Document:

EXHIBIT 10.17

 

EXECUTION COPY

 

 

 

 

CUSTODIAL
AGREEMENT

 

 

 

 

Dated as of

 

March 1, 2012

 

 

 

 

 

U.S.
BANK NATIONAL ASSOCIATION, 

as Trustee,

 

WELLS FARGO BANK, N.A.,

as Custodian,

 

WELLS FARGO BANK, N.A.,

as Master Servicer,

 

Sequoia
Residential Funding, Inc.,

as Depositor,

 

and

 

Redwood
Residential Acquisition Corporation,

as Seller

 

 

 

    	 

    	 

    

 

 

TABLE OF CONTENTS

	 	 	 Page
	Article 1	Definitions	1
	Article 2	Custodial Terms	8
	Section 2.1	Appointment of the Custodian	8
	Section 2.2	Custodian Fees	8
	Article 3	Custody of Mortgage Documents	8
	Section 3.1	Delivery of Mortgage Files	8
	Section 3.2	Review of Mortgage Files	11
	Section 3.3	Certifications and Reports	11
	Section 3.4	Release of Mortgage Files	12
	Section 3.5	Inspection of Mortgage Files	13
	Section 3.6	Copies of Mortgage Files	13
	Section 3.7	Documents Missing From Mortgage Files	13
	Article 4	Concerning the Custodian	14
	Section 4.1	Custodian May Resign: Trustee May Remove Custodian.	14
	Section 4.2	Merger or Consolidation of Custodian	15
	Section 4.3	Limitation of Custodians Duties	15
	Section 4.4	Standard of Care; Indemnification	16
	Section 4.5	Force Majeure	18
	Section 4.6	Accounting	18
	Section 4.7	Compliance Certification	18
	Section 4.8	Subcontracting	19
	Article 5	Representations and Warranties	19
	Section 5.1	Capital Requirements	19
	Section 5.2	No Claims to Mortgage Loans	20

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	Article 6	Covenants	20
	Section 6.1	Insurance	20
	Section 6.2	Storage of Mortgage Files	20
	Article 7	Miscellaneous	21
	Section 7.1	Notices	21
	Section 7.2	Entire Agreement	24
	Section 7.3	Binding Nature of Agreement: Assignment	24
	Section 7.4	Governing Law	25
	Section 7.5	Recordation of Agreement	25
	Section 7.6	Agreement for the Exclusive Benefit of Parties	25
	Section 7.7	Counterparts	25
	Section 7.8	Indulgences: Not Waivers	25
	Section 7.9	Titles Not to Affect Interpretation	25
	Section 7.10	Provisions Separable	25
	Section 7.11	Conflict or Inconsistency	26
	Section 7.12	Waiver of Trial by Jury	26
	Section 7.13	Submission to Jurisdiction; Waivers	26
	Section 7.14	Non-petition	26
	Section 7.15	Termination	27
	Signature Page	 	28

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EXHIBITS

 

	EXHIBIT A	DELIVERY INSTRUCTIONS
	EXHIBIT B	DATA FORMAT
	EXHIBIT C	AUTHORIZED REPRESENTATIVES CERTIFICATION
	EXHIBIT D-1	INITIAL AUTHORIZED REPRESENTATIVES OF THE TRUSTEE
	EXHIBIT D-2	INITIAL AUTHORIZED REPRESENTATIVES OF THE DEPOSITOR
	EXHIBIT D-3A	INITIAL AUTHORIZED REPRESENTATIVES OF AMERICAN PACIFIC MORTGAGE CORPORATION, AS ORIGINATOR
	EXHIBIT D-3B	INITIAL AUTHORIZED REPRESENTATIVES OF OF SIMONICH CORPORATION, dba BANK OF COMMERCE MORTGAGE, AS ORIGINATOR
	EXHIBIT D-3C	INITIAL AUTHORIZED REPRESENTATIVES OF BENCHMARK BANK, AS ORIGINATOR
	EXHIBIT D-3D	INITIAL AUTHORIZED REPRESENTATIVES OF CENLAR FSB, AS SERVICER
	EXHIBIT D-3E	INITIAL AUTHORIZED REPRESENTATIVES OF COLE TAYLOR BANK, AS ORIGINATOR
	EXHIBIT D-3F	INITIAL AUTHORIZED REPRESENTATIVES OF FRANKLIN AMERICA MORTGAGE COMPANY, AS ORIGINATOR
	EXHIBIT D-3G	INITIAL AUTHORIZED REPRESENTATIVES OF FIRST REPUBLIC BANK, AS SERVICER AND AS ORIGINATOR
	EXHIBIT D-3H	INITIAL AUTHORIZED REPRESENTATIVES OF FLAGSTAR CAPITAL MARKETS CORPORATION, AS ORIGINATOR
	EXHIBIT D-3I	INITIAL AUTHORIZED REPRESENTATIVES OF GUARDHILL FINANCIAL CORPORATION, AS ORIGINATOR
	EXHIBIT D-3J	INITIAL AUTHORIZED REPRESENTATIVES OF PHH MORTGAGE CORPORATION, AS SERVICER AND AS ORIGINATOR
	EXHIBIT D-3K	INITIAL AUTHORIZED REPRESENTATIVES OF PrimeLending, a PlainsCapital Company, AS ORIGINATOR
	EXHIBIT D-3L	INITIAL AUTHORIZED REPRESENTATIVES OF SHORE FINANCIAL SERVICES INC., AS ORIGINATOR
	EXHIBIT D-3M	INITIAL AUTHORIZED REPRESENTATIVES OF Sterling Savings Bank, AS ORIGINATOR

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	EXHIBIT D-3N	INITIAL AUTHORIZED REPRESENTATIVES OF WINTRUST MORTGAGE, A DIVISION OF BARRINGTON BANK AND TRUST, AS ORIGINATOR
	EXHIBIT D-3O	INITIAL AUTHORIZED REPRESENTATIVES OF WELLS FARGO BANK, N.A., AS MASTER SERVICER
	EXHIBIT E	SCHEDULE OF FEES
	EXHIBIT F	REQUEST FOR RELEASE OF DOCUMENTS
	EXHIBIT G	FORM OF CERTIFICATION
	EXHIBIT H	FORM OF TRANSMITTAL LETTER
	EXHIBIT I	FORM OF CERTIFICATION REGARDING SERVICING CRITERIA TO BE ADDRESSED IN REPORT ON ASSESSMENT OF COMPLIANCE
	ANNEX 1	DOCUMENT EXCEPTION CODES

 

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CUSTODIAL AGREEMENT

 

THIS CUSTODIAL AGREEMENT
dated as of March 1, 2012 (this “Custodial Agreement”), is made by and among Wells Fargo Bank, N.A., as custodian
and master servicer, Redwood Residential Acquisition Corporation, as seller, Sequoia Residential Funding, Inc., as depositor, and
U.S. Bank National Association, not in its individual capacity but solely as trustee (as “Trustee”) for the
benefit of the holders of the Sequoia Mortgage Trust Mortgage Pass-Through Certificates, Series 2012-2 (the “Mortgage
Certificates”), issued pursuant to the Pooling and Servicing Agreement, dated as of March 1, 2012 (the “Pooling
and Servicing Agreement”), by and among Wells Fargo Bank, N.A., U.S. Bank National Association, and Sequoia Residential
Funding, Inc.

 

RECITALS

 

The Trustee desires
to appoint the Custodian to act as its custodian for the purposes of, from time to time, receiving and holding certain documents,
instruments and papers delivered hereunder, all upon the terms and conditions and subject to the limitations hereinafter set forth.

 

Now therefore, in consideration
of the mutual promises and agreements herein and other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto agree as follows:

 

ARTICLE 1.

DEFINITIONS

 

Except as otherwise
specified herein or as the context may otherwise require, whenever used in this Custodial Agreement, the following words and phrases
shall have the meaning specified in this Article.

 

“APM”
American Pacific Mortgage Corporation, a California corporation.

 

“APM MLSA”
The Flow Mortgage Loan Purchase and Sale Agreement dated as of October 1, 2011, between Redwood Residential Acquisition Corporation,
and APM, as amended by the Assignment of Representations and Warranties Agreement, dated March 29, 2012, by and among the Seller,
the Depositor, the Trustee, and APM, and acknowledged by the Master Servicer.

 

“Authorized
Representative” As defined in Section 3.4 hereof.

 

“BEN”
Benchmark Bank, a Texas state banking association.

 

“BEN MLSA”
The Flow Mortgage Loan Purchase and Sale Agreement dated as of September 1, 2011, between Redwood Residential Acquisition Corporation,
and BEN, as amended by the Assignment of Representations and Warranties Agreement, dated March 29, 2012, by and among the Seller,
the Depositor, the Trustee, and BEN, and acknowledged by the Master Servicer.

 

“BCM”
Simonich Corporation, dba Bank of Commerce Mortgage, a California corporation.

 

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“BCM MLSA”
The Flow Mortgage Loan Purchase and Sale Agreement dated as of August 1, 2011, between Redwood Residential Acquisition Corporation,
and BCM, as amended by the Assignment of Representations and Warranties Agreement, dated March 29, 2012, by and among the Seller,
the Depositor, the Trustee, and BCM, and acknowledged by the Master Servicer.

 

“Business
Day” Any day other than a Saturday, Sunday, or a day on which banking institutions in the state in which the Custodian’s
operations are located, are authorized or obligated by law or executive order to be closed.

 

“CEN”
Cenlar FSB, a federal savings bank.

 

“CEN MLSA”
The Flow Mortgage Loan Servicing Agreement, dated as of August 1, 2011, as amended by the Amendment No. 1 to Flow Mortgage Loan
Servicing Agreement dated November 3, 2011, between Redwood Residential Acquisition Corporation, and CEN, as amended by the Assignment
and Assumption Agreement, dated March 29, 2012, by and among the Seller, the Depositor, the Trustee, and CEN, and acknowledged
by the Master Servicer.

 

“Certification”
The certificate to be delivered pursuant to Section 3.2(a) in the form of Exhibit G.

 

“Closing Date”
March 29, 2012.

 

“Co-op Loan”
A Mortgage Loan that is secured by a first lien on and a perfected security interest in Co-op Shares and the related Proprietary
Lease granting exclusive rights to occupy the related co-op unit in the building owned by the related co-op corporation.

 

“Co-op Shares”
With respect to any Co-op Loan, the shares of stock issued by a co-op corporation and allocated to a co-op unit and represented
by a stock certificate.

 

“CTB”
Cole Taylor Bank, an Illinois corporation.

 

“CTB MLSA”
The Flow Mortgage Loan Purchase and Sale Agreement dated as of August 1, 2011, between Redwood Residential Acquisition Corporation,
and CTB, as amended by the Assignment of Representations and Warranties Agreement, dated March 29, 2012, by and among the Seller,
the Depositor, the Trustee, and CTB, and acknowledged by the Master Servicer.

 

“Custodian”
Wells Fargo Bank, N.A., and its successors and assigns, in its capacity as custodian hereunder.

 

“Delivery
Date” The later of the date of receipt by the Custodian of any (i) Mortgage File or (ii) Mortgage Loan Schedule.

 

“Designated
Custody Signer” Any officer or employee of the Custodian involved in, or responsible for, the custody of the Mortgage
Loans. The name and specimen signature of each Designated Custody Signer is maintained by the Custodian and is available for review
upon request.

 

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“Depositor”
Sequoia Residential Funding, Inc., as depositor under the Pooling and Servicing Agreement.

 

“Electronic
Recording” A mortgage or a mortgage-related document created, generated, sent, communicated, received, or stored by electronic
means (that complies with the requirements of the Electronic Signatures in Global and National Commerce Act or the Uniform Electronic
Transactions Act, as applicable) that has been accepted for recording by a participating county land records office which accepts
such electronic record of a mortgage or a mortgage-related document as an alternative to recordation of the original paper form
of such document.

 

“Exception”
With respect to any Mortgage Loan any variance from the requirements of Section 3.1 hereof with respect to the Mortgage Files (taking
into consideration the right to deliver certified copies in lieu of original documents in certain circumstances).

 

“Exception
Report” The list, in the format of Annex 1, of Mortgage Loans delivered by the Custodian to the Trustee as provided in
Section 3.2 hereof, reflecting the Mortgage Loans held by the Custodian, which includes codes indicating any Exceptions with respect
to each Mortgage Loan listed thereon.

 

“Exchange
Act” The Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder.

 

“FAM”
Franklin American Mortgage Company, a Tennessee Corporation.

 

“FAM MLSA”
The Flow Mortgage Loan Purchase and Sale Agreement dated as of August 1, 2011, between Redwood Residential Acquisition Corporation,
and FAM, as amended by the Assignment of Representations and Warranties Agreement, dated March 29, 2012, by and among the Seller,
the Depositor, the Trustee, and FAM, and acknowledged by the Master Servicer.

 

“FCM”
Flagstar Capital Markets Corporation, a Delaware corporation.

 

“FCM MLSA”
The Flow Mortgage Loan Purchase and Sale Agreement dated as of May 23, 2011, between Redwood Residential Acquisition Corporation,
and FCM, as amended by the Assignment of Representations and Warranties Agreement, dated March 29, 2012, by and among the Seller,
the Depositor, the Trustee, and FCM, and acknowledged by the Master Servicer.

 

“FRB”
First Republic Bank, a California corporation.

 

“FRB
MLSA” The Flow Mortgage Loan Sale and Servicing
Agreement, dated as of July 1, 2010, between Redwood Residential Acquisition Corporation and FRB,
as amended by the Assignment, Assumption and Recognition Agreement, dated March 29, 2012, by and among the Seller, the Depositor,
the Trustee, and FRB, and acknowledged by the Master Servicer.

 

“GFC”
GuardHill Financial Corporation, a national banking association.

 

“GFC MLSA”
The Flow Mortgage Loan Purchase and Sale Agreement dated as of October 1, 2011, between Redwood Residential Acquisition Corporation,
and GFC, as amended by the Assignment of Representations and Warranties Agreement, dated March 29, 2012, by and among the Seller,
the Depositor, the Trustee, and GFC, and acknowledged by the Master Servicer.

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“Master Servicer”
Wells Fargo Bank, N.A., and its successors and assigns, as master servicer of the Mortgage Loans under the Pooling and Servicing
Agreement.

 

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

 

“MERS Mortgage
Loan” Any Mortgage Loan registered with MERS on the MERS® System.

 

“MERS®
System” The system of recording transfers of mortgages electronically maintained by MERS.

 

“MIN”
The Mortgage Identification Number for any MERS Mortgage Loan.

 

“Mortgage”
The original mortgage, deed of trust or other instrument creating a first lien on the Mortgaged Property.

 

“Mortgage
Certificates” As defined in the first paragraph of this Custodial Agreement.

 

“Mortgage
File” A legal-sized pocket folder containing the Mortgage Loan documents described in Section 3.1 that is labeled in
the upper right-hand corner to identify clearly the Servicer, the Trustee, the mortgagor, the Mortgage Loan number and any previous
Mortgage Loan number.

 

“Mortgage
Loan” A loan identified on a Mortgage Loan Schedule.

 

“Mortgage
Loan Schedule” The electronic transmission of Mortgage Loans substantially in the form of Exhibit B. Such list shall
set forth the following information with respect to each Mortgage Loan:

		(1)	the loan number;

		(2)	the street address (including unit number, city, state) of the related mortgaged property;

		(3)	mortgagor name;

		(4)	original principal balance of the Mortgage Loan;

		(5)	stated maturity date;

		(6)	mortgage interest rate;

		(7)	origination date;

		(8)	first payment date;

		(9)	principal and interest

		(10)	with respect to each ARM loan, the first adjustment date;

		(11)	with respect to each ARM loan, the maximum mortgage interest rate;

		(12)	with respect to each ARM loan, the periodic rate cap;

		(13)	with respect to each ARM loan, the gross margin;

		(14)	rounding method;

		(15)	ARM rounding percent;

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		(16)	ARM look back;

		(17)	ARM index;

		(18)	Interest only flag;

		(19)	Interest only term;

		(20)	a code indicating if the Mortgage Loan is a MERS Mortgage Loan and, if so, the MIN;

		(21)	a code indicating if the Mortgage Loan is a Co-op Loan; and

		(22)	Servicer loan ID.

 

“Mortgage
Note” The original executed note or other evidence of indebtedness of a Mortgagor under a Mortgage Loan.

 

“Mortgaged
Property” The underlying property securing the Mortgage Loan.

 

“Mortgagor”
The obligor on a promissory note.

 

“Opinion of
Counsel” A written opinion of counsel acceptable to the Custodian.

 

“Originator”
Each of APM, BCM, BEN, CTB, FAM, FRB, FCM, GFC, PHH, PL, SFS, SSB or WMC, and their respective successors and assigns, in
its role as seller of the Mortgage Loans under the APM MLSA, the BCM MLSA, the BEN MLSA, the CTB MLSA, the FAM MLSA, the FRB MLSA,
the FCM MLSA, the GFC MLSA, the PHH MLSA, the PL MLSA, the SFS MLSA, the SSB MLSA or the WMC MLSA, as applicable.

 

“Person”
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).

 

“PHH”
PHH Mortgage Corporation, a New Jersey corporation.

 

“PHH
MLSA” The Mortgage Loan Flow Purchase,
Sale & Servicing Agreement, dated as of July 21, 2010, between Redwood Residential Acquisition Corporation and PHH,
as amended by the Assignment, Assumption and Recognition Agreement, dated March 29, 2012, by and among the Seller, the Depositor,
the Trustee, and PHH, and acknowledged by the Master Servicer.

 

“PL”
PrimeLending, a PlainsCapital Company, a Texas corporation.

 

“PL
MLSA” The Flow Mortgage Loan Purchase and
Sale Agreement, dated as of January 30, 2011, between Redwood Residential Acquisition Corporation, and PL,
as amended by the Assignment of Representations and Warranties Agreement, dated March 29, 2012, by and among the Seller, the Depositor,
the Trustee, and PL, and acknowledged by the Master Servicer.

 

“Pooling
and Servicing Agreement” As defined in the first paragraph of this Custodial Agreement.

 

“Proprietary
Lease” The lease on a co-op unit evidencing the possessory interest of the owner of the Co-op Shares in such co-op unit.

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“Rejected
Release Request” A Request for Release that is rejected because (i) the Custodian no longer has custody of the Mortgage
File or (ii) the Request for Release is improperly prepared.

 

“Request for
Release” A request for a release from a Servicer or the Master Servicer of a Mortgage File either in an electronic format
or signed by an Authorized Representative of a Servicer or the Master Servicer, in the form attached hereto as Exhibit F.

 

“Securities
Administrator” Wells Fargo Bank, N.A., as securities administrator under the Pooling and Servicing Agreement.

 

“Seller”
Redwood Residential Acquisition Corporation, as seller of the Mortgage Loans under the Mortgage Loan Purchase and Sale Agreement,
dated March 29, 2012, by and between Redwood Residential Acquisition Corporation
and Sequoia Residential Funding, Inc.

 

“Servicer”
Each of CEN, FRB, or PHH, and their respective successors and assigns, in its role as servicer of the Mortgage Loans under
the CEN MLSA, the FRB MLSA, or the PHH MLSA, as applicable.

