Document:

Exhibit 10.48

                                      LOAN

Borrower:           Universe2U  Canada  Inc.

Lender:             Frank  Servedio

Amount:             $200,000  CDN

Date  of  Loan:     November  14,  2001

Use  of  Proceeds:  Operations

Maturity:           February  18,  2002

Interest Rate

Extension           60-day  extension  upon  payment of a fee of $10,000 CDN

Penalty  provisions     500,000  shares  if the loan is not repaid by the end of
the  first  60-day  period  and  an additional 250,000 shares if the loan is not
repaid  by  the  end  of  the  second  60-day  period

Expenses     Company  pays  all  associated  expenses  to  establish  the  loan

Stock  Payment     At maturity or repayment, 45,000 common shares of UTOU common
stock

Please  confirm your acceptance of the Loan on the terms stated above by signing
and  returning  to  us  the  enclosed  copy  of  this  Agreement, whereupon this
Agreement  shall  become  a  binding  agreement  between  us.

     Very  truly  yours,

     FRANK  SERVEDIO

     By:    /s/  Frank  Servedio
          Name:  Frank  Servedio

Agreed  to  this 18  day  of  Feb.,  2002.

UNIVERSE2U  INC.

     By:/s/ Kim Allen
     Name:  Kim  Allen
     Title:  CEO--------------------------------------------------------------------------------

                    WAREHOUSING CREDIT AND SECURITY AGREEMENT

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

                                     BETWEEN

                          MATRIX CAPITAL MARKETS, INC.,
                             a Colorado corporation

                                       AND

                        RESIDENTIAL FUNDING CORPORATION,

                             a Delaware corporation

                           Dated as of March 29, 2002

<PAGE>

<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

<S>     <C>                                                                                                    <C>

1. THE CREDIT..................................................................................................1-1
         1.1. The Warehousing Commitment.......................................................................1-1
         1.2. Expiration of Warehousing Commitment ............................................................1-1
         1.3. Warehousing Note.................................................................................1-1
2. PROCEDURES FOR OBTAINING ADVANCES...........................................................................2-1
         2.1. Warehousing Advances ............................................................................2-1
3. INTEREST, PRINCIPAL AND FEES ...............................................................................3-1
         3.1. Interest.........................................................................................3-1
         3.2. Interest Limitation..............................................................................3-2
         3.3. Principal Payments ..............................................................................3-2
         3.4. Non-Usage Fees ..................................................................................3-4
         3.5. Loan Package Fees, Wire Fees, Warehousing Fees ..................................................3-4
         3.6. Miscellaneous Fees and Charges...................................................................3-4
         3.7.  Overdraft   Advances............................................................................3-4
         3.8. Method of Making Payments........................................................................3-5
4. COLLATERAL..................................................................................................4-1
         4.1. Grant of Security Interest.......................................................................4-1
         4.2. Maintenance of Collateral Records................................................................4-2
         4.3. Release of Security Interest in Pledged Loans and Pledged Securities ............................4-2
         4.4. Collection and Servicing Rights..................................................................4-3
         4.5. Return of Collateral at End of Warehousing Commitment............................................4-4
         4.6. Delivery of Collateral Documents ................................................................4-4
5. CONDITIONS PRECEDENT........................................................................................5-1
         5.1. Initial Advance..................................................................................5-1
         5.2. Each Advance.....................................................................................5-3
         5.3. Force Majeure....................................................................................5-3
6. GENERAL REPRESENTATIONS AND WARRANTIES .....................................................................6-1
         6.1. Place of Business................................................................................6-1
         6.2. Organization; Good Standing; Subsidiaries .......................................................6-1
         6.3. Authorization and Enforceability.................................................................6-1
         6.4. Authorization and Enforceability of Guaranty.....................................................6-1
         6.5. Approvals........................................................................................6-2
         6.6. Financial Condition..............................................................................6-2
         6.7. Litigation.......................................................................................6-2
         6.8. Compliance with Laws ............................................................................6-2
         6.9. Regulation U.....................................................................................6-2
         6.10. Investment Company Act..........................................................................6-3
         6.11. Payment of Taxes................................................................................6-3
         6.12. Agreements......................................................................................6-3
         6.13. Title to Properties.............................................................................6-3
         6.14. ERISA...........................................................................................6-3
         6.15. No Retiree Benefits.............................................................................6-4
         6.16. Assumed Names...................................................................................6-4
         6.17. Servicing.......................................................................................6-4
7. AFFIRMATIVE COVENANTS ......................................................................................7-1
         7.1. Payment of Obligations...........................................................................7-1
         7.2.  Financial  Statements...........................................................................7-1
         7.3.  Other  Borrower   Reports.......................................................................7-2
         7.4. Maintenance of Existence; Conduct of Business ...................................................7-2
         7.5. Compliance with Applicable Laws..................................................................7-2
         7.6. Inspection of Properties and Books; Operational Reviews..........................................7-3
         7.7. Notice...........................................................................................7-3
         7.8. Payment of Debt, Taxes and Other Obligations.................................................... 7-3
         7.9. Insurance........................................................................................7-3
         7.10. Subordination of Certain Indebtedness.......................................................... 7-4
         7.11. Other Loan Obligations ........................................................................ 7-4
         7.12. ERISA ......................................................................................... 7-4
         7.13. Use of Proceeds of Warehousing Advances........................................................ 7-4
8. NEGATIVE COVENANTS ........................................................................................ 8-1
         8.1. Contingent Liabilities.......................................................................... 8-1
         8.2. Pledge of Servicing Contracts................................................................... 8-1
         8.3. Restrictions on Fundamental Changes .............................................................8-1
         8.4. Subsidiaries.....................................................................................8-1
         8.5. Deferral of Subordinated Debt................................................................... 8-1
         8.6. Loss of Eligibility............................................................................. 8-2
         8.7.  Accounting Changes  ............................................................................8-2
         8.8. Leverage Ratio.................................................................................. 8-2
         8.9. Minimum Tangible Net Worth...................................................................... 8-2
         8.10.  Liquidity Ratio............................................................................... 8-2
         8.11.  Loans to Loans  Ratio......................................................................... 8-2
         8.12. Distributions to Shareholders ..................................................................8-2
         8.13.  Transactions  with   Affiliates................................................................8-2
         8.14. Recourse Servicing Contracts....................................................................8-2
         8.15.   Gestation   Agreements........................................................................8-3
9. SPECIAL REPRESENTATIONS, WARRANTIES AND COVENANTS CONCERNING
         COLLATERAL........................................................................................... 9-1
         9.1. Special Representations and Warranties Concerning Warehousing
                  Collateral.................................................................................. 9-1
         9.2. Special Affirmative Covenants Concerning Warehousing Collateral................................. 9-3
         9.3. Special Negative Covenants Concerning Warehousing Collateral.................................... 9-3
10. DEFAULTS; REMEDIES .......................................................................................10-1
         10.1.  Events of Default.............................................................................10-1
         10.2.  Remedies..................................................................................... 10-2
         10.3.  Application of Proceeds.......................................................................10-5
         10.4. Lender Appointed Attorney-in-Fact..............................................................10-5
         10.5. Right of Set-Off...............................................................................10-5
11. MISCELLANEOUS.............................................................................................11-1
         11.1. Notices....................................................................................... 11-1
         11.2. Reimbursement Of Expenses; Indemnity.......................................................... 11-1
         11.3.  Financial  Information   .....................................................................11-2
         11.4. Terms Binding Upon Successors; Survival of Representations ................................... 11-2
         11.5. Assignment.................................................................................... 11-2
         11.6. Amendments.................................................................................... 11-2
         11.7. Governing Law................................................................................. 11-2
         11.8. Participations................................................................................ 11-2
         11.9. Relationship of the Parties....................................................................11-3
         11.10. Severability................................................................................. 11-3
         11.11. Consent to Credit References .................................................................11-3
         11.12. Counterparts................................................................................. 11-3
         11.13.  Entire  Agreement............................................................................11-3
         11.14. Consent to Jurisdiction.......................................................................11-4
         11.15. Waiver of Jury Trial......................................................................... 11-4
         11.16. Waiver of Punitive, Consequential, Special or Indirect Damages................................11-4
12. DEFINITIONS...............................................................................................12-1
         12.1. Defined Terms..................................................................................12-1
         12.2. Other Definitional Provisions; Terms of Construction...........................................12-10

</TABLE>

<PAGE>

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                                    EXHIBITS

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Exhibit A                  Request for Advance

Exhibit B                  Procedures and Documentation for Warehousing Mortgage
                           Loans

Exhibit C                  Schedule of Servicing Portfolio

Exhibit D                  Subsidiaries

Exhibit E                  Compliance Certificate

Exhibit F                  Lines of Credit

Exhibit G                  Assumed Names

Exhibit H                  Eligible Loans and Other Assets

<PAGE>

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

                    WAREHOUSING CREDIT AND SECURITY AGREEMENT

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

WAREHOUSING  CREDIT AND SECURITY  AGREEMENT,  dated as of March 29, 2002 between
MATRIX  CAPITAL  MARKETS,  INC.,  a  Colorado  corporation   ("Borrower"),   and
RESIDENTIAL FUNDING CORPORATION, a Delaware corporation ("Lender").

A.       Borrower has requested certain financing from Lender.

B.       Lender has agreed to provide that financing to Borrower  subject to the
         terms and conditions of this Agreement.

C.       The "Closing Date" for the transactions  contemplated by this Agreement
         is ____________.

NOW, THEREFORE, the parties to this Agreement agree as follows:

1.       THE CREDIT

1.1.     The Warehousing Commitment

On the terms and subject to the  conditions and  limitations of this  Agreement,
including Exhibit H, Lender agrees to make Warehousing Advances to Borrower from
the Closing Date to the  Business  Day  immediately  preceding  the  Warehousing
Maturity Date,  during which period  Borrower may borrow,  repay and reborrow in
accordance with the provisions of this Agreement.  The total aggregate principal
amount of all  Warehousing  Advances  outstanding at any one time may not exceed
the Warehousing  Commitment Amount.  While a Default or Event of Default exists,
Lender may refuse to make any additional  Warehousing  Advances to Borrower.  If
the  initial  Warehousing  Advance  has not been made  within 90 days  after the
Closing  Date,  the  Warehousing  Commitment  and  Lender's  obligation  to make
Warehousing  Advances  to  Borrower  under  this  Agreement  will  automatically
terminate,  and all Obligations (including any Obligations arising under Section
11.2) will automatically become due and payable, without presentment,  demand or
other  Notice or  requirements  of any  kind,  all of which  Borrower  expressly
waives.

1.2.     Expiration of Warehousing Commitment

The  Warehousing  Commitment  expires on the earlier of  ("Warehousing  Maturity
Date"):  (a) the earlier of (i) July 31,  2003,  as such date may be extended in
writing by Lender,  in its sole discretion,  or (ii) the first Business Day that
is 90 days or more after Lender gives Notice to Borrower of  termination  of the
Commitment, in each case on which date the Warehousing Commitment will expire of
its own term and the  Warehousing  Advances  will  become  due and  payable  and
without  the  necessity  of Notice or  action  by  Lender,  and (b) the date the
Warehousing Commitment is terminated and the Warehousing Advances become due and
payable under Section 10.2.

1.3.     Warehousing Note

Warehousing   Advances  under  the  Warehousing   Commitment  are  evidenced  by
Borrower's  promissory note,  payable to Lender on the form prescribed by Lender
("Warehousing  Note").  The term  "Warehousing  Note" as used in this  Agreement

<PAGE>

includes all amendments,  restatements, renewals or replacements of the original
Warehousing Note and all  substitutions  for it. All terms and provisions of the
Warehousing Note are incorporated into this Agreement.

                                End of Article 1

<PAGE>

2.       PROCEDURES FOR OBTAINING ADVANCES

2.1.     Warehousing Advances

To obtain a Warehousing  Advance under this Agreement,  Borrower must deliver to
Lender  either a completed and signed  request for a Warehousing  Advance on the
then current form approved by Lender, or an Electronic Advance Request, together
with a list of the  Mortgage  Loans for which the  request  is being  made and a
signed  RFConnects  Pledge  Agreement  sent by facsimile  ("Warehousing  Advance
Request"),  not later than 1  Business  Day  before  the  Business  Day on which
Borrower  desires  the  Warehousing  Advance.  Subject  to  the  delivery  of  a
Warehousing  Advance Request and the satisfaction of the conditions set forth in
Sections  5.1 and 5.2,  Borrower  may obtain a  Warehousing  Advance  under this
Agreement upon  compliance  with the procedures set forth in this Section and in
the  applicable  Exhibit  B,  including  delivery  to  Lender  of  all  required
Collateral  Documents.  Lender's current form of Warehousing  Advance Request is
set forth in  Exhibit  A. Upon not less than 3 Business  Days'  prior  Notice to
Borrower, Lender may modify its form of Warehousing Advance Request,  RFConnects
Pledge  Agreement and any other Exhibit or document  referred to in this Section
to  conform  to  current  legal  requirements  or Lender  practices  and,  as so
modified, those Exhibits and documents will become part of this Agreement.

                                End of Article 2

<PAGE>

3.       INTEREST, PRINCIPAL AND FEES

3.1.     Interest

3.1  (a) Except as  provided in Sections  3.1(d) and 3.1(e),  Borrower  must pay
         interest on the unpaid amount of each Warehousing Advance from the date
         the  Warehousing  Advance  is  made  until  it is  paid  in full at the
         Interest Rate specified in Exhibit H.

3.1  (b) As long as no Default or Event of Default exists,  Borrower is entitled
         to receive a benefit in the form of an "Earnings Credit" on the portion
         of the Eligible  Balances  maintained  in time deposit  accounts with a
         Designated  Bank,  and Borrower is entitled to receive a benefit in the
         form of an "Earnings Allowance" on the portion of the Eligible Balances
         maintained  in demand  deposit  accounts  with a Designated  Bank.  Any
         Earnings  Allowance will be used first and any Earnings  Credit will be
         used  second  as  a  credit  against  Miscellaneous  Fees  and  Charges
         (including Designated Bank Charges),  and against other fees payable to
         Lender under this  Agreement,  including  Warehousing  Fees, Wire Fees,
         Non-Usage  Fees,  and Loan Package  Fees,  and may be used, at Lender's
         option,  to reduce accrued  interest.  Any Earnings  Allowance not used
         during the month in which the benefit was received will be  accumulated
         and must be used  within 6 months of the month in which the benefit was
         received.  As long as no  Default  or  Event  of  Default  exists,  any
         Earnings  Credit  not used  during the month in which the  benefit  was
         received  will be used to  provide  a cash  benefit  to  Borrower.  Any
         Earnings Credit retained by Lender as a result of a Default or Event of
         Default will be applied to the payment of Borrower's Obligations in the
         order Lender determines in its sole discretion. The Earnings Credit and
         the Earnings  Allowance  for any month will be  determined by Lender in
         its sole  discretion  and Lender's  determination  of those  amounts is
         conclusive  and binding  absent  manifest  error.  In no event will the
         benefit received by Borrower exceed the Depository Benefit.

         Either party to this Agreement may terminate the benefits  provided for
         in this Section  effective  immediately upon Notice to the other party,
         if the terminating party determines (which  determination is conclusive
         and binding on the other party, absent manifest error) at any time that
         any  applicable  law,  rule,   regulation,   order  or  decree  or  any
         interpretation or administration of such law, rule,  regulation,  order
         or decree by any governmental authority charged with its interpretation
         or  administration,  or  compliance  by such party with any  request or
         directive  (whether  or not  having  the  force  of  law)  of any  such
         authority,  makes it unlawful or  impossible  for the party sending the
         Notice to  continue to offer or receive the  benefits  provided  for in
         this Section.  No Notice is required for a termination of benefits as a
         result of a Default or Event of Default.

3.1 (c)  Lender  computes  interest  on the basis of the  actual  number of days
         elapsed in a year of 360 days.  Borrower  must pay interest  monthly in
         arrears,  not later than 9 days after the date of Lender's  invoice or,
         if  applicable,  2 days  after the date of  Lender's  account  analysis
         statement,  commencing  with the first month following the Closing Date
         and on the Warehousing Maturity Date.

3.1 (d)  If, for any reason  Borrower  repays a Warehousing  Advance on the same
         day that it was made by  Lender,  Borrower  agrees  to pay to Lender an
         administrative  fee equal to 1 day of interest  on that  Advance at the
         Interest  Rate that would  otherwise  be  applicable  under  Exhibit H.
         Borrower  must pay all  administrative  fees  within 9 days the date of
         Lender's  invoice  or,  if  applicable,  within  2 days of the  date of
         Lender's account analysis statement.

<PAGE>

3.1 (e)  After an Event of Default occurs and upon Notice to Borrower by Lender,
         the unpaid amount of each Warehousing Advance will bear interest at the
         Default Rate until paid in full.

3.1 (f)  Lender will adjust the rates of interest provided for in this Agreement
         as of the  effective  date  of each  change  in the  applicable  index.
         Lender's  determination  of such  rates of  interest  as of any date of
         determination are conclusive and binding, absent manifest error.

3.2.     Interest Limitation

Lender does not intend, by reason of this Agreement, the Warehousing Note or any
other Loan Document,  to receive  interest in excess of the amount  permitted by
applicable  law.  If Lender  receives  any  interest  in  excess  of the  amount
permitted by applicable  law,  whether by reason of acceleration of the maturity
of this  Agreement,  the  Warehousing  Note or otherwise,  Lender will apply the
excess to the unpaid  principal  balance of the Warehousing  Advances and not to
the payment of interest.  If all Warehousing Advances have been paid in full and
the Warehousing Commitment has expired or has been terminated, Lender will remit
any excess to  Borrower.  This  Section  controls  every other  provision of all
agreements  between Borrower and Lender and is binding upon and available to any
subsequent holder of the Warehousing Note

3.3.     Principal Payments

3.3 (a)  Borrower  must pay  Lender  the  outstanding  principal  amount  of all
         Warehousing Advances on the Warehousing Maturity Date.

3.3 (b)  Except as provide in Section 3.1(e), Borrower may prepay any portion of
         the Warehousing Advances without premium or penalty at any time.

3.3 (c)  Borrower  must pay to Lender,  without the necessity of prior demand or
         Notice from Lender, and Borrower authorizes Lender to cause the Funding
         Bank to charge  Borrower's  Operating  Account  for,  the amount of any
         outstanding  Warehousing  Advance against a specific Pledged Asset upon
         the earliest occurrence of any of the following events:

        (1)  One (1) Business Day elapses  from the date a  Warehousing  Advance
             was  made if the  Pledged  Loan to be  funded  by that  Warehousing
             Advance is not acquired.
        (2)  Ten (10)  Business  Days elapse  without the return of a Collateral
             Document  delivered by Lender to Borrower under a Trust Receipt for
             correction or completion.

