wet-Ink Mortgage
Loan” shall mean a Mortgage Loan for which Custodian, on behalf of UBS,
does not have physical possession of the related complete Submission Package
and which the related Sub-Trust has agreed to sell to UBS all right, title and
interest in, to and under such Mortgage Loan, free and clear of all Liens,
pledges, charges, encumbrances or security interests of any nature pursuant to
the Loan Repurchase Agreement or to pledge to the Agent for the benefit of the
Agent and the Noteholders pursuant to Section 3.09(e) of the Note Purchase
Agreement.

 

“Whole Loan Purchase Program” shall mean a
program pursuant to the terms of the Custodial Agreement and the Loan
Repurchase Agreement.

 

1-44

 

“Wire Fee” shall mean with respect to each
disbursement relating to a Closing Transaction under the Loan Repurchase
Agreement or the Note Purchase Agreement or a Transaction under the Loan
Purchase Agreement, as applicable, a fee payable to UBS by the related
Sub-Trust as set forth in the Funding Confirmation.

 

“Withdrawal/Deposit Notice” shall have the
meaning given to such term in the Note Purchase Agreement, the Loan Repurchase
Agreement or the Loan Purchase Agreement, as applicable.

 

“Yield Compensation Adjustment” shall have the
meaning given to such term in the Loan Purchase Agreement or the Loan
Participation Agreement, as applicable.

 

1-45

 

Schedule 2

 

REPRESENTATIONS
AND WARRANTIES

 

PRIME; 1st and 2nd Liens

MortgageIT represents and
warrants to the TRS Sub-Trust, with respect to each TRS Mortgage Loan and as of
the related Purchase Date, and MortgageIT Holdings represents and warrants to
the REIT Sub-Trust, with respect to each REIT Mortgage Loan and as of the
related Note Purchase Date, that:

 

(i)                    Mortgage Loans as
Described.  The Mortgage Loan and
the related Funding Confirmation conform to the terms of this Agreement and the
representations and warranties set forth herein are, and the Loan Purchase
Detail is, complete, true and correct in all respects;

 

(ii)                   Payments Current.  All payments required to be made up to the
related Purchase Date or Note Purchase Date, as applicable, for the Mortgage
Loan under the terms of the Mortgage Note have been made and credited.  No payment required under the Mortgage Loan
is delinquent.  With respect to each
Monthly Payment since origination of the related Mortgage Loan, such Monthly
Payment shall be made with respect to the Mortgage Loan on or within 30 days of
its Due Date, all in accordance with the terms of the related Mortgage Note;
and there has been no delinquency, exclusive of any period of grace, in any
payment by the Mortgagor thereunder during the last twelve months;

 

(iii)                  No Outstanding Charges.  There are no defaults in complying with the
terms of the Mortgage securing the Mortgage Loan, and all taxes, governmental
assessments, insurance premiums, water, sewer and municipal charges, leasehold
payments or ground rents which previously became due and owing have been paid,
or an escrow of funds has been established in an amount sufficient to pay for
every such item which remains unpaid and which has been assessed but is not yet
due and payable.  Except for (A) payments
in the nature of escrow payments and (B) interest accruing from the date of the
Mortgage Note or date of disbursement of the Mortgage Loan proceeds, whichever
is greater to the day which precedes by one month the Due Date of the first
installment of principal and interest, including, without limitation, taxes and
insurance payments, neither 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
earlier, to the day which precedes by one month the Due Date of the first
installment of principal and interest;

 

(iv)                  Original Terms Unmodified.  The terms of the Mortgage Note and Mortgage
have not been impaired, waived, altered or modified in any respect, except by a
written instrument which has been recorded, if necessary to protect the
interests of the Trust and which has been delivered to the Trust.  The substance of any such waiver, alteration
or modification has been approved by the title insurer, to the extent required
by the policy, and its terms are reflected on the Funding Confirmation.  No Mortgagor has been released, in whole or
in part, except in

 

2-1

 

connection with an assumption agreement approved by
the title insurer, to the extent required by the policy, and which assumption
agreement is part of the Credit File delivered to the Trust and the terms of
which are reflected in the Funding Confirmation;

 

(v)                   No Defenses.  The Mortgage Loan is not subject to any
right of rescission, set-off, counterclaim or defense, including, without
limitation, the defense of usury, nor will the operation of any of the terms of
the Mortgage Note or the Mortgage, or the exercise of any right thereunder,
render either the Mortgage Note or the Mortgage unenforceable, in whole or in
part, or subject to any right of rescission, set-off, counterclaim or defense,
including, without limitation, the defense of usury, and no such right of
rescission, set-off, counterclaim or defense has been asserted with respect
thereto, and no Mortgagor was a debtor in any state or federal bankruptcy or
insolvency proceeding at, or subsequent to, the time the Mortgage Loan was
originated;

 

(vi)                  Hazard Insurance.  Pursuant to the terms of the Mortgage, all
buildings or other improvements upon the Mortgaged Property are insured by a an
insurer acceptable to Fannie Mae and Freddie Mac against loss by fire, hazards
of extended coverage and such other hazards as are customary in the area where
the Mortgaged Property is located pursuant to insurance policies conforming to
the requirements of Fannie Mae and Freddie Mac in an amount not less than the
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 that required by Fannie Mae and Freddie Mac.  If the Mortgaged Property is in an area
identified in the Federal Register by the Federal Emergency Management Agency
as having special flood hazards (and such flood insurance has been made
available) a flood insurance policy meeting the requirements of the current
guidelines of the Federal Flood Insurance Administration is in effect which
policy conforms to the requirements of Fannie Mae and Freddie Mac.  All individual insurance policies contain a
standard mortgagee clause naming such Seller and its successors and assigns as
mortgagee, and all premiums thereon have been paid and such policies may not be
reduced, terminated or cancelled without 30 days’ prior written notice to the
mortgagee.  The Mortgage obligates the
Mortgagor thereunder to maintain the hazard insurance policy at the Mortgagor’s
cost and expense, and on the Mortgagor’s failure to do so, authorizes the
holder of the Mortgage to obtain and maintain such insurance at such
Mortgagor’s cost and expense, and to seek reimbursement therefor from the
Mortgagor.  Where required by state law
or regulation, the Mortgagor has been given an opportunity to choose the
carrier of the required hazard insurance, provided the policy is not a “master”
or “blanket” hazard insurance policy covering the common facilities of a
planned unit development.  The hazard
insurance policy is the valid and binding obligation of the insurer, is in full
force and effect, and will be in full force and effect and inure to the benefit
of the Trust upon the consummation of the transactions contemplated by this
Agreement.  Such Seller has not engaged
in, and has no knowledge of the Mortgagor’s or any subservicer’s having engaged
in, any act or omission which would impair the coverage of any such policy, the
benefits of the endorsement provided for therein, or the validity and binding
effect of either, including, without limitation, no unlawful fee, commission,
kickback or other unlawful compensation or value of any kind has been or will
be received, retained or realized by any attorney, firm or other Person, and no
such unlawful items have been received, retained or realized by such Seller;

 

2-2

 

(vii)                 Compliance with Applicable
Laws.  Any and all requirements of
any federal, state or local law, including, without limitation, usury,
truth-in-lending, real estate settlement procedures, consumer credit
protection, equal credit opportunity, fair housing, predatory and abusive
lending laws, or disclosure laws applicable to the Mortgage Loan have been
complied with, the consummation of the transaction contemplated hereby will not
involve the violation of any such laws or regulations and such Seller shall
maintain in its possession, available for the Trust’s inspection, and shall
deliver to Purchaser, upon demand, 
evidence of compliance with all such requirements;

 

(viii)                No Satisfaction of Mortgage.  The Mortgage has not been satisfied,
canceled, subordinated or rescinded, in whole or in part, and the Mortgaged
Property has not been released from the lien of the Mortgage, in whole or in
part, nor has any instrument been executed that would effect any such release,
cancellation, subordination or rescission. 
Such 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 such Seller waived any default
resulting from any action or inaction by the Mortgagor;

 

(ix)                   Location and Type of
Mortgaged Property.  The Mortgaged
Property is a single parcel of fee simple property or a leasehold estate with
respect to real property located in jurisdictions in which the use of leasehold
estates for residential properties is a widely accepted practice, the real
property located in the state identified in the Funding Confirmation except
that with respect to real property located in jurisdictions in which the use of
leasehold estates for residential properties is a widely-accepted practice, the
mortgaged property may be a leasehold estate and consists of a single parcel of
real property with a detached single family residence erected thereon, or a
two- to four-family dwelling, or an individual residential condominium unit in
a low-rise condominium project, or an individual unit in a planned unit
development, and that no residence or dwelling is (i) a mobile home or (ii) a
manufactured home, except as provided below; provided, however, that any
condominium unit or planned unit development shall meet the eligibility
requirements of Fannie Mae and Freddie Mac and shall conform with MortgageIT’s
underwriting guidelines. In the case of any Mortgaged Properties that are
manufactured homes (a “Manufactured Home Mortgage Loan”), (i) such
Manufactured Home Mortgage Loan conforms with the applicable Fannie Mae or
Freddie Mac requirements regarding mortgage loans related to manufactured
dwellings, (ii) the related manufactured dwelling is permanently affixed to the
land, (iii) the related manufactured dwelling and the related land are subject
to a Mortgage properly filed in the appropriate public recording office and
naming such Seller as mortgagee, (iv) the applicable laws of the jurisdiction
in which the related Mortgaged Property is located will deem the manufactured
dwelling located on such Mortgaged Property to be a part of the real property
on which such dwelling is located, and (v) such Manufactured Home Mortgage Loan
is (x) a qualified mortgage under Section 860G(a)(3) of the Code and (y)
secured by manufactured housing treated as a single family residence under
Section 25(e)(10) of the Code.  No
portion of the Mortgaged Property is used for commercial purposes; provided,
that Mortgaged Properties which contain a home office shall not be considered
as being used for commercial purposes as long as the Mortgaged Property has not
been altered for commercial purposes and is not storing any chemicals or raw
materials other than those commonly used for homeowner repair, maintenance
and/or household purposes;

 

2-3

 

(x)                    Valid First or Second
Lien.  With respect to any Mortgage
Loan other than a Cooperative Loan, the Mortgage is a valid, subsisting
enforceable and perfected first or second lien on the Mortgaged Property,
including all buildings on the Mortgaged Property and all installations and
mechanical, electrical, plumbing, heating and air conditioning systems located
in or annexed to such buildings, and all additions, alterations and
replacements made at any time with respect to the foregoing.  The lien of the Mortgage is subject only to:

 

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

 

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

 

(3)           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

 

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

 

Any security agreement,
chattel mortgage or equivalent document related to and delivered in connection
with the Mortgage Loan establishes and creates a valid, subsisting and
enforceable (A) first lien and first priority perfected security interest with
respect to each First Lien Mortgage Loan, or (B) second lien and second
priority perfected security interest with respect to each Second Lien Mortgage
Loan, in either case, on the property described therein and such Seller has
full right to sell and assign the same to the Trust.  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; With respect to any Cooperative Loan, the related Security Agreement
is a valid, subsisting and enforceable first priority security interest on the
related shares issued by the Cooperative Corporation securing the Mortgage
Note, subject only to (1) liens of the related Cooperative Corporation for
unpaid assessments representing the Mortgagor’s pro rata share of the
related Cooperative Corporation’s payments for its blanket mortgage, current
and future real property taxes, insurance premiums, maintenance fees and other assessments
to which like collateral is commonly subject and (2) other matters to which
like collateral is commonly subject which do not materially interfere with the
benefits of the security interest intended to be provided by such Security
Agreement.

 

(xi)                   Validity of Mortgage Loan
Documents.  The Mortgage Note, the
Mortgage and any other agreement executed and delivered by a Mortgagor or
guarantor, if applicable, in connection with the Mortgage Loan are genuine, and
each is the legal, valid and

 

2-4

 

binding obligation of the maker thereof enforceable in
accordance with its terms.  All parties
to the Mortgage Note and the Mortgage and any other related agreement had legal
capacity to enter into the Mortgage Loan and to execute and deliver the
Mortgage Note and the Mortgage and any other related agreement, and the
Mortgage Note and the Mortgage and any other related agreement have been duly
and properly executed by such parties. 
The documents, instruments and agreements submitted for loan
underwriting were not falsified and contain no untrue statement of material
fact or omit to state a material fact required to be stated therein or
necessary to make the information and statements therein not misleading.  No fraud, error, negligence,
misrepresentation or omission of fact with respect to a Mortgage Loan has taken
place on the part of such Seller, the Mortgagor, any appraiser, any builder or
developer, or any other party involved in the origination or servicing of the
Mortgage Loan or in the application of any insurance in relation to such
Mortgage Loan.  Such Seller has reviewed
all of the documents constituting the Credit File and has made such inquiries
as it deems necessary to make and confirm the accuracy of the representations
set forth herein;

 

(xii)                  Full Disbursement of
Proceeds.  The Mortgage Loan has
been closed and the proceeds of the Mortgage Loan have been fully disbursed and
there is no requirement for future advances thereunder, and any and all requirements
as to completion of any on-site or off-site improvement and as to disbursements
of any escrow funds therefor have been complied with.  All costs, fees and expenses incurred in making or closing the
Mortgage 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;

 

(xiii)                 Ownership.  Such Seller is the sole legal, beneficial
and equitable owner of record and, except with respect to MERS Designated
Mortgage Loans, holder of the Mortgage Loan. 
The Mortgage Loan is not assigned or pledged, and such Seller has good,
indefeasible and marketable title thereto, and has full right to transfer and
sell the Mortgage Loan therein to the Trust free and clear of any encumbrance,
equity, participation interest, lien, pledge, charge, claim or security
interest, and has full right and authority subject to no interest or
participation of, or agreement with, any other party, to sell and assign each
Mortgage Loan pursuant to this Agreement and following the sale of each
Mortgage Loan, the Trust will own such Mortgage Loan free and clear of any
encumbrance, equity, participation interest, lien, pledge, charge, claim or
security interest;

 

(xiv)                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)
(1) in compliance with any and all applicable licensing requirements of the
laws of the state wherein the Mortgaged Property is located, and (2) organized
under the laws of such state, or (3) qualified to do business in such state, or
(4) federal savings and loan associations or national banks having
principal offices in such state, or (5) not doing business in such state;

 

(xv)                 Title Insurance.  Except with respect to any Cooperative Loan,
the Mortgage Loan is covered by an ALTA lender’s title insurance policy (which,
in the case of an Adjustable Rate Loan has an adjustable rate mortgage
endorsement in the form of ALTA 6.0 or 6.1) or other generally acceptable form
of policy of insurance acceptable to Fannie Mae or Freddie Mac, issued by a
title insurer acceptable to Fannie Mae or Freddie Mac and qualified to

 

2-5

 

do business in the jurisdiction where the Mortgaged
Property is located, insuring such Seller, its successors and assigns, as to
the first priority lien of the Mortgage in the original principal amount of the
Mortgage Loan, and against any loss by reason of the invalidity or
unenforceability of the lien resulting from the provisions of the Mortgage
providing for adjustment in the Mortgage Interest Rate and Monthly Payment,
subject only to the exceptions contained in clauses (a), (b), and (c), and with
respect to each Second Lien Mortgage Loan clause (d) of Paragraph (x) of this
Schedule 1.  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.  Such Seller, its
successors and assigns is the sole insured of such lender’s title insurance
policy, and such lender’s title insurance policy is in full force and effect
and will be in force and effect upon the consummation of the transactions
contemplated by this Agreement.  No
claims have been made under such lender’s title insurance policy, and no prior
holder or servicer of the Mortgage, including such 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 such Seller;

 

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

 

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

 

(xviii)              Location of Improvements; No
Encroachments.  All improvements
which were considered in determining the Appraised Value of the Mortgaged
Property lay wholly within the boundaries and building restriction lines of the
Mortgaged Property and no improvements on adjoining properties encroach upon
the Mortgaged Property.  No improvement

 

2-6

 

located on or being part of the Mortgaged Property is
in violation of any applicable zoning and building law, ordinance or
regulation;

 

(xix)                 Origination: Payment Terms.  The Mortgage Loan was originated by
MortgageIT, Inc. or by a mortgagee approved by the Secretary of Housing and
Urban Development pursuant to Sections 203B and 211 of the National Housing Act
or a savings and loan association, a savings bank, a commercial bank or similar
banking institution which is supervised and examined by a Federal or State
authority.  No Mortgage Loan contains
terms or provisions which would result in negative amortization. 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 the
Adjustable Rate Mortgage Loans, on each Interest Rate Adjustment Date to equal
the applicable index plus the Gross Margin (rounded up or down to nearest
0.125%), subject to the Maximum Mortgage Interest Rate.  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 thirty years from commencement of
amortization.  In the case of a Balloon
Loan, monthly payments are based on a fifteen (15) or thirty (30) year
amortization schedule, as set forth in the related Mortgage Note, and a final
monthly payment substantially greater than the preceding monthly payment which
is sufficient to amortize the remaining principal balance of the Balloon Loan
and to pay interest at the related Mortgage Interest Rate.  Interest on each Mortgage Loan is calculated
on the basis of a 360-day year consisting of twelve 30-day months.  The Mortgage Note has the terms identified
in the applicable Funding Confirmation. 
The due date of the first payment under the Mortgage Note is no more
than 60 days from the date of the Mortgage Note.  No Mortgage Loan is a Convertible Mortgage Loan;

 

(xx)                  Customary Provisions.  The Mortgage contains customary and
enforceable provisions such as to render the rights and remedies of the holder
thereof adequate for the realization against the Mortgaged Property of the
benefits of the security provided thereby, including, (i) in the case of a
Mortgage designated as a deed of trust, by trustee’s sale, and
(ii) otherwise by judicial foreclosure. 
Upon default by a Mortgagor on a 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 the Mortgagor which would
interfere with the right to sell the Mortgaged Property at a trustee’s sale or
the right to foreclose the Mortgage subject to applicable federal and state
laws and judicial precedent with respect to bankruptcy and right of redemption;

 

(xxi)                 Original Issue Discount.  The Mortgage Loan was originated free of any
“original issue discount” with respect to which the owner of the Mortgage Loan
could be deemed to have income pursuant to Sections 1271 et seq. of the Code;

 

(xxii)                Conformance with Underwriting
Guidelines and Agency Standards. 
The Mortgage Loan was underwritten in accordance with MortgageIT’s
underwriting guidelines in effect at the time the Mortgage Loan was originated.
The Mortgage Note and Mortgage are on

 

2-7

 

forms acceptable to Fannie Mae or Freddie Mac and such
Seller has not made any representations to a Mortgagor that are inconsistent
with the mortgage instruments used;

 

(xxiii)               Occupancy of the 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 and fire underwriting certificates, have been made or
obtained from the appropriate authorities. 
Such Seller has not received notification from any governmental
authority that the Mortgaged Property is in material non-compliance with such
laws or regulations, is being used, operated or occupied unlawfully or has
failed to have or obtain such inspection, licenses or certificates, as the case
may be.  Such Seller has not received
notice of any violation or failure to conform with any such law, ordinance,
regulation, standard, license or certificate. 
The Mortgagor represented at the time of origination of the Mortgage
Loan that the Mortgagor would occupy the Mortgaged Property as the Mortgagor’s
primary residence;

 

(xxiv)               No Additional Collateral.  The 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
referred to in Paragraph (x) above;

 

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

 

(xxvi)               Acceptable Investment.  The Mortgagor is not in bankruptcy or
insolvent and such Seller has no knowledge of any circumstances or conditions
with respect to the Mortgage, the Mortgaged Property, the Mortgagor or the
Mortgagor’s credit standing that can reasonably be expected to cause the
Mortgage Loan to be an unacceptable investment, cause the Mortgage Loan to
become delinquent, or adversely affect the value or marketability of the
Mortgage Loan.  As used herein, “knowledge”
shall be deemed to include (A) knowledge of facts or conditions of which such
Seller (including, without limitation, any of its directors, officers, agents
or employees) either is actually aware or should have been aware under the
circumstances with the exercise of reasonable care, due diligence and
competence in discharging such Seller’s duties, (B) all matters of public
record, and (C) the making of any representation or warranty that is inaccurate
or incomplete, unless such Seller can demonstrate otherwise.  The term “due diligence” means the care
which such Seller would exercise in obtaining and verifying information for a
loan in which such Seller would be entirely dependent on the property securing
such loan and on the borrower’s creditworthiness as security to protect its
investment;

 

(xxvii)              Delivery of Mortgage Loan
Documents.  The Mortgage Note, the
Mortgage, the Assignment of Mortgage and any other documents required to be
delivered by such Seller under this Agreement have been delivered to the Trust
or its Custodian.  Such Seller is in
possession of a complete, true and accurate mortgage file in compliance with
Section 2 of the Custodial Agreement, except for such documents the originals
of which have been delivered to the Trust or the Custodian;

 

2-8

 

(xxviii)             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 Mortgagee thereunder;

 

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

 

(xxx)                Consolidation of Future
Advances.  Any future advances made
prior to the related Purchase Date or Note Purchase Date, as applicable, have
been consolidated with the outstanding principal amount secured by the
Mortgage, and the secured principal amount, as consolidated, bears a single
interest rate and single repayment term. 
The lien of the Mortgage securing the consolidated principal amount 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;

 

(xxxi)               Mortgaged Property Undamaged.  There is no proceeding pending or threatened
for the total or partial condemnation of the Mortgaged Property.  The Mortgaged Property is free of damage and
waste that may affect adversely the value of the Mortgaged Property as security
for the Mortgage Loan or the use for which the premises were intended and each
Mortgaged Property is in good repair;

 

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

 

(xxxiii)             Appraisal.  Such 
Seller has delivered to the Trust an appraisal of the Mortgaged Property
signed prior to the approval of the Mortgage application by a appraiser
qualified under Fannie Mae and Freddie Mac guidelines who (i) is licensed in
the state where the Mortgaged Property is located, (ii) has no interest, direct
or indirect, in the Mortgaged Property or in any Mortgage Loan or the security
therefore, and (iii) does not receive compensation that is

 

2-9

 

affected by the approval or disapproval of the
Mortgage Loan.  The appraisal shall have
been made within one hundred and eighty (180) days of the origination of the
Mortgage Loan, be completed in compliance with the Uniform Standards of
Professional Appraisal Practice, and all applicable federal, state and local
laws and regulations, including but not limited to the relevant provisions of
the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.  If the appraisal was made more than one
hundred and twenty (120) days before the origination of the Mortgage Loan, such
Seller shall have received and delivered to the Trust a recertification of the
appraisal;

 

(xxxiv)             Servicemembers’ Civil Relief Act.  The Mortgagor has not notified such Seller,
and such Seller has no knowledge of any relief requested or allowed to the
Mortgagor under the Servicemembers’ Civil Relief Act;

 