 

“SFS” Shore
Financial Services, Inc., a Michigan Corporation.

 

“SFS MLSA”
The Flow Mortgage Loan Purchase and Sale Agreement dated as of December 1, 2011, between Redwood Residential Acquisition Corporation,
and SFS, as amended by the Assignment of Representations and Warranties Agreement, dated March 29, 2012, by and among the Seller,
the Depositor, the Trustee, and SFS, and acknowledged by the Master Servicer.

 

“SSB”
Sterling Savings Bank, a Washington state-chartered banking institution.

 

“SSB
MLSA” The Flow Mortgage Loan Purchase and
Sale Agreement, dated as of March 1, 2011, between Redwood Residential Acquisition Corporation, and SSB,
as amended by the Assignment of Representations and Warranties Agreement, dated March 29, 2012, by and among the Seller, the Depositor,
the Trustee, and SSB, and acknowledged by the Master Servicer.

 

“Trust
Fund” The trust fund created pursuant to the Pooling and Servicing Agreement.

 

“WMC”
Wintrust Mortgage, a division of Barrington Bank and Trust, an Illinois corporation.

 

“WMC MLSA”
The Flow Mortgage Loan Purchase and Sale Agreement dated as of June 1, 2011, between Redwood Residential Acquisition Corporation,
and WMC, as amended by the Assignment of Representations and Warranties Agreement, dated March 29, 2012, by and among the Seller,
the Depositor, the Trustee, and WMC, and acknowledged by the Master Servicer.

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ARTICLE 2.

CUSTODIAL TERMS

 

Section 2.1. Appointment
of Custodian. The Trustee hereby appoints the Custodian to act as custodian of the Mortgage Files for the Mortgage Loans delivered
to the Custodian pursuant to this Custodial Agreement and the Custodian hereby accepts such appointment.

 

Section 2.2. Custodian
Fees. The Master Servicer hereby agrees to pay the Custodian, out of its own funds and not funds of the Trust Fund, the fees
and expenses of the Custodian as described on Exhibit E attached hereto. The obligation of the Master Servicer to pay the fees
for services described on Exhibit E hereto shall apply to the Custodian’s services until the termination of this Custodial
Agreement, unless the parties hereto mutually agree upon a different schedule. All fees and expenses of the Custodian for services
not described in this Custodial Agreement or Exhibit E shall be reimbursed by the Trust Fund, subject to the limitations on reimbursements
in clause (B) of the definition of Available Distribution Amount in the Pooling and Servicing Agreement.

 

All
of the Custodian’s fees and expenses shall be due upon receipt of an invoice from the Custodian. The Master Servicer
shall notify the Custodian in writing of any disputed fees or expenses within 60 days of the invoice date, specifying the subject
matter of the dispute. The obligations of the Master Servicer to
pay Custodian for such fees and expenses in connection with services provided by Custodian hereunder can be transferred along with
the assignment of this Custodial Agreement. All accrued and unpaid fees and expenses and any other amounts due and owing to the
Custodian under this Custodial Agreement shall survive the termination, resignation or removal of the Custodian.

 

Upon the issuance of
the Mortgage Certificates, the Depositor shall pay to the Custodian a loan file review fee of $4.00 per Mortgage File. The Depositor
shall not be responsible for any other fees or expenses of the Custodian under this Custodial Agreement, other than as set forth
on Exhibit E hereto.

 

 

ARTICLE 3.

CUSTODY OF MORTGAGE DOCUMENTS

 

Section 3.1. Delivery
of Mortgage Files. The Depositor shall deliver or cause to be delivered to the Custodian, on a date mutually agreed upon among
the parties hereto, a Mortgage Loan Schedule and, to the extent made available to the Depositor, the following documents for each
Mortgage Loan listed on such Mortgage Loan Schedule, to be held by the Custodian for the benefit of the Trustee:

 

(a)With respect to any Mortgage Loan
that is not a Co-op Loan:

 

		(i)	The original Mortgage Note, bearing all intervening endorsements, endorsed, “Pay to the order
of                    , without
recourse” and signed in the name of the applicable Originator, by an authorized officer or, in the case of a Mortgage Loan
serviced by FRB, if the original Mortgage Note has been lost or destroyed, a copy of the note together with a lost note affidavit.
In the event that the Mortgage Loan was acquired by the Originator in a merger, the endorsement must be by the applicable Originator,
as “[APM/BCM/BEN/CTB/FAM/FRB/FCM/GFC/PHH/PL/SFS/SSB/WMC], successor by merger to [name of predecessor]”; and in the
event that the Mortgage Loan was acquired or originated by APM, BCM, BEN, CTB, FAM, FRB, FCM, GFC, PHH, PL, SFS, SSB or WMC while
doing business under another name, the endorsement must be by APM, BCM, BEN, CTB, FAM, FRB, FCM, GFC, PHH, PL, SFS, SSB or WMC,
as the case may be, “[APM/BCM/BEN/CTB/FAM/FRB/FCM/GFC/PHH/PL/SFS/SSB/WMC], formerly known as [previous name]”. In the
event the mortgagee shown on the Mortgage Note is not APM, BCM, BEN, CTB, FAM, FRB, FCM, GFC, PHH, PL, SFS, SSB or WMC, the endorsement
on the Mortgage Note must also reflect a complete chain of title to APM, BCM, BEN, CTB, FAM, FRB, FCM, GFC, PHH, PL, SFS, SSB or
WMC, as applicable.

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		(ii)	The original Mortgage, or a copy of the Mortgage, with evidence of recording thereon certified
by the appropriate recording office to be a true copy of the recorded Mortgage, or, if the original Mortgage has not yet been returned
from the recording office, a copy of the original Mortgage together with a certificate of either the closing attorney, an officer
of the title insurer which issued the related title insurance policy or an officer of APM, BCM, BEN, CTB, FAM, FRB, FCM, GFC, PHH,
PL, SFS, SSB or WMC , as applicable, certifying that the copy is a true copy of the original of the Mortgage which has been delivered
by such officer or attorney for recording in the appropriate recording office of the jurisdiction in which the Mortgaged Property.

 

		(iii)	In the case of each Mortgage Loan that is not a MERS Mortgage Loan, the original assignment of
the Mortgage from the applicable Originator, prepared in blank, which assignment shall be in form and substance acceptable for
recording. In the event that the Mortgage Loan was acquired by such Originator in a merger, the assignment must be by APM, BCM,
BEN, CTB, FAM, FRB, FCM, GFC, PHH, PL, SFS, SSB or WMC, as the case may be, “[APM/BCM/BEN/CTB/FAM/FRB/FCM/GFC/PHH/PL/SFS/SSB/WMC],
successor by merger to [name of predecessor]”; and in the event that the Mortgage Loan was acquired or originated by an Originator
while doing business under another name, the assignment must be by such Originator, “[APM/BCM/BEN/CTB/FAM/FRB /FCM/GFC/PHH/PL/SFS/SSB/WMC],
formerly known as [previous name]”. In the event the mortgagee shown in the Mortgage Note is not APM, BCM, BEN, CTB, FAM,
FRB, FCM, GFC, PHH, PL, SFS, SSB or WMC, executed assignments of mortgage with respect to each originator and prior owner must
be delivered. In the case of each Mortgage Loan that is a MERS Mortgage Loan, the original assignment of the Mortgage from MERS,
prepared in blank, which assignment shall be in form and substance acceptable for recording.

 

		(iv)	The original policy of title insurance, or a certified true and complete copy of such policy, or
an uncertified copy of such policy or, if the policy has not yet been issued, a copy of the written commitment or interim binder
issued by the title insurance company.

 

		(v)	Originals, or certified true copies from the appropriate recording office, of any intervening assignments
of the Mortgage with evidence of recording thereon.

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		(vi)	Originals or copies of all assumption and modification agreements, if any, or, in the case of a
Mortgage Loan originated by PHH or SSB, if the original assumption and modification agreement has not yet been returned from the
recording office, a certified copy of such assumption and modification agreement.

 

		(vii)	Originals or copies of each power of attorney, surety agreement and guaranty agreement.

 

		(viii)	With respect to a Mortgage Loan originated by any Originator other than PHH,
                                                                   the                                                                                                      original or a
                                                                   copy of any security agreement,                                                                    chattel
                                                                   mortgage or equivalent document executed in connection with the
                                                                   Mortgage, if any.

 

		(b)	With respect to each Co-op Loan:

 

		(i)	the original Mortgage Note together with any applicable riders, endorsed in blank, with all prior
and intervening endorsements as may be necessary to show a complete chain of endorsements and, in the case of a Co-op Loan originated
by PHH, the original or a copy of the guaranty of the Co-op Loan, if any;

 

		(ii)	the original security agreement;

 

		(iii)	the original proprietary lease and an original assignment of the proprietary lease in blank;

 

		(iv)	the original recognition agreement;

 

		(v)	the original stock certificate representing the Co-op Shares and original stock power in blank;

 

		(vi)	the original UCC-1 financing statement with evidence of filing; and

 

		(vii)	the original UCC-3 assignment in blank.

 

If with respect to
any Mortgage Loan there is a not a complete chain of endorsements, the Custodian shall so state in the Exception Report.

 

With respect to any
documents which have been delivered or are being delivered to recording offices for recording and have not been returned in time
to permit their delivery hereunder at the time required, in lieu of delivering such original documents, the Depositor shall deliver
or shall cause to be delivered to the Custodian a copy thereof certified as a true, correct and complete copy of the original which
has been transmitted for recordation, if available to the Depositor. The Depositor shall deliver or shall cause to be delivered
such original documents to the Custodian promptly when they are received.

 

The Custodian hereby
acknowledges that the Mortgage File and any other documents, instruments or papers relating to a Mortgage Loan now or hereafter
deposited with the Custodian (and not released in accordance with this Custodial Agreement) will be held by the Custodian as the
duly appointed agent of the Trustee.

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Section 3.2. Review
of Mortgage Files. The Custodian shall review items in Section 3.1(a)(i)
through (viii) and Section 3.1(b)(i) through (vii) (if applicable) of the Mortgage File and report to the Trustee any exceptions
within one Business Day following the Delivery Date, or, if more than 200 Mortgage Files are delivered on the same day, within
one additional Business Day following the Delivery Date for each additional 100 Mortgage Files delivered to the Custodian on a
Delivery Date. Furthermore, the Custodian shall compare the Mortgage Note to items (1) through (9), and (if applicable) items (10)
through (21), set forth in the Mortgage Loan Schedule of this Custodial Agreement. With respect to Section 3(b)(iv), the Custodian
shall have no obligation to compare the date of the funding of any Mortgage Loan or the lien priority of any Mortgage Loan with
the information in the title policy.

 

Section
3.3. Certifications and Reports. Upon the completion of its review of each Mortgage
File pursuant to Section 3.2 hereof, the Custodian shall deliver to the Trustee, the Depositor,
the Seller, and the applicable Originator (in an electronic format), a Certification in the form of Exhibit G with respect to the
related Mortgage Loans, in which the Custodian shall certify that such Mortgage Loans are held for the Trustee, and that,
as to each Mortgage Loan listed on the Mortgage Loan Schedule (other than any Mortgage Loan
paid in full or any Mortgage Loan specifically identified
in such certification as not covered by such certification), (i)
all documents described in Section 3.1(a), and if applicable,
all documents described in Section 3.1(b), of this Custodial
Agreement are in its possession, and (ii) such documents have been reviewed by the Custodian
and appear on their face to be regular and to relate to such Mortgage Loan and satisfy the requirements set forth in Section 3.1
and the Mortgage Note conforms to the Mortgage Loan Schedule items specified in Section 3.1.

 

If
the Custodian determines from such verification that any discrepancy or deficiency exists with respect to a Mortgage File,
the Custodian shall note such discrepancy
on the schedule of exceptions attached to the Certification (the “Exception
Report”). Each
Exception Report shall list all Exceptions using such codes substantially as listed on Annex 1.
Each Exception Report shall be superseded by a subsequently issued Exception Report and shall
replace the then existing Exception Report.

 

Within
60 days after the Closing Date (as defined in the Pooling and Servicing Agreement), the Depositor shall complete or cause to be
completed the assignments of mortgage (“Assignments of Mortgage”) in the name of “U.S. Bank National
Association, as Trustee, for Sequoia Mortgage Trust Mortgage Pass-Through
Certificates, Series 2012-2” (or shall prepare or cause to be prepared new forms of Assignment of Mortgage so completed in
the name of the Trustee) for each Mortgage Loan. The Custodian shall release such completed Assignments of Mortgage to the Depositor
or its designee for recording and the Depositor shall cause such recorded Assignments of Mortgage (or, in lieu of the original
recorded Assignment of Mortgage, a duplicate or conformed copy of the Assignment of Mortgage, together with a certificate of receipt
from the recording office, certifying that such copy represents a true and correct copy of the original and that such original
has been or is currently submitted to be recorded in the appropriate governmental recording office of the jurisdiction where the
Mortgaged Property is located) to be returned to the Custodian within 270 days after the Closing Date, and added to the Mortgage
Files. On the 270th day after the Closing Date (or the first Business Day thereafter) the Custodian shall deliver a final Certification
in the form annexed hereby as Exhibit G to the Trustee, against receipt of the prior Certification from the Trustee for cancellation.

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In the event a Certification
is lost, destroyed or otherwise unavailable or a revised Certification is required, upon written request to the Custodian, the
Custodian will issue a new Certification. Upon the issuance of a new Certification, the prior Certification for such Mortgage Loans
shall be deemed canceled. The Custodian shall be under no duty or obligation to inspect, review or examine any documents, instruments,
certificates or other papers constituting part of the Mortgage File to determine that the same are genuine, enforceable, recordable
or appropriate for the represented purpose, that they have actually been recorded or that they are other than what they purport
to be on their face.

 

Section 3.4.  Release
of Mortgage Files.

 

		(a)	Upon the payment in full of a Mortgage Loan and within two Business Days of its receipt of a Request
for Release, the Custodian will either (i) release the related Mortgage File to or upon the order of the requesting party, as directed
in the Request for Release, or (ii) notify the requesting party in writing or in a mutually agreed upon electronic format of the
Rejected Release Request and take no further action on the Request for Release.

 

		(b)	Upon the purchase or repurchase of any
Mortgage Loan or the substitution of any Mortgage Loan pursuant to the APM MLSA, BCM MLSA, BEN MLSA, the CTB MLSA, the FAM
MLSA, the FRB MLSA, the FCM MLSA, the GFC MLSA, the PHH MLSA, the PL MLSA, the SFS MLSA, the SSB MLSA or the WMC MLSA,
or the Pooling and Servicing Agreement and within two Business Days of its receipt of a Request for Release, the Custodian will
either (i) release the related Mortgage File to or upon the order of the requesting party, as directed in the Request for Release,
or (ii) notify the requesting party in writing or in a mutually agreed upon electronic format of the Rejected Release Request and
take no further action on the Request for Release.

 

		(c)	Upon the foreclosure of any Mortgage Loan or to facilitate modification, enforcement, and collection
procedures with respect to any Mortgage Note and within two Business Days of its receipt of a Request for Release, the Custodian
will either (i) release the related Mortgage File to the requesting party as directed in the Request for Release, or (ii) notify
the requesting party in writing or in a mutually agreed upon electronic format of the Rejected Release Request and take no further
action on the Request for Release.

 

		(d)	From time to time and as appropriate for the sale to a third party purchaser of any of the Mortgage
Loans, the Custodian is hereby authorized, upon receipt of a Request for Release from a requesting party, to release or cause to
be released to the related third party purchaser the Mortgage Loans set forth in such Request for Release together with a transmittal
letter substantially in the form attached hereto as Exhibit H. Upon receipt of the payoff amount for such sale and notice thereof
from the Securities Administrator, the Trustee will provide the Custodian written notification of its release of interest in such
Mortgage Loans;

 

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		(e)	Any Certification issued while any Mortgage File is held by a party other than the Custodian shall
reflect that the Custodian holds such Mortgage File as custodian pursuant to this Custodial Agreement, but the Exception Report
shall specify that the Custodian has released such Mortgage File to the Person specified therein pursuant to this Section 3.4.
Upon receipt of a written certification from the Master Servicer or a Servicer to the Custodian that a Mortgage Loan has been liquidated,
the Custodian shall thereupon reflect any such liquidation on its Mortgage Loan Schedule.

 

		(f)	Notwithstanding the foregoing and unless otherwise required by state law, as notified by the Master
Servicer, in the event the Custodian receives a Request for Release within five (5) days of the Delivery Date, the Custodian shall
have a reasonable period of time to release the Mortgage File in accordance with this Section 3.4.

 

Each person initially
authorized to give and receive notices, requests and instructions and to deliver certificates and documents in connection with
this Custodial Agreement on behalf of the Trustee, the Depositor, APM, as an Originator, BCM, as an Originator, BEN, as an Originator,
CEN, as a Servicer, CTB, as an Originator, FAM, as an Originator, FRB, as a Servicer and as an Originator, FCM, as an Originator,
GFC, as an Originator, PHH, as a Servicer and as an Originator, PL, as an Originator, SFS, as an Originator, SSB, as an Originator
and WMC, as an Originator, or as the Master Servicer, is listed, together with the specimen signature for such person, on Exhibit
D-1, Exhibit D-2, Exhibit D-3A, Exhibit D-3B, Exhibit D-3C, Exhibit D-3D, Exhibit D-3E, Exhibit D-3F, Exhibit D-3G, Exhibit D-3H,
Exhibit D-3I, Exhibit D-3J, Exhibit D-3K, Exhibit D-3L, Exhibit D-3M, Exhibit D-3N and Exhibit D-3O hereof, respectively (each
person so authorized from time to time, an “Authorized Representative”).

 

From time to time,
the Trustee, the Depositor, the Seller, the Master Servicer, a Servicer or an Originator may deliver to the Custodian a certification
in the form of Exhibit C hereof, reflecting changes in the respective list of Authorized Representatives, but the Custodian shall
be entitled to rely conclusively on the each current list of Authorized Representatives until receipt of a superseding certification
in the form of Exhibit C hereof.

 

Section 3.5.
Inspection of Mortgage Files. Upon at least two Business Days prior written notice to the Custodian, a Servicer, or the
agent of such Servicer, may inspect and examine, at any time during ordinary business hours of the Custodian, any or all Mortgage
Files relating to Mortgage Loans serviced by such Servicer that are in the possession, or under the control of, the Custodian.
Such Servicer shall pay all fees, costs, and expenses incurred by the Custodian in connection with any such inspection and/or examination.

 

Section 3.6. Copies
of Mortgage Files. Upon at least two Business Days prior written notice to the Custodian, the Custodian shall provide the Trustee
with copies of any document or documents contained in the Mortgage File for any Mortgage Loan. The Master Servicer shall pay copy
fees and expenses as provided in Exhibit E attached hereto.