        (3)  On the date on which a  Pledged  Loan is  determined  to have  been
             originated based on untrue, incomplete or inaccurate information or
             otherwise  to be subject  to fraud,  whether  or not  Borrower  had
             knowledge  of  the   misrepresentation,   incomplete  or  incorrect
             information  or fraud,  on the date on which  Borrower  knows,  has
             reason to know,  or receives  Notice from  Lender,  that (A) one or
             more of the  representations  and warranties set forth in Article 9
             were  inaccurate or incomplete in any material  respect on any date
             when made or deemed made,  or (B) Borrower has failed to perform or
             comply with any covenant, term or condition set forth in Article 9.

        (4)  On the  date  the  Pledged  Loan or a Lien  prior  to the  Mortgage
             securing  repayment of the Pledged Loan is defaulted and remains in
             default for a period of 60 days or more.

<PAGE>

        (5)  Upon the sale,  other  disposition  or payment of any Pledged Asset
             or, with respect to a Pledged Loan included in an Eligible Mortgage
             Pool,  upon the sale or other  disposition  of the  related  Agency
             Security.

        (6)  One (1) Business Day  immediately  following  the date  foreclosure
             proceedings are commenced with respect to a Pledged Loan

3.3 (d)  Upon telephonic or written Notice to Borrower by Lender,  Borrower must
         pay to Lender, and Borrower authorizes Lender to cause the Funding Bank
         to  charge  Borrower's   Operating  Account  for,  the  amount  of  any
         outstanding  Warehousing  Advance against a specific Pledged Asset upon
         the earliest occurrence of any of the following events:

        (1)       For any Pledged Loan, the Warehouse Period elapses.

        (2)       Forty-five  (45) days elapse from the date a Pledged  Loan was
                  delivered to an Investor or Approved Custodian for examination
                  and purchase or for inclusion in a Mortgage Pool,  without the
                  purchase  being  made  or  an  Eligible  Mortgage  Pool  being
                  initially  certified,  or upon  rejection of a Pledged Loan as
                  unsatisfactory by an Investor or Approved Custodian.

        (3)       With  respect  to any  Pledged  Loan,  any  of the  Collateral
                  Documents,  upon examination by Lender, are found not to be in
                  compliance  with the  requirements  of this  Agreement  or the
                  related Purchase Commitment.

3.3 (e)   In addition to the payments  required pursuant to Sections 3.3 (c) and
          3.3(d),  if the  principal  amount of any  Pledged  Loan is prepaid in
          whole or in part while a Warehousing  Advance is  outstanding  against
          the Pledged Loan,  Borrower must pay to Lender,  without the necessity
          of prior demand or Notice from Lender, and Borrower  authorizes Lender
          to cause the Funding Bank to charge Borrower's  Operating Account for,
          the amount of the  prepayment,  to be applied  against the Warehousing
          Advance.

3.3 (f)   The proceeds of the sale or other  disposition  of Pledged Assets must
          be paid directly to the Cash  Collateral  Account.  Borrower must give
          Notice to Lender in writing or by telephone or by RFConnects  Delivery
          to Lender (and if by telephone,  followed  promptly by written Notice)
          of the Pledged  Assets for which  proceeds  have been  received.  Upon
          receipt of Borrower's Notice, Lender will apply any proceeds deposited
          into the Cash  Collateral  Account to the  payment of the  Warehousing
          Advance  related to the Pledged  Assets  identified by Borrower in its
          Notice,  and those  Pledged  Assets  will be  considered  to have been
          redeemed  from  pledge.  Lender is  entitled  to rely upon  Borrower's
          affirmation  that deposits in the Cash  Collateral  Account  represent
          payments  from  Investors  for  the  purchase  of the  Pledged  Assets
          specified  by Borrower in its Notice.  If the payment from an Investor
          for the  purchase  of  Pledged  Assets  is less  than the  outstanding
          Warehousing  Advance against the Pledged Assets identified by Borrower
          in its Notice,  Borrower must pay to Lender,  and Borrower  authorizes
          Lender  to cause  the  Funding  Bank to  charge  Borrower's  Operating
          Account in an amount equal to that  deficiency.  As long as no Default
          or Event of Default exists,  Lender will return to Borrower any excess
          payment from an Investor for Pledged Assets.

3.3 (g)   Lender  reserves the right to revalue any Pledged Loan.  Borrower must
          pay to Lender,  without the  necessity  of prior demand or Notice from
          Lender,  and Borrower  authorizes  Lender to cause the Funding Bank to
          charge Borrower's Operating Account for, any amount required after any
          such  revaluation  to reduce the principal  amount of the  Warehousing
          Advance  outstanding  against the  revalued  Pledged Loan to an amount
          equal to the Advance  Rate for the  applicable  type of Eligible  Loan
          multiplied by the Fair Market Value of the Mortgage Loan.

<PAGE>

3.4.     Non-Usage Fees

At the  end of  each  Calendar  Quarter  during  the  term  of  this  Agreement,
commencing  with the Calendar  Quarter  beginning  on July 1, 2002,  Lender will
determine the average usage of the  Warehousing  Commitment by  calculating  the
arithmetic  daily average of the Warehousing  Advances  outstanding  during such
Calendar  Quarter ("Used  Portion").  Lender will then subtract the Used Portion
from  the  arithmetic  daily  average  of  the  Warehousing   Commitment  Amount
outstanding during such Calendar Quarter,  and the result, if positive,  will be
known as the "Unused  Portion."  Borrower  must pay to Lender a fee  ("Non-Usage
Fee") in the  amount  of 0.125%  per annum of the  Unused  Portion  during  such
Calendar Quarter.  The Non-Usage Fee is payable  quarterly,  in arrears.  Lender
computes  the  Non-Usage  Fee on the basis of the actual  number of days in each
Calendar  Quarter and a year of 360 days.  Borrower  must pay the  Non-Usage Fee
within 9 days after the date of  Lender's  invoice or, if  applicable,  within 2
days after the date of  Lender's  account  analysis  statement.  If the date set
forth in clause (a) of the definition of  Warehousing  Maturity Date occurs on a
day  other  than the  last  day of a  Calendar  Quarter,  Borrower  must pay the
prorated portion of the Non-Usage Fee due from the beginning of the then current
Calendar  Quarter to and  including  that date.  Borrower  is not  entitled to a
reduction in the amount of the Non-Usage Fee if (a) the  Warehousing  Commitment
Amount is reduced or (b) the Warehousing Commitment is terminated at the request
of Borrower or as a result of an Event of Default. If the Warehousing Commitment
terminates  at the  request of  Borrower  or as a result of an Event of Default,
Borrower must pay, on the date of termination,  a Non-Usage Fee in the amount of
0.125%  per annum of the  Warehousing  Commitment  Amount in effect  immediately
prior to the date of termination, for the period from the date of termination to
and including the date set forth in clause (a) of the  definition of Warehousing
Maturity  Date.  Lender's  determination  of the Non-Usage Fee for any period is
conclusive and binding, absent manifest error.

3.5.     Loan Package Fees, Wire Fees, Warehousing Fees

At the time of each Warehousing  Advance against an Eligible Loan, Borrower will
incur a loan package fee ("Loan Package Fee") and a wire fee ("Wire Fee").  Loan
Package Fees and Wire Fees may, at Lender's discretion,  be billed separately or
combined into a single  warehousing fee ("Warehousing  Fee").  Borrower must pay
all Loan Package Fees, Wire Fees or Warehousing  Fees in the amount set forth in
Exhibit H within 9 days after the date of Lender's  invoice  or, if  applicable,
within 2 days after the date of Lender's account analysis statement.

3.6.     Miscellaneous Fees and Charges

Borrower must reimburse Lender for all Miscellaneous Fees and Charges.  Borrower
must pay all  Miscellaneous  Fees and  Charges  within 9 days  after the date of
Lender's  invoice  or, if  applicable,  within 2 days after the date of Lender's
account analysis statement.

3.7.     Overdraft Advances

If, under the  authorization  given by Borrower in the Funding Bank Agreement or
pursuant  to this  Agreement,  Lender  debits  Borrower's  Operating  Account or
directs  the  Funding  Bank to honor an item  presented  against  the  Operating
Account, and that debit or direction results in an overdraft, Lender may make an
additional  Warehousing  Advance to fund that overdraft  ("Overdraft  Advance").
Borrower must pay (a) the outstanding  amount of any Overdraft  Advance within 1
Business  Day after the date of the  Overdraft  Advance and (b)  interest on the
amount of the Overdraft  Advance at a rate per annum equal to the Bank One Prime
Rate plus 2% within 9 days after the date of Lender's invoice or, if applicable,
within 2 days after the date of Lender's account analysis statement.

<PAGE>

3.8.      Method of Making Payments

3.8 (a)   Unless otherwise  specified in this Agreement,  Borrower must make all
          payments  under this  Agreement  to Lender by the close of business on
          the date when due unless the date is not a  Business  Day.  If the due
          date is not a  Business  Day,  payment is due on,  and  interest  will
          accrue to, the next Business  Day.  Borrower must make all payments in
          United States dollars in immediately  available  funds  transferred by
          wire to accounts designated by Lender.

3.8 (b)   Borrower  authorizes  Lender  to  cause  the  Funding  Bank to  charge
          Borrower's  Operating Account for any interest or fees due and payable
          to Lender on the 9th day after  the date of  Lender's  invoice  or, if
          applicable, on the 2nd day after the date of Lender's account analysis
          statement,  without  the  necessity  of prior  demand or  Notice  from
          Lender.

3.8 (c)   While a Default or Event of Default exists, Borrower authorizes Lender
          to cause the Funding Bank to charge  Borrower's  Operating Account for
          any  Obligations  due and payable to Lender,  without the necessity of
          prior demand or Notice from Lender.

                                End of Article 3

<PAGE>

4.       COLLATERAL

4.1.     Grant of Security Interest

As security for the payment of the  Warehousing  Note and for the performance of
all of Borrower's Obligations,  Borrower grants a security interest to Lender in
all of Borrower's  right,  title and interest in and to the following  described
property ("Collateral"):

4.1  (a)  All amounts advanced by Lender to or for the account of Borrower under
          this  Agreement to fund a Mortgage  Loan until that  Mortgage  Loan is
          closed and those funds disbursed.

4.1  (b)  All Mortgage  Loans,  including  all  Mortgage  Notes,  Mortgages  and
          Security Agreements  evidencing or securing those Mortgage Loans, that
          are delivered or caused to be delivered to Lender (including  delivery
          to a third party on behalf of Lender), or that otherwise come into the
          possession,  custody or control of Lender  (including the  possession,
          custody  or  control  of a third  party on behalf of  Lender)  for the
          purpose of pledge or in respect of which Lender has made a Warehousing
          Advance under this Agreement (collectively, "Pledged Loans").

4.1  (c)  All Mortgage-backed Securities that are created in whole or in part on
          the  basis of  Pledged  Loans or that are  delivered  or  caused to be
          delivered to Lender (including  delivery to a third party on behalf of
          Lender),  or that  otherwise  come  into the  possession,  custody  or
          control of Lender  (including the possession,  custody or control of a
          third party on behalf of Lender) or that are  registered by book-entry
          in the name of Lender  (including  registration in the name of a third
          party on behalf of Lender), in each case for the purpose of pledge, or
          in  respect  of which an  Advance  has been made by Lender  under this
          Agreement (collectively, "Pledged Securities").

4.1  (d)  All private mortgage insurance and all commitments issued by the VA or
          FHA to insure or guarantee any Mortgage  Loans included in the Pledged
          Loans;  all Purchase  Commitments  held by Borrower  covering  Pledged
          Loans or Pledged Securities, and all proceeds from the sale of Pledged
          Loans or Pledged  Securities,  all agreements  under which any Pledged
          Loans  were  acquired  or are  sold  by  Borrower;  and  all  personal
          property, contract rights, servicing rights or contracts and servicing
          fees and income or other  proceeds,  amounts and  payments  payable to
          Borrower  as  compensation  or  reimbursement,   accounts,   payments,
          intangibles and general  intangibles of every kind relating to Pledged
          Loans,  Pledged Securities,  Purchase  Commitments,  VA commitments or
          guaranties,   FHA   commitments,   private   mortgage   insurance  and
          commitments,  and all  other  documents  or  instruments  relating  to
          Pledged  Loans and  Pledged  Securities,  including  any  interest  of
          Borrower in any fire,  casualty or hazard  insurance  policies and any
          awards  made by any public  body or decreed by any court of  competent
          jurisdiction  for a taking or for  degradation of value in any eminent
          domain proceeding as the same relate to Pledged Loans.

4.1  (e)  All  escrow  accounts,   documents,   instruments,   files,   surveys,
          certificates,  correspondence,  appraisals,  computer programs, tapes,
          discs, cards, accounting records (including all information,  records,
          tapes,  data,  programs,  discs and cards  necessary or helpful in the
          administration  or servicing of the Collateral) and other  information
          and data of Borrower relating to the Collateral.

4.1  (f)  All cash,  whether now  existing  or  acquired  after the date of this
          Agreement,  delivered to or otherwise in the possession of Lender, the
          Funding Bank or Lender's  agent,  bailee or custodian or designated on
          the books and records of  Borrower as assigned  and pledged to Lender,
          including all cash  deposited in the Cash  Collateral  Account and the
          Wire Disbursement Account.

<PAGE>

4.1  (g)  All Hedging  Arrangements  related to the Collateral ("Pledged Hedging
          Arrangements")   and  Borrower's   accounts  in  which  those  Hedging
          Arrangements  are held  ("Pledged  Hedging  Accounts"),  including all
          rights to payment arising under the Pledged Hedging  Arrangements  and
          the Pledged Hedging  Accounts,  except that Lender's security interest
          in the  Pledged  Hedging  Arrangements  and Pledged  Hedging  Accounts
          applies only to benefits,  including rights to payment, related to the
          Collateral.

4.1  (h)  All  cash and  non-cash  proceeds  of the  Collateral,  including  all
          dividends,  distributions and other rights in connection with, and all
          additions to,  modifications of and replacements  for, the Collateral,
          and  all  products  and  proceeds  of the  Collateral,  together  with
          whatever is receivable or received when the  Collateral or proceeds of
          Collateral are sold,  collected,  exchanged or otherwise  disposed of,
          whether such  disposition is voluntary or  involuntary,  including all
          rights to payment  with  respect to any cause of action  affecting  or
          relating to the Collateral or proceeds of Collateral.

4.2.     Maintenance of Collateral Records

As long as the  Warehousing  Commitment  is  outstanding  or  there  remain  any
Obligations to be paid or performed under this Agreement or under any other Loan
Document, Borrower must preserve and maintain, at its chief executive office and
principal place of business or in a regional  office  approved by Lender,  or in
the office of a computer  service  bureau  engaged by Borrower  and  approved by
Lender and, upon request,  make available to Lender the originals,  or copies in
any case where the originals have been delivered to Lender or to an Investor, of
the Mortgage Notes, Mortgages and Security Agreements included in Pledged Loans,
Mortgage-backed  Securities delivered to Lender as Pledged Securities,  Purchase
Commitments,  and all related Mortgage Loan documents and  instruments,  and all
files, surveys,  certificates,  correspondence,  appraisals,  computer programs,
tapes, discs, cards,  accounting records and other information and data relating
to the Collateral.

4.3.      Release of Security Interest in Pledged Loans and Pledged Securities

4.3  (a)  Except as  provided  in  Section  4.3 (b),  Lender  will  release  its
          security  interest in the Pledged Loans only against payment to Lender
          of the Release  Amount in  connection  with those  Pledged  Loans.  If
          Pledged Loans are  transferred  to a pool custodian or an Investor for
          inclusion  in a Mortgage  Pool and Lender's  security  interest in the
          Pledged Loans included in the Mortgage Pool is not released before the
          issuance  of  the   related   Mortgage-backed   Security,   then  that
          Mortgage-backed Security, when issued, is a Pledged Security, Lender's
          security interest  continues in the Pledged Loans backing that Pledged
          Security and Lender is entitled to possession of the Pledged  Security
          in the manner provided in this Agreement.

4.3  (b)  If Pledged Loans are transferred to an Approved Custodian and included
          in an  Eligible  Mortgage  Pool,  Lender's  security  interest  in the
          Pledged Loans included in the Eligible  Mortgage Pool will be released
          upon the delivery of the Agency Security to Lender (including delivery
          to or  registration  in the name of a third party on behalf of Lender)
          and that Agency  Security  is a Pledged  Security.  Lender's  security
          interest  in that  Pledged  Security  will be  released  only  against
          payment  to  Lender  of the  Release  Amount  in  connection  with the
          Mortgage Loans backing that Pledged Security.

4.3  (c)  Lender has the exclusive right to possession of all Pledged Securities
          or, if Pledged  Securities are issued in book-entry  form or issued in
          certificated  form and  delivered to a clearing  corporation  (as that
          term is defined in the Uniform  Commercial  Code of  Minnesota) or its

<PAGE>

          nominee,   Lender  has  the  right  to  have  the  Pledged  Securities
          registered in the name of a securities  intermediary  (as that term is
          defined in the Uniform  Commercial  Code of  Minnesota)  in an account
          containing  only  customer  securities  and  credited to an account of
          Lender. Lender has no duty or obligation to deliver Pledged Securities
          to an Investor or to credit  Pledged  Securities  to the account of an
          Investor or an Investor's  designee  except against  payment for those
          Pledged Securities.  Borrower  acknowledges that Lender may enter into
          one or more standing arrangements with securities  intermediaries with
          respect to Pledged  Securities  issued in book entry form or issued in
          certificated  form and  delivered  to a  clearing  corporation  or its
          designee,  under which the Pledged  Securities  are  registered in the
          name of the securities intermediary, and Borrower agrees, upon request
          of Lender,  to execute and deliver to those securities  intermediaries
          Borrower's written concurrence in any such standing arrangements.

4.3  (d)  If no  Default  or Event of  Default  occurs,  Borrower  may  redeem a
          Pledged Loan or Pledged  Security from Lender's  security  interest by
          notifying  Lender of its  intention  to  redeem  the  Pledged  Loan or
          Pledged  Security  from  pledge and either (1)  paying,  or causing an
          Investor to pay, to Lender,  for  application  as a prepayment  on the
          principal  balance of the  Warehousing  Note,  the  Release  Amount in
          connection  with the Pledged  Loan or the Pledged  Loans  backing that
          Pledged  Security,  or (2) delivering  substitute  Collateral that, in
          addition to being acceptable to Lender in its sole  discretion,  will,
          when included with the remaining  Collateral,  result in a Warehousing
          Collateral  Value of all  Collateral  held by Lender  that is at least
          equal to the aggregate outstanding Warehousing Advances.

4.3  (e)  After a  Default  or Event of  Default  occurs,  Lender  may,  with no
          liability to Borrower or any Person,  continue to release its security
          interest in any Pledged Loan or Pledged  Security  against  payment of
          the Release  Amount for that  Pledged  Loan or for the  Pledged  Loans
          backing that Pledged Security.