(xxxv)              Environmental Matters.  The Mortgaged Property is free from any and
all toxic or hazardous substances, including, without limitation, asbestos, and
there exists no violation of any local, state or federal environmental law,
rule or regulation.  There is no pending
action or proceeding directly involving any Mortgaged Property of which such
Seller is aware in which compliance with any environmental law, rule or
regulation is an issue; and to the best of such Seller’s knowledge, nothing
further remains to be done to satisfy in full all requirements of each such
law, rule or regulation constituting a prerequisite to use and enjoyment of
said property;

 

(xxxvi)             No Construction Loans. No
Mortgage Loan was made in connection with (a)  facilitating the trade-in
or exchange of a Mortgaged Property or (b) the construction or rehabilitation
of a Mortgaged Property;

 

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

 

(xxxviii)           Value of Mortgage Property.  Such Seller has no knowledge of any
circumstances existing that should reasonably be expected to adversely affect
the value or the marketability of the Mortgaged Property or the Mortgage Loan
or to cause the Mortgage Loan to prepay during any period materially faster or
slower than the Mortgage Loans originated by MortgageIT generally;

 

(xxxix)              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 adjustable rate mortgage loans in
the case of Adjustable Rate Mortgage Loans and fixed rate mortgage loans in the
case of Fixed Rate Mortgage Loans.  Such
Seller shall maintain such statement in the mortgage file;

 

2-10

 

(xl)                   UBS Purchase Program.  MortgageIT originated such Mortgage Loan in
accordance with the requirements of a UBS Purchase Program;

 

(xli)                  Servicing Agreement. No
servicing agreement other than the Servicing Agreements with Company have been
entered into with respect to the Mortgage Loan, or any such servicing agreement
has been terminated (without any termination fee) and there are no
restrictions, contractual or governmental, which would impair the ability of
Purchaser or Purchaser’s designees from servicing the Mortgage Loan;

 

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

 

(xliii)                Predatory Lending
Regulations; High Cost Loans.  None
of the Mortgage Loans are (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 law or ordinance comparable to
HOEPA;

 

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

 

(xlv)                Insurance.  Such Seller has caused or will cause to be
performed any and all acts required to preserve the rights and remedies of the
Trust 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 Trust;

 

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

 

(xlvii)              Prepayment Fee.  Except as set forth on the related Loan
Purchase Detail, none of the Mortgage Loans are subject to a prepayment
fee.  With respect to each Mortgage Loan
that has a prepayment fee feature, each such prepayment fee is enforceable and
will be enforced by such Seller for the benefit of the Trust, and each
prepayment fee is permitted pursuant to federal, state and local law and is
only payable (i) with respect to a Mortgage Loan originated prior to October 1,
2002, during the first 5 years of the term of the Mortgage Loan, and (ii) with
respect to a Mortgage Loan originated on or after October 1, 2002, during the
first 3 years of the term of the Mortgage Loan.  Each such prepayment fee is in an amount equal to the maximum
amount permitted under applicable law. 
With respect to any Mortgage Loan that contains a provision permitting imposition
of a prepayment fee upon a prepayment prior to maturity: (i) prior to the
loan’s origination, the Mortgagor agreed to such prepayment fee in exchange for
a monetary benefit, including but not limited to a rate or fee reduction, (ii)
prior to the loan’s origination, the Mortgagor was offered the option of
obtaining a Mortgage Loan that did not

 

2-11

 

require payment of such a prepayment fee, (iii) the
prepayment fee is disclosed to the Mortgagor in the loan documents pursuant to
applicable state and federal law, and (iv) notwithstanding any state or federal
law to the contrary, such Seller shall not impose such prepayment fee in any
instance when the mortgage debt is accelerated as the result of the Mortgagor’s
default in making the loan payments;

 

(xlviii)             Flood Certification Contract.  Such Seller shall have obtained a paid in
full, life of loan, transferable flood certification contract for each Mortgage
Loan and shall assign all such contracts to the Trust.

 

(xlix)                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 such Seller
has not financed nor does it own directly or indirectly, any equity of any form
in the Mortgaged Property or the Mortgagor;

 

(l)                    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 such Seller or any Affiliate or correspondent
thereof;

 

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

 

(lii)                  Endorsements.  Each Mortgage Note has been endorsed by such
Seller for its own account and not as a fiduciary, trustee, trustor or
beneficiary under a trust agreement;

 

(liii)                 LTV, PMI Policy.  No Mortgage Loan has an LTV greater than
100% or, with respect to an FHA Loan, the applicable Agency approved
limits.  Each Mortgage Loan with an LTV
in excess of 80% is and will be insured as to payment defaults by a PMI Policy,
unless otherwise provided for in MortgageIT’s underwriting guidelines,
acceptable to Fannie Mae and in an amount of coverage meeting the requirements
set forth with respect to such insurance policies in the Fannie Mae Guides
until such Mortgage Loan is no longer required under the terms of the Fannie
Mae Guides to be so insured.  All provisions
of such PMI Policy have been and are being complied with, such policy is valid
and remains in full force and effect, and all premiums due thereunder have been
paid.  No action, inaction, or event has
occurred and no state of facts exists that has, or will result in the exclusion
from, denial of, or defense to coverage by the PMI Policy.  Any Mortgage Loan subject to a PMI Policy
obligates the Mortgagor thereunder to maintain the PMI Policy and to pay all
premiums and charges in connection therewith. 
The Mortgage Interest Rate for each Mortgage Loan as set forth on the
mortgage loan schedule is net of any such insurance premium;

 

(liv)                 Accuracy of Information.  All information provided to the Trust by
such Seller with respect to the Mortgage Loans is accurate in all material
respects;

 

(lv)                  Single Premium Credit
Insurance.  No Mortgagor was
required to purchase any credit life, disability, accident or health insurance
product as a condition of

 

2-12

 

obtaining the extension of credit.  No Mortgagor obtained a prepaid single
premium credit life, disability, accident or health insurance policy in
connection with the origination of the Mortgage Loan; None of the proceeds of
the Mortgage Loan were used to purchase or finance single-premium credit life
or disability insurance policies or any comparable insurance;

 

(lvi)                 Ground Leases.  The Mortgage Loan is not secured by the
Mortgagor’s interest in a Ground Lease except to the extent permitted pursuant
to paragraph (ix) of this Schedule 1, and if such Mortgage Loan is secured by
the Mortgagor’s interest in a Ground Lease:

 

(1)           The Ground Lease or a memorandum
thereof has been duly recorded, the Ground Lease permits the interest of the
lessee thereunder to be encumbered by the related Mortgage, does not restrict
the use of the Mortgaged Property by the lessee or its successors and assigns
in a manner that would adversely affect the security provided by the related
Mortgage, and there has not been a material change in the terms of the Ground
Lease since its recordation, with the exception of written instruments which
are part of the related mortgage file;

 

(2)           The Ground Lease is not subject to
any liens or encumbrances superior to, or of equal priority with, the related
Mortgage, other than the related ground lessor’s related fee interest;

 

(3)           The Ground Lease either (i) has
a term which extends not less than ten years beyond the maturity date of the
related Mortgage Loan or (ii) grants the lessee the option to extend the term
of the lease for a period (in the aggregate) which exceeds ten years beyond the
maturity date of the related Mortgage Loan;

 

(4)           The Ground Lease is valid, in good
standing, and in full force and effect;

 

(5)           The lessee is not in default under
any provision of the lease;

 

(6)           The mortgagee under the Mortgage Loan
is given at least 30 days’ notice of any default and an opportunity to cure any
defaults under the Ground Lease or to take over the Mortgagor’s rights under
the Ground Lease;

 

(7)           The Ground Lease does not contain any
default provisions that could give rise to forfeiture or termination of the
Ground Lease except for the non-payment of the Ground lease rents; and

 

(8)           The Ground Lease provides that the
leasehold can be transferred, mortgaged and sublet an unlimited number of times
either without restriction or on payment of a reasonable fee and delivery of
reasonable documentation to the lessor.

 

2-13

 

(lvii)                Origination Date.   With respect to each REIT Mortgage Loan as
of the related Note Purchase Date, the Origination Date is no earlier than
ninety (90) days prior to the date such REIT Mortgage Loan was first purchased
by Purchaser.  With respect to each TRS
Mortgage Loan as of the related Purchase Date, the Origination Date is no
earlier than ninety (90) days prior to the date such TRS Mortgage Loan was
first sold to the Trust hereunder;

 

(lviii)               No Exception.  Custodian has not noted any material
exceptions on a Certification Report (as defined in the Custodial Agreement)
with respect to the Mortgage Loan which would materially and adversely affect
the Mortgage Loan or Purchaser’s ownership of the Mortgage Loan, unless
consented to by Purchaser;

 

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

 

(lx)                   MIP Insurance Certificate.
With respect to each Mortgage Loan insured by HUD or the VA, such Seller has
received the related insurance certificate from the applicable agency
evidencing such insurance within 60 days of the origination date of such
Mortgage Loan;

 

(lxi)                  MIP Documents. With
respect to each Mortgage Loan insured by HUD or the VA, such Seller has
submitted all documents required by the applicable Agency to insure such
Mortgage Loan (regardless of whether such documents are required to be
contained in the related Document File) within 30 days of the origination date
of such Mortgage Loan;

 

(lxii)                 MIP Access. With respect
to each Mortgage Loan insured by HUD or the VA, such Seller has provided access
to Purchaser to the lender number, password or any other information that may
be required by the applicable Agency or otherwise for Purchaser to verify that
the related MIP payments have been made;

 

(lxiii)                Borrower Credit Files.
With respect to each Mortgage Loan, such Seller has fully and accurately
furnished complete information on the related borrower credit files to Equifax,
Experian and Trans Union Credit Information Company, in accordance with the
Fair Credit Reporting Act and its implementing regulations, on a monthly basis
and such Seller for each Mortgage Loan will furnish, in accordance with the
Fair Credit Reporting Act and its implementing regulations, accurate and
complete information on its borrower credit files to Equifax, Experian, and
Trans Union Credit Information Company, on a monthly basis;

 

(lxiv)               Lending Practices. 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 Fannie Mae Guides;

 

(lxv)                Georgia Fair Lending Act.
No Mortgage Loan is a “High Cost Home Loan” as defined in the Georgia Fair
Lending Act, as amended (the “Georgia Act”).  No

 

2-14

 

Mortgage Loan secured by real property or a
manufactured home located in the State of Georgia was originated (or modified)
on or after October 1, 2002 through and including March 6, 2003;

 

(lxvi)               New York “high-cost home loans”.
No Mortgage Loan (a) is secured by property located in the State of New York;
(b) had an unpaid principal balance at origination of $300,000 or less, and (c)
has an application date on or after April 1, 2003, the terms of which Mortgage
Loan equal or exceed either the APR or the points and fees threshold for
“high-cost home loans”, as defined in Section 6-L of the New York State Banking
Law;

 

(lxvii)              Loan Products. No Mortgagor
was encouraged or required to select a Mortgage Loan product offered by the
Mortgage Loan’s originator which is a higher cost product designed for less
creditworthy borrowers, unless at the time of the Mortgage Loan’s origination,
such Mortgagor did not qualify taking into account credit history and debt to
income ratios for a lower cost credit product then offered by the Mortgage
Loan’s originator or any affiliate of the Mortgage Loan’s originator.  If, at the time of loan application, the
Mortgagor may have qualified for a lower cost credit product than offered by
any mortgage lending affiliate of the Mortgage Loan’s originator, the Mortgage
Loan’s originator referred the Mortgagor’s application to such affiliate for
underwriting consideration;

 

(lxviii)             Underwriting Methodology.
The methodology used in underwriting the extension of credit for each Mortgage
Loan employs objective mathematical principles which relate the Mortgagor’s
income, assets and liabilities to the proposed payment and such underwriting
methodology does not rely on the extent of the Mortgagor’s equity in the collateral
as the principal determining factor in approving such credit extension.  Such underwriting methodology confirmed that
at the time of origination (application/approval) the Mortgagor had a
reasonable ability to make timely payments on the Mortgage Loan;

 

(lxix)                Disclosure of Fees. All
fees and charges (including finance charges) and whether or not financed,
assessed, collected or to be collected in connection with the origination and
servicing of each Mortgage Loan have been disclosed in writing to the Mortgagor
in accordance with applicable state and federal law and regulation;

 

(lxx)                 Disclosure of Points.
All points and fees related to each Mortgage Loan were disclosed in writing to
the related Mortgagor in accordance with applicable state and federal law and
regulation.  Except in the case of a
Mortgage Loan in an original principal amount of less than $60,000 which would
have resulted in an unprofitable origination, no related Mortgagor was charged
“points and fees” (whether or not financed) in an amount greater than 5% of the
principal amount of such loan, such 5% limitation is calculated in accordance
with Fannie Mae’s anti-predatory lending requirements as set forth in the
Fannie Mae Guides;

 

(lxxi)                Credit Reporting Data.
Such Seller will transmit full-file credit reporting data for each Mortgage
Loan pursuant to Fannie Mae Guide Announcement 95-19 and for each Mortgage
Loan, such Seller agrees it shall report one of the following statuses each
month as follows: new origination, current, delinquent (30-, 60-, 90-days,
etc.), foreclosed, or charged-off;

 

2-15

 

(lxxii)               Arkansas Home Loan Protection
Act. No Mortgage Loan is a “High Cost Home Loan” as defined in the Arkansas
Home Loan Protection Act effective August 16, 2003 (Act 1340 or 2003);

 

(lxxiii)              Kentucky “High Cost Home Loan”.
No Mortgage Loan is a “High Cost Home Loan” as defined in the Kentucky
high-cost loan statute effective June 24, 2003 (Ky. Rev. Stat. Section
360.100);

 

(lxxiv)              Nevada “home loan”. No
Mortgage Loan secured by property located in the State of Nevada is a “home
loan” as defined in the Nevada Assembly Bill No. 284;

 

(lxxv)               Oakland Home Loans. No
Mortgage Loan originated in the City of Oakland is subject to the City of
Oakland, California Ordinance 12361, the “Ordinance”) as a home loan;

 

(lxxvi)              Oklahoma Home Ownership and
Equity Protection Act. No Mortgage Loan is a subsection 10 mortgage under
the Oklahoma Home Ownership and Equity Protection Act;

 

(lxxvii)             Illinois High Risk Home Loan Act.
No Mortgage Loan is a “High-Risk Home Loan” (as defined in Illinois High Risk
Home Loan Act 93-561);

 

(lxxviii)            New Jersey Home Ownership
Security Act. No Mortgage Loan is a “High-Cost Home Loan” under the New
Jersey Home Ownership Security Act of 2002 (the “NJ Act”); and each Mortgage
Loan subject to the NJ Act is considered under the NJ Act as, either, a (1)
purchase money Home Loan, (2) purchase money Covered Loan, or (3) a rate/term
refinance Home Loan;

 

(lxxix)              New Mexico Home Loan Protection
Act. No Mortgage Loan is a “High-Cost Home Loan” as defined in the New
Mexico Home Loan Protection Act effective January 1, 2004 (N.M. Stat. Ann. §§
58-21A-1 et seq.);

 

(lxxx)               Los Angeles “high-cost
refinance home loan”. No Mortgage Loan originated in the city of Los
Angeles, California on or after the effective date of the Los Angeles,
California anti-predatory lending ordinance is a “high-cost refinance home
loan” under such ordinance;

 

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

 

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

 

(lxxxiii)            Maine Home Loans. No Mortgage
Loan that is secured by property located within the State of Maine meets the
definition of a (i) “high-rate, high-fee” mortgage loan under Article VIII,
Title 9-A of the Maine Consumer Credit Code or (ii) “High-Cost Home Loan” as
defined under the Maine House Bill 383 L.D. 494, effective as of September 13,
2003; and

 

2-16

 

(lxxxiv)            Arbitration. No Mortgagor
agreed to submit to arbitration to resolve any dispute arising out of or
relating in any way to the Mortgage Loan transaction.

 

(lxxxv)             Shares Issued by Cooperative
Corporation.  With respect to a
Mortgage Loan that is a Cooperative Loan, the shares issued by the Cooperative
Corporation that constitute a portion of the related Cooperative Ownership Interest
and that are pledged as security for the Mortgage Loan are held by a person as
a tenant-stockholder (as defined in Section 216 of the Code) in a
Cooperative Corporation (as defined in Section 216 of the Code).

 

(lxxxvi)            Cooperative Loan.  With respect to a Mortgage Loan that is a
Cooperative Loan, the security instruments create a valid, enforceable,
subsisting, first priority and perfected security interest in the related
cooperative shares securing the related cooperative note, subject only to (x) the
lien of the related Cooperative Corporation for unpaid assessments representing
the Mortgagor’s pro rata share of
payments for a blanket mortgage, if any, current and future real property
taxes, insurance premiums, maintenance fees and other assessments to which like
collateral is commonly subject and (y) other matters to which like collateral
is commonly subject and which do not materially interfere with the benefits of
the security intended to be provided. 
If such Mortgage Loan is a Cooperative Loan, to such Seller’s knowledge,
the Mortgage Note relating to the underlying Mortgaged Property is not in
default.

 

Defined Terms

 

In addition to terms
defined elsewhere in the Loan Sale Agreement, the following terms shall have
the following meanings when used in this Schedule 2:

 

“Adjustable Rate
Mortgage Loan” shall mean an Adjustable Rate Mortgage Loan purchased
pursuant to this Agreement.

 

“Appraised Value”
shall mean (i) With respect to any First Lien Mortgage Loan, the value of the
related Mortgaged Property based upon the appraisal made, if any, for the
originator at the time of origination of the Mortgage Loan or the sales price
of the Mortgaged Property at such time of origination, whichever is less; provided,
however, that in the case of a refinanced Mortgage Loan, such value is
based solely upon the appraisal made, if any, at the time of origination of
such refinanced Mortgage Loan, and (ii) with respect to any Second Lien
Mortgage Loan, the value, determined pursuant to MortgageIT’s underwriting guidelines,
of the related Mortgaged Property as of the origination date of the Second Lien
Mortgage Loan.

 

“Assignment of
Mortgage” shall mean an assignment of the Mortgage, notice of transfer or
equivalent instrument in recordable form, sufficient under the laws of the
jurisdiction wherein the related Mortgaged Property is located to reflect the
transfer of the Mortgage.

 

“Balloon Loan”
shall mean a Mortgage Loan identified on the related Loan Purchase Detail as a
balloon mortgage loan.

 

“Best’s”  shall mean Best’s Key Rating Guide, as the
same shall be amended from time to time.

 

2-17

 

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

 

“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 lesser of the Appraised Value
of the Mortgage Property as of the origination date or the purchase price of
the Mortgaged Property.

 

“Convertible Mortgage
Loan” A Mortgage Loan that by its terms and subject to certain conditions
contained in the related Mortgage or Mortgage Note allows the Mortgagor to
convert the adjustable Mortgage Interest Rate on such Mortgage Loan to a fixed
Mortgage Interest Rate.

 

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

 

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

 

“Fannie Mae” shall
mean Fannie Mae and its successors in interest.

 

“Fannie Mae Guides”  shall mean the Fannie Mae Sellers’ Guide and
the Fannie Mae Servicers’ Guide and all amendments or additions thereto.

 

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

 

“Freddie Mac”
shall mean Freddie Mac and its successors in interest.

 

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

 

“Ground Lease”
shall mean the original executed instrument evidencing a leasehold estate with
respect to a Mortgaged Property.

 

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

 

“LTV” shall mean,
with respect to any Mortgage Loan, the ratio (expressed as a percentage) of the
outstanding principal amount of the Mortgage Loan as of the cut-off date
(unless otherwise indicated), to the Appraised Value of the Mortgaged Property.

 

2-18

 

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

 

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

 

“Mortgage Interest
Rate” shall mean with respect to each Mortgage Loan, the annual rate at
which interest accrues on such Mortgage Loan from time to time in accordance
with the provisions of the related Mortgage Note.

 

“Origination Date”
shall mean with respect to each Mortgage Loan, the date on which the applicable
lien was placed on the related Mortgaged Property.

 

“PMI Policy” shall
mean a policy of primary mortgage guaranty insurance issued by a Qualified
Insurer.

 

“Qualified Insurer”
shall mean an insurance company duly qualified as such under the laws of the
states in which the Mortgaged Properties are located, duly authorized and
licensed in such states to transact the applicable insurance business and to
write the insurance provided, approved as an insurer by Fannie Mae and Freddie
Mac and whose claims paying ability is rated in the highest rating category by
any of the rating agencies with respect to primary mortgage insurance and in
the two highest rating categories by Best’s with respect to hazard and flood
insurance.

 

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

 

2-19

 

Schedule 3

 

SELLERS’ FORMER NAMES AND CURRENT OR FORMER TRADE NAMES,

FICTITIOUS NAMES, ASSUMED NAMES AND OR “DOING BUSINESS AS” NAMES

 

1.             MortgageIT, Inc.

 

	
   

  	
  k.

  	
  Prior Name: 
  None

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  Trade Name:

  	
  MIT

  
	
   

  	
   

  	
   

  	
  MIT Lending

  
	
   

  	
   

  	
   

  	
  IPI

  
	
   

  	
   

  	
   

  	
  IPI Skyscraper

  
	
   

  	
   

  	
   

  	
  IPI Skyscraper Mortgage

  

 

2.             MortgageIT
Holdings, Inc.

 

	
   

  	
  l.

  	
  Prior Name: 
  None

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  Trade Name: 
  None

  

 

3-1

 

Schedule 4

 

UCC FILING JURISDICTIONS

[SELLER’S JURISDICTION OF ORGANIZATION]

 

4-1

 

Annex
1

 

SELLER’S OFFICER’S CERTIFICATE

 

I,
                        ,
hereby certify that I am the duly elected
                        
of [Seller], a
[               ]
corporation (the “Seller”), and further certify, on behalf of the Seller
as follows:

 

1.             Attached
hereto as Attachment I is a true and correct copy of the articles of
incorporation and by-laws of the Seller as are in full force and effect on the
date hereof.

 

2.             Attached
hereto as Attachment II is a Certificate of Good Standing of the Seller, issued
by the Secretary of the State of
[            ]
dated [DATE]. No event has occurred since [DATE] which has affected the good
standing of the Seller under the laws of the State of [            ].

 

3.             Each
person who, as an officer or attorney-in-fact of the Seller, signed the
Transaction Documents (as defined in the Definitions List attached as Schedule
1 to the Loan Sale Agreement dated as of August 4, 2004, among MortgageIT,
Inc., MortgageIT Holdings, Inc. and MortgageIT SPV I on behalf of the REIT
Sub-Trust (the “Definitions List”) to which the Seller is a party and
any other document delivered prior hereto or on the date hereof in connection
with transactions contemplated in such Transaction Documents, was, at the
respective times of such signing and delivery, and is as of the date hereof,
duly elected or appointed, qualified and acting as such officer or
attorney-in-fact, and the signatures of such persons appearing on such documents
are their genuine signatures.