 

Section 3.7. Documents
Missing from Mortgage Files. Upon the request of the Trustee or the Depositor, the Custodian shall, not later than one Business
Day after receipt of such request, provide to the Depositor or the Trustee, as the case may be, a list of all the Mortgage Loans
for which Custodian holds a Mortgage File pursuant to this Custodial Agreement and a list of documents missing from each Mortgage
File. Such list may be in the form of a copy of the Mortgage Loan Schedule with manual deletions to specifically denote any Mortgage
Loans paid off, liquidated or repurchased since the date of this Custodial Agreement.

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ARTICLE 4.

CONCERNING THE CUSTODIAN

 

Section 4.1.
Custodian May Resign: Trustee May Remove Custodian.

 

		(a)	The Custodian may resign from the obligations and duties hereby imposed upon it as such obligations
and duties relate to its acting as Custodian of any or all of the Mortgage Loans by giving 60 days’ written notice thereof
to the Trustee. Upon receiving such notice of resignation, the Trustee shall either (i) take custody of the Mortgage Files itself
and give prompt notice thereof to Custodian or (ii) promptly appoint a successor Custodian by written instrument, in duplicate,
which instrument shall be delivered to the resigning Custodian and to the successor Custodian. If the Trustee shall not have taken
custody of the Mortgage Files and no successor Custodian shall have been so appointed and have accepted appointment within 30 days
after the giving of such notice of resignation, the resigning Custodian may petition any court of competent jurisdiction for the
appointment of a successor Custodian. Any and all fees and expenses incurred by the Custodian relating to any such petition shall
be paid by the Custodian.

 

		(b)	The Trustee may remove the Custodian for cause upon 60 days’ prior written notice. In such
event, the Trustee shall either (i) take custody of the Mortgage Files itself and give prompt notice thereof to Custodian or (ii)
promptly appoint a successor Custodian by written instrument, in duplicate, which instrument shall be delivered to the removed
Custodian and to the successor Custodian. In the event of the removal of the Custodian for cause, the Master Servicer shall pay
any release fee charged by the Custodian. In the event of any such removal, the Custodian shall promptly transfer to the successor
custodian, as directed by Trustee, all Mortgage Files being administered under this Custodial Agreement relating to such Mortgage
Loans. The cost and expenses relating to such file transfer shall be paid by the Custodian. If the Trustee shall not have taken
custody of the Mortgage Files and no successor Custodian shall have been so appointed and have accepted appointment within 30 days
after the giving of such notice of removal, the removed Custodian may petition any court of competent jurisdiction for the appointment
of a successor Custodian. Any and all fees and expenses incurred by the Custodian relating to any such petition shall be paid by
the Custodian.

 

		(c)	In the event of resignation by the Custodian or removal of the Custodian by the Trustee due to
a breach of this Agreement by the Custodian, then the cost and expenses of transfer of the Mortgage Files shall be the responsibility
of the Custodian; provided, however, in the event that the Custodian terminates its obligations and resigns hereunder due in part
to nonpayment of the Custodian’s fees or expenses that are the responsibility of the Master Servicer hereunder, then such
transfer shall be at the expense of the Master Servicer.

 

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		(d)	In the event that the Custodian moves any Mortgage File from the state
where the Mortgage Files are initially kept pursuant to this Agreement, the Custodian shall provide prompt written notice to the
Trustee of the location of such Mortgage File.

 

		(e)	No resignation or termination of the Custodian shall be effective hereunder until the Trustee or
a successor Custodian acceptable to the Trustee and the Depositor has assumed the duties of Custodian hereunder. The Master Servicer
shall pay all the fees and expenses of a successor Custodian to the extent any such fees and expenses are required to be paid by
the Master Servicer as specified in Exhibit E.

 

Section 4.2. Merger
or Consolidation of Custodian. Any entity into which the Custodian may be merged or converted or with which it may be consolidated,
or any entity resulting from any merger, conversion, or consolidation to which the Custodian shall be a party, or any entity succeeding
to the business of the Custodian, shall be the successor of the Custodian hereunder, without the execution or filing of any paper
or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.

 

Section 4.3.
Limitation of Custodian’s Duties. The Custodian shall have no duties or obligations other than those specifically
set forth herein or as may subsequently be agreed to in writing by the parties hereto. The Custodian:

 

		(a)	may consult with counsel and any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with such opinion
of counsel; and shall not be liable for any error of judgment, or for any act done or step taken or omitted by it, in good faith,
unless it shall be provided that the Custodian was negligent in ascertaining the pertinent facts;

 

		(b)	shall use the same degree of care and skill as is reasonably expected of financial institutions
acting in comparable capacities, provided that this subsection shall not be interpreted to impose upon the Custodian a higher standard
of care than that set forth herein;

 

		(c)	will be regarded as making no representations and having no responsibilities as to the validity,
perfectibility, sufficiency, value, genuineness, ownership or transferability of the Mortgage Loans, and will not be required to
and will not make any representations as to the validity, value, perfectibility, genuineness, ownership or transferability of the
Mortgage Loans;

 

(d) may
rely on and shall be protected in acting upon any certificate, instrument, opinion, notice, letter, facsimile or other document
delivered to it and in good faith believed by it to be genuine and to have been signed by the proper party or parties; may rely
on and shall be protected in acting upon the written instructions of the Trustee and such employees and representatives of the
Trustee as the Trustee may hereinafter designate in writing;

 

		(g)	shall not be responsible for the validity and perfection of the Trustee’s security interest
in the Mortgage Loans hereunder, other than the Custodian’s obligation to take possession of the Mortgage Files as set forth
in Section 3.1 hereof, and makes no representation or warranty with respect to, the validity, adequacy or perfection of any lien
upon or security interest in any Mortgage File;

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		(h)	shall have no responsibility or duty with respect to any Mortgage Files while not in its possession;

 

		(i)	shall be under no obligation to make any investigation into the facts or matters stated in any
resolution, exhibit, request, representation, opinion, certificate, statement, acknowledgement, consent, order or document in the
Mortgage Files;

 

		(j)	shall not be liable with respect to any action taken or omitted to be taken in accordance with
any written direction, instruction, acknowledgement, consent or any other communication that is from the Trustee or any other Person
specified herein and that complies with the provisions of this Custodial Agreement.

 

		(k)	shall not be responsible for preparing or filing any reports or returns relating to federal, state
or local income taxes with respect to this Custodial Agreement, other than for the Custodian’s compensation or for reimbursement
of expenses;

 

		(l)	shall have no duty to qualify to do business in any jurisdiction, other than (i) any jurisdiction
where any Mortgage File is or may be held by the Custodian from time to time hereunder, and (ii) any jurisdiction where its ownership
of property or conduct of business requires such qualification and where failure to qualify could have a material adverse effect
on the Custodian or its property or business or on the ability of the Custodian to perform it duties hereunder; and

 

		(m)	shall have no duty to ascertain whether or not any cash amount or payment has been received by
the Securities Administrator, any Servicer, any Originator, any Mortgage Loan purchaser or seller, or any other third person.

 

		(n)	In the event that (i) the Trustee or the Custodian shall be served by a third party with any type
of levy, attachment, writ or court order with respect to any Mortgage File or any document included within a Mortgage File or (ii)
a third party shall institute any court proceeding by which any Mortgage File or a document included within a Mortgage File shall
be required to be delivered otherwise than in accordance with the provisions of this Custodial Agreement, the Trustee or the Custodian
(whichever is the party receiving such service) shall promptly deliver or cause to be delivered to the applicable Servicer copies
of all court papers, orders, documents and other materials concerning such proceedings. The Custodian shall, to the extent permitted
by law and any court order, continue to hold and maintain all Mortgage Files that are the subject of such proceedings pending an
order of a court of competent jurisdiction permitting or directing disposition thereof. Upon final determination of such court,
and if permitted by such determination, the Custodian shall dispose of such Mortgage File or any document included within such
Mortgage File as directed in writing by the applicable Servicer, which shall give a direction consistent with such court determination.
Neither the Custodian nor the Trustee shall have any obligation to monitor or appear in any such proceeding on behalf of or in
the name of the Trustee. Expenses and fees (including, without limitation, attorney’s fees and expenses) of the Custodian
or the Trustee, as applicable, incurred as a result of such proceedings shall be reimbursed by the Trust Fund, subject to the limitations
on reimbursements in clause (B) of the definition of Available Distribution Amount in the Pooling and Servicing Agreement.

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The provisions of this
Section 4.3 shall survive the resignation or removal of the Custodian and the termination or transfer of this Custodial Agreement.

 

Section 4.4.
Standard of Care; Indemnification.

 

		(a)	The Seller agrees to indemnify and hold harmless the Custodian and each of the Custodian’s
parent, affiliates, subsidiaries, directors, officers, employees and agents against any and all claims, liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever, including
reasonable attorneys’ fees and expenses, that may be imposed on, incurred by, or asserted against it or them in any way relating
to or arising out of this Custodial Agreement or any action taken or not taken by it or them under this Custodial Agreement or
any related document or agreement unless such claims, liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements were imposed on, incurred by or asserted against Custodian solely as a result of the material
breach by Custodian of its obligations hereunder, which breach was caused by negligence, bad faith, or willful misconduct on the
part of the Custodian. The foregoing indemnification shall survive the termination or transfer of this Custodial Agreement, and
the resignation or removal of the Custodian.  

 

		(b)	The Custodian shall indemnify and hold harmless the Seller, the Depositor, the Master Servicer
(where the Master Servicer and the Custodian are not the same entity) and the Trustee and each of their directors, officers, employees
and agents from and against any and all losses, liabilities, obligations, damages, penalties, actions, judgments, suits, claims,
costs, expenses (including attorneys’ fees and related expenses), disbursements or any and all other costs and expenses of
any kind or nature whatsoever that may be incurred in connection with, or arising out of, the Custodian’s willful misfeasance,
bad faith or negligence in the performance of its duties hereunder or by reason of its reckless disregard for its obligations and
duties hereunder, including but not limited to its failure to produce (or provide evidence of delivery of), upon any request hereunder,
any Mortgage Note or other document or instrument comprising a Mortgage File after the Custodian has certified that such document
or instrument was in its possession pursuant to the terms hereof. Neither the Custodian nor any of its
directors, officers, agents or employees, shall be liable for any action taken or omitted to be taken by it or them hereunder or
in connection herewith in good faith and believed by it or them to be within the purview of this Custodial Agreement, except as
set forth above. In no event shall the Custodian or its directors, officers, agents or employees be held liable for any
special, indirect or consequential damages resulting from any action taken or omitted to be taken by it or any of them hereunder
or in connection herewith even if advised of the possibility of such damages. This indemnification provided in this Section 4.4(b)
shall survive the termination of this Custodial Agreement and the resignation or removal of the Custodian hereunder.

 

		(c)	No provision of this Custodial Agreement shall require the Custodian
to expend or risk its own funds or otherwise incur financial liability (other than expenses or liabilities otherwise required to
be incurred by the express terms of this Custodial Agreement, including but not limited to Section 4.4(b) hereof) in the performance
of its duties under this Custodial Agreement if it shall have reasonable grounds for believing that repayment of such funds or
adequate indemnity is not reasonably assured to it.

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		(d)	If the Seller fails to indemnify the Custodian as required in this Section 4.4, the Trust Fund
shall indemnify the Custodian as required under this Section 4.4, subject to the limitation on reimbursements described in clause
(B) of the definition of Available Distribution Amount in the Pooling and Servicing Agreement.

 

Section 4.5. Force
Majeure. The Custodian will not have any liability for failure to perform or delay in performing duties set forth herein if
the failure or delay is due to an event of force majeure. A force majeure is an event or condition beyond the Custodian’s
control, such as, without limitation, a natural disaster, civil unrest, state of war, or act of terrorism. The Custodian will make
reasonable efforts to prevent performance delays or disruptions in the event of such occurrences.

 

Section 4.6. Accounting.
On or before March 1st of each calendar year, beginning with March 1, 2012, unless a Form 15 suspension notice has been filed on
behalf of the Trust Fund, and in each year in which the Depositor has instructed the Securities Administrator to file Exchange
Act reports, the Custodian shall, at its own expense, cause a firm of independent public accountants (who may also render other
services to Custodian), which is a member of the American Institute of Certified Public Accountants, to furnish to the Depositor,
the Securities Administrator, the Seller and each Servicer a report to the effect that such firm that attests to, and reports on,
the assessment made by such asserting party pursuant to Section 4.7 below, which report shall be made in accordance with standards
for attestation engagements issued or adopted by the Public Company Accounting Oversight Board.

 

Section 4.7. Compliance
Certification. On or before March 1st of each calendar year, beginning with March 1, 2012, unless a Form 15 suspension notice
has been filed on behalf of the Trust Fund, and in each year in which the Depositor has instructed the Securities Administrator
to file Exchange Act reports, the Custodian shall deliver to the Depositor, the Securities Administrator, the Seller and each Servicer
a report regarding its assessment of compliance with the servicing criteria identified in Exhibit I attached hereto, as of and
for the period ending the end of the fiscal year ending no later than December 31 of the year prior to the year of delivery of
the report, with respect to asset-backed security transactions taken as a whole in which the Custodian is performing any of the
servicing criteria specified in Exhibit I and that are backed by the same asset type backing such asset-backed securities. Each
such report shall include (a) a statement of the party’s responsibility for assessing compliance with the servicing criteria
applicable to such party, (b) a statement that such party used the criteria identified in Item 1122(d) of Regulation AB (17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time, and subject to such clarification and interpretation as
have been provided by the Commission in the adopting release (Asset-Backed Securities, Securities Act Release No. 33-8518, 70 Fed.
Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the Commission, or as may be provided by the Commission or its staff from
time to time, “Regulation AB”) (§ 229.1122(d)) to assess compliance with the applicable servicing criteria,
(c) disclosure of any material instance of noncompliance identified by such party, and (d) a statement that a registered public
accounting firm has issued an attestation report on such party’s assessment of compliance with the applicable servicing criteria,
which report shall be delivered by the Custodian as provided in this Section 4.7.

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Section 4.8. Subcontracting.
The Custodian has not and shall not engage any subcontractor which is “participating in the servicing function” within
the meaning of Item 1122 of Regulation AB.

 

 

ARTICLE 5.

REPRESENTATIONS AND WARRANTIES

 

Section 5.1. Capital
Requirements. The Custodian represents, warrants, and covenants that:

 

		(a)	The Custodian is (i) a national banking association duly organized, validly existing and in good
standing under the laws of the United States and (ii) duly qualified and in good standing and in possession of all requisite authority,
power, licenses, permits and franchises in order to execute, deliver and comply with its obligations under the terms of this Custodial
Agreement. Nothing in this Agreement shall be deemed to impose on the Custodian any duty to qualify to do business in any jurisdiction,
other than (i) any jurisdiction where any Mortgage Loan is or may be held by the Custodian from time to time hereunder, and (ii)
any jurisdiction where its ownership of property or conduct of business requires such qualification and where failure to qualify
could have a material adverse effect on the Custodian or its property or business or on the ability of the Custodian to perform
it duties hereunder;

 

		(b)	The execution, delivery and performance of this Custodial Agreement have been duly authorized by
all necessary corporate action and the execution and delivery of this Custodial Agreement by the Custodian in the manner contemplated
herein and the performance of and compliance with the terms hereof by it will not (i) violate, contravene or create a default under
any applicable laws, licenses or permits to the best of its knowledge, or (ii) violate, contravene or create a default under any
charter document or bylaw of the Custodian or, to the best of the Custodian’s knowledge, any contract, agreement or instrument
to which the Custodian or by which any of its property may be bound and will not result in the creation of any lien, security interest
or other charge or encumbrance upon or with respect to any of its property;

 

		(c)	The execution and delivery of this Custodial Agreement by the Custodian and the performance of
and compliance with its obligations and covenants hereunder do not require the consent or approval of any governmental authority,
or, if such consent or approval is required, it has been obtained; and

 

		(d)	This Custodial Agreement, and each Certification issued hereunder, when executed and delivered
by the Custodian will constitute valid, legal and binding obligations of the Custodian, enforceable against the Custodian in accordance
with their respective terms, except (i) as the enforcement thereof may be limited by applicable debtor relief laws and (ii) that
certain equitable remedies may not be available regardless of whether enforcement is sought in equity or at law.

 

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		(e)	Unless the Custodian notifies the Trustee and the Depositor in writing not less than thirty (30)
days prior to any transfer of the Mortgage Files, such files will be held by the Custodian, in the Custodian’s sole discretion,
in the State of Minnesota.

 

		(f)	The Custodian represents and warrants that the Custodian is a depository institution or a trust
company subject to supervision or examination by a federal or state authority and has the combined capital and surplus of at least
$50 million.

 

Section 5.2. No
Claims to Mortgage Loans. The Custodian, solely in its capacity as Custodian, represents and warrants that (i) it took possession
of the Mortgage Loans on behalf of the Trustee, to the best of its knowledge, without written notice of any adverse claim, lien,
charge, encumbrance or security interest (including without limitation, federal tax liens or liens arising under the Employee Retirement
Income Security Act of 1974, as amended), (ii) except as permitted in this Custodial Agreement, it does not and will not, in its
capacity as Custodian, assert any claim or interest in the Mortgage Loans and will hold such Mortgage Loans pursuant to the terms
of this Custodial Agreement, and (iii) it has not encumbered or transferred its right, title or interest as Custodian in the Mortgage
Loans other than to, or as directed by, the Trustee. Notwithstanding any
other provisions of this Custodial Agreement and without limiting the generality of the foregoing, the Custodian shall not at any
time exercise or seek to enforce any claim, right or remedy, including any statutory or common law rights of set-off, if any, that
the Custodian may otherwise have against all or any part of a Mortgage File, Mortgage Loan or proceeds of either.

 

 

ARTICLE 6.

COVENANTS

 

Section 6.1. Insurance.
The Custodian will, at its own expense, maintain in full force and effect at all times during the term of this Custodial Agreement
the following:

 

		(a)	fidelity insurance;

 

		(b)	errors and omissions insurance;

 

		(c)	theft of documents insurance; and

 

		(d)	forgery insurance.

 

All such insurance
shall be in amounts with standard coverage and subject to deductibles as is customary for insurance typically maintained by banking
institutions or trust companies which act as custodians. A certificate of the respective insurer as to each such policy shall be
furnished to the Trustee, upon request.

 

Section 6.2. Storage
of Mortgage Files. The Custodian will segregate and store the Mortgage Files in secure, fire resistant storage facilities in
accordance with customary controls on access regarding the safety and security of the Mortgage Files.

 

    	19

    	 

    

ARTICLE 7.

MISCELLANEOUS

 

Section 7.1 Notices.
Any notice, demand or consent, required or permitted by this Custodial Agreement shall be in writing and shall be effective and
deemed delivered only when received by the party to which it is sent. Any such notice, demand or consent shall be deemed to have
been duly given if (i) personally delivered, (ii) mailed by registered mail, postage prepaid, (iii) delivered by overnight courier,
or (iv) transmitted via email, telegraph or facsimile, in each instance at the address listed below, or such other address as may
hereafter be furnished by any party to the other parties in writing:

 

If to the Custodian:

 

Wells Fargo
Bank, N.A.