4.3  (f)  The amount to be paid by  Borrower  to obtain the  release of Lender's
          security interest in a Pledged Loan ("Release  Amount") will be (1) in
          connection  with the sale of a Pledged Loan by  Borrower,  the payment
          required  in any bailee  letter  pursuant to which  Lender  ships that
          Pledged Loan to an Investor,  Approved  Custodian,  pool  custodian or
          other  party,  (2) in  connection  with the sale of a Pledged  Loan by
          Lender while an Event of Default exists,  the amount paid to Lender in
          a  commercially  reasonable  disposition  of that Pledged Loan and (3)
          otherwise,  until an Event of Default occurs,  the principal amount of
          the Advance  outstanding against the Pledged Loan.

4.4.      Collection and Servicing Rights

4.4  (a)  If no Event of Default  exists,  Borrower  may service and receive and
          collect  directly  all sums  payable  to  Borrower  in  respect of the
          Collateral other than proceeds of any sale of Collateral. All proceeds
          of any sale of Collateral must be paid directly to the Cash Collateral
          Account for application as provided in this Agreement.

4.4  (b)  After an Event of  Default,  Lender or its  designee  is  entitled  to
          service  and  receive  and  collect  all sums  payable to  Borrower in
          respect of the Collateral, and in such case (1) Lender or its designee
          in its  discretion  may,  in its own name,  in the name of Borrower or
          otherwise,  demand,  sue for, collect or receive any money or property
          at any time payable or receivable on account of or in exchange for any
          of the Collateral, but Lender has no obligation to do so, (2) Borrower
          must, if Lender requests it to do so, hold in trust for the benefit of
          Lender  and  immediately  pay to Lender at its  office  designated  by
          Notice,  all amounts received by Borrower upon or in respect of any of
          the  Collateral,  advising  Lender as to the source of those funds and
          (3) all amounts so received and collected by Lender will be held by it
          as part of the Collateral.

<PAGE>

4.5.     Return of Collateral at End of Warehousing Commitment

If (a) the  Warehousing  Commitment has expired or been  terminated,  and (b) no
Warehousing Advances,  interest or other Obligations are outstanding and unpaid,
Lender will release its security interest and will deliver all Collateral in its
possession  to Borrower at Borrower's  expense.  Borrower's  acknowledgement  or
receipt for any Collateral released or delivered to Borrower under any provision
of this  Agreement  is a complete and full  acquittance  for the  Collateral  so
returned, and Lender is discharged from any liability or responsibility for that
Collateral.

4.6.  Delivery of Collateral Documents

4.6  (a)  Lender may deliver  documents  relating to the  Collateral to Borrower
          for correction or completion under a Trust Receipt.

4.6  (b)  If no Default or Event of Default exists, upon delivery by Borrower to
          Lender of shipping  instructions pursuant to the applicable Exhibit B,
          Lender will deliver the Mortgage  Notes  evidencing  Pledged  Loans or
          Pledged Securities,  together with all related loan documents and pool
          documents  previously received by Lender under the requirements of the
          applicable Exhibit Q to the designated  Investor or Approved Custodian
          or to another party designated by Borrower and acceptable to Lender in
          its sole discretion.

4.6  (c)  If a Default or Event of Default exists, Lender may, without liability
          to Borrower or any other Person,  continue to deliver Pledged Loans or
          Pledged Securities,  together with all related loan documents and pool
          documents  in Lender's  possession,  to the  applicable  Investor,  or
          Approved  Custodian or to another  party  acceptable  to Lender in its
          sole discretion.

                                End of Article 4

<PAGE>

5.       CONDITIONS PRECEDENT

5.1.     Initial Advance

The effectiveness of this Agreement is subject to the satisfaction,  in the sole
discretion of Lender, of the following conditions precedent:

5.1  (a)  Lender must receive the following,  all of which must be  satisfactory
          in form and content to Lender, in its sole discretion:

          (1)  The  Warehousing   Note  and  this  Agreement  duly  executed  by
               Borrower.

          (2)  Borrower's  articles or  certificate of  incorporation,  together
               with all  amendments,  as certified by the  Secretary of State of
               Colorado,   Borrower's  bylaws,  together  with  all  amendments,
               certified by the  corporate  secretary or assistant  secretary of
               Borrower,  and certificates of good standing dated within 30 days
               of the date of this Agreement.

          (3)  A resolution  of the board of  directors of Borrower  authorizing
               the execution, delivery and performance of this Agreement and the
               other Loan Documents,  each  Warehousing  Advance Request and all
               other  agreements,  instruments  or  documents to be delivered by
               Borrower under this Agreement.

          (4)  A  certificate  as to  the  incumbency  and  authenticity  of the
               signatures of the officers of Borrower  executing  this Agreement
               and the other Loan  Documents,  and of the officers and employees
               of Borrower  delivering each Warehousing  Advance Request and all
               other agreements,  instruments or documents to be delivered under
               this Agreement (Lender being entitled to rely on that certificate
               until a new incumbency certificate has been furnished to Lender).

          (5)  Assumed  Name  Certificates  dated  within 30 days of the date of
               this  Agreement  for any  assumed  name used by  Borrower  in the
               conduct of its business.

          (6)  Fiscal  year-end  financial   statements  of  Borrower  (and,  if
               applicable,  Borrower's  Subsidiaries,  on a consolidated  basis)
               containing  a balance  sheet as of December  31, 2001 and related
               statements  of income for the period  ended on that date,  all in
               reasonable detail and prepared in accordance with GAAP applied on
               a basis consistent with prior periods.

          (7)  Interim  financial  statements of Borrower  (and, if  applicable,
               Borrower's  Subsidiaries,  on a consolidated  basis) containing a
               balance sheet as of January 31, 2002, and a related  statement of
               income,  for the period ended on that date prepared in accordance
               with GAAP  applied on a basis  consistent  with  Borrower's  most
               recent financial statements.

          (8)  The Guaranty,  on the form prescribed by Lender, duly executed by
               the Guarantor.

          (9)  The  Guarantor's   articles  or  certificate  of   incorporation,
               together  with all  amendments,  as certified by the Secretary of
               State of Colorado, bylaws certified by the corporate secretary of
               the Guarantor and  certificates  of good standing dated within 30
               days of the date of this Agreement.

<PAGE>

          (10) A  resolution  of  the  board  of  directors  of  the  Guarantor,
               certified  as of the  date  of  the  Agreement  by its  corporate
               secretary, authorizing the execution, delivery and performance of
               the Guaranty, and all other agreements,  instruments or documents
               to be delivered by the  Guarantor  under this  Agreement.

          (11) A  certificate  as to  the  incumbency  and  authenticity  of the
               signatures  of  the  officers  of  the  Guarantor  executing  the
               Guaranty and all other agreements, instruments or documents to be
               delivered under this Agreement  (Lender being entitled to rely on
               that  certificate  until a new  incumbency  certificate  has been
               furnished to Lender).

          (12) Fiscal   year-end   financial   statements  of  Parent  (and,  if
               applicable,  Parent's  Subsidiaries,  on  a  consolidated  basis)
               containing  a balance  sheet as of December  31, 2001 and related
               statements of income,  changes in  stockholders'  equity and cash
               flows for the period ended on that date, all in reasonable detail
               and  prepared  in  accordance   with  GAAP  applied  on  a  basis
               consistent  with prior periods and  accompanied by (A) an opinion
               as  to  those   financial   statements   in  form  and  substance
               satisfactory  to Lender and  prepared  by  independent  certified
               public  accountants of recognized  standing  acceptable to Lender
               and (B) any  management  letters,  management  reports  or  other
               supplementary  comments or reports delivered by those accountants
               to Parent or its Board of directors.

          (13) A  favorable  written  opinion  of counsel  to  Borrower  and the
               Guarantor  (or of separate  counsel at the option of Borrower and
               the  Guarantor),  addressed to Lender and dated as of the date of
               this  Agreement,  covering such matters as Lender may  reasonably
               request.

          (14) Uniform  Commercial  Code, tax lien and judgment  searches of the
               appropriate  public records for Borrower that do not disclose the
               existence of any prior Lien on the Collateral other than in favor
               of Lender or as permitted under this Agreement.

          (15) Copies of  Borrower's  errors and omissions  insurance  policy or
               mortgage  impairment  insurance policy, and blanket bond coverage
               policy, or certificates in lieu of policies,  showing  compliance
               by Borrower as of the date of this  Agreement with the provisions
               of Section 7.9.

          (16) A  fully-executed  Funding Bank  Agreement  and evidence that all
               accounts into which Warehousing Advances will be funded have been
               established at the Funding Bank.

          (17) Receipt by Lender of any fees due on the date of this Agreement.

          (18) Receipt  by  Lender  of  the  December  31,  2001   consolidating
               statement of Guarantor.

5.1  (b)  If  Borrower  is   indebted  to  any  of  its   directors,   officers,
          shareholders  or Affiliates,  or to the  Guarantor,  as of the date of
          this Agreement,  which  indebtedness has a term of more than 1 year or
          is in excess of $250,000, the Person to whom Borrower is indebted must
          have  executed  a  Subordination  of  Debt  Agreement,   on  the  form
          prescribed  by Lender;  and Lender must have received an executed copy
          of that  Subordination  of Debt Agreement,  certified by the corporate
          secretary or  assistant  secretary of Borrower to be true and complete
          and in  full  force  and  effect  as of the  date  of the  Warehousing
          Advance.

<PAGE>

5.1  (c)  Borrower  must not have incurred any material  liabilities,  direct or
          contingent,  other than in the ordinary course of its business,  since
          the Audited Statement Date.

5.2.     Each Advance

The  obligation  of Lender to make the initial and each  subsequent  Warehousing
Advance is subject to the satisfaction,  in the sole discretion of Lender, as of
the date of each Warehousing  Advance,  of the following  additional  conditions
precedent:

5.2  (a)  Borrower must have delivered to Lender the Warehousing Advance Request
          and Collateral  Documents required by, called for under, and must have
          satisfied  the  procedures  set forth in,  Article 2 and the  Exhibits
          described  in that  Article.  All items  delivered  to Lender  must be
          satisfactory to Lender in form and content,  and Lender may reject any
          item that does not satisfy the  requirements  of this  Agreement or of
          the related Purchase Commitment.

5.2  (b)  Lender must have received evidence satisfactory to it as to the making
          or  continuation  of any book entry or the due filing and recording in
          all  appropriate  offices  of  all  financing   statements  and  other
          instruments  necessary to perfect the  security  interest of Lender in
          the Collateral  under the Uniform  Commercial Code or other applicable
          law.

5.2  (c)  The  representations and warranties of Borrower contained in Article 6
          and Article 9 must be accurate and  complete in all material  respects
          as if made on and as of the date of each Warehousing Advance.

5.2  (d)  Borrower  must have  performed  all  agreements  to be performed by it
          under  this  Agreement,  and  after  giving  effect  to the  requested
          Warehousing  Advance,  no Default or Event of Default  may exist under
          this Agreement.

5.2  (e)  The Guarantor  must have  performed all  agreements to be performed by
          the Guarantor under the Guaranty.

Delivery  of a  Warehousing  Advance  Request  by  Borrower  will  be  deemed  a
representation  by Borrower that all  conditions  set forth in this Section have
been satisfied as of the date of the Warehousing Advance.

5.3.     Force Majeure

Notwithstanding  Borrower's  satisfaction  of the  conditions  set forth in this
Agreement,  Lender has no obligation to make a Warehousing  Advance if Lender is
prevented from obtaining the funds necessary to make a Warehousing  Advance,  or
is otherwise prevented from making a Warehousing Advance as a result of any fire
or other  casualty,  failure of power,  strike,  lockout or other labor trouble,
banking moratorium, embargo, sabotage,  confiscation,  condemnation, riot, civil
disturbance,  insurrection,  act of  terrorism,  war or other  activity of armed
forces, act of God or other similar reason beyond the control of Lender.  Lender
will make the  requested  Warehousing  Advance  as soon as  reasonably  possible
following the occurrence of such an event.

                                End of Article 5

<PAGE>

6.       GENERAL REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants to Lender, as of the date of this Agreement and
as of the  date of each  Warehousing  Advance  Request  and the  making  of each
Warehousing Advance, that:

6.1.     Place of Business

Borrower's  chief  executive  office and  principal  place of  business  is 1380
Lawrence Street, Suite 1400, Denver, CO, 80204.

6.2.     Organization; Good Standing; Subsidiaries

Borrower is a corporation duly organized,  validly existing and in good standing
under  the laws of the  State of  Colorado,  and has the full  legal  power  and
authority  to own  its  property  and to  carry  on its  business  as  currently
conducted.  Borrower is duly  qualified as a foreign  corporation to do business
and is in good standing in each  jurisdiction  in which the  transaction  of its
business makes qualification necessary, except in jurisdictions, if any, where a
failure to be in good  standing  has no material  adverse  effect on  Borrower's
business, operations, assets or financial condition as a whole. For the purposes
of this Agreement,  good standing  includes  qualification  for all licenses and
payment of all taxes required in the  jurisdiction of its  incorporation  and in
each  jurisdiction  in  which  Borrower  transacts  business.  Borrower  has  no
Subsidiaries  except as set forth on Exhibit D, which sets forth with respect to
each Subsidiary, its name, address, jurisdiction of organization,  each state in
which it is  qualified  to do  business,  and the  percentage  ownership  of its
capital stock by Borrower.  Each of Borrower's  Subsidiaries  is duly organized,
validly  existing and in good standing under the laws of the jurisdiction of its
organization, and has the full legal power and authority to own its property and
to carry on its business as currently conducted.

6.3.     Authorization and Enforceability

Borrower  has the power and  authority  to execute,  deliver  and  perform  this
Agreement,  the  Warehousing  Note and other Loan Documents to which Borrower is
party and to make the borrowings under this Agreement.  The execution,  delivery
and  performance by Borrower of this  Agreement,  the  Warehousing  Note and the
other Loan Documents to which Borrower is party and the making of the borrowings
under this  Agreement,  and the  Warehousing  Note,  have been duly and  validly
authorized by all necessary  corporate  action on the part of Borrower  (none of
which actions has been  modified or  rescinded,  and all of which actions are in
full force and effect) and do not and will not (a) conflict  with or violate any
provision of law, of any judgments binding upon Borrower,  or of the articles of
incorporation or by-laws of Borrower, or (b) conflict with or result in a breach
of,  constitute a default or require any consent under,  or result in or require
the acceleration of any indebtedness of Borrower under any agreement, instrument
or indenture to which  Borrower is a party or by which  Borrower or its property
may be bound  or  affected,  or  result  in the  creation  of any Lien  upon any
property or assets of Borrower  (other than the Lien on the  Collateral  granted
under this Agreement).  This Agreement,  the Warehousing Note and the other Loan
Documents  constitute  the legal,  valid and binding  obligations  of  Borrower,
enforceable  in accordance  with their  respective  terms,  except as limited by
bankruptcy,   insolvency  or  other  such  laws  affecting  the  enforcement  of
creditors' rights.

6.4.     Authorization and Enforceability of Guaranty

Each non-individual  Guarantor has the power and authority,  and each individual
Guarantor has the legal  capacity to execute,  deliver and perform the Guaranty.
The  Guaranty  constitutes  the legal,  valid,  and binding  obligation  of each
Guarantor,  enforceable  in  accordance  with its  terms,  except as  limited by
bankruptcy,   insolvency  or  other  such  laws  affecting  the  enforcement  of
creditors' rights.

<PAGE>

6.5. Approvals

The execution and delivery of this Agreement, the Warehousing Note and the other
Loan  Documents  and  the  performance  of  Borrower's  obligations  under  this
Agreement,  the  Warehousing  Note and the other Loan Documents and the validity
and  enforceability  of this Agreement,  the Warehousing Note and the other Loan
Documents do not require any license,  consent,  approval or other action of any
state or federal agency or governmental or regulatory authority other than those
that have been obtained and remain in full force and effect.

6.6.     Financial Condition

The balance sheet of Borrower (and, if applicable, Borrower's Subsidiaries, on a
consolidated  basis) as of each Statement  Date,  and the related  statements of
income,  cash flows and changes in  stockholders'  equity for the fiscal  period
ended on each Statement Date, furnished to Lender,  fairly present the financial
condition of Borrower (and, if applicable,  Borrower's  Subsidiaries) as at that
Statement  Date and the results of its operations for the fiscal period ended on
that Statement  Date.  Borrower had, on each  Statement  Date, no known material
liabilities,  direct or indirect, fixed or contingent,  matured or unmatured, or
liabilities  for  taxes,  long-term  leases  or  unusual  forward  or  long-term
commitments   not  disclosed  by,  or  reserved   against  in,  those  financial
statements,  and  at the  present  time  there  are no  material  unrealized  or
anticipated  losses from any loans,  advances or other  commitments  of Borrower
except as previously disclosed to Lender in writing.  Those financial statements
were prepared in accordance with GAAP applied on a consistent  basis  throughout
the periods involved.  Since the date of the financial  statements  described in
Section 5.1(6) or, from and after the delivery of the first financial  statement
required under Section 7.2(b),  there has been no material adverse change in the
business,  operations,  assets or  financial  condition  of  Borrower  (and,  if
applicable,  Borrower's  Subsidiaries),  nor is  Borrower  aware of any state of
facts  that  (with or  without  notice or lapse of time or both)  would or could
result in any such material adverse change.

6.7. Litigation

There are no actions,  claims,  suits or  proceedings  pending or, to Borrower's
knowledge, threatened or reasonably anticipated against or affecting Borrower or
any  Subsidiary of Borrower in any court or before any  arbitrator or before any
government  commission,  board, bureau or other  administrative  agency that, if
adversely determined, may reasonably be expected to result in a material adverse
change in Borrower's  business,  operations,  assets or financial condition as a
whole,  or that would affect the validity or  enforceability  of this Agreement,
the Warehousing Note or any other Loan Document.

6.8.     Compliance with Laws

Neither Borrower nor any Subsidiary of Borrower is in violation of any provision
of any law, or of any judgment, award, rule, regulation,  order, decree, writ or
injunction of any court or public regulatory body or authority that could result
in a material  adverse  change in  Borrower's  business,  operations,  assets or
financial   condition   as  a  whole  or  that  would  affect  the  validity  or
enforceability  of  this  Agreement,  the  Warehousing  Note or any  other  Loan
Document.

6.9.     Regulation U

Borrower is not engaged principally,  or as one of its important activities,  in
the  business  of  extending  credit for the purpose of  purchasing  or carrying
Margin Stock, and no part of the proceeds of any Warehousing  Advance made under
this  Agreement  will be used to purchase or carry any Margin Stock or to extend
credit to others for the purpose of purchasing or carrying any Margin Stock.

<PAGE>

6.10. Investment Company Act

Borrower is not an "investment company" or controlled by an "investment company"
within the meaning of the Investment Company Act.