 

4.             Attached
hereto as Attachment III is a true and correct copy of the resolutions duly
adopted by the board of directors of the Seller on [DATE] (the “Resolutions”)
with respect to the authorization and approval of the transactions contemplated
in such Transaction Document; said Resolutions have not been amended, modified,
annulled or revoked and are in full force and effect on the date hereof.

 

5.             All
of the representations and warranties of the Seller contained in such Transaction
Documents, were true and correct in all material respects as of the date of
each such Transaction Documents, and are true and correct in all material
respects as of the date hereof and Seller has complied with all of the
agreements and satisfied all of the conditions on its part to be performed or satisfied at or prior to the date
hereof.

 

6.             Seller
has performed all of its duties and has satisfied all the material conditions
on its part to be performed or satisfied pursuant to such Transactions Documents,
on or prior to the date hereof.

 

7.             There
are no actions, suits or proceedings pending or, to my knowledge, threatened,
against or affecting Seller which, if adversely determined either individually

 

A-1-1

 

or in the aggregate, would adversely affect Seller’s
obligations under such Transaction Documents.

 

8.             No
proceedings that could result in the liquidation or dissolution of Seller are
pending or contemplated.

 

9.             Incumbency
of Officers.  The below named
persons are duly authorized to sign on behalf of Seller, holding the respective
office below set opposite his or her name, and the signature below set opposite
his or her name is his or her genuine signature.

 

	
  Name

  	
   

  	
  Office

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

All capitalized terms used herein and not otherwise defined shall have
the meaning assigned to them in the Definitions List.

 

A-1-2

 

IN WITNESS WHEREOF, I have hereunto signed my name and
affixed the seal of the Seller.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
  ,

  	
   

  	
   

  	
   

  
	
   

  	
  [Seal]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title: Secondary Marketing Director

  
											

 

I,
                           ,  [Assistant] Secretary of
                     ,
hereby certify that
                        
and
                        
are the duly elected, qualified and acting Chief Financial Officer and
Secondary Marketing Director, respectively, of [Seller] and that the signature
appearing above is the genuine signature of such person.

 

IN WITNESS WHEREOF, I have hereunto signed my name.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  	
  ,

  	
   

  	
   

  	
   

  
	
   

  	
  [Seal]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title: 

  
											

 

A-1-3

 

Annex 2

 

SELLER’S
OFFICER’S CERTIFICATE

 

Each of
                        
and
                        ,
hereby certify that they are the duly elected Chief Financial Officer and
Secondary Marketing Director, respectively, of [Seller], a
[            ]
corporation (the “Seller”), and further certify on behalf of the Seller
as follows:

 

1.             This
officer’s certificate is made in connection with the Loan Sale Agreement (the “Agreement”),
dated as of August 4, 2004, by and between the Seller, [other Seller] (together
with the Seller, the “Sellers”) and MortgageIT SPV I acting with respect
to the REIT Sub-Trust/TRS Sub-Trust (the “Purchaser”).

 

2.             The
attached report details the Seller’s complete inventory of mortgage loans that
are in the application, locked and closed stages (the “Pipeline”)
together with the Interest Rate Protection Agreements entered into by the
Seller associated with the Pipeline.

 

3.             The
attached report (including the mark-to-market calculations included therein) is
a complete, true and accurate representation which fairly presents such hedging
arrangements, and with respect to all reports delivered to the Trust following
the date of the most recently delivered officer’s certificate from Seller
(prior to this one), such reports (including the mark-to-market calculations
included therein) were complete, true and accurate representations which fairly
presented such hedging arrangements as of the date thereof.

 

4.             The
execution by the undersigned evidences each such officer’s determination that
such hedging agreements adequately protect Seller from interest rate
fluctuations.

 

The Chief Financial Officer further certifies on
behalf of the Seller as follows:

 

5.             The
consolidated Tangible Net Worth of the Sellers is not less than the sum of (i)
$175,000,000 and (ii) 90% of capital contributions made since August 4, 2004.

 

6.             The
ratio of the Sellers’ consolidated Total Indebtedness to Tangible Net Worth is
[            ],
which is not greater than 20:1.

 

7.             Seller’s
Net Income for the last three consecutive fiscal months, before income taxes
for such Test Period and distributions made during such Test Period is
$[               ],
which is not less than $1.00.

 

8.             Neither
Seller nor its partners, principal shareholders and owners, guaranty, endorse
or are otherwise in any way responsible for any obligations of Seller or any
other Person.

 

9.             There
has been no change in the articles of incorporation and by-laws of Seller since
the date such documents were provided to Purchaser and such documents are in
full force and effect on the date hereof.

 

A-2-1

 

10.           No
event has occurred since the date of the last good standing certificate of
Seller provided to Purchaser which has affected the good standing of Seller under
the laws of the State of
[            ].

 

11.           All
of the representations and warranties of Seller contained in the Transaction
Documents to which it is a party are true and correct in all material respects
as of the date hereof and Seller has complied with the Transaction Documents to
which it is a party and satisfied all of the conditions on its part to be
performed or satisfied at or prior to the date hereof.

 

12.           Seller
has performed all of its duties and has satisfied all the material conditions on
its part to be performed or satisfied pursuant to the Transaction Documents to
which it is a party on or prior to the date hereof.

 

13.           There
are no actions, suits or proceedings pending or, to my knowledge, threatened,
against or affecting Seller which, if adversely determined either individually
or in the aggregate, would adversely affect Seller’s obligations under the
Transaction Documents to which it is a party.

 

14.           No
proceedings that could result in the liquidation or dissolution of Seller are
pending or contemplated.

 

15.           To
the best of my knowledge after due inquiry and investigation, no Event of
Default has occurred prior to the date hereof or is occurring on the date
hereof.

 

All capitalized terms used herein and not otherwise
defined shall have the meaning assigned to them in the Agreement.

 

A-2-2

 

IN WITNESS WHEREOF, I have hereunto signed my name and
affixed the seal of the Seller.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
  ,

  	
   

  	
   

  	
   

  
	
   

  	
  [Seal]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [SELLER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Chief Financial Officer

  	
   

  

 

IN WITNESS WHEREOF, only with respect to items 1
through 4 of this Seller’s Officer’s Certificate, I have hereunto signed my
name and affixed the seal of the Seller.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  	
  ,

  	
   

  	
   

  	
   

  
	
   

  	
  [Seal]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [SELLER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Secondary Marketing Director

  	
   

  

 

 

I,
                           ,  [Assistant] Secretary of [Seller], hereby
certify that
                        
and
                        
are the duly elected, qualified and acting Chief Financial Officer and
Secondary Marketing Director, respectively, of [Seller] and that the signature
appearing above is the genuine signature of such person.

 

IN WITNESS WHEREOF, I have hereunto signed my name.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
  ,

  	
   

  	
   

  	
   

  
	
   

  	
  [Seal]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [SELLER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title: 

  	
   

  	
   

  

 

A-2-3

 

Annex 3

 

FORM OF FINANCIAL STATEMENT FOOTNOTE

 

MORTGAGEIT SPV I (the “Trust”) is a Delaware
statutory trust which has been established by [MORTGAGEIT, INC./MORTGAGEIT
HOLDINGS, INC.] (the “Company”) as a special-purpose warehouse finance
subsidiary of the Company.  The Trust
has agreed to [issue and] sell to UBS Real Estate Securities Inc. (“UBS”)
[mortgage loans (“Mortgage Loans”)/ notes backed by mortgage loans (the
“Notes”)].

 

Under the legal agreements which document the
[issuance and] sale of the [Mortgage Loans/Notes]:

 

•                  all
assets which are from time to time owned by the Trust are legally owned by the
Trust and not by the Company.

 

•                  the
Trust is a legal entity separate and distinct from the Company and all other
affiliates of the Company.

 

•                  the
assets of the Trust are legally assets only of the Trust, and are not legally
available to the Company and all other affiliates of the Company or their
respective creditors, for pledge to other creditors or to satisfy the claims of
other creditors.

 

•                  none
of the Company or any other affiliate of the Company is legally liable on the
debts of the Trust, except for an amount limited to 10% of the greater of (i)
the total principal amount of Notes then outstanding under the Note Purchase
Agreement plus the aggregate outstanding principal of all Mortgage Loans sold
under the Loan Repurchase Agreement and the Loan Sale Agreement and (ii) the
Facility Limit.

 

•                  the
only assets of the Company which result from the [issuance and] sale of the
[Mortgage Loans/ Notes] are:

 

1)              any cash portion of
the purchase price paid from time to time by the Trust in consideration of
Mortgage Loans sold to the Trust by the Company and

 

2)              the value of the
Company’s net equity investment in the Trust.

 

•                  As
of    /   /   , the Trust had the
following assets:

 

a)     whole loans:
$                  

 

b)    REO Properties:
$               ,
and

 

c)     cash and cash equivalents: $               .

 

A-3-1

 

•                  As
of    /   /   , the Trust had the
following liabilities and equity:

 

a)     short-term debt due to UBS:
$               ,
and

 

b)    $               
in members’ equity investment.

 

A-3-2Exhibit 10.20

 

CUSTODIAL AGREEMENT

 

 

 

 

among

MORTGAGEIT, INC.

as a Seller,

 

MORTGAGEIT HOLDINGS, INC.

as a Seller,

 

MORTGAGEIT SPV I

as Trust,

 

UBS REAL ESTATE SECURITIES INC.,

as UBS

 

and

 

JPMORGAN CHASE BANK,

as the Custodian

 

 

 

 

Dated as of

August 4, 2004

 

 

TABLE OF CONTENTS

 

	
  Section
  1.

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.

  	
  Delivery
  of Documents by Trust.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  3.

  	
  Custodian
  as Custodian for, and Bailee of, UBS, Assignee and Warehouse Lender.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.

  	
  Certification
  by Custodian; Delivery of Documents.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  5.

  	
  Funding
  by the Takeout Investor.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  6.

  	
  Default.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  7.

  	
  Access
  to Documents.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  8.

  	
  Custodian’s
  Fees and Expenses; Successor Custodian; Standard of Care.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  9.

  	
  Assignment
  by UBS.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.

  	
  Insurance.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.

  	
  Representations, Warranties and Covenants.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 12.

  	
  No Adverse Interests.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 13.

  	
  Amendments.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 14.

  	
  Execution in Counterparts.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 15.

  	
  Agreement for Exclusive Benefit of Parties;
  Assignment.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 16.

  	
  Effect of Invalidity of Provisions.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 17.

  	
  Governing Law.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 18.

  	
  Consent to Service.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 19.

  	
  Submission to Jurisdiction.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 20.

  	
  Jurisdiction Not Exclusive.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 21.

  	
  WAIVER OF JURY TRIAL.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 22.

  	
  Notices.

  	
   

  

 

 

	
  Section 23.

  	
  Certification.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 24.

  	
  Authorized Representatives.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 25.

  	
  Construction.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 26.

  	
  No Recourse.

  	
   

  

 

	
  Exhibit
  A

  	
  Dry
  Submission Package

  
	
  Exhibit B-1

  	
  Cash Window Submission Package

  
	
  Exhibit B-2

  	
  Freddie Mac Document List

  
	
  Exhibit B-3

  	
  Fannie Mae Document List

  
	
  Exhibit B-4

  	
  Fannie Mae Bailee Letter

  
	
  Exhibit C-1

  	
  Conduit Submission Package

  
	
  Exhibit C-2

  	
  Conduit Bailee Letter

  
	
  Exhibit D

  	
  Conversion Submission Packages

  
	
  Exhibit E

  	
  Request for Certification

  
	
  Exhibit F

  	
  Document Codes

  
	
  Exhibit G-1

  	
  Warehouse Lender’s Release

  
	
  Exhibit G-2

  	
  Warehouse Lender’s Wire Instructions

  
	
  Exhibit H-1

  	
  Trust’s Release

  
	
  Exhibit H-2

  	
  Trust’s Wire Instructions

  
	
  Exhibit I-1

  	
  UBS’s Wire Instructions to Trust

  
	
  Exhibit I-2

  	
  UBS’s Wire Instructions to Custodian

  
	
  Exhibit I-3

  	
  UBS’s Delivery Instructions to Custodian

  
	
  Exhibit J

  	
  Notice by Assignee to Custodian of UBS’s
  Default

  
	
  Exhibit K

  	
  Limited Power of Attorney

  
	
  Exhibit L

  	
  Unidentified Mortgage Loans List

  
	
  Exhibit M

  	
  Unidentified/Suspension Mortgage Loan
  Directive

  
	
  Exhibit N

  	
  Form of Delivery Instructions

  
	
  Exhibit O

  	
  UBS’s Instructions to Custodian to Destroy
  Specified Files

  
	
  Exhibit P

  	
  [Reserved]

  
	
  Exhibit Q

  	
  Authorized Representatives of UBS

  
	
  Exhibit R

  	
  Authorized Representatives of Trust

  
	
  Exhibit S

  	
  Authorized Representatives of Custodian

  
	
  Exhibit T

  	
  Authorized Representatives of MortgageIT,
  Inc.

  
	
  Exhibit U

  	
  Authorized Representatives of MortgageIT
  Holdings, Inc.

  
	
  Schedule A

  	
  List of Conduits

  

 

 

CUSTODIAL AGREEMENT

 

THIS CUSTODIAL AGREEMENT,
dated as of the date set forth on the cover page hereof (as amended,
supplemented or otherwise modified from time to time, “Agreement”), among UBS
REAL ESTATE SECURITIES INC., as purchaser under the Loan Repurchase Agreement,
the Loan Purchase Agreement and the Loan Participation Agreement, and as agent
for the purchasers and the noteholders under the Note Purchase Agreement (“UBS”),
JPMORGAN CHASE BANK (“Custodian”), MortgageIT SPV I (“Trust”), MortgageIT, Inc.
(“MortgageIT”) and MortgageIT Holdings, Inc. (“MortgageIT Holdings” together
with MortgageIT, “Sellers” (and each, individually, “Seller”)).

 

PRELIMINARY STATEMENT

 

Sellers and Trust are
parties to a Loan Sale Agreement, dated as of the date hereof (as amended,
supplemented or otherwise modified and in effect from time to time, the “Loan
Sale Agreement”), pursuant to which Sellers have agreed to sell, and Trust has
agreed to purchase, mortgage loans from time to time.

 

Trust acting with respect
to the REIT Sub-Trust, UBS, and certain other entities are parties to a Note
Purchase and Security Agreement, dated as of the date hereof (as amended,
supplemented or otherwise modified and in effect from time to time, the “Note
Purchase Agreement”), pursuant to which the Purchasers (as defined therein)),
severally, have agreed, subject to the terms and conditions of the Note
Purchase Agreement, to purchase the Notes issued thereunder by the REIT
Sub-Trust, which will be secured by the REIT Mortgage Loans owned by the REIT
Sub-Trust and will be held from time to time by the Noteholders (as defined
therein).  It is a condition precedent
to the effectiveness of the Note Purchase Agreement that the parties hereto
execute and deliver this Custodial Agreement.

 

Trust acting with respect
to the TRS Sub-Trust and UBS are parties to a Mortgage Loan Repurchase
Agreement, dated as of the date hereof (as amended, supplemented or otherwise
modified and in effect from time to time, the “Loan Repurchase Agreement”), a
Mortgage Loan Purchase Agreement, dated as of the date hereof (as amended,
supplemented or otherwise modified and in effect from time to time, the “Loan
Purchase Agreement”), and a Mortgage Loan Participation Agreement, dated as of
the date hereof (as amended, supplemented or otherwise in effect from time to
time, the “Loan Participation Agreement”) pursuant to which UBS has agreed to
purchase, from time to time, at its sole election from the TRS Sub-Trust, TRS
Mortgage Loans or Participation Certificates (as defined in the Loan
Participation Agreement) evidencing ownership in the TRS Mortgage Loans.

 

UBS desires to have
Custodian take possession of the Mortgage Notes evidencing the Mortgage Loans,
along with certain other documents specified herein, as the custodian for and
bailee of UBS or any Assignees in accordance with the terms and conditions
hereof.

 

The parties, intending to
be legally bound, agree as follows:

 

 

Section 1.                                            Definitions.  Capitalized terms used but not defined
herein shall have the meanings set forth in the Definitions List attached as
Schedule 1 to the Loan Sale Agreement. 
As used in this Agreement, the following terms shall have the following
meanings:

 

“Agency”:  Freddie Mac or Fannie Mae, as applicable.

 

“Applicable Agency
Documents”:  The documents listed on
Exhibit B-2 or Exhibit B-3, as applicable.

 

“Applicable Guide”:  With respect to each Takeout Investor the
applicable guide published by such Takeout Investor setting forth the
requirements each Mortgage Loan needs to satisfy in order to be eligible for
purchase by such Takeout Investor, as such guide may be amended or supplemented
from time to time.

 

“Assignee”:  With respect to this Agreement and any
Mortgage Loan, any assignee of UBS pursuant to a sale, pledge or
rehypothecation of the Mortgage Loan.

 

“Assignment of
Mortgage”:  An assignment of the
Mortgage, notice of transfer or equivalent instrument, in recordable form,
which when recorded is sufficient under the laws of the jurisdiction where the
related Mortgaged Property is located to reflect of record the sale of a
Mortgage Loan.

 

“Bailee Letter”:  A Fannie Mae Bailee Letter or a Conduit
Bailee Letter, as applicable.

 

“Business Day”:  Any day other than (i) a Saturday, Sunday or
other day on which banks located in the City of New York, New York are
authorized or obligated by law or executive order to be closed, or (ii) any day
on which UBS is closed for business, provided that notice thereof shall have been
given not less than seven calendar days prior to such day.

 

“Cash Window Submission
Package”:  The documents listed on
Exhibit B-1, which shall be delivered by Trust, MortgageIT or MortgageIT
Holdings to Custodian in connection with each Cash Window Transaction.

 

“Cash Window
Transaction”:  A transaction initiated
by UBS’s delivery of a Request for Certification which identifies Fannie Mae or
Freddie Mac as the Takeout Investor but does not include a Conversion Code.

 

“Certification”:  With respect to a Mortgage Loan, the full
performance by Custodian of the procedures set forth in Sections 4(a) and 4(b).

 

“Certification
Code”:  A Mortgage Loan Absentee Code, a
Mortgage Loan Approval Code or a Mortgage Loan Suspension Code.

 

“Certification
Report”:  A Request for Certification to
which Custodian has added its Certification Codes and, when a Certification
Code indicates suspension, applicable Exception Codes, and which is transmitted
by Custodian to UBS in an appropriate data layout provided by UBS.

 

2

 

“Commitment”:  A commitment executed by Takeout Investor
and MortgageIT on Takeout Investor’s letterhead evidencing Takeout Investor’s
agreement to purchase one or more Mortgage Loans from MortgageIT and MortgageIT’s
agreement to sell one or more Mortgage Loans to an investor in a forward trade
by the applicable Commitment Expiration Date.

 

“Commitment Expiration
Date”:  With respect to any Commitment,
the expiration date thereof.

 

“Conduit”:  Any of the Entities listed on Schedule A, as
amended or supplemented from time to time.

 

“Conduit Bailee
Letter”:  The master bailee letter, in
the form of Exhibit C-2, for use by Custodian in connection with the delivery
of a Conduit Submission Package; provided, however, for the purposes of
delivering the related Conduit Submission Package, excluding (i) a copy of the
Commitment, (ii) the Warehouse Lender’s Release or Trust’s Release, as
applicable, and (iii) the original Assignment of Mortgage, in blank, to a
Conduit.

 

“Conduit Submission
Package”:  The documents listed on
Exhibit C-1, which shall be delivered by Trust, MortgageIT or MortgageIT
Holdings to Custodian under the Conduit Transaction.

 

“Conduit
Transaction”:  A transaction initiated
by UBS’s delivery of a Request for Certification which identifies a Conduit as
the Takeout Investor but does not include a Conversion Code.

 

“Confirmation”:  A confirmation confirming a trade between
MortgageIT or MortgageIT Holdings and Takeout Investor.

 

“Conversion Code”:  With respect to a Mortgage Loan, the
conversion code set forth in Part II of Exhibit F, entered by UBS, along with
the Program Code, in the “PROG CODE” column of the related Request for
Certification indicating that (i) such Mortgage Loan was previously acquired by
UBS in a Dry Transaction and (ii) a Conversion Submission Package shall be
received by Custodian on the applicable Delivery Date.

 

“Conversion Submission
Package”:  One of the sets of documents
listed on Exhibit D, which shall be delivered by Trust, MortgageIT or
MortgageIT Holdings to Custodian in connection with each Conversion
Transaction.

 

“Conversion
Transaction”:  With respect to a
Mortgage Loan, a transaction initiated by UBS’s delivery to Custodian of a
Request for Certification containing a Conversion Code.  A Conversion Transaction shall always be
preceded by a Dry Transaction.

 

“Cooperative
Apartment”:  A dwelling unit in a
multi-dwelling building owned or leased by a Cooperative Corporation, which
unit the Mortgagor has an exclusive right to occupy pursuant to the terms of a
proprietary lease in accordance with the laws of the state in which the
building is located.

 

3

 

“Cooperative
Corporation”:  The entity that holds
title (fee or an acceptable leasehold estate) to a Cooperative Apartment and
which governs such Cooperative Apartment, which Cooperative Corporation must
qualify as a Cooperative Housing Corporation under Section 216 of the Code.

 

“Cooperative
Loan”:  A Mortgage Loan evidenced by a
Mortgage Note and secured by a first lien against the Cooperative Ownership
Interest in a Cooperative Apartment and by the related Proprietary Lease.

 

“Cooperative
Ownership Interest”:  With respect to
any Cooperative Loan, the ownership interest in a single Cooperative Apartment,
including (i) the shares issued by the related Cooperative Corporation, (ii)
the leasehold interests in the Cooperative Apartment and (iii) all attendant
right, title, and interest thereto.

 

“Cumulative Position
File”:  A list of all Mortgage Loans
held by Custodian on each day which includes all information which would be on
Custodian’s Certification Report and additionally includes the shipping
information for each Mortgage Loan which has been released from Custodian’s
possession (i.e., airbill number, federal express tracking code or other
identifying information).

 

“Custodian”:  JPMorgan Chase Bank, a New York banking
corporation, and its permitted successors hereunder.

 

“Delivery Date”:  With respect to a Mortgage Loan, the date
set forth on the related Request for Certification in the “DELIVERY DATE”
column, which shall be either (1) the Note Purchase Date or (2) the
Business Day on which Trust desires the applicable portion of the related
Submission Package be sent by Custodian to the Takeout Investor, i.e., one
Business Day prior to the Business Day on which Trust desires the applicable
portion of the Submission Package to be received by the Takeout Investor.