751 Kasota
Avenue

Minneapolis,
MN 55414

Attention:
Document Custody – Sequoia Mortgage Trust 2012-2

 

If to the Master Servicer:

 

Wells Fargo
Bank, N.A.

P.O. Box 98

Columbia, MD
21046

Attention: Client Manager –
Sequoia Mortgage Trust 2012-2

 

(or, for overnight
deliveries,

9062 Old Annapolis
Road

Columbia, MD
21045

Attention: Client Manager –
Sequoia Mortgage Trust 2012-2)

 

If to the
Trustee:

 

U.S. Bank National Association

60 Livingston Avenue

EP-MN-WS3D

St. Paul, Minnesota, 55107

Attention: Structured Finance
– Sequoia Mortgage Loan Trust 2012-2

 

If the Depositor:

 

Sequoia Residential Funding,
Inc.

One Belvedere Place, Suite 330

Mill Valley, CA 94941

 

    	20

    	 

    

If to the Seller:

 

Redwood Residential Acquisition
Corporation

One Belvedere Place, Suite 330

Mill Valley, CA 94941

Attention: Sequoia Mortgage Trust
2012-2

 

If to APM:

 

American Pacific Mortgage Corporation

3000 Lava Ridge Court, Suite
200

Roseville, California 95661

Attention: Chito Schnupp, EVP

 

If to BCM:

 

Bank of Commerce Mortgage

3130 Crow Canyon Place –
Suite 300

San Ramon, California 94583

Attention: Scott M. Simonich

 

If to BEN:

 

Benchmark Bank

5700 Legacy Drive – Suite
10

Plano, Texas 75024

Attention: Kay Roubadeaux

 

If to CEN:

 

Cenlar FSB

425 Phillips Boulevard

Ewing, NJ 08618

 

With a copy address to Corporate
Counsel at the same address

 

If to CTB:

 

Cole Taylor Bank

7789 East M-36

Whitmore Lake, MI 48189

Attention: Phil Miller

 

With a copy to

Cole Taylor Bank

9550 W. Higgins Road

Rosemont, IL 960018

Chicago, IL 60606

Attention: General Counsel

    	21

    	 

    

If to FAM:

 

Franklin American Mortgage Company

501 Corporate Centre Drive, Suite
400

Franklin, Tennessee 37067

Attention: Kelly C. Johnson

 

If to FRB:

 

First Republic Bank

111 Pine Street

San Francisco, CA 94111

Attention: Tony Sachs

 

If to FCM:

 

Flagstar Capital Markets Corporation

5151 Corporate Drive

Troy, Michigan 48098

Attention : Product Development
Department

 

If to GFC:

 

GuardHill Financial Corp

140 East 45th Street, 31st Floor

New York, NY, 10017

 

If to PHH:

 

PHH Mortgage Corporation

One Mortgage Way

Mt. Laurel, NJ 08054

Attention: Vice President, Servicing

 

If to PL:

 

PrimeLending, a PlainsCapital
Company

18111 Preston Road, Suite 900

Dallas, Texas 75252

Attention: Mr. Scott Eggen, SVP

 

If to SFS:

 

Shore Financial Services, Inc.

555 S. Adams Road

Birmingham, Michigan 48009

Attention: Chief Executive Officer

    	22

    	 

    

If to SSB:

 

Sterling Savings Bank Home Loan
Division

6505 218th St SW, Suite 9

Mountlake Terrace, WA, 98043

Attention: Kathrine Shairrick,
Loan Servicing

 

If to WMC:

 

Wintrust Mortgage,

a division of Barrington Bank
and Trust

1S660 Midwest Road, Suite 100

Oakbrook Terrace, Illinois 60181

Attention: Loss Mitigation

 

Section 7.2. Entire
Agreement. This Custodial Agreement contains the entire agreement among the parties hereto with respect to the subject matter
hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied,
oral or written, of any nature whatsoever with respect to the subject matter hereof, including any prior custodial agreements.
The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the
terms hereof, and no implied covenants or obligations shall be read into this Custodial Agreement concerning the Custodian. This
Custodial Agreement may not be modified or amended other than by an agreement in writing signed by the parties hereto.

 

Section 7.3.
Binding Nature of Agreement: Assignment. This Custodial Agreement shall be binding upon and inure to the benefit of the
Custodian and the Trustee and their respective and permitted assigns. The Trustee may assign its interest in any of the Mortgage
Loans held under this Custodial Agreement to a successor trustee pursuant to the Pooling and Servicing Agreement, by delivery of
the following to the Custodian: (a) written notice of such assignment identifying the Mortgage Loans to be assigned and the assignee
of such Mortgage Loans and (b) a written agreement of such assignee to assume all obligations of the Trustee under this Custodial
Agreement with respect to such Mortgage Loans. Upon receipt of any such written notice of assignment and written assumption of
obligations, the Custodian shall treat such assignee as the Trustee for all purposes of this Custodial Agreement. The Custodian
shall not assign, transfer, pledge or grant a security interest in any of its rights, benefits or privileges hereunder, nor shall
the Custodian delegate or appoint any other person or entity to perform or carry out any of its duties, responsibilities or obligations
under this Custodial Agreement, without the prior written consent of the Trustee.

 

Section 7.4. Governing
Law. This Custodial Agreement and all questions relating to its validity, interpretation, performance and enforcement shall
be governed by and construed, interpreted and enforced in accordance with the laws of the State of New York notwithstanding any
law, rule, regulation, or other conflict-of-law provisions to the contrary.

    	23

    	 

    

 

Section 7.5. Recordation
of Agreement. To the extent permitted by applicable law, this Custodial Agreement is subject to recordation in all appropriate
public offices for real property records in all the counties or other comparable jurisdictions in which any or all of the properties
subject to the mortgages are situated, and in any other appropriate public recording office or elsewhere, such recordation to be
effected by each Servicer in its sole discretion.

 

Section 7.6.
Agreement for the Exclusive Benefit of Parties. This Custodial Agreement is for the exclusive benefit of the parties hereto
and their respective successors and permitted assigns, and shall not be deemed to create or confer any legal or equitable right,
remedy or claim upon any other Person whatsoever, except that the holders of the Mortgage Certificates shall be third party beneficiaries
of this Custodial Agreement.

 

Section 7.7 Counterparts.
This Custodial Agreement may be executed simultaneously in any number of counterparts, each of which counterparts shall be deemed
to be an original, and such counterparts shall constitute one and the same instrument.

 

Section 7.8.
Indulgences: Not Waivers. Neither the failure nor any delay on the part of a party hereto to exercise any right, remedy,
power or privilege under this Custodial Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of
any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or
privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver
of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing
and is signed by the party asserted to have granted such waiver.

 

Section 7.9.
Titles Not to Affect Interpretation. The titles of sections and subsections contained in this Custodial Agreement are for
convenience only and they neither form a part of this Custodial Agreement nor are they to be used in the construction or interpretation
hereof.

 

Section 7.10.
Provisions Separable. The provisions of this Custodial Agreement are independent of and separable from each other and no
provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others
of them may be valid or unenforceable in whole or in part.

 

Section 7.11. Conflict
or Inconsistency. In the event of any conflict or inconsistency between the terms and provisions of this Custodial Agreement
and the terms and provisions of any contract, instrument or other agreement between Custodian and any third party, the terms and
provisions of this Custodial Agreement shall control, provided, however, that in the event of any conflict or inconsistency between
the terms of this Custodial Agreement and the instructions of the Trustee, the Trustee’s instructions shall control.

 

Section 7.12. Waiver
of Trial by Jury. The parties hereto each knowingly, voluntarily and intentionally waives to the fullest extent permitted by
applicable law any right it may have to a trial by jury of any dispute arising under or relating to this Custodial Agreement or
the transactions contemplated hereby.

 

    	24

    	 

    

Section 7.13. Submission
To Jurisdiction; Waivers. Each party hereto hereby irrevocably and unconditionally:

 

		(a)	submits for itself and its property in any legal action
or proceeding relating to this Custodial Agreement, or for recognition and enforcement of any judgment in respect thereof, to
the non-exclusive 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 any appellate courts from any thereof;

 

		(b)	consents that any such action or proceeding may be
brought in such courts and, to the extent permitted by applicable law, waives any objection that it may now or hereafter have
to the venue of any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead
or claim the same;

 

		(c)	agrees that the service of process in any such action
or proceeding may be effected by mailing a copy thereof by registered or certified mail, postage prepaid, to its address set forth
herein or at such other address of which the other party shall have been notified; and

 

		(d)	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 7.14. Non-petition.
Notwithstanding anything in this Custodial Agreement to the contrary, the Custodian, in its capacity as custodian hereunder, shall
not, prior to the date which is one year and one day after the termination of this Custodial Agreement, with respect to the Depositor
or the Trustee, acquiesce, petition or otherwise invoke or cause the Depositor or the Trustee (or any assignee) to invoke the process
of the court or governmental authority for the purpose of commencing or sustaining a case against the Depositor or the Trustee
under any federal or state bankruptcy, insolvency or similar law, or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of the Depositor or the Trustee or any substantial part of its property or ordering the
winding up or liquidation of the affairs of the Depositor or the Trustee.

 

Section 7.15 Termination.
Unless terminated earlier pursuant to Section 4.1, this Custodial Agreement shall terminate upon the earlier of (a) the repurchase
of all of the Mortgage Loans pursuant to the APM MLSA, BCM MLSA, BEN MLSA, the CTB MLSA, the FAM MLSA, the FRB MLSA, the FCM MLSA,
the GFC MLSA, the PHH MLSA, the PL MLSA, the SFS MLSA, the SSB MLSA or the WMC MLSA, or pursuant to the Pooling and Servicing Agreement,
which repurchase shall be evidenced by a notice from the Securities Administrator to the Custodian stating that beneficial ownership
of the Mortgage Loans has been transferred to their purchaser or purchasers, (b) the Custodian’s receipt of written notice
from the Securities Administrator of the final payment or liquidation of the final Mortgage Loan held by the Custodian under this
Custodial Agreement or the disposition of all property acquired upon foreclosure or deed in lieu of foreclosure of any such Mortgage
Loan, or (c) the final payment date of the Certificates as evidenced by a notice from the Securities Administrator to the Custodian,
a copy of which notice shall be simultaneously delivered to the Depositor, and delivery of the Mortgage Files pursuant to the Trustee’s
instructions. Upon termination of this Custodial Agreement, the related Mortgage Files will be released by the Custodian in accordance
with the Trustee’s written instructions.

 

    	25

    	 

    

 

[Signatures appear on the following page.]

 

    	26

    	 

    

IN WITNESS WHEREOF, the
parties have entered into this Custodial Agreement as of the date on the cover page of this Custodial Agreement.

 

 

U.S. BANK NATIONAL ASSOCIATION, not in its

individual capacity, but solely as Trustee

 

By:
/s/ John L. Linssen_____________

Name:
John L. Linssen____________   

Title:
Vice President_______________

 

 

Wells
Fargo Bank, N.A., as Custodian

 

By:
/s/ Graham M. Oglesby__________

Name:
Graham M. Oglesby___________

Title:
Vice President________________

 

 

Wells
Fargo Bank, N.A., as Master Servicer

 

By:
/s/ Graham M. Oglesby___________

Name:
Graham M. Oglesby_________    

Title:
Vice President________________

 

 

Sequoia
Residential Funding, Inc.,

as Depositor

 

By:
/s/ William Moliski___________

Name:
William Moliski_____________

Title:
Authorized Officer___________

 

 

 

Redwood
Residential Acquisition

Corporation, as Seller

 

By:
/s/ William Moliski_____________

Name:
William Moliski_____________

Title:
Authorized Officer____________

 

    	27

    	 

    

 

EXHIBIT A

 

DELIVERY INSTRUCTIONS

 

Wells
Fargo DOCUMENT CUSTODY

 

 

 

 

	 	Address & Contact Name:	Wells Fargo Bank, N.A.
	 	 	Attn: Private Certifications
	 	 	751 Kasota Avenue
	 	 	Minneapolis, MN 55414

 

Notification of Transfer: Please notify ____________
at (612)______ with the anticipated date of the transfers and the number of loan files to be sent to Wells Fargo Bank, N.A.

 

 

Shipping instructions:

		·	Documents placed in a pocket file folder (legal size)

		·	Labels, affixed to the upper right hand corner of the legal-size pocket
file folder, including Issuer Name, Previous Loan # (if any), Borrower Name, Loan #

		·	Loan files placed in sequential, numerical loan number order inside
archive boxes

		·	A packing list, consisting of a list of the loans and the box number,
must be included in each box

		·	Each box must be marked on the outside to identify its contents as
follows: Investor/Seller/Funding Date/Box 1 of __ , Ln # 100000–100200

 

    	 

    	 

    

EXHIBIT B

 

DATA FORMAT

 

Each column must contain the column header indicated in the
new CSV Field Header name column on the attached grid.

 

Each column is separated by a comma; if data in a column contains
valid commas, that data is surrounded by double quotes; so
the file is comma delimited and double quote text qualified. Double quotes are only required when the data contains commas that
do not indicate a new column.

 

Dates are required to be formatted as follows: MM/DD/YYYY

 

All data should be formatted as Text. The TYPE referred to below
is a listing of what the field type on the collateral tracking system is. This is to assist in identifying what data is importable
to a specific field and what is not. For example a value of ‘Monday’ would not be importable to the Rate field as Rate
is a numeric field and the value of ‘Monday’ is text characters.

 

Char and Varchar = Any text up to the length specified,
can be any combo of letters numbers that fit within the maximum field length

 

Numeric = Only numbers. Precision is found under formatting.
For example 3.3 = 123.123, 6.2 = 123456.12

 

Small int = A number between 0 and 32,000

 

Tiny Int = 0 or 1 (0 = unchecked, 1 = checked).

 

Integer = Numeric without decimals.

 

*Required

	Field
    Header Name	Type	Formatting	Max Length	Description
	COLL_KEY*	Char(20)	 	20	Collateral Id
	ALT_ID	Char(20)	 	20	Alternate id
	BORROWER*	Varchar(60)	 	60	Borrower 1 Last Name
	CASENUM	Char(20)	 	20	Case Number
	CLOSED	Small Date	MM/DD/YYYY	10	Closed Date
	FIRSTDUE	Small Date	MM/DD/YYYY	10	First Due Date
	MATURITY*	Small Date	MM/DD/YYYY	10	Maturity Date
	RATE*	Numeric	3.6	9	Rate
	LNAMOUNT*	Numeric	12.2	14	Original Loan Amount
	PI	Numeric	6.2	8	Payment & Interest
	STATE*	Char(2)	 	2	State
	CITY*	Varchar(60)	 	60	City
	ZIP*	Varchar(10)	 	10	Zip Code
	ADDRESS*	Varchar(60)	 	60	Address
	ARMADJ*	Small Date	MM/DD/YYYY	10	ARM Adjust Date
	ARMCONV	Char(1)	 	1	ARM Convertability
	ARMROUND	Numeric	3.6	9	ARM Round
	ARMACAP*	Numeric	3.6	9	ARM Annual Cap
	ARMLCAP*	Numeric	3.6	9	ARM Life Cap
	ARMMARGIN*	Numeric	3.6	9	ARM Margin
	ARMFLOOR	Numeric	3.6	9	ARM Floor
	ARMINDEX	Varchar(10)	 	10	ARM Index Source
	ARMIDXRATE	Numeric	3.6	9	ARM Index Rate

    	 

    	 

    

 

	Field Header Name	Type	Formatting	Max Length	Description
	ARMLOOKBAK	Small Int	1	5	ARM Look back
	MERSMIN*	Char(18)	 	18	Mers Min Number
	MERSFLAG*	TinyInt	1	1	MERS Flag (1=Checked 0 = Unchecked)
	BOOKPAGE	Char(10)	 	10	Instrument Book and Page number
	CTRLNUM	Varchar(7)	 	7	Control Number
	INSTRUMENT	Varchar(20)	 	20	Instrument Number
	RECORDED	Small Date	MM/DD/YYYY	10	Recorded Date
	CURR_UPB	Numeric	12.2	14	Current Unpaid Principal Balance
	INVEST_KEY	Char(20)	 	20	Investor Id
	ISMOM	TinyInt	1	1	MOM Flag (1 = Checked 0 = Unchecked)
	TRUSTNUM	VarChar(40)	 	40	Trust Number
	UDF_CHAR1*	Varchar(40)	 	40	User Defined Character Field 1 (co-op)
	UDF_CHAR2	Varchar(40)	 	40	User Defined Character Field 2
	UDF_DATE1	Small Date	MM/DD/YYYY	10	User Defined Date Field 1
	UDF_DATE2	Small Date	MM/DD/YYYY	10	User Defined Date Field 2
	UDF_DOL1	Numeric	12.2	14	User Defined Dollar Field 1
	UDF_DOL2	Numeric	12.2	14	User Defined Dollar Field 2
	UDF_PCT1	Numeric	4.6	10	User Defined Percentage Field 1
	UDF_PCT2	Numeric	4.6	10	User Defined Percentage Field 2
	UDF_INT1	Integer	7	7	User Defined Integer Field 1
	UDF_INT2	Integer	7	7	User Defined Integer Field 2
	VINNUM	Varchar(20)	 	20	Vehicle Identification Number
	MAKE	Varchar(10)	 	10	Vehicle Make
	MODEL	Varchar(10)	 	10	Vehicle Model
	YEAR	Varchar(4)	 	4	Vehicle Year
	ASSTDESC	Varchar(25)	 	25	Description Of The Asset
	LTV	Numeric	3.1	4	Loan To Value Ratio
	TERM	Varchar(3)	 	3	Loan or Lease Term
	Address2	Varchar(30)	 	30	Address 2
	BORR1FIRST*	Varchar(30)	 	30	Borrower 1 First name
	BORR1MID	Varchar(30)	 	30	Borrower 1 Middle Name
	BORR2FIRST	Varchar(30)	 	30	Borrower 2 First Name
	BORR2MID	Varchar(30)	 	30	Borrower 2 Middle Name
	BORR2LAST	Varchar(60)	 	60	Borrower 2 Last Name
	ARMCEIL	Numeric	2.3	5	ARM Ceiling
	COUNTY	Varchar	 	40	County
	RATECHGFRQ	Small Int	 	5	Rate Change Frequency – In months
	BALLOONFLG	TinyInt	 	1	Balloon Flag (1 = Checked 0 = Unchecked)
	BALLOONTRM	Small Int	 	5	Balloon Term – In months
	IO_FLAG	TinyInt	 	1	
        Interest Only Flag

        (1 = Checked 0 = Unchecked)

	IO_TERM	Small Int	 	5	Interest Only Term – In months
	ARMPFLRINI	Numeric	3.6	9	Initial Periodic Rate Floor
	ARMPCAPINI	Numeric	3.6	9	Initial Periodic Rate Cap
	ARMPFLOOR	Numeric	3.6	9	Periodic Rate Floor
	ROUND_METH	TinyInt	 	1	
        Arm Loan Rounding Method

        ( 0=Round Nearest, 1=Round Up, 2=Round Down, 3=None )

	INTAMOUNT	Numeric	12.2	14	Interest Amount
	FUNDDATE	Small Date	MM/DD/YYYY	10	Funding Date

    	 

    	 

    

 

	Field Header Name	Type	Formatting	Max Length	Description
	NEGAMFLAG	TinyInt	 	1	
        Negative Amortization Flag

        (1 = Checked 0 = Unchecked)

	NEGAMCAP	Numeric	3.6	9	Negative Amortization Cap
	PAYCAP	Numeric	12.2	14	Payment Cap Amount
	PREPAYTERM	Small Int	 	5	Prepayment Term
	PPP_FLAG	TinyInt	 	1	
        Prepayment Penalty Flag

        (1 = Checked 0 = Unchecked)

	PPP_DESCR	Varchar(254)	 	254	Prepayment Penalty Description
	PPP_PCT	Numeric	3.6	9	Prepayment Penalty Percent
	SERVICER_LOAN_ID	Varchar(20)	 	20	Servicer Loan Number
	ADDITIONAL_LOAN_ID	Varchar(20)	 	20	Additional Loan Number
	 	 	 	 	 

 

    	 

    	 

    

 

EXHIBIT C

 

AUTHORIZED REPRESENTATIVES CERTIFICATION

 

TO: Wells Fargo Bank Document Custody

 

Reference
is hereby made to the Custodial Agreement, dated as of March 1, 2012, between U.S. Bank National Association, as Trustee, Redwood
Residential Acquisition Corporation, as Seller, Sequoia Residential Funding, Inc., as Depositor, Wells Fargo Bank, N.A., as Master
Servicer, and Wells Fargo Bank, N.A., as Custodian (the “Custodial Agreement”).