6.11. Payment of Taxes

Borrower  and each of its  Subsidiaries  has  filed or  caused  to be filed  all
federal, state and local income, excise, property and other tax returns that are
required  to be  filed  with  respect  to the  operations  of  Borrower  and its
Subsidiaries, all such returns are true and correct and Borrower and each of its
Subsidiaries  has paid or caused to be paid all taxes shown on those  returns or
on any assessment, to the extent that those taxes have become due, including all
FICA payments and withholding  taxes, if appropriate.  The amounts reserved as a
liability  for  income  and other  taxes  payable  in the  financial  statements
described in Section 6.6 are sufficient for payment of all unpaid federal, state
and local income, excise,  property and other taxes, whether or not disputed, of
Borrower and its Subsidiaries accrued for or applicable to the period and on the
dates of those  financial  statements  and all years and periods  prior to those
financial  statements and for which Borrower and its  Subsidiaries may be liable
in their own right or as  transferee  of the assets of, or as successor  to, any
other  Person.  No tax Liens  have been filed and no  material  claims are being
asserted  against  Borrower,  any  Subsidiary  of  Borrower  or any  property of
Borrower  or any  Subsidiary  of  Borrower  with  respect to any taxes,  fees or
charges.

6.12. Agreements

Neither  Borrower nor any  Subsidiary  of Borrower is a party to any  agreement,
instrument or indenture or subject to any  restriction  materially and adversely
affecting its business,  operations,  assets or financial  condition,  except as
disclosed in the financial statements described in Section 6.6. Neither Borrower
nor any Subsidiary of Borrower is in default in the  performance,  observance or
fulfillment of any of the obligations,  covenants or conditions contained in any
agreement,  instrument,  or indenture  which  default could result in a material
adverse  change in  Borrower's  business,  operations,  properties  or financial
condition as a whole. No holder of any indebtedness of Borrower or of any of its
Subsidiaries has given notice of any asserted  default under that  indebtedness,
and no liquidation or dissolution of Borrower or of any of its  Subsidiaries and
no  receivership,   insolvency,  bankruptcy,  reorganization  or  other  similar
proceedings  relative to Borrower or of any of its Subsidiaries or any of its or
their properties is pending, or to the knowledge of Borrower, threatened.

6.13.    Title to Properties

Borrower and each Subsidiary of Borrower has good, valid,  insurable and (in the
case of real  property)  marketable  title to all of its  properties  and assets
(whether real or personal,  tangible or  intangible)  reflected on the financial
statements described in Section 6.6, except for those properties and assets that
Borrower has disposed of since the date of those financial  statements either in
the ordinary course of business or because they were no longer used or useful in
the  conduct of  Borrower's  or the  Subsidiary's  business.  All of  Borrower's
properties  and assets are free and clear of all Liens  except as  disclosed  in
Borrower's financial statements.

<PAGE>

6.14. ERISA

Each Plan is in compliance  with all  applicable  requirements  of ERISA and the
Internal Revenue Code and with all material  applicable  rulings and regulations
issued under the provisions of ERISA and the Internal Revenue Code setting forth
those  requirements,  except  where any failure to comply  would not result in a
material  loss to Borrower or any ERISA  Affiliate.  All of the minimum  funding
standards or other  contribution  obligations  applicable to each Plan have been
satisfied.  No Plan is a  defined-benefit  pension  plan  subject to Title IV of
ERISA, and there is no Multiemployer Plan.

6.15. No Retiree Benefits

Except as required under Section 4980B of the Internal Revenue Code, Section 601
of ERISA or  applicable  state law,  neither  Borrower nor, if  applicable,  any
Subsidiary is obligated to provide post-retirement medical or insurance benefits
with respect to employees or former employees.

6.16. Assumed Names

Borrower does not originate  Mortgage Loans or otherwise  conduct business under
any names other than its legal name and the  assumed  names set forth on Exhibit
G.  Borrower  has made all filings and taken all other action as may be required
under the laws of any  jurisdiction  in which it  originates  Mortgage  Loans or
otherwise  conducts  business  under any  assumed  name.  Borrower's  use of the
assumed names set forth on Exhibit G does not conflict  with any other  Person's
legal  rights to any such name,  nor  otherwise  give rise to any  liability  by
Borrower to any other Person.  Borrower may amend Exhibit G to add or delete any
assumed names used by Borrower to conduct business. An amendment to Exhibit G to
add an assumed name is not effective  until  Borrower has delivered to Lender an
assumed name certificate in the jurisdictions in which the assumed name is to be
used,  which must be  satisfactory  in form and  content to Lender,  in its sole
discretion.  In  connection  with any amendment to delete a name from Exhibit G,
Borrower  represents  and warrants that it has ceased using that assumed name in
all jurisdictions.

6.17. Servicing

Exhibit C is a true and complete list of Borrower's Servicing Portfolio.  All of
Borrower's   Servicing   Contracts  are  in  full  force  and  effect,  and  are
unencumbered  by Liens  other than Liens  disclosed  in Exhibit C. No default or
event that, with notice or lapse of time or both, would become a default, exists
under any of Borrower's Servicing Contracts.

                                End of Article 6

<PAGE>

7.       AFFIRMATIVE COVENANTS

As long as the  Warehousing  Commitment  is  outstanding  or  there  remain  any
Obligations to be paid or performed under this Agreement or under any other Loan
Document, Borrower must:

7.1.     Payment of Obligations

Punctually pay or cause to be paid all  Obligations,  including the  Obligations
payable under this Agreement and under the Warehousing  Note, in accordance with
their terms.

7.2.     Financial Statements

Deliver to Lender:

7.2  (a)  As soon as available  and in any event within 30 days after the end of
          each month,  including  the last month of  Borrower's  fiscal year, an
          interim   statement  of  income  of  Borrower   (and,  if  applicable,
          Borrower's Subsidiaries,  on a consolidated basis) for the immediately
          preceding  month and for the period from the  beginning  of the fiscal
          year to the end of that month, and the related balance sheet as at the
          end of the  immediately  preceding  month,  all in reasonable  detail,
          subject, however, to year-end audit adjustments.

7.2  (b)  As soon as available  and in any event within 90 days after the end of
          each fiscal year of Borrower,  fiscal  year-end  statements of income,
          changes in  stockholders'  equity and cash flow of Borrower  (and,  if
          applicable, Borrower's Subsidiaries, on a consolidated basis) for that
          year,  and the  related  balance  sheet  as of the  end of  that  year
          (setting forth in comparative form the  corresponding  figures for the
          preceding  fiscal year),  all in reasonable  detail and accompanied by
          (1) an opinion as to those  financial  statements in form and prepared
          by independent  certified  public  accountants of recognized  standing
          acceptable  to  Lender  and (2)  any  management  letters,  management
          reports or other supplementary  comments or reports delivered by those
          accountants to Borrower or its board of directors.

7.2  (c)  Together with each delivery of financial  statements  required by this
          Section, a Compliance Certificate substantially in the form of Exhibit
          E.

7.2  (d)  As soon as available  and in any event within 90 days after the end of
          each fiscal  year of the  Guarantor,  fiscal  year-end  statements  of
          income,  changes  in  stockholders'  equity  and  cash  flows  of  the
          Guarantor  (and, if applicable,  the  Guarantor's  Subsidiaries,  on a
          consolidated  basis) for the most  recent  fiscal  year,  the  related
          balance sheet as at the end of that year (setting forth in comparative
          form the corresponding  figures for the preceding fiscal year), all in
          reasonable  detail  and  accompanied  by (1) an  opinion  as to  those
          financial statements in form and substance  satisfactory to Lender and
          prepared by  independent  certified  public  accountants of recognized
          standing   acceptable  to  Lender  and  (2)  any  management  letters,
          management  reports  or  other   supplementary   comments  or  reports
          delivered by those accountants to the Guarantor.

7.2  (e)  As soon as available  and in any event within 45 days after the end of
          each fiscal quarter of Guarantor, including the last fiscal quarter of
          Guarantor's  fiscal year, an interim  statement of income of Guarantor
          (and,  if  applicable,  Guarantor's  Subsidiaries,  on a  consolidated
          basis) for that fiscal  quarter and the period from the  beginning  of
          the fiscal  year to the end of that  fiscal  quarter,  and the related
          balance sheet as at the end of that fiscal quarter,  all in reasonable
          detail, subject, however, to year-end audit adjustments.

<PAGE>

7.2  (f)  Copies of all regular or periodic  financial  and other  reports  that
          Borrower  or  Guarantor   files  with  the   Securities  and  Exchange
          Commission or any successor  governmental agency or other entity.

7.3.    Other Borrower Reports

Deliver to Lender:

7.3  (a)  If Borrower has a Servicing  Portfolio,  then as soon as available and
          in  any  event  within  30  days  after  the  end  of  each  month,  a
          consolidated  report  ("Servicing  Portfolio Report") as of the end of
          the month, as to all Mortgage Loans the servicing  rights to which are
          owned  by  Borrower   (specified  by  investor   type,   recourse  and
          non-recourse)  regardless  of whether the  Mortgage  Loans are Pledged
          Loans.  The Servicing  Portfolio  Report must indicate  which Mortgage
          Loans (1) are current and in good  standing,  (2) are more than 30, 60
          or 90 days past due,  (3) are the  subject  of pending  bankruptcy  or
          foreclosure   proceedings,   or  (4)  have  been  converted   (through
          foreclosure  or other  proceedings in lieu of  foreclosure)  into real
          estate owned by Borrower.

7.3  (b)  Other  reports  in  respect of  Pledged  Assets,  including  copies of
          purchase  confirmations  issued by Investors  purchasing Pledged Loans
          from  Borrower,  in such  detail  and at such  times as  Lender in its
          discretion may reasonably request.

7.3  (c)  With  reasonable  promptness,  all further  information  regarding the
          business, operations, properties or financial condition of Borrower as
          Lender  may  reasonably  request,   including  copies  of  any  audits
          completed by HUD, Ginnie Mae, Fannie Mae or Freddie Mac.

7.3  (d)  As soon as available  and in any event within 30 days after the end of
          each month,  a report,  in such detail as Lender in its discretion may
          reasonably request,  with respect to all Mortgage Loans (including the
          Pledged Loans) purchased,  held or sold by Borrower during such month,
          separately identifying  Non-performing Mortgage Loans,  Sub-performing
          Mortgage  Loans,  and Mortgage  Loans  purchased  under the Ginnie Mae
          Early Buyout Loan,  and a summary of Mortgage  Loan  documentation  or
          Investor  problems  for each  Pledged  Loan  that is a  Sub-performing
          Mortgage Loan or a Non-performing  Mortgage Loan.

7.4.  Maintenance of Existence; Conduct of Business

Preserve and maintain its  corporate  existence in good  standing and all of its
rights, privileges, licenses and franchises necessary or desirable in the normal
conduct of its  business,  conduct  its  business  in an orderly  and  efficient
manner;  maintain a net worth of acceptable  assets as required for  maintaining
Borrower's  eligibility  as  lender,  seller/servicer  and  issuer;  and make no
material  change in the nature or  character  of its  business  or engage in any
business in which it was not engaged on the date of this Agreement.

7.5.     Compliance with Applicable Laws

Comply with the  requirements  of all applicable  laws,  rules,  regulations and
orders  of any  governmental  authority,  a breach  of which  could  result in a
material adverse change in Borrower's business, operations, assets, or financial
condition as a whole or on the enforceability of this Agreement, the Warehousing
Note, any other Loan Document or any Collateral,  except where contested in good
faith and by appropriate proceedings.

<PAGE>

7.6.     Inspection of Properties and Books; Operational Reviews

Permit  Lender or any  Participant  (and their  authorized  representatives)  to
discuss the business, operations, assets and financial condition of Borrower and
its Subsidiaries with Borrower's officers,  agents and employees, and to examine
and make  copies  or  extracts  of  Borrower's  and its  Subsidiaries'  books of
account,  all at such reasonable times as Lender or any Participant may request.
Provide  its  accountants  with a copy  of this  Agreement  promptly  after  its
execution and authorize and instruct them to answer  candidly all questions that
the officers of Lender or any Participant or any authorized  representatives  of
Lender or any  Participant  may address to them in  reference  to the  financial
condition  or affairs of Borrower  and its  Subsidiaries.  Borrower may have its
representatives in attendance at any meetings held between the officers or other
representatives  of Lender or any Participant and Borrower's  accountants  under
this  authorization.  Permit  Lender or any  Participant  (and their  authorized
representatives)  access to  Borrower's  premises and records for the purpose of
conducting a review of Borrower's  general mortgage business  methods,  policies
and  procedures,  auditing  its loan  files  and  reviewing  the  financial  and
operational aspects of Borrower's business.

7.7. Notice

Give prompt Notice to Lender of (a) any action,  suit or  proceeding  instituted
against  Borrower  or any of its  Subsidiaries  in any federal or state court or
before  any  commission  or other  regulatory  body  (federal,  state or  local,
domestic or foreign), which action, suit or proceeding has at issue in excess of
$100,000,  or any such  proceedings  threatened  against  Borrower or any of its
Subsidiaries  in a  writing  containing  the  details  of that  action,  suit or
proceeding;  (b) the filing,  recording or assessment  of any federal,  state or
local  tax  Lien  against  Borrower,  or  any  of  its  assets  or  any  of  its
Subsidiaries;  (c) an Event of Default;  (d) a Default that  continues  for more
than 4  days;  (e) the  suspension,  revocation  or  termination  of  Borrower's
eligibility,  in any  respect,  as lender,  seller/servicer  or issuer,  (f) the
transfer,  loss,  nonrenewal or termination of any Servicing  Contracts to which
Borrower  is a party,  or which is held for the  benefit  of  Borrower,  and the
reason for that transfer,  loss,  nonrenewal or termination;  (g) any Prohibited
Transaction  with respect to any Plan,  specifying  the nature of the Prohibited
Transaction  and what action  Borrower  proposes to take with respect to it; and
(h) any other  action,  event or  condition  of any nature that could lead to or
result in a  material  adverse  change in the  business,  operations,  assets or
financial condition of Borrower or any of its Subsidiaries.

7.8.     Payment of Debt, Taxes and Other Obligations

Pay, perform and discharge,  or cause to be paid, performed and discharged,  all
of the obligations and indebtedness of Borrower and its Subsidiaries, all taxes,
assessments  and  governmental  charges or levies  imposed upon  Borrower or its
Subsidiaries  or upon their  respective  income,  receipts or properties  before
those taxes, assessments and governmental charges or levies become past due, and
all lawful  claims for labor,  materials  and  supplies or  otherwise  that,  if
unpaid, could become a Lien or charge upon any of their respective properties or
assets.  Borrower and its  Subsidiaries  are not required to pay,  however,  any
taxes,  assessments  and  governmental  charges  or levies or claims  for labor,
materials or supplies for which  Borrower or its  Subsidiaries  have obtained an
adequate  bond or  insurance  or that are being  contested  in good faith and by
proper  proceedings  that are being  reasonably and  diligently  pursued and for
which proper reserves have been created.

7.9. Insurance

Maintain  blanket bond coverage and errors and  omissions  insurance or mortgage
impairment  insurance,  with  such  companies  and in such  amounts  as  satisfy
prevailing requirements applicable to a lender,  seller/servicer and issuer, and
liability  insurance and fire and other hazard  insurance on its properties,  in

<PAGE>

each case with responsible  insurance  companies  acceptable to Lender,  in such
amounts and against such risks as is customarily  carried by similar  businesses
operating in the same location.  Within 30 days after Notice from Lender, obtain
such  additional  insurance as Lender may  reasonably  require,  all at the sole
expense of Borrower. Copies of such policies must be furnished to Lender without
charge upon request of Lender.

7.10. Subordination of Certain Indebtedness

Cause any  indebtedness  of Borrower to any  shareholder,  director,  officer or
Affiliate of Borrower,  or to any Guarantor,  which  indebtedness  has a term of
more  than 1  year  or is in  excess  of  $250,000,  to be  subordinated  to the
Obligations by the execution and delivery to Lender of a  Subordination  of Debt
Agreement,  on the  form  prescribed  by  Lender,  certified  by  the  corporate
secretary of Borrower to be true and complete and in full force and effect.

7.11. Other Loan Obligations

Perform all material  obligations under the terms of each loan agreement,  note,
mortgage, security agreement or debt instrument by which Borrower is bound or to
which any of its property is subject, and promptly notify Lender in writing of a
declared default under or the termination, cancellation, reduction or nonrenewal
of any of its other lines of credit or agreements with any other lender. Exhibit
F is a true and complete  list of all such lines of credit or  agreements  as of
the date of this  Agreement.  Borrower  must give Lender at least 30 days Notice
before entering into any additional lines of credit or agreements.

7.12. ERISA

Maintain (and, if applicable,  cause each ERISA Affiliate to maintain) each Plan
in  compliance  with all material  applicable  requirements  of ERISA and of the
Internal  Revenue Code and with all applicable  rulings and  regulations  issued
under the provisions of ERISA and of the Internal Revenue Code, and not (and, if
applicable, not permit any ERISA Affiliate to), (a) engage in any transaction in
connection with which Borrower or any ERISA Affiliate would be subject to either
a civil penalty assessed pursuant to Section 502(i) of ERISA or a tax imposed by
Section 4975 of the Internal Revenue Code, in either case in an amount exceeding
$25,000 or (b) fail to make full payment when due of all amounts that, under the
provisions  of any Plan,  Borrower or any ERISA  Affiliate is required to pay as
contributions  to  that  Plan,  or  permit  to  exist  any  accumulated  funding
deficiency  (as such term is defined in Section  302 of ERISA and Section 412 of
the Internal Revenue Code),  whether or not waived,  with respect to any Plan in
an aggregate amount exceeding $25,000.

7.13. Use of Proceeds of Warehousing Advances

Use  the  proceeds  of each  Warehousing  Advance  solely  for  the  purpose  of
purchasing  Eligible  Loans and  against the pledge of those  Eligible  Loans as
Collateral.

                                End of Article 7

<PAGE>

8.       NEGATIVE COVENANTS

As long as the  Warehousing  Commitment  is  outstanding  or  there  remain  any
Obligations  to be paid or  performed,  Borrower  must not,  either  directly or
indirectly, without the prior written consent of Lender:

8.1.     Contingent Liabilities

Assume,  guarantee,  endorse or  otherwise  become  contingently  liable for the
obligation of any Person except by  endorsement  of negotiable  instruments  for
deposit  or  collection  in the  ordinary  course of  business,  and  except for
obligations  arising in connection with the sale of Mortgage Loans with recourse
in the ordinary course of Borrower's business.

8.2.     Pledge of Servicing Contracts

Pledge  or  grant a  security  interest  in any  existing  or  future  Servicing
Contracts of Borrower other than to Lender,  or omit to take any action required
to keep all of Borrower's Servicing Contracts in full force and effect.

8.3.     Restrictions on Fundamental Changes

8.3  (a)  Consolidate,  merge or  enter  into any  analogous  reorganization  or
          transaction with any Person.

8.3  (b)  Amend or otherwise  modify  Borrower's  articles of  incorporation  or
          by-laws.

8.3  (c)  Liquidate,   wind  up  or  dissolve  (or  suffer  any  liquidation  or
          dissolution).