 

“Delivery
Directive”:  With respect to each
Mortgage Loan being offered for sale or being pledged by Trust to UBS pursuant
to a Conduit Transaction or a Cash Window Transaction, the delivery directive,
set forth in Part IV of Exhibit F, used by UBS in a notice delivered via
electronic transmission in the form of Exhibit M, to direct Custodian to
deliver the related Submission Package in accordance with the Delivery
Instructions.

 

“Delivery
Instructions”:  With respect to a
Mortgage Loan, instructions prepared by the Administrator, in the form of
Exhibit N indicating the address for the delivery by Custodian of the
applicable portion of the related Submission Package.

 

“Dry Submission
Package”:  The documents listed on
Exhibit A, which shall be delivered by Trust or the related Seller to Custodian
in connection with each Dry Transaction.

 

“Dry Transaction”:  A transaction initiated by UBS’s delivery to
Custodian of a Request for Certification, which does not identify a Takeout
Investor, and which does not include a Conversion Code.

 

4

 

“Electronic Agent”:  The electronic agent identified in the
Electronic Tracking Agreement.

 

“Electronic Tracking
Agreement”:  The Electronic Tracking
Agreement, dated as of August 4, 2004, among UBS, Trust, MortgageIT, MortgageIT
Holdings, an electronic agent and Mortgage Electronic Registration Systems,
Inc., as the same shall be amended, supplemented or otherwise modified from
time to time; provided that if no Mortgage Loans are or will be MERS Designated
Mortgage Loans, all references herein to the Electronic Tracking Agreement
shall be disregarded.

 

“Entity”:  Any individual, corporation, partnership,
joint venture, association, joint stock company, trust (including any
beneficiary thereof), unincorporated organization or government or any agency
or political subdivision thereof.

 

“Exception Code”:  Each of the exception codes set forth in
Part V of Exhibit F, placed by Custodian on a Certification Report indicating
missing documents, incomplete documents and deficiencies in documents reviewed
by Custodian.

 

“Expected Delivery
Date”:  The date identified on a Request
for Certification as the “Expected Delivery Date of Mortgage File”, which shall
be the date on which Trust, MortgageIT or MortgageIT Holdings has informed UBS
that a Submission Package will be received by Custodian from Trust, MortgageIT
or MortgageIT Holdings.

 

“Fannie Mae”:  Fannie Mae, or any successor thereto.

 

“Fannie Mae Bailee
Letter”:  The master bailee letter, in
the form of Exhibit B-4, for use by Custodian in connection with the delivery
to Fannie Mae of the Cash Window Submission Package, excluding (i) the original
Assignment of Mortgage, in blank, (ii) the Warehouse Lender’s Release or
Trust’s Release, as applicable, (iii) all modification agreements relating to a
Mortgage, (iv) the Delivery Instructions and (v) a copy of the Commitment.

 

“Fannie Mae
Commitment”:  A commitment executed by
Fannie Mae and MortgageIT evidencing Fannie Mae’s agreement to purchase one or
more Mortgage Loans from MortgageIT and MortgageIT’s agreement to sell one or
more Mortgage Loans to Fannie Mae by the applicable Commitment Expiration Date
under the Applicable Guide.

 

“Freddie Mac”:  Freddie Mac or any successor thereto.

 

“Freddie Mac
Commitment”:  A commitment executed by
Freddie Mac and MortgageIT evidencing Freddie Mac’s agreement to purchase one
or more Mortgage Loans from MortgageIT and MortgageIT’s agreement to sell one
or more Mortgage Loans to Freddie Mac by the applicable Commitment Expiration
Date under the Applicable Guide.

 

“Hold Directive”:  With respect to each Mortgage Loan being
offered by Trust for sale to UBS pursuant to a Conduit Transaction or a Cash
Window Transaction, the hold directive, set forth in Part IV of Exhibit F,
delivered by Trust via electronic transmission in a notice in the form of
Exhibit M to direct Custodian to continue to hold the related Submission
Package.

 

5

 

“HUD”:  The United States Department of Housing and
Urban Development or any successor thereto.

 

“Limited Power of
Attorney”:  A limited power of attorney,
in the form of Exhibit K, executed by Trust and delivered to Custodian,
authorizing Custodian to prepare Mortgage Note endorsements in the form
indicated thereon.

 

“Loan Participation
Agreement”:  The Mortgage Loan
Participation Agreement, dated as of August 4, 2004, among the Trust acting
with respect to the TRS Sub-Trust, as seller, and UBS, as participant, as
amended, supplemented or otherwise modified from time to time.

 

“Loan Identification
Data”:  The applicable information
regarding a Mortgage Loan, set forth on a Request for Certification, which
shall include UBS’s reference number, the name of UBS’s applicable program, the
Mortgage Loan number, the MERS Identification Number, the last name of the
Mortgagor, the address of the Mortgaged Property, the face amount of the
Mortgage Note, the number of months to maturity of the Mortgage Loan, and the
interest rate borne by the Mortgage Note and, solely with respect to Cash
Window Transactions, Conduit Transactions and Conversion Transactions, the name
of the Takeout Investor, the sale price of the Mortgage Loan to the Takeout
Investor, the commitment number, the Commitment Expiration Date, the Delivery
Date, the Release Payment, and the name of the Warehouse Lender.

 

“Losses”:  Any and all losses, claims, damages,
liabilities or expenses (including reasonable attorneys’ fees) incurred by any
person specified; provided, however, that “Losses” shall not include losses,
claims, damages, liabilities or expenses which would have been avoided had such
person taken reasonable actions to mitigate such losses, claims, damages,
liabilities or expenses.

 

“MERS Designated Mortgage
Loan”:  shall have the meaning assigned
to such term in Section 3 of the Electronic Tracking Agreement; provided that
no Mortgage Loan shall be considered a MERS Designated Mortgage Loan unless an
Electronic Tracking Agreement shall have been entered into.

 

“MERS Identification
Number”:  The eighteen digit number
permanently assigned to each MERS Designated Mortgage Loan.

 

“MERS Procedures
Manual”:  The MERS Procedures Manual
attached as Exhibit B to the Electronic Tracking Agreement, as it may be
amended, supplemented or otherwise modified from time to time.

 

“MERS Report”:  The schedule listing MERS Designated
Mortgage Loans and other information prepared by the Electronic Agent pursuant
to the Electronic Tracking Agreement.

 

“MERS® System”:  The Electronic Agent’s mortgage electronic
registry system, as more particularly described in the MERS Procedures Manual.

 

6

 

“Mortgage”:  A mortgage, deed of trust or other security
instrument creating a  first or second
lien on an estate in fee simple in real property securing a Mortgage Note.

 

“Mortgage Loan”:  A first or second lien, residential,
one-to-four family mortgage loan originated in accordance with the Underwriting
Guidelines that is subject to this Agreement. 
For the purpose of this Agreement, a Mortgage Loan shall be a REIT
Mortgage Loan or a TRS Mortgage Loan, but shall not include a TRS Mortgage Loan
that is subject to the Loan Participation Agreement.

 

“Mortgage Loan Absentee
Code”:  The mortgage loan absentee code,
set forth in Part III of Exhibit F, placed by Custodian on a Certification
Report to notify UBS that a Submission Package related to a Mortgage Loan
listed on a Request for Certification is not in Custodian’s possession.

 

“Mortgage Loan Approval
Code”:  The mortgage loan approval code,
set forth in Part III of Exhibit F, placed by Custodian on a Certification
Report to notify UBS that Custodian’s review of the applicable items in a
Submission Package is complete and that such items satisfy all the applicable
requirements set forth in Section 4(a) and Section 4(b).

 

“Mortgage Loan Suspension
Code”:  The mortgage loan suspension
code, set forth in Part III of Exhibit F, placed by Custodian on a
Certification Report to notify UBS that Custodian’s review of the Submission
Package has determined that one or more of the documents in the Submission
Package are missing, incomplete or incorrect and/or do not satisfy one or more
of the requirements set forth in Section 4(a) or Section 4(b).

 

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

 

“Mortgaged
Property”:  The real property subject to
the lien of the Mortgage securing a Mortgage Note.

 

“Mortgagor”:  The obligor on a Mortgage Note.

 

“Note Purchase
Date”:  With respect to a REIT Mortgage
Loan, the date on which a Note Purchase is made under the Note Purchase
Agreement as contemplated in Section 2 thereto.

 

“Notice of
Bailment”:  A notice, in the form of
Schedule A to Exhibit B-4 or C-2, as applicable, delivered by Custodian to
Takeout Investor in connection with each delivery to Takeout Investor of the
applicable portion of each Submission Package.

 

“Officer’s
Certificate”:  With respect to
MortgageIT or MortgageIT Holdings, a certificate signed by the Chairman of the
Board or the Vice Chairman of the Board or a President or a Vice President and
by the Treasurer or the Secretary or one of the Assistant Treasurers or
Assistant Secretaries of MortgageIT or MortgageIT Holdings, as applicable, and
delivered to UBS as required by this Agreement.

 

7

 

“Payee Number”:  The code used by Fannie Mae to indicate the
wire transfer instructions that will be used by Fannie Mae to purchase a
Mortgage Loan.

 

“Program Code”:  Each of the codes, set forth in Part I of
Exhibit F, placed by UBS in the “PROG CODE” column of a Request for
Certification indicating that the Mortgage Loan is being offered by MortgageIT
or MortgageIT Holdings to UBS in a Dry Transaction, Cash Window Transaction or
a Conduit Transaction, as applicable.

 

“Proprietary Lease”:  With respect to any Cooperative Apartment, a
lease or occupancy agreement between a Cooperative Corporation and a holder of
the related Cooperative Ownership Interest.

 

“Purchase Date”:  With respect to a TRS Mortgage Loan, the
date on which UBS purchases such Mortgage Loan from the TRS Sub-Trust.

 

“Recognition
Agreement”:  With respect to any
Cooperative Loan, an agreement between the related Cooperative Corporation and
the originator of such Mortgage Loan to establish the rights of such originator
in the related Cooperative Apartment.

 

“REIT Mortgage
Loans”:  The Mortgage Loans sold by
MortgageIT Holdings to the REIT Sub-Trust under the Loan Sale Agreement or
transferred into the REIT Sub-Trust under the Trust Agreement, which are
subject to the terms of the Note Purchase Agreement.

 

“Release Payment”:  The funds referred to in a Warehouse
Lender’s Release or Trust’s Release, as applicable.

 

“Request for
Certification”:  A report detailing Loan
Identification Data supplied by MortgageIT or MortgageIT Holdings to UBS,
transmitted by UBS to Custodian either via facsimile in the form of Exhibit E
or transmitted electronically in an appropriate data layout, regarding all
Mortgage Loans being offered for sale or being pledged by Trust to UBS.

 

“Security
Agreement”:  With respect to any
Cooperative Loan, the agreement between the owner of the related Cooperative
Ownership Interest and the originator of the related Mortgage Note that defines
the terms of the security interest in such Cooperative Ownership Interest and
the related Proprietary Lease, which shall include any riders, addenda,
assumption agreements, or modifications relating thereto.

 

“Submission
Package”:  With respect to each Mortgage
Loan, a Dry Submission Package, a Cash Window Submission Package, a Conduit Submission
Package or a Conversion Submission Package, as applicable.

 

“Successor
Servicer”:  An entity with the necessary
Agency Approvals, as the circumstances may require, and designated by UBS, in
accordance with the applicable Servicing Agreement, to replace GMAC Mortgage
Corporation as REIT Servicer under the REIT Servicing Agreement and/or to
replace MortgageIT as the TRS Servicer under the TRS Servicing Agreement.

 

8

 

“Takeout Investor”:  A Person who has entered into an agreement
with MortgageIT to purchase one or more Mortgage Loan on its own behalf or on
behalf of a securitization trust or other securitization vehicle.

 

“TRS Mortgage
Loans”:  The Mortgage Loans sold by
MortgageIT to the TRS Sub-Trust under the Loan Sale Agreement, which may become
subject to the terms of the Loan Repurchase Agreement, the Loan Purchase
Agreement and/or the Loan Participation Agreement.

 

“Trust Agreement”:  The Trust Agreement dated as of August 4,
2004, among MortgageIT, MortgageIT Holdings, and Wilmington Trust Company, as
Owner Trustee, as amended, supplemented or otherwise modified from time to
time.

 

“Trust’s Release”:  A letter, in the form of Exhibit H-1,
delivered by the Administrator when no Warehouse Lender has an interest in a
Mortgage Loan, conditionally releasing all of Trust’s right, title and interest
in such Mortgage Loan upon receipt of payment by Trust.

 

“Trust’s Wire
Instructions”:  The wire instructions,
set forth in a letter in the form of Exhibit H-2, to be used for the payment of
funds to Trust when no Warehouse Lender has an interest in the Mortgage Loans
to which such payment relates.

 

“UBS”:  UBS Real Estate Securities Inc. and its
successors.

 

“UBS’s Wire Instructions
to Trust”:  The wire instructions, set
forth on Exhibit I-1, specifying the account which shall be used for the
payment of all amounts due and payable by Trust to UBS hereunder.

 

“UBS’s Payment”:  The amount set forth on the Request for
Certification in the “RELEASE PAYMENT” column.

 

“UBS’s Wire Instructions
to Custodian”:  The wire Instructions
delivered by UBS to Custodian, in the form of Exhibit I-2, executed by UBS,
receipt of which has been acknowledged by Custodian specifying the wire address
where all funds received in accordance with UBS’s Wire Instructions to Trust
shall be transferred by Custodian.

 

“Underwriter”:  Any party, including but not limited to a
mortgage loan pool insurer, who underwrites a Mortgage Loan prior to its
purchase by UBS.

 

“Underwriter’s
Form”:  A Fannie Mae / Freddie Mac Form
1008/1077, HUD 92900WS, HUD92900.4, VA Form 26-6393, VA Form 26-1866, or a
mortgage loan pool insurance certificate, as applicable, completed by an
Underwriter with respect to a Mortgage Loan, indicating that such Mortgage Loan
complies with its underwriting requirements.

 

“Unidentified/Suspension
Mortgage Loan Directive”:  A Delivery
Directive or a Hold Directive, as applicable.

 

“Unidentified Mortgage
Loans List”:  A list of Mortgage Loans
for which Custodian has received the related Submission Packages from Trust,
MortgageIT or MortgageIT

 

9

 

Holdings but which have not been identified by UBS in
a Request for Certification.  Such list
shall include, with respect to each Mortgage Loan, the information set forth in
Exhibit L.

 

“Warehouse Lender”:  Any lender providing financing (including
repurchase facilities) to either MortgageIT or MortgageIT Holdings in any
fractional amount for the purpose of originating or purchasing Mortgage Loans,
which lender has a security interest in such Mortgage Loans as collateral for
the obligations of MortgageIT or MortgageIT Holdings to such lender; provided,
however, that the Warehouse Lender shall not include UBS.

 

“Warehouse Lender’s
Release”:  A letter, in the form of
Exhibit G-l, from a Warehouse Lender to UBS, conditionally releasing all of
Warehouse Lender’s right, title and interest in certain Mortgage Loans
identified therein upon receipt of payment by Warehouse Lender.

 

“Warehouse Lender’s Wire
Instructions”:  The wire instructions,
set forth in a letter in the form of Exhibit G-2, from a Warehouse Lender to
UBS, setting forth wire instructions for all amounts due and payable to such
Warehouse Lender.

 

Section 2.                                            Delivery
of Documents by Trust.

 

(a)           Trust
may, before the first purchase by UBS under any of the Financing Documents of a
Note or Mortgage Loan, as applicable, deliver to Custodian a Limited Power of
Attorney; provided, however, Custodian shall have no
responsibility or obligation to act under such Limited Power of Attorney.

 

(b)           If
Trust desires to engage in Cash Window Transactions, prior to the first such
transaction:

 

(i)            relating to a Freddie Mac
Commitment, Trust shall deliver to UBS a copy of (i) Freddie Mac Form 1035
(Custodial Agreement), if applicable, duly executed by the related custodian
and Freddie Mac, (ii) Freddie Mac Form 3 (Summary Agreement) or such other
equivalent agreement as is acceptable to UBS, duly executed by Trust and
Freddie Mac, and (iii) Freddie Mac Form 1 (Fixed-Rate Mortgage Purchase
Contract Conventional Home Mortgages - Original Cash) or Freddie Mac Form 9
(Fixed-Rate Mortgage Purchase Contract Conventional Home Mortgages – Gold
Cash), or Freddie Mac Form 2 (Adjustable Rate Purchase Contract Conventional
Home Mortgages); or

 

(ii)           relating to a Fannie Mae Commitment,
Trust shall deliver to UBS a copy of (i) Fannie Mae Form 2003 (Custodial
Agreement) if applicable, duly executed by the related custodian and Fannie
Mae, (ii) Fannie Mae Mortgage Selling and Servicing Contract, and Fannie Mae
Form 482 (Designation of Payee – Wire Transfer Information), and (iii) either a
Standard Mandatory Delivery Commitment or a Negotiated Mandatory Delivery
Commitment or a Negotiated Market-Rate Standby Commitment.

 

(c)           With
respect to each Mortgage Loan being offered for sale or being pledged to UBS
pursuant to (i) a Dry Transaction, (ii) a Cash Window Transaction, (iii) a
Conduit Transaction or (iv) a Conversion Transaction, Trust shall deliver (or
shall cause the related Seller to deliver) to Custodian a Submission Package on
the Expected Delivery Date.  In

 

10

 

no event shall Trust deliver a Submission Package to Custodian later
than 12:00 Noon New York City time on the related Delivery Date.

 

Section 3.                                            Custodian
as Custodian for, and Bailee of, UBS, Assignee and Warehouse Lender.

 

(a)           With
respect to each Mortgage Note, each Assignment of Mortgage (except with respect
to MERS Designated Mortgage Loans) and all other documents constituting each
Submission Package that are delivered to Custodian or that at any time come
into Custodian’s possession, Custodian, subject to the provisions of paragraphs
(b) and (c) of this Section 3, shall act solely in the capacity of custodian for,
and bailee of, UBS.  Custodian shall,
subject to the provisions of paragraphs (b) and (c) of this Section 3 and
except as otherwise required by Section 4, hold all documents constituting a
Submission Package received by it for the exclusive use and benefit of UBS, and
shall make disposition thereof only in accordance with this Agreement and the
directions of UBS; and have no discretion or authority to act in a manner which
is in any respect contrary to its role as custodian with respect to its
obligations to UBS.  Custodian shall
segregate and maintain continuous custody of all documents constituting a
Submission Package received by it in secure and fireproof facilities in
accordance with customary standards for such custody and shall mark its books
and records to indicate that UBS is the owner of the Mortgage Loans and that
the Submission Package is being held for UBS.

 

(b)           UBS
hereby notifies Custodian that each Mortgage Loan pledged to or purchased by
UBS shall be promptly assigned by UBS to Assignee, as of the date of Purchase,
as described in Section 9.  Upon notice,
in the form of Exhibit J, by Assignee to Custodian of UBS’s default, Assignee
may (i) require Custodian to act with respect to the related Submission
Packages solely in the capacity of custodian for, and bailee of, Assignee, but
nevertheless subject to and in accordance with the terms of this Agreement,
(ii) require Custodian to hold such Submission Packages for the exclusive use
and benefit of Assignee, (iii) assume the rights of UBS under this Agreement to
furnish instructions to Custodian as to the disposition of such Submission
Packages and such rights shall be exercisable solely by Assignee and (iv) take
all such actions under the Electronic Tracking Agreement which are necessary to
effectuate any of the foregoing. 
Custodian shall give Assignee written acknowledgment to the effect set
forth in (i), (ii) and (iii), by executing such notice and returning a copy
thereof to Assignee.  In the event that,
prior to receipt of such notice from Assignee, Custodian delivered any
Submission Package to UBS, Takeout Investor or UBS’s designee, Custodian shall
so notify Assignee, and Custodian shall not be deemed to hold such Submission
Package for Assignee unless and until such Submission Package is redelivered to
Custodian.  The failure of Custodian to
give the written acknowledgement referred to above shall not affect the
validity of such assignment, pledge or grant of a security interest.  The effects of Assignee’s notice to
Custodian set forth above shall continue until Custodian is otherwise notified
in writing by Assignee.  The terms of
this Agreement shall not apply to any Submission Package physically delivered
by Custodian to Assignee.

 

(c)           Trust,
the related Seller and UBS acknowledge that Warehouse Lender, if any,
identified from time to time in each Warehouse Lender’s Release to be received
by Custodian pursuant to Section 2(c), is a warehouse lender for such related
Seller.  Trust, the related Seller and
UBS acknowledge that, in accordance with the terms of each Warehouse

 

11

 

Lender’s Release to be received by Custodian pursuant to Section 2(c),
pursuant to which each such Warehouse Lender conditionally releases its
security interest in the Mortgage Loan referred to in the related Warehouse
Lender’s Release, such release shall not be effective until the Release Payment
is received in accordance with the Warehouse Lender’s Wire Instructions.  Until receipt of a Release Payment, the
interest of the related Warehouse Lender in a Mortgage Loan shall continue and
remain in full force and effect.

 

(d)           If
any additional documents relating to the Submission Package come into
Custodian’s possession, the provisions of paragraphs (a), (b) and (c) of this Section
3 shall apply to such additional documents in the same manner as such
provisions apply to related Submission Package.

 

(e)           UBS
shall notify Custodian on each Business Day, of all Mortgage Loans purchased by
or pledged to UBS on such Business Day which relate to this Agreement.

 

(f)            On
or prior to 7:00 p.m. New York time, Custodian shall deliver to UBS a
Cumulative Position Report reflecting all Mortgage Loans held by custodian as
of such time under this Agreement.

 

Section 4.                                            Certification
by Custodian; Delivery of Documents.

 

(a)           With
respect to each Mortgage Loan that shall be pledged or sold to UBS, UBS shall
deliver to Custodian a Request for Certification.  Upon receipt by Custodian of a Request for Certification,
Custodian shall perform the following procedures with respect to each Mortgage
Loan listed on such Request for Certification:

 

(i)            Custodian shall ascertain whether it
is in possession of a Submission Package for each Mortgage Loan identified on a
Request for Certification.  If Custodian
is not in possession of a Submission Package relating to a Mortgage Loan
identified on a Request for Certification, Custodian shall annotate its
Certification Report in the appropriate space provided with a Mortgage Loan
Absentee Code.  If Custodian is in
possession of Submission Packages delivered by Seller which do not relate to
any of the Mortgage Loans listed on a Request for Certification, Custodian
shall generate an Unidentified Mortgage Loans List and shall deliver such List
promptly to UBS.  UBS shall deliver a
copy of such Unidentified Mortgage Loans List to Seller.  No action shall be taken by Custodian, other
than in accordance with Unidentified/ Suspension Mortgage Loan Directive or a
notice in the form of Exhibit I 3, with respect to Mortgage Loans appearing on
an Unidentified Mortgage Loans List until any such Mortgage Loans are included
in a Request for Certification.