 

Effective
________________ (date), the undersigned, a duly authorized representative of
[[APM/BCM/BEN/CEN/CTB/FAM/FRB/FCM/ GFC/PHH/PL/SFS/SSB/WMC], as [Servicer/Originator]][U.S. Bank National Association, as
Trustee][Sequoia Residential Funding, Inc., as Depositor][Wells Fargo Bank, N.A., as Master Servicer], hereby designates each
of the persons whose names, titles, and signatures appear below as an Authorized Representative under the Custodial
Agreement. This authorization will remain in place until such time as it is revoked, amended or supplemented in writing, by
an officer of the Trustee or the Servicer.

 

Capitalized
terms not defined herein shall have the meaning ascribed to them in the Custodial Agreement.

 

	Name	 	Title	 	Specimen Signature
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

The above named company agrees to immediately notify Wells Fargo
Bank, N.A., or its successors or assigns (“Wells Fargo”), should any person named hereunder become ineligible as an
Authorized Representative and shall indemnify Wells Fargo and hold it harmless from and against any actions and/or suits whether
groundless or otherwise and from and against any losses, damages, costs, charges, counsel fees, payments, expenses and liabilities
(“Losses”) arising directly out of any action as an Authorized Representative under the Custodial Agreement of any
person named in this list, except for liability arising out of Wells Fargo’s negligence, wilful misconduct or bad faith.
These indemnity provisions shall survive the termination or assignment of the pools or loans.

 

    	 

    	 

    

IN
WITNESS WHEREOF, the undersigned has executed this certificate for and on behalf of [[APM/BCM/BEN/CEN/CTB/FAM/FRB/FCM/GFC/PHH/

PL/SFS/SSB/WMC],
as [Servicer/Originator]][U.S. Bank National Association, N.A.,
as Trustee][Sequoia Residential Funding, Inc., as Depositor][Wells Fargo Bank, N.A., as Master Servicer], this  __
day of ______________, ___.

 

By (signature): _____________________________________

 

Name: __________________________________________________________________

Title: ______________________________________

Phone #: ________________    Fax
#: _______________________

 

This form must be signed
by an officer of the company. The officer needs to be someone other than those individuals who are being added as authorized signers.

ACKNOWLEDGEMENT:

(Individual)

 

State of ___________________________}ss.

 

County of       _____________________________}ss.

 

This instrument was acknowledged before
me on ____________________ (date) by _______________________

_________________________________________________________________________________________

 

			__________________________________________________________________________

		(Seal)	(Signature of notarial officer)

			My Commission Expires: _____________________________________________

 

 

 

    	 

    	 

    

EXHIBIT D-1

 

INITIAL AUTHORIZED REPRESENTATIVES
OF THE TRUSTEE

 

	Name	 	Title	 	Specimen Signature
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

 

 

    	 

    	 

    

EXHIBIT D-2

 

INITIAL AUTHORIZED REPRESENTATIVES
OF THE DEPOSITOR

 

 

 

	Name	 	Title	 	Specimen Signature
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

 

 

 

    	 

    	 

    

EXHIBIT D-3A

 

INITIAL AUTHORIZED REPRESENTATIVES OF
AMERICAN PACIFIC MORTGAGE CORPORATION, AS ORIGINATOR

 

 

	Name	 	Title	 	Specimen Signature
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

 

 

 

    	 

    	 

    

EXHIBIT D-3B

 

INITIAL AUTHORIZED REPRESENTATIVES OF
SIMONICH CORPORATION, dba BANK OF COMMERCE MORTGAGE, AS ORIGINATOR

 

 

	Name	 	Title	 	Specimen Signature
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

 

 

 

    	 

    	 

    

EXHIBIT D-3C

 

INITIAL AUTHORIZED REPRESENTATIVES OF
BENCHMARK BANK, AS ORIGINATOR

 

 

	Name	 	Title	 	Specimen Signature
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

 

 

 

    	 

    	 

    

 

EXHIBIT D-3D

 

INITIAL AUTHORIZED REPRESENTATIVES OF
CENLAR FSB, AS SERVICER

 

 

	Name	 	Title	 	Specimen Signature
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

 

 

 

    	 

    	 

    

EXHIBIT D-3E

 

INITIAL AUTHORIZED REPRESENTATIVES
OF COLE TAYLOR BANK, AS ORIGINATOR

 

 

 

	Name	 	Title	 	Specimen Signature
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

    	 

    	 

    

EXHIBIT D-3F

 

INITIAL AUTHORIZED REPRESENTATIVES OF
FRANKLIN AMERICAN MORTGAGE COMPANY, AS ORIGINATOR

 

 

	Name	 	Title	 	Specimen Signature
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

 

 

 

    	 

    	 

    

EXHIBIT D-3G

 

INITIAL AUTHORIZED REPRESENTATIVES
OF FIRST REPUBLIC BANK, AS SERVICER AND AS ORIGINATOR

 

 

 

	Name	 	Title	 	Specimen Signature
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

 

 

    	 

    	 

    

EXHIBIT D-3H

 

INITIAL AUTHORIZED REPRESENTATIVES
OF FLAGSTAR CAPITAL MARKETS CORPORATION, AS ORIGINATOR

 

 

 

	Name	 	Title	 	Specimen Signature
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

    	 

    	 

    

EXHIBIT D-3I

 

INITIAL AUTHORIZED REPRESENTATIVES
OF GUARDHILL FINANCIAL CORPORATION, AS ORIGINATOR

 

 

 

	Name	 	Title	 	Specimen Signature
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

 

    	 

    	 

    

EXHIBIT D-3J

 

INITIAL AUTHORIZED REPRESENTATIVES
OF PHH MORTGAGE CORPORATION, AS SERVICER AND AS ORIGINATOR

 

 

 

	Name	 	Title	 	Specimen Signature
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

    	 

    	 

    

EXHIBIT D-3K

 

INITIAL AUTHORIZED REPRESENTATIVES
OF PRIMELENDING, A PLAINSCAPITAL COMPANY, AS ORIGINATOR

 

 

 

	Name	 	Title	 	Specimen Signature
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

 

    	 

    	 

    

EXHIBIT D-3L

 

INITIAL AUTHORIZED REPRESENTATIVES OF
SHORE FINANCIAL SERVICES, INC., AS ORIGINATOR

 

 

	Name	 	Title	 	Specimen Signature
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

 

 

 

    	 

    	 

    

EXHIBIT D-3M

 

INITIAL AUTHORIZED REPRESENTATIVES
OF STERLING SAVINGS BANK, AS ORIGINATOR

 

 

 

	Name	 	Title	 	Specimen Signature
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

    	 

    	 

    

EXHIBIT D-3N

 

INITIAL AUTHORIZED REPRESENTATIVES
OF WINTRUST MORTGAGE, A DIVISION OF BARRINGTON BANK AND TRUST, AS ORIGINATOR

 

 

 

	Name	 	Title	 	Specimen Signature
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    	 

    	 

    

EXHIBIT D-3O

 

INITIAL AUTHORIZED REPRESENTATIVES
OF WELLS FARGO BANK, N.A., AS MASTER SERVICER

 

 

 

	Name	 	Title	 	Specimen Signature
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

    	 

    	 

    

EXHIBIT E

 

Wells
Fargo Bank, N.A.

SCHEDULE OF FEES FOR CUSTODY SERVICES

 

All fees described below to be paid by the Master Servicer as
set forth in the Custodial Agreement, except as described under “Shipping.”

 

Transaction Charges:1

 

Annual Safekeeping Fee:

Per Mortgage File held at end of month

 

Final/trailing Documents – Rejected Trailing/Final
Documents

Includes filing of documents in the Mortgage
File,

Per occurrence

 

Release Requests/Rejected Release Requests

Standard Release

-48 hour turnaround time, excludes shipping
expense

-Requests returned for Mortgage Files not
in custody or improperly prepared

Requests for Release

 

Rush Release Requests

24 hour turnaround time, excludes shipping
expense

 

Shipping

The applicable Servicer shall be required to pay shipping expenses
for any Mortgage File if there has been a breach of any representation or warranty made with respect to the related Mortgage Loan
in the related servicing agreement resulting in the repurchase of such Mortgage Loan by such Servicer. In all other cases where
any Mortgage Files are required to be shipped to any party, the Depositor shall pay the related shipping expenses; provided, however,
that if the Depositor fails to pay such expenses within 45 days of invoicing from the Custodian, such expenses shall be paid by
the Trust Fund, subject to the limitations on reimbursements in clause (B) of the definition of Available Distribution Amount in
the Pooling and Servicing Agreement.

 

File Reinstatements/Rejected
File Reinstate

Reinstatements that cannot be accepted because
the file is incomplete

 

Trust Receipts/ Certifications /Bailee Letters 

Issuance of bailee letters, trust receipts,
if applicable. Per receipt/letter

 

File Pull Fee

Per file includes research, etc.

 

Labeling of files

Includes the preparation and application
of labels to files

 

Endorsement and Assignment Stamping

Per endorsement or assignment

 

Copies of Documents

Pull fee per file

Per single sided copy

Costs of special projects requiring
copies of more than 5% of the Mortgage Files shall be negotiated with and paid by the requesting party.

 

Interfiling fee

Includes placing loan files or documents
in loan number order. Per file or document.

 

File Folders Includes placing documents not received
in manila folder

 

________________________________________

1 Fee amount to be provided to the Master Servicer
by the Custodian

 

    	 

    	 

    

EXHIBIT F

 

REQUEST FOR RELEASE OF DOCUMENTS

 

	To:	Wells Fargo Bank, N.A.	Date:  _______________
	 	751 Kasota Avenue	 
	 	Minneapolis, MN 55414	 
	 	Attn: WFDC Release Department	 

 

		Re:	Custodial Agreement, dated as of March 1, 2012, among U.S. Bank National Association, as Trustee, Redwood Residential Acquisition
Corporation, as Seller, Sequoia Residential Funding, Inc., as Depositor, Wells Fargo Bank, N.A., as Master Servicer, and Wells
Fargo Bank, N.A., as Custodian (the “Custodial Agreement”)

 

In connection with
the administration of the Mortgage Loans held by you as Custodian for the Trustee pursuant to the above-captioned Custodial Agreement,
we request the release of the Custodian's Mortgage File for the Mortgage Loan described below, for the reason indicated.

 

 

	Mortgage Loan Number:_________________________	Investor Number: ________________
	 	 
	Mortgagor Name, Address & Zip Code:              	Pool Number: _________________

 

Reason for Requesting Documents (check one):

 

_______ 1. Mortgage Paid in Full

 

_______ 2. Foreclosure

 

_______ 3. Substitution

 

_______ 4. Other Liquidation

 

	_______ 5. Non-liquidation	Reason:__________________

 

 

 

By:____________________________________________

 (Authorized Signature)

 

Printed Name ___________________________________

 

[Servicer][Master Servicer] Name:________ __________

 

Ship To Address: ___________________________

_______ _____________________

 

Phone:_______ _____________________

 

 

 

Custodian

 

Please acknowledge the execution of the above request by
your signature and date below:

 

	______________________________________________________	Date                        

Signature

 

Documents returned to Custodian:

 

	______________________________________________________	Date                        

Custodian

 

    	 

    	 

    

 

EXHIBIT G

 

FORM OF CERTIFICATION

 

DATE

 

U.S. Bank
National Association, as Trustee

60 Livingston
Avenue

EP-MN-WS3D

St. Paul,
Minnesota, 55107

Attention:
Structured Finance – Sequoia Mortgage Loan Trust 2012-2

 

Sequoia Residential Funding, Inc.

One Belvedere Place, Suite 330

Mill Valley, CA 94941

Attention:  Sequoia Mortgage Trust 2012-2

 

Redwood Residential Acquisition Corporation

One Belvedere Place, Suite 330

Mill Valley, CA 94941

Attention:  Sequoia Mortgage Trust 2012-2

 

American Pacific Mortgage Corporation

3000 Lava Ridge Court, Suite 200

Roseville, California 95661

Attention: Chito Schnupp, EVP

 

Simonich Corporation, dba Bank of Commerce Mortgage

3130 Crow Canyon Place, Suite 300

San Ramon, California 94583

Attention: Scott M. Simonich

 

Benchmark Bank

5700 Legacy Drive – Suite 10

Plano, Texas 75024

Attention: Kay Roubadeaux

 

Cenlar FSB

425 Phillips Boulevard

Ewing, NJ 08618

 

Cole Taylor Bank

7789 East M-36

Whitmore Lake, MI 48189

Attention: Phil Miller

 

Franklin American Mortgage Company

501 Corporate Center Drive, Suite 400

Franklin, Tennessee 37067

Attention: Kelly C. Johnson

 

First Republic Bank

111 Pine Street

San Francisco, CA 94111

Attention: Tony Sachs

 

    	 

    	 

    

Flagstar Capital Markets Corporation

5151 Corporate Drive

Troy, Michigan 48098

Attention : Product Development Department

 

GuardHill Financial Corp

140 East 45th Street, 31st Floor

New York, NY, 10017

 

PHH Mortgage Corporation

One Mortgage Way

Mt. Laurel, NJ 08054

Attention: Vice President, Servicing

 

PrimeLending, a PlainsCapital Company

18111 Preston Road, Suite 900

Dallas, Texas 75252

Attention: Mr. Scott Eggen, SVP

 

Shore Financial Services, Inc.

555 S. Adams Road

Birmingham, Michigan 48009

Attention: Chief Executive Officer

 

Sterling Savings Bank Home Loan Division

6505 218th St SW, Suite 9

Mountlake Terrace, WA, 98043

Attention: Kathrine Shairrick, Loan Servicing

 

Wintrust Mortgage,

a division of Barrington Bank and Trust

1S660 Midwest Road, Suite 100

Oakbrook Terrace, Illinois 60181

Attention: Loss Mitigation

 

 

		Re:	Custodial Agreement, dated as of March 1, 2012, among U.S. Bank National Association, as Trustee,
Redwood Residential Acquisition Corporation, as Seller, Sequoia Residential Funding, Inc., as Depositor, Wells Fargo Bank, N.A.,
as Master Servicer, and Wells Fargo Bank, N.A., as Custodian (the “Custodial Agreement”)

 

Ladies and Gentlemen:

 

In accordance with
the provisions of Section 3.2(a) of the above referenced Custodial Agreement, the undersigned, as the Custodian, hereby certifies
that, except as noted on the attached Exception Report, it has reviewed each Mortgage Loan listed in the Mortgage Loan Schedule
and has determined that (i) all documents required to be delivered to it pursuant to the Custodial Agreement are in its possession;
and, (ii) such documents have been reviewed by it and appear regular on their face and related to such Mortgage Loan. All
capitalized terms used but not defined herein shall have the meanings set forth in the Custodial Agreement.

 

The Custodian makes
no representations as to, and shall not be responsible to verify, (I) the validity, legality, enforceability, perfectibility, due
authorization, recordability, sufficiency, or genuineness of any of the documents contained in each Mortgage File or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan.

 

 

Wells
Fargo Bank, N.A., as Custodian

 

 

By:_____________________________________________

 

Name:__________________________________________

 

Title:___________________________________________

 

    	 

    	 

    

 

EXHIBIT H

 

FORM OF TRANSMITTAL
LETTER

 

[Custodian
Letterhead]

 

 

[ Date]

 

 

[Purchaser]

[Insert street address]

________________

________________

 

 

 

		Re:	___________________________

 

 

Ladies and Gentlemen:

 

Attached please find those Mortgage Loans
listed separately on the attached schedule, which Mortgage Loans are owned by the Trustee and are being delivered to you for purchase.

 

Capitalized
terms used herein and not otherwise defined shall have the meanings set forth in that certain Custodial Agreement, dated
as of March 1, 2012, among U.S. Bank National Association, as Trustee, Redwood Residential Acquisition Corporation, as Seller,
Sequoia Residential Funding, Inc., as Depositor, Wells Fargo Bank, N.A., as Master Servicer, and Wells Fargo Bank, N.A., as Custodian.

 

Each of the Mortgage Loans is owned by
the Trustee. Such ownership interest shall be released only upon remittance of $_____________ representing the full amount of the
purchase price of such Mortgage Loans (the “Payoff Amount”) by wire transfer of immediately available funds to the
following account:

 

WIRE TRANSFER INSTRUCTIONS:

[to be provided by Securities
Administrator]

 

 

 

 

Pending the purchase of each Mortgage Loan
and until the Payoff Amount is received, the aforesaid ownership interest therein will remain in full force and effect, and you
shall hold possession of the Mortgage Loans and the documentation evidencing same as custodian, agent and bailee for and on behalf
of the Trustee. In the event that any Mortgage Loan is unacceptable for purchase, promptly return the rejected item directly to
the Custodian at its address set forth below. The Mortgage Loans must be so returned or Payoff Amount remitted in full no later
than 30 days from the date hereof. If you are unable to comply with the above instructions, please so advise the undersigned Custodian
immediately.

 

    	 

    	 

    

 

 

NOTE: BY ACCEPTING THE MORTGAGE LOANS DELIVERED
TO YOU WITH THIS LETTER, YOU CONSENT TO BE THE CUSTODIAN, AGENT AND BAILEE FOR THE OWNER ON THE TERMS DESCRIBED IN THIS LETTER.
THE CUSTODIAN REQUESTS THAT YOU ACKNOWLEDGE RECEIPT OF THE ENCLOSED MORTGAGE LOANS AND THIS LETTER BY SIGNING AND RETURNING THE
ENCLOSED COPY OF THIS LETTER TO THE CUSTODIAN; HOWEVER, YOUR FAILURE TO DO SO DOES NOT NULLIFY SUCH CONSENT.