8.3  (d)  Cease  actively to engage in the business of  originating or acquiring
          Mortgage  Loans or make any other  material  change  in the  nature or
          scope of the business in which Borrower engages as of the date of this
          Agreement.

8.3  (e)  Sell, assign, lease, convey, transfer or otherwise dispose of (whether
          in one transaction or a series of transactions) all or any substantial
          part of Borrower's  business or assets,  whether now owned or acquired
          after the Closing Date, other than, in the ordinary course of business
          and to the extent not otherwise prohibited by this Agreement, sales of
          (1) Mortgage Loans, (2)  Mortgage-backed  Securities and (3) Servicing
          Contracts.

8.3  (f)  Acquire by purchase or in any other  transaction all or  substantially
          all of the  business  or  property  of,  or stock  or other  ownership
          interests of, any Person.

8.3  (g)  Permit any  Subsidiary  of Borrower to do or take any of the foregoing
          actions.

8.4. Subsidiaries

Form or acquire,  or permit any  Subsidiary of Borrower to form or acquire,  any
Person that would thereby become a Subsidiary.

<PAGE>

8.5.     Deferral of Subordinated Debt

Pay any  Subordinated  Debt of  Borrower in advance of its stated  maturity  or,
after a Default or Event of Default under this Agreement has occurred,  make any
payment  of any  kind on any  Subordinated  Debt of  Borrower  until  all of the
Obligations  have been paid and performed in full and any applicable  preference
period has expired.

8.6.     Loss of Eligibility

Take any action that would cause  Borrower to lose all or any part of its status
as an eligible lender, seller/servicer or issuer.

8.7.     Accounting Changes

Make, or permit any  Subsidiary of Borrower to make, any  significant  change in
accounting  treatment or  reporting  practices,  except as required by GAAP,  or
change its fiscal year or the fiscal year of any Subsidiary of Borrower.

8.8.     Leverage Ratio
Permit Borrower's Leverage Ratio at any time to exceed 10 to 1.

8.9.     Minimum Tangible Net Worth
Permit Borrower's Tangible Net Worth at any time to be less than $2,500,000.

8.10.    Liquidity Ratio

Permit Borrower's Liquidity Ratio at any time to be less than 35%.

8.11.    Loans to Loans Ratio

Permit the ratio (expressed as a percentage) of the aggregate amount of Advances
outstanding against  Non-performing  Mortgage Loans and Sub-performing  Mortgage
Loans to the aggregate amount of Advances  outstanding at any time to be greater
than 10%. For the purpose of this calculation, any Pledged Loans that are Ginnie
Mae Early Buyout Loans shall be excluded.

8.12. Distributions to Shareholders

For any fiscal year,  declare or pay any dividends or otherwise  declare or make
any  distribution  to  Borrower's   shareholders   (including  any  purchase  or
redemption of stock) if a Default or Event of Default exists or would occur as a
result of the dividend or distribution.

8.13. Transactions with Affiliates

Directly  or  indirectly  (a) make any  loan,  advance,  extension  of credit or
capital  contribution  to any of  Borrower's  Affiliates,  except for (i) loans,
advances,  extensions of credit or capital  contributions in an aggregate amount
not to exceed $500,000 to First Matrix Investment Services,  and (ii) loans made
to Matrix Bancorp as part of its consolidated cash management  system; (b) sell,
transfer,  pledge  or  assign  any  of  its  assets  to or on  behalf  of  those
Affiliates,  other than sales of Mortgage  Loans to  Affiliates  in the ordinary
course of business;  (c) merge or consolidate with or purchase or acquire assets
from those Affiliates, or (d) pay management fees in excess of $250,000 to or on
behalf of those Affiliates.

<PAGE>

8.14. Recourse Servicing Contracts

Acquire or enter into Servicing  Contracts  under which Borrower must repurchase
or  indemnify  the holder of the  Mortgage  Loans as a result of defaults on the
Mortgage Loans at any time during the term of those Mortgage Loans.

                                End of Article 8

<PAGE>

9.       SPECIAL REPRESENTATIONS, WARRANTIES AND COVENANTS CONCERNING COLLATERAL

9.1.     Special   Representations   and  Warranties   Concerning   Warehousing
         Collateral

Borrower represents and warrants to Lender, as of the date of this Agreement and
as of the  date of each  Warehousing  Advance  Request  and the  making  of each
Warehousing Advance, that:

9.1  (a)  Borrower has not selected the  Collateral  in a manner so as to affect
          adversely Lender's interests.

9.1  (b)  Borrower is the legal and equitable  owner and holder,  free and clear
          of all Liens (other than Liens granted under this  Agreement),  of the
          Pledged Loans and the Pledged Securities.  All Pledged Loans,  Pledged
          Securities and related Purchase  Commitments have been duly authorized
          and validly  issued to  Borrower,  and all of the  foregoing  items of
          Collateral comply with all of the requirements of this Agreement,  and
          have been and will  continue  to be  validly  pledged or  assigned  to
          Lender, subject to no other Liens.

9.1  (c)  Borrower  has, and will  continue to have,  the full right,  power and
          authority  to pledge the  Collateral  pledged  and to be pledged by it
          under this Agreement.

9.1  (d)  Each Mortgage Loan and each related  document  included in the Pledged
          Loans (1) has been duly  executed and delivered by the parties to that
          Mortgage  Loan  and  that  related  document,  (2)  has  been  made in
          compliance with all applicable laws, rules and regulations  (including
          all laws,  rules and regulations  relating to usury),  (3) is and will
          continue to be a legal, valid and binding  obligation,  enforceable in
          accordance with its terms, without setoff,  counterclaim or defense in
          favor of the mortgagor under the Mortgage Loan or any other obligor on
          the  Mortgage  Note  and (4) has not  been  modified,  amended  or any
          requirements of which waived,  except in a writing that is part of the
          Collateral  Documents.  No  party  to any  Mortgage  Loan  or  related
          document is in violation of any applicable  law, rule or regulation if
          the violation would impair the  collectibility of the Mortgage Loan or
          the  performance  by  the  mortgagor  or  any  other  obligor  of  its
          obligations under the Mortgage Note or any related document.

9.1  (e)  Each Pledged Loan is  denominated in dollars and secured by a Mortgage
          on real property  located in one of the states of the United States or
          the District of Columbia.

9.1  (f)  Except for open-ended  Second Mortgage  Loans,  each Mortgage Loan has
          been fully advanced in the face amount of its Mortgage Note.

9.1  (g)  Each First Mortgage is a first Lien on the premises  described in that
          Mortgage.

9.1  (h)  Each Second  Mortgage Loan is secured by a second Lien on the premises
          described in that Mortgage.

9.1  (i)  To the  extent  required  by the  related  Purchase  Commitment  or by
          Investors  generally for similar Mortgage Loans,  each Second Mortgage
          Loan  has or  will  have a title  insurance  policy,  in ALTA  form or
          equivalent,  from a recognized title insurance  company,  insuring the
          priority  of  the  Lien  of  the   Mortgage   and  meeting  the  usual
          requirements of Investors purchasing those Mortgage Loans. 9.1(j) Each
          First Mortgage Loan has or will have a title insurance policy, in ALTA
          form  or  equivalent,  from  a  recognized  title  insurance  company,
          insuring  the  priority  of the Lien of the  Mortgage  and meeting the
          usual requirements of Investors purchasing those Mortgage Loans.

<PAGE>

9.1  (k)  Each Mortgage Loan has been evaluated or appraised in accordance  with
          Title XI of FIRREA.

9.1  (l)  The Mortgage  Note for each Pledged Loan is (1) payable or endorsed to
          the order of  Borrower,  (2) an  "instrument"  within  the  meaning of
          Article  9  of  the  Uniform   Commercial   Code  of  all   applicable
          jurisdictions  and (3) is  denominated  and  payable in United  States
          dollars.

9.1  (m)  Except in the case of  Non-performing  Mortgage  Loans, no default has
          existed for 60 days or more under any  Mortgage  Loan  included in the
          Pledged Loans, except Non-performing Mortgage Loans and Sub-performing
          Mortgage Loans.

9.1  (n)  No party to a Mortgage Loan or any related document is in violation of
          any  applicable   law,  rule  or  regulation  that  would  impair  the
          collectibility  of  the  Mortgage  Loan  or  the  performance  by  the
          mortgagor or any other obligor of its  obligations  under the Mortgage
          Note or any related document.

9.1  (o)  All fire and casualty  policies  covering the premises  encumbered  by
          each Mortgage included in the Pledged Loans (1) name and will continue
          to name Borrower and its successors and assigns as the insured under a
          standard  mortgagee  clause,  (2) are and will  continue to be in full
          force and effect and (3) afford and will continue to afford  insurance
          against  fire and such other risks as are usually  insured  against in
          the broad form of extended coverage insurance generally available.

9.1  (p)  Pledged  Loans  secured by premises  located in a special flood hazard
          area  designated  as such by the  Director  of the  Federal  Emergency
          Management Agency are and will continue to be covered by special flood
          insurance under the National Flood Insurance Program.

9.1  (q)  Each Pledged Loan against which a  Warehousing  Advance is made on the
          basis of a Purchase  Commitment  meets all of the requirements of that
          Purchase  Commitment,  and  each  Pledged  Security  against  which  a
          Warehousing  Advance is outstanding  meets all of the  requirements of
          the related Purchase Commitment.

9.1  (r)  Pledged  Loans  that  are  intended  to be  used in the  formation  of
          Mortgage-backed  Securities comply with the requirements of the issuer
          of the  Mortgage-backed  Securities (or its sponsor) and of the Rating
          Agencies.

9.1  (s)  None of the Pledged Loans is a graduated  payment Mortgage Loan or has
          a shared appreciation or other contingent  interest feature,  and each
          Pledged Loan provides for periodic payments of all accrued interest on
          the Mortgage Loan on at least a monthly basis.

9.1  (t)  The  original  assignments  of Mortgage  delivered  to Lender for each
          Pledged  Loan are in  recordable  form and comply with all  applicable
          laws and  regulations  governing  the  filing  and  recording  of such
          documents.

9.1  (u)  Each  Pledged Loan  secured by real  property to which a  Manufactured
          Home is affixed  will  create a valid Lien on that  Manufactured  Home
          that will have priority over any other Lien on the Manufactured  Home,
          whether or not arising under applicable real property law.

<PAGE>

9.2.     Special Affirmative Covenants Concerning Warehousing Collateral

As long as the  Warehousing  Commitment  is  outstanding  or  there  remain  any
Obligations to be paid or performed under this Agreement or under any other Loan
Document, Borrower must:

9.2  (a)  Warrant and defend the right,  title and  interest of Lender in and to
          the Collateral against the claims and demands of all Persons.

9.2  (b)  Service or cause to be serviced all Pledged Loans in  accordance  with
          the  standard  requirements  of the  issuers of  Purchase  Commitments
          covering  them and all  applicable  HUD,  Fannie Mae and  Freddie  Mac
          requirements,  including  taking all actions  necessary to enforce the
          obligations  of the obligors  under such  Mortgage  Loans.  Service or
          cause to be serviced all Mortgage Loans backing Pledged  Securities in
          accordance with applicable governmental  requirements and requirements
          of issuers of  Purchase  Commitments  covering  them.  Hold all escrow
          funds collected in respect of Pledged Loans and Mortgage Loans backing
          Pledged  Securities  in  trust,  without  commingling  the  same  with
          non-custodial  funds,  and apply them for the purposes for which those
          funds were collected.

9.2  (c)  Execute  and deliver to Lender with  respect to the  Collateral  those
          further instruments of sale, pledge, assignment or transfer, and those
          powers of  attorney,  as  required  by Lender,  and do and perform all
          matters and things necessary or desirable to be done or observed,  for
          the purpose of effectively  creating,  maintaining  and preserving the
          security  and  benefits  intended  to be  afforded  Lender  under this
          Agreement.

9.2  (d)  Prior  to the  origination  by  Borrower  of any  Mortgage  Loan to be
          registered on the MERS system, obtain the approval of Lender and enter
          into an Electronic Tracking Agreement.

9.2  (e)  No Pledged Loan is a Discontinued Loan.

9.3.     Special Negative Covenants Concerning Warehousing Collateral

As long as the  Warehousing  Commitment  is  outstanding  or  there  remain  any
Obligations  to be paid or  performed,  Borrower  must not,  either  directly or
indirectly, without the prior written consent of Lender:

9.3  (a)  Amend or  modify,  or waive  any of the terms  and  conditions  of, or
          settle or  compromise  any claim in respect of, any  Pledged  Loans or
          Pledged Securities.

9.3  (b)  Sell,  transfer  or assign,  or grant any option  with  respect to, or
          pledge  (except under this Agreement and, with respect to each Pledged
          Loan or Pledged Security,  the related Purchase Commitment) any of the
          Collateral or any interest in any of the Collateral.

9.3  (c)  Make any compromise, adjustment or settlement in respect of any of the
          Collateral or accept other than cash in payment or  liquidation of the
          Collateral.

                                End of Article 9

<PAGE>

10.      DEFAULTS; REMEDIES

10.1.    Events of Default

The  occurrence  of any of the  following  is an event  of  default  ("Event  of
Default"):

10.1 (a)  Borrower  fails to pay the principal of any  Warehousing  Advance when
          due, whether at stated maturity,  by  acceleration,  or otherwise;  or
          fails to pay any  installment of interest on any  Warehousing  Advance
          within 9 days after the date of Lender's  invoice  or, if  applicable,
          within 2 days after the date of Lender's account  analysis  statement;
          or fails to pay, within any applicable grace period,  any other amount
          due under  this  Agreement  or any other  Obligation  of  Borrower  to
          Lender.

10.1 (b)  Borrower,  any of its  Subsidiaries  or  Guarantor  fails  to pay,  or
          defaults in the  payment of any  principal  or interest  on, any other
          indebtedness or any contingent  obligation within any applicable grace
          period;  breaches or defaults with respect to any other  material term
          of  any  other  indebtedness  or  of  any  loan  agreement,  mortgage,
          indenture or other  agreement  relating to that  indebtedness,  if the
          effect of that breach or default is to cause,  or to permit the holder
          or holders of that indebtedness (or a trustee on behalf of such holder
          or  holders)  to  cause,   indebtedness   of  Borrower,   any  of  its
          Subsidiaries  or Guarantor in the aggregate  amount of $50,000 or more
          to become or be  declared  due before its  stated  maturity  (upon the
          giving or receiving of notice, lapse of time, both, or otherwise).

10.1 (c)  Borrower  fails to  perform  or  comply  with  any  term or  condition
          applicable  to it  contained in Sections 7.4 or 7.13 or in any Section
          of Article 8.

10.1 (d)  Any  representation  or warranty made or deemed made by Borrower under
          this Agreement, in any other Loan Document or in any written statement
          or  certificate  at any  time  given  by  Borrower  is  inaccurate  or
          incomplete in any material  respect on the date as of which it is made
          or deemed made.

10.1 (e)  Borrower  defaults in the  performance of or compliance  with any term
          contained  in this  Agreement  or any other Loan  Document  other than
          those  referred to in Sections 10.1 (a), 10.1 (c) or 10.1 (d) and such
          default  has not been  remedied  or waived  within  30 days  after the
          earliest  of (1)  receipt by  Borrower  of Notice  from Lender of that
          default, (2) receipt by Lender of Notice from Borrower of that default
          or (3) the date Borrower  should have notified  Lender of that default
          under Section 7.7(c) or 7.7(d).

10.1 (f)  An "event of default"  (however  defined)  occurs under any  agreement
          between  Borrower and Lender other than this  Agreement  and the other
          Loan Documents.

10.1 (g)  A case  (whether  voluntary  or  involuntary)  is filed by or  against
          Borrower or any  Subsidiary  of Borrower  or any  Guarantor  under any
          applicable  bankruptcy,  insolvency or other similar  federal or state
          law; or a court of competent jurisdiction appoints a receiver (interim
          or permanent), liquidator,  sequestrator,  trustee, custodian or other
          officer  having  similar  powers over  Borrower or any  Subsidiary  of
          Borrower or any Guarantor,  or over all or a substantial part of their
          respective  properties  or assets;  or Borrower or any  Subsidiary  of
          Borrower  or any  Guarantor  (1)  consents  to the  appointment  of or
          possession  by  a  receiver   (interim  or   permanent),   liquidator,
          sequestrator,  trustee,  custodian  or other  officer  having  similar
          powers over Borrower or any  Subsidiary of Borrower or any  Guarantor,
          or over all or a substantial  part of their  respective  properties or

<PAGE>

          assets,  (2) makes an assignment for the benefit of creditors,  or (3)
          fails,  or admits in writing its inability,  to pay its debts as those
          debts become due.

10.1 (h)  Borrower  fails to perform any  contractual  obligation  to repurchase
          Mortgage Loans, if such obligations in the aggregate exceed $500,000.

10.1 (i)  Any money  judgment,  writ or warrant of attachment or similar process
          involving  in an  amount in excess of  $100,000  is  entered  or filed
          against Borrower or any of its Subsidiaries or any of their respective
          assets and remains undischarged, unvacated, unbonded or unstayed for a
          period of 30 days or 5 days before the date of any proposed sale under
          that money judgment, writ or warrant of attachment or similar process.

10.1 (j)  Any order, judgment or decree decreeing the dissolution of Borrower or
          any  nonindividual  Guarantor is entered and remains  undischarged  or
          unstayed for a period of 20 days.

10.1 (k)  Borrower  purports to disavow the Obligations or contests the validity
          or enforceability of any Loan Document.

10.1 (l)  Any Guarantor  purports to disavow its obligations  under its Guaranty
          or contests the validity or enforceability of the Guaranty.

10.1 (m)  Lender's  security  interest on any portion of the Collateral  becomes
          unenforceable or otherwise impaired.

10.1 (n)  A material  adverse change occurs in Borrower's  financial  condition,
          business,  properties,  operations  or  prospects,  or  in  Borrower's
          ability to repay the Obligations.

10.1 (o)  Any Lien for any taxes,  assessments or other governmental charges (1)
          is filed  against  Borrower or any of its  property,  or is  otherwise
          enforced  against  Borrower  or any of its  property,  or (2)  obtains
          priority  that is  equal to  greater  than the  priority  of  Lender's
          security interest in any of the Collateral.

10.1 (p)  Guarantor  ceases to own,  directly or indirectly,  all of the capital
          stock of Borrower.

10.2. Remedies

10.2 (a)  If an Event of  Default  described  in Section  10.1 (g)  occurs  with
          respect to Borrower,  the Warehousing  Commitment  will  automatically
          terminate and the unpaid  principal  amount of and accrued interest on
          the  Warehousing  Note and all other  Obligations  will  automatically
          become due and payable, without presentment, demand or other Notice or
          requirements of any kind, all of which Borrower expressly waives.

10.2 (b)  If any  other  Event of  Default  occurs,  Lender  may,  by  Notice to
          Borrower,   terminate  the  Warehousing  Commitment  and  declare  the
          Obligations to be immediately due and payable.