 

(ii)           With respect to each Request for
Certification Custodian shall:

 

(A)          verify the Loan Identification Data
appearing in (1) the “LAST NAME” column by comparing such Loan Identification
Data to the information in the Mortgage Note and Assignment of Mortgage, (2)
the “NOTE DATE” (indicating any Mortgage Note with a date which is greater than
30 days prior with the appropriate exception code), “FACE AMOUNT”, “# OF MONTHS
TO MATURITY” and “NOTE RATE” columns by comparing such Loan

 

12

 

Identification Data to the information in the Mortgage
Note and (3) the “MERS IDENTIFICATION NUMBER” column by comparing such Loan
Identification Data to each the information in the Mortgage Note;

 

(B)           if the Program Code indicates a Cash
Window Transaction, verify the Loan Identification Data appearing in the “LOAN
#” column by comparing the related information in any of the related Applicable
Agency Documents;

 

(C)           if the Program Code indicates a Cash
Window Transaction, Conduit Transaction or Conversion Transaction, verify the
Loan Identification Data appearing in the “TAKEOUT INVESTOR”, “SALE PRICE”,
“COMMITMENT #”, and “COMMITMENT EXPIRATION DATE” columns by comparing such Loan
Identification Data to the information appearing in the Commitment; and

 

(D)          if the Program Code indicates a Cash
Window Transaction or a Conduit Transaction, verify the Loan Identification
Data appearing in the “WAREHOUSE LENDER” column by comparing such Loan
Identification Data to the information appearing in the Warehouse Lender’s
Release or Trust’s Release, as applicable.

 

After applying the applicable procedures set forth in
clauses (A), (B) and (C) above, any discrepancies between the Loan
Identification Data and documents comprising the Submission Package shall be
noted by Custodian in the appropriate column immediately below each item of
Loan Identification Data.

 

(b)           With
respect to each Request for Certification, following completion by Custodian of
the procedures set forth in Section (4)(a):

 

(i)            Custodian shall review each
applicable set of documents comprising the Submission Package and shall
ascertain whether (A) each such document is in Custodian’s possession, (B) each
such document accurately conforms with the Loan Identification Data set forth
in the Request for Certification or as modified by any notations supplied by
Custodian pursuant to Section 4(a)(ii), (C) each such document appears regular
on its face, (D) each such document in the Submission Package appears on its
face to conform to the requirements of Exhibit A, Exhibit B-l, Exhibit C-1 or
Exhibit F, as applicable, (E) unless the Program Code indicates either a Dry
Transaction or a Conversion Transaction, the Mortgage Loan is listed on a
schedule attached to a Warehouse Lender’s Release or a Trust’s Release as the
case may be, (F) either (1) if the Release Payment is a dollar amount, the
amount appearing in the “RELEASE PAYMENT” column on the Request for
Certification is equal to or exceeds the Release Payment, or (2) if the Program
Code indicates either a Dry Transaction or a Conversion Transaction, or if the
Release Payment is a formula, as indicated in Exhibit G 1, Custodian need not
verify the amount, if any, appearing in the “RELEASE PAYMENT” column and (G)
(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 UBS’s Wire Instructions to Seller or (2)
the Payee

 

13

 

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 UBS in the Request for
Certification.

 

(ii)           If Custodian determines that the
documents in the Submission Package and the Mortgage Loan to which they relate
conform in all respects with Section 4(b)(i), Custodian shall so indicate in
the space provided in its Certification Report with a Mortgage Loan Approval
Code.  If Custodian determines that the
documents in a Submission Package and the Mortgage Loan to which they relate
conform in all respects with Section 4(b)(i) except that the endorsement of the
Mortgage Note is missing, Custodian may, but shall not be obligated to, prepare
such endorsement pursuant to the Limited Power of Attorney.  If documents in the Submission Package do
not conform in all respects with Section 4(b)(i) or are missing and/or do not
conform, Custodian shall annotate its Certification Report with a Mortgage Loan
Suspension Code followed by each applicable Exception Code such that UBS is
informed of each and every missing document and/or non-conformity in the space
provided in its Certification Report.

 

(c)           Custodian
shall use its reasonable efforts to perform a Certification with respect to any
Submission Package delivered after 12:00 Noon New York City time and by 5:30 pm
on the related Delivery Date for which it has received a Request for
Certification and, upon completion of its Certification, Custodian shall
deliver a Certification Report to UBS.

 

In connection with
the delivery of a Submission Package to a Takeout Investor, all applicable
documents comprising a Submission Package relating to Mortgage Loans (except
the related Assignments of Mortgage which shall be retained by Custodian) with
respect to which Custodian has assigned a Mortgage Loan Approval Code shall be
delivered by Custodian in the form and specific order required by MortgageIT,
via overnight courier in accordance with the Delivery Instructions on the
applicable Delivery Date and, except with respect to Mortgage Loans for which
Freddie Mac is the Takeout Investor, under cover of a fully completed Notice of
Bailment prepared by Custodian in accordance with the terms of the Bailee
Letter.  If MortgageIT fails to instruct
Custodian regarding the order and specific form for a delivery to Takeout
Investor of such applicable documents, Custodian shall deliver such applicable
documents in the original form and specific order received from Trust.  Custodian shall not deliver any Submission
Package to any potential Takeout Investor unless such Takeout Investor was
identified by Trust to UBS on the Note Purchase Date or Purchase Date, as
applicable, in the Loan Identification Data or as agreed to in writing by UBS.  In those cases where a copy of any
intervening mortgage assignment, or an unrecorded original of any intervening
mortgage assignment are delivered to Custodian, the related Seller shall cause
the original of such instrument to be recorded.  In those cases where a copy of an original document has been
delivered to Custodian together with an officer’s certificate of the related
Seller indicating that such document has been delivered for recordation,
Custodian shall, no less frequently than one time per calendar month review
such Submission Package to ascertain if the required document has been
delivered with the timeframe set forth in such officer’s certificate.  If Delivery Instructions direct Custodian to
deliver any portion of a Submission Package to a location that is not Takeout
Investor’s office, Custodian must receive UBS’s written consent to make
deliveries to such location prior to complying with such Delivery
Instructions.  Upon receipt of one
written

 

14

 

approval from UBS, such written approval shall, unless Custodian
receives a notice from UBS to the contrary, be deemed to apply to all Delivery
Instructions delivered in the future by Seller that list such location.  Following delivery by Custodian of the
applicable portion of a Submission File to Takeout Investor, all remaining
documents comprising such Submission Package shall be held by Custodian until
receipt by Custodian of written instructions from UBS to destroy such
documents.  Each month, UBS may, but
shall not be obligated to, deliver to Custodian a notice in the form of Exhibit
O, informing Custodian of all files that UBS has authorized Custodian to
destroy.

 

All applicable documents comprising a Submission
Package relating to Mortgage Loans with respect to which Custodian has assigned
a Mortgage Loan Suspension Code shall be held by Custodian until receipt from
UBS of instructions.  On each Business
Day during which a Mortgage Loan shall have a Mortgage Loan Suspension Code
assigned to it, UBS shall send to Custodian an Unidentified/Suspension Mortgage
Loan Directive with respect to such Mortgage Loan.

 

(d)           At
any time following the delivery of a Certification, in the event Custodian
becomes aware of any defect with respect to such Submission Package or the
related forms, including the return of documents to Custodian from Takeout
Investor due to a defect in such documents, Custodian shall give prompt oral
notice of such defect to UBS, followed by a written specification thereof to
UBS within one Business Day.  In
addition, Custodian shall provide written notice to UBS in the event that any
documents remain in the possession of a Takeout Investor for thirty (30) days.

 

Section 5.                                            Funding
by the Takeout Investor.

 

Custodian shall promptly notify UBS, either electronically
or by facsimile, upon receipt, in accordance with UBS’s Wire Instructions to
Seller, of funds by Custodian.  Each
notice shall identify all such funds by (i) the amount, (ii) the source from
which such funds were received and (iii) to the extent received by Custodian,
MortgageIT’s name.  Unless Custodian is
otherwise instructed by Assignee, Custodian shall promptly transfer such funds
to UBS in accordance with UBS’s Wire Instructions to Custodian.

 

Section 6.                                            Default.

 

If either Seller fails to fulfill any of its
obligations under the Loan Sale Agreement, the Note Purchase Agreement, the
Loan Repurchase Agreement, the Loan Purchase Agreement, the Electronic Tracking
Agreement or hereunder or in connection with the exercise by UBS of any remedy pursuant
to Section 10 of the Note Purchase Agreement or Section 3 of the Loan
Repurchase Agreement then, subject to the provisions of Section 3(c) hereof,
UBS may, by notice to Custodian, (a) appoint Custodian as its delegee to
complete the endorsements on the Mortgage Notes held by Custodian and to
complete and record at UBS’s expense the related blank Assignments of Mortgages
relating to the affected Mortgage Loan in accordance with UBS’s instructions,
when applicable, (b) require Custodian to deliver to UBS, Takeout Investor or
Successor Servicer the Submission Packages (or any portion thereof specified by
UBS) in Custodian’s possession or under Custodian’s control to which the
failure relates, and (c)

 

15

 

take such actions under the Electronic Tracking Agreement on behalf of
UBS as are necessary to effectuate the foregoing.

 

Section 7.                                            Access
to Documents.

 

Upon reasonable prior
written notice to Custodian, UBS (or, if applicable, Assignee) and its agents,
accountants, attorneys and auditors will be permitted during normal business
hours to examine and copy at their expense the Submission Packages, documents,
records and other papers in possession of or under the control of Custodian
relating to any or all of the Mortgage Loans in which UBS has an interest.  Upon the request of UBS (or, if applicable,
Assignee) and at the cost and expense of UBS (or, if applicable, Assignee),
Custodian shall provide such UBS (or, if applicable, Assignee) with copies of
the Mortgage Notes, Assignments of Mortgage and other documents in Custodian’s
possession relating to any of the Mortgage Loans in which UBS (or, if
applicable, Assignee) has an interest.

 

Section 8.                                            Custodian’s
Fees and Expenses; Successor Custodian; Standard of Care.

 

(a)           It
is understood that Sellers, jointly and severally, will be charged for
Custodian’s fees for its services under this Agreement in such amounts and in
the manner set forth in the related Purchase Agreement.  Notwithstanding the foregoing, Custodian has
no lien on, and shall not attempt to place a lien on, any of the Mortgage Loans
or proceeds thereof to secure the payment of its fees.

 

(b)           Subject
to the provisions of any other agreement between Custodian and UBS, Custodian
may only resign for cause.  Such
resignation shall take effect upon the earlier of (i) the appointment of a
successor Custodian by UBS and delivery of all the Submission Packages and any
portion of the related documents in Custodian’s possession to the successor
Custodian, and (ii) the delivery of all the Submission Packages and any portion
of the related documents in Custodian’s possession to UBS or its designee
pursuant to (c) below.

 

(c)           In
the event of any such resignation, Custodian shall promptly transfer to the
successor Custodian all Submission Packages and related documents in
Custodian’s possession and the successor Custodian shall hold Submission
Packages and related documents in accordance with this Agreement.  If UBS directs the removal of Custodian, UBS
shall be responsible for all expenses associated with the transfer of the
Submission Packages and any related documents in Custodian’s possession and for
any fee of the successor Custodian in excess of the fees of the initial
Custodian hereunder.  UBS shall have 90
days in which to appoint and designate an acceptable successor Custodian.  If UBS fails to appoint a successor
Custodian within such 90-day period, then Custodian shall deliver possession
and custody of the Submission Packages and any related Submission Packages in
Custodian’s possession to UBS at the address specified on the cover page
hereof, or if a timely written designation is received by Custodian, to any
designee of UBS.

 

(d)           Custodian
shall have responsibility only for the Submission Packages and the contents
thereof which have been actually delivered to it and which have not been
released to Trust, either Seller, UBS, the Agency or Assignee or their
respective agent or designee in

16

 

accordance with this Agreement. 
The standard of care to be exercised by Custodian in the performance of
its duties under this Agreement shall be to exercise the same degree of care as
Custodian exercises when it holds mortgage loan documents as security for its
own loans or its own mortgage warehouse loan customers.  Custodian is an agent, bailee and custodian
only and is not intended to be, nor shall it be construed to be (except only as
agent, bailee and custodian), a representative, trustee or fiduciary of or for
either Trust, Seller, the Agency, UBS or Assignee.

 

(e)           Custodian
shall incur no liability to any Entity for Custodian’s acts or omissions
hereunder, except for liabilities which (i) arise from Custodian’s gross
negligence or willful misconduct or (ii) solely with respect to UBS, which
arise from Custodian negligently or intentionally failing to (A) issue an
accurate Certification Report; provided, however, any such
liability shall not be incurred with respect to the issuance of an inaccurate
Certification Report if the defect causing such inaccuracy would not have been
ascertainable by Custodian applying the procedures expressly set forth in this
Agreement, (B) timely deliver the Submission Package in accordance with the
Delivery Instructions or UBS’s written instructions, as applicable, (C) prevent
the loss, damage or destruction of any document included in a Submission
Package when held by Custodian, (D) perform its obligations under Section 5 or
(E) comply with an Unidentified/Suspension Mortgage Loan Directive; provided,
however, Custodian shall have no liability hereunder if Custodian’s
failure to perform resulted from the inaction or action of any other Entity,
other than Entities that are affiliated with Custodian or are acting under the
direct control of Custodian. 
Custodian’s liability under this Agreement shall be limited to direct
damages resulting from aforesaid.  In
addition Custodian shall not be liable, directly or indirectly, for any losses,
claims, damages, liabilities or expenses which would have been avoided had any
Entity making a claim taken reasonable action to mitigate such losses, claims,
damages, liabilities or expenses or (2) special or consequential damages, even
if Custodian has been advised of the possibility of such damages; provided,
however, that UBS’s direct damages resulting from a decline in the
market value of a Mortgage Loan shall not be deemed special or consequential
damages.

 

(f)            Custodian
shall be entitled to rely upon the advice of its legal counsel from time to
time and shall not be liable for any action or inaction by it in reliance upon
such advice.  Custodian also shall be
entitled to rely upon any notice, document, correspondence, request or
directive received by it from Trust, either Seller, Takeout Investor, UBS or Assignee,
as the case may be, that Custodian believes to be genuine and to have been
signed or presented by the proper and duly authorized officer or representative
thereof, and shall not be obligated to inquire as to the authority or power of
any person so executing or presenting such documents or as to the truthfulness
of any statements set forth therein.

 

(g)           Each
Seller, jointly and severally, hereby indemnifies, defends and holds Custodian,
UBS, the Note Purchasers, the Noteholders, the Servicers and the Trust, and
each of their respective officers, directors, employees, agents, trustees and
advisors harmless from and against any claim, legal action, liability or loss
that is initiated against or incurred by it or them, including court costs and
reasonable attorney’s fees and disbursements, in connection with Custodian’s
performance of its duties under this Agreement, including those involving
ordinary negligence, but excluding those involving gross negligence or willful
misconduct of Custodian.  The foregoing
indemnification shall survive any resignation or removal of the Custodian or
the termination or assignment of this Custodial Agreement

 

17

 

(h)           Custodian
undertakes to perform such duties and only such duties as are specifically set
forth in this Agreement, it being expressly understood that there are no
implied duties hereunder.

 

Section 9.                                            Assignment
by UBS.

 

UBS may assign, pledge or
grant a security interest in any or all of its rights under this Agreement and
the Electronic Tracking Agreement  to
one or more Assignees in connection with the assignment, pledge or grant of a
security interest in a Mortgage Loan and the related Mortgage Loan and
Assignment of Mortgage.  Trust and the
related Seller hereby irrevocably consent to such assignment.  Subject to any limitations in any agreement
between Assignee and UBS, Assignee may, upon notice of UBS’s default as
provided in Section 3(b) hereof, directly enforce and exercise such rights
under this Agreement that have been assigned or pledged to it or are the
subject of a security interest granted to it and, until otherwise notified by
Assignee, UBS shall no longer have any of such rights.  Custodian shall assume that any assignment
from UBS to Assignee is subject to no limitations that are not expressly set
forth in this Agreement.

 

Section 10.                                      Insurance.

 

Custodian shall, at its
own expense, maintain at all times during the existence of this Agreement (a)
fidelity insurance, (b) theft of documents insurance, (c) forgery insurance and
(d) errors and omissions insurance. All such insurance shall be in amounts,
with standard coverage and subject to deductibles, all as is customary for
insurance typically maintained by banks which act as custodians and be in such
amounts and with insurance companies reasonably acceptable to UBS.  A certificate of the respective insurer as
to each such policy, with a copy of such policy attached, shall be furnished to
UBS, upon request, containing the insured’s statement or endorsement that such
insurance shall not terminate prior to receipt by UBS, by registered mail, of
30 days’ notice thereof.

 

Section 11.                                      Representations,
Warranties and Covenants.

 

(a)           By
Custodian.  Custodian hereby
represents and warrants to, and covenants with, Trust, each Seller and UBS
that, as of the date hereof and at all times while Custodian is performing
services under this Agreement:

 

(i)            Custodian is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation
or organization; and

 

(ii)           Custodian has the full power and
authority to hold each Mortgage Loan and to execute, deliver and perform, and
to enter into and perform its duties and obligations as contemplated by, this
Agreement, has duly authorized the execution, delivery and performance of this
Agreement and has duly executed and delivered this Agreement, and this
Agreement constitutes a legal, valid and binding obligation of Custodian,
enforceable against it in accordance with its terms, except as the enforcement
thereof may be limited by applicable receivership, conservatorship or similar
debtor relief laws and except that certain equitable remedies may not be
available regardless of whether enforcement is sought in equity or law.

 

18

 

(iii)          Neither the execution and delivery by
Custodian of this Agreement, nor the consummation by Custodian of any of the
transactions contemplated hereby, nor the fulfillment by Custodian of the terms
hereof, will conflict with, or violate, result in a material breach of or
constitute a material default (with or without notice or lapse of time, or
both) under (i) any term or provision of the Certificate of Incorporation or
By-laws of Custodian or any governmental rule applicable to Custodian or (ii)
any term or provision of any indenture or other agreement or instrument, to
which Custodian is a party or by which Custodian or any material portion of its
properties are bound.  No governmental
action is required by or with respect to Custodian in connection with the
execution and delivery of this Agreement by Custodian or the consummation by
Custodian of the transactions contemplated hereby.

 

(b)           By
Trust.  Trust hereby represents and
warrants to, and covenants with, Custodian, each Seller and UBS that, as of the
date hereof and throughout the term of this Agreement:

 

(i)            Trust is duly organized, validly
existing and in good standing under the laws of the jurisdiction of
organization; and

 

(ii)           Trust has the full power and authority
to hold each Mortgage Loan and to execute, deliver and perform, and to enter
into and consummate all transactions contemplated by, this Agreement, has duly
authorized the execution, delivery and performance of this Agreement and has
duly executed and delivered this Agreement, and this Agreement constitutes a
legal, valid and binding obligation of Trust, enforceable against it in
accordance with its terms, except as the enforcement thereof may be limited by
applicable receivership, conservatorship or similar debtor relief laws and
except that certain equitable remedies may not be available regardless of
whether enforcement is sought in equity or law.

 

(c)           By
UBS.  UBS hereby represents and
warrants to, and covenants with, Custodian and Seller that, as of the date
hereof and throughout the term of this Agreement:

 

(i)            UBS is acquiring the Mortgage Loans,
the Notes or the Participation Certificates for its own account only and not
for any other person;

 

(ii)           UBS considers itself a substantial,
sophisticated institutional investor having such knowledge and experience in
financial and business matters that it is capable of evaluating the merits and
risks of investment in the Mortgage Loans;

 

(iii)          UBS has been furnished with all
information regarding the related Mortgage Loans that it has requested from
Seller;

 

(iv)          UBS is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation; and

 

(v)           UBS has the full power and authority
to hold each Mortgage Loan or Note, as applicable, and to execute, deliver and
perform, and to enter into and consummate all transactions contemplated by,
this Agreement, has duly authorized the

 

19

 

execution, delivery and performance of this Agreement
and has duly executed and delivered this Agreement, and this Agreement
constitutes a legal, valid and binding obligation of UBS, enforceable against
it in accordance with its terms, except as the enforcement thereof may be
limited by applicable receivership, conservatorship or similar debtor relief
laws and except that certain equitable remedies may not be available regardless
of whether enforcement is sought in equity or law.

 

(d)           By
Sellers.  Each Seller hereby
represents and warrants to, and covenants with, Custodian and UBS that, as of
the date hereof and throughout the term of this Agreement:

 

(i)            Such Seller is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
incorporation; and

 

(ii)           Such Seller has the full power and
authority to hold each Mortgage Loan and to execute, deliver and perform, and
to enter into and consummate all transactions contemplated by, this Agreement,
has duly authorized the execution, delivery and performance of this Agreement
and has duly executed and delivered this Agreement, and this Agreement
constitutes a legal, valid and binding obligation of such Seller, enforceable
against it in accordance with its terms, except as the enforcement thereof may
be limited by applicable receivership, conservatorship or similar debtor relief
laws and except that certain equitable remedies may not be available regardless
of whether enforcement is sought in equity or law.

 

Section 12.                                      No
Adverse Interests.

 

By its acceptance of each
Submission Package, Custodian covenants and warrants to UBS that: (a) as of the
date of payment by UBS of the Release Payment, Custodian, solely in its
capacity as Custodian, (i) holds no adverse interests, by way of security or
otherwise, in the related Mortgage Loan, and (ii) has no interest in or lien
upon the Submission Packages which it holds as custodian for UBS; and
(b) Custodian hereby waives and releases any such interest in such
Mortgage Loan which it, acting solely in its capacity as Custodian, has or
which it may thereafter acquire prior to the time of release of such Mortgage
Loan from the terms of this Agreement.

 

Section 13.                                      Amendments.

 

This Agreement may be
amended only by written agreement of Trust, each Seller, UBS and Custodian
except that, if this Agreement shall have been assigned by UBS with written
notice of such assignment given to Trust, each Seller and Custodian, no
amendment shall be effective unless the amendment is also signed by
Assignee.  UBS shall give at least five
(5) days’ prior written notice to Assignee of any proposed amendment to this
Agreement and shall furnish Assignee with a copy of each such amendment within
five (5) days after it is executed and delivered.  This Agreement, together with the Exhibits, Schedules and other
writings referred to herein or delivered pursuant hereto, constitutes the
entire agreement between the parties hereto with respect to the subject matter
hereof and supersedes all prior agreements and understandings, both written and
oral, between the parties with respect to the subject matter hereof.

 

20

 

Section 14.                                      Execution
in Counterparts.

 

This Agreement may be
executed in any number of counterparts, each of which shall be deemed an
original, but all of which shall constitute one and the same instrument.

 

Section 15.                                      Agreement
for Exclusive Benefit of Parties; Assignment.