 

 

Very truly yours,

 

Wells Fargo
Bank, N.A.,

as Custodian

 

By:

Name:

Title:

Address:

 

ACKNOWLEDGED AND AGREED:

 

Authorized Signature:

[Purchaser]

 

By:

Name:

Title:

Address:

 

 

 

 

    	 

    	 

    

 

 

EXHIBIT I

 

FORM OF CERTIFICATION REGARDING SERVICING
CRITERIA TO BE

ADDRESSED IN REPORT ON ASSESSMENT OF COMPLIANCE

 

The assessment of compliance to be delivered
by the Custodian shall address, at a minimum, the criteria identified below with an "X" as Servicing Criteria applicable
to the Custodian:

 

 

	
        Regulation AB

        Reference
	Servicing Criteria	 	 	 	Custodian
	 	General Servicing Considerations	 	 	 	 
	1122(d)(1)(i)	Policies and procedures are instituted to monitor any performance or other triggers and events of default in accordance with the transaction agreements.	 	 	 	N/A
	1122(d)(1)(ii)	If any material servicing activities are outsourced to third parties, policies and procedures are instituted to monitor the third party’s performance and compliance with such servicing activities.	 	 	 	N/A
	1122(d)(1)(iii)	Any requirements in the transaction agreements to maintain a back-up servicer for the pool assets are maintained.	 	 	 	N/A
	1122(d)(1)(iv)	A fidelity bond and errors and omissions policy is in effect on the party participating in the servicing function throughout the reporting period in the amount of coverage required by and otherwise in accordance with the terms of the transaction agreements.	 	 	 	N/A
	 	Cash Collection and Administration	 	 	 	 
	1122(d)(2)(i)	Payments on pool assets are deposited into the appropriate bank collection accounts and related bank clearing accounts no more than two business days following receipt, or such other number of days specified in the transaction agreements.	 	 	 	N/A
	1122(d)(2)(ii)	Disbursements made via wire transfer on behalf of an obligor or to an investor are made only by authorized personnel.	 	 	 	N/A
	1122(d)(2)(iii)	Advances of funds or guarantees regarding collections, cash flows or distributions, and any interest or other fees charged for such advances, are made, reviewed and approved as specified in the transaction agreements.	 	 	 	N/A
	1122(d)(2)(iv)	The related accounts for the transaction, such as cash reserve accounts or accounts established as a form of over collateralization, are separately maintained (e.g., with respect to commingling of cash) as set forth in the transaction agreements.	 	 	 	N/A
	1122(d)(2)(v)	Each collection account is maintained at a federally insured depository institution as set forth in the transaction agreements. For purposes of this criterion, “federally insured depository institution” with respect to a foreign financial institution means a foreign financial institution that meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange Act.	 	 	 	N/A
	1122(d)(2)(vi)	Unissued checks are safeguarded so as to prevent unauthorized access.	 	 	 	N/A

    	 

    	 

    

 

 

	1122(d)(2)(vii)	Reconciliations are prepared on a monthly basis for all asset-backed securities related bank accounts, including collection accounts and related bank clearing accounts. These reconciliations are (A) mathematically accurate; (B) prepared within 30 calendar days after the bank statement cutoff date, or such other number of days specified in the transaction agreements; (C) reviewed and approved by someone other than the person who prepared the reconciliation; and (D) contain explanations for reconciling items. These reconciling items are resolved within 90 calendar days of their original identification, or such other number of days specified in the transaction agreements.	 	 	 	N/A
	 	Investor Remittances and Reporting	 	 	 	 
	1122(d)(3)(i)	Reports to investors, including those to be filed with the Commission, are maintained in accordance with the transaction agreements and applicable Commission requirements. Specifically, such reports (A) are prepared in accordance with timeframes and other terms set forth in the transaction agreements; (B) provide information calculated in accordance with the terms specified in the transaction agreements; (C) are filed with the Commission as required by its rules and regulations; and (D) agree with investors’ or the trustee’s records as to the total unpaid principal balance and number of pool assets serviced by the Servicer.	 	 	 	N/A
	1122(d)(3)(ii)	Amounts due to investors are allocated and remitted in accordance with timeframes, distribution priority and other terms set forth in the transaction agreements.	 	 	 	N/A
	1122(d)(3)(iii)	Disbursements made to an investor are posted within two business days to the Servicer’s investor records, or such other number of days specified in the transaction agreements.	 	 	 	N/A
	1122(d)(3)(iv)	Amounts remitted to investors per the investor reports agree with cancelled checks, or other form of payment, or custodial bank statements.	 	 	 	N/A
	 	Pool Asset Administration	 	 	 	 
	1122(d)(4)(i)	Collateral or security on pool assets is maintained as required by the transaction agreements or related pool asset documents.	 	 	 	X
	1122(d)(4)(ii)	Pool assets  and related documents are safeguarded as required by the transaction agreements	 	 	 	X
	1122(d)(4)(iii)	Any additions, removals or substitutions to the asset pool are made, reviewed and approved in accordance with any conditions or requirements in the transaction agreements.	 	 	 	N/A
	1122(d)(4)(iv)	Payments on pool assets, including any payoffs, made in accordance with the related pool asset documents are posted to the Servicer’s obligor records maintained no more than two business days after receipt, or such other number of days specified in the transaction agreements, and allocated to principal, interest or other items (e.g., escrow) in accordance with the related pool asset documents.	 	 	 	N/A
	1122(d)(4)(v)	The Servicer’s records regarding the pool assets agree with the Servicer’s records with respect to an obligor’s unpaid principal balance.	 	 	 	N/A

    	 

    	 

    

 

 

	1122(d)(4)(vi)	Changes with respect to the terms or status of an obligor's pool assets (e.g., loan modifications or re-agings) are made, reviewed and approved by authorized personnel in accordance with the transaction agreements and related pool asset documents.	 	 	 	N/A
	1122(d)(4)(vii)	Loss mitigation or recovery actions (e.g., forbearance plans, modifications and deeds in lieu of foreclosure, foreclosures and repossessions, as applicable) are initiated, conducted and concluded in accordance with the timeframes or other requirements established by the transaction agreements.	 	 	 	N/A
	1122(d)(4)(viii)	Records documenting collection efforts are maintained during the period a pool asset is delinquent in accordance with the transaction agreements. Such records are maintained on at least a monthly basis, or such other period specified in the transaction agreements, and describe the entity’s activities in monitoring delinquent pool assets including, for example, phone calls, letters and payment rescheduling plans in cases where delinquency is deemed temporary (e.g., illness or unemployment).	 	 	 	 N/A
	1122(d)(4)(ix)	Adjustments to interest rates or rates of return for pool assets with variable rates are computed based on the related pool asset documents.	 	 	 	N/A
	1122(d)(4)(x)	Regarding any funds held in trust for an obligor (such as escrow accounts): (A) such funds are analyzed, in accordance with the obligor’s pool asset documents, on at least an annual basis, or such other period specified in the transaction agreements; (B) interest on such funds is paid, or credited, to obligors in accordance with applicable pool asset documents and state laws; and (C) such funds are returned to the obligor within 30 calendar days of full repayment of the related pool assets, or such other number of days specified in the transaction agreements.	 	 	 	N/A
	1122(d)(4)(xi)	Payments made on behalf of an obligor (such as tax or insurance payments) are made on or before the related penalty or expiration dates, as indicated on the appropriate bills or notices for such payments, provided that such support has been received by the servicer at least 30 calendar days prior to these dates, or such other number of days specified in the transaction agreements.	 	 	 	N/A
	1122(d)(4)(xii)	Any late payment penalties in connection with any payment to be made on behalf of an obligor are paid from the Servicer’s funds and not charged to the obligor, unless the late payment was due to the obligor’s error or omission.	 	 	 	N/A
	1122(d)(4)(xiii)	Disbursements made on behalf of an obligor are posted within two business days to the obligor’s records maintained by the servicer, or such other number of days specified in the transaction agreements.	 	 	 	N/A
	1122(d)(4)(xiv)	Delinquencies, charge-offs and uncollectible accounts are recognized and recorded in accordance with the transaction agreements.	 	 	 	N/A
	1122(d)(4)(xv)	Any external enhancement or other support, identified in Item 1114(a)(1) through (3) or Item 1115 of Regulation AB, is maintained as set forth in the transaction agreements.	 	 	 	N/A

 

    	 

    	 

    
 

 

Annex 1

 

DOCUMENT
TYPES AND EXCEPTION CODES

 

DOCUMENT TYPES

 

	Track Item Type	Doc Type
	COLLATERAL ITEM	 
	1003	Residential Loan Application
	1008	Underwriting and Transmittal Summary
	1994	1994 CHCH SECTY
	1995	1995 CHCH SECTY
	1996	1996 CHCH SECTY
	1997	1997 CHCH SECTY
	711A	GNMA 11711A
	711B	GNMA 11711B
	AAL1	ASSN/ASSN LEAS1
	AAL2	ASSN/ASSN LEAS2
	ACC1	ASUM CO. UCC1
	ACC3	ASUM-AMD/TRM CO
	ACCA	ACCT CTRL AGREE
	ACCP	ACCEPT & ASSUM ( COOP)
	ACS1	ASUM ST. UCC1
	ACS3	ASUM-AMD/TRM ST
	ADDM	ADDENDUM
	AFFD	NAME AFFIDAVIT
	AFFX	Affidavit of Affixation
	AGRE	ASSIGN OF AGREE
	ALCR	Assignment to Letter of Credit
	ALN1	ALLONGE 1
	ALN2	ALLONGE 2
	ALN3	ALLONGE 3
	ALN4	ALLONGE 4
	ALN5	ALLONGE 5
	ALN6	ALLONGE 6
	ALN7	ALLONGE 7
	ALN8	ALLONGE 8
	ALN9	ALLONGE 9
	ALNG	ALLONGE
	ALNI	ALLONGE INTRVN
	ALNV	ALLONGE FINAL
	AMOR	Amortization Schedule
	AMRT	AMORT. SCH.
	APL	ASSIGNMENT OF PROPERTY LEASE
	APPL	APPLICATION
	APPR	APPRAISAL
	AREC	ASN RECG AGREE
	ARM	ADJ RATE MORTG
	AS10	ASSIGNMENT 10
	AS11	ASSIGNMENT 11
	ASAG	ASSN-ASSU AGRMT
	ASCC	(New) ASCC
	ASGM	ASSN OF MTGE
	ASGN	(New) ASGN
	ASL1	ASSN 1 OF LEASE
	ASL2	ASSN 2 OF LEASE
	ASL3	ASSN 3 OF LEASE
	ASL4	ASSN 4 OF LEASE

    	 

    	 

    

 

	Track Item Type	Doc Type
	ASL5	ASSN 5 OF LEASE
	ASL6	ASSN 6 OF LEASE
	ASL7	ASSN 7 OF LEASE
	ASLQ	ASN LIQUOR LIC.
	ASLR	ASSN LEASE/RENT
	ASLV	LEASE INV ASSN
	ASN1	ASSIGNMENT 1
	ASN2	ASSIGNMENT 2
	ASN3	ASSIGNMENT 3
	ASN4	ASSIGNMENT 4
	ASN5	ASSIGNMENT 5
	ASN6	ASSIGNMENT 6
	ASN7	ASSIGNMENT 7
	ASN8	ASSIGNMENT 8
	ASN9	ASSIGNMENT 9
	ASNB	BLANKET ASSN
	ASNP	Assignment of Proprietary Lease
	ASNV	ASSN TO INVESTR
	ASNX	ASSIGNMENT 10+
	ASPW	ASG-PRMTS&WARRT
	ASSB	(New) ASSB
	ASSE	ASSETT MGR AGRT
	ASSM	ASSN SUB/MGMT
	ASSN	INT. ASSIGNMENT
	ASSO	ORIG ASSIGNMENT
	ASSU	ASSUMPTION
	ASUM	ASSUMPT AGREEMT
	ASV1	SUBSEQ PRIV ASN
	ASVB	BLNKT ASSN--INV
	ATTY	ATTY'S OPINION
	AVRF	Asset Verification
	BAIL	BAILEE LETER
	BALN	Balloon Mortgages
	BARC	(New) BARC
	BASN	BARCLAYS A/M
	BCIA	BLNKT CERT-GNMA
	BKST	Bank Statements
	BLNK	(c) Blank Description
	BOFS	BILL OF SALE
	BOND	LOST INSTR AFFD
	BORR	CERT OF BORROW
	BPO	Brokers Price Opinion
	BUYD	BUYDOWN AGREEMT
	CASH	CASH MANAGEMENT
	CEM	CONSOL/EXT AGRM
	CERI	REO Certificate of Insurance
	CERT	MIC/LGC
	CINL	(New) CINL
	CKLT	LOAN FILE CHECKLIST
	CNFS	CERT NONFOREIGN
	CNSV	Conservator Court Appointment
	COAG	Co-Ownership Agreement
	COFS	CONTRACT OF SALE
	COFT	CERT OF TITLE
	COM1	Combined Document Intervening Assignment 1
	COM2	Combined Document Intervening Assignment 2
	COM3	Combined Document Intervening Assignment 3

    	 

    	 

    

 

	Track Item Type	Doc Type
	COM4	Combined Document Intervening Assignment 4
	COM5	Combined Document Intervening Assignment 5
	COM6	Combined Document Intervening Assignment 6
	COM7	Combined Document Intervening Assignment 7
	COM8	Combined Document Intervening Assignment 8
	COM9	Combined Document Intervening Assignment 9
	COMB	COMBINATION DOC
	COMP	COMPLETION/REP
	COMV	Combined Document Final Assignment
	CONC	Construction Contract
	CONE	CONSENT (COOP)
	CONS	CONSOLIDATION
	CONT	CNTRCT FOR DEED
	CONV	CONVERSION AGMT
	COOP	CO-OP
	CORP	CORPORATE ASSN
	CRPT	Credit Report
	CSUB	COLL SUBMISSION
	CTRL	CRED.TENANT LSE
	CUST	CUSTODY AGREEMT
	DEE1	ADD'L DEED
	DEE2	2ND ADDL DEED
	DEED	DEED OF TRUST
	DEFR	Deferral Agreement
	DEFS	DEFEASANCE DOCUMENTS
	DOC	DOCUMENT
	DOFT	(New) DOFT
	EDV1	SUBSEQ PRIV END
	EMIC	Electronic MIC
	ENAS	ENVIR ASSESSMNT
	END1	ENDORSEMENT 1
	END2	ENDORSEMENT 2
	END3	ENDORSEMENT 3
	END4	ENDORSEMENT 4
	END5	ENDORSEMENT 5
	END6	ENDORSEMENT 6
	END7	ENDORSEMENT 7
	END8	ENDORSEMENT 8
	END9	ENDORSEMENT 9
	ENDI	Intervening Endorsement
	ENDV	FINAL ENDORSEMENT
	ENOT	Electronic Note
	ENVI	ENVIRO INDEMNIT
	EOMP	E&O POLICY
	ESCL	ESCROW LETTER
	ESCR	ESCROW AGREEMNT
	ESTO	ESTOPPEL L/A
	EXTN	Extension Agreement
	FDOC	Final Package-No Insuring Document
	FHFC	FHA Firm Commitment
	FHIN	FHA Insurance
	FHPN	FHA Project Number
	FHRA	FHA Regulatory Agreement
	FHUD	Final HUD
	FILE	LOAN FILE
	FILN	(New) FILN
	FIN	(New) FIN

    	 

    	 

    

 

	Track Item Type	Doc Type
	FIN'	(New) FIN'
	FIN.	(New) FIN.
	FIN;	(New) FIN;
	FINL	FINAL PACKAGE
	FIXF	Fixture Filing
	FLIN	FLOOD INSURANCE
	FPLN	FHA Home Equity Conversion Mtg with Line of Credit Only Plan
	FPNT	1ST PAYMT NOTIC
	FRAN	FRANCHISE AGRMT
	FSCH	FILE SCHEDULE
	GFE	Good Faith Estimate
	GRND	GROUND LEASES
	GUAR	GUARANTEE AGMNT
	HAZA	HAZARD POLICY
	HEAA	Equity Access Agreement
	ICAG	INTERCREDITOR
	IFNL	(New) IFNL
	ILGC	INDIAN LGC
	INCL	INS CLOSE LETTR
	INIP	INITIAL PACKAGE
	INP	(New) INP
	INSU	GOVERNMENT INSURANCE
	INV2	(New) INV2
	INVA	INVESTOR ASSN
	INVC	(New) INVC
	IRCA	INTEREST RCA
	LAGR	LOAN AGREEMENT
	LAND	LAND HOME CONTRACT
	LCI	Lender’s Closing Instructions
	LCRD	LETTR OF CREDIT
	LEAS	LEASE DOCUMENT
	LEGL	LEGAL DESCR DOC
	LES1	ASSN OF LESS
	LES2	ASSN OF LES1
	LESS	LEASE ESTOPPEL
	LGC	LGC
	LIB	Lost Instrument Bond
	LIEN	Lienholder/ Security Interest Evidence
	LIFE	Life Insurance
	LLA	LOST LEASE AFFIDAVIT
	LLAP	Lender's Loan Approval
	LNA	LOST NOTE AFDVT
	LNG	LOAN NOTE GUAR.
	LSA	LOST STOCK AFFIDAVIT
	LSCH	LOAN SCHEDULE
	MEMO	MEMO DOCUMENT
	MERG	MERGER DOCUMENT
	MERS	MERS
	MFAM	Multi-Family Rider
	MFLG	MERS FLAG
	MGMT	ASSIGN OF MGMT
	MHCT	Mobile Home Certificate
	MHRD	Mobile Home Rider
	MIC	MIC
	MILR	(New) MILR
	MISC	MISC. DOCUMENTS
	MMIN	MERS ID NUMBER

    	 

    	 

    

 

	Track Item Type	Doc Type
	MOD	MODIFICATION
	MODF	MODIF AGREEMT
	MODN	MODIFICATION AGREEMENT FOR NOTE ONLY
	MORT	MORTGAGE
	MTG2	2nd Mortgage
	NDEF	Notice of Default
	NOLA	NOLA FORM
	NOT1	ADD'L NOTE
	NOT2	2ND ADDL NOTE
	NOTA	NOTICE OF ASN
	NOTE	MTG NOTE
	NRID	Note Rider
	NTAS	ASSIGNEE NOTICE
	NVA	(New) NVA
	OMNA	Intervening Assignment for Omnibus
	OMNI	OMNIBUS
	OMNV	Final Assignment for Omnibus
	OMVA	(New) OMVA
	OPER	OPERATIONS/MAIN
	OPIN	OPINION
	PART	Participation Agreement/Certificate
	PBND	Performance Bond
	PLSA	PLEDGE/SEC AGRE
	PMI	PRIV MORTG INS
	PMIS	PRIV. MORT INS
	POA	POWER OF ATTNY
	POFA	POWER OF ATTORN
	POOL	POOL PAPERS
	PORT	PORTFOLIO
	PPPA	Prepayment Penalty Addendum
	PRLS	PROPRIETARY LEASE
	PROL	PROPRIETARY LSE
	PTPL	PRELIM. TITLE POLICY
	PURL	PURCHASER LEASE
	QCLD	QUIT CLAIM DEED
	RAPR	RES. APPRAISAL
	RAS'	(New) RAS'
	RAS2	2ND ASSN SENT
	RAS3	3RD ASSN SENT
	RAS4	4TH ASSN SENT
	RASN	RECORDED ASSIGN
	RCAG	RECOGNITION AGREEMENT
	RCER	RECERT FORM
	REAG	RECIP EASE AGRE
	RECG	RECOGN AGREEMT
	RECO	RECONVEYANCE
	RECP	RECPT&CLSG CERT
	RELR	RELEASE REQUEST
	REOP	REO Phase Report
	REPL	REPLACEMENT RES
	REQU	REQUIRED REPAIR
	RIDR	RIDERS
	RLAP	RES. LOAN APPL.
	RTC	Right to Cancel
	SCER	STOCK CERT
	SCHD	POOL SCHEDULE
	SCON	Sales Contract