10.2 (c)  If any  Event of  Default  occurs,  Lender  may  also  take any of the
          following actions:

          (1)  Foreclose upon or otherwise  enforce its security interest in any
               Lien on the Collateral to secure all payments and  performance of
               the Obligations in any manner permitted by law or provided for in
               the Loan Documents.

          (2)  Notify  all  obligors  under  any  of  the  Collateral  that  the
               Collateral  has been  assigned  to Lender (or to  another  Person
               designated by Lender) and that allpayments on that Collateral are
               to be made  directly  to Lender (or such other  Person);  settle,

<PAGE>

               compromise  or  release,  in whole or in part,  any  amounts  any
               obligor  or  Investor  owes  on any of the  Collateral  on  terms
               acceptable to Lender; enforce payment and prosecute any action or
               proceeding  involving  any  of  the  Collateral;  and  where  any
               Collateral  is in  default,  foreclose  on and  enforce any Liens
               securing that Collateral in any manner  permitted by law and sell
               any property acquired as a result of those enforcement actions.

          (3)  Prepare and submit for filing UCC amendment statements evidencing
               the  assignment  to  Lender  or its  designee  of  any  financing
               statement filed in connection with any item of Collateral.

          (4)  Act,  or  contract  with a  third  party  to act,  at  Borrower's
               expense,  as  servicer or  subservicer  of  Collateral  requiring
               servicing,   and  perform  all  obligations  required  under  any
               Collateral,    including   Servicing   Contracts   and   Purchase
               Commitments.

          (5)  Require  Borrower to assemble  and make  available  to Lender the
               Collateral   and  all  related  books  and  records  at  a  place
               designated by Lender.

          (6)  Enter onto  property  where any  Collateral  or related books and
               records are located  and take  possession  of those items with or
               without  judicial  process;  and obtain access to Borrower's data
               processing equipment,  computer hardware and software relating to
               the Collateral  and use all of the foregoing and the  information
               contained in the foregoing in any manner  Lender deems  necessary
               for the purpose of  effectuating  its rights under this Agreement
               and any other Loan Document.

          (7)  Before  the  disposition  of  the  Collateral,   prepare  it  for
               disposition  in  any  manner  and  to  the  extent  Lender  deems
               appropriate.

          (8)  Exercise all rights and remedies of a secured  creditor under the
               Uniform  Commercial  Code of Minnesota or other  applicable  law,
               including selling or otherwise disposing of all or any portion of
               the Collateral at one or more public or private sales, whether or
               not the  Collateral is present at the place of sale,  for cash or
               credit or future  delivery,  on terms and  conditions  and in the
               manner  as  Lender  may  determine,   including  sale  under  any
               applicable Purchase Commitment.  Borrower waives any right it may
               have to prior  notice  of the sale of all or any  portion  of the
               Collateral to the extent allowed by applicable  law. If notice is
               required under applicable law, Lender will give Borrower not less
               than 10 days'  notice  of any  public  sale or of the date  after
               which any private sale may be held. Borrower agrees that 10 days'
               notice  is  reasonable  notice.  Lender  may,  without  notice or
               publication, adjourn any public or private sale one or more times
               by announcement at the time and place fixed for the sale, and the
               sale  may  be  held  at  any  time  or  place  announced  at  the
               adjournment.  In the case of a sale of all or any  portion of the
               Collateral on credit or for future delivery,  the Collateral sold
               on those terms may be retained by Lender until the purchaser pays
               the selling price or takes  possession of the Collateral.  Lender
               has no liability  to Borrower if a purchaser  fails to pay for or
               take possession of the Collateral sold on those terms, and in the
               case of any such failure,  Lender may sell the  Collateral  again
               upon notice complying with this Section.

          (9)  Instead of or in  conjunction  with  exercising the power of sale
               authorized  by Section (8),  Lender may proceed by suit at law or
               in equity to collect  all amounts  due on the  Collateral,  or to
               foreclose  Lender's  Lien on and sell all or any  portion  of the
               Collateral  pursuant  to a  judgment  or  decree  of a  court  of
               competent jurisdiction.

<PAGE>

          (10) Proceed against  Borrower on the Warehousing  Note or against any
               Guarantor under the Guaranty.

          (11) Retain all excess proceeds from the sale or other  disposition of
               the Collateral,  and apply them to the payment of the Obligations
               under Section 10.3.

10.2 (d)  Lender  will  incur  no  liability  as a  result  of the  commercially
          reasonable  sale or other  disposition  of all or any  portion  of the
          Collateral  at any  public  or  private  sale  or  other  disposition.
          Borrower  waives  (to the extent  permitted  by law) any claims it may
          have  against  Lender  arising by reason of the fact that the price at
          which the  Collateral  may have  been sold at a private  sale was less
          than the price that Lender might have  obtained at a public  sale,  or
          was less  than the  aggregate  amount of the  outstanding  Warehousing
          Advances,  accrued and unpaid interest on those Warehousing  Advances,
          and unpaid fees,  even if Lender  accepts the first offer received and
          does not  offer the  Collateral  to more  than one  offeree.  Borrower
          agrees  that any sale of  Collateral  under  the  terms of a  Purchase
          Commitment,  or  any  other  disposition  of  Collateral  arranged  by
          Borrower,  whether  before  or  after  the  occurrence  of an Event of
          Default, will be deemed to have been made in a commercially reasonable
          manner.

10.2 (e)  Borrower  acknowledges  that Mortgage  Loans are  collateral of a type
          that is the subject of widely  distributed  standard price  quotations
          and that  Mortgage-backed  Securities are collateral of a type that is
          customarily sold on a recognized market.  Borrower waives any right it
          may have to prior notice of the sale of Pledged Securities, and agrees
          that Lender may purchase  Pledged  Loans and Pledged  Securities  at a
          private sale of such Collateral.

10.2 (f)  Borrower  specifically waives and releases (to the extent permitted by
          law) any  equity  or  right  of  redemption,  stay or  appraisal  that
          Borrower has or may have under any rule of law or statute now existing
          or adopted after the date of this Agreement,  and any right to require
          Lender to (1)  proceed  against any  Person,  (2)  proceed  against or
          exhaust  any of the  Collateral  or pursue  its  rights  and  remedies
          against the  Collateral  in any  particular  order,  or (3) pursue any
          other  remedy  within its power.  Lender is not  required  to take any
          action to preserve any rights of Borrower against holders of mortgages
          having  priority to the Lien of any  Mortgage  or  Security  Agreement
          included in the  Collateral or to preserve  Borrower's  rights against
          other prior parties.

10.2 (g)  Lender may, but is not obligated to, advance any sums or do any act or
          thing  necessary to uphold or enforce the Lien and priority of, or the
          security  intended  to  be  afforded  by,  any  Mortgage  or  Security
          Agreement included in the Collateral,  including payment of delinquent
          taxes or assessments and insurance  premiums.  All advances,  charges,
          costs  and  expenses,   including   reasonable   attorneys'  fees  and
          disbursements,  incurred  or paid by Lender in  exercising  any right,
          power or remedy conferred by this Agreement,  or in the enforcement of
          this Agreement, together with interest on those amounts at the Default
          Rate,  from the time paid by Lender  until  repaid  by  Borrower,  are
          deemed  to be  principal  outstanding  under  this  Agreement  and the
          Warehousing Note.

10.2 (h)  No failure or delay on the part of Lender to exercise any right, power
          or remedy provided in this Agreement or under any other Loan Document,
          at law or in equity,  will operate as a waiver of that right, power or
          remedy. No single or partial exercise by Lender of any right, power or
          remedy  provided under this  Agreement or any other Loan Document,  at
          law or in  equity,  precludes  any other or further  exercise  of that
          right,  power, or remedy by Lender,  or Lender's exercise of any other
          right,  power or remedy.  Without  limiting  the  foregoing,  Borrower

<PAGE>

          waives all defenses  based on the statute of limitations to the extent
          permitted  by law.  The remedies  provided in this  Agreement  and the
          other Loan  Documents  are  cumulative  and are not  exclusive  of any
          remedies provided at law or in equity.

10.2 (i)  Borrower  grants  Lender  a  license  or other  right to use,  without
          charge, Borrower's computer programs, other programs, labels, patents,
          copyrights,  rights of use of any name,  trade  secrets,  trade names,
          trademarks, service marks and advertising matter, or any property of a
          similar nature,  as it pertains to the Collateral,  in advertising for
          sale and selling any of the Collateral and Borrower's rights under all
          licenses and all other  agreements  related to the foregoing  inure to
          Lender's benefit until the Obligations are paid in full.

10.3. Application of Proceeds

Lender may apply the proceeds of any sale,  disposition or other  enforcement of
Lender's  Lien on all or any  portion of the  Collateral  to the  payment of the
Obligations  in the order Lender  determines  in its sole  discretion.  From and
after  the  indefeasible  payment  to  Lender  of all of  the  Obligations,  any
remaining  proceeds  of the  Collateral  will  be paid  to  Borrower,  or to its
successors or assigns,  or as a court of competent  jurisdiction may direct.  If
the proceeds of any sale, disposition or other enforcement of the Collateral are
insufficient to cover the costs and expenses of that sale,  disposition or other
enforcement and payment in full of all  Obligations,  Borrower is liable for the
deficiency.

10.4. Lender Appointed Attorney-in-Fact

Borrower appoints Lender its attorney-in-fact,  with full power of substitution,
for  the  purpose  of  carrying  out  the  provisions  of  this  Agreement,  the
Warehousing  Note and the  other  Loan  Documents  and  taking  any  action  and
executing any instruments that Lender deems necessary or advisable to accomplish
that  purpose.   Borrower's   appointment  of  Lender  as   attorney-in-fact  is
irrevocable and coupled with an interest. Without limiting the generality of the
foregoing,  Lender may give notice of its Lien on the  Collateral to any Person,
either in  Borrower's  name or in its own name,  endorse  all  Pledged  Loans or
Pledged  Securities  payable  to the  order of  Borrower,  change or cause to be
changed the  book-entry  registration  or name of  subscriber or Investor on any
Pledged  Security,  prepare  and  submit  for  filing  Uniform  Commercial  Code
amendment  statements  with  respect to any Uniform  Commercial  Code  financing
statements  filed in connection with any item of Collateral or receive,  endorse
and  collect  all  checks  made  payable to the order of  Borrower  representing
payment on account of the  principal  of or interest on, or the proceeds of sale
of, any of the Pledged Loans or Pledged  Securities  and give full discharge for
those transactions.

10.5.    Right of Set-Off

If Borrower  defaults in the payment of any Obligation or in the  performance of
any of its duties under the Loan  Documents,  Lender may,  without  Notice to or
demand on Borrower (which Notice or demand Borrower expressly waives),  set-off,
appropriate or apply any property of Borrower held at any time by Lender, or any
indebtedness  at any time  owed by  Lender to or for the  account  of  Borrower,
against the Obligations, whether or not those Obligations have matured.

                                End of Article 10

<PAGE>

11. MISCELLANEOUS

11.1. Notices

Except where  telephonic  or facsimile  notice is expressly  authorized  by this
Agreement,  all  communications  required or permitted to be given or made under
this  Agreement  ("Notices")  must be in  writing  and  must  be sent by  manual
delivery,  overnight courier or United States mail (postage prepaid),  addressed
as follows (or at such other  address as may be  designated by it in a Notice to
the other):

                  If to Borrower:           Matrix Capital Markets, Inc.
                                            1380 Lawrence Street, Suite 1400
                                            Denver, CO 80204
                                            Attention: Carl G. de Rozario,
                                                       President/CEO
                                            Facsimile: (303) 825-8202

                  If to Lender:             Residential Funding Corporation
                                            1646 North California Boulevard,
                                            Suite 400
                                            Walnut Creek, CA 94596
                                            Attention: Mitchell Nomura, Director
                                            Facsimile: (925) 935-6424

All  periods of Notice  will be  measured  from the date of delivery if manually
delivered,  from the first  Business  Day after the date of  sending  if sent by
overnight  courier  or from 4 days  after the date of  mailing if sent by United
States mail,  except that Notices to Lender under  Article 2 and Section 3.3 (f)
shall be deemed to have  been  given  only when  actually  received  by  Lender.
Borrower  authorizes  Lender  to accept  Borrower's  bailee  pledge  agreements,
Warehousing Advance Requests,  shipping requests, wire transfer instructions and
security delivery instructions  transmitted to Lender by facsimile or RFConnects
Delivery,  and those  documents,  when  transmitted to Lender by facsimile or by
RFConnects Delivery, have the same force and effect as the originals.

11.2. Reimbursement Of Expenses; Indemnity

Borrower must: (a) pay Lender a document  production fee in connection  with the
preparation  and  negotiation  of  this  Agreement;   (b)  pay  such  additional
documentation  production fees as Lender may require and all out-of-pocket costs
and  expenses  of  Lender,   including  reasonable  fees,  service  charges  and
disbursements  of  counsel  to Lender  (including  allocated  costs of  internal
counsel),  in connection with the amendment,  enforcement and  administration of
this Agreement,  the Warehousing  Note, and other Loan Documents and the making,
repayment and payment of interest on the  Warehousing  Advances;  (c) indemnify,
pay, and hold harmless Lender and any other holder of the Warehousing  Note from
and against,  all present and future stamp,  documentary and other similar taxes
with  respect to the  foregoing  matters and save Lender and any other holder of
the  Warehousing  Note  harmless from and against any and all  liabilities  with
respect to or  resulting  from any delay or omission to pay such taxes;  and (d)
indemnify,  pay and hold harmless  Lender and all of its  Affiliates,  officers,
directors, employees or agents and any subsequent holder of the Warehousing Note
(collectively  called  the  "Indemnitees")  from and  against  all  liabilities,
obligations,  losses, damages, penalties,  judgments, suits, costs, expenses and
disbursements of every kind or nature whatsoever  (including the reasonable fees
and  disbursements of counsel to the Indemnitees  (including  allocated costs of
internal  counsel)  in  connection  with any  investigative,  administrative  or
judicial  proceeding,  whether or not the  Indemnitees  have been  designated as
parties to such  proceeding)  that may be imposed upon,  incurred by or asserted
against  such  Indemnitees  in any manner  relating  to or  arising  out of this

<PAGE>

Agreement,  the  Warehousing  Note,  or any other  Loan  Document  or any of the
transactions  contemplated by this Agreement, the Warehousing Note and the other
Loan  Documents  ("Indemnified  Liabilities"),   except  that  Borrower  has  no
obligation under this Agreement with respect to Indemnified  Liabilities arising
from the gross negligence or willful misconduct of any such Indemnitees.  To the
extent that the undertaking to indemnify,  pay and hold harmless as set forth in
the preceding  sentence may be unenforceable  because it is violative of any law
or public  policy,  Borrower  must  contribute  the maximum  portion  that it is
permitted  to  pay  and  satisfy  under   applicable  law  to  the  payment  and
satisfaction of all Indemnified  Liabilities  incurred by the Indemnitees or any
of them.  The  agreement  of Borrower  contained  in this  Article  survives the
expiration  or  termination  of this  Agreement  and the  payment in full of the
Warehousing Note. Attorneys' fees and disbursements incurred in enforcing, or on
appeal from, a judgment under this Agreement are recoverable separately from and
in addition to any other amount  included in such  judgment,  and this clause is
intended to be severable  from the other  provisions  of this  Agreement  and to
survive and not be merged into such judgment.

11.3.    Financial Information

All financial  statements  and reports  furnished to Lender under this Agreement
must be prepared in accordance  with GAAP,  applied on a basis  consistent  with
that  applied in preparing  the  financial  statements  as at the end of and for
Borrower's most recent fiscal year (except to the extent  otherwise  required to
conform to good accounting practice).

11.4. Terms Binding Upon Successors; Survival of Representations

The terms and  provisions  of this  Agreement  are binding upon and inure to the
benefit of Borrower,  Lender and their respective successors and assigns. All of
Borrower's  representations,  warranties,  covenants and agreements  survive the
making of any Warehousing Advance, and except where a longer period is set forth
in this Agreement, remain effective for as long as the Warehousing Commitment is
outstanding or there remain any Obligations to be paid or performed.

11.5. Assignment

Borrower cannot assign this Agreement. Lender may at any time, without Notice to
or the  consent  of  Borrower,  transfer  or  assign,  in whole or in part,  its
interest in this Agreement and the Warehousing Note along with Lender's security
interest in any of the  Collateral,  and any assignee of Lender may enforce this
Agreement,  the  Warehousing  Note and its security  interest in the  Collateral
assigned.

11.6. Amendments

Except as  otherwise  provided  in this  Agreement,  this  Agreement  may not be
amended,  modified  or  supplemented  unless  the  amendment,   modification  or
supplement is set forth in a writing signed by both Borrower and Lender.

11.7. Governing Law

This  Agreement  and the other Loan  Documents  are  governed by the laws of the
State of Minnesota, without reference to its principles of conflicts of laws.

<PAGE>

11.8. Participations

Lender may at any time sell,  assign or grant  participations  in, or  otherwise
transfer to any other Person  ('Participant"),  all or part of the  Obligations.
Without   limiting   Lender's   exclusive  right  to  collect  and  enforce  the
Obligations,  Borrower  agrees  that  each  participation  will  give  rise to a
debtor-creditor  relationship between Borrower and the Participant, and Borrower
authorizes  each  Participant,  upon the  occurrence of an Event of Default,  to
proceed  directly by right of setoff,  banker's lien, or otherwise,  against any
assets of Borrower  that may be held by that  Participant.  Borrower  authorizes
Lender to disclose to prospective  and actual  Participants  all  information in
Lender's possession concerning Borrower, this Agreement and the Collateral.

11.9. Relationship of the Parties

This Agreement provides for the making and repayment of Warehousing  Advances by
Lender  (in its  capacity  as a  lender)  and  Borrower  (in its  capacity  as a
borrower), for the payment of interest on those Warehousing Advances and for the
payment of certain fees by Borrower to Lender.  The relationship  between Lender
and  Borrower  is limited to that of creditor  and secured  party on the part of
Lender and of debtor on the part of Borrower.  The  provisions of this Agreement
and the other Loan  Documents for compliance  with  financial  covenants and the
delivery of financial statements and other operating reports are intended solely
for the  benefit of Lender to protect  its  interest  as a creditor  and secured
party.  Nothing in this  Agreement  creates or may be construed as permitting or
obligating  Lender to act as a financial or business  advisor or  consultant  to
Borrower,  as permitting or obligating  Lender to control Borrower or to conduct
Borrower's  operations,  as creating  any  fiduciary  obligation  on the part of
Lender to Borrower,  or as creating any joint  venture,  agency,  partnership or
other  relationship  between  Lender and Borrower  other than as explicitly  and
specifically stated in the Loan Documents. Borrower acknowledges that it has had
the opportunity to obtain the advice of experienced counsel of its own choice in
connection  with the  negotiation  and  execution of the Loan  Documents  and to
obtain the advice of that counsel  with respect to all matters  contained in the
Loan   Documents,   including  the  waivers  of  jury  trial  and  of  punitive,
consequential, special or indirect damages contained in Sections 11.15 and 11.6,
respectively.  Borrower further acknowledges that it is experienced with respect
to financial and credit  matters and has made its own  independent  decisions to
apply to Lender for credit and to execute and deliver this Agreement.