 

This Agreement is for the
exclusive benefit of the parties hereto and their respective successors and
permitted assigns hereunder and shall not be deemed to give any legal or
equitable right, remedy or claim to any other person whatsoever.  This Agreement shall bind the parties hereto
and their respective successors, but, except for the assignments provided in
Sections 3(b) and 9, shall not be assigned or pledged by any party without the
prior written consent of the other parties. 
Written notice from Assignee to Custodian (with a copy to UBS) that UBS
has defaulted in any material respect under any funding or loan agreement
relating to the financing of UBS’s purchase of Mortgage Loans shall be
conclusive for all purposes of this Agreement and after receipt of such notice,
Custodian shall act in accordance with the written instructions of the Assignee
with respect to the related Mortgage Files.

 

Section 16.                                      Effect
of Invalidity of Provisions.

 

In case any one or more
of the provisions contained in this Agreement should be or become invalid,
illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein or therein shall in
no way be affected, prejudiced or disturbed thereby.

 

Section 17.                                      Governing
Law.

 

This Agreement shall be
governed by and construed in accordance with the laws of the State of New York,
without regard to conflict of laws rules.

 

Section 18.                                      Consent
to Service.

 

Each party irrevocably
consents to the service of process by registered or certified mail, postage
prepaid, to it at its address given in or pursuant to Section 22.

 

Section 19.                                      Submission
to Jurisdiction.

 

With respect to any claim
arising out of this Agreement each party (a) irrevocably submits to the
nonexclusive jurisdiction of the courts of the State of New York and the United
States District Court located in the Borough of Manhattan in New York City, and
(b) irrevocably waives (i) any objection which it may have at any time to the
laying of venue of any suit, action or proceeding arising out of or relating
hereto brought in any such court, (ii) any claim that any such suit, action or
proceeding brought in any such court has been brought in any inconvenient forum
and (iii) the right to object, with respect to such claim, suit, action or
proceeding brought in any such court, that such court does not have
jurisdiction over such party.

 

21

 

Section 20.                                      Jurisdiction
Not Exclusive.

 

Nothing herein will be
deemed to preclude any party hereto from bringing an action or proceeding in
respect of this Agreement in any other jurisdiction other than as set forth in
Section 19.

 

Section 21.                                      WAIVER
OF JURY TRIAL.

 

EACH PARTY HERETO
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND
ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT, ANY OTHER AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 22.                                      Notices.

 

Any notices, consents,
directions and other communications given under this Agreement shall be in
writing and shall be deemed to have been duly given when delivered by facsimile
(upon receipt of electronic confirmation) or electronic transmission,
personally delivered or sent by overnight courier to the addresses of the
parties hereto set forth on the signature pages hereof or such other address as
any party shall give in a notice to the other parties pursuant to this Section
22.

 

Section 23.                                      Certification.

 

Custodian hereby
acknowledges that each time it enters the Approval Code on a Request for
Certification in the “Approval Code” column, it is making an express
representation and warranty to UBS that it has performed the Certification as
specified in Sections 4(a) and (b) with respect to the related Mortgage Loan.

 

Section 24.                                      Authorized
Representatives.

 

Each individual
designated as an authorized representative of UBS or its successors or assigns,
Seller and Custodian, respectively (an “Authorized Representative”), is
authorized to give and receive notices, requests and instructions and to
deliver certificates and documents in connection with this Agreement on behalf
of UBS, Seller and Custodian, as the case may be, and the specimen signature
for each such Authorized Representative, initially authorized hereunder, is set
forth on Exhibits Q, R and S hereof, respectively.  From time to time, UBS, Seller and Custodian or their respective successors
or permitted assigns may, by delivering to the others a revised annex, change
the information previously given pursuant to this Section 24, but each of the
parties hereto shall be entitled to rely conclusively on the then current annex
until receipt of a superseding annex.

 

Section 25.                                      Construction.

 

The headings in this
Agreement are for convenience only and are not intended to influence its
construction.  References to Sections
and Exhibits in this Agreement are to the Sections of and Exhibits to this
Agreement.  The Exhibits are part of
this Agreement.  In this

 

22

 

Agreement, the singular includes the plural, the plural the singular,
and the words “and” and “or” are used in the conjunctive or disjunctive as the
sense and circumstances may require.

 

Section 26.                                      No
Recourse.

 

It is expressly
understood and agreed by the parties hereto that (a) this Agreement is executed
and delivered by Wilmington Trust Company, not individually or personally but solely
as trustee of Trust, in the exercise of the powers and authority conferred and
vested in it, (b) each of the representations, undertakings and agreements
herein made on the part of Trust is made and intended not as personal
representations, undertakings and agreements by Wilmington Trust Company but is
made and intended for the purpose of binding only Trust, (c) nothing herein
contained shall be construed as creating any liability on Wilmington Trust
Company, individually or personally, to perform any covenant either expressed
or implied contained herein, all such liability, if any, being expressly waived
by the parties hereto and by any Person claiming by, through or under the
parties hereto and (d) under no circumstances shall Wilmington Trust Company be
personally liable for the payment of any indebtedness or expenses of Trust or
be liable for the breach or failure of any obligation, representation, warranty
or covenant made or undertaken by Trust under this Agreement or any other
related documents.

 

23

 

IN WITNESS WHEREOF,
Trust, Seller, UBS and Custodian have caused this Agreement to be duly executed
as of the date and year first above written.

 

	
   

  	
  MORTGAGEIT SPV I

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Wilmington Trust
  Company, not in its

  individual capacity, but solely as Owner Trustee

  under the Trust Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Janel R.
  Havrilla

  	
   

  
	
   

  	
   

  	
  Name: Janel R.
  Havrilla

  
	
   

  	
   

  	
  Title: Financial
  Services Officer

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
   

  
	
   

  	
  MortgageIT SPV I

  
	
   

  	
  c/o Wilmington
  Trust Company

  
	
   

  	
  Rodney Square
  North

  
	
   

  	
  1100 North
  Market Street

  
	
   

  	
  Wilmington,
  Delaware 19890

  
	
   

  	
  Attention:  Corporate Trust Administration

  
	
   

  	
  Telecopy
  No.:  (302) 636-4140 or (302) 636-4141

  
	
   

  	
  Telephone
  No.:  (302) 651-1000

  
	
   

  	
   

  
	
   

  	
  With a copy to:

  
	
   

  	
   

  
	
   

  	
  MortgageIT SPV I

  
	
   

  	
  c/o MortgageIT,
  Inc.

  
	
   

  	
  33 Maiden Lane

  
	
   

  	
  New York, NY
  10038

  
	
   

  	
  Attention:  Michael A. Zigrossi and John R. Cuti

  
	
   

  	
  Telecopier
  No.:  (212) 651-4674

  
	
   

  	
  Telephone
  No.:  (212) 651-4689

  

 

 

	
   

  	
  MORTGAGEIT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JOHN R. CUTI

  	
   

  
	
   

  	
   

  	
  Name: John R.
  Cuti

  
	
   

  	
   

  	
  Title: Secretary

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
   

  
	
   

  	
  33 Maiden Lane

  
	
   

  	
  New York, NY
  10038

  
	
   

  	
  Attention:  Michael A. Zigrossi and John R. Cuti

  
	
   

  	
  Telecopier
  No.:  (212) 651-4674

  
	
   

  	
  Telephone
  No.:  (212) 651-4689

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MORTGAGEIT
  HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JOHN R. CUTI

  	
   

  
	
   

  	
   

  	
  Name: John R.
  Cuti

  
	
   

  	
   

  	
  Title: Secretary

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
   

  
	
   

  	
  33 Maiden Lane

  
	
   

  	
  New York, NY
  10038

  
	
   

  	
  Attention:  Michael A. Zigrossi and John R. Cuti

  
	
   

  	
  Telecopier
  No.:  (212) 651-4674

  
	
   

  	
  Telephone
  No.:  (212) 651-4689

  

 

 

	
   

  	
  UBS REAL ESTATE
  SECURITIES INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ GEORGE A.
  MANGIARACINA

  	
   

  
	
   

  	
   

  	
  Name:

  	
  George A.
  Mangiaracina

  
	
   

  	
   

  	
  Title:

  	
  Managing
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ROBERT
  CARPENTER

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert Carpenter

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
   

  
	
   

  	
  1285 Avenue of
  the Americas

  
	
   

  	
  New York, New
  York 10019

  
	
   

  	
  Attention:

  	
  Robert Carpenter

  
	
   

  	
   

  	
  George A.
  Mangiaracina

  
	
   

  	
  Telecopier
  No.:  212-713-9607

  
	
   

  	
  Telephone
  No.:  212-713-3734 or 212-713-8749

  
						

 

 

	
   

  	
  JPMORGAN CHASE
  BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark Pullen

  	
   

  
	
   

  	
   

  	
  Name: Mark
  Pullen

  
	
   

  	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
   

  
	
   

  	
  4 New York Plaza

  
	
   

  	
  (13th Floor)

  
	
   

  	
  New York, NY
  10004

  

 

 

EXHIBIT A

 

DRY SUBMISSION PACKAGE

 

With respect to each
Mortgage Loan being offered for sale or being pledged by Trust to UBS, Trust
shall deliver and release (or shall cause the related Seller to deliver and
release) to Custodian the following documents:

 

(i)                       The
original Mortgage Note bearing all intervening endorsements, endorsed “Pay to
the order of
                  
without recourse” and signed in the name of the last endorsee (the “Last
Endorsee”) by an authorized Person (in the event that the Mortgage Loan was
acquired by the Last Endorsee in a merger, the signature must be in the
following form:  “[Last Endorsee],
successor by merger to [name of predecessor]”; in the event that the Mortgage
Loan was acquired or originated by the Last Endorsee while doing business under
another name, the signature must be in the following form:  “[Last Endorsee], formerly known as
[previous name]”);

 

(ii)                    A copy of the
Mortgage or, with respect to a Cooperative Loan, the Proprietary Lease, naming
(i) such Seller, or, (ii) if such Seller was not the originator, the originator
or, (iii) with respect to MERS Designated Mortgage Loans, MERS, as the
“mortgagee” or “beneficiary” thereof, and either bearing evidence that such
instrument has been recorded in the appropriate jurisdiction where the property
with respect to the Mortgage Property is located or a duplicate or conformed
copy of the Mortgage or Proprietary Lease, as applicable, together with a
certificate from the recorder’s office, certifying that any such copy
represents a true and correct reproduction of the original of such instrument
and that such original has been duly recorded or delivered for recordation in the
appropriate records of the jurisdiction where the Mortgaged Property is located
and, with respect to MERS Designated Mortgage Loans, the requirements set forth
in the Electronic Tracking Agreement have been satisfied and Custodian shall
confirm that each MERS Designated Mortgage Loan has been issued a MERS
Identification Number;

 

(iii)                 If such Seller
did not originate the Mortgage Loan, all original intervening assignments duly
executed and acknowledged and in recordable form, which together with the Assignment
of Mortgage, evidence the chain of mortgage assignments from the originator of
the Mortgage Loan to such Seller, (or, in the case of a MERS Designated
Mortgage Loan, MERS), and/or copies of all such intervening mortgage
assignments, together with a certificate from the recorder’s office, certifying
that any such copy represents a true and correct reproduction of the original
of such instrument and that such original has been duly recorded in the
appropriate records of the jurisdiction where the Mortgaged Property is
located;

 

A-1

 

(iv)                Except
in the case of a MERS Designated Mortgage Loan, the original Assignment of
Mortgage in blank for each Mortgage Loan, in form and substance acceptable for
recording and signed in the name of the Last Endorsee (in the event that the
Mortgage Loan was acquired by the Last Endorsee in a merger, the signature must
be in the following form:  “[Last
Endorsee], successor by merger to [name of predecessor]”; in the event that the
Mortgage Loan was acquired or originated while doing business under another
name, the signature must be in the following form:  “[Last Endorsee], formerly known as [previous name]”);

 

(v)                   The
original attorney’s opinion of title and abstract of title or the original
mortgagee title insurance policy, or if the original mortgagee title insurance
policy has not been issued, the irrevocable commitment to issue the same;

 

(vi)                With
respect to each Cooperative Loan:

 

(1)                                  the
original Security Agreement and the assignment of the Security Agreement in
blank;

 

(2)                                  the
original stock certificate evidencing the ownership of the Cooperative
Apartment, endorsed or accompanied by a stock power relating to such stock
certificate executed in blank;

 

(3)                                  a
Recognition Agreement in substantially the same form as the standard “AZTECH”
form and the assignment of the Recognition Agreement (or a blanket assignment
of all Recognition Agreements) in blank;

 

(4)                                  copies
of the UCC-1 financing statement filed by the applicable originator of such
Mortgage Loan as secured party and, if applicable, a filed UCC-3 assignment of
the subject security interest showing a complete chain of title, together with
an executed UCC-3 Assignment of such security interest by such Seller in a form
sufficient for filing; and

 

(5)                                  such
other documents as are necessary for the perfection of a lien against the
related Cooperative Ownership Interest under applicable law; and

 

(vii)             If
any of the above documents has been executed by a person holding a power of
attorney, an original or photocopy of such power certified by such Seller to be
a true and correct copy thereof.

 

In the event that
Trust or the related Seller cannot deliver an original or copy of any document
(certified by the recording office) submitted for recordation to the
appropriate public recording office within the specified period due to a delay
caused by the recording office in the applicable jurisdiction, provided that
Trust or the related Seller shall deliver to UBS, within 180 days of the
Delivery Date, an Officer’s Certificate which shall (i) identify the recorded document,
(ii) state

 

A-2

 

that the recorded
document has not been delivered to Custodian due solely to a delay caused by
the public recording office, (iii) state the amount of time generally required
by the applicable recording office to record and return a document submitted
for recordation, (iv) specify the anticipated date the applicable recorded
document will be delivered to Custodian and (v) such document must be delivered
within 180 days of the related Delivery Date.

 

All documents
delivered to Custodian have been and as to future deliveries will be placed by
Seller in an appropriate file folder, properly secured, and clearly marked with
Seller’s loan number identifying such Mortgage Loan.

 

In those cases
where a copy of a Mortgage or Proprietary Lease, as applicable, or any
intervening mortgage assignment, or an unrecorded original of any intervening
mortgage assignment are delivered to Custodian, Trust or the related Seller
shall cause the original of such instrument to be recorded.

 

A-3

 

EXHIBIT
B-1

 

CASH WINDOW SUBMISSION PACKAGE

 

With
respect to each Mortgage Loan being offered for sale or being pledged by Trust
to UBS pursuant to a Cash Window Transaction, Trust shall deliver and release
(or shall cause the related Seller to deliver and release) to Custodian the
following documents:

 

(i)                       The
original Mortgage Note bearing all intervening endorsements, endorsed “Pay to
the order of
              
without recourse” and signed in the name of the last endorsee (the “Last
Endorsee”) by an authorized Person (in the event that the Mortgage Loan was
acquired by the Last Endorsee in a merger, the signature must be in the
following form:  “[Last Endorsee], successor
by merger to [name of predecessor]”; in the event that the Mortgage Loan was
acquired or originated by the Last Endorsee while doing business under another
name, the signature must be in the following form:  “[Last Endorsee], formerly known as [previous name]”) and if
Freddie Mac is the Agency for the related Mortgage Loan, the Freddie Mac loan
number should appear on the top right hand corner of the Mortgage Note;

 

(ii)                    A
copy of the Mortgage or, with respect to a Cooperative Loan, the Proprietary Lease,
naming (i) such Seller, or, (ii) if such Seller was not the originator, the
originator or, (iii) with respect to MERS Designated Mortgage Loans, MERS, as
the “mortgagee” or “beneficiary” thereof, and either bearing evidence that such
instrument has been recorded in the appropriate jurisdiction where the property
with respect to the Mortgage Property is located or a duplicate or conformed
copy of the Mortgage or Proprietary Lease, as applicable, together with a
certificate from the recorder’s office, certifying that any such copy
represents a true and correct reproduction of the original of such instrument
and that such original has been duly recorded or delivered for recordation in
the appropriate records of the jurisdiction where the Mortgaged Property is
located and, with respect to MERS Designated Mortgage Loans, the requirements
set forth in the Electronic Tracking Agreement have been satisfied; provided
that with respect to a MERS Designated Mortgage Loan, Custodian shall confirm
that such Mortgage Loan has been issued a MERS Identification Number;

 

(iii)                 If
such Seller did not originate the Mortgage Loan, all original intervening
assignments duly executed and acknowledged and in recordable form, which
together with the Assignment of Mortgage, evidence the chain of mortgage
assignments from the originator of the Mortgage Loan to such Seller, (or, in
the case of a MERS Designated Mortgage Loan, MERS), and/or copies of all such
intervening mortgage assignments, together with a certificate from the recorder’s
office, certifying that any such copy represents a true and correct
reproduction of the original of such instrument and that such original has been
duly recorded in the appropriate records of the jurisdiction where the
Mortgaged Property is located;

 

B-1-1

 

(iv)                Except
in the case of a MERS Designated Mortgage Loan, the original Assignment of
Mortgage in blank (with respect to each Mortgage Loan (except MERS Designated
Mortgage Loans) that has been designated for sale to Fannie Mae, to Fannie Mae)
for each Mortgage Loan, in form and substance acceptable for recording and
signed in the name of the Last Endorsee (in the event that the Mortgage Loan
was acquired by the Last Endorsee in a merger, the signature must be in the
following form:  “[Last Endorsee],
successor by merger to [name of predecessor]”; in the event that the Mortgage
Loan was acquired or originated while doing business under another name, the
signature must be in the following form: 
“[Last Endorsee], formerly known as [previous name]”), ]”);

 

(v)                   If
any of the above documents has been executed by a person holding a power of
attorney, an original or photocopy of such power certified by such Seller to be
a true and correct copy thereof.

 

(vi)                The
original attorney’s opinion of title and abstract of title or the original
mortgagee title insurance policy, or if the original mortgagee title insurance
policy has not been issued, the irrevocable commitment to issue the same;

 

(vii)             A
Warehouse Lender’s Release, from any Warehouse Lender having a security
interest in the Mortgage Loans or, if there is no Warehouse Lender with respect
to such Mortgage Loans, a Trust’s Release, from such Seller, addressed to UBS,
releasing any and all right, title and interest in such Mortgage Loans;

 

(viii)          Delivery
Instructions;

 

(ix)                  A
copy of a Confirmation;

 

(x)                     The
Applicable Agency Documents, listed on Exhibit B-2 and Exhibit B 3; and

 

(xi)                  With
respect to each Cooperative Loan:

 

(1)                                  the
original Security Agreement and the assignment of the Security Agreement in
blank;

 

(2)                                  the
original stock certificate evidencing the ownership of the Cooperative
Apartment, endorsed or accompanied by a stock power relating to such stock
certificate executed in blank;

 

(3)                                  a
Recognition Agreement in substantially the same form as the standard “AZTECH”
form and the assignment of the Recognition Agreement (or a blanket assignment
of all Recognition Agreements) in blank;

 

B-1-2

 

(4)                                  copies
of the UCC-1 financing statement filed by the applicable originator of such
Mortgage Loan as secured party and, if applicable, a filed UCC-3 assignment of
the subject security interest showing a complete chain of title, together with
an executed UCC-3 Assignment of such security interest by such Seller in a form
sufficient for filing; and

 

(5)                                  such
other documents as are necessary for the perfection of a lien against the
related Cooperative Ownership Interest under applicable law.

 

In the event that
Trust or the related Seller cannot deliver an original or copy of any document
(certified by the recording office) submitted for recordation to the
appropriate public recording office within the specified period due to a delay
caused by the recording office in the applicable jurisdiction, provided that
Trust or the related Seller shall deliver to UBS, within 180 days of the
Delivery Date, an Officer’s Certificate which shall (i) identify the recorded
document, (ii) state that the recorded document has not been delivered to
Custodian due solely to a delay caused by the public recording office, (iii)
state the amount of time generally required by the applicable recording office
to record and return a document submitted for recordation, (iv) specify the
anticipated date the applicable recorded document will be delivered to
Custodian and (v) such document must be delivered within 180 days of the
related Delivery Date.

 

All documents
delivered to Custodian will be placed by Seller in an appropriate file folder,
properly secured, and clearly marked with Seller’s appropriate Freddie Mac or
Fannie Mae loan number identifying such Mortgage Loan in the form and order
required by the Agency.  In those cases
where a copy of any intervening mortgage assignment, or an unrecorded original
of any intervening mortgage assignment are delivered to Custodian, Trust or the
related Seller shall cause the original of such instrument to be recorded.

 

B-1-3

 

EXHIBIT
B-2

 

FREDDIE MAC DOCUMENT LIST

 

(i)             Freddie
Mac Form 1034 (Custodial Certification Schedule).

 

(ii)          Freddie
Mac Form 996 (Warehouse Lender Release of Security Interest).(1)

 

(iii)       Freddie Mac Form 987 (Wire Transfer
Authorization for a Cash Warehouse Delivery).

 

(1)                                  Consisting
either of the form submitted by Trust or the related to Custodian naming UBS as
Warehouse Lender or substituted form completed by Custodian UBS as Warehouse
Lender.

 

B-2-1

 

EXHIBIT
B-3

 

FANNIE MAE DOCUMENT LIST

 

Fannie Mae Form 1068
(Fixed-Rate, Graduated-Payment, or Growing-Equity Mortgage Loan Schedule) or
Fannie Mae Form 1069 (Adjustable-Rate Mortgage Loan Schedule).

 

B-3-1

 

EXHIBIT
B-4

 

[LETTERHEAD OF UBS]

 

FANNIE MAE MASTER BAILEE LETTER

 

           
   , 200   

 

JPMorgan Chase Bank

4 Metrotech Center

Brooklyn, New York 11245

Attention:  Mark Pullen

 

Ladies and Gentlemen:

 

In
connection with its Conforming Whole Loan Purchase:  Cash Window Program, the undersigned UBS Real Estate Securities
Inc. (“UBS”) shall from time to time, cause JPMorgan Chase Bank, as custodian
(“Custodian”), to deliver to the Federal National Mortgage Association (“Fannie
Mae”) original promissory notes (“Mortgage Notes”) evidencing certain mortgage
loans (“Mortgage Loans”), along with certain other documents comprising the
related files (“Mortgage Documents”). 
Custodian is hereby instructed to prepare and insert a Notice of
Bailment in the form of Schedule A hereto with respect to each Mortgage
Loan (“Notice of Bailment”), in each file of Mortgage Documents delivered by
Custodian to Fannie Mae.

 

Except
as otherwise provided herein, each Mortgage Document so delivered to Fannie Mae
is to be held by Fannie Mae, as agent for Custodian, and subject to only UBS’s
direction and control.

 

Upon
UBS’s receipt of all of the proceeds from the sale of a Mortgage Loan in
accordance with the wiring instructions set forth in Fannie Mae’s Form 482 or
1068 all of UBS’s legal or equitable interest in the Mortgage Loan shall
terminate.