    	 

    	 

    

 

	Track Item Type	Doc Type
	SCRT	STOCK CERT
	SEC1	ASN OF SEC AGMT
	SEC2	Second Property Mortgage
	SEC3	Third Property Mortgage
	SECA	SECURITY AGREEMENT
	SECI	SECURITY INSTR
	SEVC	Final Assignment for Security Agreement
	SIGN	SIGNATURE AFFID
	SINS	SITE INSPECTION
	SPOW	STOCK POWER
	SPRG	SPREADER AGREMT
	SPWR	STOCK POWER
	SRID	Security Instrument Rider
	SRPT	Surveyor's Report
	STUB	Paystub
	SUB	SUBORDINATION
	SUBD	SUBORD AGREEMT
	SUBR	SUBORDINATION
	SUR1	FINAL SURVEY
	SURT	Surrender of Title/Origin Certificate
	SURV	SURVEY
	TAGR	TRUST AGREEMENT
	TAXR	Tax Returns
	TCMT	TITLE COMMITMENT
	TEND	Title Policy Endorsement
	TENT	TENANT ESTOPPEL
	TEST	TEST DOCUMENT
	TIL	Truth in Lending Disclosure Statement
	TILN	TRUTH IN LENDNG
	TITL	TITL - Converted
	TPOL	TITLE POLICY
	TRAN	(New) TRAN
	TRFL	MTG,ASSN & DOCS
	TRNS	TORRENS CERT
	TTRB	TRIAL BALANCE
	UARL	UNREC ASSN REL
	UC31	Intervening UCC3 County Assignment 1
	UC32	Intervening UCC3 County Assignment 2
	UC33	Intervening UCC3 County Assignment 3
	UC34	Intervening UCC3 County Assignment 4
	UC35	Intervening UCC3 County Assignment 5
	UC36	Intervening UCC3 County Assignment 6
	UC37	Intervening UCC3 County Assignment 7
	UC38	Intervening UCC3 County Assignment 8
	UC39	Intervening UCC3 County Assignment 9
	UC3I	UCC-3 INTV(CO)
	UC3U	Unfiled UCC3 to Blank
	UCC1	UCC-1 (CO)
	UCC2	UCC2 - Converted
	UCC3	UCC-3 (CO)
	UCS1	UCC-1 (ST)
	UCS3	UCC-3 (ST)
	US31	Intervening UCC3 State Assignment 1
	US32	Intervening UCC3 State Assignment 2
	US33	Intervening UCC3 State Assignment 3
	US34	Intervening UCC3 State Assignment 4
	US35	Intervening UCC3 State Assignment 5

    	 

    	 

    

 

	Track Item Type	Doc Type
	US36	Intervening UCC3 State Assignment 6
	US37	Intervening UCC3 State Assignment 7
	US38	Intervening UCC3 State Assignment 8
	US39	Intervening UCC3 State Assignment 9
	US3I	UCC-3 INTV (ST)
	VOE	Verification of Employment
	VOM	Verification of MTG
	VOR	Verification of Rent
	W2F	W2 Form
	WARD	WARRANTY DEED
	WDEB	WARRANTY DEED TO BUYER
	WDED	WARRANTY DEED
	WVOP	WRTN VAL OF PRP

 

 

EXCEPTION CODES

 

	Code	Question Description
	01	Missing
	02	Document is Copy, Need Original
	03	Doc is a Copy, but not Certified True and Correct
	04	Pages are Missing from Document
	05	Damaged Document
	06	Incorrect Form
	07	Date is Incorrect
	08	Loan Number does not agree with Schedule
	09	Property Address does not agree with Schedule
	10	Interest Rate does not agree with Schedule
	11	Interest Rate (alpha & numeric) do not agree
	12	Date of First Payment does not agree with Schedule
	13	Date of Last Payment does not agree with Schedule
	14	Loan Amount does not agree with Schedule
	15	Loan Amount (alpha & numeric) do not agree
	16	Monthly P&I does not agree with Schedule
	17	P&I (alpha & numeric) do not agree
	18	Mortgagor Name(s) does not agree with Schedule
	19	Legal Description is Missing/Incorrect
	20	Unrecorded Original
	21	White-out / Corrections Not Initialed
	22	Endorsement(s) is Missing/Incorrect
	23	Notary, Acknowledgment, or Witness Information is Missing
	24	Name is Missing/Incorrect
	25	Signature(s) does not agree with Typed Name(s)
	26	Signature is Missing
	27	Signature is Not Original
	28	Signature Date is Missing
	29	Title Insurance Coverage is Insufficient
	30	Named Insured is Missing/Incorrect
	31	Trustee Name is Missing/Incorrect
	32	Guarantee Percentage is Missing
	33	Case Number does not agree with Schedule
	34	Commitment Number does not agree with Schedule
	35	Investor Loan Number does not agree with Schedule
	36	First Interest Rate Adjustment Date differs from Schedule
	37	The Margin does not agree with Schedule
	38	The Percent Rounded does not agree with Schedule
	39	The Periodic Cap does not agree with Schedule

    	 

    	 

    

 

	Code	Question Description
	40	The Lifetime Cap does not agree with Schedule
	41	ARM Convertibility Feature is Missing/Incorrect
	42	ARM Index is Missing/Incorrect
	43	ARM Lookback Period is Missing/Incorrect
	44	Schedule A is Incorrect
	45	County Missing/Incorrect
	46	Loan Reference Missing/Incorrect
	47	Incomplete Information
	48	Not Listed on Trial Balance (recertification code)
	49	Life Floor Does not Agree with Schedule
	50	Rate Adj Frequency Does Not Agree with Schedule
	51	Closing Date Does Not Agree with Schedule
	52	Document Does Not Belong in File
	53	Total Loan to Value does not agree with Schedule
	54	Property Type does not agree with Schedule
	55	Loan Purpose does not agree with Schedule
	56	Occupancy does not agree with Schedule
	57	Document is a "True & Correct" copy, need Original
	58	Prepayment Penalty Term differs from Schedule.
	59	Title Policy Assumption Endorsement Missing
	60	Break in Assignment Chain.
	61	Document is Missing, Need a Copy
	62	CLAIM, LIEN, INTEREST, ENCUMBRANCE, OR RESTRICTION EXISTS
	63	Mers Beneficiary Name Missing/Incorrect
	64	Duplicate Original in file
	65	Corrected MIC in file
	66	Rider Missing
	67	in File
	68	Certified True Copy
	69	Recorded Copy
	70	IN PROCESS AND\OR SUBMITTED FOR RECORDING
	71	Start date is incorrect.
	72	Max. principal sum doesn't agree with schedule.
	73	Advance limit amount doesn't agree with schedule.
	74	Initial advance doesn't agree with schedule.
	75	Monthly advance doesn't agree with schedule.
	76	Maturity fee doesn't agree with schedule.
	77	Equity share doesn't agree with schedule.
	78	Reserve acct. advance amount doesn't agree with schedule.
	79	Loan Percentage does not match the schedule
	80	Missing CO-OP documents
	81	Initial Fair Value does not match the schedule
	82	Compounding Amount does not match the schedule
	83	Initial Lending Value does not agree with Schedule
	84	Initial Annual Percentage Rate does not match Schedule
	85	Maximum Rate does not match Schedule
	86	RECEIVING BANK NAME DOES NOT AGREE
	87	ABA NUMBER DOES NOT AGREE
	88	MISSING
	89	ACCOUNT # DOES NOT AGREE
	90	LOST DOCUMENT - AFFIDAVIT IN FILE
	91	TRUST INFORMATION MISSING OR INCORRECT
	92	DOCUMENT BEING CREATED AND OR EXECUTED
	93	PAGES ARE MISSING FROM RECORDED DOC
	94	OUT FOR EXECUTION
	95	NOTARY, ACKNW., OR WITNESS INFO. MISSING FROM RECORDED DOC
	96	DOCUMENT IS AN UNRECORDED COPY, NEED RECORDED COPY

    	 

    	 

    

 

	Code	Question Description
	97	ADDITIONAL DOCUMENTS IN FILE
	98	Missing.  Title Commitment Received
	99	Document is a "True & Correct" Copy, need Original
	CM	MIC/LGC IS MISSING
	F1	Misc. Exception
	F2	Misc. Exception
	F3	Missing File
	F4	MISSING FILE
	MM	MORTGAGE/DEED OF TRUST IS MISSING
	NM	NOTE MISSING
	NR	NOT REVIEWED
	TM	TITLE POLICY MISSING
	02A	DOCUMENT IS A COPY, ASSIGNEE NAME IS MISSING
	09A	PROPERTY ADDRESS MISSPELLING OF ADDRESS
	09B	PROPERTY ADDRESS MISSPELLING OF CITY
	09C	Legal Description or Property Address missing
	100	RECORDING INFORMATION MISSING/INCORRECT
	101	VA ELIGIBILITY PERCENT
	102	VA VENDEE
	103	ADP CODE
	104	HUD REPO
	105	PRODUCT TYPE
	106	LAST RECORDED INTERIM ASSIGNMENT.
	107	ADP CODE NOT APPROVED.
	108	NOTE HELD AT FNMA/FHLMC CUSTODIAN
	109	REC'D ASUM NEED UCC AMENDMENT OR NEW FILING
	110	PORTFOLIO REVIEWED LOAN
	111	RECORDED DOCUMENT SENT TO BE RE-RECORDED
	112	Mortgagor name(s) does not agree with Assignment.(FHLB)
	113	Property address does not agree with Assignment.(FHLB)
	114	Note is not on a standard FNMA/FHLMC uniform instrument form
	115	Processing and or submitted for recording to issuer vendor.
	116	DOCUMENTS IN A FOREIGN LANGUAGE, CAN NOT BE REVIEWED
	117	Initial Rate Cap doesn't agree with schedule.
	118	Lost Note Affdidavit in File, Missing Copy of Note
	119	Lost Note Affidavit and Copy of Note in File
	120	Assignee Name Missing
	121	Recording Search and/or Confirmation of Filing
	122	Screen Print of Government Insurance Received
	123	Desc. of Easements and Encroachments does not agree with TPO
	124	Name of insured not  mortgagee and/or Sec'y of HUD
	125	NOT VERIFIED AS MERS REGISTERED
	126	 INTERIM FUNDER IS NOT BLANK
	127	PREPAYMENT CHARGE DOES NOT MATCH SCHEDULE
	128	Lender signature missing
	129	Balloon Call Date does not match system
	130	ARM DATA MISSING
	131	First rate Adjustment Min Rate does not agree with schedule
	132	First Rate Adjustment Max Rate does not agree with schedule
	134	Loan requires new FHLMC review
	135	Co-Borrower name does not agree with schedule
	136	CUSTODIAN NOT ON MERS SYSTEM
	137	WAREHOUSE LENDER NOT BLANK OR IS INCORRECT ON MERS SYSTEM
	138	INVESTOR INCORRECT ON MERS SYSTEM
	139	1st Payment Change Date differs from schedule
	140	Copy Missing
	141	MIN NUMBER is Missing/Incorrect

    	 

    	 

    

 

	Code	Question Description
	142	ARM Note Rounding Method differs from Schedule
	143	1st full amortizing payment date does not match the Schedule
	144	Amortization term does not match schedule
	145	IO Term Does Not Match Schedule
	146	Periodic Payment Cap does not agree with Schedule
	147	File Released in Excess of 30 days
	148	File Released-Attorney Bailee Terminated
	18A	Borrowers Age does not agree Schedule
	200	Lien release/short sale.
	20A	UNRECORDED ORIGINAL INVESTOR ASSIGNMENT
	21A	Document Initialed Inconsistently
	22A	NOTE ENDORSEMENT MISSING TYPED NAME OF SIGNER
	22B	NOTE ENDORSEMENT MISSING TITLE OF OFFICER
	22C	NOTE ENDORSEMENT IS DUPLICATE
	22D	NOTE ENDORSEMENT IS ILLEGIBLE
	22E	ALLONGE TYPED SIGNERS NAME IS MISSING
	22F	ALLONGE TITLE OF OFFICER MISSING
	22G	Allonge verbiage missing from Note
	22H	Endorsement subsequent to allonge is on note
	277	Signature is a facsimile.
	300	Evidence of title received, need title policy
	301	Standard form of Alta policy not received
	302	HUD Insurance Option does not match schedule
	303	Principal Limit does not match schedule
	304	Payment Option does not match schedule
	305	Expected Rate does not match schedule
	310	Max Claim Amount does not agree with Plan
	311	Monthly Servicing Fee does not agree with Plan
	41A	ARM Conversion/Modification Date is Missing/Incorrect
	440	Schedule A missing
	441	Schedule B missing
	490	ARM Ceiling does not agree with Schedule
	491	INTEREST RATE CAPS DO NOT MEET GNMA STANDARDS
	492	Subsequent Adjustment Floor does not agree with schedule
	493	Original Months to Maturity does not match Schedule
	494	Interest Rate Calculation Method does not match Schedule
	495	Payment Change Cap does not match Schedule
	496	First Mandatory Recast period does not match Schedule
	500	ASSIGNMENT TO BLANK S/B TO EMC MTG FROM:
	501	Pmt Change Frequency does not agree with schedule
	502	Draw period does not match schedule
	503	Repayment period  does not match schedule
	580	PREPAYMENT FLAG IS INCORRECT
	600	ENDORSEMENT TO BLANK S/B TO EMC MTG FROM:
	700	Submitted for Recording
	710	Repair Set-Aside Amount differs from Schedule
	730	Closing Cost does not Agree with Schedule
	731	Discharge of Lien does not Agree with Schedule
	732	Outstanding Balance does not Agree with Schedule
	800	File Received, Not Reviewed
	900	Bailee in Lieu of Note
	901	Recorded Document Missing
	905	Damaged Document on recorded Document
	909	Property address does not agree with sch. on recorded doc.
	914	Loan amount does not agree with schedule on recorded doc.
	918	Borrower name does not agree with sch. on recorded document
	919	Legal description missing/incorrect on recorded document

    	 

    	 

    

 

	Code	Question Description
	924	Name is Missing/Incorrect on recorded Document
	926	Signature is missing from recorded document
	947	Incomplete information on Recorded document
	990	Bailee in Lieu of File
	999	NOT REVIEWED
	AFM	FINAL ASSN MISSING/INCORRECT
	AI1	INTERIM (INTERVENING) ASSIGNMENT IS INCOMPLETE
	AI2	INTERIM (INTERVENING) ASSIGNMENT IS INCOMPLETE
	AI3	INTERIM (INTERVENING) ASSIGNMENT IS INCOMPLETE
	ALL	MISSING ALL DOCUMENTS
	AM1	INTERIM ASSN IS MISSING
	AM2	INTERIM (INTERVENING) ASSIGNMENT IS MISSING
	AM3	INTERIM (INTERVENING) ASSIGNMENT IS MISSING
	ANP	NOTARY INFORMATION IS MISSING/INCORRECT ON ASSIGNMENT
	EFI	FINAL (ISSUER TO BLANK/INVESTOR) ENDORSEMENT IS INCOMPLETE
	EFM	FINAL (ISSUER TO BLANK/INVESTOR) ENDORSEMENT IS MISSING
	EI1	INTERIM (INTERVENING) ENDORSEMENT IS INCOMPLETE
	EI2	INTERIM (INTERVENING) ENDORSEMENT IS INCOMPLETE
	EI3	INTERIM (INTERVENING) ENDORSEMENT IS INCOMPLETE
	EM1	INTERIM (INTERVENING) ENDORSEMENT IS MISSING
	EM2	INTERIM (INTERVENING) ENDORSEMENT IS MISSING
	EM3	INTERIM (INTERVENING) ENDORSEMENT IS MISSING
	END	MISSING ENDORSEMENT
	MIC	MIC/LGC is missing or incorrect
	MNP	NOTARY INFORMATION MISSING ON MORTGAGE
	NNP	NOTARY INFORMATION IS MISSING/INCORRECT ON NOTE
	NPI	MONTHLY P & I IS MISSING ON NOTE
	POA	MISSING POWER OF ATTORNEY
	RF1	BLUE SLIP-BUT RFC ASSGN IS REQUIRED
	SCH	PROPERTY ADDRESS ON NOTE IS DIFFERENT THAN SCHEDULE
	SPI	MONTHLY P & I ON SCHEDULE DOES NOT MATCH NOTE
	01CC	Cook County, IL Mortgage Missing Certificate
	101A	VA Eligibility AMT
	119A	Document not Addressed to Freddie Mac
	128A	Officer Name or Title Missing
	1706	PROPERTY ADDRESS ON NOTE IS DIFFERENT THAN 1706
	1708	MISSING RELEASE REQUEST
	A-01	OTHER LOAN #
	AAMT	FNMA ASSIGNMENT IS MISSING THE MORTGAGE AMT
	ACER	ASSIGNMENT COPY NEEDS TO BE ISSUER CERTIFIED
	ACOP	COPY OF ASSIGNMENT IS NOT COUNTY CERTIFIED
	ADAT	NOTE DATE REFERENCED ON ASSIGNMENT IS MISSING/INCORRECT
	AIM1	INTERIM (INTERVENING) ASSIGNMENT IS MISSING/INCORRECT
	AIM2	INTERIM (INTERVENING) ASSIGNMENT IS MISSING/INCORRECT
	AIM3	INTERIM (INTERVENING) ASSIGNMENT IS MISSING/INCORRECT
	ALEN	LENDER NAME IS INCORRECT ON ASSIGNMENT
	ANAM	BORROWER NAME IS MISSING ON ASSIGNMENT
	AOTH	OTHER ASSIGNMENT EXCEPTION
	AREC	ASSIGNMENT SHOWS NO EVIDENCE OF RECORDING
	AS33	MISSING ASSIGNMENT FROM PRINCIPAL TO FHLMC
	ASCC	ASSIGNMENT NEEDS TO BE ISSUER CERTIFIED
	ASEL	CORPORATE SEAL IS MISSING ON ASSIGNMENT
	ASGN	MISSING RECORDED RFC ASSIGNMENT
	ASIG	ASSIGNMENT IS NOT SIGNED BY ISSUING OFFICER
	ASN1	Assignment Exception
	ASN2	Assignment Exception
	ASN3	Assignment Exception