11.10. SeverabiIity

If any provision of this Agreement is declared to be illegal or unenforceable in
any respect,  that  provision is null and void and of no force and effect to the
extent of the illegality or  unenforceability,  and does not affect the validity
or enforceability of any other provision of the Agreement.

11.11. Consent to Credit References

Borrower  consents to the disclosure of information  regarding  Borrower and its
Subsidiaries  and their  relationships  with  Lender to  Persons  making  credit
inquiries  to Lender.  This  consent is  revocable  by Borrower at any time upon
Notice to Lender as provided in Section 11.1.

11.12. Counterparts

This Agreement may be executed in any number of counterparts, each of which will
be deemed an original, but all of which together constitute but one and the same
instrument.

11.13. Entire Agreement

This Agreement,  the Warehousing Note and the other Loan Documents represent the
final agreement among the parties with respect to their subject matter,  and may
not be  contradicted  by evidence of prior or  contemporaneous  oral  agreements
among the parties.  There are no oral agreements  among the parties with respect
to the subject matter of this Agreement, the Warehousing Note and the other Loan
Documents.

<PAGE>

11.14. Consent to Jurisdiction

AT THE OPTION OF LENDER, THIS AGREEMENT, THE WAREHOUSING NOTE AND THE OTHER LOAN
DOCUMENTS  MAY BE  ENFORCED  IN ANY STATE OR FEDERAL  COURT  WITHIN THE STATE OF
MINNESOTA.  BORROWER CONSENTS TO THE JURISDICTION AND VENUE OF THOSE COURTS, AND
WAIVES ANY OBJECTION TO THE JURISDICTION OR VENUE OF THOSE COURTS, INCLUDING THE
OBJECTION THAT VENUE IN THOSE COURTS IS NOT CONVENIENT. ANY SUCH SUIT, ACTION OR
PROCEEDING  MAY BE COMMENCED AND  INSTITUTED BY SERVICE OF PROCESS UPON BORROWER
BY FIRST CLASS REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED
TO  BORROWER  AT ITS  ADDRESS  LAST  KNOWN TO  LENDER.  BORROWER'S  CONSENT  AND
AGREEMENT  UNDER THIS  SECTION  DOES NOT  AFFECT  LENDER'S  RIGHT TO  ACCOMPLISH
SERVICE OF PROCESS IN ANY OTHER  MANNER  PERMITTED  BY LAW OR TO COMMENCE  LEGAL
PROCEEDINGS OR OTHERWISE  PROCEED AGAINST BORROWER IN ANY OTHER  JURISDICTION OR
COURT.  IN THE EVENT BORROWER  COMMENCES ANY ACTION IN ANOTHER  JURISDICTION  OR
VENUE UNDER ANY TORT OR CONTRACT THEORY ARISING  DIRECTLY OR INDIRECTLY FROM THE
RELATIONSHIP  CREATED BY THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS,  LENDER AT
ITS OPTION MAY HAVE THE CASE  TRANSFERRED TO A STATE OR FEDERAL COURT WITHIN THE
STATE OF MINNESOTA OR, IF A TRANSFER  CANNOT BE  ACCOMPLISHED  UNDER  APPLICABLE
LAW, MAY HAVE BORROWER'S ACTION DISMISSED WITHOUT PREJUDICE.

11.15. Waiver of Jury Trial

BORROWER AND LENDER EACH PROMISES AND AGREES NOT TO ELECT A TRIAL BY JURY OF ANY
ISSUE TRIABLE OF RIGHT BY A JURY, AND FULLY WAIVES ANY RIGHT TO TRIAL BY JURY TO
THE  EXTENT  THAT ANY SUCH  RIGHT NOW  EXISTS  OR ARISES  AFTER THE DATE OF THIS
AGREEMENT.  THIS  WAIVER  OF THE  RIGHT TO TRIAL  BY JURY IS  SEPARATELY  GIVEN,
KNOWINGLY AND VOLUNTARILY,  BY BORROWER AND LENDER, AND IS INTENDED TO ENCOMPASS
EACH  INSTANCE  AND EACH  ISSUE  FOR  WHICH  THE  RIGHT  TO TRIAL BY JURY  WOULD
OTHERWISE APPLY.  LENDER AND BORROWER ARE EACH AUTHORIZED AND DIRECTED TO SUBMIT
THIS AGREEMENT TO ANY COURT HAVING  JURISDICTION OVER THE SUBJECT MATTER AND THE
PARTIES TO THIS AGREEMENT AS CONCLUSIVE  EVIDENCE OF THIS WAIVER OF THE RIGHT TO
TRIAL  BY  JURY.   FURTHER,   BORROWER  AND  LENDER  EACH   CERTIFIES   THAT  NO
REPRESENTATIVE OR AGENT OF THE OTHER PARTY, INCLUDING THE OTHER PARTY'S COUNSEL,
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, TO ANY OF ITS REPRESENTATIVES OR AGENTS
THAT THE OTHER  PARTY WILL NOT SEEK TO ENFORCE  THIS WAIVER OF RIGHT TO TRIAL BY
JURY.

11.16. Waiver of Punitive, Consequential, Special or Indirect Damages

BORROWER WAIVES ANY RIGHT IT MAY HAVE TO SEEK PUNITIVE,  CONSEQUENTIAL,  SPECIAL
OR  INDIRECT  DAMAGES  FROM  LENDER  OR ANY OF  LENDER'S  AFFILIATES,  OFFICERS,
DIRECTORS,  EMPLOYEES OR AGENTS WITH RESPECT TO ANY AND ALL ISSUES  PRESENTED IN
ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY BORROWER AGAINST LENDER
OR ANY OF LENDER'S  AFFILIATES,  OFFICERS,  DIRECTORS,  EMPLOYEES OR AGENTS WITH
RESPECT TO ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT.  THIS WAIVER OF THE RIGHT TO SEEK PUNITIVE,  CONSEQUENTIAL,
SPECIAL OR INDIRECT DAMAGES IS KNOWINGLY AND VOLUNTARILY GIVEN BY BORROWER,  AND
IS INTENDED TO  ENCOMPASS  EACH  INSTANCE  AND EACH ISSUE FOR WHICH THE RIGHT TO
SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL OR INDIRECT DAMAGES WOULD OTHERWISE APPLY.
LENDER IS AUTHORIZED  AND DIRECTED TO SUBMIT THIS  AGREEMENT TO ANY COURT HAVING
JURISDICTION  OVER THE  SUBJECT  MATTER  AND THE  PARTIES TO THIS  AGREEMENT  AS
CONCLUSIVE EVIDENCE OF THIS WAIVER OF THE RIGHT TO SEEK PUNITIVE, CONSEQUENTIAL,
SPECIAL OR INDIRECT DAMAGES.

                                End of Article 11

<PAGE>

12. DEFINITIONS

12.1. Defined Terms

Capitalized  terms  defined  below  or  elsewhere  in this  Agreement  have  the
following  meanings  or, as  applicable,  the  meanings  given to those terms in
Exhibits to this Agreement:

"Acquisition  Cost" means with respect to any Eligible  Loan,  the cash purchase
price paid by the  Borrowers  to acquire  such  Eligible  Loan minus any portion
thereof  attributable  to amounts other than  principal  payable with respect to
such Eligible Loan.

"Advance  Rate" means,  with respect to any Eligible  Loan, the Advance Rate set
forth in Exhibit H for that type of Eligible Loan.

"Affiliate" means, when used with reference to any Person, (a) each Person that,
directly or  indirectly,  controls,  is controlled by or is under common control
with, the Person referred to, (b) each Person that  beneficially  owns or holds,
directly or  indirectly,  5% or more of any class of voting Equity  Interests of
the  Person  referred  to,  (c) each  Person,  5% or more of the  voting  Equity
Interests of which is beneficially owned or held, directly or indirectly, by the
Person  referred to, and (d) each of such Person's  officers,  directors,  joint
venturers and partners, the meaning set forth in Rule 12b-2 of the General Rules
and Regulations under the Exchange Act.

"Aged Mortgage  Loans" means Mortgage Loans against which a Warehousing  Advance
has been  outstanding for longer than the Standard  Warehouse  Period,  provided
that Aged Mortgage Loans are permitted for such type of Mortgage Loan.

"Aged  Warehouse  Period" means the maximum  number of days a Warehouse  Advance
against Aged Mortgage Loans of a particular type may remaining outstanding.

"Agency  Security"  means a  Mortgage-backed  Security  issued or  guaranteed by
Fannie Mae, Freddie Mac or Ginnie Mae.

"Agreement"  means this  Warehousing  Credit and Security  Agreement,  either as
originally executed or as it may be amended, restated, renewed or replaced.

"Appraised  Property  Value" means with respect to an interest in real property,
the then current fair market value of the real property and any  improvements on
it as of recent  date  determined  in  accordance  with  Title XI of FIRREA by a
qualified  appraiser  who is a member of the  American  Institute of Real Estate
Appraisers or other group of professional appraisers.

"Approved  Custodian"  means a pool  custodian or other Person that Lender deems
acceptable,  in its sole  discretion,  to hold Mortgage Loans for inclusion in a
Mortgage Pool or to hold Mortgage Loans as agent for an Investor that has issued
a Purchase Commitment for those Mortgage Loans.

"Audited  Statement  Date"  means the date of  Borrower's  most  recent  audited
financial  statements  (and,  if  applicable,   Borrower's  Subsidiaries,  on  a
consolidated basis) delivered to Lender under this Agreement.

"Bank One" means Bank One, National Association, or any successor bank.

<PAGE>

"Bank One Prime Rate" means, as of any date of determination,  the highest prime
rate quoted by Bank One and most  recently  published by  Bloomberg  L.P. If the
prime rate for Bank One is not quoted or published  for any period,  then during
that  period  the term  'Bank  One Prime  Rate"  means the  highest  prime  rate
published in the most recent  edition of The Wall Street  Journal in its regular
column entitled "Money Rates."

"Borrower" has the meaning set forth in the first paragraph of this Agreement.

"Business  Day"  means any day other than  Saturday,  Sunday or any other day on
which national banking associations are closed for business.

"Calendar  Quarter" means the 3 month period  beginning on each January 1, April
1, July 1 or October 1.

"Cash  Collateral  Account"  means a demand  deposit  account  maintained at the
Funding Bank in Lender's name and  designated for receipt of the proceeds of the
sale or other disposition of Collateral.

"Closing Date" has the meaning set forth in the Recitals to this Agreement.

"Collateral" has the meaning set forth in Section 4.1.

"Collateral  Documents"  means,  with  respect to each  Mortgage  Loan,  (a) the
Mortgage Note, the Mortgage and all other  documents  including,  if applicable,
any Security Agreement,  executed in connection with or relating to the Mortgage
Loan; (b) as applicable, the original lender's ALTA Policy of Title Insurance or
its  equivalent,  documents  evidencing  the FHA  Commitment  to Insure,  the VA
Guaranty  or  private  mortgage  insurance,  the  appraisal,  the  Regulation  Z
statement, the environmental assessment, the engineering report, certificates of
casualty or hazard  insurance,  credit  information on the maker of the Mortgage
Note, the HUD-1 or corresponding  purchase advice, (c) any other document listed
in  Exhibit  B; and (d) any  other  document  that is  customarily  desired  for
inspection  or transfer  incidental  to the purchase of any Mortgage  Note by an
Investor or that is customarily  executed by the seller of a Mortgage Note to an
Investor.

"Committed  Purchase  Price" means for an Eligible  Loan (a) the dollar price as
set  forth in the  Purchase  Commitment  or, if the  price is not  expressed  in
dollars,  the  product  of the  Mortgage  Note  Amount  multiplied  by the price
(expressed  as a  percentage)  as set forth in the Purchase  Commitment  for the
Eligible  Loan,  or (b) if the  Eligible  Loan is to be  used to back an  Agency
Security,  the  dollar  price as set forth in a Purchase  Commitment  or, if the
price is not  expressed  in dollars  the  product of the  Mortgage  Note  Amount
multiplied by the price (expressed as a percentage) as set forth in the Purchase
Commitment for the Agency Security.

"Compliance  Certificate" means a certificate  executed on behalf of Borrower by
its chief financial  officer or its treasurer or by another officer  approved by
Lender, substantially in the form of Exhibit E.

"Credit Score" means a mortgagor's  overall consumer credit rating,  represented
by a single numeric credit score using the Fair,  Isaac consumer  credit scoring
system,  provided by a credit  repository  acceptable to Lender and the Investor
that issued the Purchase  Commitment  covering the related  Mortgage  Loan (if a
Purchase Commitment is required by Exhibit H).

"Debt" means (a) all  indebtedness  or other  obligations  of a Person that,  in
accordance  with GAAP,  would be included in  determining  total  liabilities as
shown on the  liabilities  side of a balance  sheet of the Person on the date of
determination,  plus (b) all indebtedness or other obligations of the Person for
borrowed money or for the deferred  purchase price of property or services.  For
purposes of calculating a Person's Debt, Subordinated Debt not due within 1 year
of that date and deferred taxes arising from  capitalized  excess servicing fees
and capitalized servicing rights may be excluded from a Person's indebtedness.

<PAGE>

"Default"  means the occurrence of any event or existence of any condition that,
but for the giving of Notice or the lapse of time,  would constitute an Event of
Default.

"Default Rate" means, for any Warehousing  Advance, the Interest Rate applicable
to that Warehousing Advance plus 4% per annum. If no Interest Rate is applicable
to a Warehousing  Advance,  "Default Rate" means, for that Warehousing  Advance,
the highest Interest Rate then applicable to any outstanding Warehousing Advance
plus 4% per annum.

"Depository  Benefit"  means the  compensation  received by Lender,  directly or
indirectly,  as a result of Borrower's  maintenance of Eligible  Balances with a
Designated Bank.

"Designated  Bank" means any bank designated by Lender as a Designated Bank, but
only  for as long  as  Lender  has an  agreement  under  which  Lender  receives
Depository Benefits from that bank.

"Designated  Bank Charges" means any fees,  interest or other charges that would
otherwise be payable to a Designated Bank in connection  with Eligible  Balances
maintained at the Designated Bank, including deposit insurance premiums, service
charges and any other  charges that may be imposed by  governmental  authorities
from time to time.

"Discontinued Loan" has the meaning set forth in the GMAC-RFC Client Guide.

"Earnings Allowance " has the meaning set forth in Section 3.1(b).

"Earnings Credit " has the meaning set forth in Section 3.1(b).

"Electronic Advance Request" means an electronic transmission through RFConnects
Delivery containing the same information as Exhibit A to this Agreement.

"Electronic  Tracking Agreement" means an Electronic Tracking Agreement,  on the
form  prescribed by Lender,  among  Borrower,  Lender,  MERS and MERCORP,  Inc.,
pursuant  to which  Lender  will have the  authority  to,  among  other  things,
withdraw a Mortgage  from the MERS system,  if either the Mortgage Loan has been
registered on the MERS system naming Borrower as servicer or subservicer, or the
Mortgage Loan has not yet been registered on the MERS system.

"Eligible  Balances"  means all funds of or  maintained  by  Borrower  (and,  if
applicable,  Borrower's Subsidiaries) in demand deposit or time deposit accounts
at a Designated Bank, minus balances to support float,  reserve requirements and
any other  reductions that may be imposed by governmental  authorities from time
to time.

"Eligible  Loan"  means a  Mortgage  Loan  that  satisfies  the  conditions  and
requirements set forth in Exhibit H.
"Eligible  Mortgage  Pool"  means a  Mortgage  Pool for  which  (a) an  Approved
Custodian  has issued its  initial  certification,  (b) there  exists a Purchase
Commitment  covering  the  Agency  Security  to be  issued  on the basis of that
certification and (c) the Agency Security will be delivered to Lender.

"Equity  Interests"  means  all  shares,  interests,   participations  or  other
equivalents,  however,  designated,  of or in a  Person  (other  than a  natural
person),  whether or not voting,  including common stock,  membership interests,
warrants,   preferred   stock,   convertible   debentures  and  all  agreements,
instruments and documents convertible, in whole or in part, into any one or more
of the foregoing.

<PAGE>

"ERISA" means the Employee  Retirement Income Security Act of 1974 and all rules
and regulations  promulgated under that statute,  as amended,  and any successor
statute, rules, and regulations.

"ERISA Affiliate" means any trade or business (whether or not incorporated) that
is a member of a group of which  Borrower  is a member  and that is treated as a
single employer under Section 414 of the Internal Revenue Code.

"Event of Default"  means any of the  conditions  or events set forth in Section
10.1.

"Exchange  Act"  means  the  Securities  Exchange  Act of 1934 and all rules and
regulations  promulgated  under that  statute,  as  amended,  and any  successor
statute, rules, and regulations.

"Exhibit B" means  Exhibit B-SF or  B-NP/SP/SML,  as  applicable  to the type of
Eligible Loan against which a Warehousing Advance is to be made.

"Fair Market Value" means,  at any time for an Eligible Loan or a related Agency
Security (if the Eligible  Loan is to be used to back an Agency  Security) as of
any date of determination, (a) the Committed Purchase Price if the Eligible Loan
is covered  by a  Purchase  Commitment  from  Fannie  Mae or Freddie  Mac or the
Eligible Loan is to be exchanged for an Agency Security and that Agency Security
is covered by a Purchase  Commitment  from an Investor,  or (b)  otherwise,  the
market price for such  Eligible  Loan or Agency  Security,  determined by Lender
based on market data for similar  Mortgage  Loans or Agency  Securities and such
other criteria as Lender deems appropriate in its sole discretion.

"Fannie  Mae" means  Fannie  Mae, a  corporation  created  under the laws of the
United States, and any successor corporation or other entity.

"FHA" means the Federal Housing Administration and any successor agency or other
entity.

"FICA"  means  the  Federal  Insurance  Contributions  Act  and  all  rules  and
regulations  promulgated  under that  statute,  as  amended,  and any  successor
statute, rules and regulations.

"FIRREA" means the Financial  Institutions Reform,  Recovery and Enforcement Act
of 1989 and all  rules  and  regulations  promulgated  under  that  statute,  as
amended, and any successor statute, rules, and regulations.

"First  Mortgage"  means a Mortgage  that  constitutes  a first Lien on the real
property covered by the Mortgage.

"First Mortgage Loan" means a Mortgage Loan secured by a First Mortgage.

"Freddie  Mac" means  Freddie Mac, a  corporation  created under the laws of the
United States, and any successor corporation or other entity.

"Funding  Bank"  means  Bank One or any  other  bank  designated  by Lender as a
Funding Bank.

"Funding  Bank  Agreement"  means a letter  agreement on the form  prescribed by
Lender between the Funding Bank and Borrower  authorizing Lender's access to the
Operating Account .