 

The
persons listed on the attached Schedule B are the authorized
representatives (“Authorized Representatives”) of UBS.  Custodian shall not honor any communication
relating to a Mortgage Loan, which is not confirmed by the written or
telephonic consent, confirmed in writing at the request of Custodian, of an
Authorized Representative of UBS.

 

B-4-1

 

Please
execute and return the enclosed copy of this Master Bailee Letter in the
enclosed self-addressed envelope.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  UBS REAL ESTATE
  SECURITIES INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Agreed to:

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK

  
	
   

  	
  (Custodian)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
  Dated:  As of the date first set forth above

  

 

B-4-2

 

SCHEDULE A

TO EXHIBIT B-4

 

NOTICE OF BAILMENT

 

[Fannie Mae Address]

 

	
  Re:

  	
  [Insert Description of Loan, including
  Borrower’s Name,

  	
   

  
	
   

  	
  Loan Amount and Fannie Mae’s Loan Number]

  	
   

  

 

Ladies and
Gentlemen:

 

Pursuant
to the Master Bailee Letter, dated
              
   , 200   (the “Master Bailee Letter”), between UBS
Real Estate Securities Inc. (“UBS”) and JPMorgan Chase Bank, (the “Custodian”),
you are hereby notified that the enclosed original promissory note with respect
to the referenced loan together with certain other documents comprising the
related file with respect to that loan (the “Mortgage Documents”) being hereby
delivered to you herewith are to be held by you as agent of Custodian (which
holds the Mortgage Documents as custodian and bailee for the benefit of UBS).

 

Any
Mortgage Documents (or portion thereof) not purchased by you in accordance with
the provisions of the Fannie Mae Guide shall be sent to Custodian by overnight
courier to:  [insert address for return of documents].

 

Any
questions relating to the Mortgage Documents should be referred to UBS at (212)
713 2419.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

B-4-3

 

SCHEDULE B

TO EXHIBIT B-4

 

AUTHORIZED REPRESENTATIVES OF UBS

 

	
  Name

  	
   

  	
  Title

  	
   

  	
  Authorized Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

B-4-4

 

EXHIBIT C-1

 

CONDUIT SUBMISSION PACKAGE

 

With
respect to each Mortgage Loan being offered for sale or being pledged by Trust
to UBS, pursuant to a Conduit Transaction, Trust shall, or shall cause the
related Seller to, deliver and release to Custodian the following documents:

 

(i)                                     The
original Mortgage Note endorsed, “Pay to the order of
                            ,
without recourse” and signed in the name of such Seller by an authorized
officer and, if such Seller did not originate the Mortgage Loan, bearing an
unbroken chain of endorsements from the originator thereof to such Seller; (if
applicable) the original assumption agreement, together with the original of
any surety agreement or guaranty agreement relating to the Mortgage Note or any
such assumption agreement, and if the Mortgage Note has been signed by a third
party on behalf of the Mortgagor, the original power of attorney or other
instrument that authorized and empowered such Entity to sign or a copy of such
power of attorney together with an officer’s certificate (or a certificate from
the recorder’s office) certifying that such copy presents a true and correct
reproduction of the original and that such original has been duly recorded or
delivered for recordation in the appropriate records of the jurisdiction in
which the related Mortgaged Property is located;

 

(ii)                                  A
Mortgage meeting one of the following requirements:

 

(A)                              The
original Mortgage bearing evidence that the Mortgage has been duly recorded in
the records of the jurisdiction in which the Mortgaged Property is located; or

 

(B)                                A
copy of the Mortgage or, with respect to a Cooperative Loan, the Proprietary
Lease, together with an officer’s certificate (which may be a blanket officer’s
certificate of such Seller covering all such Mortgage Loans), or a certificate
from the recorder’s office, certifying that such copy represents a true and
correct reproduction of the original Mortgage or Proprietary Lease, as
applicable, and that such original has been duly recorded or delivered for
recordation in the appropriate records of the jurisdiction in which the
Mortgaged Property is located; or

 

(C)                                With
respect to each MERS Designated Mortgage Loan, the requirements set forth in
the Electronic Tracking Agreement have been satisfied.

 

(iii)                               If such Seller did not
originate the Mortgage Loan, all original intervening assignments duly executed
and acknowledged and in recordable form, which together with the Assignment of
Mortgage, evidence the chain of mortgage assignments from the originator of the
Mortgage Loan to such Seller (or, in the case of a MERS Designated Mortgage
Loan, MERS), and/or two copies of each such intervening mortgage assignments,
each copy together with an officer’s certificate, or a certificate from the
recorder’s office, certifying that such copy represents a true and correct
reproduction of the original of such instrument and that such original has been
duly recorded or delivered for recordation in the appropriate records of the
jurisdiction where the Mortgaged Property is located;

 

C-1-1

 

(iv)                              Except
in the case of a MERS Designated Mortgage Loan, an original Assignment of
Mortgage, in blank, in recordable form but unrecorded and signed in the name of
such Seller by an authorized officer;

 

(v)                                 A
Warehouse Lender’s Release, from any Warehouse Lender having a security
interest in the Mortgage Loans or, if there is no Warehouse Lender with respect
to such Mortgage Loans, a Trust’s Release, addressed to UBS, releasing any and
all right, title and interest in such Mortgage Loans;

 

(vi)                              Delivery
Instructions;

 

(vii)                           A copy of a Commitment;

 

(viii)                        A copy of a Confirmation;

 

(ix)                                Each
Mortgage Loan, as identified by such Seller, relating to a Mortgage Note with
an original principal amount in excess of 80% of the appraised value of the
related Mortgaged Property at the time of origination of such Mortgage Loan,
either (A) an original of the certificate/commitment of Primary Mortgage
Insurance Policy, issued by the applicable insurer, without verification of the
expiration date thereon, or (B) an Officer’s Certificate (which may be a
blanket Officer’s Certificate of such Seller covering all such Mortgage Loans),
certifying that an appraisal report has been obtained by such Seller which
shows that the appraised value of the Mortgage Property is such that the
outstanding principal balance of such Mortgage Note is less than 80% of such
appraised value;

 

(x)                                   An
Underwriter’s Form;(1)

 

(xi)                                With
respect to each Cooperative Loan:

 

(1)                                  the
original Security Agreement and the assignment of the Security Agreement in
blank;

 

(2)                                  the
original stock certificate evidencing the ownership of the Cooperative
Apartment, endorsed or accompanied by a stock power relating to such stock
certificate executed in blank;

 

(3)                                  a
Recognition Agreement in substantially the same form as the standard “AZTECH”
form and the assignment of the Recognition Agreement (or a blanket assignment
of all Recognition Agreements) in blank;

 

(4)                                  copies
of the UCC-1 financing statement filed by the applicable originator of such
Mortgage Loan as secured party and, if applicable, a filed UCC-3 assignment of
the subject security

 

(1)                                  Not
applicable to Submission Packages in which the Delivery Instructions require
delivery of the Submission Package to Springfield, Illinois.

 

C-1-2

 

interest showing a complete chain of title, together
with an executed UCC-3 Assignment of such security interest by such Seller in a
form sufficient for filing; and

 

(5)                                  such
other documents as are necessary for the perfection of a lien against the
related Cooperative Ownership Interest under applicable law.

 

C-1-3

 

EXHIBIT
C-2

 

[LETTERHEAD OF UBS]

 

MASTER BAILEE LETTER

 

                    ,
200   

 

Takeout Investor

Address 1

 

Address 2

City, State

 

JPMorgan Chase Bank

4 Metrotech Center

Brooklyn, New York 11245

Attention:                         

Ladies and Gentlemen:

 

The undersigned
UBS Real Estate Securities Inc. (“UBSRESI” or “UBS”) shall from time to time,
cause JPMorgan Chase Bank as custodian (“Custodian”), to deliver to
[         ] (“Takeout Investor”)
original promissory notes (“Mortgage Notes”) evidencing certain mortgage loans
(“Mortgage Loans”), along with certain other documents comprising the related
files (“Custodial Files”) and, in each case, a Notice of Bailment in the form
of Schedule A hereto with respect to each Mortgage Loan (“Notice of
Bailment”), for inspection by Takeout Investor prior to the possible purchase
by Takeout Investor of such Mortgage Loans pursuant to commitments
(“Commitments”) from certain sellers of Mortgage Loans (“Sellers”).

 

Takeout Investor
hereby acknowledges and consents to the assignment by Seller to UBS (free of
any security interest, lien, claim or encumbrance of any kind) of Seller’s rights,
under each Commitment, to deliver the Mortgage Loan(s) specified therein to
Takeout Investor and to receive the takeout proceeds therefor from Takeout
Investor.  Prior to its delivery to
Takeout Investor, all of Seller’s right, title and interest in each Mortgage
Loan shall have been sold to UBSRESI in accordance with each Seller’s agreement
with UBSRESI.  Takeout Investor
understands and recognizes that until there is a completed sale of the Mortgage
Loans in accordance with the terms of the Loan Purchase Agreement between
UBSRESI and Seller (the “Purchase Agreement”), UBSRESI is the exclusive owner
of all right, title and interest in the Mortgage Notes, Mortgage Loans and
related Custodial Files.

 

Except as
otherwise provided herein, each Custodial File so delivered to Takeout Investor
is to be held by Takeout Investor, as agent for Custodian, and subject to only
UBSRESI’s direction and control until released as provided herein.  The purchase price specified in a Commitment
plus any servicing release premium specified therein (the “Purchase Price”) of
each Mortgage Loan purchased by Takeout Investor must be remitted immediately
upon settlement by Takeout Investor without any set-off or counterclaim against
such Purchase Price, by wire

 

C-2-1

 

transfer
in immediately available funds, in accordance with the wire instructions set
forth in the Notice of Bailment which shall be placed in each Custodial File by
Custodian prior to the shipment of each Custodial File to Takeout
Investor.  Takeout Investor shall be
responsible for making certain that the full amount of the Purchase Price from
the sale of each Mortgage Loan is paid in accordance with the wire transfer instructions
set forth on each Notice of Bailment. 
Takeout Investor shall have no right, title or interest, whether
equitable or legal, in any Custodial File, Mortgage Note or Mortgage Loan until
UBSRESI receives payment in full of the Purchase Price for such Mortgage Note,
Mortgage Loan and related Custodial File in the account designated in the wire
transfer instructions.

 

Upon UBSRESI’s
receipt of the full amount of the Purchase Price from the sale of a Mortgage
Loan in accordance with the wire transfer instructions in the applicable Notice
of Bailment, all of UBSRESI’s legal and equitable interest in the Mortgage Loan
shall terminate.  Payment of the Purchase Price shall be made
without any set-off or counterclaim against such Purchase Price.

 

Each Mortgage Loan
and related documentation (“Mortgage Documents”) held by Takeout Investor which
are received by Takeout Investor from Custodian with respect to a Mortgage Loan
that is not purchased in accordance with the Purchase Agreement must be
returned immediately to Custodian at the address for delivery of documents set
forth on the Notice of Bailment. 
UBSRESI reserves the right at any time, until a Mortgage Loan has been
purchased in accordance with the Purchase Agreement by Takeout Investor, to
demand the return of the related Mortgage Documents to Custodian, and Takeout
Investor agrees to return to Custodian the Mortgage Documents pertaining to a
Mortgage Loan not purchased by Takeout Investor immediately upon such demand by
UBSRESI.

 

The persons listed
on the attached Schedule A-1 are the authorized representatives
(“Authorized Representatives”) of UBSRESI. 
Takeout Investor shall not honor any communication from Sellers relating
to a Mortgage Loan, which is not confirmed by the written or telephonic consent
of an Authorized Representative of UBSRESI, or until UBSRESI has received the
full amount of the Purchase Price from the sale of such Mortgage Loan.

 

In the event
Takeout Investor is not able for any reason to comply with the terms of this
Master Bailee Letter, Takeout Investor shall immediately return the Custodial
Files, together with all the Mortgage Notes and the other related Mortgage Loan
papers, documents, and records held by Takeout Investor which have been
received by Takeout Investor from either Custodian or Sellers, to Custodian at
the above address for delivery in the Notice of Bailment; provided  however,
that in no case shall the Takeout Investor return such Custodial File to
Custodian or Sellers later than thirty (30) calendar days after receipt of such
Custodial File.

 

Takeout Investor
shall not deliver a Custodial File, or any portion thereof, to any third party
without the prior written consent of UBSRESI unless such third party is a
parent or wholly owned subsidiary of Takeout Investor or a custodian and bailee
of Takeout Investor who is receiving such Custodial File with written notice of
the bailment created by this Master Bailee Letter.

 

C-2-2

 

Takeout Investor
agrees to pay, indemnify, and hold UBSRESI, its officers, directors, employees,
counsel, agents and attorneys-in-fact (each, an “Indemnified Person”) harmless
from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, charges, expenses or disbursements
(including reasonable attorney’s fees and the allocated cost of in-house
counsel) of any kind or nature whatsoever incurred with respect to any
investigation, litigation or proceeding (including any case, action or
proceeding before any court or other governmental authority relating to
bankruptcy, reorganization, insolvency, liquidation, dissolution or relief of
debtors or any appellate proceeding) (collectively, the “Proceedings”) arising
from Takeout Investor’s noncompliance with the terms of this Master Bailee
Letter, whether or not any Indemnified Person is a party to the related
Proceedings.

 

No deviation in performance of the
terms of any previous bailment agreement will alter any of Takeout Investor’s
duties or responsibilities as provided herein.

 

By accepting the Mortgage Loans,
Takeout Investor shall be bound by the terms hereof.  UBS requests that Takeout Investor acknowledge receipt of the
Mortgage Documents and this Master Bailee Letter by signing and returning the
enclosed copy of this Master Bailee Letter in the enclosed self-addressed
envelope; provided, however, that Takeout Investor’s failure to do so does not
nullify Takeout Investor’s acceptance of the terms of this Master Bailee
Letter.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  UBS REAL ESTATE
  SECURITIES INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

C-2-3

 

The undersigned
Custodian executes this Master Bailee Letter solely for purposes of appointing
Takeout Investor its custodian and bailee to hold the Mortgage Documents in
accordance with the terms of this Master Bailee Letter.

 

	
   

  	
  Agreed to:

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK

  
	
   

  	
  (Custodian)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
  Dated:  As of the date first set forth above

  
	
   

  	
   

  
	
   

  	
   

  
	
  Acknowledgement of Receipt:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Takeout Investor)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
  Dated:  As of the date first set forth above

  	
   

  
						

 

C-2-4

 

SCHEDULE A

TO MASTER BAILEE LETTER

 

NOTICE OF BAILMENT

 

	
  Re:

  	
   

  	
  [Insert Description of
  Loan, including Borrower’s Name,

  
	
   

  	
   

  	
  Loan Amount and Takeout
  Investor’s Loan Number]

  

 

Ladies and
Gentlemen:

 

Pursuant
to the Master Bailee Letter, dated [Date] (the “Master Bailee Letter”), among
UBS Real Estate Securities Inc. (“UBSRESI”), JPMorgan Chase Bank (the
“Custodian”) and [Takeout Investor] (“Takeout Investor”), you are hereby
notified that the enclosed original promissory note with respect to the
referenced loan together with certain other documents comprising the related
file with respect to that loan (the “Mortgage Documents”) being hereby delivered
to you herewith are to be held by you as agent of Custodian (which holds the
Mortgage Documents as custodian and bailee for the benefit of UBSRESI) and
subject to the terms of the Master Bailee Letter, the terms of which are
incorporated by reference.

 

Any
funds wired by Takeout Investor in accordance with the Master Bailee Letter
shall be transmitted in immediately available funds to: 
[                    ];
ABA: 
[                    ];
Account #: 
[                    ];
Account Name:  UBS Real Estate
Securities Inc. Conduit Funding.

 

Any
Mortgage Documents (or portion thereof) being returned in accordance with the
Master Bailee Letter shall be sent to Custodian by overnight courier to:
[custodian name and address], Attention: 
Mortgage Custody-                       ,
no later than thirty (30) calendar days after the date hereof.

 

The
purchase price specified in a Commitment plus any servicing release premium
specified therein (the “Purchase Price”) of each Mortgage Loan purchased by
Takeout Investor must be remitted immediately upon settlement by Takeout
Investor without
any set-off or counterclaim against such Purchase Price, by wire
transfer in immediately available funds, in accordance with the wire
instructions set forth above, which shall be placed in each Custodial File by
Custodian prior to the shipment of each Custodial File to Takeout
Investor.  Takeout Investor shall be
responsible for making certain that the full amount of the Purchase Price from
the sale of each Mortgage Loan is paid in accordance with the wire transfer
instructions set forth above.  Takeout
Investor shall have no right, title or interest, whether equitable or legal, in
any Custodial File, Mortgage Note or Mortgage Loan until UBSRESI receives
payment in full of the Purchase Price for such Mortgage Note, Mortgage Loan and
related Custodial File in the account designated in the wire transfer
instructions.

 

C-2-5

 

By accepting the Mortgage Loans,
Takeout Investor shall be bound by the terms hereof.  Any questions relating to the Mortgage
Documents should be referred to UBS Real Estate Securities Inc. at (201) 352 –
6240.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK

  
	
   

  	
  (Custodian)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  

 

C-2-6

 

SCHEDULE A-1

TO MASTER BAILEE LETTER

 

AUTHORIZED REPRESENTATIVES

OF UBS REAL ESTATE SECURITIES INC.

 

	
  George A.
  Mangiaracina

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Robert Carpenter

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Jonathan Banks

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Ari Lash

  	
   

  	
   

  

 

C-2-7

 

EXHIBIT
D

 

CONVERSION SUBMISSION PACKAGES

 

1.                                       To
convert from a Dry Transaction to a Cash Window Transaction, Trust shall
deliver (or shall cause the related Seller to deliver) to Custodian:

 

A.                                   if
Fannie Mae is the Takeout Investor, an original Assignment of Mortgage to
Fannie Mae, in recordable form but unrecorded, signed in the name of Seller by
an authorized officer;

 

B                                        the
Applicable Agency Documents; and

 

C.                                     delivery
Instructions.

 

2.                                       To
convert from a Dry Transaction to a Conduit Transaction, Trust shall deliver
(or shall cause the related Seller to deliver) to Custodian:

 

A.                                   Mortgage
meeting one of the following requirements:

 

(a)                                  The
original Mortgage bearing evidence that the Mortgage has been duly recorded in
the records of the jurisdiction in which the Mortgaged Property is located; or

 

(b)                                 A
copy of the Mortgage or, with respect to a Cooperative Loan, the Proprietary
Lease, together with an officer’s certificate (which may be a blanket officer’s
certificate of Seller covering all such Mortgage Loans), or a certificate from
the recorder’s office, certifying that such copy represents a true and correct
reproduction of the original Mortgage or Proprietary Lease, as applicable, and
that such original has been duly recorded or delivered for recordation in the
appropriate records of the jurisdiction in which the Mortgaged Property is
located; or

 

(c)                                  With
respect to MERS Designated Mortgage Loans, the requirements set forth in the
Electronic Tracking Agreement.

 

B.                                     a
copy of a Commitment;

 

C.                                     Delivery
Instructions;

 

D.                                    Each
Mortgage Loan, as identified by Trust or the related Seller, relating to a
Mortgage Note with an original principal amount in excess of 80% of the
appraised value of the related Mortgaged Property at the time of origination of
such Mortgage Loan, either (A) an original of the certificate/commitment of
Primary Mortgage Insurance Policy, issued by the applicable insurer, without
verification of the expiration date thereon, or (B) an Officer’s Certificate
(which may be a blanket Officer’s Certificate of such Seller covering all such
Mortgage Loans), certifying

 

D-1

 

that an appraisal report
has been obtained by such Seller which shows that the appraised value of the
Mortgage Property is such that the outstanding principal balance of such
Mortgage Note is less than 80% of such appraised value;

 

E.                                      An
Underwriter’s Form;

 

F.                                      A
copy of a Confirmation; and

 

G.                                     With
respect to each Cooperative Loan:

 

(1)                                  the
original Security Agreement and the assignment of the Security Agreement in
blank;

 

(2)                                  the
original stock certificate evidencing the ownership of the Cooperative
Apartment, endorsed or accompanied by a stock power relating to such stock
certificate executed in blank;

 

(3)                                  a
Recognition Agreement in substantially the same form as the standard “AZTECH”
form and the assignment of the Recognition Agreement (or a blanket assignment
of all Recognition Agreements) in blank;

 

(4)                                  copies
of the UCC-1 financing statement filed by the applicable originator of such
Mortgage Loan as secured party and, if applicable, a filed UCC-3 assignment of
the subject security interest showing a complete chain of title, together with
an executed UCC-3 Assignment of such security interest by such Seller in a form
sufficient for filing; and

 

(5)                                  such
other documents as are necessary for the perfection of a lien against the
related Cooperative Ownership Interest under applicable law.

 

D-2

 

EXHIBIT E

 

UBS
REAL ESTATE SECURITIES INC.

REQUEST FOR CERTIFICATION

CLIENT:[      ], PAYEE NUMBER (ONLY APPLICABLE TO
FANNIE MAE CASH WINDOW

TRANSACTIONS):

Expected Delivery Date of Mortgage File is
                        ,
200   

 

REF NO.

 

PROG CODE

 

LOAN #

 

LAST NAME

 

FACE AMOUNT

 

# OF MONTHS TO MATURITY

 

NOTE RATE

 

TAKEOUT INVESTOR

 

PROPERTY ADDRESS

 

NOTE DATE

 

SALE PRICE

 

COMMITMENT #

 

COMMITMENT EXPIRATION
DATE

 

DELIVERY DATE

 

RELEASE PAYMENT

 

WAREHOUSE LENDER

 

COMPLETION/EXCEPTION CODE

 

E-1

 

EXHIBIT F

 

	
  I.

  	
   

  	
  Program Codes

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  D

  	
  Dry Transaction

  
	
   

  	
   

  	
   

  
	
   

  	
  W

  	
  Cash Window Transaction

  
	
   

  	
   

  	
   

  
	
   

  	
  C

  	
  Conduit Transaction

  
	
   

  	
   

  	
   

  
	
  II.

  	
  V

  	
  Conversion Code

  
	
   

  	
   

  	
   

  
	
  III.

  	
   

  	
  Certification Codes

  
	
   

  	
   

  	
   

  
	
   

  	
  A

  	
  Mortgage Loan Absentee
  Code

  
	
   

  	
   

  	
   

  
	
   

  	
  N

  	
  Mortgage Loan Suspension
  Code

  
	
   

  	
   

  	
   

  
	
   

  	
  Y

  	
  Mortgage Loan Approval
  Code

  
	
   

  	
   

  	
   

  
	
  IV.