    	 

    	 

    

 

	Code	Question Description
	ASN5	Missing Original, Recorded Interim Assignment
	ASN6	Missing Assignment to GNMA
	ASN7	Missing Assignment to FNMA
	ASN8	Assn indicates Prin Mutual on Deed of Trust
	ASNE	ASSIGNEE NAME IS MISSING/INCORRECT ON ASSIGNMENT
	ASPE	MISSING INT ASSN FROM PUBLIC EMP RET SYSTEM TO PRIN
	ASPL	BORROWER NAME IS MISSPELLED ON FINAL ASSIGNMENT
	ASSE	MISSING INT ASSN FROM SECURITY PACIFIC TO CA EMP RET SYSTEM
	ASSN	Interim Assignment is missing or incorrect
	ASSO	Original Assignment is missing or incorrect
	AXTR	EXTRA UNNECESSARY ASSIGNMENT
	BLNK	BLNK DESCRIPTION
	CAMT	LOAN AMOUNT ON MIC/LGC DOES NOT MATCH MORTGAGE
	CCZC	CITY & ZIP CODE ON MIC BOTH DO NOT MATCH MORTGAGE
	CMAT	MATURITY DATE ON MIC DOES NOT MATCH MORTGAGE
	CNAM	MORTGAGOR NAME ON MIC/LGC DOES NOT MATCH MORTGAGE
	CNUM	HOUSE # ON MIC DOES NOT MATCH MORTGAGE
	COTH	OTHER CERT EXCEPTION
	CSIG	AUTHORIZATION SIGNATURE IS MISSING ON MIC/LGC
	CSTR	STREET NAME ON MIC DOES NOT MATCH MORTGAGE
	DOFT	Deed of Trust is missing or incorrect
	EDUP	DUPLICATE ENDORSEMENT NEEDS TO BE CANCELLED
	EIM1	INTERIM (INTERVENING) ENDORSEMENT IS MISSING/INCORRECT
	EIM2	INTERIM (INTERVENING) ENDORSEMENT IS MISSING/INCORRECT
	EINI	CANCELLED ENDORSEMENT IS NOT INITIALED BY AN OFFICER
	END1	INCORRECT ENDORSEMENT
	END2	Extra Endn from Prin Mutual to Prin Residential
	END3	MISSING BLANK ENDORSEMENT
	ENDN	MISSING ENDORSEMENT FROM NMI TO BLANK
	ENDP	MISSING ENDORSEMENT FROM PRINCIPAL TO BLANK
	EOTH	OTHER ENDORSEMENT EXCEPTION
	EV01	Tamper evident seal validation failed.
	EV02	DTD validation failed.
	EV03	Digital certificate could not be obtained.
	EV04	Digital certificate expired.
	EV05	Digital certificate authentication failed.
	EV06	Digital signature validation failed.
	EV07	Data/View comparison failed.
	EV08	MERS-MIN CRC check failed.
	EV09	Digital certificate not issued by valid SISAC issuer.
	EV10	Document hash does not match MERS eRegistry.
	EX01	MISSING FHLMC STAMP
	FFPM	FINAL PACKAGE IS MISSING
	FLIS	FILE RECEIVED IS NOT ON LIST
	FOOL	FILE RECEIVED DOES NOT BELONG IN POOL
	GONE	ENTIRE FILE IS MISSING
	I-01	Assignment is missing or incorrect
	I-03	Other exception
	I-04	Other exception
	INIT	CANCELLED NOTE ENDORSEMENT IS NOT INITIALLED BY OFFICER
	INVA	Missing Investor Assignment
	LEGL	LEGAL DESCRIPTION MISSING
	M-01	Miscellaneous Document Exceptions
	MCAS	FHA CASE NUMBER ON MORTGAGE DOES NOT MATCH MIC/LGC
	MCOP	COPY OF MORTGAGE IS NOT COUNTY CERTIFIED
	MINF	INFORMATION IS MISSING/INCORRECT ON MORTGAGE
	MMAT	MATURITY DATE MISSING/INCORRECT ON MORTGAGE

    	 

    	 

    

 

	Code	Question Description
	MNNA	NUMERIC AND ALPHA AMOUNTS DO NOT MATCH ON MORTGAGE
	MORT	MORTGAGE IS MISSING OR INCORRECT
	MOTH	OTHER MORTGAGE EXCEPTION
	MREC	MORTGAGE SHOWS NO EVIDENCE OF RECORDING
	MSIG	MORTGAGOR/CO-MORTGAGOR SIGNATURE MISSING ON MORTGAGE
	NAME	Different Name/Address
	NCOP	NOTE IS NOT ORIGINAL
	NDAT	FIRST/LAST PAYMENT DATE IS MISSING ON NOTE
	NINI	NOTE CORRECTION IS NOT INITIALLED
	NINT	INTEREST RATE IS MISSING ON NOTE
	NLEN	LENDER NAME IS MISSING ON NOTE
	NNNA	NUMERIC AND ALPHA LOAN AMOUNTS DO NOT MATCH ON NOTE
	NOT1	NOTE EXCEPTION
	NOT2	NOTE EXCEPTION
	NOTE	Note is missing or incorrect
	NOTH	OTHER NOTE EXCEPTION
	NRID	NOTE RIDER/ALLONGE/MODIFICATION IS NOT ORIGINAL
	NSIG	BORROWER SIGNATURE IS INCOMPLETE ON NOTE
	OBOR	DOCUMENT(S) IN THE FILE IS/ARE FOR OTHER BORROWER
	OEXC	OTHER MISCELLANEOUS EXCEPTION
	ONUM	OTHER LOAN # (FOR FHLMC)
	POAC	POWER OF ATTORNEY COPY IS NOT CERTIFIED
	POAM	POWER OF ATTORNEY IS MISSING
	RFC0	NOT STAMPED ARS BUT EXTRA ASSIGN
	RFC1	MISSING ASSIGNMENT(S)
	RFC2	MISSING RECORDED OR COUNTY CERTIFIED ASSIGNMENT(S)
	RFC3	ENDORSEMENT EXCEPTION
	RFC8	STAMPED ARS OR PINK SLIP BUT NOT MISSING ASSIGN
	RFC9	STAMPED ARS BUT IS MISSING ASSIGN
	SADR	PROPERTY ADDRESS ON SCHEDULE DOES NOT MATCH NOTE
	SAMT	ORIGINAL LOAN AMT ON SCHEDULE DOES NOT MATCH NOTE
	SCIT	CITY ON SCHEDULE DOES NOT MATCH NOTE
	SCZC	CITY & ZIP CODE BOTH DO NOT MATCH NOTE
	SDAT	FIRST/LAST PAYMENT DATES ON SCHEDULE DO NOT MATCH NOTE
	SIGN	BORROWER'S SIGNATURE IS INCOMPLETE ON NOTE
	SINF	LOAN INFORMATION ON SCHEDULE DOES NOT MATCH NOTE
	SINT	INTEREST RATE ON SCHEDULE DOES NOT MATCH NOTE
	SLAB	NAME ON SCHEDULE AND LABEL DOES NOT MATCH NOTE
	SNAM	NAME ON SCHEDULE DOES NOT MATCH NOTE
	SNUM	HOUSE # ON SCHEDULE DOES NOT MATCH NOTE
	SOTH	OTHER SCHEDULE EXCEPTION
	SPLA	BORROWER'S NAME IS MISSPELLED ON ASSIGNMENT
	SPLB	BORROWER'S NAME IS MISSPELLED ON SCHEDULE, FILE AND ASSIGN
	SSTR	STREET NAME ON SCHEDULE DOES NOT MATCH NOTE
	STAT	STATE ON SCHEDULE DOES NOT MATCH NOTE
	SZIP	ZIP CODE ON SCHEDULE DOES NOT MATCH NOTE
	TAMT	TITLE POLICY INSURANCE AMOUNT IS LESS THAN MORTGAGE
	TCOP	TITLE POLICY COPY MISSING ORIGINAL AUTHORIZED SIGNATURE
	TDAT	MORTGAGE DATE IN SCHEDULE "A" IS INCORRECT
	TDES	MORTGAGE DESCRIPTION IN SCHEDULE "A" IS INCORRECT
	TLGL	LEGAL DESCRIPTION IS MISSING FROM TITLE POLICY
	TMTG	MORTGAGE AMOUNT IN SCHEDULE "A" IS INCORRECT
	TNAM	NAME OF BORROWER IS INCORRECT ON TITLE POLICY
	TOTH	OTHER TITLE POLICY EXCEPTION
	TPOL	Title Policy is missing or incorrectLand S/N: T204-0124

 

Shenzhen Land Use Right Transfer Contract

 

SLC No. (2011) 8027

 

		I.	Parties to the Contract

 

	Transferor:	Shenzhen Urban Planning and Land Resources Committee,

2nd  Management Bureau

(Hereinafter, “Party
A”)

Legal Representative:SONG YanPosition: Bureau
Chief

Address: 10138 Shennan Boulevard, Nanshan District, Shenzhen
City

Telephone:26978183

 

Transferee:Comtech Communication Technology (Shenzhen) Co.,
Ltd.

Legal Representative:CHEN JianxiongPosition: ______________

	Address:	Suite C1001 and Suite C1003, Skyworth
Building

High-Tech Industrial Park, South Zone, Nanshan District, Shenzhen

(Hereinafter,
“Party B”)

Telephone:______________

 

		II.	The following Contract is entered into pursuant to the State laws and statutes and Shenzhen’s relevant regulations.

 

		III.	Party A transfers to Party B the land use right to a parcel of land; the ownership of the said parcel of land belongs to the
State. The underground natural resources and the buried items underneath the parcel of land are not included in the transfer.

  

		IV.	On the date of executing this Contract, Party A shall transfer the land use right to a parcel
of land of 6687.04 square meters (see the red-lined area in the attached map; the parcel of land S/N is T204-0124)
to Party B, and Party B has no objection to the current condition of the aforementioned parcel of land. Upon execution of this
Contract, the parcel of land shall be considered to have been delivered by Party A to Party B.

  

		V.	The term of the land use right to the parcel of land is fifty years, starting from August 18, 2011 to August 17, 2061.

 

    	1

    	 

    

 

		VI.	The total consideration for the transfer of the land use right to the parcel of land is RMB Nineteen Million Three Hundred
and Seven Thousand and Seven Hundred (¥19,307,700.00). Of the total amount, the transfer payment is RMB Two Million Eight Hundred
Ninety-Six Thousand and One Hundred Fifty-Five (¥2,896,155), land development payment is RMB Six Hundred Sixty-Eight Thousand
and Seven Hundred and Four (¥668,704.00), and municipal supporting facility payment is RMB Fifteen Million Seven Hundred Forty-Two
Thousand and Eight Hundred Forty-One (¥15,742,841.00).

  

		VII.	The land use purpose is industrial land.

  

		VIII.	The nature of the land is commercial real estate.

  

		IX.	Requirements for the use of the parcel of land:

  

		(1)	The nature of the main building: research and development, production building

		(2)	Building coverage ratio: =<50%

		(3)	Floor area ratio: =<3.7

		(4)	Distance between buildings: in compliance with “Shenzhen Urban Planning Criteria and Building Code” and other standards

		(5)	Height or number of levels of the building: 50 meters

		(6)	The total construction area included in the floor area ratio shall not exceed 24,750 square meters, of which the area for R&D
and production is 23,250 square meters and the area for cafeteria is 1,500 square meters.

The underground garage, equipment rooms, fire facilities
and public passage ways are not included in the floor area ratio

		(7)	Requirements for overall layout and building red-lining:

		(7.1)	Building red-lining requirement: east side >=12 meters and other sides >=6 meters;

		(7.2)	The building adopts the half-enclosed peripheral layout, with the inner courtyard open on the east side and an arcade of 5-meter
in height and 3-meter in width along the inner sides of the courtyard;

		(7.3)	It should be considered to set aside pass-through entrances connecting neighboring underground garages on the east and south
sides of the underground garage;

		(7.4)	A passage way of 6-meter in width for public vehicles must be set aside on the east side of the land;

		(7.5)	Green area ratio >=30%

    	2

    	 

    

		(7.6)	Other features must be in compliance with “Shenzhen Urban Planning Criteria and Building Code” and “Gaoxin
District Sixth Reclamation Zone Comprehensive Blueprint and Urban Design Control Map”.

		(8)	167 parking spaces for motor vehicles; other specific requirements for municipal facilities must follow those of the planning
approval.

		(9)	Business permitted and other building requirements:

		(9.1)	The type of the permitted business is embedded application software service;

		(9.2)	The proposed project must be recognized as the major project by the city (within valid period);

		(9.3)	Total investment for the project must not be less than RMB 500 million, the source of the fund must be clear, and its own fund
must not be less than 30% of the total investment amount;

		(9.4)	The proposed project must satisfy the relevant criteria of the State’s and Shenzhen’s industrial project construction
land control standards for the corresponding industry and the relevant provisions of “Shenzhen High-Tech Industry High-Tech
Project Land Use Qualification Review and Management Method”;

		(9.5)	The proposed project must be recognized as a high-tech project by the city;

		(9.6)	An environmental impact assessment must be conducted and approval by the environmental protection agency must be obtained before
the commencement of the project construction to ensure that the construction of the project is in compliance with environmental
protection standards.

 

		X.	Party A and Party B agree, after consultation, that Party B shall pay to Party A the total transfer consideration specified
herein in one sum within 5 business days upon execution of this Contract.

 

		XI.	Party B agrees that, if Party B fails to pay in full the transfer consideration within the term specified herein, Party A can
terminate the transfer contract and reclaim the land use right. The security deposit already paid by Party B will not be returned.
Party A will claim the ownership of the building and structures attached thereto already under construction without compensation,
and Party A may also demand Party B to pay a default penalty in the amount equal to 20% of the transfer consideration.

If Party B’s use of the
land is delayed due to Party A’s fault, Party A must bear responsibility to compensate Party B for all the resulting economic
loss.

  

		XII.	Party B must also pay, in addition to the transfer consideration to be paid to Party A, the land use taxes annually in accordance
with the relevant regulations.

 

    	3

    	 

    

		XIII.	During the period when the parcel of land is used, if Party B fails to pay for the land use taxes in accordance with the relevant
regulations, Party A may refuse to process registration of the ownership for the property and buildings in connection with the
parcel of land and other procedures or to take other restrictive measures.

  

		XIV.	Party B must comply with the law, statutes and the provisions herein regarding the use of land, use it strictly for the purpose
specified, and shall not transfer or lease it without authorization.

Party B’s legal rights
and interests will be protected by law, if, during the term of the land use right, Party B transfers, leases, pledges or uses the
land use right for other economic activities in accordance with the law, statutes, Shenzhen’s relevant regulations and relevant
provisions herein. Party B’s development, use and operation of the parcel of land shall not harm public interests of the
society.

 

		XV.	Party B shall not dispose of the land use right by any means before processing the registration of the land use right and receiving
“Real Estate Property Ownership Certificate”. If the land use right is transferred in accordance with the law, statutes
and relevant provisions herein, it can only be transferred in whole and cannot be divided for transfer.

  

		XVI.	If Party B transfers the land use right or auctions or sells it in an enforcement action ordered by the people’s court,
the sub-transferee must meet the following criteria and provide certification documents issued by the relevant qualification review
agency at the time of processing transfer registration procedures:

  

		(1)	The permitted business is embedded application software service;

		(2)	It is an enterprise legal person registered in Shenzhen; its registered capital (fully paid-in) must not be less than RMB 100
million; its net assets at the end of the previous year must not be less than RMB 200 million; and the income from its main business
in the previous year must not be less than RMB 200 million;

		(3)	It has been in the embedded application software service business for more than 5 years and its operation condition has been
sound; it has executed strategic cooperation agreement and other relevant documents with the world 500 strong enterprises in the
embedded application software service area;

		(4)	Its proposed project must be recognized as the major project by the city (within valid period);

		(5)	The sub-transferee or its controlling shareholder must be a public company listed domestically or overseas;

    	4

    	 

    

		(6)	Total investment for the project must not be less than RMB 500 million, the source of the fund must be clear, and its own fund
must not be less than 30% of the total investment amount;

		(7)	The proposed project must satisfy the relevant criteria of the State’s and Shenzhen’s industrial project construction
land control standards for the corresponding industry and the relevant provisions of “Shenzhen High-Tech Industry High-Tech
Project Land Use Qualification Review and Management Method”;

		(8)	The sub-transferee has received the State or Shenzhen high-tech enterprise certification or the proposed project has been recognized
as a Shenzhen high-tech project;

 

If such transfer must be carried
out or due to enforcement action ordered by the people’s court but there is no sub-transferee that satisfies the criteria
to receive the transfer, the government shall have the priority right to buy back the land use right and the buildings, structures
and supporting facilities on the parcel of land at the cost price minus depreciation; of the buy-back price, the land use price
is the price based on the total land price specified herein minus apportioned amount for the actual number of years used by Party
B, and the price for the buildings, structures and supporting facilities on the parcel of land is the cost at the completion time
of their construction minus depreciation.

  

		XVII.	Upon expiration of the term of the land use right specified herein, Party A will reclaim, without compensation, the land use
right to the parcel of land along with the buildings and other supporting structures on the parcel of land. Party B promises to
hand over the parcel of land along with the buildings and other supporting structures on it to Party A without compensation prior
to August 18, 2061 and process procedures for cancelling the real estate property ownership within 10 days upon expiration of the
term; otherwise Party A will turn it over to relevant real estate property registration agency for cancellation.

 

		XVIII.	If, during the course of performing this Contract, Party A needs to notify Party B of certain matters, Party B agrees that
Party A send such notification by registered mail to Party B’s address specified herein or by announcement in public media.

  

		XIX.	The “Land Use Right Rules” is a component part of, and has the same legal effect as, this Contract. Party B must
adhere to the “Land Use Right Rules”.

  

		XX.	The preparation, validity, interpretation, performance and resolution of dispute are all governed by the law of the People’s
Republic of China.

 

    	5

    	 

    

 

		XXI.	Any dispute arising from the performance of this Contract must be resolved through negotiation between the two parties; if
such negotiation fails, the dispute can be submitted to the people’s court.

 

		XXII.	This Contract shall become effective on the day of its execution.

 

		XXIII.	This Contract has one format and six counterparts, with three to Party B and the rest to be delivered by Party A to the relevant
agencies.

 

		XXIV.	Other matters not covered herein may be explicitly provided in a separate agreement between the two parties through consultation.

 

Party A:/s/ Shenzhen Urban Planning and Land Resources
Committee,

   2nd  Management Bureau

 

Legal Representative:/s/ SONG Yan

 

Party B:/s/Comtech Communication Technology (Shenzhen) Co.,
Ltd.

Authorized Agent:/s/ ZHENG Qiang

 

Date of Execution:August 18, 2011

Place of Execution:Shenzhen Land Real Estate Exchange Building

 

 

***

 

Attachment“Land Use Rules” (with 3 blank tables
for listing supporting equipment, public benefit projects and municipal facilities and a copy of the survey map of the parcel of
land in transfer [not translated]

    	6

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