"GAAP" means generally accepted accounting  principles set forth in opinions and
pronouncements of the Accounting  Principles Board and the American Institute of
Certified  Public  Accountants  and  in  statements  and  pronouncements  of the
Financial   Accounting   Standards   Board,   or  in  opinions,   statements  or
pronouncements  of any other  entity  approved by a  significant  segment of the
accounting profession,  which are applicable to the circumstances as of the date
of determination.

<PAGE>

"Gestation  Agreement" means an agreement under which Borrower agrees to sell or
finance (a) a Mortgage  Loan prior to the date of purchase by an Investor or (b)
a  Mortgage  Pool  prior to the date a  Mortgage-backed  Security  backed by the
Mortgage Pool is issued.

"Ginnie Mae" means the Government  National Mortgage  Association,  an agency of
the United States government, and any successor agency or other entity.

"Ginnie Mae Early  Buyout Loan" means a delinquent  Mortgage  Loan  purchased by
Borrower out of a Ginnie Mae mortgage pool.

"GMAC-RFC  Client  Guide" means the  applicable  loan  purchase  guide issued by
Lender, as the same may be amended or replaced.

"Guarantor"  means,  individually  and  collectively,  Matrix  Bancorp,  Inc., a
Colorado corporation, and any other Person that after the date of this Agreement
guarantees all or any portion of Borrower's Obligations.

"Guaranty" means a guaranty of all or any portion of Borrower's Obligations.  If
more than one Guaranty is executed and delivered to Lender,  the term "Guaranty"
means each of the Guaranties and all of them.

"Hedging  Arrangements"  means,  with respect to any Person,  any  agreements or
other arrangements  (including interest rate swap agreements,  interest rate cap
agreements  and forward  sale  agreements)  entered  into to protect that Person
against changes in interest rates or the market value of assets.

"HUD" means the Department of Housing and Urban  Development,  and any successor
agency or other entity.

"Indemnified Liabilities" has the meaning set forth in Section 11.2.

"Indemnitees" has the meaning set forth in Section 11.2.

"Interest  Rate"  means,  for any  Warehousing  Advance,  the  floating  rate of
interest specified for that Warehousing Advance in Exhibit H.

"Interim  Statement Date" means the date of the most recent unaudited  financial
statements  of Borrower  (and,  if  applicable,  Borrower's  Subsidiaries,  on a
consolidated basis) delivered to Lender under this Agreement.

"Internal Revenue Code" means the Internal Revenue Code of 1986, Title 26 of the
United States Code, and all rules,  regulations and interpretations issued under
those statutory provisions,  as amended, and any subsequent or successor federal
income tax law or laws, rules, regulations and interpretations.

"Investment  Company Act" means the Investment Company Act of 1940 and all rules
and regulations  promulgated under that statute,  as amended,  and any successor
statute, rules, and regulations.

"Investor"  means Fannie Mae, Freddie Mac or a financially  responsible  private
institution  that Lender  deems  acceptable,  in its sole  discretion,  to issue
Purchase Commitments with respect to a particular category of Eligible Loans.

<PAGE>

"Lender" has the meaning set forth in the first paragraph of this Agreement.

"Leverage Ratio" means the ratio of a Person's (and, if applicable, the Person's
Subsidiaries,  on a consolidated basis) Debt to Tangible Net Worth. For purposes
of  calculating  a  Person's   Leverage   Ratio,   Debt  arising  under  Hedging
Arrangements,  to the extent of assets arising under those Hedging Arrangements,
may be excluded from a Person's Debt.

"LIBOR"  means,  for each week,  the rate of interest per annum that is equal to
the  arithmetic  mean of the U.S.  Dollar London  Interbank  Offered Rates for 1
month periods of certain U.S. banks as of 11:00 a.m.  (London time) on the first
Business  Day of each  week on which the  London  Interbank  market is open,  as
published by Bloomberg L.P. If those interest rates are not offered or published
for any period, then during that period LIBOR means the London Interbank Offered
Rate for 1 month periods as published in The Wall Street  Journal in its regular
column  entitled  "Money Rates" on the first  Business Day of each week on which
the London Interbank market is open.

"Lien"  means any lien,  mortgage,  deed of trust,  pledge,  security  interest,
charge or encumbrance of any kind (including any conditional sale or other title
retention  agreement,  any  lease in the  nature  of such an  agreement  and any
agreement to give any security interest).

"Liquid  Assets" means the following  assets owned by a Person as of any date of
determination:  (a) unrestricted and unencumbered  cash, funds on deposit in any
bank located in the United States,  investment  grade  commercial  paper,  money
market funds, or marketable securities;  and (b) the excess, if any, of Mortgage
Loans and  Mortgage-backed  Securities  held for sale (valued in accordance with
GAAP) over the outstanding  aggregate principal amount of any Debt against which
those Mortgage Loans or Mortgage-backed Securities are pledged as collateral.

"Liquidity  Ratio"  means the  ratio of a  Person's  (and,  if  applicable,  the
Person's  Subsidiaries,  on a consolidated  basis) Liquid Assets to Tangible Net
Worth.

"Loan Documents" means this Agreement,  the Warehousing Note, the Guaranty,  any
agreement of Borrower relating to Subordinated Debt, any Security Agreement,  if
applicable,  and each  other  document,  instrument  or  agreement  executed  by
Borrower in connection with any of those documents,  instruments and agreements,
as originally executed or as any of the same may be amended,  restated,  renewed
or replaced.
"Loan Package Fee " has the meaning set forth in Section 3.5.

"Loan-to-Value Ratio" means, for any Mortgage Loan, the ratio of (a) the maximum
amount that may be borrowed under the Mortgage Loan (whether or not borrowed) at
the time of origination,  II? us the Mortgage Note Amounts of all other Mortgage
Loans secured by the related  Property,  to (b) the Appraised  Property Value of
the related Property.

"Manufactured  Home"  means a  structure  that is built on a  permanent  chassis
(steel frame) with the wheel  assembly  necessary for  transportation  in one or
more sections to a permanent site or semi-permanent site.

"Margin  Stock" has the  meaning  assigned to that term in  Regulation  U of the
Board of Governors of the Federal Reserve System, as amended.

"MERS" means Mortgage Electronic  Registrations  Systems, Inc. and any successor
entity.

<PAGE>

"Miscellaneous  Fees and  Charges"  means  the  miscellaneous  fees set forth on
Lender's collateral  operations fees schedule (either as originally delivered to
Borrower or as it may be amended,  restated,  renewed or replaced after the date
of this  Agreement) and all  miscellaneous  disbursements,  charges and expenses
incurred  by or on behalf of  Lender  for the  handling  and  administration  of
Warehousing  Advances and  Collateral,  including  costs for Uniform  Commercial
Code, tax lien and judgment searches  conducted by Lender,  filing fees, charges
for wire transfers and check processing  charges,  charges for security delivery
fees,  charges for overnight  delivery of Collateral to Investors,  Funding Bank
service fees and overdraft charges and Designated Bank Charges.

"Mortgage"  means a mortgage or deed of trust on real  property that is improved
and  substantially  completed  (including  real property to which a Manufactured
Home has been  affixed in a manner  such that the Lien of a mortgage  or deed of
trust would attach to the Manufactured Home under applicable real property law).

"Mortgage-backed  Securities"  means  securities  that are secured or  otherwise
backed by Mortgage Loans.

"Mortgage  Loan" means any loan  evidenced  by a Mortgage  Note and secured by a
Mortgage and, if applicable, a Security Agreement.

"Mortgage Note" means a promissory note secured by one or more Mortgages and, if
applicable, one or more Security Agreements.

"Mortgage  Note  Amount"  means,  as of any  date  of  determination,  the  then
outstanding  and unpaid  principal  amount of a Mortgage Note (whether or not an
additional amount is available to be drawn under that Mortgage Note).

"Mortgage  Pool" means a pool of one or more Pledged Loans on the basis of which
a Mortgage-backed Security is to be issued.

"Multiemployer  Plan"  means  a  "multiemployer  plan"  as  defined  in  Section
4001(a)(3) of ERISA, to which either Borrower or any ERISA Affiliate of Borrower
has any obligation with respect to its employees.

"Non-performing  Mortgage  Loan" means a Mortgage Loan with respect to which any
payment of principal or interest is more than 60 days  delinquent,  but which is
not in the process of foreclosure.

"Non-Usage Fee" has the meaning set forth in Section 3.4.

"Notices" has the meaning set forth in Section 11.1.

"Obligations" means all indebtedness, obligations and liabilities of Borrower to
Lender and Lender's Subsidiaries (whether now existing or arising after the date
of this  Agreement,  voluntary  or  involuntary,  joint or  several,  direct  or
indirect,  absolute or contingent,  liquidated or unliquidated,  or decreased or
extinguished  and later  increased and however  created or incurred),  including
Borrower's  obligations  and  liabilities to Lender under the Loan Documents and
disbursements made by Lender for Borrower's account.

"Operating  Account"  means a demand deposit  account  maintained at the Funding
Bank in Borrower's name and designated for funding that portion of each Eligible
Loan not funded by a Warehousing Advance made against that Eligible Loan and for
returning  any excess  payment  from an Investor  for a Pledged  Loan or Pledged
Security.

"Overdraft Advance" has the meaning set forth in Section 3.9.

"Participant" has the meaning set forth in Section 11.8.

<PAGE>

"Performing  Mortgage  Loan"  means a  Mortgage  Loan that is  current as to all
payments of principal  and interest and which is not a  Sub-performing  Mortgage
Loan.

"Person" means and includes natural  persons,  corporations,  limited  liability
companies,  limited  liability  partnerships,   limited  partnerships,   general
partnerships,  joint stock companies, joint ventures,  associations,  companies,
trusts,  banks,  trust  companies,   land  trusts,   business  trusts  or  other
organizations,  whether or not legal entities,  and governments and agencies and
political subdivisions of those governments.

"Plan" means each  employee  benefit  plan  (whether in existence on the date of
this  Agreement  or  established  after that  date),  as that term is defined in
Section 3 of  ERISA,  maintained  for the  benefit  of  directors,  officers  or
employees of Borrower or any ERISA Affiliate.

"Pledged Assets" means, collectively, Pledged Loans, and Pledged Securities.

"Pledged Hedging Accounts" has the meaning set forth in Section 4.1 (g).

"Pledged Hedging Arrangements" has the meaning set forth in Section 4.1 (g).

"Pledged Loans" has the meaning set forth in Section 4.1 (b).

"Pledged Securities" has the meaning set forth in Section 4.1 (c).

"Prime Mortgage Loan" has the meaning set forth in Exhibit H.

"Prohibited  Transaction"  has the  meanings  set forth for such term in Section
4975  of  the  Internal  Revenue  Code  and  Section  406  of  ERISA.  "Purchase
Commitment" means a written  commitment,  in form and substance  satisfactory to
Lender,  issued in favor of Borrower by an  Investor  under which that  Investor
commits to purchase Mortgage Loans or Mortgage-backed Securities.

"Release Amount" has the meaning set forth in Section 4.3 (f).

"RFC Base Rate" means the greater of LIBOR or 2.25% per annum.

"RFConnects   Delivery"  means  Lender's  proprietary  service  to  support  the
electronic  exchange  of  information  between  Lender and  Borrower,  including
Advance  Requests,  shipping  requests,  payoff  requests,  activity reports and
exception reports. \

"RFConnects  Pledge  Agreement"  means an  agreement  (on the then  current form
prescribed by Lender) granting Lender a security  interest in Mortgage Loans for
which Borrower has requested Warehousing Advances using RFConnects Delivery.

"Second  Mortgage"  means a  Mortgage  that  constitutes  a  second  Lien on the
property covered by the Mortgage.

"Second Mortgage Loan" means a Mortgage Loan secured by a Second Mortgage.

"Security  Agreement" means a security agreement or other agreement that creates
a Lien on personal property,  including  furniture,  fixtures and equipment,  to
secure repayment of a Mortgage Loan.

"Servicing Contract" means, with respect to any Person, the arrangement, whether
or not in writing,  under  which that  Person has the right to service  Mortgage
Loans.

<PAGE>

"Servicing  Portfolio" means, as to any Person,  the unpaid principal balance of
Mortgage  Loans  serviced by that Person under  Servicing  Contracts,  minus the
principal  balance of all  Mortgage  Loans that are  serviced by that Person for
others under subservicing arrangements.

"Standard  Warehouse Period" means, for any Mortgage Loan, the maximum number of
days a  Warehousing  Advance  against  that type of  Mortgage  Loan,  other than
against an Aged Mortgage Loan, may remain  outstanding,  as set forth in Exhibit
H.

"Statement Date" means the Audited Statement Date or the Interim Statement Date,
as applicable.

"Sublimit"  means the aggregate amount of Warehousing  Advances  (expressed as a
dollar amount or as a percentage of the Warehousing  Commitment  Amount) that is
permitted to be  outstanding at any one time against a specific type of Eligible
Loan.

"Subordinated  Debt" means (a) all  indebtedness  of Borrower for borrowed money
that is effectively  subordinated  in right of payment to all present and future
Obligations  either  (1) under a  Subordination  of Debt  Agreement  on the form
prescribed  by Lender or (2) otherwise on terms  acceptable  to Lender,  and (b)
solely for  purposes  of Section  8.5,  all  indebtedness  of  Borrower  that is
required to be subordinated by Sections 5.1 (b) and 7.10.

"Sub-performing  Mortgage  Loan"  means a  Mortgage  Loan that is  current as to
principal and interest for the most recently required payment under the Mortgage
Note, past due with respect to previous  payments of principal  and/or interest,
which may be subject to a  forbearance  agreement  for missed  payments,  or the
documentation  for the Mortgage Loan has been modified.  "Subsidiary"  means any
corporation,  partnership,  association or other  business  entity in which more
than 50% of the shares of stock or other ownership interests having voting power
for the election of directors,  managers,  trustees or other Persons  performing
similar  functions  is at the time  owned or  controlled  by any  Person  either
directly or indirectly through one or more Subsidiaries of that Person.

"Tangible  Net Worth" means the excess of a Person's  (and, if  applicable,  the
Person's  Subsidiaries,  on  a  consolidated  basis)  total  assets  over  total
liabilities as of the date of determination,  each determined in accordance with
GAAP applied in a manner consistent with the financial statements referred to in
Section 5.1 (a)(6), plus that portion of Subordinated Debt not due within 1 year
of that  date.  For  purposes  of  calculating  a Person's  Tangible  Net Worth,
advances or loans to shareholders,  directors, officers, employees or Affiliates
investments in Affiliates, assets pledged to secure any liabilities not included
in the Debt of the Person,  intangible assets,  those other assets that would be
deemed  by HUD  to be  non-acceptable  in  calculating  adjusted  net  worth  in
accordance  with  its   requirements  in  effect  as  of  that  date,  as  those
requirements  appear  "Consolidated Audit Guide for Audits of HUD Programs," and
other assets Lender deems unacceptable, in its sole discretion, must be excluded
from a Person's total assets.

"Third Party  Originated  Loan" means a Mortgage Loan originated and funded by a
third party  (other than with funds  provided by Borrower at closing to purchase
the Mortgage Loan) and subsequently purchased by Borrower.

"Trust  Receipt"  means a trust  receipt in a form  approved  by and under which
Lender may  deliver any  document  relating to the  Collateral  to Borrower  for
correction or completion.

"Unused Portion" has the meaning set forth in Section 3.4.

"Used Portion" has the meaning set forth in Section 3.4.

<PAGE>

"Warehousing  Advance"  means a  disbursement  by Lender  under the  Warehousing
Commitment.

"Warehousing Advance Request" has the meaning set forth in Section 2.1.

"Warehousing Collateral Value" means, as of any date of determination,  (a) with
respect to any Eligible  Loan,  the lesser of (1) the amount of any  Warehousing
Advance made, or that could be made,  against such Eligible Loan under Exhibit H
or (2) an amount equal to the Advance Rate for the  applicable  type of Eligible
Loan  multiplied by the Fair Market Value of such Eligible Loan; (b) if Eligible
Loans have been exchanged for Agency Securities, the lesser of (1) the amount of
any  Warehousing  Advances  outstanding  against the Eligible  Loans backing the
Agency Securities or (2) the Fair Market Value of the Agency Securities; and (c)
with respect to cash, the amount of the cash.

"Warehousing  Commitment"  means the  obligation  of Lender to make  Warehousing
Advances to Borrower under Section 1.1.

"Warehousing Commitment Amount" means $40,000,000.

"Warehousing Fee" has the meaning set forth in Section 3.7.

"Warehousing Maturity Date" has the meaning set forth in Section 1.2.

"Warehousing Note" has the meaning set forth in Section 1.3.

"Wire  Disbursement  Account" means a demand deposit  account  maintained at the
Funding Bank in Lender's name for clearing wire transfers  requested by Borrower
to fund Warehousing Advances.

"Wire Fee" has the meaning set forth in Section 3.7.

12.2. Other Definitional Provisions; Terms of Construction

12.2 (a)  Accounting  terms not  otherwise  defined in this  Agreement  have the
          meanings given to those terms under GAAP.

12.2 (b)  Defined  terms  may be  used in the  singular  or the  plural,  as the
          context requires.

12.2 (c)  All  references  to time  of day  mean  the  then  applicable  time in
          Chicago, Illinois, unless otherwise expressly provided.

12.2 (d)  References to Sections, Exhibits, Schedules and like references are to
          Sections,  Exhibits,  Schedules and the like of this Agreement  unless
          otherwise expressly provided.

12.2 (e)  The words  "include,"  "includes"  and  "including"  are  deemed to be
          followed by the phrase "without limitation."

12.2  (f) Unless the context in which it is used otherwise clearly requires,
          the word "or" has the  inclusive  meaning  represented  by the  phrase
          "and/or."

12.2 (g)  All  incorporations  by reference of provisions from other  agreements
          are  incorporated as if such provisions were fully set forth into this
          Agreement,   and  include  all  necessary   definitions   and  related
          provisions  from those other  agreements.  All  provisions  from other
          agreements  incorporated  into this Agreement by reference survive any
          termination  of  those  other  agreements  until  the  Obligations  of
          Borrower under this Agreement and the Warehousing Note are irrevocably
          paid in full and the Warehousing Commitment is terminated.

<PAGE>

12.2 (h)  All  references to the Uniform  Commercial  Code shall be deemed to be
          references  to the  Uniform  Commercial  Code in effect on the date of
          this Agreement in the applicable jurisdiction.

12.2 (i)  Unless the context in which it is used otherwise clearly requires, all
          references  to days,  weeks and months mean calendar  days,  weeks and
          months.

                                End of Article 12

<PAGE>

IN WITNESS  WHEREOF,  the parties have caused this Agreement to be duly executed
as of the date first above written.

                                      MATRIX CAPITAL MARKETS, INC.,
                                      a Colorado corporation

                                      By:
                                         ---------------------------------------

                                      Its:
                                          --------------------------------------

                                      RESIDENTIAL FUNDING CORPORATION,
                                      a Delaware Corporation

                                      By:
                                         ---------------------------------------

                                      Its: Director

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