  	
   

  	
  Unidentified/Suspension
  Mortgage Loan Directives

  
	
   

  	
   

  	
   

  
	
   

  	
  H

  	
  Hold Directive

  
	
   

  	
   

  	
   

  
	
   

  	
  D

  	
  Delivery Directive

  
	
   

  	
   

  	
   

  
	
  V.

  	
   

  	
  Exception Codes

  
	
   

  	
   

  	
   

  
	
   

  	
  See Chart Below

  

 

F-1

 

UBS Real Estate

Document Codes

 

	
  1. Note missing

  
	
  2. Note is not original

  
	
  3. Note is missing borrower’s name

  
	
  4. Note-borrower’s name does not match the file

  
	
  5. Note is missing borrower’s signature

  
	
  6. Endorsement in blank on the note is missing

  
	
  7. Endorsement in blank on the note is missing sellers
  authorized signature

  
	
  8. Intervening endorsement (from/to) on the note is missing

  
	
  9. Intervening endorsement (from/to) on the note is missing
  authorized signature

  
	
  10. Mortgage/Deed is missing or incomplete (faxable cure)

  
	
  11. Mortgage/Deed is
  not certified or notarized.

  
	
  12. Mortgage/Deed is
  missing assumption agreement

  
	
  13. Mortgage/Deed – the
  borrower’s name and signature does not match the note

  
	
  14. Mortgage/Deed – the
  amount is not less or equal to the amount on the note

  
	
  15. Mortgage/Deed is not signed.

  
	
  16. Intervening assignment (from/to) is missing, not signed
  or not certified

  
	
  17. MIN # does not
  match grid, or is missing. (Custodian will update.)

  
	
  18. Not a MERS loan; no MERS language on note and/or
  mortgage.  (to be used only for loans
  where assignments are not being required due to execution of ETA agreement.)

  
	
  19. Corporate
  assignment has no legal description and is not complete

  
	
  20. Assignment in blank is not signed

  
	
  21. Assignment in blank is not original

  
	
  22. Assignment to Fannie Mae is missing

  
	
  23. Assignment to Fannie Mae is not signed

  
	
  24. Assignment to Fannie Mae is not original

  
	
  25. Warehouse/Sellers
  release letter is missing and/or not signed

  
	
  26. Warehouse/Sellers
  release letter is not signed

  
	
  27. Commitment is missing

  
	
  28. LTV/PMI officer’s
  certificate is missing or not signed

  
	
  29.

  
	
  30.

  
	
  31. Consolidation/Modification agreement is missing or not
  certified

  
	
  32.

  
	
  33. Freddie Mac
  purchase contract confirmation is missing and/or has not price.

  
	
  34.

  
	
  35. Freddie Mac
  midanet/mortgage detail listing is missing

  
	
  36. Freddie Mac form 1034/Certification schedule is
  missing

  
	
  37. From the Freddie
  Mac form 1034 – all files are not present

  
	
  38. Freddie Mac form 996 is missing

  
	
  39. Freddie Mac form 996 wire instructions are incorrect

  
	
  40. Freddie Mac form 987 is missing

  
	
  41. Freddie Mac for 987 wire instructions are incorrect

  
	
  42.

  
	
  43. Fannie Mae
  mandatory delivery commitment is missing and/or has no price

  
	
  44. Fannie Mae 2004 is
  missing.

  
	
  45. Fannie Mae form 1068/1069 mornet is missing

  
	
  46. Fannie Mae form
  1068/1069 – all files are not present

  
	
  47. Fannie Mae form
  1068/1069 payee code is incorrect

  
	
  48. Fannie Mae form
  1068/1069 information does not correspond to the note

  
	
  49. MERS Assignment –
  ok to fund

  
	
  50.

  
	
  51. No delivery instructions

  
	
  52 OTHER – Please Call

  
	
  53. Revised
  Warehouse/Sellers Release notice is required

  
	
  54. No corporate assignment in blank, or document is
  incorrect

  
	
  55. Takeout investor on
  grid does not match file (Custodian will update)

  
	
  56. Husband and Wife’s
  name is not on note but on mortgage – documents are not consistent

  
	
  57. Note face amount
  does not match grid  (Custodian will
  update)

  
	
  58. Expired commitment

  
	
  59. Mortgage date does
  not match the note date

  
	
  60. Blank assignment is not notarized

  
	
  61. Borrower’s name is not on blank assignment

  
	
  62. Delivery Instructions and commitment have different
  takeout investors

  
	
  63. Balloon note is
  missing rider

  
	
  64. Mortgage/Deed is
  missing riders and/or missing Schedule A (legal description)

  
	
  65.

  
	
  66. Missing power of attorney (faxable cure)

  
	
  67. Warehouse lenders
  release is missing attached list of loans

  
	
  68. Erroneous
  endorsement must be voided and initialed

  
	
  69.

  
	
  70. Endorsement in blank is to the takeout investor

  
	
  71. Corporate assignment in blank is to the takeout
  investor.

  
	
  72.

  
	
  73.

  
	
  74. Endorsement in
  blank missing D.B.A (doing business as)

  
	
  75. Corporate
  assignment in blank missing D.B.A (doing business as)

  
	
  76. Endorsement in
  blank is on the Intervening Allonge

  
	
  77.

  
	
  78. Endorsement in
  blank is missing authorized name and title

  
	
  79. Correction on note or deed of trust is not initialed

  
	
  80. On original note
  written and numeric amounts do not agree

  
	
  81 Information (name
  and/or loan #) on mortgage does not match grid.

  
	
  82.

  
	
  83. Endorsement on note reads “with recourse”

  
	
  84.  Endorsement on note is a facsimile
  signature, not a live inked signature

  
	
  85. Note is signed by a corporation

  
	
  86.

  
	
  87.

  
	
  88.

  
	
  89. Loan term on note
  does not match grid. (Custodian will update)

  
	
  90. Interest rate on note
  does not match grid. (Custodian will update)

  
	
  91. Sale price on
  Commitment does not match grid (Chase makes correction)

  
	
  92.

  
	
  93. Title policy,
  binder or commitment is missing

  
	
  94. Promissory note
  requires notarization.

  
	
  95. Property street
  address, city and state do not match (if included on the note.)

  
	
  96. Note date doesn’t
  match grid. (Custodian will update.)

  
	
  97. Not approved UBSRES  Investor

  
	
  98. Note date is greater than 30 days

  
	
  99. Note date is missing.

  

 

F-2

 

	
  A1.  Interest rate,
  alpha and numeric, if included on note do not match. ???

  
	
  A2.  Property street
  address, city and state, do not match (if property address is included on the
  note.

  
	
  A3.  TBD

  
	
  A4. Promissory note requires a notarization, notary is
  missing.

  
	
  A5.Note date doesn’t match grid

  
	
  A6.Note date is missing

  
	
  A7. (PMAC fundings)

  
	
  A8. MERS Assignment
  (swapped with 49)

  

 

F-3

 

EXHIBIT
G-1

 

[WAREHOUSE LENDER’S RELEASE]

 

UBS Real Estate Securities
Inc.

1285 Avenue of the Americas

New York, New York 10019

 

Ladies and Gentlemen:

 

We
hereby release all right, interest or claim of any kind with respect to the
mortgage loan(s) referenced below, such release to be effective automatically
without any further action by any party, upon receipt, in one or more
installments, from UBS Real Estate Securities Inc., in accordance with the wire
instructions which we delivered to you in a letter dated [Date], in immediately
available funds, of an aggregate amount equal to the product of A multiplied by
B (such product being rounded to the nearer $0.01) multiplied by C.*

 

	
  Loan #

  	
   

  	
  Mortgagor

  	
   

  	
  Street

  Address

  	
   

  	
  City

  	
   

  	
  State

  	
   

  	
  Zip

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  [WAREHOUSE
  LENDER]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

*A  = 
weighted average trade price

  B 
=  principal amount of the
mortgage loans

  C 
=  1 minus the discount set forth
on the related funding confirmation

 

G-1-1

 

EXHIBIT
G-2

 

[WAREHOUSE LENDER’S WIRE INSTRUCTIONS]

 

UBS Real Estate
Securities Inc.

1285 Avenue of the Americas

New York, New York 10019

 

	
  Re:

  	
  UBS Real Estate Securities Inc. Conforming
  Whole Loan Purchase:  Cash

  	
   

  
	
   

  	
  Window Program with MortgageIT SPV I

  	
   

  

 

Ladies and Gentlemen:

 

Set
forth below are [Warehouse Lender’s] wire instructions applicable to the
above-referenced Conforming Whole Loan Purchase:  Cash Window Program.

 

Wire Instructions:

 

Bank Name: 

City, State:

ABA #:

Account #:

Account Name:

 

Please
acknowledge receipt of this letter in the space provided below.  This letter supersedes and replaces any
prior notice specifying the name of [Warehouse Lender] and setting forth wire
instructions and shall remain in effect until superseded and replaced by a
letter, in the form of this letter, executed by each of us and acknowledged by
you.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  MORTGAGEIT,
  INC.

  
	
   

  	
   

  	
  for
  and on behalf of MortgageIT SPV I as

  
	
   

  	
   

  	
  the
  Administrator

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

G-2-1

 

	
   

  	
  [WAREHOUSE
  LENDER(S)]*

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  UBS REAL ESTATE

  	
   

  
	
  SECURITIES INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

*                                         The
authorized officer of each warehouse lender executing this letter must be the
same authorized officer as signs the Warehouse Lender’s Release.  Not applicable if there is no warehouse
lender.

 

G-2-2

 

EXHIBIT
H-1

 

[TRUST’S RELEASE]

 

UBS Real Estate
Securities Inc.

1285 Avenue of the Americas

New York, New York 10019

 

Ladies and Gentlemen:

 

Capitalized
terms used herein but not defined herein shall have the meanings ascribed to
such terms in the Custodial Agreement, dated as of August 4, 2004, among
UBS Real Estate Securities Inc. (the “UBS”), JPMorgan Chase Bank (the “Custodian”),
MortgageIT SPV I, MortgageIT, Inc. and MortgageIT Holdings, Inc.

 

With
respect to the mortgage loan(s) referenced below (a) we hereby certify to you
that the mortgage loan(s) is not subject to a lien of any warehouse lender and
(b) we hereby release all right, interest or claim of any kind with respect to
such mortgage loan, such release to be effective automatically without any
further action by any party upon payment from UBS to Seller of an aggregate
amount equal to the product of A multiplied by B (such product being rounded to
the nearer $0.01) multiplied by C* in accordance with our wire instructions in
effect on the date of such payment.

 

	
  Loan #

  	
   

  	
  Mortgagor

  	
   

  	
  Street

  Address

  	
   

  	
  City

  	
   

  	
  State

  	
   

  	
  Zip

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  MORTGAGEIT SPV I

  
	
   

  	
   

  
	
   

  	
  By: MortgageIT, Inc. as Administrator under the

  Administration Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

H-1-1

 

*A  = 
weighted average trade price
  B 
=  principal amount of the
mortgage loan(s)
  C 
=  1 minus the discount set forth
on the related funding confirmation

 

H-1-2

 

EXHIBIT
H-2

 

[TRUST’S WIRE INSTRUCTIONS]

 

Date:
     

 

UBS Real Estate
Securities Inc.

1285 Avenue of the Americas

New York, New York 10019

 

	
  Re:

  	
   

  	
  Custodial Agreement dated as of
  August 4, 2004, among UBS Real Estate Securities Inc., MortgageIT, Inc.,
  MortgageIT Holdings, Inc., MortgageIT SPV I and JPMorgan Chase Bank

  

 

Ladies and Gentlemen:

 

Capitalized
terms used herein and not defined herein shall have the meanings ascribed to
such terms in the above-referenced Custodial Agreement.

 

Set
forth below are Trust’s Wire Instructions applicable to the above-referenced
Custodial Agreement.

 

Wire Instructions:

 

Bank Name:

City, State:

ABA #:

Account #:

A/C Name:

 

Please
acknowledge receipt of this letter in the space provided below and return it to
MortgageIT, Inc.  This letter supersedes
and replaces any prior notice specifying the name of Trust and Trust’s Wire
Instructions and shall remain in effect until superseded and replaced by a
letter, in the form of this letter, executed by us and acknowledged by you.

 

H-2-1

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  MORTGAGEIT
  SPV I(1)

  
	
   

  	
   

  
	
   

  	
  By:
  MortgageIT, Inc. as Administrator under the

  Administration Agreement

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

(1)           The authorized officer of Administrator
executing this letter must be the same authorized officer that signs Trust’s
Release.  Applicable only if there is no
Warehouse Lender.

 

H-2-2

 

	
  Receipt acknowledged
  by:

  	
   

  
	
   

  	
   

  
	
  UBS REAL ESTATE

  	
   

  
	
    SECURITIES
  INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

H-2-3

 

EXHIBIT I-1

 

[UBS’S WIRE INSTRUCTIONS TO TRUST]

 

Wire Instructions:

 

	
  Bank Name:

  
	
  City, State:

  
	
  ABA#:

  
	
  Account #:

  
	
  A/C Name:

  
	
  Ref:

  	
  MortgageIT, Inc.

  

 

I-1-1

 

EXHIBIT
I-2

 

[UBS’S WIRE INSTRUCTIONS TO CUSTODIAN]

 

Date:
    

 

JPMorgan Chase Bank

4 Metrotech Center

 

Brooklyn, New York 11245

 

Re:                               Whole
Loan Purchase Program

 

Ladies and Gentlemen:

 

Set
forth below are UBS’s Wire Instructions to Custodian (as defined in the
Custodial Agreement) dated as of August 4, 2004 among UBS Real Estate
Securities, Inc., MortgageIT, Inc., MortgageIT Holdings, Inc., MortgageIT SPV I
and JPMorgan Chase Bank.

 

Wire Instructions:

 

	
  Bank Name:

  
	
  City, State:

  
	
  ABA #:

  
	
  Account #:

  
	
  Account Name:

  

 

Please
acknowledge receipt of this letter in the space provided below and return it to
UBS Real Estate Securities Inc. (“UBS”). 
This letter supersedes and replaces any prior notice specifying the name
of UBS and UBS’s Wire Instructions to Custodian and shall remain in effect
until superseded and replaced by a letter, in the form of this letter, executed
by us and acknowledged by you.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  UBS
  REAL ESTATE SECURITIES INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

I-2-1

 

	
  Receipt acknowledged
  by:

  
	
   

  
	
  JPMORGAN CHASE
  BANK

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

I-2-2

 

EXHIBIT
I-3

 

UBS’S DELIVERY INSTRUCTIONS TO CUSTODIAN

 

JPMorgan Chase Bank

4 Metrotech Center

Brooklyn, New York 11245

Attention:
                  

 

Re:                               Delivery
of Submission Package

 

Dear 
               :

 

Please
deliver, via overnight courier, each of the Submission Packages relating the
Mortgage Loans listed below to:

 

 

 

 

 

Initially
capitalized terms are defined in the Custodial Agreement, dated August 4,
2004 among UBS Real Estate Securities Inc., MortgageIT, Inc., MortgageIT
Holdings, Inc., MortgageIT SPV I and JPMorgan Chase Bank.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  UBS REAL ESTATE
  SECURITIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

I-3-1

 

EXHIBIT
J

 

[NOTICE BY ASSIGNEE TO CUSTODIAN OF UBS’S
DEFAULT]

 

JPMorgan Chase Bank

4 Metrotech Center

Brooklyn, New York 11245

 

Re:                               Whole
Loan Purchase Program

 

Ladies and Gentlemen:

 

Notice
is hereby given that UBS has materially defaulted in its obligations under an
agreement between Assignee and UBS relating to the financing by Assignee of
UBS’s purchase of Mortgage Loans described on Schedule 1 hereto.  Assignee hereby (i) directs that Custodian
act with respect to the related mortgage files solely in the capacity of
custodian for, and bailee of, Assignee, (ii) directs that Custodian hold such
mortgage files for the exclusive use and benefit of Assignee and (iii) assumes
the rights of UBS to furnish instructions to Custodian as to the disposition of
such mortgage files and such rights shall be exercisable solely by Assignee.

 

Please
acknowledge the foregoing by signing below and returning a copy of this notice
to us at [address].

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  RECEIPT ACKNOWLEDGED:

  	
   

  
	
   

  	
   

  
	
  JPMORGAN CHASE BANK

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  cc:

  	
  UBS Real Estate
  Securities Inc.

  	
   

  
							

 

J-1

 

EXHIBIT K

 

LIMITED POWER OF ATTORNEY

 

Reference
is hereby made to the Custodial Agreement (the “Agreement”), dated
August 4, 2004, among JPMorgan Chase Bank (“Custodian”), UBS Real Estate Securities
Inc. (“UBS”), MortgageIT SPV I (“Trust”), MortgageIT, Inc. and MortgageIT
Holdings , Inc.  Any capitalized term
not otherwise defined herein shall have the meaning assigned to such term in
the Agreement.

 

Know
all people by these presents, that Trust, a statutory trust organized and
existing under the laws of the State of Delaware, does hereby make, constitute
and appoint,
                      ,
                      
or
                      ,
or any officer assigned to the [Corporate Trust Group] (or any successor
thereto), including any Vice President, Assistant Vice President, Trust
Officer, any Assistant Secretary, any trust officer or any other officer of
Custodian customarily performing functions similar to those performed by any of
the above designated officers and having direct responsibility for the
administration of the Agreement, each acting singly and independently of the
other, as its true and lawful attorney for it and in its name, place and stead
to endorse a Mortgage Note that has not otherwise been endorsed as follows:

 

“Pay to the order
of
                      

 

	
   

  	
  [SELLER]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Its: 
  [               ]

  

 

provided, however,
a Mortgage Note shall only be endorsed pursuant to this Power of Attorney
pursuant to the terms and conditions set forth in Section 4(b)(ii) of the
Agreement.

 

IN
WITNESS WHEREOF, MORTGAGEIT SPV I, has caused this Power of Attorney to be
executed in its name by its duly authorized officer this     day
of
                      .

 

	
   

  	
  MORTGAGEIT,
  INC.

  
	
   

  	
   

  	
  for
  and on behalf of Trust as the

  Administrator

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  
	
   

  	
   

  
	
  STATE OF

  	
  )

  	
   

  	
   

  	
   

  
	
   

  	
  )

  	
  ss:

  	
   

  	
   

  
	
  COUNTY OF

  	
  )

  	
   

  	
   

  	
   

  
							

 

On the
   th day of
             ,
in the year 200  , before me personally came
                                    ,
to me known, who, being by me duly sworn, did depose and say that he/she is
                                       
of MORTGAGEIT, INC., the corporation described in and

 

K-1

 

which executed the above instrument and that he/she executed said
instrument by order of the board of directors of said corporation.

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  	
   

  

 

K-2

 

EXHIBIT
L

 

UNIDENTIFIED MORTGAGE LOANS LIST

 

With
regard to MortgageIT SPV I, the following mortgage loans were received by
JPMorgan Chase Bank on [Date] and were not referenced on UBS Real Estate
Securities Inc.’s Request for Certification.

 

	
  Loan #

  	
   

  	
  Last
  Name

  	
   

  	
  Face
  Amount

  	
   

  	
  Takeout
  Investor

  	
   

  	
  Expiration
  Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (if applicable)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

L-1

 

EXHIBIT
M

 

UNIDENTIFIED/SUSPENSION MORTGAGE LOAN
DIRECTIVE

 

	
  Seller’s Name:

  	
   

  	
   

  
	
  Product Name:

  	
   

  	
   

  
				

 

M-1

 

	
  Reference #

  (if applicable)

  	
   

  	
  Unidentified/

  Suspension

  	
   

  	
  Loan
  # MERS

  Identification

  # (if

  applicable)

  	
   

  	
  Last
  Name

  	
   

  	
  Face
  Amount

  	
   

  	
  Commitment

  Expiration Date

  	
   

  	
  Instruction

  (Hold/Return/Delivery)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

M-2

 

EXHIBIT
N

 

[LETTERHEAD OF ADMINISTRATOR]

 

[DATE]

 

	
  To:

  	
  JPMorgan Chase Bank

  
	
   

  	
  4 Metrotech Center

  
	
   

  	
  Brooklyn, New York
  11245

  

 

 

Please deliver the
Submission Package(s) as indicated on the attached list, in accordance with the
terms of the agreement, to the following:

 

Company Name:

Address::

City, State Zip:

Attn.:

 

The documents in the Submission
Package shall be arranged as follows:

 

N-1

 

[LETTER OF ADMINISTRATOR]

 

[DATE]

 

LOANS TO BE DELIVERED BY
JPMORGAN CHASE BANK FOR MORTGAGEIT SPV I

 

	
   

  	
   

  	
  Loan
  #  MIN # (If

  applicable):

  	
   

  	
  Borrower’s
  Name:

  	
   

  	
  Loan
  Amount:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

N-2

 

EXHIBIT
O

 

UBS’S INSTRUCTIONS TO CUSTODIAN TO DESTROY
SPECIFIED FILES

 

JPMorgan Chase Bank

4 Metrotech Center

Brooklyn, New York 11245

Attention:
                         

 

Re:                               Destruction
of Files

 

Dear
                :

 

You
are hereby authorized to destroy any documents relating the Mortgage Loans
listed below which were delivered to you in connection with the Custodial
Agreement referenced below and which remain in your possession: 

 

	
  Loan #

  	
   

  	
  Last
  Name

  	
   

  	
  Face
  Amount

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

Initially
capitalized terms are defined in the Custodial Agreement, dated August 4,
2004 among MortgageIT SPV I, MortgageIT, Inc., MortgageIT Holdings, Inc., UBS
Real Estate Securities Inc. and JPMorgan Chase Bank.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  UBS REAL ESTATE
  SECURITIES INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By.

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

O-1

 

EXHIBIT
P

 

[RESERVED]

 

P-1

 

EXHIBIT
Q

 

AUTHORIZED REPRESENTATIVES OF UBS

 

	
  Name

  	
   

  	
  Title

  	
   

  	
  Specimen Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

Q-1

 

EXHIBIT
R

 

AUTHORIZED REPRESENTATIVES OF TRUST

 

	
  Name

  	
   

  	
  Title

  	
   

  	
  Specimen Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

R-1

 

EXHIBIT
S

 

AUTHORIZED REPRESENTATIVES OF CUSTODIAN

 

	
  Name

  	
   

  	
  Title

  	
   

  	
  Specimen Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

S-1

 

EXHIBIT
T

 

AUTHORIZED REPRESENTATIVES OF MORTGAGEIT,
INC.

 

	
  Name

  	
   

  	
  Title

  	
   

  	
  Specimen Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

T-1

 

EXHIBIT
U

 

AUTHORIZED REPRESENTATIVES OF MORTGAGE
HOLDINGS, INC.

 

	
  Name

  	
   

  	
  Title

  	
   

  	
  Specimen Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-1

 

SCHEDULE A

 

LIST OF CONDUITS

 

A-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]